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Fate of UP electrical costs hang on Prestin, Bohnak bills

Upper Michigan's Source · last updated

UPPER MICHIGAN (WLUC) — Two bills are looking to save Yoopers and U.P. industry from ballooning electrical costs.

That legislation will be voted on by the House Energy Committee on Tuesday.

In 2019, natural gas RICE generators were installed in the U.P., replacing coal power plants. But 2023 clean energy legislation would require these generators be phased out to meet the 100% renewable energy goal by 2040.

Representatives Dave Prestin and Karl Bohnak have introduced two bills that would allow for the continued use of natural gas.

Representative Prestin says the proposed switch to renewables would put a strain on the U.P.

“The consequences of that $3.1 billion worth of renewable buildout will hit Yoopers only,” said Prestin. “People of the U.P. will be the only rate payers paying for that because of the legislation passed by Michigan. Well, we’re not even done paying for the RICE generators yet. Those just went online in 2019.”

Experts estimate energy prices for U.P. Residents, without Prestin and Bohnak’s legislation, would increase by $87 a month at their peak. For Cleveland Cliffs, Tilden mine would be charged an additional $15 million a month in 2040.

InvestUP CEO Marty Fittante says the mine would no longer be economically feasible.

“Hearing those numbers, you can understand and appreciate why some accommodation has to be made for recognizing the leadership that we had in 2019 in transitioning from coal to natural gas,” said Fittante.

Fittante says exceptions similar to what this bill is asking for have been granted elsewhere in the state.

“There were a couple exceptions given when this legislation passed in 2023 in different parts of the Lower Peninsula,” said Fittante. “So, what we’re asking for is fair treatment that recognizes our leadership in energy back in 2019.”

If the bills pass committee, they must then pass both the House and Senate before making their way to Governor Whitmer’s desk.

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