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Public utilities

Rejection of We Energies' Proposed Natural Gas Units Sparks Debate Over Clean Energy Alternatives

Strategic Insights

— 1 min read

As Milwaukee resident Ashtin Massie submitted public comments to the Public Service Commission of Wisconsin, she voiced concerns over We Energies' proposed natural gas units and associated infrastructure. Massie argued that these projects would unduly harm customers by raising their bills, polluting their community's air, and increasing We Energies' reliance on gas, a potentially larger reliability risk than assets.

Key Takeaways:

  • The proposed gas units and associated fueling infrastructure have an exorbitant and unreasonable price tag for customers, estimated at $2 billion.
  • The gas units are expected to run infrequently, at 10-20% capacity factors, making them economically unviable for customers.
  • Customer relief is unlikely, as EIA's latest Short Term Energy Outlook projects gas prices to increase further above today's high prices.
  • We Energies' already heavy reliance on gas in its generation mix exposes customers to volatile natural gas markets, making it more difficult for them to afford energy.
  • Clean energy technologies can be deployed for less on a levelized basis than the current proposal, with fewer risks for customers and their wallets.
  • The proposed gas units increase We Energies' reliance on gas, which increases customers' vulnerability to correlated outages that impact gas generation.
  • WEPCO's generation profile is predominantly made of gas generation, with 37.3% of its generation in 2024 coming from gas.
  • Clean energy has been proven to be a reliability asset in markets across the country, with grid operators able to operate grids with 75 to 100% clean energy without encountering reliability risks.

Statistics:

  • $2 billion: estimated cost of the proposed gas units and associated fueling infrastructure.
  • 10-20%: expected capacity factors for the proposed gas units.
  • 37.3%: percentage of GEN in 2024 from gas generation.
  • 43%: predicted system-wide gas generation by WEPCO's parent company by 2030.
  • 60 years: duration of the Oak Creek coal plant's operation in Milwaukee.
  • 75 to 100%: percentage of clean energy penetration in some US power grids.

Sources:

  • https://apps.psc.wi.gov
  • Energy Information Administration (EIA), Short Term Energy Outlook, released March 11, 2025.
  • United States Energy Information Administration, "Storage projection highlights for 2025"

MISO Market, accessed 2024.

  • State of Wisconsin Public Service Commission Madison, WI.

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