Pro-coal rally: Let's build a bridge to nowhere!

by: Eric B.

Wed Oct 07, 2009 at 10:41:47 AM EDT

Rep. Ken Horn, in a Tee Vee news report on yesterday's Rally to Build Bridges to Nowhere:

We can't be afraid of carbon footprints.

If you watched the video and know anything about energy issues, you might understand why I hold Tee Vee news reporting in such contempt. Essentially what TV-5 did was string together a bunch of quotes from people at the rally. Whether what they were saying is in any way accurate was not at all important. In fact, you might come away with the idea that the governor would prefer to let the state go dark and prevent billions from being invested in Michigan rather than allowing people to build coal plants. I also notice that the corporate interests who also took part in the rally weren't quoted ... they were just hard-working mid-Michiganders who can't understand why the governor would hate for them to work.

Well, none of that is true.  As has been documented here before, investments in coal power plants is difficult to come by these days.  Lack of investment, in fact, killed Midland's coal plant, construction for which would probably have employed some of the same people who would build the expansion of Karn-Weadock.  Also, it's notable that coal is the feedstock of choice primarily only in the Midwest.  Everyone else long ago sought out cheaper, more quickly built natural gas power generation, which is why T. Boone Pickens wants to switch from natural gas generation to wind, and use that natural gas to power trucks and buses. And, finally, what kind of moron in this day and age says that we shouldn't be frightened of carbon footprints?

Still, this didn't stop various legislators from speaking. We saw Sen. Jim Barcia, and we saw Rep. Ken Horn. Andy Dillon also spoke.  This is what he said (MIRS):

more...

"I feel betrayed. Three years ago, I had a dream to change the rules in this state to allow baseload power plants to get constructed," said a fired-up Dillon. "Our rules were stacked against the utilities so they couldn't build a plant in this state.

"We fought for two years to change these rules and we got bi-partisan support," Dillon continued. "We got support from business, from labor and from environmentalists, and after that day happened, after we put up a very tough vote, six weeks before an election, the bureaucrats stepped in the way and took it out from under us.

"We got to get the bureaucrats to live up to this deal so you can get back to work and we can build baseload in this state. Keep the heat on because we want to build them," he concluded.

The Lansing State Journal this morning:

The state's leadership crisis, though, extends beyond the budget. An example: Two state representatives want Gov. Jennifer Granholm to get out of the way so two coal-fired power plants can be built - even though the power plants aren't needed.

That's the conclusion of the Public Service Commission staff. They looked over proposals to build coal-fired power plants near Rogers City and Essexville. Based on their analysis of Michigan's energy needs, the staff says the two plants aren't needed now.

...snip...

Legislators should recall that power plants are paid for by ratepayers. In fact, under the "reform" of state electric law last year, utilities like Consumers can charge ratepayers for construction costs even before a construction project begins. The same law allows utilities such as Consumers to even charge ratepayers for some cost overruns on construction projects.

With struggling Michigan families potentially facing such costs, shouldn't the default position be not to build power plants unless they are absolutely needed?

...snip...

Under the Capitol Dome, the thinking seems to be that Michigan should ring up the construction bills now and figure out everything else later. That's backward.

Lawmakers - with their record of missed deadlines and general budgetary incompetence - should avoid questioning others' professional judgment and records. It just looks bad.

All true.  Andy Dillon's dream to build more coal-fired plants is based on demand estimates that turned out to be wildly wrong, and also a energy feedstock that is a relic of the Victorian age.  There is no clean coal technology in use on the marketplace right now, and the plant generation is not needed.  To top it all off, allowing these plants to move forward means even higher energy costs for Michigan ratepayers, who already got the shaft through last year's electricity re-monopolization. On top of that, most of the jobs created would reflect temporary work, not sustained economic activity. Once the plant is constructed, skilled trades workers would no longer be required. And, the 1,800 jobs we're told would be created aren't all full-time work, anyway. Anyone who's ever worked a major construction project knows that a lot of those jobs -- if indeed 1,800 are created -- would be temp work for people through agencies like Manpower.

And, by the way, when a market price for carbon is set -- either through a cap-and-trade program or an outright carbon tax -- these coal plants will represent even larger energy bills for Michigan ratepayers.  But, that's only something that concerns you if you worry about little things like carbon footprints.

What this amounts to is the demand to construct things we don't need for the sake of a handful of jobs.  Andy Dillon may have dreamed three years ago that we could streamline the process to build new coal plants.  For the rest of us, those who'd wind up forking out our own hard-earned cashed, however, it's more of a nightmare.

On the flip side, we could take that money that we'd wind up investing in old technology, and invest in new energy options. Every other country around the world that claims to want to be economically competitive -- and this includes China -- is already doing this. Judging by our budget priorities as they relate to education, however, my guess is we aren't really that interested in doing that, either.

Update! ... Not to be lost in the shuffle of yesterday's Build a Bridge to Nowhere rally was the clean energy summit near Detroit. And, also the announcement of more clean energy investment in Saginaw County, right next to Bay County.  I wonder how many skilled trades workers will get work building this (via press release)?

LANSING – Governor Jennifer M. Granholm today announced a significant addition to Michigan’s burgeoning clean-energy industrial base as Georgia-based Suniva Inc. (www.suniva.com) will invest $250 million in a new solar manufacturing facility in Saginaw County’s Thomas Township.  Suniva will create 500 new jobs over the next five years subject to receiving a Department of Energy loan guarantee, which the company recently applied for.

“Today we welcome Suniva to our growing list of world-class green manufacturing leaders that are establishing operations here,” Granholm said.  “They’re coming here for the skilled workforce, strong work ethic and competitive business climate that are synonymous with Michigan.”

The Michigan Economic Growth Authority (MEGA) today, on Michigan Economic Development Corporation recommendation (MEDC), approved a photovoltaic Michigan Business Tax (MBT) credit valued at $15 million over five years.  Michigan’s photovoltaic MBT credit provides a refundable tax credit for the construction and operation of a facility that develops and manufactures photovoltaic technology, photovoltaic systems or photovoltaic energy.  Other state and local incentives will be considered at a future date.

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