Consumers Energy, one of Michigan’s largest utility providers, has unveiled ambitious plans to reshape the state’s energy landscape over the next two decades. The company’s newly announced strategy, detailed in a series of press releases and interviews throughout March 2026, centers on constructing two new natural gas plants in Bay and Genesee counties while dramatically expanding its portfolio of renewable energy sources such as solar, wind, and battery storage. The move comes as Michigan grapples with surging electricity demand, driven in part by the rapid rise of energy-hungry data centers and the ongoing push for economic growth across the state.
According to Consumers Energy, the two natural gas plants will be located on existing company property: the former coal-fired Karn Generating Facility on Saginaw Bay in Bay County, and an industrial site in Thetford Township, Genesee County, just north of Flint. Repurposing these sites is a deliberate choice, company officials say, as it allows them to reduce land impacts, contain construction costs, and leverage existing grid infrastructure. "We announced that we will be building two new natural gas plants on current facilities that we already own that are being repurposed, and by doing that, it’s the most cost effective, cleanest way that we can provide reliable energy to our customers," explained Matt Johnson, Media Relations Specialist at Consumers Energy, to WNEM.
This strategy is part of Consumers Energy’s Integrated Resource Plan (IRP), a roadmap every regulated utility in Michigan is required to submit every five years, outlining how it intends to meet the state’s energy needs for the next 20 years. The company plans to file its updated IRP with the Michigan Public Service Commission in June 2026. The commission’s review and approval process could take up to a year, but company leaders are confident that their approach aligns with both state regulations and customer needs.
At the heart of the plan is a commitment to an "all-of-the-above" approach, combining traditional and renewable resources to ensure grid reliability. Consumers Energy’s president of electric supply, Sri Maddipati, emphasized, "Affordable, secure and reliable energy remains a cornerstone of Michigan's future, and this plan positions the state to support new homes, businesses and industries with confidence, lowering customer costs for all." The company is targeting 13 gigawatts of new renewable generation from solar, wind, and battery storage, alongside the 1.5 gigawatts to be supplied by the new natural gas plants.
One of the key drivers behind this investment is the anticipated surge in electricity demand. As Katie Carey, a spokesperson for Consumers Energy, explained to the Detroit Free Press, "We are forecasting increased demand and need for increased supply to maintain reliable service for all customers — whether that growth comes from new families, expanding businesses, relocating industries, or increased energy use from those we already serve." High-tech industries, especially data centers, are expected to play a significant role in this rising demand.
Consumers Energy’s plan also aims to address public concerns over Michigan’s high electricity rates. The state’s residential electricity rates have been climbing, and many residents have voiced anxiety about the potential cost impacts of new infrastructure. According to WNEM, Johnson assured customers that the new natural gas plants would not increase their bills: "The plan that we’re presenting drives costs down for customers by taking into consideration how data centers are going to paying for a lot of those infrastructure costs." The company projects that investments in Bay and Genesee counties will boost the local tax base by nearly $19 billion, a figure that could have far-reaching effects on regional economies.
Job creation is another touted benefit of the plan. Consumers Energy estimates that thousands of construction jobs and hundreds of permanent positions will be created as a result of investments in both natural gas and renewable energy infrastructure. WILX reported that the company sees these projects as vital not only for energy reliability but also for supporting Michigan’s workforce and economic growth.
Yet, the strategy is not without its critics. Environmental advocates, like Charlotte Jameson of the Michigan Environmental Council, have raised concerns about the reliance on new natural gas facilities. "At a time when our residential electricity rates are so high, it's really concerning that Consumers is proposing to build two new gas plants," Jameson told the Detroit Free Press. She warned that unless the Michigan Public Service Commission changes how rates are set, residential customers could bear the brunt of the costs for these new plants. Jameson also questioned the feasibility of meeting Michigan’s clean energy law, which requires 100% clean energy by 2040, given the current lack of carbon capture technology for the proposed natural gas units.
Under Michigan’s clean energy law, natural gas can count as "clean energy" if paired with carbon capture systems that either store carbon emissions underground or use them in industrial processes. However, Consumers Energy has confirmed it is not planning to add carbon capture to the new plants at this time. Carey stated, "Because they operate for short periods and provide peaking support, adding carbon capture does not provide meaningful customer or system value at this time." She did note, however, that the company may consider adding such systems in future IRPs, depending on technological advancements and regulatory requirements.
Senate Energy Chairman Sean McCann, D-Kalamazoo, also weighed in on the debate, acknowledging the pressure Michigan families face from high energy costs. "I'm working on efforts in the Senate to make energy both less expensive and better for the environment," McCann said. "I’m focused on bringing affordable energy to Michigan families." The challenge, he and others recognize, is balancing the need for reliable, affordable electricity with the state’s ambitious climate goals.
The new gas plants are designed as "peaking" units, intended to run only during periods of high demand when renewable sources—such as wind and solar—are unable to meet the grid’s needs. This approach, Consumers Energy argues, enhances reliability while supporting the broader transition to renewables. The company retired two coal-fired units at the Dan E. Karn Generating Plant in 2023, and the new natural gas plants are expected to come online around the time existing natural gas and oil units at the site are retired in 2031.
Local officials have welcomed the investment. Hampton Township Supervisor Terri Close remarked in a Consumers Energy press release, "While this project will certainly strengthen our local economy, its impact reaches far beyond Hampton Township and Bay County. By taking advantage of existing infrastructure, this project shows Consumers Energy's long–term commitment to provide reliable, affordable energy that will benefit families and businesses across Michigan."
As Consumers Energy prepares to submit its IRP this June, the outcome will hinge on the Michigan Public Service Commission’s review and the evolving debate over how best to power Michigan’s future. For now, the utility’s plan reflects a pragmatic blend of tradition and innovation, aiming to keep the lights on—and costs down—in a rapidly changing energy landscape.