LANSING, MI (WHTC-AM/FM) – The cost for Consumers Energy to buy out its Palisades Power Contract has been sliced.
The Michigan Public Service Commission on Friday approved a 142.1 million-dollar securitization plan proposed by the Jackson-based utility for closing on the deal with plant operator Entergy. That total is 42.5 million dollars less than what Consumers had sought when it applied for financing with the MPSC in February.
The agreement was to run through April of 2022, but Entergy wants to shutter the facility near Covert by next October, due in part to energy market factors that have made power through natural gas far more economical for utilities than through atomic-fueled sources. This MPSC decision has no bearing on that closing or any long-term oversight.
In a related matter, the Michigan Agency for Energy issued a statement on Friday saying that it would work with local officials to prepare for the multi-faceted impact of the pending closure of the Palisades plant on northwest Van Buren County.
More information on the MPSC decision is here; the Michigan Agency for Energy’s website is linked here.
