LINCOLN — The Michigan Public Service Commission on Friday rejected an application from Consumers Energy to terminate a power purchase agreement with National Energy of Lincoln, a biomass plant based in the Northeast Michigan town.

The early termination would have resulted in the closure of the plant on May 31, the commission said in a news release.

Consumers applied in January for a third amendment to its long-running agreement with the plant, proposing early termination of a past amendment that extended to 2027 the agreement for Consumers to purchase the plant’s 18 megawatts of electricity.

Consumers proposed replacing the plant with a 33.6-megawatt solar facility, but testimony given to the commission indicated that replacing the plant would require large purchases from the electricity market.

The Midwest Independent System Operator, a regional transmission organization in Michigan, also warned of tightening energy supplies, which concerned the commission.

The commission rejected the application for early termination, as Consumers indicated it would turn to alternative and volatile electricity markets to replace energy output lost by the plant’s shutdown.

“Consumers Energy appreciates the Commission’s consideration of its power purchase agreement amendments,” Tracy Wimmer, media relations specialist of Consumers Energy, said in an email to The News. “The Company will continue its efforts to ensure reliable and affordable electric service for customers and will continue to work collaboratively with the Commission to achieve these goals.”

Consumers Energy also attempted to terminate its agreement with a Cadillac biomass plant and replace it with a solar facility, but the commission also rejected that proposal.