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Council approves 25-year GRDA base-load contract at 1.5 MW and agrees to sell RECs

Baldwin City Council · March 19, 2025
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Summary

Baldwin City Council voted to approve a 25‑year contract with Grand River Dam Authority (GRDA) for 1.5 megawatts of base‑load capacity and also authorized sale of renewable energy credits; council debated capacity needs, community solar options and risks of relying on the day‑ahead market.

Baldwin City Council voted to approve a 25‑year contract with the Grand River Dam Authority (GRDA) for 1.5 megawatts of base‑load capacity, after staff and the budget and finance committee presented modeling that balanced contracted capacity, the city’s own generation and planned municipal/community solar.

A staff summary described the municipality’s existing 3 MW GRDA contract and the recommendation to reduce contracted base load to 1.5 MW — combined with new solar capacity — because of high capacity costs and the city’s internal generation. A budget/finance presenter summarized the committee’s modeling: "So what we modeled here was a GRDA contract of 1.5 megawatts and additional community solar of 3 megawatts," which kept the city slightly positive on accredited capacity through 2029 under the assumptions used.

Council members discussed tradeoffs between purchasing contractual capacity and buying more energy on the day‑ahead market. The presenter emphasised the protection the city’s own generation provides in extreme events and noted that accredited capacity values on older generators decline over time, increasing the need to plan future replacements.

The council also approved selling Baldwin City’s renewable energy credits (RECs); staff said selling RECs could net around $30,000–$50,000 this year and roughly $20,000 per year thereafter depending on market conditions.

Motion and vote: An unidentified council member moved to approve a contract with GRDA for 1.5 megawatts of base-load power for 25 years; the motion was seconded and passed by voice vote. The prior motion to sell RECs also passed by voice vote earlier in the meeting.

The council did not record a roll-call tally in the meeting transcript; votes were taken by voice. The approved contract commits the city to a 25‑year purchase‑power agreement for the stated capacity level; council and staff said any further changes to the city’s generation mix (e.g., new municipal solar or replacement generators) would adjust future capacity planning and could reduce dependence on long-term external capacity purchases.