Traverse City's Wind Turbine Headed for History

Traverse City Light and Power’s first wind turbine has sat idle at the corner of M-72 and Gray Road since August 2012. After mechanical failures, attempts to replace the broken motors, multiple consults, and a staff recommendation, TCL&P has given up on the turbine and is now in the process of issuing an RFP for decommission and removal.

According to internal TCL&P documents, the cost of restoring the turbine to full power would exceed $17,000, with a strong possibility of additional failures in the future.

“The turbine has been operational for 18 years and is now nearing the expected industry standard life of twenty years,” says Jessica Wheaton, TCL&P’s marketing and community relations director. “The technology of wind turbines has greatly advanced since the installation in 1996, creating an environment where it is difficult to find replacement parts and expertise to repair the aged turbine. The industry appears to be more focused on manufacturing new wind turbines rather than retrofitting old turbines and extending their life expectancies.”

TCL&P has no plans to replace the turbine in its current location, and the lease on the property was set to expire in 2019.

“The site cannot be repowered with a new turbine because an operationally economical turbine to replace the current turbine must be much taller to operate at a more efficient level,” continues Wheaton. “The township currently has height limitations preventing the installation of a taller turbine; the most efficiency for wind power today is when many turbines are clustered together creating ‘wind farms.’”

When it was commissioned in 1996, the M-72 turbine was the first utility grade wind turbine in Michigan and the largest of its kind in the United States. In order to offset the capital cost, TCL&P developed a program called “Green Rate,” which allowed customers to opt in to pay more on their monthly bill.

The capital cost of the turbine is $785,616 and, when adding operational expenses to date of $396,278, the total cash outlay of the turbine is $1,181,894. After collecting Green Rate revenue of $107,200 and avoiding purchase power costs of $386,241, the turbine remains a deficit investment of $688,453. This lack of economical feasibility, coupled with the absolute inability to replace or repair the defective yaw motors, failed hoist and failed RCC unit, led to staff’s recommendation to decommission the turbine.

TCL&P has no plans to establish another wind turbine at this time; it receives dedicated power from five wind turbines in McBain.

“The TCL&P board is currently going through an in-depth education process to determine the needs of the utility now and in the future,” says Wheaton. “While the utility strongly supports maximizing its renewable energy portfolio in a fiscally responsible way, no decisions will be made until the board has fully determined the direction the utility should take through its power supply education initiative.”

As for the defunct turbine, TCL&P is currently fielding inquiries from interested parties and will finalize potential sale and removal plans in the coming months.