NEWS RELEASE

For Immediate Release                                                                  Page 1 of 2

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 Entering into Negotiations for Wind Power

(Traverse City, Michigan) — At the last Traverse City Light & Power (L&P) Board of Directors meeting (Tuesday 10-13-09), the Board authorized their Executive Director to enter into negotiations with a company operating a wind farm near McBain, Michigan, in order to purchase 10 Megawatts (MW) of electrical power generated by wind turbines. According to L&P, the purchase of additional wind power will help L&P meet state-mandated legislation (Public Act 295) enacted last year that requires Michigan’s electric utilities to provide 10% of electrical generation through renewable fuels by 2015. L&P has also set its own goal of obtaining 30% renewable electrical generation by 2020.

            “Light and Power has determined that a combination of electric generation obtained through landfill gas and wind sources will  meet the state’s requirements,” said Ed Rice, Executive Director of L&P. “L&P already agreed to partner with the Michigan Public Power Agency (MPPA) last year in a landfill gas power generation project called the Granger Renewable Energy Project.  L&P staff has now analyzed several wind generation options and believes entering into a power purchase agreement with Heritage (Heritage Stoney Corners Wind Farm I, LLC) would be the most advantageous to the utility.”   

            Rice said he has agreed to a non-binding Letter of Understanding with Heritage Stoney Corners Wind Farm I, LLC that establishes the general framework for a power purchase agreement.  However, it is subject to board approval and formal documentation.

            The Letter of Understanding indicates L&P could enter into a 20-year agreement with Heritage to purchase all power and renewable energy credits produced by an extra 10 Megawatts of wind power that Heritage anticipates will be operating prior to the fourth quarter of 2010.

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.