Plan ensures long-term viability of U.P. Mining industry

State Rep. Dave Prestin on Wednesday released the following statement after the bipartisan House passage of his plan to keep the Upper Peninsula’s 13 Reciprocating Internal Combustion Engine (RICE) generators operational through the end of their lifecycle in 2049. House Bills 4007 and 4283 passed the House with overwhelming bipartisan support:

“These bills are vital to protecting the Upper Peninsula’s energy consumers, ensuring affordable power, and safeguarding the strong union jobs both in the U.P. and across our state.

“The Tilden Mine—the second-largest iron ore mine in America—drives 60% of the U.P.’s energy demand. Energy costs make up a quarter of its operating budget. If we don’t amend the 2023 law, Tilden faces a crushing $1.3 million surcharge in 2027, which will increase until it plateaus at $15 million a month in 2040. That’s before they even flip on a light switch. No business can survive that.

“If Tilden closes, the shockwaves will not just hit the U.P. The ripple effects will be felt across all of Michigan, jeopardizing thousands of good-paying union jobs, including steel mills and auto plants in southeast Michigan. We cannot let that happen.

“Residential ratepayers will similarly have to pay a $90 surcharge. Small businesses like my old gas station would be paying $3,500 a month. Large industrial will be paying over $300,000 a month. Industry can’t survive that. Our residents can’t survive that. We are fighting for our right to exist.”

The Upper Peninsula’s 13 RICE generators were built to stabilize the area’s energy grid following the decommissioning of the Presque Isle and Shiras coal power plants in 2019. The newly constructed generators have a lifecycle through 2050 and have decreased U.P. carbon dioxide emissions by over 70%.

Without legislative intervention, new energy laws would force the RICE generators to shut down and could add tens of millions in additional costs for U.P. ratepayers. In additional to normal energy bills, monthly residential charges could increase by as much as $80, monthly commercial bills could increase by nearly $3,500, and bills for large industrial companies by more than $470,000 per month. The Tilden Iron Mine would pay upwards of $15 million per month by 2040.

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