A municipal utility in Traverse City plans to generate all its electricity from renewable sources such as wind and the sun by 2040.

Traverse City Light & Power's board set the goal Tuesday during a meeting.

It's the first time a Michigan city has made such a commitment, Kate Madigan of the Michigan Environmental Council said.

The utility adopted an interim target of 40 percent renewable energy by 2025, the Traverse City Record-Eagle reported.

Traverse City Light & Power has about 12,500 residential and commercial customers.

Wind and solar power and improved energy efficiency have become economically competitive with fossil fuels, executive director Tim Arends said. The utility's staff will develop a plan to achieve the goals, he said.