Grand Haven City Council Demonstrates How They Listen to Experts

On August 7, 2023, the public got a glimpse of how the Grand Haven City Council will run the electrical utility should the public vote to dissolve the Grand Haven Board of Light and Power (BLP) and place the utility under the control of the Grand Haven City Council.

The video linked below should jump directly to the exchange which lasts approximatly two minutes. (1:32:30)

Dave Walters is the General Manager of the BLP. The agenda for the August 7, 2023, Grand Haven City Council meeting contained an item that proposes zoning changes to remove the allowance for power-generating facilities along the waterfront, including at the site of the former JB Sims power-generating facility on Harbor Island. As the General Manager of the Board of Light and Power and an expert in the power generation industry, it would seem the city council should seek out and consider his input, but that is not what happened.

During the initial public comment portion of the meeting, Walters addressed the board. (27:50)

“Recent governance practices, however, used by some on the board and council, to provide such control and direction, to the city’s electric utility department management and staff are the subject of my comments tonight.

Myself, and those that work for me, are concerned by those that work in public office, and those campaigning for office, which have mischaracterized the utility’s documented historical activities, and misstated the clear and transparent established public record. This should not come as a surprise to anyone. I’m wondering if actions tonight, and the supporting materials provided, are just another cheap shot attempting to gain political points at our expense. Without allowing us an opportunity to respond in an open and transparent manor you all espouse.

I’m referring specifically to item 11F, that was apparently placed on your agenda tonight by one candidate running for public office, to cast a positive light on two others running for public office, while displaying other elected officials currently on the board in a more negative manor. I’m asking why anyone would call for such unnecessary and meaningless reviews by the planning commission at this point; the night before a primary election; misconstruing the board’s documented discussion and action in the process.

Accordingly, during your discussion tonight on this agenda item, I’m asking the council to consider my further written comments below, that more specifically review the premise of the Cummins support memo to council, page 142, of your meeting materials, and compare it to the public record of the board meeting discussions and actions referenced therein, and other documented actions of the board and council relating to this issue. I am pleased to provide these further comments and supporting documents and recordings to anyone else in the public interested in them.

I would recommend that council table consideration of this clearly unnecessary recommendation and action at this point if the council doesn’t have time to review this further clarifying information at tonight’s meeting.”

(1:17:00) Later during the meeting, Council Member Ryan Cummins introduced the motion. Cummins then discussed a permit held by the BLP that was “set to expire later this year,” and implied the BLP may try to revive the construction project of a power generation facility on Harbor Island.

Both Mayor McNalley and Fritz noted that the future is unknown, and Harbor Island is the location of a lot of power infrastructure. The planning effort for land use for Harbor Island is set to begin in October 2023, and the BLP cannot build a plant without the approval of the Grand Haven City Council. Mayor McNalley was not pleased with this resolution. She called it, “an unnecessary slap at the BLP.”

Council Member Karen Lowe continued to distort the reasoning of the permit extension. “It was the BLP who extended their permit to build a peaker plant. They did that in March, and received an 18-month extension by the Department of Environment, Great Lakes and Energy (EGLE), so that they could build through November 2024. So, to me, that’s intent to do something actively. They extended their permit. Why would you not just let that permit um, collapse?”

At that point, Dave Walters stood up to provide insight. As General Manager for the Board of Light and Power, he could explain why the permit was extended, but Council Members Lowe and Cummins did not want him to speak. They used their power as elected officials to “call to question,” meaning they ended discussion and forced a vote on the resolution.

So, what is the true reason the permits were extended? During the March 16, 2023, BLP meeting, the renewal of the permit was discussed. The process for obtaining a permit is time consuming and expensive. Although the BLP did not intend to build a power-generation facility, they felt renewing the permit kept options open for the citizens of Grand Haven.

Here is the recommendation provided by BLP Engineering Manager Eric Booth during the March 16, 2023 meeting.

“When you're issued a permit to install, you have a timeline for when you need to break ground. It's typically 18 months, and we're coming up on that timeline now. It's in May, the first part of May. So, you have two choices. You can either leave this to void and do nothing, or you can request an extension.”

