Power Plant Projects

The Michigan Public Service Commission has authorized Upper Michigan Energy Resources Corporation (UMERC) to build two new electric generating facilities at a total cost of $277.2 million.

The commission found that the two reciprocating internal combustion engine (RICE) units are the most reasonable and prudent means of meeting the utility’s power needs. On a combined basis, the project is expected to provide a total of 183 megawatts of power. In the same order, the commission also approved a special contract between the utility and Tilden Mining under which 50% of the capital cost of the RICE generators will be allocated to the mine along with all the fixed and variable operations and maintenance expenses for the energy used for meeting Tilden’s daily power needs.

According to UMERC, the two plants will be fueled by natural gas from Northern Natural Gas Company’s interstate pipeline. However, the commission also approved requests by another entity, SEMCO Energy Company, to build two gas pipelines to serve the UMERC units as well. (Case No. U-18224)