Cloverland Electric Cooperative is reviewing the January 13 press release from Gov. Snyder’s office announcing agreements between We Energies, Upper Peninsula Power Company (UPPCO), Invenergy, and Cliffs Natural Resources Inc., that will reportedly provide a long-term solution starting in July for Upper Peninsula electric rate payers.
“Cloverland Electric was not part of the discussion leading to this announcement,” states Dan Dasho, Cloverland’s president/CEO. “At first glance, this long-term solution has no effect on the short-term crisis facing Cloverland members in the coming months. If the Federal Energy Regulatory Commission (FERC) announces a decision in mid-February related to the System Support Resource (SSR) payments for the Presque Isle Power Plant, then Cloverland members may have to pay up to $2 million per month for several months until purchase of the Presque Isle Power Plant by UPPCO is completed.
“The solution brokered by the governor’s office attempts to address the U.P.’s long-term energy needs. It does not address our short-term problem,” Dasho explained. “If the purchase can realistically be completed by July, then UPPCO will own the Presque Isle Power Plant and they would have to request the Midcontinent Independent System Operator (MISO) and FERC to remove the SSR designation. Each month of delay on this is another potential $2 million Cloverland members would have to pay.”