L&P Board Approves 5 Year Power Contract
9/9/2010

For Immediate Release

 

Contact:  Ed Rice, Executive Director, Traverse City Light & Power

               Phone: (231) 932-4559 or E-mail: erice@tclp.org

Contact:  Phil Callighan, Sr. Account Executive, Knorr Marketing

   Phone: (231) 947-9707, ext. 207; Mobile: (231) 342-7590

               or E-mail: philc@knorrmarketing.com 

 

L&P Board Approves 5 Year Power Contract

 

(Traverse City, Michigan) — At a special board meeting yesterday (September 8, 2010) theTraverse City Light & Power (L&P) Board approved two agreements with Lansing Board of Water & Light (LBWL) to supply coal fueled electric generation to L&P for the next five years. The approved contracts will supplement the loss of approximately 50% of L&P’s electric power supply which is set to terminate at the end of this year.

 

L&P is losing access, as of January 1, 2011, to a long term coal fueled electric generation contract with the Michigan Public Power Agency (MPPA). MPPA has provided a reliable and cost effective electric generation source for approximately 50% of the L&P’s electricity requirements for the past 25 years.

 

“L&P began negotiating with LBWL last year to develop a contract which would replace 50% of L&P’s electric generation that expires at the end of this year,” said Ed Rice, L&P Executive Director. “This ‘bridge contract’ is intended to meet L&P electric power requirements until long term solutions are determined. In addition to the coal fueled generation, L&P purchased 10 megawatts of wind energy which will also assist in filling the void of the expiring contract.”

 

L&P will be purchasing the coal fueled electric generation at a slightly higher cost than the expiring contract, but does not expect to immediately increase rates due to the new agreement.

 

Extension of the LBWL contracts past 2015 is not likely, due to the age and possible decommissioning of many coal fueled generation facilities in Michigan. The L&P staff continues to work towards a solution that will provide reliable and cost effective electric energy to L&P customers.

 

Traverse City Light & Power (www.tclp.org) is a community-owned,

community-focused municipal utility that offers energy at low rates in the region to over 11,000 customers in Traverse City, and parts of Blair, East Bay, Elmwood, Garfield, Peninsula and Paradise townships.

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