Powering Wolverine’s Renewable Future

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Powering Wolverine’s Renewable Future. Presented to Great Lakes Regional Wind Institute Detroit, Michigan by John P. Miceli, Energy Market Analyst March 17, 2008. Presentation Overview. The Coop Story Who is Wolverine? Wolverine’s involvement in project - PowerPoint PPT Presentation

Transcript of Powering Wolverine’s Renewable Future

  • Powering Wolverines Renewable Future

    Presented toGreat Lakes Regional Wind InstituteDetroit, Michiganby John P. Miceli, Energy Market AnalystMarch 17, 2008

  • Presentation OverviewThe Coop StoryWho is Wolverine?Wolverines involvement in projectMichigans proposed RPS legislationProject/Business synergiesProject challengesLessons learnedProject photos

  • Co-op Story: The Early Years

  • Rural Goes Electric

  • Cooperative Service Area Today

  • Michigan Co-ops Get Started

  • Distribution Cooperatives Create Wolverine The G&T

  • Who is Wolverine?

  • Wolverine Key FactsNot-for-profit 501(c)(12) corporationMission:To provide outstanding service to our members by delivering reliable, competitive power supplyCore values:Member serviceIntegrityEnvironmental stewardshipCommitment to employees2007 Statistics:Number of employees107Total revenue$ 240 million

  • Service AreaGeneration:240 MWPrimarily peakingTransmission:1600 milesHigh voltage 35 counties36 stationsDistribution:35 counties130 stations

  • Energy Control CenterState of the artOperational nerve centerMarket participation 7x24Follows risk management policies and guidelinesMaintains emergency electric resource plan Transacts with pre-approved energy partners (EEI master agreements)

    Monitors Wolverines transmission system 7x24Coordinates routine outages for maintenance and constructionDirects restoration of transmission service during unplanned outages

  • Why is Wolverine Involved in Harvest Project?Proactive renewable energy position :Michigan RPS is likely Commitment to thoughtful use of environmental resourcesFirst mover advantage Competitively-priced renewable resource for our members

  • Project Location

  • Harvest Wind Farm Timeline

    DateActivityOctober 2005Renewables identified as strategic corporate objectiveMarch 2006Renewable RFP process initiatedNovember 2006Deere and Wolverine negotiating team meet in CadillacFebruary 2007Purchase Power Agreement executedJune 2007Initial construction beganSeptember 2007Last wind turbine erectedDecember 2007Delivery of energy from facility beganApril 2008Commercial Operation

  • Project Facts

    DeveloperJohn Deere Wind EnergyFacility NameHarvest WindFarm L.L.C.LocationBetween Elkton and Pigeon in Huron County, MichiganSizeOver 3,200 acresEquipmentThirty-two 1.65 MW Vestas V-82 (52.8 MW nameplate)

    Turbine Specifics80 meter hub height (262 feet)40 meter blade length (131 feet)120 meter overall height (393 feet)283 tons total weight

    Operational DataCut-in wind speed 7.9 mphCut-out wind speed (10 minutes) 44.7 mphCut-out wind speed (1 minute) 53.7 mphCut-out wind speed (1 second) 71.6 mph

  • Project/Business SynergiesWolverine and John Deere are similar:Rural customer baseStrong community focusCore values include quality, integrity, innovation and commitmentJohn Deere had favorable wind turbine queue position with a narrow window of opportunityWolverine desired to move quickly and had Board support

  • Company Contributions

    WOLVERINEJOHN DEEREReadiness to sign long-term PPAStrong Board supportUnderstanding of interconnection issuesKnowledge of MISO MarketRelationships with Detroit Edison, ITC and METCSupply chain position with VestasProject rightsLand leases and strong community supportCapital for construction

    Construction experience

  • Project ChallengesJustifying higher cost of wind energy to Wolverine membersRFP and PPA processMISO queue process:Generation Interconnection AgreementTransmission and distribution upgrade requirementsDetermining right size of wind farm

  • Justifying Higher Cost of Wind PowerProblem:Purchasing renewable energy at a price higher than current market pricesAnswers:Expectation that renewable energy will become a requirementDevelop a willingness to pay a little more now, to gain advantage in renewable energyProvides for supply portfolio diversityProvides price certaintyWill provide for competively priced power in the futureLearn by doing

  • RFP and PPA EffortsRFP:What questions should be asked?What limitations or requirements should be attached?How do we verify financial viability?How do we verify experience and capabilities?PPA:What time period should the PPA cover?What terms and conditions should be included?What guarantees could or should be attached?How does Wolverine assure protection against project?

