Regulators in Wisconsin have approved We Energies’ plan to invest about $1.5 billion for construction of two new natural gas-fired power plants in the southeastern part of the state.
The Public Service Commission of Wisconsin on May 22 said it backs the utility’s proposal for gas-fired facilities in Oak Creek in Milwaukee County, and Paris in Kenosha County. The 1,100-MW Oak Creek plant, with a price tag of about $1.2 billion, will help replace generation from coal-fired units at the South Oak Creek plant. Two coal-burning units at that facility closed last year, and the remaining two are scheduled for closure later this year.
The new gas-fired Oak Creek plant is expected to feature five simple-cycle combustion turbines.
The new 128-MW plant in Kenosha County would be designed to add generation to a region that has an existing gas-fired peaker plant in Paris. We Energies plans to begin construction of both the Oak Creek and Kenosha County power stations this year.
The new facilities are part of We Energies’ strategy to invest more than $2 billion in the utility’s natural gas infrastructure. We Energies’ officials have said they expect demand for electricity will increase across southeast Wisconsin, due to the development of energy-intensive data centers along with other industrial growth.
“The Commission’s decision today is an important next step in our efforts to meet growing electric demand across southeast Wisconsin. We are making the grid cleaner and greener while ensuring the lights stay on—no matter the weather—because we know that’s what matters most to our customers,” said Mike Hooper, president of We Energies, in a statement.
We Energies in a news release wrote that both projects “are part of We Energies’ ‘all of the above’ power generation approach that is focused on customer reliability and affordability. In the coming years, the company is planning to close older, less efficient power plants, and invest in a balanced mix of wind, solar, energy storage and natural gas.”
WEC Energy Group, parent of We Energies, announced plans last year to increase its natural gas-fired generation capacity. The company, through its subsidiary WEPCO—which is known as We Energies—asked state utility regulators for permission to bill ratepayers for two new gas-fired power stations, along with a $456-million liquified natural gas storage facility, and a 33-mile, $186-million pipeline to supply the proposed new plants. WEC Energy Group has said the gas-fired stations will help it support integration of more renewable energy resources, and do not detract from the company’s goal to decarbonize operations by 2050.
Last year’s filing also said WEC plans to convert two coal-fired power plants—the Elm Road Generating Station in Oak Creek, and Unit 4 at the Weston plant near Wausau—to burn natural gas. The group last year in a filing with the Securities and Exchange Commission said it plans to end all coal-fired power generation in its fleet by 2032.
—Darrell Proctor is a senior editor for POWER.
