The Michigan Public Service Commission (MPSC) has approved an application by Consumers Energy Co. to purchase a 166 MW wind farm in Hillsdale County.
Under the agreement, Crescent Wind LLC would design, engineer, build, start up and test the project, and upon completion, Consumers Energy would purchase the wind farm, located in Adams, Moscow and Wheatland townships. The project is expected to be in commercial operation on or before Dec. 31, 2020.
Consumers, in its request for approval of the agreement, said the Crescent Wind project would have a 31-year levelized cost of energy of approximately $48/MWh, provided Consumers qualifies for the full value of the federal production tax credit. That projected cost is lower than the levelized cost of energy of $57.75/MWh projected in Consumers’ renewable energy plan approved by the commission in February, the MPSC says.
Consumers said the installed cost for the Crescent Wind project is $1,506/kW – also lower than the assumed cost of $1,560/kW projected in the company’s renewable energy plan.
The commission notes that the full cost of the Crescent Wind Project will be recoverable under Consumers’ power supply cost recovery process.