TRAVERSE CITY — Traverse City Light & Power wants a new southside substation to shore up its electric system, but Mayor Michael Estes fears the big site is a Trojan horse for a new power plant.
The utility board on Tuesday will consider giving the go-ahead to proceed with plans for a $4.2 million substation along LaFranier Road in Garfield Township. Executive Director Ed Rice said the utility targeted a 30-acre site on the east side of LaFranier near Hammond Road.
A southside substation has been on the utility's radar for about five years, Rice said. Power use lagged during the recent recession, allowing the utility to delay the project. But an improving economy and development in the nearby Traversefield industrial park is generating more power demand, straining the system and causing periodic outages.
"It's affected the south end of the service area," Rice said.
Estes called the project a "bogus expenditure" and fears Light & Power wants to use the site for a power generation plant in the not-too-distant future.
"There's no reason you buy 30 acres for a substation that needs two or three acres," Estes said. "The dots don't connect."
Rice acknowledged the site "could be" used for power generation at some point but said the utility has no specific plans beyond the substation.
The utility dropped plans for a hotly disputed biomass plant in 2010 because of stiff community opposition. It remains interested in developing locally generated power and plans to survey customers soon to collect feedback.
"Without that support, we would not build an operation," said Rice, adding the utility hasn't approached Garfield about a power generation facility.
The utility ruled out a coal plant because of environmental concerns. Nuclear power isn't an option. That leaves natural gas as the likely power source, he said.
The LaFranier property is situated near natural gas lines and would give the utility access to Garfield Road to link with existing distribution lines there. But there are "other ideal spots" for a natural gas plant, Rice said.
Estes questions whether the city wants or needs its own power plant and fears the utility is starting the process with the substation project.
"What is going on with the substation is very similar to what went on with biomass," Estes said. "I don't want that to happen again."
The utility board meets at 5:15 p.m. at the Governmental Center. Rice said numerous project details, including the property purchase, will require additional board approvals.
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