Monday, May 20, 2013

PSCW approves PIPP-Wolverine joint venture

The Public Service Commission of Wisconsin (PSCW) on May 16 unanimously approved our asset transfer application for joint ownership of Presque Isle Power Plant (PIPP) with Wolverine Power Cooperative and the addition of state-of-the-art emission controls at the facility. The PSCW action, in addition to previous approval from the Michigan Public Service Commission (MPSC) and Federal Energy Regulatory Commission, are significant steps forward in the process.

Still pending is an air permit from the Michigan Department of Environmental Quality. Other local permits also need to be secured prior to construction of the emission controls, which is expected to begin in early 2014. Project completion is targeted for 2016.

The ownership agreement provides that Wolverine will invest approximately $130 million to $140 million to retrofit the facility’s units with air quality control additions to meet expected environmental regulations. In exchange, Wolverine will receive a minority interest in the plant.

Our company and employees will continue to operate the plant as well as the new air quality control system. The project will enable the continued reliable operation of the power plant, while supporting the regional economy by creating construction jobs and protecting the local tax base.

Located in Marquette, Mich., along the shore of Lake Superior, PIPP consists of five coal-fueled units capable of generating approximately 344 megawatts. The units were built between 1974 and 1979.

Wolverine is a generation and transmission cooperative headquartered in Cadillac, Mich. It supplies power to five distribution electric cooperatives and two alternative electric suppliers in the Lower Peninsula.

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