Jun. 7--A pair of out-of-state companies plan to spend $1.3 billion to build a coal-fired power plant in Midland, according to a report in the Midland Daily News.

New Jersey-based LS Power and Houston-based Dynegy have formed a joint venture called Mid-Michigan Energy that would construct a 750-megawatt plant. The project is expected to take about six years to complete, including two for permitting and approval p rposes and another four for construction, according to a spokesperson for LS Power. Founded in 1990, LS Power is an investment and asset management firm focused on the power industry. Dynegy is a wholesale power producer that provides services to utilities, cooperative, municipalities and other energy companies in 15 states in the Midwest, the Northeast and on the West Coast.

Last year, the Michigan Public Service Commission released a study on the need for an increase in the state's electric generation capacity. The Capacity Needs Forum report recommended that Michigan consider building at least one more coal-fired power pl nt by 2012 to meet the growing demand for electricity. There are 20 coal-fired plants in Michigan. The nation's energy companies plan to build more than 150 coal-fired plants around the country during the next decade. In Michigan, coal-fired generation accounts for 58% of the electric mix A report by the North American Electric Reliability Council earlier this year said domestic demand for electricity is increasing at a rate that's three times faster than resources are being added to the grid.

In addition, the U.S. Department of Energy's Energy Information Administration predicts electricity sales will increase 45% by 2030. Contact ALEJANDRO BODIPO-MEMBA at 313-222-5008 or abodipo@freepress.com.