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JACKSON -- CMS Energy Corp. on Monday announced plans to sell the Palisades nuclear power plant through a competitive bidding process.
The company said it expected to finalize the sale in 2007 and would sign a long-term power purchase agreement with the new owner of the plant, which is located near South Haven.
Jackson-based CMS Energy, the parent of utility Consumers Energy, turned operations of the Palisades plant over to the Nuclear Management Co. in 2000.
Chief executive David Joos said the decision to sell the plant reflects market realities.
"Ownership of nuclear power plants is consolidating as companies with multiple nuclear units are able to share operating practices, experience and resources and benefit from economies of scale," Joos said in a statement.
Though the company has seen improvements in the plant since turning it over to NMC, the management company has shrunk as other member utilities have sold their plants, Joos said.
Federal and state regulators will have to approve any sale. Joos said the plant will be sold only if the company receives a satisfactory bid.
Palisades produces up to 798 megawatts, or about 18 percent of Consumers Energy's electricity generating capacity. The plant currently is licensed to operate until 2011, and the company has asked the U.S. Nuclear Regulatory Commission to renew the license for another 20 years.
http://www.detnews.com/apps/pbcs.dll/article?AID=/20051205/BIZ/512050407
The company said it expected to finalize the sale in 2007 and would sign a long-term power purchase agreement with the new owner of the plant, which is located near South Haven.
Jackson-based CMS Energy, the parent of utility Consumers Energy, turned operations of the Palisades plant over to the Nuclear Management Co. in 2000.
Chief executive David Joos said the decision to sell the plant reflects market realities.
"Ownership of nuclear power plants is consolidating as companies with multiple nuclear units are able to share operating practices, experience and resources and benefit from economies of scale," Joos said in a statement.
Though the company has seen improvements in the plant since turning it over to NMC, the management company has shrunk as other member utilities have sold their plants, Joos said.
Federal and state regulators will have to approve any sale. Joos said the plant will be sold only if the company receives a satisfactory bid.
Palisades produces up to 798 megawatts, or about 18 percent of Consumers Energy's electricity generating capacity. The plant currently is licensed to operate until 2011, and the company has asked the U.S. Nuclear Regulatory Commission to renew the license for another 20 years.
http://www.detnews.com/apps/pbcs.dll/article?AID=/20051205/BIZ/512050407
