TRAVERSE CITY -- Local public utility officials will hash over a pair of power-generating techniques as they search for new energy sources.
The Traverse City Light & Power board will discuss wood-fueled biomass energy production and natural gas electric generation at its Monday afternoon meeting. It's dubbed a pros-and-cons discussion about the energy sources as officials work toward finding new base load power.
"We're going through the whole planning process ... to figure out where we're going to go with our energy future," said Jim Carruthers, a board member and Traverse City commissioner. "We need to generate our own energy. Buying it off the market will make us more vulnerable to price changes."
Light & Power will lose access in a year to its coal-based energy contract with a downstate company. That contract provided 50 percent of the publicly owned utility's demand for more than 25 years.
In addition, the utility intends to achieve 30 percent renewable energy by 2020, beyond the state's renewable portfolio standard of 10 percent by the end of 2015.
Ed Rice, Light & Power's executive director, said costs between biomass and natural gas are comparable, but there are benefits and drawbacks to both.
"It depends on how you view biomass, perhaps as a renewable resource, while natural gas is a fossil fuel and there's a finite supply," Rice said, adding natural gas commodity pricing can be volatile.
Board member Jim Hoogesteger said his focus is to keep costs low so rates don't dramatically increase for Light & Power customers, no matter the source.
Mike Coco, board vice-chairman, said officials are approaching a long-term energy decision for the community, one that could impact the area's power sources for between 20 and 50 years.
"Our alternatives for base load generation are limited and the elephant in the room is coal," Coco said.
Coco wants the public to attend Monday's meeting to share ideas about what energy source is most preferred, he said.
That won't be the last opportunity for the public to make comments.
A series of public forums will be scheduled this month and maybe into early February, an effort to gauge public sentiment on whether Light & Power should pursue plans for several small wood-fueled biomass plants, further explore natural gas electric generation or continue to buy coal-fired power from the open market, among other options.
Light & Power consultant Keith Schneider is working with board members to develop an action plan for making such choices. The plan includes a public information program that will consider public opinions about utility plans that currently are focused on biomass technologies.
Schneider said Light & Power's renewable energy goal puts the utility at the "top of the heap" among its counterparts. Now it's up to the utility's board members to decide how to achieve it, he said.
Monday's meeting will be at 4 p.m. at the Light & Power service center, 1131 Hastings St. in Traverse City.
