HOLLAND — The Holland BPW has voted to recommend a 20 year renewable energy wind contract with the Michigan Public Power Agency which will purchase the energy from Beebe Wind LLC, located in mid-Michigan’s Ithaca.
This contract is the second wind energy power purchase agreement for the HBPW and will increase Holland’s share of wind-generated power from 15 MW to nearly 32 MW.
This addition will bring Holland’s renewable energy portfolio to about 16 percent of the city’s total electric sources. The contract will be presented to Holland City Council for approval on March 20.
“Diversifying our portfolio with sustainable and efficient power generation reflects the HBPW’s desire to provide consistent, reliable power to our customers in a responsible way,” said Dave Koster, HBPW general manager. “We are committed to deepening our renewable energy offerings for our customers and our community.”
The power purchase agreement with the MPPA for 16.8 MW of wind generation will start out at less than 4.5 cents per kwh and escalate at 2.5 percent per year over the course of 20 years. The HBPW anticipates Holland will start receiving energy through this contract by August 2014.
In addition to Holland, four other Michigan cities are planning to participate in this power purchase agreement. Holland will be the largest power purchasing city, using 16.8 MW of power from seven turbines. MPPA’s total contract with Beebe is for eleven turbines with an output of 26.4 MW.
“Holland and the other cities are all members of the Michigan Public Power Agency. Entering into a contract as a group, we increase our purchasing power and receive better pricing, and we can pass those savings on to our customers,” stated Koster.
The contract includes expansion of Beebe’s existing wind farm in Ithaca, which means a positive outlook for a timely completion next year. Competitive pricing and the site’s Michigan location make Beebe Wind an attractive option for the HBPW. The contract also satisfies the state’s requirements for renewable energy under PA 295.
The Holland Board of Public Works is a community-owned enterprise providing utility services to nearly 28,000 business and residential customers in the Holland area. The BPW provides electric generation and distribution, water, wastewater treatment and broadband services to the City of Holland and selected areas.