Chelsea approves power purchase agreement with Michigan Public Power Agency

By Seth Kinker,

The Chelsea City Council voted, on June 3, to enter into a power purchase agreement with the Michigan Public Power Agency (MPPA).

A hedge plan adopted by the city in 2009 that utilizes different types of energy for the city, has this year outlined as a year for the city to buy a small block of energy for Oct. and Nov. of 2019.

Since approving the plan, blocks have been approved yearly for different types of energy from different sources.

In Oct. the 372 MWh would be purchased for a total of $12,276 and in Nov., 648 MWh would be purchased for $20,736. With power supply costs annually projected in the cities budget, this purchase wouldn’t begin until the 2019-20 fiscal year (FY).

City Manager John Hanifan attributed the costs to a slight increase in power usage in town and also some of the older blocks of energy that were purchased, are expiring.

Seth Kinker

Reporter/Digital Media for The Sun Times News

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