Marshall Municipal Utilities (MMU) is moving forward with plans for a new generation facility to replace its turbine that’s been in service since 1968, according to a news release in the Marshall Independent. The proposed facility includes four 3-MW generators, with an estimated project cost between $16.7 million and $17 million.
MMU intends to fund the project partially through bonds, which will be repaid using revenue generated through a reserved capacity agreement (RCA) with MRES. Once operational, the generators are expected to create approximately $60,000 to $70,000
in monthly revenue for MMU.
RCAs allow MRES to contract for member-owned generation and have proved to be an economical, efficient way to meet capacity needs and enhance reliability. MRES currently has RCAs with 19 members for about 156 MW of member-owned generation through 2052. In recent years, MRES has made several adjustments to the RCA contracts to further incentivize member participation and better align with regional transmission organization rules. In 2022, MRES substantially increased the rate it pays members to $5 per kilowatt per month. Then, in 2023 MRES boosted the initial lump-sum payment it pays members through the RCA to help offset the costs of installing new generation.
Site preparation for the project began last fall. Pending final approvals, construction could begin in 2025, with delivery of the generators anticipated as early as the first or second quarter of 2026. The project reflects MMU’s commitment to modernizing infrastructure while maintaining cost efficiency for customers. It’s also a great example of how member utilities are leveraging the financial benefits of the RCA program to increase reliability both locally and regionally at no cost to their customers.
For more information on the RCA program, contact MRES Vice President of Power Supply and Operations Terry Wolf at info@mrenergy.com or 605-338-4042.