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Norway set to sell excess credits for hydroelectric plant energy

Norway’s Sturgeon Falls Hydroelectric Facility is on the Menominee River off of River Road in Norway Township. (Daily News file photo)

NORWAY — After working through contract language, Norway City Council voted Wednesday to sell its excess Renewable Energy Certificates in a six-year deal with BP Energy.

RECs are tradable commodities that represent proof that electricity was generated from a renewable energy source and fed into the shared system of power lines. The city’s hydroelectric plant is capable of producing 27,000 to 30,000 RECs annually.

Clear Energy Brokerage and Consulting LLC presented an opportunity to enter into an agreement with BP Energy to sell a substantial number of RECs at a price of $5.50 per REC, the highest amount the city has ever received.

Over the life of the contract, the deal could be worth more than $800,000. The city needs to hold 15% of RECs produced in case the need to purchase power from a nonrenewable source should arise, City Manager Dan Stoltman said.

Council member Rico Meneghini said he consulted with Electrical Department Foreman Scott Hegy, who advised the city was unlikely to get a better deal in the future.

Meneghini asked Stoltman if the revenue would stay with the hydro department. Stoltman said since the money was not from directly selling power, it was not all bound to that department.

Mayor Candy Brew said she would like to see some of the money used to fix up the park at Strawberry Lake because funds otherwise never seemed available to do that work. Stoltman agreed that discussions need to take place so the money is used appropriately.

In other business, the council:

— Approved repairs to the water system’s wellhead one. In July a routine water sample tested positive for coliform and the city was required to chlorinate the water system for a few days. During that time, issues were discovered with the chemical feed system. Also, a damaged electrical conduit was found that would allow insects to get in, causing positive bacteria results.

The work will be done by M.J. Electric and FDS Engineering and Electrical Services at a total cost of $10,092.21. The project will be paid with some of what remains from the $100,000 American Rescue Plan grant the city received from Dickinson County.

— Accepted a $418,000 Technical, Managerial and Financial Support grant from the Michigan Department of Environment, Great Lakes and Energy that will be used for the ongoing lead service line inspections. Inspections now are being done with another grant that will run out by the end of the year.

— Approved projects at Marion Park. The Norway Diamonds will install a 10-foot warning track in foul territory, dugout to dugout, on Mike Maule Field. Also, the infields of Mike Maule and Brackett fields will be top-dressed. The Norway Diamonds will spend about $4,400 on the projects.

— Granted event permits for the Leif Erikson Festival and Leif Run set for Oct. 12 in the downtown.

— Passed a resolution recognizing Oct. 6-12 as Public Power Week. The resolution states, in part, that the City of Norway joins hands with approximately 2,000 other public power systems across the country that put residents, businesses and community ahead of profits.

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