Executive Director's Corner

The Marquette Board of Light and Power (MBLP) continues to move forward despite the downturn in the economy.

Plans to partner with Renewafuel for the purchase of 60,000 tons annually of biomass renewable energy fuel cubes made of wood by-products took another step forward with the Board approving a revised contract. Other projects moving ahead include awarding the Tourist Park Dam Structure Engineering Services, and implementation of a Managed Inventory System and Advanced Metering Infrastructure. Plans to implement new state energy legislation regarding renewable energy and energy conservation are also underway.

“The MBLP is excited about being at the forefront in supporting the alternative energy movement,” said MBLP Executive Director Kirby Juntila. “The biomass fuel cubes have lower greenhouse emissions and will yield valuable “green credits” required in Michigan utility portfolios beginning in 2012 while strengthening the local economy and forest product industry,” Juntila said. The $5 million annually spent out-of-state to purchase coal for Unit No. 2 will now be reinvested locally. Renewafuel is seeking financing to construct a full-scale renewable energy fuel cubes facility at the former Sawyer Air Force Base in 2009. The MBLP is in the process of filing the necessary regulatory permits.

Since the May 2003 Dead River Flood which destroyed the Tourist Park Dam, the utility has worked toward restoration of the facility and the recent award of the Tourist Park Dam Engineering Services is another step in the process. Once completed, the dam design will require approval by the Federal Energy Regulatory Commission.

Board approval of a Vender Managed Inventory Alliance will enable the utility to reduce its current $1.2 million inventory by as much as 50 percent freeing up funds for other projects. The plan will allow for daily tracking of inventory with weekly restocking while improving operating and business efficiencies.

The approved $3 million Advanced Metering Infrastructure (AMI) “Smart Meter to Smart Grid” project will further enhance customer service and business operations by saving the customer and the utility money while reducing power plant air emissions. The new digital meters to be installed beginning this Fall over the next two (2) years, can utilize in-home energy display units so customers know exactly how much money they are spending to power their homes/appliances and make adjustments to reduce usage. By reducing energy use, the utility can burn less coal and further reduce air emissions which is beneficial to the environment.

New Michigan energy legislation calling for the addition of renewable energy sources and the implementation of energy efficiency programs are currently being addressed by staff. Newly enacted Renewable Portfolio Standard requires utilities to have renewable energy sources as part of their generation portfolios by 2012 and the MBLP which already has renewable hydro generation will be able to take advantage of its new Renewafuel biomass contract to earn renewable energy credits. The new Energy Optimization Program requires utilities to enact programs to reduce energy consumption by residential, commercial and industrial customers beginning this year. Currently, municipal and cooperative utilities in the Upper Peninsula are working together to develop similar programs to help customers reduce energy use. Energy Optimization Program plans are due by April.

The MBLP continues to monitor the economy while working cooperatively and independently to reduce operating costs during this economic downturn. Implementation of programs to help customers reduce energy costs when combined with the addition of new technologies will further reduce emissions benefiting the environment. We continue to develop strategic plans as we position the utility to provide low-cost, reliable electric service to our customers today and well into the future.