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February 23, 2006Utility seeks alternative power sourcesWood, wind projects under consideration
Traverse City Light and Power is looking into alternative power sources. One of the options is the use of additional windmills, like the one on M-72 and South Bugai Road. That could mean more towering wind turbines for the region or a wood-burning plant, with the latter possibly located in Leelanau County's Elmwood Township. The utility is seeking a consultant to develop a renewable energy plan to identify up to 50 megawatts of new power sources over the next five years. The study will be paid for with part of a $400,000 renewable energy grant from the state Public Service Commission. "Within another five years, we know we need another source of low-cost power," said Richard Smith, director of the city-owned utility. "We're looking at a variety of options on fuel types and locations." Light and Power operates a 50-megawatt natural gas powered turbine facility on a 10-acre site in Kalkaska that went on line in late 2002 and is operated during peak power use periods. It also has partial ownership in two downstate power plants and the state's first municipal windmill erected 10 years ago. But the cost of natural gas is soaring, and utility officials are looking for lower cost, renewable sources of electricity including wood and wind-generated power. One potential location for a new facility is in Elmwood Township, just north of Traverse City, where utility officials met with township representatives to talk about a wood-burning plant on property the utility owns near M-22. Light and Power owns about two acres on the east side of M-22 in Greilickville, including the old coal dock and area between the highway and Grand Traverse Bay. The company also owns four acres on the west side of M-22, where coal for the former bayside power plant was stored. Township planner Bill Swanson said the utility has not submitted any formal plans, but any project would have to go through a review process that includes a public hearing. He anticipated residents would have questions about noise, traffic and impact on adjacent properties. "They would have to do the same things as any other developer," he said. Township Supervisor Derith Smith said she has several questions, and wants to know how such a plant would benefit the township and its residents. But discussions thus far have only been hypothetical, she said. The utility has less than 1,000 customers in Elmwood, a Light and Power official said. Light and Power's Smith said possible locations for a new power plant would be part of the upcoming study, but acknowledged there will be political hurdles to clear. "Anytime you put up a smoke stack, there's going to be concerns," Smith said. Advantages of a wood-fired plant include lower operating costs than a gas-fired facility, and wood plants burn cleaner than coal-fired plants downstate where the utility buys a majority of its electricity. The heat from a wood plant could also be used to provide low-cost hot water to utility customers, similar to systems utility officials visited on a recent trip to Europe. The utility also is working with the Grand Traverse Band of Ottawa and Chippewa Indians to expand the use of wind-powered turbines on its system. A windmill on M-72 provides about 800,000 kilowatt hours of electricity annually, or enough for about 125 customers. Smith said the utility hopes to have its study completed by summer. "By the end of August, we hope to have some answers," he said.
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