Green light for Cross Winds

Michigan regulators this week gave the go ahead for Consumers Energy to speed up expansion of the 111MW Cross Winds project to ensure it qualifies for federal tax credits.

The state Public Service Commission in 2016 approved the utility’s plan to buy 52 GE turbines for the 44MW Cross Winds 2 and 76MW Cross Winds 3 wind farms in Tuscola County.

Consumers had intended to build phase three in 2022 but has now moved the construction start date up to 2019. Preliminary work on phase two started in 2016.

The company made ‘safe harbour’ payments to GE by the end of last year to secure the full production tax credit (PTC) for both projects, according to regulatory filings.

The combined cost of the two projects is estimated at $240m and they would generate about $100m in PTCs.

Consumers calculates that the installed cost for phase two will be $45 per megawatt-hour (MWh) and the cost of part three will be $46/MWh.

The expansions will feature 52 2.3MW-116 machines, while the original Cross Winds scheme, which came online in 2014, employs 62 GE 1.79MW-100 turbines.

Earlier this year, the commission approved Consumers’ engineering, procurement and construction contract with White Construction to build Cross Winds 2.

The deal includes an option to construct the third tranche.

Image: GE