Consumers Energy

History

The company was founded in 1886 as Jackson Electric Light Works by William A. Foote, Samuel Jarvis, of Lansing, and his brother James B. Foote, who was originally tasked to install electric lighting in downtown Jackson. After a series of acquisitions and mergers involving other local electric, gas, and trolley companies which were properties of W.A. Foote, as well as Anton G. Hodenpyl and Henry. D. Walbridge, the company incorporated as Consumers Power Company in 1910 in Maine. It became part of the utility holding conglomerate Commonwealth & Southern Corporation, which held utilities in 10 other states. His wife later founded Foote Hospital, now Henry Ford Allegiance Health, also in Jackson, Michigan.

Commonwealth and Southern dissolved in 1946, leaving Consumers Power (and all other utility holdings) an independent company. After serving Michigan for more than 80 years, the company reincorporated in Michigan in 1968 and maintained its headquarters in Jackson, Michigan. Consumers operated the Big Rock Point Nuclear Power Plant in Charlevoix from 1962 to 1997 and built the Palisades Nuclear Plant near South Haven in 1971, which was sold to Entergy.

In 1968, Consumers Power began construction of a nuclear power plant in Midland, Michigan, primarily for the Dow Chemical Company. However, construction issues caused delays and increased costs. The Three Mile Island accident in 1979 resulted in a massive change in nuclear regulatory requirements and system redesign. When it was revealed the containment buildings were settling and foundation cracks were discovered, Dow cancelled its contract with Consumers Power, and the project was abandoned in 1984. The $4.1 billion investment nearly bankrupted Consumers Power. However, in 1985, Consumers Power formed a partnership with eight other companies to convert Midland's abandoned nuclear plant into a natural gas-fired power plant. Transformation of the plant began in 1986 and was completed at a cost of $500 million. The Midland Cogeneration Venture began producing power in 1991 and that success restored faith in Consumers Power.

In 1997, the name of the company was changed to Consumers Energy. In 2011, Consumers Energy received approval to establish a 100-megawatt wind energy facility in Michigan's Mason County called Lake Winds Energy Park. In 2014, the company announced their second wind farm in Tuscola County with a total investment of $250 million, and named it Cross Winds Energy Park. By 2015, Consumers Energy produced ten percent of its electricity from renewable sources.

In 2009, Consumers Energy launched comprehensive electric and natural gas energy efficiency programs that included rebates and incentives for homes and businesses. Consumers Energy's trademark slogan is "Count on Us", and it is the primary subsidiary of CMS Energy.

In 2018, Consumers Energy announced plans to retire all coal-burning plants by 2040 and expects to have 40% renewable power by then. In 2018, Consumers Energy became the title sponsor of the August Monster Energy NASCAR Cup Series race at Michigan International Speedway.

In December 2020, Garrick J. Rochow assumed the role of President & CEO of CMS and Consumers Energy after a 17-year tenure at the company.

System information

Main article: ITC Transmission

Because of utility regulatory changes, Consumers divested its transmission system. It opted instead to sell the system to the Michigan Electric Transmission Company (METC), currently an ITC Holdings company (which also owns Detroit Edison's transmission system under the "ITCTransmission" brand.) Consumers Energy's primary distribution voltages are 2.77/4.8Y, 4.8/8.32Y, 7.2/12.47Y, 7.97/13.8Y and 14.4/24.9Y. Consumers retained its looped 23kV and 46kV high voltage sub-transmission (HVD) systems and its radial 138 kV lines as well.

Generating portfolio

Consumers Energy's utility-owned generation portfolio consists of a hydroelectric system, including part ownership of Ludington Pumped Storage, wind farms, nuclear power plant, and coal-fired plants and natural gas peakers.

Hydroelectric

Consumers Energy owns 13 hydroelectric facilities or dams along five rivers in Michigan. Built between 1906 and 1935, the hydros have a combined generating capacity of about 130 megawatts, enough to serve about 70,000 people. Near the hydros are campgrounds, boat launches and nature trails that are popular spots for canoeing, fishing and bird watching. The facilities are located on the Au Sable River (Mio Hydro, Alcona Hydro, Loud Hydro, Five Channels Hydro, Cooke Hydro, Foote Hydro), Grand River (Webber Hydro), Kalamazoo River (Allegan Hydro), Manistee River (Hodenpyl Hydro, Tippy Hydro) and Muskegon River (Rogers Hydro, Hardy Hydro, Croton Hydro). Operating since 1907, the Webber Hydro on the Grand River is the company's oldest operating hydroelectric facility. The Croton Hydro on the Muskegon River was listed in the National Register of Historic Places on August 16, 1979.

