Providing Reliable Energy to the Upper Peninsula of Michigan November 2016
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 1
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 2
Site areas being considered 3
Proposed generation solution Reciprocating Internal Combustion Engines (RICE) Extremely reliable and flexible operations Efficiency is maintained over a wide output 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 4
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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 6
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 7
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 8
Example of a RICE generating station Pioneer Generation Station – 110MW (12 units) 9
Example of a RICE generating station Tom Darte Energy Center – 25MW (3 Units) 10
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 11
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 12
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