TRAVERSE CITY -- A wind farm and biomass plants are among $130 million in proposed projects for Traverse City Light & Power.
The public utility's proposed six-year plan also includes money to bury power lines along the bay and build a new electricity distribution substation south of town.
But endeavors like the biomass plants depend on how they impact customer electric rates, said Executive Director Ed Rice.
"If it's going to be any kind of significant rate increase, we would not do these projects," Rice said. "Our main goal is to keep the rates down, and whatever we have to do ... we'll do, particularly during these economic times."
Light & Power board members approved their capital improvements plan this week, and the Traverse City commission on Monday will consider sending the document to the planning commission for a public hearing. The plan eventually needs city commission approval.
The largest chunk of money -- $100 million -- is slated for power generation. Half would fund a wind farm in Charlevoix County's Norwood Township, and the other half would pay for four biomass plants in or around Traverse City.
The utility needs to be more self-sufficient and take on generation projects, said City Commissioner Jim Carruthers, who also sits on the Light & Power board.
"I'm mostly impressed that we're not really focusing on any new coal-fired generation for the future," Carruthers said. "As responsible humans, we need to produce our own power."
The plan includes $5 million to be spent next fiscal year, beginning in July, to build foundations, roads, and electrical connection facilities for the wind farm.
Construction could start in late summer or early fall, Rice said.
The $5 million would come from Light & Power's funds, but the $45 million needed to purchase and install wind turbines could require bonds or participation with other utilities in the Michigan Public Power Agency.
Another $1 million could be spent next fiscal year to explore biomass options and possibly purchase land for one plant. The remaining $49 million could come from bonds or cost-sharing with MPPA members.
Light & Power hopes to spend $7 million to bury power lines, primarily those along Bay Street, parallel to Grandview Parkway.
The board has discussed underground projects for years, said chairwoman Linda Johnson.
"In years past they've said yes, they're going to underground and somehow it never gets done," Johnson said. "If we're serious about it, and I know that this board is serious about it, we wanted to put enough money aside so we could do a substantial portion."
More than $4 million could fund a new distribution substation in the vicinity of LaFranier, Hammond and South Airport roads, Rice said.
"Light & Power hasn't really built a new general distribution substation in almost 25 years," Rice said. "So the existing system is becoming loaded almost to the point that it's difficult to operate."
Light & Power capital projects
Traverse City Light & Power proposed more than $130 million in capital improvement projects for the next six fiscal years.
The following are some major expenses:
-- Wind Farm: $50 million
-- Biomass plants: $50 million
-- Power line improvements, extensions, new services: $5.95 million
-- Underground lines: $7 million
-- Distribution substation: $4.25 million
-- Transmission line and substation: $5.2 million
