During a recent city council meeting, Mike Robbins, the director of public works, provided an update on two significant contracts related to the Bell River project, which has been a power source for the City of Petoskey since 1982. The contracts, originally established with the Michigan Public Power Agency (MPPA), are being updated to reflect changes in energy production methods and industry standards.

The Bell River Power Plant, located in Saint Clair Shores, Michigan, is currently a coal-fired facility with a capacity of 270 megawatts. However, plans are underway to convert the plant to natural gas, a move that is expected to reduce emissions by approximately 90%. This conversion aligns with DTE Energy's long-term planning and clean energy initiatives, which aim to modernize the state's energy infrastructure.

Robbins explained that the proposed contracts include a power sales agreement and a project support contract, both of which are essential for defining the relationship between the participating municipalities and the MPPA. The updates to these contracts are necessary due to outdated language and to incorporate the new natural gas operations.

The MPPA, which represents 11 municipalities including Petoskey, is seeking approval from all member cities to finalize these contracts. The updated agreements will allow for more flexible financing options, enabling members to choose between cash payments and bond debt for project costs.

Robbins emphasized that while Petoskey holds a small share of the MPPA's entitlements, the city is committed to participating in the modernization efforts. The council is expected to vote on the approval of these contracts, which will facilitate the transition of the Bell River plant to a more sustainable energy source.