JACKSON, Mich. (AP) — Consumers Energy said Friday it canceled a proposed coal-fired power plant project in Michigan and expects to shutter seven smaller coal units by 2015.
Consumers had delayed the proposed plant near Bay City in May 2010.
It cited the same factors in canceling the project — lower demand for electricity due to the weak recovery, a glut of power-generating capacity in the Midwest, and lower natural gas prices that make competing gas-fired plants cheaper to operate.
The company, a unit of CMS Energy Corp., said it would invest $1.6 billion to reduce emissions at five other plants. The investments and the expected closures of seven smaller plants will reduce Consumers' power plant emissions by 90 percent, it said.
The company said it won't invest in environmental equipment at the smaller plants, at which it expects to suspend operations by 2015. Consumers said, however, that it could change plans depending on market conditions and federal and state environmental regulations. The units scheduled for closure are near Luna Pier, Muskegon and Bay City.
The company has begun construction at its first wind-energy facility, expected to begin generating power in late 2012 in Mason County, and is developing a larger wind project in Tuscola County.
CMS shares fell 33 cents to close at $20.79.