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Negaunee Township to consider power plant construction

Carlson

DerochaMARQUETTE — The Negaunee Township Board on Thursday will consider a proposal to build a new natural gas-fueled electric power plant east of the M-35 and Marquette County Road 492 intersection, near the former Eagle Mills pellet plant.

The board will host a public hearing at 6 p.m., followed by its regular meeting at 7 p.m. at the Negaunee Township Hall, located at 42 E. M-35.

Supervisor William Carlson said it’s likely the board will consider a decision on the issue that night.

The plant is a proposal from subsidiaries of WEC Energy Group, which owns We Energies and is headquartered in Milwaukee, Wisconsin.

Utility company representatives met with the Negaunee Township Board in November to discuss their plan.

“We’ve had the prior opportunity to meet with We Energies, so we want to get the opportunity now to hear comments that the general public may have regarding the project,” Carlson said, adding that he’s heard nothing negative about the proposal yet.

The township has a wellhead protection area surrounding the intersection of M-35 and Marquette County Road 492, which, according to the township zoning ordinance, is to add an extra level of development regulation to protect a groundwater aquifer and threats to the township’s drinking water. While certain activities are not permitted in some tiers — or subdivisions within that wellhead area — others are allowed through conditional use permits.

Carlson said utility officials had discussed purchasing a piece of property within that protected area, but were told property farther east was available and wouldn’t impact the well field.

“They are aware of it,” Carlson said. “We are working with them to assure that everything is going to be compatible to our well field because absolutely nothing that we do will impact the water supply in our township.”

Carlson said he doesn’t believe the project to be detrimental to the environment, and that the plant would allow the township to use an area of land already zoned for industrial use.

Amy Jahns, We Energies spokeswoman, said the utility company will continue to work with the township “and residents as necessary throughout this process.”

Though details are not finalized, the facility could occupy about 6 acres, with 5 to 10 additional acres needed as a construction staging and parking area, according to a presentation found on the township’s website. It could house several natural gas-fueled reciprocating internal combustion engines with the ability to generate roughly 130 megawatts.

Jahns said an alternative site in Marquette County is being evaluated in Tilden Township near the National Mine substation. Following a meeting in November with residents and industry officials, the Tilden Township Board delayed a decision on the proposal to gather more feedback.

Construction of a second plant is also being proposed in Baraga County, Jahns said. That, along with the Marquette County facility, would provide a total 170 megawatts of electric generating capacity. The facilities could begin operating in 2019, allowing for the 2020 retirement of the Presque Isle Power Plant in Marquette, which is owned and operated by We Energies.

“These natural gas generating stations will provide a long-term generation solution that assures electric reliability in the Upper Peninsula,” Jahns said.

Members of the Marquette County Board on Tuesday voiced their support of the proposed plant location in Negaunee Township.

“We certainly want to have one built in Marquette County,” said Chairman Gerald Corkin. “We support it.”

Corkin and Commissioner Joe Derocha met with officials from Negaunee Township, We Energies and the Michigan Economic Development Corporation Monday to discuss the proposal.

Derocha, who represents District 2, said if Negaunee Township officials choose to approve the power plant project, the state’s Rural Development Fund could potentially help We Energies with related infrastructure costs.

He said 35 percent of the severance tax from the Lundin Mining Corp. projects in Michigamme and Humboldt has been put into the fund to aid economic development projects throughout Michigan.

“If the severance tax works as the governor intended it to, then the Rural Development Fund should be available to help with infrastructure projects including the gas line, the rail and the electrical,” Derocha said. “This tax revenue has been captured and taken from the local units in concept of supporting infrastructure development, and if that’s what it was intended for, this is a perfect use.”

The new plants would be owned and operated by the Upper Michigan Energy Resources Corp., the creation of which is pending before the Michigan Public Service Commission, a state agency responsible for overseeing private utilities, their rates and related regulations.

If approved, UMERC would be a subsidiary of WEC Energy Group and serve roughly 40,000 Michigan electric and natural gas customers.

Jahns said the company plans to file for regulatory approvals for the natural gas generating stations by early 2017, pending the approval of UMERC.

The Michigan Public Service Commission in early November delayed its decision on the establishment of UMERC to seek more information on whether a proposed settlement agreement meets statutory requirements, and if the creation of the new utility would adversely impact customer rates and the provision of safe, reliable energy service in Michigan.

The two new facilities were most recently reported to cost about $270 million. A 20-year power supply agreement between WEC Energy Group and Cliffs Natural Resources’ Tilden Mine in Marquette County was announced in August. WEC would recoup roughly half the cost to construct the new facilities through the Tilden Mine’s rates, with the remainder to come from other UMERC customers.

Derocha said it is not clear what the potential job impact of the plant would be.

“We Energies could not commit to the number of jobs that would be created, but they were optimistic that there would be some retention of Presque Isle Power Plant jobs and new jobs created as well,” he said.

Staff writer Kelsie Thompson contributed to this report.

Ryan Jarvi can be reached at 906-228-2500, ext. 270. His email address is rjarvi@miningjournal.net

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