Electric Rates Reduced by $38 Million as Consumers Energy Retires Classic Seven Coal Plants
OREANDA-NEWS. Electric rates for Consumers Energy's 1.8 million customers will drop by $38 million with today's retirement of the utility's Classic Seven oldest coal plants.
"While we honor the 60 years of service by the Classic Seven, Michigan will now become a little greener with improvements in air quality and reduced water usage. In addition, Consumers Energy residential and business customers can expect more green in their wallets," said David Mengebier, the company's senior vice president of governmental and regulatory affairs.
Mengebier noted that the typical residential customer for Consumers Energy pays a total bill that's about 15 percent below the U.S. average. The removal of $38 million due to the Classic Seven retirements drops an average residential bill by 1 percent, or nearly $8 per year.
"Providing customers with affordable energy costs is one of our key principles. That's helping Michigan companies create jobs, expand their operations and open new facilities here," said Mengebier. "It's also vitally important that as we close coal plants, we ensure future electric reliability for Michigan and our customers. That's why it's critical that the Michigan legislature act to update our energy law and ensure that we have reliable, affordable and sustainable power supply going forward."
Consumers Energy, Michigan's largest utility, is the principal subsidiary of CMS Energy (NYSE: CMS), providing natural gas and electricity to 6.7 million of the state's 10 million residents in all 68 Lower Peninsula counties.