Wolverine is over invested in Coal

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

The 21st Century Energy Plan makes reference to Wolverine on the bottom of page 16, footnote 20.

20 Wolverine Power Cooperative, Inc. (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.

Wolverine also has a fractional ownership, 15MW, of the mine to mouth coal fired power plant, Prairie State Energy Campus, in Southern Illinois. Others who share ownership with WPC in Prairie Sate include: the Indiana Municipal Power Agency; Kentucky Municipal Power Agency; Missouri Joint Municipal Electric Utility Commission; Northern Illinois Municipal Power Agency; Soyland Power Cooperative, Inc. in Illinois.

One of Wolverines customers includes Saginaw Valley State University SVSU. Another state entity, Northern Michigan University’s (NMU) Ripley Heating Plant, has been issued an air permit.

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 (Appendix A info below-graphics are attached to this email) 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 WPC ratepayers at risk for future carbon regulation costs compared to the region.