  • Study Assumptions &Interconnection MW needed ?QueuedRequests?TransmissionUpgradeRequirements& Timing?Total GenerationProject Scheduling & Economics?Managing the MISO Queue Process

  • What is Appropriate Size for Wind Farm?Wolverine initially desired a minimum of 25 MW of wind energy to limit risk and costJohn Deere desired a bigger farm (60 MW) to facilitate economies of scaleSolutionJohn Deere scaled size back to 52.8 MW to minimize upgrade costs and keep project within budget Wolverine agreed to purchase the full output

  • Lessons LearnedGoal of learning by doing paid offGave us a real way to assess RPS directionGained confidence to do the next projectCreated supply portfolio diversityIncreased interest for renewable resources:Transmission MembersWolverine Power Marketing CooperativeSpartan Renewable Energy

  • Thank you.


  • Tower Base

  • Poured Tower Base

  • The Hub

  • End View of the Base

  • Crane Assembly

  • The Crane

  • Tower Assembly

  • The Base

  • Setting the Base

  • Lower Tower Section with Hub and Blades

  • Setting the Nacelle

  • Setting the Hub & Blades

  • Finished Products

  • Integration

  • Harvest WindFarm Aerial Photo

    *Thank you for allowing me the opportunity to speak to you today at the _________ ______________________________ ______ _______ _ ___________ about Wolverine Power Supplys Renewable Future and our efforts to date.

    *These are the areas I will cover today.Please feel free to stop me and ask questions at any time during this presentation

    I will close by sharing with you some great pictures of the facility during construction.

    Referred to as the alphabet soup era

    REA, CCC

    Government subsidized farmers to Get electricity to the rural areas *Farmers than began installing their own diesel generators and putting up their own poles and wires.Not profitable for electric utilities to have one meter per mile or more, so they would not serve rural areasA light bulb in the barn and a light bulb in the kitchen, the cows were content and more importantly Momma was happy. Why not do more with electricity, milking machines, coolers, etc.More diesel generators, more poles, more wires, soon there was a huge immergence of Cooperatives

    *Here is todays footprint of what the Cooperatives serve*When it got too much for the farmers (cooperatives) to manage all the infrastructure they sought a solution*The G&Ts were born. The cooperatives or members hired people to manage the electric supply, maintain and expand the poles and wires, the G&Ts work for their members who elect people to serve on a Board of Directors within the G&T footprint * Wolverines Members

    *Wolverine is a not-for-profit Generation and Transmission cooperative providing wholesale power and related transmission services to their 6 members

    *Based in Cadillac, MI., Wolverine owns and operates approximately 200MW of generation and more than 1,600 miles of transmission lines that are under the operational control and jurisdiction of the Midwest ISO (MISO).Consists of 4 Distribution Cooperatives Cherryland in the Traverse City area and Leelanaw CountyGreat Lakes serving Northern Michigan primarily on the west side of stateTri-County Homeworks in the Lansing areaAnd Presque Isle serving Nothern Michigan on the East side of state*Wolverine owns and operates a state-of-the-art Energy Control Center near Cadillac which oversees its power scheduling with its generation, power supply counterparties and the Midwest ISO.

    *Wolverine took a proactive position in looking at not only the RPSs already in place in other states, but the reality of an RPS coming to Michigan.

    We also wanted to provide our members and customers the ability to buy MICHIGAN RECs and allowed Wolverine to demonstrate its commitment to the thoughtful use of environmental resources

    First utility scale project in Michigan, again, we took a proactive position and wanted to advantage ourselves in this burgeoning market

    Lastly, Wolverine felt that renewable energy would be important to future power supply requirements in that it provides for supply portfolio diversity and price certainty in that while the pricing is above the current traditional power supply we felt this project would provide for competitively priced power in the future.**Located between the villages of Elkton and Pigeon, MI in the Thumb areas Huron County.

    Covers 3,200 acres for proposed project and it is important to note that a project of this size will only take approximately 32 acres of the 3,200 out of farm production.*As you can see it took almost an entire year to get all the details hammered out before we reached accord and could start construction- Was actually signed on Valentines Day, February 14, 2007.*It is important to note that while the project covers 3,200 acres ONLY 32 acres would be taken out of farm productionTo date the facility has generated over 20,000 RECsRotor diameter = 82m or 269 *Let me start by telling you what resonated with Wolverine that led