Quest Final - Consumers Energy

SPRING 2013
WORKING TO CREATE A SUSTAINABLE COMPANY — THAT’S OUR PROMISE TO MICHIGAN
Five Channels
hydroelect ric
plan t
Fullfilling
Our Promise
Y
OU MAY HAVE heard the company has adopted a breakthrough
goal to improve upon second quartile
performance in sustainability. Perhaps
you’re wondering what “sustainability”
means?
Sustainability is a broad concept
with many definitions. But if we ran into
one another in the elevator, I would tell
you that sustainability is about aligning
business strategies with opportunities
to improve the environment and society.
We already do many things each day
that are consistent with sustainable
principles. A great example is our commitment to provide safe, reliable and
affordable energy. This commitment
single-handedly provides a quality of
life we can’t imagine doing without.
Additionally, the Consumers Energy Foundation and our
employee volunteerism help so
many people in the communities we serve. The VIP program
grants and the new Caring for
Community grants are great
Nancy Popa
examples of how the company continues to support community
engagement.
It goes without saying that we comply with environmental regulations. But
there is more we can do that is good for
the environment and the business. For
example, we’ve minimized our hazardous waste generation and disposal for
the last 20 years. This not only saves the
company money on disposal costs but
Research shows companies that operate ethically
and in a manner that’s
environmentally sound
and socially responsible
out-perform their peers in
the long haul.
also protects the environment. We need
to encourage our employees to think
about these win-win opportunities and
make sure they happen.
So, why have we decided to make
sustainability a breakthrough goal?
Simply put, it makes good business
sense. Research shows companies that
operate ethically and in a manner that’s
environmentally sound and socially
responsible out-perform their peers in
the long haul.
Sustainable business practices can
help a company reduce risks, manage
costs, grow revenues, and build its
brand while improving customer value.
That’s because those companies tend
to weigh more factors, gather more
diverse viewpoints and promote transparency when making decisions.
Following these simple practices
consistently over time increases the
likelihood of a company making good
choices on almost any issue. We’re
fiercely proud of our success over the
past 125 years and believe embedding
the philosophy of sustainability into our
culture will ensure our success well
into the future.
To learn more about our journey to
sustainability, please visit our sustainability iConnect page under the “My
­Company” tab.
NANCY POPA
Manager, Long-term Strategy
www.ConsumersEnergy.com/sustainability
Dale Nickell, hydro supervisor at the Five Channels headquarters,
holds the facility’s 2012 Ethics in Action award. Other Five Channels
employees (from left to right): John Booms, certified hydro operator;
Clyde Field, general repair worker A; Ryan Jankoska, combination
general repair worker A/certified hydro operator; Terry Prior,
general repair worker A; Donald Baker, hydro superintendent.
Right
THE
Stuff
Historic Five Channels
honored for ethical approach
to producing clean energy
the compliance program and create a culture of
integrity.
That’s a fancy way of saying the Five Channels
crew — which is located near Oscoda but is responsible for manually operating dams along a roughly
50-mile stretch of the Au Sable — generally works
well together and tries to do the right thing for one
another and for customers.
EMPLOYEES IN ACTION
The tight-knit bunch regularly discusses ethics
issues as a group, and has worked to create an inclusive work environment where employees are more
HE FIVE CHANNELS Hydroelectric
aware of comments or “humor” that may offend
headquarters manages six dams on the
co-workers. Management and union also commuAu Sable River that pump out clean,
nicate effectively to ensure proper rates of pay and
renewable electricity each day.
expenses for employees who travel between the
In many ways, the facility’s 15
dams routinely.
employees follow in the footsteps
“When you have a small staff,
“When you have a small
of the Consumers Energy employyou
rely more on everyone doing
staff, you rely more on
ees who first harnessed the river in
their part and generally getting
everyone doing their part along,” Nickell said. “It takes a
the early 20th century. The “green”
power they produce is both a link to and generally getting
good union-management working
the company’s proud past and a key along.” – DALE NICKELL
relationship which we have. And
component of its future.
it takes everybody looking out for
“It’s a legacy thing,” said Dale Nickell, hydro
everybody else.”
operations supervisor at the Five Channels headFive Channels management and employees were
quarters. “There’s lot of pride in working at the
honored at an Oct. 18 Ethics in Action Awards cerhydros because they have been here so long. The
emony in East Lansing, nearly a four-hour drive
crews want to see them here for another 100 years.
from the dam.
