JACKSON, Mich., Dec. 21 /PRNewswire-FirstCall/ -- Consumers Energy has
closed on the purchase of a 946 megawatt natural gas-fired power plant to
help meet the growing power needs of its customers.
The utility purchased the Zeeland, Mich., plant from LS Power Group for
about $517 million. Today's close came after the Michigan Public Service
Commission approved the acquisition on Tuesday.
Consumers Energy's president and chief operating officer, John Russell,
said the power plant purchase is a key part of the utility's Balanced
Energy Initiative, a comprehensive, 20-year plan to meet the needs of its
1.8 million electric customers.
"The typical residential customer is using 8 percent more electricity
than a decade ago and customer peak demand hit record levels four months
this year. We need to meet that growing customer demand for power with a
balanced energy strategy," Russell said.
"Buying this Zeeland plant will help us meet the needs of our customers
in a cost effective way. It is part of our plan to invest $6 billion in
Michigan's energy resources and infrastructure over the next five years,
primarily to implement the Balanced Energy Initiative and its aggressive
targets for energy efficiency, demand management, and renewable energy."
Russell pointed out that the utility's rates today rank below the
national average and it can make significant investments -- creating jobs
and boosting the state's economy -- and still keep its electric rates
affordable.
The purchase of the Zeeland plant will help Consumers Energy meet the
intermediate and peak demand needs of its customers, but Michigan still
needs to build new baseload generating plants -- the workhorses of electric
supply - - to serve rising customer demand in 2015 and beyond, Russell
said, adding the state's electric deregulation law must be repealed or
significantly reformed for those plants to be built.
A package of legislation to update the state's energy policy was
introduced earlier this month in the Michigan House of Representatives.
"State lawmakers are facing a very clear choice," Russell said. "They
can act to clear the way for new plants to be built. If they act, Consumers
Energy will be able to make significant investments in Michigan, create
jobs, and be able to provide power to our customers at competitive prices
for the long run. If they don't act, our customers will be exposed to
higher and more volatile prices."
Russell added that the state's 21st Century Energy Plan, released
earlier this year, projected that Michigan customers would pay $2 billion
more for electricity if new baseload plants aren't built in the state.
J.P. Morgan Securities Inc. served as Consumers Energy's financial
adviser for the Zeeland plant transaction.
Consumers Energy, the principal subsidiary of CMS Energy (NYSE: CMS),
provides natural gas and electricity to nearly 6.5 million of Michigan's 10
million residents in all 68 Lower Peninsula counties.
LS Power Group was founded in 1990 and is a fully integrated
investment, development and asset management group of companies focused on
the power industry.
For more information about Consumers Energy, visit our Website at
http://www.consumersenergy.com
SOURCE Consumers Energy
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Related links:
http://www.consumersenergy.com
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CONTACT:
Media, Jeff Holyfield, +1-517-788-2394; or
Dan Bishop, +1-517-788-2395, both of Consumers Energy; or
Investment Analyst, CMS Energy Investor Relations,
+1-517-788-2590, for Consumers Energy
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