Smart Plans Can Meet State's Power Needs

Mar 27, 2001

Smart Plans Can Meet State's Power Needs

California has experienced rolling electricity blackouts, and the two largest power companies talk of bankruptcy. Last June, Michigan's Legislature passed new laws restructuring much of our state's power industry. This begs an obvious question: Can California's power problem happen here?

The answer is no, not if we continue to prudently move toward customer choice and support new generating plants and electric transmission and distribution facilities needed to power Michigan's growing economy.

California's electric utilities cannot keep up with the public's demand for power. While Californians are increasing their use of electricity at nearly triple the national rate, no new power plants have been built in more than a decade.

By contrast, demand in Michigan is growing more slowly, about 2 percent annually, and several generating units have been brought into service. Consumers Energy rebuilt and restarted three units at our plant in Muskegon, and our holding company, CMS Energy, has added units that can generate power during times of peak demand.

Michigan's new laws removed many of the uncertainties that kept power suppliers from building new plants here. A number of new units are planned during the next several years. With their output, we could have enough electricity to exceed customer demand on peak-use days by 40 percent or more. Some already face very strong public opposition, however, so the percentage could turn out to be much smaller.

California's extraordinarily strict environmental rules have discouraged construction of new power plants and encouraged too much reliance on natural gas. Michigan's primary fuel source is coal, which is abundant, affordable and increasingly clean.

California also suffers from inadequate transmission capacity to import electricity from other states. By contrast, Michigan's law requires the state's utilities to expand transmission capacity by 2,000 megawatts by June 2002. We are working to meet that requirement. Michigan's different approach is keeping us from a California-style mess.

Resolving the long-term problem will require cooperation. You and I vote with our light switches every day for more electricity. On the other hand, many people are very quick to vote no when it comes to new generating plants and power lines near their communities.

How shall we reconcile the two votes? We need to respond by conserving electricity when demand is unusually high, like on very hot summer days. We also need to work together to develop a long- term plan to build the plants and power lines that Michigan's families and businesses will need. That way, when you turn on the light switch years from now, you won't wonder if the power will be there.

David W. Joos
President & Chief Executive Officer
Consumers Energy
Jackson