CLEVELAND, OH-- Cliffs Natural Resources has signed a 20-year agreement with WEC Energy Group to provide a long-term, reliable, and affordable source of power for the Tilden Mine.
If approved, the new agreement would result in 170 megawatts of new generation across two U.P. sites. Officials say the plan allows for the retirement of the Presque Isle Power Plant by 2020 and is expected to save money for Upper Peninsula customers.
Operation of the new generating facilities is expected to address power reliability concerns with the plant’s closure. Officials say ratepayers will continue to be protected from additional System Support Resource payments associated with PIPP’s operation until it’s retired.
“Cliffs Natural Resources is pleased to continue our partnership with Governor Snyder’s administration toward providing long-term resolution of the Upper Peninsula’s electric reliability concerns,” said Lourenco Goncalves, chairman, president and chief executive officer of Cliffs. “This agreement with WEC Energy Group will provide Cliffs’ Tilden Mine and the ratepayers of the Upper Peninsula with a clean, stable and cost-effective source of electric power. Cliffs views this agreement as critical to sustaining and enhancing the long-term competitiveness of our Tilden Mine and we look forward to working with the state of Michigan and WEC Energy Group to ensure timely regulatory review and approval.”
If the plan is approved, the new facilities are expected to start running in 2019.
