Concerned citizens filled the chairs at an Alger Delta Electric Cooperative meeting at the Powell Township Elementary School, in Big Bay, Michigan, last Monday, February 18. While some members had questions regarding power improvements to Big Bay Co-op members, the majority expressed opposition to Alger-Delta’s plan to service a potential Kennecott Eagle Mine site.

Some members expressed frustration that Alger-Delta advertised the meeting to the community as simply concerning a residential upgrade and that Powell Township members would “benefit from these changes.” A letter sent to Big Bay members made no mention of Kennecott’s project. The meeting, however, consisted entirely of a power-point presentation on servicing the Kennecott Eagle Project.

Tom Harrell, Alger-Delta’s General Manager confirmed that, not only is Alger-Delta willing to service the mine project, but the board, itself, actively solicited a contract from Kennecott. This conflicts with comments given in an interview with Mining Journal reporter Miriam Moeller, when Harrell stated that Alger-Delta was “asked to provide electricity to the Kennecott mine.”
One member commented that Alger-Delta initiated a contract without full agency approval of Kennecott’s mining plans. In fact, Alger-Delta solicited a contract from Kennecott well in advance of even DEQ and DNR approval of the company’s project. At the meeting, Darryl Small, board member from Big Bay, confirmed that Alger-Delta began discussing the project with Kennecott “about 8 months ago,” or around June of 2007.

Harrell suggested that Alger-Delta “will be more transparent” in the future.

Other concerns involved Kennecott’s own secretiveness with its mining plans as the company claims to provide full disclosure to the public. Kennecott had previously suggested that it would not run power lines to its mine site and has not informed the public over plans to construct a rail loading dock, a road going south, from the mine site, toward Humboldt, or a processing facility, in Humboldt. The State and Department of Environmental Quality (DEQ) did not require Kennecott provide information on its transportation and power plans in the Eagle Project application. This has afforded Kennecott the luxury of minimizing the perceived impact of its mining project.

The planned Powell Township upgrades would cost Kennecott a reported $6.4 million and include a new substation on County Road 550, outside of Marquette, construction of a new service station at the intersection of county roads 550 and 510, and a new overhead line from the substation to Big Bay. The roughly 13-mile line traveling from 550 to the Eagle Project site would mostly be underground and follow 510 and the Triple A road, allowing Alger-Delta to utilize existing county right-of-ways and eliminate the need for new easements.

Harrell commented that, in discussions with Kennecott the two parties agreed to remove the power lines “once mining ceases.” A few members requested further clarification on whether this item suggests that the power lines would remain if additional projects are permitted in the area. Harrell was asked if Alger-Delta would potentially supply power to 6 additional Kennecott projects, as well as others by companies like Prime Meridian Resources. One member requested that the item be more specific in the actual contract.

Harrell said that, while he understands the project is controversial (over 80% of registered Powell Township voters oppose the Eagle Project), members can not exclude other potential members: “You don’t get to vote on who gets electricity and who doesn’t,” he said. “No matter how much we may agree or disagree with their type of business, members don’t get to vote on whether they get electricity.” When questioned, Harrell did admit that Alger-Delta bylaws do allow for members to file petitions to the cooperative board regarding board actions, an action members may potentially utilize to deny Kennecott electric service.

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