Consumers Energy and Detroit Edison Announce Major Maintenance and Upgrade Project at Ludington Pumped Storage Plant

$800 million project will generate 100 construction jobs each year for six years

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Feb 07, 2011, 03:30 ET

LUDINGTON, Mich., Feb. 7, 2011 /PRNewswire/ -- Consumers Energy and Detroit Edison, co-owners of the Ludington Pumped Storage Plant, today announced a major maintenance and upgrade project that will mean significant investment in northwest Michigan, 100 construction jobs per year and increase the plant's power generation by 16 percent. Each utility will invest approximately $40 million per year over 10 years. The award-winning Ludington plant has been providing Michigan families and electric customers with reliable, low-cost electricity since 1973.

"The Ludington Pumped Storage Plant has proven its value over several decades of service, providing millions of Michigan electric customers with outstanding performance and dependable reliability. This major investment is a sign of our commitment to Michigan's economic development and points to the state's future growth," said John Russell, Consumers Energy's president and chief executive officer. Consumers Energy operates the Ludington plant and owns 51 percent of the facility.

"We are pleased to be making this investment in the Ludington facility," said Steve Kurmas, president of Detroit Edison, 49 percent owner of the Ludington plant. "The upgrades will improve its efficiency, increase its role in support of clean-energy sources for Michigan, create jobs and ensure that the plant will continue to contribute to the economy of the Ludington area and Michigan for many more decades. This kind of long-term investment would not have been possible without the comprehensive energy legislation adopted by the state legislature in 2008."

The upgrade project will begin in 2013 and is scheduled through 2019. It will be one of the largest construction projects in northwest Michigan since the Ludington plant was first constructed. The project will provide significant economic benefits for the Mason County area, and will create an additional 100 construction building trades jobs per year, employing electricians, welders, crane operators, pipefitters, millwrights and carpenters.

The maintenance and efficiency upgrade will increase the generating capacity of the plant from its current level of 1,872 megawatts (MW) to approximately 2,172 MW. The Ludington plant plays an increasingly important role as a storage facility for renewable energy produced during off-peak periods, thereby making renewable energy more affordable and reliable.

As more wind generation is added in the Midwest region, the Ludington plant can be used at night and during other periods when demand for electricity is low to "store" the clean energy until it's needed by electric customers. The Ludington plant addresses a key challenge of wind energy which is produced intermittently and cannot be stored, with the exception of special facilities like Ludington.

The maintenance and efficiency upgrade includes a major contract with Toshiba International Corporation for fabrication and installation of equipment to elevate the efficiency, output and reliability of the Ludington plant's six 312-MW hydroelectric units. Toshiba, a global leader in electric generator technology, was awarded the contract through a competitive bidding process.

The Ludington plant pumps water during the night uphill 372 feet to its 27 billion gallon reservoir. The Ludington plant has the world's largest motors when in pumping mode. During day-time periods of peak customer electric demand the water is released through turbines to generate electricity. The plant currently produces enough to power a community of 1.4 million people. The upgrade will enable the facility to meet the electric demand of a community of 1.65 million, while the increased water pumping efficiency will further decrease the plant's operating costs. The necessary maintenance and upgrades planned for the next 10 years will allow the plant to continue to provide efficient, reliable service for many years to come.

The American Society of Engineers honored the Ludington plant as the Outstanding Engineering Achievement of 1973. Separately, the plant was named one of Michigan's Top 10 civil engineering projects for the 20th century by the Michigan section of the American Society of Civil Engineers.

Consumers Energy, the principal subsidiary of CMS Energy (NYSE: CMS), provides natural gas and electricity to nearly 6.5 million of Michigan's 10 million residents in all 68 Lower Peninsula counties. For more information about Consumers Energy, visit our Website at www.consumersenergy.com

Detroit Edison is an investor-owned electric utility serving 2.1 million customers in Southeastern Michigan and a subsidiary of DTE Energy (NYSE: DTE), a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Information about DTE Energy is available at www.dteenergy.com

SOURCE Consumers Energy