Energy deal welcomed

Posted by on January 20, 2015

Amy 1 CroppedI interrupt my regularly scheduled column to talk energy.

There was no way I could submit my article this week as it was once Tuesday’s energy announcements were made.  I liken the package of agreements to a late Christmas gift to the Upper Peninsula from some outstanding companies in our community.

In a joint statement delivered by the Governor’s office, the four agreements announced would accomplish the following:

  • Upper Peninsula Power Company (UPPCO) would purchase We Energies and Integrys-owned electric businesses in Michigan including the Presque Isle Power Plant (PIPP).
  • Cliffs Natural Resources would purchase a significant majority of its power from the Presque Isle plant until the facility’s retirement in 2020.
  • A replacement natural gas-fired cogeneration power plant is planned to be built, owned and operated by Invenergy on Cliffs’ property in Marquette County.
  • Objections by Cliffs and state officials to the merger of Wisconsin Energy and the Integrys Energy Group would be removed.

This is extremely welcomed news and will allow the Upper Peninsula to continue to work collectively and strategically on long term energy solutions that will carry us far into the future.  Oh, and those pesky PIPP System Support Resource (SSR) payments we have been talking about?  While they will still be fought at the state level, under this arrangement they will be gone no later than July.

A complicated package of deals like this just doesn’t happen and it certainly doesn’t happen overnight.  There are many parties involved, with many hours of negotiations and resources expended to achieve such results.

Our region has faced many challenges in the past, but from the very beginning of this energy crisis, you knew it was different.  Something that would dramatically affect people and businesses from one end of the peninsula to the other.  Something that couldn’t be solved with a single silver bullet.  Something so complicated that it couldn’t be defined in a single sentence.

Fortunately, the Governor recognized the magnitude of what was happening and made finding solutions a priority.  A special thank you to Valerie Brader, Deputy Legal Counsel and Senior Policy Advisor to Gov. Snyder, for playing a lead role and always being willing to keep us stakeholders informed.  Same for the Attorney General’s office and Michigan Public Service Commission (MPSC) who have and continue to protect the citizens and businesses’ energy access and affordability.

On the home front, a huge thank you to Cliffs Natural Resources, a pillar in our region for 168 years, for making the decision to not only purchase power from the PIPP but to partner with Invenergy on the potential cogeneration facility.  Your continued commitment to and investment in the U.P. is appreciated.

To our new friends from Balfour Beatty Infrastructure Partners/UPPCO who have agreed to purchase the PIPP, what a way to show the community you are all in!  Your willingness to step up and help create a viable solution will not go unnoticed.  Of course, hats off as well to We Energies for coming to the table first with Wolverine Power Cooperative and now the sale.  You are leaving the region in good hands.

Of course with any project of this magnitude there are many, many people that have touched the process in one way or another.  On behalf of the Lake Superior Community Partnership, we thank all of you, sincerely, for proving once again that in the U.P., no challenge is insurmountable with creativity, collaboration and a little SISU.

Amy Clickner, CEO, writes a bi-weekly column for the Mining Journal.

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