Consumers Energy facts for kids
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| Subsidiary | |
| Industry | Electric utilities, Natural Gas Utilities |
| Founded | 1886 |
| Headquarters |
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United States
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Area served
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Michigan |
| Parent | CMS Energy |
Consumers Energy is a big company that provides natural gas and electricity to many homes and businesses in Michigan. They help power the lives of about 6.7 million people in Michigan's Lower Peninsula. Consumers Energy started way back in 1886 and its main office is in Jackson, Michigan. It's a key part of a larger company called CMS Energy.
Contents
The Story of Consumers Energy
How It All Began
Consumers Energy started in 1886 as Jackson Electric Light Works. It was founded by William A. Foote and his brother James B. Foote, along with Samuel Jarvis. Their first job was to install electric lights in downtown Jackson.
Over time, the company grew by joining with other local electric, gas, and trolley companies. In 1910, it officially became Consumers Power Company. It was once part of a huge group of utility companies called Commonwealth & Southern Corporation.
Growing and Changing
In 1946, Consumers Power became an independent company. It continued to serve Michigan and moved its main office to Jackson in 1968.
The company also operated nuclear power plants. It ran the Big Rock Point Nuclear Power Plant from 1962 to 1997. It also built the Palisades Nuclear Plant in 1971, which was later sold.
A Big Challenge and a Comeback
In 1968, Consumers Power began building a nuclear plant in Midland, Michigan. This plant was mainly for the Dow Chemical Company. However, the project faced many problems, including delays and rising costs.
After the Three Mile Island accident in 1979, rules for nuclear plants became much stricter. When problems with the Midland plant's foundation were found, Dow Chemical canceled its contract. The project was stopped in 1984. This huge investment of $4.1 billion almost caused Consumers Power to go bankrupt.
But the company found a solution! In 1985, Consumers Power teamed up with eight other companies. They decided to change the abandoned nuclear plant into a natural gas-fired power plant. This transformation cost $500 million and was finished in 1991. The new plant, called the Midland Cogeneration Venture, started making power. This success helped Consumers Power regain trust.
New Name and Green Energy
In 1997, the company changed its name to Consumers Energy. They also started focusing on cleaner energy.
In 2011, they got approval to build a large wind energy farm called Lake Winds Energy Park. In 2014, they announced their second wind farm, Cross Winds Energy Park. By 2015, Consumers Energy was getting ten percent of its electricity from renewable sources like wind.
Since 2009, Consumers Energy has offered programs to help homes and businesses save energy. Their well-known slogan is "Count on Us."
In 2018, Consumers Energy announced plans to stop using all coal-burning plants by 2040. They aim to get 40% of their power from renewable power by then. In December 2020, Garrick J. Rochow became the President and CEO of CMS and Consumers Energy.
How Consumers Energy Works
Power Grid and Distribution
Consumers Energy used to own its power transmission system. But due to new rules, they sold it to Michigan Electric Transmission Company (METC). This company now manages the large power lines that carry electricity across Michigan.
Consumers Energy still manages the smaller power lines that deliver electricity directly to homes and businesses. These lines use different voltages to safely bring power to you.
Where Consumers Energy Gets Power
Consumers Energy uses a mix of different ways to create electricity. This includes power from water (hydroelectric), wind farms, and plants that burn natural gas.
Hydroelectric Power
Consumers Energy owns 13 hydroelectric power plants, also called dams, along five rivers in Michigan. These plants were built between 1906 and 1935. Together, they can make enough electricity for about 70,000 homes.