There’s pride in keeping them going and passing
The facility also earned the opportunity to select
them down to the next generation.”
a local nonprofit organization to receive a $5,000
The Five Channels crew recently added to the
grant from the company. Five Channels chose Hale
location’s legacy by earning the grand prize among
Area Fish, a nonprofit that supports food banks and
facilities in the company’s 2012 Ethics in Action
helps provide basic needs such as transportation
Awards.
and help paying for prescriptions and utility bills.
The annual awards, which began in 2006, recSaid Nickell: “The fact this location, which is sort
ognize the highest commitment to compliance
of tucked away in the company, got the chance to
and ethical standards. Five Channels was selected
give a donation to a nonprofit organization … that
for the inaugural “facility grand prize” because
was the biggest thing our employees got out of it.”
of its employees’ collective efforts to reinforce
T
Clean Energy Legacy Dates to Company’s Earliest Days
C
ONSUMERS ENERGY is not new
to renewable energy.
The utility has been in the
business since the early 1900s when
it began building hydroelectric dams
to capture the power of Michigan’s
rushing rivers. Hydropower minimizes
impact on the environment because
the generating facility runs on a
renewable source and produces no
emissions.
“You can’t get much greener than
this,” said Dale Nickell, hydro operations supervisor at the Five Channels
headquarters, which oversees six
dams on the Au Sable River.
In all, Consumers Energy operates 13 hydroelectric plants along
five Michigan waterways. The hydros
were built between 1906 and 1935
and have a combined generating
capacity of about 130 megawatts,
enough to supply electricity to about
70,000 customers.
Many of the hydroelectric plants
are located near campgrounds, boat
launches, picnic areas and other recreational facilities. They are popular
spots for canoeing, fishing, watching
birds and exploring nature.
Winning
Ways
Five Channels was
the grand prize
facility winner at the
2012 Ethics in Action
Awards. Here’s a
list of the remaining
winners:
FACILITIES:
Macomb Service
Center – Finalist
North Kent Service
Center – Finalist
INDIVIDUALS:
Dave Walter
Fuel-handling
production
supervisor,
Karn-Weadock
Hank Hoffman
General manaer,
TES Filer City Station
William Gale
Master mechanic,
Saginaw
Service Center.
Dennis Wright
Senior field planner,
Royal Oak
Terrance Daniels
Senior engineer,
Saginaw
Patricia Tremble
Customer energy
specialist, Royal Oak
Linda Sims
Executive director of
community services,
Saginaw
Lauren Oien
Fleet maintenance
field leader,
Traverse City
Cheryl Fannon
Administrative
assistant,
Grand Rapids
Did You
Know
In the early 1900s,Au Sable River survey
crews identified sites for future hydro­
electric facilities.
CMS Energy ranked
414th in Newsweek’s
2012 Green Rankings of
the 500 biggest publicly
traded companies in
the U.S. That marked
an improvement of 65
spots over the previous
year.
Among utilities, the
Consumers Energy’s
parent company
ranked 11th of 27.
SPRING 2013
Quest
Whiting
employees
clean the
beach as
part of a
community
activity.
Company Earns
Environmental
Partner Awards
M
ICHIGAN’S Department of Environmental Quality (MDEQ) honored Consumers Energy with two Neighborhood Environmental Partner (NEP)
awards.
The NEP award recognizes facilities in
Michigan that partner with community
organizations to improve the environment by implementing ongoing environmental projects.
Consumers Energy earned the honors
for an appliance recycling program, and
for the J.R. Whiting Plant’s ongoing environmental commitment.
