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Time for Gov. Granholm to Go! Power Plant Obstruction is Latest Outrage

Labor, Business/Industry Groups Fighting Political, Bureaucratic Barriers

October 11, 2009       1 Comments
By: Dave Rogers

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Granholm supports the obstruction of power plant projects in Bay City and Rogers City
 

It's time for Gov. Jennifer Granholm to move on down the road and let Michigan get going on jobs.

The latest outrage is the obstruction of power plant projects in Bay City and Rogers City by the Michigan Public Service Commission, with the governor's support.

The MPSC recently said the construction of two power plants in Michigan representing billions of dollars in work is unnecessary.

We all are well aware that vehicles of the future will depend on electrical power to recharge batteries and that trend alone will take noxious internal combustion fumes from the air. Fewer smoke-spewing cars will equal cleaner air. The scientific world has issued reports showing that vehicles cause vastly more pollution than do coal-burning power plants. Scientists surely can project the effects of that trend and that information should be part of the deliberative process about power plants.

And the crucial issue of the need to replace the aging fleet of power plants, averaging 50 years old, with newer, cleaner plants, apparently has not been seriously considered by state officials. Their stance is a ridiculous one -- close the old plants first.

Granholm's thrust was outlined in a speech removing her support for construction of coal-fired plants in Michigan, in favor of environmentally friendly alternatives.

"We're outraged," said Michigan Building and Construction Trades Council Secretary Treasurer Patrick Devlin. "Given the economy of this state, it's beyond me how anyone who wants to move Michigan's economy forward and create good-paying jobs could possibly shoot down billions of dollars in construction work."

Devlin added: "The utilities say we need these plants. They're ready to fund them. We have people ready to build them tomorrow, if needed. And now this. It's an infuriating decision."

Devlin is not alone in that opinion. The Michigan Chamber of Commerce and a coalition of business and industry support that viewpoint. Check out the website www.michiganjobsandenergy.org.

Here we are in the worst depression since the 1930s, with Michigan starved for jobs, and the governor is more concerned about abstract environmental issues that will do nothing to improve today's economy.

Our opinion, as stated repeatedly in this column is: what is greener than jobs that support families? What purpose is served by impoverishing the population? With that approach we may eventually have somewhat cleaner air but no one around to enjoy it.

Besides, China and India are not slowing their rate of power plant construction and we all share the same air.

Unilateral economic demobilization on the part of Michigan will provide little long term improvement in the world's air quality. But unilateral industrial demobilization will destroy the fabric of Michigan society, a degradation already well underway.

To claim that additional power will not be needed in the future is the Luddite attitude. Remember the textile workers in 19th century England who opposed mechanical looms out of fear it would cost jobs in hand labor?

Construction trades and business groups have formed the Michigan Jobs and Energy Coalition. These strange bedfellows, in our opinion, are the voice of reason. They feel the power plants are Michigan's own long-term stimulus program, representing at least $3 billion in construction activity. The construction or modification of other smaller coal-fired plants also in the works could beef up the economic impact to total in excess of $6 billion.

Building trades spokesmen charge that environmental groups concerned with the plants' use of coal as fuel have apparently won the argument with Gov. Jennifer Granholm and state regulators.

Consumers Energy officials say there still remains a path for constructing a new plant. But with opposition from the governor and a major policy-making body stuck in the Luddite mode, the voices of reason are facing tough sledding.

Consumers Energy has applied to build a $2 billion, 830-megawatt coal-burning unit at its Karn Weadock facility near Bay City. The MPSC report said concerning that application: "Consumers Energy's long-term capacity need is unjustified without the explicit retirement of existing capacity in its base load generation fleet."

What came first, the chicken or the egg? Does the PSC really expect that utilities will take existing plants out of service, reducing the power availability, and then hope to get a permit to build a new plant? That on the face of it is a ludicrous argument.

Regarding Wolverine Power Cooperative's application for a proposed $1.2 billion coal-fired plant near Rogers City, the MPSC report said: "Wolverine failed to demonstrate the need for the proposed facility to meet its projected capacity."