He continued,

“My recommendation is for the Board of Light and power to submit an extension request on the permit to install a new combined heat and power plant. The request for a permit extension does not mean that the utility will pursue the project. The board currently possesses a permit to install dispatchable at command generating assets. The permitting process is lengthy, and it's costly. Leaving the permit to void based on the volatile ever-changing and constantly evolving electrical markets, is not recommended. Recent examples include rising capacity prices in the Midcontinent Independent System Operator (MISO) region, which include reaching the cost of new entry in the last two annual capacity auctions along with unprecedented volatility and energy prices.

In addition, market requirements and conditions are being adjusted, by regulatory agencies that oversee the regulation of the electrical grid. MISO recently changed the planning reserve margin requirements from a single annual capacity requirement, based on the summer peak, to a seasonal resource adequacy requirement, due to the increased levels of intermittent generation, added to the system, along with the retirements of base load generating assets. As Michigan continues to retire base load assets, and increases renewable intermittent resources, the need for peaking generation does grow. Battery storage will play a very important role in managing daily demands, but some level of thermal resources, natural gas, hydrogen, a combination of the two, will be necessary to handle the seasonality of renewables.

The seasonal requirements for capacity as outlined in the BLP's most recent position report, that you have in front of you tonight, indicate that Grand Haven needs to account for capacity, 65.4 megawatts in the summer season, 57.8 megawatts in the fall, 52.2 megawatts in the winter, and 55 megawatts in the spring. So, for reference, the current capacity available from our renewable energy power purchase commitments, range from 9.753 megawatts in the summer, 9.531 megawatts in the spring, 8.044 megawatts in the fall, and only 2.913 megawatts in the winter.

Therefore, as we move towards a higher level of renewables in our power supply portfolio, and we will be moving to a higher level, there will be a need for capacity resources. The options include either buying them from others, or building them yourselves. For these reasons I believe it's prudent to request an extension to the permit to install. It provides an option that the community may never pursue, but is available to them if determined necessary and desirable at a later date.”

Furthermore, the handout provided to the Grand Haven City Council by Walters during his public comment on August 7 explained, “As directly quoted in the memo from its meeting minutes, the Board resolution of concern approves an extension request for the permit to install a “Combined Heat and Power Plant,” not a “natural gas peaking plant.” In other words, the permitted facility was never to serve only as a “power generating facility” within the district, but also a “heat generating facility” for the city’s downtown snowmelt system, which required it to be near the downtown snowmelt system within the waterfront zoning district.”

Walters also clarified that it was the City of Grand Haven who directed the BLP to construct a replacement plant on Harbor Island, despite statements made by current council members that imply the BLP might try to revive the cancelled project. “The record clearly shows the Board was directed by Council in November, 2018 (in response to earlier community concerns on shutting down Sims without a replacement snowmelt heat source) to construct a much larger Combined Heat and Power Plant and “partner” it with the City’s snowmelt system.”

Unfortunately, the city council did not consider this input before voting on the resolution.

Community members in attendance seemed unhappy with the way the Grand Haven City Council handled this matter. Grand Haven resident Jim Hagen expressed his concern in the following public comment.

“I was part of the effort that prevented the fossil fuel, natural gas, peaking plant from being built on the island. Instead, I proposed, numerous times, putting solar out there, pollinating garden, all sorts of great stuff. I was told by, I think pretty much everybody up there, that it’s too early, it’s too early, it’s too early, it’s too early. We have this planning process going on. We’ll be happy to listen to you in maybe two or three years, when you know, HDR is ready to listen to you.

Well, all of a sudden, it seems like things are changing. You know the BLPCCC group wants you guys to move faster, so I see you guys are moving faster for them. It’s not something I want as the public. I want to see things happen with power. I want to see at the state park, parking canopies with solar. Now it’s been suggested, maybe we’ll make little carve outs.

I just don’t like this approach. We said we are going to do planning. We should do planning. Everything should be on the table. We shouldn’t be ruling out things piecemeal. It’s so disappointing. The night before the election to have all this stuff appear. It’s just one more example of things getting pushed into council. We saw it Thursday night. That’s not the way to run a city government, people.”

Grand Haven’s November 7, 2023, ballot will contain a proposal to place the Board of Light and Power under the purview of the Grand Haven City Council. Do you support a city council that refuses to hear expert opinions and recommendations when making decisions regarding your power?