The company’s appliance recycling
program (ARP) was a joint effort to
collect window air conditioners and
dehumidifiers in West Michigan. The
collaboration included the Holland Board
of Public Works (Holland BPW), Zeeland
Board of Public Works, Grand Haven
Board of Light, Franklin Energy and
Power, and Louis Padnos Iron & Metal
Company.
Drop-off events were held in Grand
Rapids and Holland.
The Whiting plant won its eighth consecutive NEP award, and is the only
facility in Michigan to earn the honor
each year the MDEQ has offered it.
Whiting hosted 55 students from Ann
Arbor’s Green Adventures Summer
Camp for environmental education and a
beach cleanup along the shores of Lake
Erie. Employees and volunteers also
continued to care for a population of
American Lotus, a one-time endangered
flower that flourishes throughout the
plant’s intake waters.
Wind Farm
Powers Up
C
ONSUMERS ENERGY recently
celebrated the completion of its
first wind farm, the Lake Winds Energy
Park ®, in Mason County.
The wind farm is comprised of 56 turbines spread over thousands of acres of
land, and is capable of generating up to
100 megawatts of electricity. The Lake
Winds Energy Park ® began operations
in late 2012.
The $235
million project is
projected to provide an estimated
$33 million in ecoLake Winds nomic benefits for
Energy
the county.
Park began
The utility
operating in
also is developing
November.
the Cross Winds
Energy Park ®,
a 150-megawatt project in Tuscola
County. The company has accepted bids
from manufacturers hoping to supply
wind turbines, and is studying wind
patterns and the local environment
and wildlife to make design and siting
decisions.
Together, the two facilities will help
Consumers Energy harvest the state’s
wind for electricity and reach Michigan’s 10 percent renewable energy set
by Michigan’s 2008 energy law.
When both wind farms are operational, about 8 percent of the electricity that Consumers Energy supplies to
customers will come from renewable
sources.
Employees can learn more about
our company’s sustainability
efforts by visiting the
Sustainability portal on iConnect.
WORKING TO CREATE A SUSTAINABLE COMPANY – THAT’S OUR PROMISE TO MICHIGAN
K
ris and Jason
Spaulding have
aspirations beyond
simply brewing great beer.
The owners of Brewery
Vivant, a Consumers Energy
customer and two-year-old
microbrewery and pub in
Grand Rapids, consider sustainability as critical to their
success as the high-quality
suds.
That’s why the couple
weighs the environmental and
societal impact of every batch
of beer that’s packaged or
pumped to the taps in the historic building that’s home to
their operation in downtown
Grand Rapids.
“Sustainability has been
my passion as long as I can
remember,” Kris Spaulding
said, adding with with a laugh,
“I impact my husband’s passions too.”
Kris Spaulding earned a
degree in natural resources
from the University of Michigan and worked on the Design
for Environment team at Herman Miller, a Zeeland-based
office furniture manufacturer.
When she and her husband decided to open Brewery
Vivant — which produces a
wide variety of beers inspired
by French and Belgium brews
— there was little question the
business would employ sustainable practices.
They started with the building, an 80-year-old brick and
exposed wood beam structure in the city’s resurgent
East Hills neighborhood that
once served as a funeral home.
The space that now houses the
brewery was a horse livery, and
the current pub is in the original chapel.
Kris Spaulding
and her husband
Jason run the
Brewery Vivant
in Grand Rapids
using sustainable
practices.
Brewery Vivant believes it is the
first LEED-certified commercial
microbrewery in the world.
‘Green’ Beer
Grand Rapids-based Brewery Vivant
strives for sustainable success
CUSTOMER PROFILE
The buildit is the first
“Sustainability has
ing was
LEED-certibeen my passion as long fied commerdormant for
as I can remember.”
about five
cial microyears and
brewery in the
– KRIS SPAULDING
in need of a
world.
major overhaul, but it offered
Next up was embedding
the ambience that Brewery
sustainable practices into the
Vivant needed.
brewery’s operations. Brewery
“A lot of our inspiration
Vivant’s strategies include:
comes from the monasteries
• Reducing water use by using
in Belgium and France,” Kris
a “closed-loop” brewing sysSpaulding said. “This was like
tem that recaptures cooling
walking into a chapel with
water from the heat exchange
the high arches and monasto use for the next brew.
