Capitol News

State Representative Dave Prestin announced the successful passage of House Bills 4007 and 4283, aimed at maintaining the operation of the Upper Peninsula's 13 Reciprocating Internal Combustion Engine (RICE) generators until their lifecycle ends in 2049. The bills received significant bipartisan support in the House.

Rep. Prestin emphasized the importance of these measures for energy consumers in the Upper Peninsula, highlighting their role in ensuring affordable power and preserving union jobs both locally and statewide. He stated, "These bills are vital to protecting the Upper Peninsula’s energy consumers, ensuring affordable power, and safeguarding the strong union jobs both in the U.P. and across our state."

The Tilden Mine, a major iron ore mine responsible for 60% of the region's energy demand, faces substantial financial challenges if current laws remain unchanged. Rep. Prestin warned that without amendments to a 2023 law, Tilden could incur a $1.3 million surcharge by 2027, escalating to $15 million monthly by 2040. He remarked, "If we don’t amend the 2023 law, Tilden faces a crushing $1.3 million surcharge in 2027, which will increase until it plateaus at $15 million a month in 2040."

He further cautioned about broader economic impacts if Tilden were to close: "If Tilden closes, the shockwaves will not just hit the U.P. The ripple effects will be felt across all of Michigan." This could endanger thousands of union jobs connected to industries like steel mills and auto plants throughout Michigan.

Residential ratepayers could face surcharges as high as $90 per month without legislative action. Small businesses might see costs rise to $3,500 monthly while large industrial entities could experience increases exceeding $300,000 each month.

The RICE generators were introduced after decommissioning coal power plants at Presque Isle and Shiras in 2019. These new generators have significantly reduced carbon dioxide emissions by over 70% and are crucial for stabilizing the area's energy grid.

Without intervention from lawmakers, new energy regulations threaten to shut down these generators leading to increased costs for ratepayers across various sectors including residential and industrial users.