The Associated Press
Published: Tuesday, Aug. 20, 2013 - 3:12 am
BAY CITY, Mich. -- The utility that serves Bay City will spend $18 million to buy wind-generated electricity over 20 years.
MLive # says Bay City Electric, Light & Power must comply with a state rule requiring a chunk of electricity from renewable sources by 2015. The power will come from a wind farm near Ithaca in central Michigan.
Bay City commissioner Chad Sibley objected to the length of the agreement. He predicts energy prices will fall, but the deal offers no escape for the city. The first year of the contract calls for paying about $45 a megawatt hour. It rises to about $72 in the final year.
MLive # says Bay City's average cost of purchasing electricity this year is $59 per megawatt hour. The utility has 20,000 customers.
That is a pretty good price for wind power. I am guessing that the generator gets the government mandated $22 mw-hr. I amsuprised that the city pays so much for wholesale power. PJM wholesale prices I believe are about $40 mw-hr. De-regulated Coal and nuclear plants in the area have total production costs of about $30 mw-hr. Their incremental fuel costs are about the same as the government incentive for wind which makes power from all those foreign built wind turbines which only run when there is wind. Anyways just another example of environmental groups bullying the comnsumer with their pointless mandates and global warming #$%$. It is a shame that you have all those people living inpoverty in Detroit that went bankrupt and money is being wasted on this #$%$. Build the city infrastructure with the money or keep the middle class electric rates low.