(COLDWATER) - Electric customers in Coldwater and several other south-central Michigan communities are being hit with new charges after a federal order forced a coal-fired power plant to remain open beyond its planned shutdown.
According to The Coldwater Daily Reporter, the Coldwater Board of Public Utilities (CBPU) must help cover operating losses at Consumers Energy's Campbell coal plant near Holland after the U.S. Department of Energy required the facility to continue running for grid reliability.
The plant had been scheduled to close in 2025 as part of the utility's transition away from coal.
Local officials say the mandate has already added about $45,000 to Coldwater's power costs, with total additional charges potentially reaching nearly $200,000 by mid-year. A notice from American Municipal Power, which manages the Michigan South Central Power Agency serving Coldwater, Clinton, Hillsdale and Marshall, reported another $76,000 surcharge tied to the plant's losses.
Consumers Energy reported losing roughly $42 million during the first quarter of extended operations. Because the order cited reliability concerns, federal regulators directed that those losses be recovered from regional customers served by the Midcontinent Independent System Operator (MISO), which spans parts of 11 states and one Canadian province.
CBPU uses about 60% of the electricity delivered through the regional agency, meaning local ratepayers will bear a significant share of the added costs.
Coldwater BPU Director Paul Jakubczak has called for a full audit to ensure the charges reflect only legitimate operating expenses. Meanwhile, Michigan's Attorney General is challenging the federal action, arguing it unfairly shifts an estimated $135 million in extra costs onto state consumers.
American Municipal Power warned member utilities to expect continued billing for additional losses through at least May, when the federal order is scheduled to expire -- though it could be extended.
Environmental groups note the Campbell facility is one of Michigan's last coal plants and among its largest polluters. Operating the plant's three generating units reportedly costs about $615,000 per day.
Consumers Energy has indicated it still plans to close the facility once federal requirements allow.