Hemlock Semiconductor Hemlock Campus
Large load · 12334 GEDDES RD., P.O. BOX 80, Hemlock, MI
Hemlock Semiconductor makes hyper-pure polysilicon at its Hemlock, Michigan, campus near Saginaw, for computer chips and solar cells. The company describes itself as the largest electricity user in Michigan, and in 2018 Consumers Energy said it takes about 7% of the electricity the utility provides statewide. Michigan law has twice granted it special electricity pricing arrangements, and the company shifts part of its process to evenings and weekends to avoid afternoon peaks. No source gives a metered or contracted megawatt figure.
Overview
Hemlock's own fact sheet calls it the largest electricity user in the State of Michigan. In 2018 Consumers Energy said Hemlock Semiconductor uses 7% of the electricity it provides statewide. The utility argued that without a lower rate Hemlock might build its own natural gas plant and leave the grid, which could raise costs for remaining customers; opponents said other customers would subsidize the lower rate.
Profile
- State electricity-price legislation
- In August 2008 Governor Granholm signed legislation giving a Michigan Business Tax credit based on the difference between a guaranteed cost per kilowatt hour and the Public Service Commission staff's projected cost of electricity, covering up to 1.445 million megawatt hours annually, to encourage a billion-dollar expansion. In October 2018 Governor Snyder signed a bill giving the company a break on its Consumers Energy electricity bills.
- Shifting load away from the afternoon peak
- In 2017 Hemlock bought a data analytics platform to see how it was using energy. Instead of energizing reactors and raw materials with electricity to create polysilicon rods in the afternoon, when power demand is high, it now runs more of the process in the evenings and on weekends. A company executive said this lets Consumers Energy reduce its peak demand reserves and lowers variability on the grid.
Facility
- Activity
- Polysilicon used to make computer chips
- Industry
- Manufacturing
- Site type
- Facility
- Operating status
- Operating
- Demand flexibility
- Shifts energizing of polysilicon rod reactors to evenings and weekends to reduce afternoon peak demand
Permits and agreements
- Agreement
- Michigan law giving Hemlock a lower Consumers Energy electricity rate
- Agreement
- Michigan Business Tax credit based on a guaranteed electricity cost, up to 1.445 million MWh annually
Related records
Timeline
- Aug 6, 2008
- Michigan enacted legislation tying a tax credit to guaranteed electricity cost for Hemlock's expansion
Granholm Signs Legislation Designed to Encourage Expansion of Dow Corning's Hemlock Semiconductor
- Oct 25, 2018
- Governor Snyder signed a bill lowering Hemlock's Consumers Energy electricity rate
New law gives solar panel parts manufacturer a break on its electric bill