Detroit Edison Receives MPSC Approval for the Purchase of Power

Detroit Edison's recent agreement with Invenergy for the purchase of power valued at $1.1 billion and renewable energy credits received approval from the Michigan Public Service Commission. The 20 year agreement also provides the utility company an option buy a certain number of shares in the wind farm.

The energy laws of the state requires Detroit Edison, a utility company in the state to generate 10% of the power provided by it from renewable energy sources by the year 2015. The company is already purchasing 19 MW of wind generated power and renewable energy credits from a wind farm located near Cadillac and possessed by Heritage Sustainable Energy of Traverse City. According to Scott Simons, the company spokesman, the utility is planning to sign more such agreements to meet its set target of 600 MW by the year 2015. The company is also gearing up to construct one or more number of wind farms within Huron County to generate 100 to 200 MW electric power.

This approval will allow Invenergy to construct one of the largest wind farms in Michigan state. The wind farm to be located in a 30,000 acre complex close to Breckenridge, west of Saginaw will have 125 GE manufactured wind turbines. The wind project is anticipated to be commissioned at the fag end of the year 2011 and will employ 15 full time employees and produce 200 MW to supply electricity to 54,000 households.