News Release

For Immediate Release                                                                     

Contact:  Jim Cooper, Key Accounts & Marketing Mgr., Traverse City Light & Power

               Phone: (231) 932-4560 or E-mail: jcooper@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 Renewable Energy Agreement

(Traverse City, Michigan) — The Traverse City Light & Power Board has agreed to partner with the Michigan Public Power Agency (MPPA) in a methane gas power generation project called the Granger Renewable Energy Project. The agreement gives L&P the ability to purchase up to two megawatts of electrical power at a predetermined base rate and lock-in rate adjustments over ten years.

            The Granger Renewable Energy Project will provide electric energy primarily from landfill methane gas. This gas is produced as a result of the decomposition of organic waste in landfills, where it is collected, filtered and used as fuel to generate electricity. Granger Electric of Michigan, LLC will construct methane gas electric power generation facilities and sell the electricity to the MPPA. The two megawatts of capacity that L&P would accept from the MPPA would be derived from several different projects Granger and the MPPA would develop throughout the state.

            According to a Light and Power spokesperson, it could take up to five years for L&P to receive the full two megawatts.

“This project fits well with Light and Power’s commitment to using renewable

energy resources,” said Ed Rice, Executive Director of Traverse City Light & Power. “It will help meet both Light and Power’s future base load generation goals and provide a good portion toward any Renewable Portfolio Standard the State of Michigan might adopt in the future.”

            A Renewable Portfolio Standard (RPS) is a regulatory policy already existing in some states that generally places an obligation on an electric utility to produce a specified fraction of their electricity from renewable energy sources.

Traverse City Light & Power (www.tclp.org) is a community-owned, community-focused municipal utility that offers reliable energy at low rates in the region to over 10,000 customers in Traverse City, and parts of Blair, East Bay, Elmwood, Garfield, Peninsula and Paradise townships.