Consumers Energy

Consumers Energy
	File:Consumers Energy logo.svg Logo used since 1997
Company type	Subsidiary
Industry	Electric utility, Natural gas utility
Founded	1886
Founder	William A. Foote, Samuel Jarvis
Headquarters	Jackson, Michigan, United States
Area served	Lower Peninsula of Michigan
Key people	Garrick J. Rochow (President & CEO)
Products	Electricity, Natural gas
Owner	CMS Energy (parent company)
Parent	CMS Energy
Website	www.consumersenergy.com

Consumers Energy is a privately owned utility company delivering electricity and natural gas to approximately 6.7 million individuals out of Michigan’s 10 million population. It provides service across every one of the 68 counties within the state's Lower Peninsula and functions as the main subsidiary under CMS Energy. Established in 1886, its corporate headquarters are located in Jackson, Michigan.

History

Initially established in 1886 as Jackson Electric Light Works by William A. Foote and Samuel Jarvis, the enterprise began by installing electric lighting systems in downtown Jackson. Through a series of acquisitions and mergers involving local electric, gas, and trolley companies, it was incorporated as Consumers Power Company in 1910 in Maine. The company became part of the utility holding group Commonwealth & Southern Corporation, which managed utilities across ten states. After Commonwealth & Southern dissolved in 1946, Consumers Power regained its independence and reestablished incorporation in Michigan in 1968, continuing to base its headquarters in Jackson.

Consumers Power managed the Big Rock Point Nuclear Power Plant from 1962 until 1997 and constructed the Palisades Nuclear Generating Station near South Haven in 1971, which was subsequently sold to Entergy. In 1968, it initiated construction of a nuclear facility in Midland for Dow Chemical Company, but due to construction setbacks, regulatory shifts following the 1979 Three Mile Island incident, and foundation complications, the project was abandoned in 1984. This $4.1 billion expenditure nearly caused financial collapse for the company. In 1985, Consumers Power joined forces with eight other companies to transform the Midland plant into a natural gas-powered facility—the Midland Cogeneration Venture—which commenced operations in 1991 and helped restore the company's financial standing.

The firm adopted the name Consumers Energy in 1997. In 2011, it inaugurated Lake Winds Energy Park, a wind power project with a capacity of 100 megawatts located in Mason County, Michigan. A subsequent wind energy facility, Cross Winds Energy Park in Tuscola County, was announced in 2014 with an investment of $250 million. By 2015, renewable energy sources represented ten percent of its total electricity production.

Since 2009, Consumers Energy has rolled out extensive energy efficiency initiatives that provide rebates and incentives for both residential and commercial customers. Its well-known slogan is "Count on Us," and it continues as the principal subsidiary within CMS Energy.

In 2018, Consumers Energy revealed plans to phase out all coal-fired power plants by 2040 while targeting a renewable energy share of 40 percent by that year. That same year, it became the title sponsor for the August Monster Energy NASCAR Cup Series event held at Michigan International Speedway.

In December 2020, Garrick J. Rochow was named President & CEO of CMS and Consumers Energy following a career spanning seventeen years with the company.

System information

As a result of regulatory changes affecting utilities, Consumers Energy sold its transmission assets to the Michigan Electric Transmission Company (METC), an ITC Holdings subsidiary that also owns Detroit Edison’s transmission network under the "ITCTransmission" brand. The distribution voltages primarily utilized by Consumers Energy include 2.77/4.8Y kV, 4.8/8.32Y kV, 7.2/12.47Y kV, 7.97/13.8Y kV, and 14.4/24.9Y kV systems. The company maintained ownership of its looped high-voltage sub-transmission networks at 23kV and 46kV levels along with radial lines operating at 138 kV.

Generating portfolio

Consumers Energy's generation assets owned by the utility encompass hydroelectric power plants (including partial ownership of the Ludington Pumped Storage facility), wind energy farms, a nuclear power station, coal-fired plants, and natural gas peaking units.

Hydroelectric

The company possesses 13 hydroelectric dams situated on five Michigan rivers, constructed between 1906 and 1935, with a total capacity near 130 megawatts—sufficient to supply roughly 70,000 customers. These plants are distributed along the Au Sable River (Mio, Alcona, Loud, Five Channels, Cooke, and Foote), Grand River (Webber), Kalamazoo River (Allegan), Manistee River (Hodenpyl, Tippy), and Muskegon River (Rogers, Hardy, Croton). The Webber Hydro facility on the Grand River is the longest-operating plant since 1907; meanwhile, Croton Hydro holds a place on the National Register of Historic Places.

