Traverse City Light & Power lays out budget, fiber expansion and energy transition milestones

Traverse City Light & Power (TCLP) presented the utility’s 2025–26 operating and capital plan to the Traverse City City Commission, detailing a phase‑2 fiber expansion, smart‑grid investments and steps to meet a new state energy‑optimization mandate.

TCLP Executive Director Brandy Ekrin and Chief Financial Officer Carla Myers Beeman told commissioners the utility expects modest sales growth in 2025–26 and is budgeting for higher purchased‑power costs driven in part by regional market pressure and the decommissioning of coal units. Carla Myers Beeman said the Campbelt coal plant will be decommissioned at the end of the month and that the utility is not replacing that generation 1-for-1.

Key actions and timelines: TCLP reported that core construction for phase‑2 fiber — the fiber network that will connect the remainder of the city — is expected to complete in late October 2025; service availability to customers will roll out by neighborhood as construction finishes and subscribers can be connected on a rolling basis. TCLP staff estimated early hookup times of one to three days after customers sign up, though that timing could vary with demand and contractor availability.

Renewables and generation changes: TCLP said two solar projects are coming online: an MPPA Calhoun Solar facility entered commercial operation in March 2025, and the MPPA Whitetail Solar project is expected to begin in September 2025. The utility also reported it will meet its 40% renewable energy goal for the 2025–26 fiscal year and said its investments since 2018–19 have reduced carbon emissions by 54.5%.

Plant conversions and storage: TCLP described conversions at the Bell River coal plant to natural‑gas “peaker” units, with Unit 1 conversion expected in September 2025 and Unit 2 in September 2026; staff framed the conversions as emission‑reducing steps. TCLP said it is planning smaller demonstration projects for renewable energy plus battery storage pending external grant funding.

Rates, mandates and customer programs: Carla Myers Beeman summarized rate considerations and mandated programs. TCLP will not implement a base rate increase this year but will implement two mandated surcharges: an energy optimization surcharge tied to Michigan Public Act 229 of 2024 (the state requirement for energy‑savings programs) that TCLP staff will study June–August 2025 with a planned public hearing in October, and a LIHEAP administration surcharge of $1.25 per meter starting Oct. 1, 2025, with funds intended for low‑income energy‑assistance programs. TCLP also plans a time‑of‑use billing transition beginning with December consumption and first bills in January 2026.

Operational notes and staffing: The presentation listed a modest increase in TCLP staffing to support fiber and customer service expansion and noted rising customer‑service personnel costs linked to phase‑2 fiber. The utility is also advancing technology and operational investments tied to its strategic plan, including pilot projects involving automation, AMI meter communications and exploratory AI uses for customer service.

Commission questions addressed resilience and policy uncertainty. Commissioner Treadwell asked whether mutual‑aid costs from the recent ice storm could create a financial burden; TCLP said crews provided regional aid and are invoicing for work and expected FEMA involvement; staff did not anticipate a long‑term rate impact. On potential federal policy rollbacks affecting clean‑energy incentives, TCLP leadership said the utility plans to meet its climate goals even without guaranteed additional federal funding and is moving toward an emissions‑driven goal that can include battery storage and other technologies.

Next steps: TCLP will present its energy‑optimization study results and hold public hearings on surcharge proposals later this year; the utility will continue phase‑2 construction and post schedules so residents can track neighborhood rollouts for fiber service.