Varnum Blogs
DTE RFP Leads to NextEra
In 2010, Detroit Edison issued a request for proposal seeking up to 245 MW of renewable resources for a commercial operation date no later than December 31, 2014. The company received 146 proposals (from 46 prospective suppliers) that included wind, hydro, solar, landfill gas and biomass resources. Negotiations with three would-be suppliers ultimately led to a 120 MW power purchase agreement (PPA) with NextEra Renewable Resources LLC for its Tuscola Bay Wind LLC project in Tuscola and Bay Counties with deliveries to begin by December 31, 2012. Pricing is reported to be “up to $60.90 per megawatt-hour net energy delivered,” including RECs. The Michigan Public Service Commission staff found that the RFP process and the scoring procedures satisfied the Michigan Renewable Portfolio Standard guidelines, and the Michigan Public Service Commission (MPSC) has now approved the PPA.