Plant	River	Power (MW)
Alcona Dam	Au Sable	8
Allegan Hydro	Kalamazoo	3
Cooke Dam	Au Sable	9
Croton Dam	Muskegon	9
Five Channels Dam	Au Sable	6
Foote Dam	Au Sable	9
Hardy Dam	Muskegon	30
Hodenpyl Hydro	Manistee	18
Loud Dam	Au Sable	4
Mio Dam	Au Sable	5
Rogers Hydro	Muskegon	7
Tippy Dam	Manistee	20
Webber Hydro	Grand	4

Pumped Storage

Consumers Energy shares ownership of the Ludington Pumped Storage Power Plant near Ludington with DTE Energy. Constructed from 1969 to 1973 on a 1,000-acre site by Lake Michigan, this facility includes an 842-acre reservoir capable of holding 27 billion gallons of water, enabling substantial energy storage capacity and effective grid management.

Nuclear

Previously, Consumers Energy operated the Big Rock Point Nuclear Power Plant near Charlevoix, Michigan, which was Michigan's inaugural nuclear station and the fifth in the United States. It generated 67 megawatts before its closure in 1997. The company also owned the Palisades Nuclear Generating Station located near South Haven, which was shut down in May 2022.

Coal

The J.H. Campbell power plant between Holland and Grand Haven stood as Consumers Energy's largest coal-fired station. The D.E. Karn generating facility near Bay City ran coal units until 2024; units 1 and 2 were retired that year, leaving units 3 and 4 operating with natural gas and fuel oil. Other coal plants such as Cobb in Muskegon, Whiting on Lake Erie, and J.C. Weadock were closed by 2016. While the initial plan targeted coal phase-out by 2040, Consumers Energy expedited this timeline to complete coal plant retirements by 2025 to support its renewable energy objectives.

Natural gas

The Midland Cogeneration Venture in Midland, previously owned by Consumer Power, continues providing electricity to Consumers Energy. Additional natural gas facilities are planned to replace retiring coal-fired stations.

In 2014, Consumers Energy began acquiring the DPC Juniper power plant in Jackson, Michigan, finalizing the $155 million transaction in 2016. Renamed Jackson Generation Station, it delivers a capacity of 540 megawatts.

In June 2023, Consumers Energy purchased the Covert Generation Station in Van Buren County for $815 million. This plant has a generation capacity of 1,176 megawatts.

Consumers Energy also operates natural gas and oil peaking plants including Zeeland Generating Station, Karn units 3 & 4 Generating Station, and various combustion turbine stations.

Natural gas distribution and storage

Consumers Energy supplies natural gas throughout Michigan, delivering approximately 373 billion cubic feet annually to both residential and commercial clients. The company procures all the natural gas it distributes and serves a customer base exceeding 1.7 million through an extensive network of over 27,000 miles of transmission and distribution pipelines. In 2013, the company was fined $1.4 million following two gas explosion incidents that resulted in three deaths.

Electric vehicles

At the beginning of 2018, Consumers Energy joined forces with General Motors (GM) to create "smart charging" solutions tailored for electric vehicle owners. The utility plans to purchase more than 100 electric vehicles from GM and will pilot charging technology designed to postpone vehicle charging until nighttime during off-peak hours. Furthermore, Consumers Energy pledged $7.5 million to aid in expanding the electric vehicle charging infrastructure across Michigan.

Philanthropy

Each year, Consumers Energy dedicates roughly $10 million to nonprofit organizations throughout Michigan via grants, employee donations, and corporate philanthropy. The company has raised in excess of $1.8 million for United Way’s Michigan campaigns and actively promotes employee volunteer programs. Its support extends to early childhood education and environmental programs, achieving certifications from the Wildlife Habitat Council.

In recognition of its leadership in the PeopleCare assistance program—which has provided $27 million in energy bill credits since its launch—Consumers Energy was honored with the William Booth Award by The Salvation Army in 2013.

Political activities

Executives at Consumers Energy maintain influential connections with corporate advocacy groups and hold advisory roles within Michigan’s government. Garrick Rochow, President and CEO, serves on the boards of prominent organizations including the American Gas Association and Edison Electric Institute, as well as various state business councils. Brandon Hofmeister, Senior Vice President of Sustainability and External Affairs, previously advised Governor Jennifer Granholm on energy and climate matters and currently participates on Governor Gretchen Whitmer’s Council on Climate Solutions while overseeing Consumers’ charitable foundation.

Hofmeister also sits on the board of Citizens for Energizing Michigan’s Economy (CEME), a political action group financed by Consumers Energy with $43.5 million contributed between 2014 and 2017. CEME is known for opposing renewable energy initiatives and backing politicians favorable to utility interests. As a result of CEME’s activities, the Michigan Public Service Commission prohibited Consumers from making donations to this group for a two-year period starting in 2018.

In 2023, campaign contributions from Consumers or its employees were accepted by 113 out of 148 Michigan state legislators. Among these recipients, Aric Nesbitt and Joe Bellino—both former chairs of the House Energy Committee—received the highest direct financial support from Consumers.

External links

Footnotes