Viking Energy in McBain (GLC) in danger of closing

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TC Man
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Viking Energy in McBain (GLC) in danger of closing

Unread post by TC Man »

Looks like GLC could lose one of their biggest customers (and newer) in the near future unless some new regulation can be reversed. Viking will get 40% less for their electricity from Consumers which would pretty much mean doom. That and Consumers is the ONLY buyer of their power.


From 9and10 News.com:

Small, renewable power operations are now concerned after some big changes to Michigan’s Public Utility Regulatory Power Act.

This law has required large utility providers like Consumers Energy to purchase power from small renewable generators.

Now the Michigan Public Service Commission is lowering the rate that energy is sold at by 40 percent.

Companies like Viking Energy in McBain are scared.

“The utilities have continued to be on a lock on power generators unless they are compelled to purchase the power. So they have a must purchase obligation for small renewable generators like us so that operations still exists today,” says Thomas Vine, plant manager at Viking Energy.

But this law has now changed.

Viking Energy relies completely on Consumers Energy to buy their power.

“They have said numerous times that the rate payers are subsidizing us, which they have subsidized us some $300 million over the last 10 years and that’s just not true. We’re paid based on the actual cost to operate Consumers Energy’s actual fleet of coal plants and consumers actually calculated those numbers for us,” says Vine.

Vikings Energy says now they’re going to be paid 40 percent less than before.

“The rates that came out through the ruling last Tuesday aren’t high enough to even sustain our operation and I’m really concerned about the impact on the small community around here,” says Vine.

When we asked Consumers Energy about the change, they issued this statement saying “The federal law at the center of the PURPA discussion was established to address a national energy crisis nearly 40 years ago, since then the market has changed drastically and adjustments were needed to best meet the energy demands of today’s customers.”

“If things stay the way they are, I don’t see us being able to continue to operate the plant,” say Vine.

Viking Energy does plan to appeal the ruling.
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AARR
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Re: Viking Energy in McBain (GLC) in danger of closing

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Every year short line railroads lose on average 10% of their business. So they have to aggressively seek out new business to stay even and get ahead.
PatC created a monster, 'cause nobody wants to see Don Simon no more they want AARR I'm chopped liver, well if you want AARR this is what I'll give ya, bad humor mixed with irrelevant info that'll make you roll your eyes quicker than a ~Z~ banhammer...

GreatLakesRailfan
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Re: Viking Energy in McBain (GLC) in danger of closing

Unread post by GreatLakesRailfan »

AARR wrote:Every year short line railroads lose on average 10% of their business. So they have to aggressively seek out new business to stay even and get ahead.
I'm pretty sure that number is quoted for all industries, not just shortline railroads. It's interesting to see that number quoted for an industry whose customers would appear to be more captive than in an industry where the cost of switching vendors is much lower.
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Todd_F
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Re: Viking Energy in McBain (GLC) in danger of closing

Unread post by Todd_F »

I'd say Viking is in REAL danger of closing. That will be a bitter pill for the GLC to swallow as well.
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SousaKerry
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Re: Viking Energy in McBain (GLC) in danger of closing

Unread post by SousaKerry »

Is Viking the plant that burns all the railroad ties? If so let them close then maybe we can start getting good relay ties again.
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AARR
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Re: Viking Energy in McBain (GLC) in danger of closing

Unread post by AARR »

Yes
SousaKerry wrote:Is Viking the plant that burns all the railroad ties? If so let them close then maybe we can start getting good relay ties again.
PatC created a monster, 'cause nobody wants to see Don Simon no more they want AARR I'm chopped liver, well if you want AARR this is what I'll give ya, bad humor mixed with irrelevant info that'll make you roll your eyes quicker than a ~Z~ banhammer...

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AARR
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Re: Viking Energy in McBain (GLC) in danger of closing

Unread post by AARR »

Other business that has a questionable future are the wood chips from McBain which is rumored to go to Grayling after the new plywood mill opens and the coke transload in Cadillac after the new iron mill opens in Elmira or Mancelona (it will not need coke for its steel making process).
PatC created a monster, 'cause nobody wants to see Don Simon no more they want AARR I'm chopped liver, well if you want AARR this is what I'll give ya, bad humor mixed with irrelevant info that'll make you roll your eyes quicker than a ~Z~ banhammer...

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