Following is a complete, sortable list of Consumers Energy's hydroelectric generating facilities:

Pumped Storage

Consumers Energy also operates and co-owns (with DTE Energy) the Ludington Pumped Storage Power Plant near Ludington. Built between 1969 and 1973, the plant sits on a 1,000-acre site along the Lake Michigan shoreline. It includes an 842-acre reservoir that can store up to 27 billion gallons of water — the equivalent of 2 million backyard swimming pools.

Nuclear

Consumers Energy operated the Big Rock Point Nuclear Power Plant near Charlevoix, Michigan. The plant operated for 35 years, until 1997 when it closed. It was Michigan's first nuclear power plant and the United States' fifth nuclear plant, capable of producing 67 megawatts of electricity. Palisades Nuclear Generating Station (five miles south of South Haven) was previously owned by Consumers Energy and was shut down in May 2022.

Fossil fuels

Coal

Consumers Energy's largest power plant is the coal-powered J.H. Campbell power plant between Holland and Grand Haven. The other remaining coal-fired plant was the D.E. Karn generating station located on Saginaw Bay near Bay City. In 2024 it closed Karn coal fired units 1 and 2 leaving only Karn 3 and 4 to continue operating on natural gas and fuel oil. The Cobb power plant in Muskegon; the Whiting power plant on Lake Erie in Luna Pier, just north of the Michigan-Ohio state line and the J.C. Weadock Generating Plant were all coal plants that ceased operating in 2016. Consumers Energy originally planned to close its remaining coal plants by 2040 but the plan was sped up to close all plants by 2025.

Natural gas

The Midland Cogeneration Venture in Midland was formerly owned by Consumer Power and still supplies power to them. Additional natural gas units are planned to replace the retiring coal plants.

In 2014 Consumers Energy started the process of purchasing the DPC Juniper power plant located in Jackson, MI. The sale was completed in 2016. The plant was renamed to Jackson Generation Station and has the capacity of 540 megawatts.

Recently in June 2023, Consumers Energy completed the purchase of the Covert Generation Station located in Van Buren County. This plant has a 1,176 megawatt capacity.

Consumers Energy also uses natural gas and oil peaking units. These include the Zeeland Generating Station, Karn 3&4 Generating Station, and combustion turbine stations.

Natural gas distribution and storage

Consumers Energy is a natural gas distributor in Michigan. Its annual quantity of 373 billion cubic feet is distributed to its residential and business customers. The company purchases all natural gas that it provides its customers. It serves more than 1.7 million customers through over 27,000 mi of transmission and distribution pipelines. In 2013, it was fined $1.4 million for its role in two gas explosions that killed three people.

Electric vehicles

In early 2018, General Motors (GM) and Consumers announced that they formed a partnership to develop "smart charging" technology for owners of electric vehicles. Consumers Energy plans to buy or lease over 100 electric vehicles from GM. The two companies will test new electric vehicle charging technology. The technology will let vehicle owners plug in their car to be charged, but it will delay the actual charging until nighttime during off-peak energy hours. Additionally, Consumers will invest $7.5 million "to encourage the development of EV charging stations across Michigan."

Philanthropy

Annually, Consumers Energy awards about $10 million to Michigan nonprofit organizations through grants, employee and retiree contributions and, corporate giving. It has helped to raise over $1.8 million towards United Way's Michigan campaign initiatives, created fund-raising campaigns at their facilities and participated in employee-volunteer events. Consumers Energy has also worked on early childhood development and education in Michigan and has also received Wildlife Habitat Council (WHC) compliant certificates for its efforts to promote environmental education.

In 2013, Consumers Energy was given the William Booth Award by The Salvation Army in recognition of its long history of philanthropic activities and leadership for the PeopleCare assistance program. Since the beginning of PeopleCare program, it has contributed $27 million in energy bill credits.

Political activities

Consumers Energy executives are closely connected to corporate advocacy groups and government positions in Michigan. President and CEO Garrick Rochow sits on the board of directors of the American Gas Association and the Edison Electric Institute, as well as other state-level business organizations. Brandon Hofmeister, Senior Vice President of Sustainability and External Affairs, previously served as energy and climate policy advisor to then-governor Jennifer Granholm and currently sits on Governor Gretchen Whitmer’s Council on Climate Solutions. He is also president of Consumers’ charitable arm.

