Traverse City Record-Eagle

Archive: Thursday

January 16, 2014

TCL&P leans away from local generation

(Continued)

Board member Jan Geht said some board members would consider local generation if the cost was within 10 percent of the price of a purchased power agreement. He told Arends and Dyer the board would rather first see financial numbers to potentially streamline the conversation.

The problem with producing cost numbers is that 30-megawatt plants generally aren’t built only to produce electricity, Dyer said. Most small plants are of the co-generation variety, meaning they may produce both heat and electricity.

Arends said he met with Dyer on Wednesday and they will be able to come up with some financial comparisons to allow board members to make a decision.

“I think the difference is going to be significant,” Arends said.

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