Upper Peninsula of Michigan November 2016 Existing power supply to - - PowerPoint PPT Presentation

Providing Reliable Energy to the Upper Peninsula of Michigan November 2016

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Existing power supply to the Upper Peninsula

 We Energies purchased the

Presque Isle Power Plant in 1988

 Units 1 and 2 retired in 2007  Units 3 and 4 retired in 2009  Anticipate retiring Units 5 – 9

by 2020

 New generation needed to replace

the units being retired

 Transmission constraints limit

ability to import power

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Providing a long-term energy solution

 Filed a proposal with Michigan Public Service Commission

in June 2016 to form a new utility (Upper Michigan Energy Resources Corporation) to serve region as part of an agreement reached with State of Michigan

 Executed power contract with Tilden Mine in August 2016

which allows customers of new utility to save on plant costs

 Agreement calls for new utility to construct, own and operate

approximately 170 megawatts (MW) of generation by 2019

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Site areas being considered

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Proposed generation solution

Reciprocating Internal Combustion Engines (RICE)

 Extremely reliable and flexible

• perations

 Efficiency is maintained over a wide

• utput range

 Low environmental impact and very

little water needed for operation

 Engines delivered and installed

in modules sized for the needed capacity

 Some natural gas and transmission

infrastructure needed

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Site requirements

 Working on design and size  We are targeting approximately 130MW at this site

 Engine sizes being evaluated: 9MW or 18MW

 Plant size is expected to be 500 feet X 500 feet –

approximately 6 acres

 Engine building size to be refined once engines are selected –

generally we anticipate approximately 100 feet wide x 250 feet long x 35 feet high

 Another 5-10 acres needed for construction laydown and

parking

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Additional site features

 Small out building for storage tanks  Anticipate three exhaust stacks – approximately

150 feet high

 Radiator banks are sized to accommodate the heat release

from the engine – anticipate up to 400 feet long to accommodate a plant of this size

 A road will go around the plant for operating access and fire

response

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Sound

 Site design parameter

includes 50 decibel limit

 Once engines are selected,

site design will be refined to include a detailed sound modeling

Source: OSHA

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Example of a RICE generating station

Pioneer Generation Station – 110MW (12 units)

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Example of a RICE generating station

Tom Darte Energy Center – 25MW (3 Units)

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Next steps for selected site

 Continue to communicate with community officials

and residents

 Continue working on design and engineering plans  Obtain option to purchase land  Obtain local approvals and permits  File for regulatory approvals by early 2017  If approved, construction to begin late 2017 or

early 2018

 Operation anticipated in 2019

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A solution for the future

 Provides a long-term generation solution that

assures electric reliability in the Upper Peninsula

 Significantly reduces environmental emissions in

the region

 Provides tax benefits to the local host communities  Reduces the need for significant future

transmission investments