Utilities following toxins rules

July 01--TRAVERSE CITY -- A state challenge to a federal power plant emissions rule won't put more money in residents' pockets anytime soon.

The U.S. Supreme Court this week ruled on a challenge from more than 20 states, including Michigan, to a U.S. Environmental Protection Agency regulation. The decision sent the challenge back to a lower court and said the EPA needed to better calculate the costs of its regulations.

Officials at local energy utilities said they've already taken irreversible steps toward meeting the EPA guidelines that regulate mercury and other pollutant emissions from coal-fired plants.

The regulations at the heart of the case, the Mercury and Air Toxics Standards, are still in effect after the decision, and utility officials said Michigan has a comparable rule that would take effect even if the federal regulation is overturned.

Tony Anderson, general manager of Cherryland Electric Cooperative, praised the ruling.

"When a government entity makes a regulation, they should consider the cost to the general public," Anderson said. "It's too easy for them to kick out regulations and worry about the costs later."

Anderson said the court case won't have an impact on a decision by Wolverine Power Cooperative, from which Cherryland purchases power, to abandon plans for a coal-fired plant in Rogers City. He said Wolverine already expended funds to comply with EPA rules.

The states involved in the case argued nationwide costs of compliance would be $9.6 billion annually, while benefits would amount to $4 to $6 million.

"The attorney general pursued this case at the highest levels because it was an obvious overreach by the EPA into people's businesses and people's lives," said Andrea Bitely, communications director for the Michigan Attorney General's office.

Jim Dulzo, senior energy policy specialist for the Groundwork Center for Resilient Communities, said there's no need for utilities to be reliant on coal-powered plants or for those plants to release toxins into the air.

"I think when (utilities) looked at that rule and looked at their really old, dirty coal plants, they said maybe it really is time to shut these plants down, particularly with the price of natural gas falling and with the price of renewable energy falling," Dulzo said.

Dan Bishop, director of media relations for Consumers Energy, said the utility will retire seven of its 12 coal-fired plants in April of 2016. The decision was motivated by a combination of factors, including the plants' ages, the EPA standards and similar state standards. DTE Energy will retire two coal-fired units for the same reasons.

"The combination of the federal rule and state rule provided a certain road map, and that's important," Bishop said.

Ratepayers served by Traverse City Light and Power have been mostly immune to cost increases associated with coal plant upgrades, said Tim Arends, the utility's executive director.

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