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Chelsea council approves initial Consumers Energy payment and a power capacity purchase through MPPA
Summary
Council approved a $71,160.50 initial payment to Consumers Energy for an Industrial Substation upgrade (pending an amended agreement) and authorized a power capacity transaction via Michigan Public Power Agency worth $45,705.60 through 2024.
Chelsea City Council on Sept. 19 approved two electric-department actions to support local power capacity and infrastructure upgrades.
Utilities Director Ray Schmidt briefed council on the Industrial Substation upgrade and requested authorization for the initial 25% payment to Consumers Energy of $71,160.50; council approved the payment contingent on an updated amendment to the original agreement. Schmidt also asked the council to authorize a capacity purchase consistent with the city's adopted Hedge Plan (2009). The council approved a Power Purchase Commitment through the Michigan Public Power Agency for $45,705.60 covering capacity through 2024 and authorized the Utilities Director to sign on the city's behalf.
Both approvals were recorded as unanimous voice votes. The amended agreement and repayment schedule for the consumers-energy payment were described as forthcoming.
