ESCANABA, Mich. (WZMQ) – In accordance with Michigan law, municipalities are working to establish more renewable energy sources. The City of Escanaba is exploring ways to reach the State’s goals while acting in the best interest of its residents.
According to Escanaba Electric Utility Director Gerald Pirkola, the City is required to file a renewable energy plan by February 27. Once the plan is approved, the City must begin retiring renewable energy certificates (RECs), which represent one megawatt hour of generated energy.
“From 2025 to 2029, it’s 15% of our sales,” Pirkola explained. “In 2030 to 2034, it’s 50%. 2035 on, it’s 60%. RECs can be used until 2034, and from 2035 on we need to have a power purchase agreement for that renewable energy.”
To achieve that, the City is considering partnerships. Recently, Manitowoc Public Utilities of Wisconsin proposed a plan that would result in the formation of a new municipal electric company.
“It would be totally separate from our current utility, so it wouldn’t have any impact on our utility at all,” said Pirkola. “They’re a larger utility; they have a lot more resources available. There are benefits, like maybe there would be some renewable energy that would be available or capacity.”
Pirkola presented the proposal to the Electrical Advisory Committee on Wednesday. No decision was made, with committee members agreeing to look into the potential partnership further. They will also be considering potential options the City could have with other companies.
“With this municipal electric company, there are other things they could do for us,” Pirkola said. “If they’re going to be doing, say, some large solar facilities, we could buy into those facilities.”
Although the cost of any such development is uncertain, Pirkola believes it would be similar to other partnerships the City has had in the past.
“It doesn’t look like it’s going to be significant,” he said. “When we were part of another group, our costs were about $40,000. It would be in that range, maybe less. Those numbers would be negotiated and reviewed before we joined.”
For now, Pirkola says the Electrical Advisory Committee is putting in the time and effort to make the right decision for the City of Escanaba.
“Right now, we’re among the lowest rates in the Upper Peninsula,” he said. “We take pride in that, and it’s important for me to continue that in the future. There’s going to be challenges. We don’t know what the cost of this renewable energy is going to be. The price of capacity is increasing. We want to do the best we can for our customers and try to find the best rates that we can possibly find.”
The Electrical Advisory Committee meets again in April.
