15. What are the major reasons for the cost increases seen over the past several years for delivered coal to Michigan?


Comments:

-Steve, Union of Concerned Scientists

Energy Forum Comment

04/25/2013

Thank you for the opportunity to provide input into Michigan's energy future. The attached response was drafted by the Union of Concerned Scientists and is endorsed by the following organizations:

5 Lakes Energy
Climate Change and Earth Care Task Force, Interfaith Council for Peace and Justice Ecology Center Environmental Law & Policy Center MI Air, MI Health Coalition Michigan Clean Water Action Michigan Environmental Council Michigan Interfaith Power & Light Michigan Land Use Institute Michigan League of Conservation Voters National Wildlife Federation, Great Lakes Regional Center West Michigan Environmental Action Council

- Sam, Union of Concerned Scientists

Energy Forum Comment

04/25/2013

1. Increases in the cost of transporting coal to Michigan have been the primary driver of increases in the delivered cost of coal over the last several years.

2. Mileage based fuel surcharges, indexed to the price of diesel fuel, have been implemented by railroads and contributed to the increase in transportation costs.  The coal used by Michigan power plants travels a long distance from the point of production to the point of consumption. Coal transportation costs to Michigan are reflective of this longer distance.

3. Michigan's total coal costs increased 96% from 2004 to 2012, yet were in line with neighboring Great Lakes states during this time.

- Joint Response from Consumers Energy, DTE Energy and MEGA

Energy Forum Comment

04/24/2013