“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,” stated 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% 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 Ithaca, MI site 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. We are committed to improving the economic and environmental quality of the community in partnership with our customers, providing reliable services at the lowest rates achievable through innovation, efficiency, and professional operations. We provide electric generation and distribution, water, wastewater treatment and broadband services to the City of Holland and selected areas.

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Holland,MI—The recommendations for future power generation released today by the Holland Board of Public Works would lead to dramatic reductions in greenhouse gases and particulate emissions, while at the same time making big gains in energy and cost efficiency.

The recommendations will be reviewed with the Community Stakeholders Panel at a public meeting on October 29 and formally submitted to the BPW’s Board of Directors and the Holland City Council in November.

“We are very pleased that this broad community effort has arrived at a set of recommendations that are fully in step with the Holland Community Energy Plan and that can move our community forward in every significant measure,” said Dave Koster, general manager of HBPW. “The participation and input from people across our community have led to some very strong options for powering our future.”

The recommendations mark the conclusion of an exhaustive year-long analysis that engaged the participation of the HBPW staff, leading engineering and energy consulting firms and stakeholders from across the community that included representatives from business, government, education, environmental groups and the community at large.

The potential gains from the HBPW’s recommendations are significant. According the U.S. Environmental Protection Agency, power generated by natural gas produces half as much carbon dioxide, less than a third as much nitrogen oxides, and one percent as much sulfur oxides as comparable coal-fired generation.  In addition, the recommendations would keep the levelized cost of electricity relatively the same and would add extensively to the HBPW’s capabilities to provide expanded snow melt and other energy-saving services such as district heating.

“The work on the part of the community that led to these recommendations has been cited as a leading example of thorough, open and inclusive decision making,” Koster said.

Following are the recommendations released today, and key factors for each:

1. Base Load Generation: Pursue combined-cycle natural gas technology in a configuration that may include two gas-powered turbines providing 114MW of electric power..

Key Factors

• Economy of scale
• Operational efficiency
• Additional waste heat availability for district heating and snowmelt
• Opportunity for collaboration with other municipals
• Supports ability to power the system and our community internally.

2. Location For New Resource: Preferred site not James De Young.

Key Factors

• Constructability of site
• Lake access is no longer needed for cooling
• Alternatives are closer to both the proposed gas pipeline route and district heating networks
• Need to preserve access to roads and high-voltage distribution.

3.1 Renewable Energy: Enter into 10-year Power Purchase Agreement with E.ON Wildcat for 15 MW of wind generation produced near Elwood, Indiana.

Key Factors

• Complements current portfolio of landfill gas and biomass resources
• Excellent pricing without operational or development risk
• Pay as power is received preserves capital for other investments.

3.2 Renewable Energy: Complete 20 year agreement with Beebe Wind LLC for approximately 17 MW of wind generation produced near Ithaca, Michigan.

Key Factors

• Pricing competitive with E.ON Wildcat I project
• Dependent upon the extension of Production Tax Credits in their current form
• Working to build a group of Michigan municipal entities to fully subscribe the development.

4. Existing Units at James De Young Facility: No further capital investments in control technology to meet upcoming regulations.

Key Factors

• Unit 5 (28MW) will need to stop burning coal in next 3-4 years
• Unit 3 (11 MW) and Unit 4 (22 MW) are affected by proposed rule that is being reconsidered
• Monitor regulations and technology improvements
• Preserve capacity by utilizing natural gas capability.

Other Recommendations

Also included with the base recommendations were a set of proposed next steps to be taken when the Board and Council approve a base load plan. These included:

• Engage services of an owner’s engineer to assist with management of the project.
• Initiate the site selection process for locating a new unit.
• Hire HT Engineering for gas pipeline design services.
• Procure fuel management services and begin development of hedge plan for natural gas.

If accepted and enacted, the recommendations released today will deliver to the community affordable, reliable future energy, a more diverse energy portfolio, cleaner fuel, dramatically lowered emissions, greater integration of renewable energy resources and much higher energy efficiency for theHollandcommunity.

The Holland Board of Public Works is a community-owned enterprise providing utility services to nearly 28,000 business and residential customers in theHollandarea. We are committed to improving the economic and environmental quality of the community in partnership with our customers, providing reliable services at the lowest rates achievable through innovation, efficiency, and professional operations. We provide electric generation and distribution, water and wastewater treatment to the City ofHollandand selected areas.

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“Customers asked for an outlet to recycle air conditioners and dehumidifiers, so we partnered with Padnos and other local utilities to make it happen,” said Anne Saliers, our conservation programs manager.

Incentivizing Conservation

Most recycling centers won’t take these items, or will only accept them for a fee because the Freon removal costs more than the scrap metal is worth.  To help our customers make the most environmentally responsible decision, we hosted a one-day collection event for air conditioners and dehumidifiers with the result of saving kilowatt hours of energy for getting these antiquated appliances off the grid. In addition to increasing our city’s overall energy efficiency through conservation, the program also ensured proper Freon removal.

About Freon

Freon, whose usage has been regulated and subsequently phased out over the past 25 years, is also known as “chlorofluorocarbon.” CFCs, for short, react with molecules in our atmosphere and have devastated the Earth’s ozone layer for decades. And the atmospheric impacts of CFCs are not limited to its role as an active ozone reducer. This anthropogenic compound is also a greenhouse gas, with a much higher potential to enhance the greenhouse effect than CO₂ (Citation).

The Event

Recycle Rewards was held in partnership with Louis Padnos Iron & Metal Company, Zeeland Board of Public Works, Consumers Energy and Grand Haven Board of Light and Power to collect air conditioner window units and dehumidifiers in the greater lakeshore area.  Customers received rebate checks of $15 for each eligible appliance, up to $60.  The first Recycle Rewards event held last fall collected 85 units, saving 3,356 KWh of energy.  A second Recycle Rewards event was held June 2 with similar outcomes. (See photos).  The next Recycle Rewards event is being planned for May 2013.

Our Future Plans

Because the program has been so successful, right now, we’re looking for ways to accept air conditioners and dehumidifiers on an ongoing basis, as we already do with refrigerators and freezers, keeping these appliances out of landfills and harmful from affecting the ozone.

“We have seen utilities working within their communities to collect inefficient appliances, but the idea of collecting window units and dehumidifiers is unique,” said Mike Young, NEP coordinator for the Michigan DEQ.  “The BPW’s response to community need and success in removing inefficient appliances from the grid were some of the reasons they stood out for the NEP Award.”

To receive the competitive annual NEP Award, an organization must be a Pollution Prevention Partner or Clean Corporate Citizen.  This means their facilities operate above compliance with no violations or notices from the MDEQ.

We were one of eight organizations to receive the NEP Award in this award cycle, and this is the second year in a row we received it.  Last year we were recognized for our pharmaceutical collection events.

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