Consumers Energy delays plans for coal-fired plant

Consumers Energy puts plans for coal-fired power plant in Michigan on hold

JACKSON, Mich. (AP) -- The utility Consumers Energy said Thursday that its plans for a new coal-fired power plant in Michigan have been put on hold.

The 830-megawatt plant, to be built about 90 miles northwest of Detroit, had been scheduled to begin operations in 2017.

The company said it is deferring development of the plant because of reduced customer demand for electricity due to the recession, forecasts of lower natural gas prices and projected surplus generating capacity in the Midwest.

More electricity is being generated with natural gas since prices have tumbled. Gas supplies are abundant and it burns cleaner than gas, emitting about half the carbon dioxide as coal.

The company will continue to monitor demand, fuel and power prices and other market conditions, but it has set no timetable for a future decision on the plant.

Environmental groups have opposed the plant.

The company has said the plant would use technology that burns coal more cleanly than existing plants. The company had planned to retire older units.

The expected $1 billion investment in the plant was part of the approximately $7 billion the company planned to spend on its electric and gas utility operations over the next five years. The company said it has alternative investment options, including additional environmental controls on some of its existing coal-fired plants.

The company announced plans for the plant at Karn/Weadock Generating Complex near Bay City, Mich., in 2007.

Consumers Energy's parent, CMS Energy, also owns and operates independent power generation businesses.

CMS shares rose 16 cents to $14.67 in morning trading Thursday.