LL&P is one of 22 member communities in the Michigan Public Power Agency (MPPA). Established as a Joint Action Agency, the MPPA gives LL&P and other member communities the opportunity to work together, to jointly invest in, own and operate larger and more economical electric generating and transmission facilities. Together the MPPA member communities share the benefits gained by the group’s combined ‘economy of scale’.
As a member of the MPPA, Lowell Light & Power is given the opportunity to participate in a number of energy projects, and the degree of participation with each project is selected. LL&P is currently involved in six different projects with the MPPA, all intended to administer reliable energy, that is cost effective to the participant.
James H. Campbell No. 3
The first of these six projects is the James H. Campbell Unit No. 3 (Campbell No. 3). Located in Port Sheldon Township in Ottawa County, Michigan, this 770 MW coal-fired generating plant began production on September 17, 1980 under the operation of Consumers Energy. Campbell No. 3 includes “(a) 4.80% undivided ownership interest in the 770 MW (nameplate rating) coal –fired generating plant operated by Consumers Energy in Ottawa County, Michigan, (b) an undivided ownership interest in certain designated Extra High Voltage (EHV) transmission lines, (c) an undivided ownership interest in the coal stockpile for Campbell 3 and (d) rights under a back-up requirements agreement to back-up capacity and energy to be supplied by Consumers from its other generating units and other available resources.” Lowell Light & Power is entitled to 4.408 MW of Campbell’s energy output.
The second project LL&P takes part in is Belle River Unit No. 1. Also a coal-fired generating system, Belle River No. 1 is one of two units located in St. Clair County, Michigan and is regulated by Detroit Edison. The details of this project include, “(a) a 37.22% undivided ownership interest in the Belle River Unit No. 1 (Belle River) coal fired generating unit, part of a two unit generating station located in St. Clair County, Michigan, which station was constructed by and is operated by Detroit Edison (Edison), (b) an undivided ownership interest in certain common and joint facilities associated with Belle River Unit No. 1; (c) and an undivided ownership interest in certain 120 kV and higher voltage transmission lines on the transmission system. Pursuant to the Reliability Exchange provisions of the Belle River Participation Agreement, MPPA is entitled to 18.61% of the electric capacity and energy from each of the Belle River Units No. 1 and 2.” Lowell Light & Power is entitled to 2.769 MW of the electricity produced from the Belle River plant.
LL&P also participates in the Combustion Turbine Project No. 1. Located in Kalkaska County, the CT Project began operating in December of 2002. The MPPA has established a procedure with the CT Project where “(1) when power is at or near peak load conditions, (2) when an unexpected loss of a resource creates a need for capacity and energy for the MPPA members and the Project can supply the needed energy at a lower cost than is available from purchases from third parties, or (3) when the wholesale electric market conditions are such that the output of the CT Project may be sold to third parties at a price which will provide a reasonable net revenue benefit to the MPPA Participants.” With this plan of operation, the unit is only estimated to run 1,000 hours within a year. Lowell Light & Power has a 2.617 MW entitlement to the CT Project’s power supply.
The AMP Fremont Energy Center Project (AFEC) is a partnership between the MPPA and American Municipal Power (AMP). This project is “a nominal 512 megawatt (MW) natural gas-fired generating station with 163 MW of duct-firing capacity.” Located in Fremont Ohio, thirteen MPPA member municipalities have Power Sales Contracts, and Project Support Contracts for the whole output interest of the AFEC Project. LL&P has a .209 MW entitlement to AFEC.
The Landfill Energy Project was established in 2008 after the Michigan Public Act 95 was passed. The Michigan Public Act 95 was created in order to support the expansion of clean and renewable energy through specifications that will ultimately be cost effective with higher reliability, while using different energy resources. Also, in 2008 the MPPA signed a Purchase Power Agreement with Granger Electric of Michigan, where the production of electricity is produced by the combustion of landfill gas. Members of the MPPA began using energy from Granger in 2010. Along with Granger, the MPPA also signed a purchase power agreement with North American Natural Resources (NANR) for renewable energy generated from landfill gas. MPPA members started using this supply in 2012. Lowell Light & Power is entitled to 1.309 MW of the electricity produced by the Landfill Energy Project.
The final project that LL&P participates in is the Energy Services Project, formed in 2009. The project provides its participating members with activities involving the MISO and PJM Regional Transmission Organizations related to scheduling, settlement services, and invoicing.