Wyoming coal customer Consumers Energy will phase out electricity production from coal by 2040 to slash emissions of heat-trapping gases that cause global warming, the Michigan utility’s president and CEO told The Associated Press.
Consumers plans to generate 40 percent of its power from renewable sources such as wind and solar energy by then, Patti Poppe said in an interview ahead of a public announcement Monday. She said the utility will also will rely on natural gas, hydropower and improved efficiency to meet customer needs.
The utility’s largest coal-fired station, J.H. Campbell bought all of its coal in 2016 from the Black Thunder, North Antelope Rochelle and Antelope mines in Wyoming. The surface coal mines are owned by Arch Coal, Peabody Energy and Cloud Peak Energy, respectively, the state’s largest coal producers.
Consumers Energy and DTE Energy Co., which supply most of Michigan’s electricity, are among many U.S. providers moving away from coal even as President Donald Trump’s administration boosts fossil fuels and seeks to unravel former President Barack Obama’s policies that promoted cleaner power.
DTE, which announced its plans to retire coal-fired power by 2040, runs the state’s largest coal consumer, the Monroe Power Plant. Monroe also recently bought the bulk of its coal from Wyoming’s Black Thunder, North Antelope and Antelope.
“We believe that climate change is real and we can do our part by reducing our greenhouse gas emissions, and we also believe it doesn’t have to cost more to do it,” Poppe said. “We believe we’re going to be on the right side of history on this issue.”
Coal is becoming less competitive as the cost of producing renewable energy steadily falls, she added.
That weakness has put pressure on Wyoming’s coal sector, home to the country’s largest coal mines. About 40 percent of the coal burned for electricity in the U.S. is dug from the ground by Wyoming miners.
Three coal-fired plants in Texas announced early retirement last year. Two were among the largest customers of Peabody’s Rawhide mine in Wyoming.
Officials for coal firms like Peabody have said in earlier interviews with the Star-Tribune that the reduction in coal demand is accounted for in their long-term plan. Some argue that the reduction in coal plants could increase coal use at remaining plants helping to offset some of the reduction in business.
Power companies are under increasing pressure to reduce emissions of carbon dioxide, which are trapping heat in the atmosphere and promoting what scientists describe as a dangerously warming climate that will endanger human health and natural systems.
A 2016 state law set a renewables target for Michigan utilities of 15 percent by 2021. Environmentalists are circulating petitions for a statewide ballot initiative that would require 30 percent by 2030, which Consumers Energy and DTE have criticized as unnecessary.
Poppe told the AP that Consumers Energy will file a plan by June with the Michigan Public Service Commission with a detailed timetable for phasing out coal and supplying its customers with power from a mix of renewable and traditional sources. Commission approval will be needed before the utility can proceed.
The utility closed seven of its 12 coal-fired plants in 2016, which the company said had lowered its carbon generation by 38 percent from 2008 levels. Its long-term strategy will yield an 80 percent reduction in carbon emissions, Poppe said.
Rapidly developing technology and falling prices are making green energy more cost-effective than it was even a decade ago, when many in the industry warned that mandating use of renewables would drive up rates. Particularly helpful are improvements of systems for storing renewable energy for use when the wind isn’t blowing or skies are cloudy, Poppe said.
“We don’t have to make a sucker’s choice of either affordable prices or clean energy,” she said. “We can do what’s right for the planet and the customers we serve. We don’t think there’s a trade-off to be made here.”
Consumers Energy owns two wind turbine farms and buys power from a third. It co-owns with DTE a hydroelectric plant on Lake Michigan. The utility says it is upgrading its natural gas infrastructure around the state.
Along with its renewable energy plan, Consumers Energy also announced a five-year plan for reducing its environmental footprint that includes saving 1 billion gallons of water, reducing waste sent to landfills by 35 percent and restoring or improving 5,000 acres of land.
The utility says its customers include 6.7 million of Michigan’s 10 million residents.