Photo: The Toledo Bend Dam 80 miles northeast of Beaumont, Texas, on the Sabine River created the Toledo Bend Reservoir. Photo: Texas Water Development Board.

At its November 25, 2024, meeting, the Chelsea City Council approved a significant addition to the city’s green energy portfolio—a nine-year commitment to hydroelectric power. This marks Chelsea’s first foray into hydro power, aligning with the city’s ongoing decarbonization efforts and compliance with Michigan’s Public Act 235 requirements.

City Manager Marty Colburn highlighted the uniqueness of the project: “It’s hydro, which is something we do not have in our portfolio… This particular one, hydro, is controlled to where it’s ongoing, 24/7, 365 days out of the year.”

The hydroelectric energy will be sourced from the Toledo Bend facility, located on the Sabine River, a massive waterway straddling Texas and Louisiana. Unlike solar and wind energy, which are subject to weather conditions and variability, hydropower offers consistent energy production. “This is a diversification strategy for us,” explained Patrick Bowland, CEO and General Manager of the Michigan Public Power Agency (MPPA). “The energy is coming around the clock, 24/7, with no variability.”

The project’s cost will not exceed $6.17 million over nine years, providing Chelsea with 1.2 megawatts of hydropower, equating to 9.3% of the city’s forecasted energy load. The deal also includes renewable energy credits, further boosting the city’s renewable energy compliance.

Council members expressed support for the initiative, noting the importance of sustainability and diversification in energy sourcing. The motion to approve the power purchase commitment passed unanimously.