The Combustion Turbine Project (CT Project), consists of (a) a Pratt & Whitney FT-8 55 megawatt (nominal nameplate rating) simple-cycle combustion turbine generating unit fueled with natural gas located in Kalkaska County, Michigan, (b) natural gas pipeline and metering equipment to connect the generator to the natural gas facilities, (c) a 69 kV electrical line tap and associated electrical protection and relaying equipment necessary to deliver the output of the CT Project to the transmission system owned by Wolverine Power Cooperative, and (iv) an undivided ownership interest in designated extra-high voltage electrical transmission lines.
The CT Project is located in Kalkaska County, Michigan, approximately 1.6 miles southwest of the town of Kalkaska. The Project was completed and placed in commercial operation in December 2002. The combustion turbine generating unit has a nominal rating of 55 megawatts and is comprised of two simple cycle FT8-1 aero derivative natural-gas fired combustion turbines, which drive a single electrical generator.
MPPA has developed an operating procedure for the CT Project whereby the unit is operated as a peaking resource on behalf of the Participants. Under this mode of operation, the Project is expected to operate (1) when power is at or near peak load conditions, (2) when an unexpected loss of a resource creates a need for capacity and energy for the MPPA members and the Project can supply the needed energy at a lower cost than is available from purchases from third parties, or (3) when the wholesale electric market conditions are such that the output of the CT Project may be sold to third parties at a price which will provide a reasonable net revenue benefit to the MPPA Participants. Under this operating mode, the CT Project is expected to operate less than 1,000 hours per year, which will reduce costs to the Participants by stretching the time between major overhauls.
MPPA has sold the entire output of the CT Project pursuant to Power Sales Contracts and Project Support Contracts with five Participants, all members of MPPA.