DTE Electric approved for contracts on 100-MW wind project

The Michigan Public Service Commission on Dec. 18 approved an engineering, procurement and construction contract for DTE Electric covering a 100-MW wind project.

On Nov. 4, this DTE Energy (NYSE: DTE) subsidiary filed an application requesting ex parte commission review and approval of an engineering, procurement, and construction (EPC) agreement with Aristeo Construction Co. and a turbine supply agreement (TSA) with General Electric (NYSE: GE). The EPC agreement between DTE Electric and Aristeo is to design, engineer, procure, supply, construct, install, start-up, test, and provide related technical assistance for the Meade turbines. The TSA between DTE Electric and General Electric is to provide the turbines for the Meade Wind Park.

The contracts will result in the development of a company-owned wind farm that is anticipated to provide approximately 100 MW of nameplate renewable energy capacity. The TSA is the result of a request for proposal (RFP) which DTE Electric developed in consultation with the commission staff. The bidding criteria used by the company for the RFP were technical evaluation, operation and maintenance, Michigan sourcing and services, total cost of ownership, financial strength and creditworthiness, commercial terms, and safety program.

The closed-bid turbine RFP was issued on Feb. 17, 2014. By the due date of March 31, 2014, DTE Electric received seventeen proposals from six suppliers. DTE Electric completed negotiations with one supplier, General Electric, and the executed TSA is the result of the negotiations.

In its application, DTE Electric estimated the installed cost for the Meade Wind Park is $2,170 per kilowatt (kW), which is less than the installed cost of $2,317 per kW assumed in DTE Electric’s renewable energy plan (REP). Additionally, the company estimates that the Meade Wind Park will have an average net capacity factor of 41%, which is higher than the estimate within the REP of 39%.

In comparison to the company’s previous wind development projects, the installed cost for the Gratiot County Wind Park was approximately $2,336 per kW, the installed cost for the Thumb Wind Farms was approximately $2,295 per kW, the installed costs for the Echo Wind Park was approximately $2,289 per kW and the installed cost for Pheasant Run II Wind Farm a/k/a the Brookfield Wind Park was approximately $2,200 per kW. 

The Meade Wind Park will be sited in Chandler, Colfax, and Meade townships in Huron County. Commercial operation is expected to occur on or before Dec. 31, 2015.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.