Costs and Financing – Correction to DPSG White Paper #2

A group of concerned citizens within the Wixom Lake Association, the Dam Project Study Group (DPSG), has posted information on the WLA’s website which contains certain inaccurate and potentially misleading information.  Boyce Hydro Power LLC has brought this to their attention, but after several days the record has not been corrected.  See below:

  1. Company structure: Boyce Hydro LLC is the operating company retained by Boyce Hydro Power, LLC, the FERC licensee, which leases the dam from a business entity owned by the W.D. Boyce Trusts.
  2. Contracts for purchase of power and RECs:  Boyce Hydro Power, LLC’s Power Purchase Agreement (PPA) with Consumers Energy expires in 2022, and there is no certainty that it will be renewed at that time. Its agreement with Detroit Edison (DTE) for the purchase of Renewable Energy Credits (RECs) expires at the end of 2015 and there is no certainty that it will be renewed or at what rate.  There is no increase in the price for RECs on the horizon.  RECs are calculated on energy production, not income from other sources. If DTE does not renew, and a new buyer for RECs is not found, this source of income could dry up in just a couple of years.
  3. Potential for income utilization:  The White Paper lists the potential increase of income for all four of the Boyce Hydro Power FERC-licensed dams, not just Edenville.  However, the Edenville hydroelectric facility is a stand-alone business entity and it is incorrect to assert that revenue from the other entities can or will be used to pay the debts of another.

We appreciate the fact that there is a group attempting to get information to the public, however, for that information to be of value, it must be accurate.

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