Michigan’s Upper Peninsula continues to stare down an energy crisis and two U.P. lawmakers are leading the charge to stop it before it’s too late.
On Wednesday, the House passed a bipartisan plan to keep the region’s 13 Reciprocating Internal Combustion Engine generators running through their full lifecycle, ending in 2049. House Bills 4007 and 4283, proposed by Reps. Dave Prestin, R-Cedar River, and Karl Bohnak, R-Deerton, passed with overwhelming support. Both bill will now head to the Senate.
The bills aim to protect the U.P.’s fragile grid by reclassifying the RICE unit, natural gas generators as clean energy, exempting them from Michigan’s new energy mandates. Without that change, the state would be forced to shut down the generators years before their projected end-of-life, triggering steep price hikes and threatening the U.P.’s industrial base.
“Without reliable, affordable energy provided by the RICE units, the Upper Peninsula will be forced to deindustrialize, which will result in drastic depopulation,” Bohnak warned during floor debate.
At the heart of the issue is the Tilden Iron Mine, America’s second-largest iron ore operation, which uses 60% of the U.P.’s electricity. Without the RICE units, Tilden faces a staggering $15 million monthly surcharge by 2040, before even flipping on a light switch.
“No business can survive that,” said Prestin. “If Tilden closes, the ripple effects will devastate not just the U.P., but Michigan’s entire industrial economy. Steel mills, auto plants, and thousands of union jobs across the state are on the line.”
The RICE generators were installed in 2019 after the Presque Isle and Shiras coal plants were decommissioned. Since coming online, they’ve helped cut the U.P.’s carbon emissions by more than 70%.
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Still, without intervention, U.P. residents and employers are set to absorb crushing energy bills. Monthly household costs could jump by $80 to $90. Small businesses could face $3,500 in new charges. Large manufacturers would be hit with more than $470,000 in monthly fees.
“My old gas station wouldn’t have survived that,” Prestin added. “And neither will the U.P. if we don’t fight for the right to exist.”
Supporters say the bills strike a practical balance between environmental progress and economic survival. Lawmakers from both parties are now calling on the Senate to act swiftly, before the cost of delay becomes irreversible.