Consumers Energy on Wednesday received approval from the Michigan Public Service Commission(MPSC) on the securitization of bonds covering approximately $389.6 million in the costs associated with retiring 950MW of older, coal-fired plants.
The MPSC however did not approve the $64.7 million of demolishment-related costs for the coal fire units that are being retired, according to press release issued by the regulator.
The utility on Sept. 9 filed an application seeking to securitize the unrecovered book value of five units at BC Cobb, the two Weadock units and the three Whiting units of $361.2 million; $28.5 million in issuance and debt retirement costs; and the costs associated with the demolition of the units.
Consumers Energy said that refurbishing the plants to meet the U.S. Environmental Protection Agency's Mercury and Air Toxics Standards (which goes into effect on April 15, 2016) would not be economical.
The securitization charges related to the utility's securitization bonds will be billed to each customer for recovery over a period of no more than 15 years.