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www.mybaycity.com July 13, 2008
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City May Use Landfill Gas to Meet Renewable Energy Requirement

Lansing, Grand Rapids Landfills Part of New Plan by Municipal Power Group

July 13, 2008       Leave a Comment
By: Dave Rogers

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You know those big landfills that look like mountains along the highway?
 

You know those big landfills that look like mountains along the highway?

Well, they produce an economical source of energy that the City of Bay City, among other users, may tap to help meet a state alternative energy requirement of ten percent.

The Michigan Public Power Agency (MPPA), of which Bay City is a member,has requested that each interested member designate the amount of megawatts it wants and to approve a resolution to join the Granger Renewable Energy Project, said Mr. Belleman.

City Manager Robert V. Belleman has informed the City Commission that landfill gas from Lansing and Grand Rapids can be purchased through a cooperative agreement by the city electric department and resold to its customers.

MPPA has negotiated a Renewable Electric Power Development and Purchase Agreement with Granger Electric of Michigan LLC. This deal commits the agency to purchase at least 25MW of renewable power from landfill gas sites in Michigan at a price of $75 per megawatt hour beginning in 2008 and escalating at 2.5 percent per year. The agreement is a master contract that sets out provisions for entering into specific landfill gas projects as they are developed.

Assuming a 10 percent RPS and 1 percent growth from current retail sales, Bay City would require 5 MW from the Granger Landfill projects by 2015.

Granger is a privately held company that has previously developed four landfill gas projects in Michigan including the Wood Road landfill and Grand River landfills near Lansing. The company currently has contracted for gas from the South Kent landfill near Grand Rapids, and this project is expected to be the first development under the master agreement.

Granger and Kent County recently agreed on a $6 million joint development project to produce electricity by burning methane gas from the South Kent Landfill. The county will invest $2 million for a building and Granger will put up $4 million for generating systems. Power produced will be sold to Consumers Energy and the MPPA.

"Under the 21st Century Energy Plan authored by the Michigan Public Service Commission (MPSC) at the direction of Governor Granholm, three key sources for future power supply were identified," wrote Mr. Belleman:

1-Base load generation from coal, nuclear or other low cost fuels;

2-Renewable energy from sources such as biomass, geothermal, solar thermal, photovoltaic, wind, hydroelectric, or landfill gas; and

3-Reductions in energy usage due to energy efficiency programs.

Legislation needed to facilitate the plan has been passed by the Michigan House of Representatives and is expected to be passed by the Senate and signed into law by the Governor, said Mr. Belleman. One part of the legislation package is House Bill No. 5548 which mandates that all entities selling electricity to retail customers in the state must meet a Renewable Portfolio Standard (RPS) of 10 percent of total kilowatt hours sold by December 31, 2015.

"MPPA has evaluated renewable options currently available or proposed for construction in Michigan, wrote Mr. Belleman. "Based on these evaluations the Agency has identified renewable power from landfill gas as one of the best options for meeting the RPS without dramatic cost increases."

According to the state plan, the three pronged approach would balance Michigan's power supply resource portfolio between traditional sources with relatively low cost but higher environmental emissions, renewable sources with relatively high costs and limited siting options but low environmental impacts, and energy efficiency with a wide range of options at a range of costs with low environmental impact.###

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Dave Rogers

Dave Rogers is a former editorial writer for the Bay City Times and a widely read,
respected journalist/writer in and around Bay City.
(Contact Dave Via Email at carraroe@aol.com)

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