Michigan's energy path is at a crossroads. We face a critical and historic choice when it comes to meeting Michigan's future energy needs.
We can either invest in clean, renewable energy, which will help Michigan fight global warming, create good-paying jobs and attract investments in one of the fastest-growing markets in the economy, or we can pour scarce resources into building more dirty coal plants, which would threaten Michigan's healthy lifestyles, contribute to global warming and unnecessarily burden consumers.
The choice is clear. Coal is turning out to be the fool's gold of the 21st century, a boondoggle that threatens to send consumers' hard-earned money and quality of life up in smoke.
Three major investment banks -- Citigroup, J.P. Morgan Chase & Co. and Morgan Stanley -- recognize that dirty coal plants are bad business and are yanking money from coal plant projects because of concerns about skyrocketing future costs. In a Feb. 4 announcement, the banks said they will begin emphasizing renewable energy and energy efficiency when financing energy projects, in part because they create more jobs and deliver larger returns with less risk.
As it turns out, it's not just future costs that threaten consumers, but skyrocketing costs in the here and now. The Edison Electric Institute and Energy Information Administration say construction costs of coal plants have surged an average of 40 percent since 2000, while the delivered cost of coal have increased by another 40.8 percent. Coal-burning costs will climb even higher as the nation cracks down on dangerous CO2 emissions and energy companies try to pass these costs onto Michigan consumers.
Michiganders pay the price for current dirty energy with our health, too. According to a 2007 report by the Natural Resources Defense Council, burning coal releases enormous amounts of harmful pollutants and particulate matter into the air and water, with serious health consequences. Power plant pollution is responsible for 38,000 non-fatal heart attacks and 554,000 asthma attacks each year."
There is a solution on the horizon to the problem of utilities passing the rising costs of coal onto consumers. The Michigan Ratepayer Protection Plan, recently announced by State Representative Fred Miller, safeguards Michigan consumers by making utilities -- not consumers -- absorb the costs of future regulations on dangerous greenhouse gas emissions. Under the plan, corporate shareholders would have to assume the risk of bad billion-dollar investments in outdated coal, while Michigan residents would be protected. The plan prevents energy giants from profiting at the expense of Michigan consumers.
Michigan must follow the lead of investment banks like Citigroup, J.P. Morgan Chase & Co. and Morgan Stanley. We must reject bad energy investments made by major energy companies and instead, embrace smart investments in renewable energy and energy efficiency to protect our health, create jobs and protect our pocketbooks.
The choice is clear. Coal plants are a bad investment for Michigan. Michigan must look toward clean, renewable energy sources and move away from building new dirty coal plants. Protect your health. Protect your pocketbook. Protect Michigan. Leave coal plants where they belong: in the past.
About the authors: Daniel Farough, executive director of Progress Michigan, is a former press secretary for House Democratic leader Dianne Byrum, the House Democratic Caucus and House Speaker Andy Dillon. He also worked as a political consultant for both Republicans and Democrats. Lisa Wozniak, executive director of the Michigan League of Conservation Voters, previously served as the Great Lakes Regional Director for the national League. She also worked on Democratic political campaigns.
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