Wolverine Plan Puts Rate Payers at Financial Risk

Wolverine Power Cooperative (WPC) is owned by the six member cooperatives covering 38 Counties in northern and west Michigan with approximately 200,000 customers, 80% are residential.

• Cherryland Electric Cooperative, Grawn

• Great Lakes Energy, Boyne City

• HomeWorks Tri-County Electric Cooperative, Portland

• Presque Isle Electric & Gas Co-op, Onaway

• Spartan Renewable Energy, Cadillac

• Wolverine Power Marketing Cooperative, Cadillac

(Wolverine) has recently begun to develop a new baseload power plant in Rogers City. Wolverine's member cooperatives, however, have non-bypassable charges on their distribution tariffs to fund the plant's development.  Cost of development and financial risk will be borne by Coop Members who have exclusive power purchase agreements with WPC.

It appears that the Michigan state governments' renewable energy goals could be jeopardized by the addition of the proposed Wolverine 600 MW power plant as a percentage of fuel type for WPC that may provide power to SVSU.  SVSU may eventually have to change providers from WPC to comply with state renewable energy goals.

WPC as of year ending 2007 has an energy portfolio comprised of % 82.6 percent coal as compared to a regional (Michigan, Illinois, Indiana, Ohio, and Wisconsin) average of % 68.9.  This could potentially place Wolverine Power Cooperative ratepayers at risk for future carbon regulation costs compared to the region.

The addition of 600 MW places WPC ratepayers at an even greater risk per the Dynegy shareholders report prepared by Innovest for the Dynegy Shareholders meeting, May 15, 2008.