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Alternative energy project exceeds goals
By Bill O'Brien
MCBAIN -- Winds of change continue to blow in northern Michigan, at least when it comes to renewable power generation.
Traverse City's Heritage Sustainable Energy is expanding its Stoney Corners Wind Farm in Missaukee County, and negotiating with Traverse City Light & Power to sell up to 10 megawatts of wind power.
That's on the heels of a multi-million dollar pact to sell power to Detroit Edison.
Wind farm developers said the project thus far has exceeded their expectations.
"That site has proven to be a more-than-adequate location to develop a commercial wind project," said Rick Wilson, who manages the project. "We're confident to the point where we're taking some additional risks."
The company erected two wind turbines last year east of M-115 near McBain, and plans to raise seven more turbines on surrounding farm land. The first phase will include nine turbines that can generate up to 19 megawatts of power and cost roughly $12 million, company officials said.
That power will be sold to Detroit Edison, which in the spring reached a 20-year agreement with Heritage to buy renewable energy in a deal worth an estimated $90 million. Detroit Edison will pay Heritage $115 per megawatt hour, after rate approval by the Michigan Public Service Commission.
Stoney Corner power won't go directly to Detroit Edison, but instead will be transmitted to a regional grid that serves six Midwest states and Canada.
The project's second phase will add another 18 turbines by the end of 2011 that will generate another 38 megawatts of electricity and boost the company's total investment to around $50 million, Wilson said.
State law requires Michigan utilities to provide at least 10 percent of their electricity from renewable sources by 2015, and some utilities set even loftier green energy goals. Traverse City Light & Power plans to obtain 30 percent from renewable sources by 2020.
The pending deal with Light & Power, scheduled for approval next month, includes a $106 per-megawatt hour rate with a 2 percent annual increase. Heritage also is in talks with major utilities like DTE Energy and Consumers Energy.
"We think it's beneficial to the ratepayers and the citizens of Traverse City," Light & Power executive director Ed Rice said. "I think it will be good for two Traverse City entities to work together."
Traverse City Mayor Chris Bzdok said the proposed purchase price is at least 20 percent cheaper than other renewable energy deals of which he's familiar.
"It's a good price, it's a good opportunity and it's a local (company)," Bzdok said. "The cheaper you can get renewable energy, the more renewable energy you can use."
Each turbine annually creates about 6,000 megawatt hours of electricity, enough for 600 to 700 residential customers. The nearly 30 turbines will generate enough power for a community of more than 17,000, when the second phase is completed.
"That's a lot of juice," Wilson said.
The wind farm also provides another form of green for the McBain area, where a severe downtown in the milk market hurt local dairy farmers.
Mike Bosscher, of Bosscher's Dairy, owns about 400 acres in the area and milks 200 dairy cows. He said farmers who leased their land to wind project developers were paid a $10,000, one-time fee and other land development costs if a turbine was built on their property. They then share a 5 percent portion of Heritage's gross revenues, depending on the amount of land leased for turbines.
"It's like renting your land out for a very good fee and still being able to use it," Bosscher said. "Anything that we're seeing from them is definitely helping."
More contracts for Heritage means more royalties for landowners, he added. Turbines spawned a few complaints from neighbors about noise and aesthetics, but Bosscher said some in the community enjoy the view of structures that tower over the terrain.
"I think they add to this area in a positive way," he said.
