Consumers Energy will not build a new $2.3 billion coal-fired power plant on the shores of Saginaw Bay in Hampton Township, Township Supervisor Terry Spegel said Friday.
A Consumers spokesman could not immediately be reached for comment but Spegel said he was told of the news by the company.
Update: Here is the explanation from Consumers:
David Mengebier, senior vice president of governmental affairs, said a surplus generating capacity in the Midwest market, along with some of the lowest natural gas prices the market has seen in years played into the decision.
"It would have been great if we could have built the $2 billion-plus coal plant in Bay County but the market conditions right now tell us that doesn't make sense," Mengebier said. "It's much less economically attractive."
Consumers on Friday also announced tentative plans to suspend operations of seven smaller coal-fired units on Jan. 1, 2015, including two units at Karn Weadock in Hampton Township. Other Consumers operations that are set to be suspended in 2015 include three units at J.R. Whiting Generating Complex near Luna Pier, and two at the B.C. Cobb Generating Plant in Muskegon.