by Bruce Goodman 

The Detroit Edison Company has filed for ex parte approval by the Michigan Public Service Commission (MPSC) of its 200 MW power purchase agreement (PPA) with Gratiot County Wind LLC.  The contract includes an option for Detroit Edison to purchase either a 59.2 MW or a 89.6 MW share of the project.  The twenty year PPA, with pricing of $94.43/MWh, is the result of the 2009 RFP process which had 35 initial proposals, later narrowed to seven potential suppliers.  (The MPSC has now approved recently submitted PPAs for a total of 20.2 MW with WM Renewable Energy and L’Anse Warden Renewable Energy.)  If the PPA is not approved by October 15 it may be terminated.  Detroit Edison’s option to purchase expires December 17, 2010.

Tweet This Post

by Bruce Goodman 

In May the Michigan Department of Natural Resources and Environment (MDNRE) denied the air permit application for a 600 MW coal-fired power plant proposed by Wolverine Power Supply Cooperative for Rogers City. Now that decision has been appealed by Wolverine to the Missaukee County Circuit Court. The Petition and Complaint allege: improper imposition of a carbon dioxide emission standard; discriminatory and selective approval of coal-fired projects; and a predetermined plan to favor one coal-fired project over another.

Tweet This Post

by Bruce Goodman 

What does it take for a state (that is not California) to have an energy policy?  The question is timely because elections are approaching and one would hope the candidates would address all the important issues.  But will anyone take a public stand on unresolved energy issues: increasing the renewable portfolio standard percentage; new coal-fired generation; feed-in tariffs; standby rates; recommendations of the Great Lakes Wind Council or the Climate Action Council?  I suspect not.  Thus come January we are likely to continue with state energy policy “on the fly”, with a dash of gridlock and pinch of skepticism.  Let the Feds make the hard decisions on GHG regulation and renewable energy standards.  Term limits have done their job—left Michigan with a legislature with little institutional memory and little legislative expertise to address complicated issues such as energy.  Hey, how about energy platforms and energy debates in all the state races so that we can get these issues on the table.  Watt would be wrong with that?

Tweet This Post

by Bruce Goodman

DTE Energy is seeking Michigan Public Service Commission (MPSC) approval of two 20-year power purchase agreements and the associated renewable energy credits.  The weighted average price for the 3.2 MW landfill gas project in Orion and the 17 MW biomass project in L’Anse is $98.94/MWh.  This price is below the level assumed in the DTE Renewable Resource Plan.

Tweet This Post

 by Bruce Goodman

 DTE Energy is seeking Michigan Public Service Commission (MPSC) approval of two 20-year power purchase agreements and the associated renewable energy credits.  The weighted average price for the 3.2 MW landfill gas project in Orion and the 17 MW biomass project in L’Anse is $98.94/MWh.  This price is below the level assumed in the DTE Renewable Resource Plan.

Tweet This Post

by Bruce Goodman

Consumers Energy has obtained the approval of four power purchase agreements from the Michigan Public Service Commission. The 20- year contracts are for projects with:

•  John Deere Wind Energy for a 90 MW wind project in Sanilac County.
• John Deere Wind Energy for a 59.4 MW wind project in Huron County.
• John Deere Wind Energy and Great Lakes Wind LLC for a 81 MW wind project in Lenawee County.
• Waste Management Renewable Energy for a 12.8 MW landfill gas project in Macomb County.

When the 243.2 MW of renewable energy is on line in 2012, more than 6.2 percent of the utility’s demand will be served by renewable energy generation.

Tweet This Post

by Bruce Goodman

The MPSC staff has made a determination that the 70 MW (net) coal-fired electric generating plant being proposed by the Holland Board of Public Works is not needed. The report found that the municipal utility has not explored sufficient alternatives to show that a new coal plant was the best way to meet its current and future load. It also found that the demand growth projections were overly optimistic. The report suggested that Holland consider making purchased power a larger portion of its supply portfolio. Now the Michigan Department of Natural Resources and Environment will weigh the report in deciding whether to grant an air permit to the project.

Tweet This Post

by Bruce Goodman

The MDNRE has denied Wolverine Power Supply Cooperative’s air permit application for a new 600-megawatt power plant in Rogers City to be fueled by petroleum coke and coal. The decision was based on MPSC findings that the plant was not needed to meet future supply needs and would increase electricity rates by more than 59% to over 20 cents per kwh.  The MPSC analysis suggested that Wolverine had alternatives to supply electricity to its customers at a fraction of the cost of a new power plant.  Separately, Consumers Energy announced deferral of its  development of a 830-megawatt coal-fired power plant near Bay City that it planned to have in operation in 2017. The reasons given included reduced customer demand for electricity due to the recession, forecasted lower natural gas prices due to recent developments in shale gas recovery technology, and projected surplus generating capacity in the Midwest market.

Tweet This Post

by Bruce Goodman

Comprehensive energy supply policy needs to simultaneously address concerns about climate, energy security, and economic viability.  Anyone who advocates a program on a single issue needs to be viewed skeptically.  The wind does not blow nor the sun shine all the time.  There is no single answer – technical nor policywise – to all the problems and issues.  There needs to be a consensus that the free market does not appear to be ready to provide answers.  The government needs to kick start the problem-solving process with clear goals and simple programs.  Everyone needs to accept that the perfect energy supply policy will not spring automatically out of this process.  Energy prices will inevitably increase – there is no free lunch.  Even a long journey begins with but a single step.  That step must now be taken, both at the state and federal levels.

Tweet This Post

by Bruce Goodman

In December 2008, Detroit Edison issued an RFP for renewable energy credit (REC) contracts from Michigan sources. It received 43 proposals from 11 suppliers. In April, the MPSC approved the third REC contract submitted by Detroit Edison, this one with Boyce Hydro Power, LLC. The average price for the seven-year sale covering four hydro facilities on the Tittabawassee River is $7.75 per REC, well below the $12.46 average price of the first two contracts. The Boyce contract calls for 210,000 RECs per year, with an additional purchase of 112,000 RECs depending on generation. Detroit Edison has previously projected REC prices for twenty-year contracts at $15.66 per REC.

Tweet This Post