Michigan’s energy landscape saw major changes in 2011 with growing renewable energy supplies, significant customer savings through energy efficiency, and a rebalancing of its energy supply portfolio. “As Consumers Energy celebrates its 125th year of service, we’re taking a look back at significant energy developments this year.

Looking to 2012 and beyond, Consumers Energy plans on investing $6.6 billion in Michigan over the next five years to improve the environment, boost the economy and create jobs, and add value to the electric and natural gas service we provide to 6.8 million people in the state,” said John Russell, Consumers Energy’s president and chief executive officer.

Major energy developments in Michigan this year included: Customers set all-time record: Economic improvement picked up in the part of Michigan served by Consumers Energy.  On July 21, Consumers Energy’s 1.8 million electric customers set an all-time hourly peak record of 8,930 megawatts (MW), the highest level in the company’s 125-year history.

Electric sales to industrial customers in 2011 returned to pre-recession levels, with sales to residential customers expected to return to that level in 2012. Severe weather: Severe weather was a staple in 2011, and weather-related  challenges to Consumers Energy’s electric system increased dramatically.  Severe weather warnings for thunderstorms and tornadoes increased by 100 percent over last year, and the occurrence of ice and freezing precipitation conditions increased by 600 percent.

Lightning strikes increased by 300 percent over last year.  Consumers Energy aggressively responded to this challenge through increased pre-storm planning, technology advances and outage analysis. Renewable energy costs decline, wind moves forward: Renewable energy is emerging as an important factor in Michigan’s energy supply.

Consumers Energy reduced the estimated cost of its renewable energy plan by $54 million per year due to improved wind turbine technology.  Following approval by the Michigan Public Service Commission (MPSC), customer costs for the program were lowered in September. Separately, construction began in November of the utility’s first wind energy project, the Lake Winds Energy Park in Mason County.

The addition of Lake Winds, scheduled to begin production by year-end 2012, will increase to 8 percent the amount of renewable energy that Consumers Energy provides to customers. Economic gardening takes root: The Snyder Administration’s philosophy of strengthening the state’s economy by stimulating business to business sales between Michigan-based companies is gaining traction.

Consumers Energy was one of the first  companies to join Gov. Rick Snyder and the Michigan Economic Development Corporation in the new Pure Michigan Business Connect initiative, created to help state businesses expand and grow. At year-end Consumers Energy increased its spend with Michiganbusinesses by $170 million in multi-year contracts awarded to 89 companies.

The utility’s new “Michiganpreferred” purchasing strategy is helping state businesses create jobs and retain workers. Energy efficiency helps customers save money:  Energy efficiency is the cheapest source of new energy supplies.  Consumers Energy customers are seeing significant savings by implementing energy efficiency measures, part of Michigan’s energy reform law.

Customers have saved more than $92 millionsince programs were launched in July 2009. Renewed focus on energy policy:  State and federal policy makers closely examined energy issues in 2011.  Michigan’s landmark energy reform law of 2008 was comprehensively reviewed and reaffirmed during several weeks of hearings and testimony by more than 60 participants before the state Senate Energy and Technology Committee, led by Sen. Mike Nofs (R-Battle Creek/Jackson).

The law, which includes provisions for expanding renewable energy, energy efficiency programs, and regulatory reform, is creating jobs and strengthening Michigan’s economy.  The Michigan Jobs and Energy Coalition, comprised of statewide energy providers, business organizations, labor organizations and renewable energy advocates, led efforts to uphold the law.

Air quality regulations take effect:  Michigan’s air quality continued to improve in 2011.  Consumers Energy continued its progress and has achieved about a 60 percent reduction in total emissions from its power plants.  Meanwhile, the U.S. EPA issued a series of controversial environmental regulations that will have a major impact on coal plants in Michigan and across the country.

Consumers Energy announced $1.6 billion in further investments in ongoing air quality improvements at its five major coal plants, cancellation of a clean-coal project at its Karn/Weadock Complex, and anticipated suspension in operations in 2015 at seven smaller coal plants.  The air quality investments are expected to produce 2,000 construction jobs. Protection for vulnerable customers: Ensuring energy bill assistance for low-income customers received significant attention.

On Dec. 20 Gov. Rick Snyder signed legislation authorizing the Vulnerable Household Warmth Fund to provide emergency financial assistance to low-income customers struggling to pay their energy bills. The MPSC quickly implemented the law.  Consumers Energy is a participant in a workgroup led by State Sen. Bruce Caswell (R-Hillsdale) to develop long-term strategies to reform the state’s low-income energy assistance programs.

Stability and community outreach:  On Dec. 6 Consumers Energy celebrated the start of its yearlong celebration of 125 years of service to Michigan.  The celebration highlight was the Consumers Energy Foundation’s announcement of $1.25 million in matching grants to 10 communities, including Bay City,Flint, Grand Rapids, Jackson, Kalamazoo, Lansing, Muskegon, Pontiac, Saginaw and Traverse City.

“Consumers Energy is proud that we’ve been serving customers in Michigan for 125 years.  Michiganfamilies and businesses know they can ‘Count of Us’ to provide them with reliable, safe and affordable electric and natural gas service.  Our employees are fully committed to making Michigan successful as we begin a new year,” said Russell.

