Growing Demand, Aging Facilities, and Economic Opportunity
The existing power line along County Rd. 550 was built in 1950. Physically, the line is near the end of its useful life. Many of the poles are old and weak from exposure. The wire is brittle and has been repaired countless times. The trees and brush are encroaching on the right-of-way. All of these conditions need to be addressed. Regardless of any future development, the Big Bay line will soon require either significant and costly maintenance or complete replacement.

Electrically, the existing facilities are adequate to serve our members' needs and Kennecott's initial load of approximately 1 megawatt. However, within about one year of beginning operations, Kennecott expects its demand for electricity to steadily increase until reaching a peak of 6.3 megawatts. This demand will far exceed the capacity of Alger Delta's existing facilities.

Alger Delta and Kennecott have worked together to reach an agreement that will allow the Cooperative to make much needed improvements to the system without having to borrow funds and recover the cost through rate increases to existing members. Under the agreement, Kennecott will take electric service from Alger Delta at its standard tariff rate for Large Power members. Kennecott will pay for the system improvements needed to acquire electric service, which will also improve service to Alger Delta's Big Bay area members.

Cost and Responsibility
Kennecott and Alger Delta have entered into an agreement that outlines service and payment responsibilities for both parties. The overall nature of the agreement is that Alger Delta agrees to provide electric service, and Kennecott agrees to pay for the service installation and facility upgrades required to meet the increased load. This "contribution in aid of construction" is typical in the electric industry and requires members to pay for some of the costs associated with a service request. Kennecott is paying the project cost in advance, in increments. Alger Delta has already received 40% of the project cost.

Member Benefits
All Cooperative members benefit from this project. Here's how:

1. Improved service along CR 550. This will benefit about 1,000 existing members in the Big Bay area.
2. Reduced outages and improved reliability.
3. Improved response time to other parts of our system. By reducing outages in the Big Bay area, Alger Delta will be able to respond to other parts of our system more rapidly and efficiently.
4. Reduced borrowing and reduced interest on debt. Because Kennecott is paying to rebuild the 1950's-era overhead line, Alger Delta will not have to borrow money to finance the upgrade. This contribution in aid of construction will save our members millions of dollars.
5. Reduced maintenance costs. New facilities require very little maintenance compared to facilities that are more than 50 years old.
6. Improved maintenance on other parts of the Alger Delta system. Dollars that would have been used to maintain the old Big Bay line can now be directed to maintain and improve other parts of the Alger Delta system.
7. Improved vegetation management. Dollars that would have been spent on vegetation management along County Rd 550 can be redirected to other parts of our system.
8. Diversity of the types of electric loads on our system and their operating profiles often produces savings on wholesale costs.

Alger Delta is committed to providing its members with the best and most cost-effective service possible while adhering to government and industry regulations and policies. Responding to Kennecott Mineral's need for power provides Alger Delta with a unique opportunity to improve service to all of the members.

Communicating with Our Members
Communicating with our members is an important function of the Cooperative. Alger Delta publishes and delivers Country Lines 6 times per year and it is a valuable source of information. In addition, Alger Delta maintains this website where members can find information about the Cooperative.

Alger Delta also provides press releases to the three major papers that circulate in our service territory: (The Escanaba Daily Press, The Marquette Mining Journal, and The Marinette / Menominee Eagle Herald), and these press releases typically provide stories about the Cooperative and late breaking developments.

Please check back for more information and updates as this new project unfolds.