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Michigan utility to agrees to buy 240MW clean energy

Michigan electricity company Consumers Energy has agreed to buy more than 240 megawatts of renewable energy capacity from independent developments in the state.

The firm has agreed 20-year power purchase agreements with John Deere Wind Energy for three wind projects, and with Waste Management Renewable Energy for a landfill gas project.

The company said the power purchase agreements would support its plan to provide its 1.8 million customers with a more “balanced” portfolio of electricity supplies over the next two decades.

Part of its plan is to provide 10% of its power from renewable sources in order to comply with Michigan’s energy reform law.

The agreements remain subject to approval by state authorities, but have received a big thumbs up from Michigan Governor, Jennifer Granholm.

Gov Granholm said: “Consumers Energy’s agreements to purchase power from four new renewable energy projects in Michigan are another step forward to a clean energy economy.

“These projects will help power Michigan homes and businesses, build markets for our growing wind manufacturing industry and create jobs,” added the Governor.

John Deere

John Deere Wind Energy, which has its head office in Johnston, Iowa, secured PPAs for its 90MW Michigan Wind 2 project in Sanilac County, its 59.4MW Harvest II Windfarm in Huron County, and its 81MW Blissfield Wind Energy project in Lenawee County.

All deals start from 2012. John Deere is developing the Blissfield project jointly with Great Lakes Wind LLC.

Houston-based Waste Management is developing an additional landfill gas power project at its Pine Tree Acres landfill, near Richmond in Macomb County.

The project will generate 12.8MW of power, selling its energy to Consumers beginning in 2012.

Altogether, the projects are expected to create around 150-200 jobs. The power purchase agreements are now awaiting clearance from the Michigan Public Service Commission.

Benefits

John Russell, president and chief executive officer of Consumers Energy, said: “These projects create positive local economic benefits, including jobs. We will continue to work with the Michigan Public Service Commission on moving forward with a balanced energy supply to serve our customers and benefit the environment.”

Consumers Energy, one of the largest suppliers of renewable energy in the state, currently supplies more than 4% of its power from clean energy projects based in Michigan.

The company is expecting the new PPAs to bring this proportion up to 6.2%.

The principal subsidiary of Jackson-based CMS Energy, the company provides energy to more than six million people in Michigan.