Wisconsin Public Service applies for power plant permit
Wisconsin Public Service Corp. made its plan to build a new electricity-generating unit at Fox Energy Center in Kaukauna official Wednesday, applying for permission from the state Public Service Commission to build the plant.
The Green Bay-based utility wants to build a 400-megawatt, natural gas-fired, combined-cycle generating unit at the Fox Energy Center in the village of Wrightstown on U.S. 41 between De Pere and Appleton. WPS estimates the project will cost $517 million.
The plan to build the power plant is caught up in concerns about a proposed acquisition of Integrys Energy Group, WPS's parent company, by Wisconsin Energy of Milwaukee. Among other concessions, the Milwaukee Journal Sentinel reported, opponents would like to see WPS cancel or delay plans for the new generator. WPS spokesman Kerry Spees said the company has to proceed with long-range planning.
"We have to make decisions for our customers and the best decision is to move forward," Spees said. "The studies say this is the best thing to do to meet our needs in 2019. It's the right site, it's the right time, it makes great sense."
The company estimates it will need 400 to 500 megawatts of additional electricity by 2019. It operates coal-fired power plants in Wausau and Green Bay that it might take out of service rather than spend millions for upgrades to meet increasingly stringent environmental regulations. The amount of time it takes to plan and build a power plant, including getting regulatory approval, means utilities have to work well in advance of need.
Fox Energy Center has two natural gas-fired generating units that produce nearly 600 megawatts. Combined with the new unit, they could power more than 500,000 homes.
The Public Service Commission will hold public and technical hearings during the spring and summer. A ruling could come in the third or fourth quarter. The PSC could approve, modify or deny the request.
"The application is going to be gone over thoroughly," Spees said.
The most recent Strategic Energy Assessment by the PSC estimated the state will not have surplus electricity-generating capacity by mid-2018, primarily because of the planned retirements of coal-fired plants, said Paul Spicer, WPS vice president of Energy Supply.
He said owning generation instead of buying electricity from other producers makes it easier for the company to control costs and reduce risk. Economies of scale also play a part in the decision.
"We are able to take advantage of existing cooling water and intake structures, as well as the electric transmission facilities and natural gas pipeline already in place at the site," he said.
PSC commissioners declined in December to delay the timeline for deciding on the $9.1 billion acquisition of Integrys by Wisconsin Energy. Other regulatory approvals will be needed as well.
— rryman@greenbaypress gazette.com and follow him on Twitter @RichRymanPG or on Facebook at Richard Ryman-Press-Gazette. Contact him at (920) 431-8342.