tic look. We wanted it to be an
• Packaging their beer in cans
experience.”
rather than bottles. The cans
The Spauldings renovated
protect the quality of the
the building according to
beer and are much lighter,
Leadership in Energy and
meaning less fuel is used
Environmental Design (LEED)
during transport. People also
standards, including a highly
are more likely to recycle
efficient heating and coolaluminum.
ing system, and earned silver
• Using as much “green”
certification from the U.S.
energy as possible. The
Green Building Council in
Spauldings purchased renew2012. Brewery Vivant believes
able energy certificates
Sprucing Up ‘The State’
COMPANY GRANT HELPS RESTORE
TRAVERSE CITY’S HISTORIC STATE THEATRE
W
HEN HE MOVED to
Traverse City in 2003,
Academy Award-winning director Michael Moore
felt terrible every time he drove
downtown by the State Theatre.
Hit by two fires since it
opened in 1916, the theater was
an eyesore.
But thanks in part to a recent
$125,000 grant from Consumers
Energy and strong volunteers
in the community, the theater is
enjoying a renaissance.
“The theater is a vibrant
community center that is better
than new, and ready to stand
another 100 years, a place
where future generations can
come and enjoy the magic of the
movies together,” Moore said.
The Traverse City grant is
part of $1.25 million in matching
grants offered to 10 community
projects throughout Michigan
as part of Consumers Energy’s
125th anniversary celebration.
The money was used to renovate the exterior of the theater,
including replacing all of the red
panels and stainless steel columns originally installed after a
1948 fire destroyed the theater.
David Mengebier, president
A wind turbine
nears completion
in Mason County.
(RECs) to offset the brewery’s
energy use during the first
two years of operation, and
are working with a consultant to determine the viability of powering the brewery
with solar, or another form or
renewable energy.
• Working to tap sources
within 250 miles for 50 percent of the food they serve
and 25 percent of the ingredients in their beer such as
hops and grains.
• Working to send zero waste
to landfills. The brewery
composts, recycles or reuses
nearly all of its food and
manufacturing waste. Spent
grain and yeast, for example,
go to a local cattle farmer and
fry oil to a local biodiesel car
owner.
• Donating 10 percent of their
profits to charity, supporting
local causes.
The Spauldings pursue sustainability largely for environmental and social reasons. But
there’s also a good business
case for adopting the principles, Kris Spaulding said.
“People who are interested in
sustainability definitely appreciate supporting a business
with similar values to what
they have,” she said. “We do it
because it’s the right thing to
do, and to be a good neighbor.”
Consumers Energy
employees gather outside
of the State Theatre.
of the Consumers Energy Foundation, applauded Moore and
the Film Festival for the restoration project.
“This great theater has been
a catalyst for attracting new
businesses and restaurants to
the downtown area,” Mengebier said. “Consumers Energy
has been honored to help preserve historic buildings like the
State Theatre during our 125year record of service to the
people of Michigan.”
The Skinny on Sustainability
Answers to frequently asked questions
Why is the company adopting
sustainability practices?
What is sustainability?
n To us, sustainability means operating with a fundamental commitment
to leave our company, state and world
better than we found them. Pursuing
sustainability requires viewing corporate and individual decisions through a
broad lens to consider how they impact
not only financial performance, but people and the planet as well.
n It’s good business. Research shows
companies who operate ethically and
in a manner that’s environmentally
sound and socially responsible out-perform their peers in the long haul. That’s
because those companies tend to weigh
more factors, gather more diverse viewpoints and promote transparency when
making decisions. Following these
simple practices consistently over time
increases the likelihood of a company
making good choices about almost any
issue. We’re fiercely proud of our success over the past 125 years. Creating a
sustainable culture will help ensure our
success decades well into the future.
How can I learn more?
n Visiting the sustainability portal
on iConnect, where you’ll find more
answers to frequently asked questions,
updates on our progress, and sustainability related news.