Consumers Energy, the principal subsidiary of CMS Energy, provides natural gas and electricity to 6.8 million of Michigan’s 10 million residents in all 68 Lower Peninsula counties.

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Urging President Obama to remove politics from a key decision that impacts U.S. jobs and national security, Chairman of the Western Hemisphere Subcommittee Connie Mack along with 56 other Members of the House, signed a letter recently demanding the President reconsider his decision to delay approval of the Keystone XL Pipeline until 2013.  The letter acknowledges that American’s are prioritizing job creation and energy security, Obama must follow suit.

Mack stated: ”It is damaging to hard working Americans that, after a three year process of review and delays on the decision to construct a secondary pipeline from our ally Canada, President Obama has put this project on hold until after next year’s election. Creating U.S. jobs and bringing security to the global economy cannot be placed on hold. An affirmative decision must be rendered without any further delays.”

Below is text of a letter sent to President Obama:

Dear Mr. President:

We are writing to express our deep frustration over news that a decision on the Keystone XL Project will be further delayed until after next year’s presidential election. The decision by Nebraska’s legislature to vote on this project without any delay shows the American people’s resolve to create jobs and ensure our energy security.

We ask you to take action before the end of the year in line with the Department of State’s longstanding public timeline. As you know, the permit application for the Keystone XL Project was submitted over three years ago, in September of 2008.

Since then, this pipeline has undergone three stages of public environmental impact studies (draft, supplemental, and final) as well as detailed, public economic and national security reviews by myriad academics, consultants, and experts. The Keystone XL Project’s unusually protracted permit application process has allowed ample time and opportunity for public debates and investigations.

Any further delay in this process will only be viewed as placing political gain over the U.S. economy and security. Satisfying America’s future energy needs will require a willingness to commit to a variety of resources and technologies. Natural disasters and volatile political climates in places like the Middle East andVenezuela mean the global oil supply will remain susceptible to disruption with potentially severe impacts on the global economy and our national security.

Canadian oil, combined with domestic fossil fuels and alternative energy innovations, will go a long way toward determining our country’s energy security. Construction of the pipeline will create thousands of jobs and inject millions of dollars into local economies. While the Keystone XL Project cannot solve America’s energy crisis alone, it is a necessary step for the U.S. economy, U.S. national security and U.S. energy needs.

Mr. President, the American people should not have to watch this job creating project fail because of partisan concerns; our national security and economy are too important. The time to make a decision is now.

 

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With the failure of the Obama administration to extend its fiscal policy and redeem the American economical illness, people have now fervently placed their hopes in the lap of the Federal Reserve Bank. The American economy is currently going through a rough phase riddles with unfortunate events that has infused pessimism in the system.

Americans are believed to be as pessimistic about the U.S economy as they were during the Great Depression; this shows in key readings of the consumer confidence data. In august the consumer confidence index plunged to its lowest level since April 2009. Consumer confidence index is the degree of optimism consumers have about the overall state of the economy.

It generally indicates the financial situation of the people and their confidence about their future earnings. In a situation like this where rising unemployment and mild lob losses on a constant basis lowers the probability of stability in future income, consumers eventually lose buoyancy and start reducing their spendings.

The consumer confidence index, also sometimes referred to as the expectation index, that dropped 23 point from 74.9 to 51.9 in July. The month of August saw the steepest fall since the heydays of the early recession in 2007.

Jobs in crisis

The darkening outlook of US economy is due to the debt ceiling debates, falling employment, irregular stocks and the downgrade by S&P. With spending cuts and the gloomy jobs outlook, the chances of a sooner-than-expected recovery remains a distant dream.

In a top job-killing list, prepared by CNN Money, Goldman Sachs, the Wall Street giant, took second place; Goldman recently axed 1000 jobs as a part of their cost-cutting effort. Technology giant Cisco Systems also announced a cut of 6500 employees. Top defense supplier to pentagon, The Lockheed Martin said it has laid off 6500 employees and counting.

Research in Motion, maker of Blackberry, also slashed 2000 employees or nearly 10 percent of its workforce. Once the leader in North America Smartphone market, the company finds that sales are waning since Apple launched its new iPhone. With fiscal alternatives drying up there has been a diversion of attention towards the Federal Reserve (FED).

At the two-day FED annual forum at Jackson Hole, Wyoming, Bernanke did not give any hints about another round of economic stimulus, but said that the central bank would do all to help boost recovery. Jesse Cole, head of Merlin Institutional group, said “Bernanke really indicated that the central bank has a lot more tools and weapons at its disposal to stimulate the economy.”

Hopes are sky high since the FED chief used his Jackson Hole speech last year to lay the groundwork for a second round of bond purchases. Earlier in December 2008, the FED chief expanded the meeting for two days and lowered the benchmark interest rate to near zero from 1%

Roller-coaster ride

Recent budget outlooks from the Congressional Budget Office (CBO) provided further proof that the U.S. should be serious about dealing with debt. CBO wants to make about about striking a balance in the efforts to tamp down the debt burden and tanking economic growth.

Not surprisingly, Bernanke echoed a similar voice when he said policymaker should be more careful with current economic recovery and fiscal headwinds that may come up in time. The macro economic situation is difficult with the current high unemployment rates, the high gasoline prices,the  debt mountain, and shrinking alternatives.

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