These areas around the dams are also popular for outdoor activities like canoeing, fishing, and bird watching. The oldest operating hydroelectric plant is the Webber Hydro on the Grand River, which has been running since 1907. The Croton Hydro on the Muskegon River is even listed as a historic place!
| Plant | River | Power (MW) | Notes |
|---|---|---|---|
| Alcona Dam | Au Sable | 8 | |
| Allegan Hydro | Kalamazoo | 3 | |
| Cooke Dam | Au Sable | 9 | |
| Croton Dam | Muskegon | 9 | |
| Five Channels Dam | Au Sable | 6 | |
| Foote Dam | Au Sable | 9 | |
| Hardy Dam | Muskegon | 30 | |
| Hodenpyl Hydro | Manistee | 18 | |
| Loud Dam | Au Sable | 4 | |
| Mio Dam | Au Sable | 5 | |
| Rogers Hydro | Muskegon | 7 | |
| Tippy Dam | Manistee | 20 | |
| Webber Hydro | Grand | 4 |
Pumped Storage Power
Consumers Energy also helps run the Ludington Pumped Storage Power Plant near Ludington. This plant was built between 1969 and 1973. It has a huge reservoir that can hold 27 billion gallons of water! This plant stores energy by pumping water uphill when electricity is cheap, then letting it flow downhill to make power when it's needed most.
Nuclear Power
Consumers Energy used to operate the Big Rock Point Nuclear Power Plant near Charlevoix, Michigan. This was Michigan's first nuclear power plant and one of the earliest in the United States. It operated for 35 years until it closed in 1997. The Palisades Nuclear Generating Station was also once owned by Consumers Energy and stopped operating in May 2022.
Fossil Fuels
Consumers Energy also uses power plants that burn fossil fuels like coal and natural gas.
Coal Power Plants
The J.H. Campbell power plant is one of Consumers Energy's largest plants, located between Holland and Grand Haven. Another plant, the D.E. Karn generating station, closed its coal units 1 and 2 in 2024. It now uses natural gas and fuel oil for units 3 and 4.
Other coal plants like Cobb, Whiting, and J.C. Weadock Generating Plant stopped operating in 2016. Consumers Energy has plans to close all its remaining coal plants by 2025.
Natural Gas Power Plants
The Midland Cogeneration Venture in Midland, which was once owned by Consumers Power, still provides power to Consumers Energy. The company is planning to build more natural gas units to replace the coal plants that are closing.
In 2016, Consumers Energy bought the DPC Juniper power plant in Jackson, Michigan. It was renamed Jackson Generation Station and can produce 540 megawatts of power. In June 2023, Consumers Energy also bought the Covert Generation Station, which can produce 1,176 megawatts.
Consumers Energy also uses natural gas and oil "peaking units." These plants can quickly start up to provide extra power when electricity demand is very high. Examples include the Zeeland Generating Station and Karn 3&4 Generating Station.
Natural Gas for Homes and Businesses
Consumers Energy is a major provider of natural gas in Michigan. They deliver about 373 billion cubic feet of natural gas each year to homes and businesses. The company buys all the natural gas it provides to its customers. They serve over 1.7 million customers through more than 27,000 miles (43,452 km) of pipelines.
Electric Vehicles
In early 2018, Consumers Energy teamed up with General Motors (GM) to create "smart charging" technology for electric vehicles. Consumers Energy plans to use over 100 electric vehicles from GM themselves.
They are testing new charging technology that lets car owners plug in their electric cars. The charging then automatically waits until nighttime, when energy is cheaper and less in demand. Consumers Energy is also investing $7.5 million to help build more electric vehicle charging stations across Michigan.
Helping the Community
Consumers Energy gives about $10 million each year to nonprofit groups in Michigan. This money comes from grants, employee donations, and company giving. They have helped raise over $1.8 million for United Way's campaigns in Michigan. They also encourage their employees to volunteer.
The company works to support early childhood development and education in Michigan. They have also received awards for their efforts to promote environmental education.
In 2013, The Salvation Army gave Consumers Energy the William Booth Award. This was to recognize their long history of helping others and their leadership in the PeopleCare program. This program helps people with their energy bills, and it has provided $27 million in bill credits since it started.
Working with Leaders
Consumers Energy leaders often work closely with business groups and government officials in Michigan. For example, Garrick Rochow, the President and CEO, is on the board of directors for important energy groups like the American Gas Association.
Another leader, Brandon Hofmeister, helps advise the governor on energy and climate policy. He also leads Consumers Energy's charitable efforts. Consumers Energy supports groups that work to improve Michigan's economy. They also contribute to political campaigns to support leaders who understand the energy industry.
