Jackson, MI, Dec. 5, 2005 — CMS Energy announced that it plans to sell the Palisades nuclear power plant and will establish a competitive bid process expected to lead to a sale in 2007.
The process will include a long-term power purchase agreement with the new owner to retain the benefits of the low-cost nuclear generation for Consumers Energy’s 1.8 million electric customers.
The Palisades plant, located near South Haven, Mich., is the only operating nuclear plant owned by Consumers Energy, CMS Energy’s principal subsidiary. It 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. CMS Energy has filed with the U.S. Nuclear Regulatory Commission (NRC) seeking to renew the license for 20 additional years.
Concentric Energy Advisors (CEA) has been retained to serve as the auction manager and financial adviser for the sale of Palisades. CEA will provide strategic support throughout the transaction and regulatory approval process.
The NRC will have to approve the transfer of the plant’s operating license to a new owner. The Federal Energy Regulatory Commission and the Michigan Public Service Commission (MPSC) also will review various elements of any sale. The MPSC also will have an ongoing role in approving any power supply agreements resulting from the sale.