LANSING, Mich. (WZMQ) – Upper Peninsula lawmakers, union leaders, and Cleveland-Cliffs executives are calling on state leaders to reverse a Michigan Public Service Commission (MPSC) proposal they say could devastate the region’s economy.
The proposal, part of case U-21813, would amend Upper Michigan Energy Resources Corporation’s (UMERC) renewable energy plan to comply with the state’s new clean energy law, Public Act 235 of 2023. The plan includes retiring 13 natural gas plants built just seven years ago and expanding renewable generation.
At a press conference in Lansing, State Representative Dave Prestin (R-Cedar River) said the decision would “jeopardize over a thousand good-paying jobs” at Cleveland-Cliffs’ Tilden Mine and saddle residents with higher energy bills.
“Starting next year, Cleveland-Cliffs could face $14,000 in daily surcharges, costs that would ripple across our entire region,” Prestin said.
Cleveland-Cliffs Vice President of Government Relations Patrick Bloom said the plan fails to recognize the U.P.’s unique energy needs.
“The U.P. solved a reliability crisis just a decade ago when we built these modern natural gas plants,” Bloom said. “They’re efficient, clean, and essential to keeping Tilden competitive. Forcing them offline early would put the mine, and thousands of ratepayers, in jeopardy.”
Tilden Mine employs about 900 workers with an annual payroll of roughly $200 million. Company officials say without legislative action, costs could rise by $5 million in 2026 and $6 million in 2027.
Union leaders and local lawmakers are urging the Senate to pass House Bills 4007 and 4283, which would allow the natural gas plants, known as RICE generators, to keep operating until 2049. Supporters say the bills provide a “bridge” until newer clean technologies, such as small modular nuclear reactors, become feasible.
Sen. Ed McBroom (R-Waucedah Township) said the issue affects not just miners, but schools, hospitals, and small businesses across the U.P.
“If we stick with the current law and go to an intermiten based resource generation or simply transmission, more transmission from Wisconsin, either way, we are facing a crisis.” McBroom said. “We’re asking to make sure that we have more time for planning and more time to mitigate these costs”
The Senate has only a few legislative days left this year to act before the surcharges begin on January 1.
