The Campbell plant is currently owned as follows:
“The J.H. Campbell Generating Plant in Ottawa County, Michigan, is primarily owned by Consumers Energy, which holds a 94.03% ownership interest. Wolverine Power Supply Cooperative owns a 1.89% stake, and the Michigan Public Power Agency (MPPA) holds the remaining 4.08%. Wolverine Power’s 1.89% ownership pertains specifically to Unit 3 of the plant, which has a capacity of 770 MW. This unit was commissioned in 1980 and is scheduled for decommissioning in May 2025 as part of Consumers Energy’s plan to eliminate coal use by 2040. The ownership structure of the J.H. Campbell Generating Plant reflects a collaborative arrangement among these entities, each holding a share in the plant’s operations and capacity.”
It is clear that Consumers Energy no longer wishes to keep the Campbell plant alive, so I propose that a group form to purchase Consumers’ share of the Campbell AT THE RIGHT PRICE, facilitated by Ottawa County. The purchasing group can consist of the following, as well as perhaps other parties as well:
- The three municipally owned electric entities in Ottawa County (in Zeeland, Holland and Grand Haven)
- An electric cooperative for the rest of Ottawa County currently without municipalized electric[1]
- MPPA
- Wolverine Power Cooperative
- Hoosier Energy
The Trump Administration should redirect the over $1 billion earmarked for the Palisades nuclear reactor to Wolverine and Hoosier, along with billions more to Holtec, to instead help the above parties purchase the Campbell: https://www.electric.coop/wolverine-hoosier-awarded-1-3-billion-to-aid-nuclear-plant-restart . This would involve Wolverine Power and Hoosier Energy dropping out of their participation in Palisades and join in the above purchase instead. Purchasing the Campbell plant from Consumers Energy to keep it operating is a much better investment than the very risky and problematic Palisades nuclear reactor.[2] The other part of the financing for the purchase could consist of municipal bonds. The debt incurred would be paid off over time from revenues generated by electric produced by the Campbell plant. That electric becomes very valuable at a time energy-hungry data centers are ramping up.
The negotiations with Consumers Energy for the purchase should be done concurrently with litigation by Ottawa County and its constituent municipalities to delay the closure of the Campbell, IF Consumers Energy and MPSC fail to heed Ottawa County’s request for delay.
THE RIGHT PRICE to purchase the Campbell must take into account the following:
- Cost to remediate the accumulated fly ash on the premises
- The uncertainty surrounding Michigan law as to how long the Campbell will be allowed to operate
- The uncertainty surrounding Federal law as to how long the Campbell will be allowed to operate
- The coming cost to install similar anti-polluting technology on Units 1 and 2 like were installed on Unit 3 of the Campbell
- Uncertainty related to future coal pricing
- Savings to Consumers Energy not to have to demolish the complex along with other costs, but leaving it to this group instead when that is necessary
- Ancillary costs to operate, such as periodic dredging of Pigeon Lake Channel
This negotiation should include the possibility of Consumers Energy contracting with the new Campbell ownership in managing/operating the Campbell for a certain contract term, under the direction of the new owners.
It needs to be understood that Michigan constitutional law gives counties broad authorities to control electric utility services in their county, IF counties choose to use those broad authorities. I would submit Ottawa County should seek to utilize all of the legal levers to get local control of electric utility service in the county, as some cities in the county have already successfully done. (It is ridiculous that Consumers Energy customers have to pay 58% more for electric than Zeeland residents, for example.) Consumers Energy needs to understand that it will have no long-term future in Ottawa County if it does not do what Ottawa County wants with respect to the Campbell plant. It is time for Ottawa County to exercise a little “art of the deal.”
[1] I would recommend the municipalities in Ottawa County currently without municipalized electric immediately begin organizing this cooperative. Its Board of Organizers and Advisors could consist of representatives from each of the townships.
[2] https://savethecampbell.com/former-lead-engineer-at-palisades-plant-says-it-is-unfit-for-quick-restart/