Building trades union leaders met with Granholm after a portion of her state-of-the-state message on Feb. 3 took the building trades and the state's utilities by surprise.

"So here's our next aggressive goal," Granholm said. "By the year 2020, Michigan will reduce our reliance on fossil fuels for generating electricity by 45 percent. We will do it through increased renewable energy, gains in energy efficiency and other new technologies. You heard me right: a 45 percent reduction by 2020."

The labor group observed Granholm Administration appeared to open the door for coal-plant construction just before the Michigan Building and Construction Trades Council Legislative Conference in Lansing on April 1.

Lt. Gov. John Cherry told building trades delegates that utilities applying for new plant permit applications would only be asked to submit a "carbon reduction strategy" to the state Department of Environmental Quality, and to apply, presumably from the federal government, for pollution controlling carbon reduction technology grant money if it becomes available.

"If they (the utilities) apply for a permit, they will get a permit. It's that simple," Cherry added.

However, Cherry would not be in a position to follow up on that opinion unless Granholm steps down and he becomes governor soon. She has toyed with a Washington appointment and now would be a propitious time to engineer one from the Obama administration. Please, governor, get out of the way and let us progress. Your indecisive attitudes will fit better in Washington, anyway.

"Now with the Michigan Public Service Commission report," said Michigan Building and Construction Trades Council President Patrick "Shorty" Gleason, "the governor has flipped, flopped, and flipped again on this issue."

Consumers Energy spokesman Jeff Holyfield said while the utility was "disappointed with the conclusion of the report, and the coal critics called it a death blow, we think the report still provides a path for us to build a new clean coal plant."

Holyfield said the report isn't the final word on the matter. And he said Consumers Energy feels it can move forward toward building a plant within the language of the report. For instance, the report called for the utility to outline a retirement plan for part of its existing fleet of power plants, which average 50 years of age. "That just becomes a question of timing," Holyfield said.

He said Consumers will continue to keep up with permit requirements by various state agencies in an effort to keep the construction timeline moving forward. Because of the added state permit requirements, the timeline for the start of construction -- if shovels ever hit the dirt -- would be later than previously planned, in 2013. About 1,800 hardhats would be on the job at peak employment.

A statement by Wolverine Power said the report "ignores the facts of Wolverine's power supply situation and the realities of today's wholesale electric marketplace and is potentially devastating for Northeastern Michigan's economy."

Wolverine said the MPSC report did not identify a lower cost alternative to the Rogers City plant for generating power.

Several conclusions about this situation come to mind:

1. The political future of Lt. Gov. Cherry is on the line with this decision. Granholm, thankfully, is already term-limited. This latest obstructionist stance clouds all her accomplishments on economic issues, fighting desperately against the tide of globalization and shrinking of the U.S. automotive sector.

2. Leadership is desperately needed in Michigan, and whoever provides it will become the next governor. If Cherry doesn't stand up for working men and women, it may be Attorney General Mike Cox or another Republican or it may be independent candidate Andy Dillon, speaker of the House.

3. The Michigan Public Service Commission fails to fulfill its mission to the taxpayers by merely acting as an obstructionist body. It needs to determine what is best for the economy and the population with an advocate's approach.

4. Most of all, common sense is needed by our politicians and public policy bodies. We need the investments and jobs, now, not more bureaucratic blathering. ###

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"The BUZZ" - Read Feedback From Readers!

nsmaeder Says:       On November 19, 2009 at 10:22 AM
power is crucial, must consider the future. why would businesses locate here if we don't have enough power. Dow chemical's future depends on it.
old power plants running don't have the cleaner technology we have today.
the gov. is a obama follower, look out.
Agree? or Disagree?


Dave Rogers

Dave Rogers is a former editorial writer for the Bay City Times and a widely read,
respected journalist/writer in and around Bay City.
(Contact Dave Via Email at carraroe@aol.com)

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