For over 100 years, the Board of Light and P has been generating electricity needed by homes and businesses in Marquette. But it’s not been easy: the coal-burning generation units are complicated machines, constantly needing to be shut down for maintenance or repairs, and break down when parts fail often taking a week or two or three to get fixed.

So the BLP has always had redundant generating units that can be started up if one (or more) units break down, thus keeping the lights (and other electrical devices) working.

In recent years, Shiras Unit No. 3 (producing up to 44 megawatts) and Shiras Unit No. 2 (with 22 MW) plus the hydros (2-3 MW) must often run simultaneously in order to supply the electricity needed. If No. 2 has a breakdown, the BLP’s Combustion Turbine (22 MW) can fill in very nicely. BUT if Unit No. 3 should break down, or Units 2&3 break down simultaneously, the BLP would be desperate to find power.

Fortunately, since the mid-1990’s, the BLP has purchased power from companies hundreds of miles south of us, which has been sent to Marquette via transmission lines — preventing blackouts or rolling/partial black-outs.

Then, in October 2014, the BLP was informed by MISO (the grid operator) that the transmission line had become so congested or clogged (from other utilities using it) that power availability in the future for the BLP could no longer be assured.

MISO said they wanted a second transmission line built to the Marquette area, and wanted the BLP to pay $99 million over the next 33 years to help make that possible.

They further indicated that this second line would not be built for some years (probably because additional money from other companies was needed to fund it). And, if built, the price of this power itself could easily skyrocket in the coming decades.

Lacking enough generation reduncy, and now without assurance that the grid would help, the BLP launched a furious examination of generation alternatives, and working with engineering consultants, the BLP settled on three Wartsila quick-start engine/generators burning natural gas or fuel oil to provide a total of 50 MW of new generation to assure power availability. Construction can be accomplished over the next 20-24 months. The Wartsilas will also generate some power year round, enameling Unit No. 3 to rest so that its longevity can be extended. And as installation of solar panels grow, the Wartsilas can seamlessly replace the power lost as night descends.

The BLP is seeking bonds of $72.7 million for the Wartsila engine/generators, plus $4.3 million for capital projects, primarily for the distribution system.

However, the bonding company indicates that lower interest rates on the bonds might be secured if the currently outstanding $2.7 million bonds from the Tourist Park Dam project are rolled into this new financing request (and simultaneously paying off the $2.7 millions a separate debt). So the total amount of new bonds would be $79.7 million

The BLP is pleased to have earned an AA credit rating which will apply to these proposed bonds. And Marquette city’s finance director has indicated these BLP’s bonds shouldn’t negatively impact any future bonding by the city.

So, we now have a clear picture of the cost of electrical generation necessary to assure BLP customers that blackouts can be avoided/minimized (especially in the winter), should Shiras Unit No. 3 have a breakdown.

The bonding agency calculated that it would take a 30 percent rate increase for the BLP to pay off the bonds. A person gulps when hearing that number, but it was financial experts who certified those calculations.

So this is like taking cod liver oil; it’s precisely what the doctor ordered, and what you must take for good health. Because reliable power is so critical, and 50 KW of new generation will provide that, your BLP Board unanimously approved this rate increase and sent it to the city commission, where it was approved on a 4-3 vote.

This project is already moving forward. Engineering firms and BLP staff are addressing soil boring, foundation parameters, substation connections, etc., and they are being pressed to reduce the costs.

The Wartsila engines are scheduled to arrive in late 2016 (in time for the boat to return through the St. Lawrence.

Editor’s note: David Carlson of Marquette is a member of the Marquette Board of Light and Power board.