Big Rapids declines Consumers Energy renewable subscription after staff flags contract risks
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Summary
Commissionors rejected a resolution to join Consumers Energy's voluntary renewable program after city staff warned the agreement locks a subscription price with reconciliation that could increase charges and obligates up to 90% of power for 20 years with steep early-termination fees.
The City of Big Rapids voted against participating in Consumers Energy's voluntary renewable energy program after staff highlighted significant contract risks.
Ryan Bridal Bullinger, representing Consumers Energy, explained the program allows an organization to elect to power itself with a chosen percentage of renewable generation. "This program... is specifically for individuals that are wanting to power their organization, their municipality, or their company with a 100% renewable energy or whatever percentage they choose," he said.
City staff presented findings from a contract review that pointed to two major risks: first, a subscription-price structure described in the agreement locks in a per-kilowatt subscription charge (cited at 64 per kilowatt in staff notes) that is subject to reconciliation and could be adjusted upward by as much as 110% when final charges are reconciled; second, the agreement would require the city to source 90% of its power from the program for 20 years, and early termination would carry extensive fees potentially spanning the remainder of the contract term.
A staff reviewer warned the commission those reconciliation and commitment terms create financial exposure and recommended commissioners consider timing and withdrawal windows carefully before voting. After discussion, commissioners took a vote and the motion to participate did not pass.
The commission provided no direction to sign the contract at this time; staff will maintain the evaluation record for any future consideration of renewable subscriptions or different program terms.
