The Michigan Public Service Commission is currently debating if it's a cost-saving decision for Consumer Energy's customers to end one of its nuclear power purchase contracts.
The commission has been embroiled in several meetings to discuss Consumers Energy's plan to terminate a 15-year contract with Entergy Corp.
Consumer Energy’s desire to terminate the contract comes after its announcement that the Palisades Nuclear Power Plant will shut down in 2018.
The original contract allowed Consumers Energy to purchase nearly the entirety of the power Palisades generates until 2022.
Consumer’s Energy has proposed that it will recover the $172 million buy-out payment option through their customers’ utility rates.
Consumer’s Energy claims its customers would save between $54 million and $1.1 billion if the company is allowed to end its contract early—regardless of the utility charges for the buy-out payment.
The commission will decide on Consumers' proposal by August.
Correction: An earlier version of this story reported that the decision was based on a contract between the Michigan Public Service Commission and Consumer's Energy. The contract is between Consumer's Energy and Entergy Corp.
