Three representative of Wolverine Power Cooperative addressed the workshop session of the Sumpter Township Board of Trustees on June 8, explaining who they are, that they want to be friends, and that they might move the generators they just bought in Sumpter to a location in northern Michigan.
Wolverine was represented by Craig Borr, executive vice president; Brian Warner, director of environment; and Mick Raschke, chief plant operator in Sumpter.
Raschke was hired from FirstEnergy who built the natural-gas-to-electricity peak generating plant on Rawsonville Road in Sumpter in 2002 and then sold it to Wolverine early this year. Wolverine took over operation April 1.
“The Sumpter Township facility is very, very valuable because it uses natural gas fuel, especially if the Cap & Trade carbon tax is passed,” Borr said.
He said it depends on federal carbon legislation. He said such a plant can come on line quickly when the wind doesn’t blow to move its wind turbines Up North.
“We have the ability to move the plant to Northern Michigan, but it’s nothing we plan to do short-term. It’s an option for the long-term,” Borr said.
Borr said Wolverine has two issues with Sumpter over the generating facility.
One is the property classification issue: real vs. person property. FirstEnergy filed an appeal with the Michigan Tax Tribunal and then Wolverine stepped in.
Borr said Wolverine will need a conference with township officials on this.
“It’s not our style to come in and strong-arm,” Borr said, adding they want to be sincere and honest, but they have an obligation to their owners and members of the cooperative to operate at the lowest cost. The cooperative runs on a not-for-profit basis.
The generating plant is a peak-use producer of electricity, and just ten days earlier the plant was called on to supply an electrical load to the Midwest market. When there is a period of hot weather, electrical use goes up, Borr said.
“We’re the type of board you can’t offend,” said Sumpter Supervisor Johnny Vawters, noting the township wants Wolverine to give them straight talk.
“Someone [FirstEnergy] came to the Board of Review and didn’t get what you wanted,” Vawters said. “It was sent to the county and state. We have established a good relationship, but we don’t want you to move the turbine nowhere.”
Borr said the generators could be used anywhere and could be converted to a combined cycle in Sumpter.
“There is no intent to immediately move those facilities,” Borr emphasized, adding the decision will be made in conjunction with federal carbon rules. He said the natural gas fuel has a smaller carbon footprint than what Wolverine currently uses.
He said the federal legislation has passed the U.S. House and is expected to go to the Senate next month.
“It would happen over a number of years,” Borr said, of any move.
He was asked how many people work at the plant in Sumpter and replied there are three and none live in the township.
Borr said if the Sumpter plant was converted from peak use to continuous operation, the number of employees would rise to about 20 workers. He said the workers, members of IBEW (International Brotherhood of Electrical Workers) union, are highly technical and haven’t had a grievance with Wolverine in 15 years. He said qualified Sumpter residents would be able to apply for jobs if that happened.
Warner said currently the Sumpter plant is allowed by the Federal Energy Regulatory Commission to operate 2,000 to 3,000 hours a year, but it actually runs more like several hundred hours.
“Typically on the hottest days of the year it would be operating,” Borr said.
Wolverine provides wholesale energy and transmission to six member organizations in its cooperative servicing 35 counties in upper Michigan, with headquarters in Cadillac.
Borr said Wolverine has a sparsely populated customer base, but serves a wide, rural area, offering only wholesale sales.
Borr said Wolverine is much smaller than FirstEnergy, the previous owner. Wolverine’s delivery costs are high, but its energy costs are below Detroit Edison, he said.
“Sumpter is a pretty big asset in our fleet,” Borr said, adding its maintenance teams rotate throughout their facilities every seven years to cut trees, etc.
“We want to have an outstanding relationship with the Sumpter Township Board and we offer raw honesty,” Borr said. “Tell us if something’s not right.”
Recently Supervisor Vawters, Police Chief Jim Pierce, and Dispatcher Malissa Baker were guests of Wolverine for a tour through their Cadillac headquarters. Vawters reported they were “treated like royalty.”
In other business at the June 8 meeting, the board:
* Signed a 30-year water contract with the City of Detroit Water and Sewerage Department that had been negotiated by township attorney Rob Young and other officials to get the best rates. The agreement includes a voluntary program to get people to space out (restrict) their water usage during the day. Young said it’s a better contract than the township had before with Detroit;
* Officially approved the sale of the southeast corner of Willis and Sumpter roads to Jim Nasser, with the closing set for June 10;
* Approved having Michigan Lawn Management cut premises having noxious weeds violations, at the same price as the previous year;
* Heard engineering consultant Keith Uutinen explain the discussions going on for a second water feed from Detroit to the township, since if the single feed on Savage Road goes down now, the whole township is without water. He said the city is interested in building a two-mile water line to Carleton Farms for a cost of $2 million, but if Sumpter doesn’t want to pay the $650,000 to build the pit, Detroit wouldn’t do it. Uutinen said state the Drinking Water Revolving Loan Fund with its low interest rate would be “slam dunk” for the second feed and would cost the township well under $800,000;
* Heard Trustee Alan Bates announce the Technical Rule Violation prisoners will be back working in the township on June 14. Recently that program was cut;
* Heard Senior Director Denise Droullard said the seniors gave a going-away appreciation dinner for the TRV crew and are happy to hear they are coming back. She said to comply with drug testing laws, the township is joining a consortium;
* Heard Chief Pierce credit Leona Mixson with getting flowers and bushes planted in front of the police station. He also praised the citizens’ committee working on the millage renewal and the officers who worked on the Sumpter Fest parade and festival. He saluted the officers, while facing the cable camera;
* Was reminded candidates wishing to get on the ballot for the Belleville Area District Library Board election must file by July 15 at 4 p.m. at the Wayne County Clerk’s office; and
* Went into closed session to discuss union contract negotiations.