Watch CBS News

MPSC OK's Detroit Edison Renewable Energy Deals

The Michigan Public Service Commission Tuesday approved two contracts totaling 20 megawatts of renewable energy capacity -- enough to power nearly 14,000 homes -- for Detroit Edison's growing renewable energy portfolio.

The 20-year contracts, with WM Renewable Energy LLC and L'Anse Warden Electric Co., call for the energy to be generated from landfill gas and wood waste biomass, respectively.

A state law requires Detroit Edison to provide 10 percent of its power from renewable resources by 2015.

Detroit Edison will purchase 17 MW from the L'Anse Warden wood waste biomass plant in Baraga County in Michigan's Upper Peninsula. The former coal-burning plant was converted to wood waste in August 2009. L'Anse Warden's fuel supply comprises a rotating crop of quick-growing willow trees, paper plant byproducts, landfill diversion wood, wood bark and chips.

Detroit Edison also will purchase 3 MW of renewable energy capacity from WM Renewable Energy, a Waste Management subsidiary. The future Eagle Valley Renewable Energy Facility will be in Lake Orion. The plant will use landfill gas captured from the adjacent Eagle Valley Landfill. The new facility is expected to start operating by the end of 2011.

Detroit Edison expects the majority of its renewable energy to come from wind resources. The company has acquired easements on more than 75,000 acres of land in Huron County in Michigan's Thumb region for development of large-scale wind farms. The company also has two solar energy pilot programs that could produce about 20 megawatts of power.

To meet the state's renewable portfolio standard, Detroit Edison expects to add about 1,200 megawatts of renewable power. The company plans to contract with third-party producers, such as WM Renewable Energy and L'Anse Warden, for half of that capacity, and plans to own renewable energy projects to meet the remainder. In January, Detroit Edison announced an agreement with Heritage Sustainable Energy to purchase the output from the company's wind farm near Cadillac.

Detroit Edison is an investor-owned electric utility serving 2.1 million customers in Southeastern Michigan and a subsidiary of DTE Energy (NYSE: DTE), a Detroit-based diversified energy company. More at www.dteenergy.com.

(c) 2010, WWJ Newsradio 950. All rights reserved.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.