Hofmeister also sits on the board of directors of Citizens for Energizing Michigan’s Economy (CEME), a dark money organization that has operated in Michigan since 2013, running ads opposing renewables and supporting utility-friendly politicians. Consumers gave $43.5 million to CEME between 2014 and 2017. In 2018, the Michigan Public Service Commission ordered Consumers to cease donations to CEME for two years due to its activities.

In 2023, 113 of 148 state legislators in Michigan had accepted campaign contributions from Consumers or its employees. Aric Nesbitt, chair of the House Energy Committee from 2013 to 2016, and Joe Bellino, chair of the House Energy Committee from 2019 to 2023, received the two largest direct campaign contributions from Consumers among the legislators.

Footnotes

References

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2. (December 23, 2015). "Consumers Energy prepares for blustery conditions". [[WZZM]] News.
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13. Lascari, Tony. (January 15, 2011). "Former Midlander, 'Pioneer for the Environment', dies at 92". Midland Daily News.
14. (1 July 2001). "Consumers Energy promotes four employees". Consumers Energy.
15. The current Consumers Energy is renamed from Consumers Power Company incorporated in Michigan in 1968. The 1968 Consumers Power is the successor to a previous company incorporated in Maine in 1910 with the name Consumers Power Company. The 1910 Consumers Power, in turn, was the successor to W. A. Foote's Commonwealth Power Company established in 1886.
16. (2 November 1998). "CMS Energy buying Duke Energy units".
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19. (15 January 2016). "Report measures impact of renewable portfolio standard". Crain's Detroit Business.
20. (30 October 2009). "Customer Use of Consumers Energy's Online Billing Sees Steady Growth in First Decade; Significant Green Benefits".
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24. (8 March 2009). "Consumers Energy Moving Forward on Renewable Energy and Energy Optimization; Customers to See More Green Power and Energy-Saving Incentives; Files Plans With MPSC". Consumers Energy.
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34. WSBT 22. (2021-06-28). "Consumer Energy plans to phase out coal power by 2025. Consumers has a goal of 90 percent renewable sources by 2040.".
35. (8 May 2000). "Consumers Seeks License Extension". Consumers Energy.
36. "Consumers Energy plans to buy Jackson power plant for $155 million, puts Genesee County plant on back-burner".
37. "Consumers Energy buys Southwest Michigan natural gas power plant for $815M".
38. (7 June 2001). "Dynegy to Build Michigan Power Plant". [[American City Business Journals.
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40. (14 May 2015). "Consumers Energy investing $165M for reliability". [[The Detroit News]].
41. Goldberg, Keith. (13 August 2013). "Consumers Energy To Pay $1.4M Over Deadly Mich. Gas Blasts". [[Law360]].
42. (26 September 2018). "Consumers Energy, GM make additional moves to develop electric vehicles, charging stations". Crain's Detroit Business.
43. Gautz, Chris. (7 September 2008). "Consumers Energy training for future at Marshall facility". Jackson Citizen Patriot.
44. (1 September 2016). "Consumers Energy Awards First Scholarships Honoring Fallen Employee". Consumers Energy.
45. (11 November 2016). "Consumers Energy's Hunting Policy Protects Safety of Workers, Neighbors". Consumers Energy.
46. (19 March 2015). "MSU engineering celebrates collaboration with Consumers Energy". MSU Today.
47. (9 February 2010). "Consumers Energy Partners with College's Residential Program".
48. (7 April 2015). "Can't Pay The Winter Heating Bill? There's Help Available". [[WWJ-TV.
49. Mills, Chris. (12 March 2015). "Recognizing award nominees". [[WOOD-TV.
50. (28 July 2015). "Consumers Energy Pipeline Inspections Part of Robust Program Designed to Enhance Safety and Reliability". Consumers Energy.
51. Belknap, Elissa. (27 February 2015). "Consumers Energy partnering with The Salvation Army for heating help". WOOD News.
52. (March 13, 2024). "Consumers Energy: Don't Count on Us". University of Michigan, Ford School of Public Policy; Science, Technology, and Public Policy Report Series.
53. "Citizens for Energizing Michigan's Economy".