Wisconsin Public Service Commission Issues Regulatory Update on Coal-Fired Generation Units

Strategic Insights -

The Public Service Commission of Wisconsin has issued a regulatory update regarding coal-fired generation units, including the Elm Road Units 1 and 2, Weston Unit 4, and Edgewater Unit 5, which are potential candidates for retrofitting and firing on natural gas prior to 2030. The update also requests a modeling sensitivity involving the continued operation of the Columbia Energy Center units beyond their publicly announced retirement dates in 2026, assuming the implementation of the proposed EPA greenhouse gas (GHG) rules. The sensitivities include scenarios where both Columbia units are extended to operate on coal through 2029, or where one unit retires and the other is converted to natural gas.

Key Takeaways:

  • The Public Service Commission of Wisconsin has issued a regulatory update regarding coal-fired generation units, including Elm Road Units 1 and 2, Weston Unit 4, and Edgewater Unit 5.
  • These units are potential candidates for retrofitting and firing on natural gas prior to 2030.
  • The update requests a modeling sensitivity involving the continued operation of the Columbia Energy Center units beyond their publicly announced retirement dates in 2026.
  • Two scenarios are requested: one where both Columbia units are extended to operate on coal through 2029, and another where one unit retires and the other is converted to natural gas.
  • The sensitivities are to be performed assuming the implementation of the proposed EPA greenhouse gas (GHG) rules, as well as a scenario where the GHG rules are not adopted.
  • The response to the regulatory update includes results of an economic evaluation, which now includes Columbia units 1 and 2 in operation on coal through 2029 and a sensitivity where Columbia 2 continues to operate but is converted to natural gas.
  • The economic evaluation includes assumptions regarding the availability of firm gas service and the consequences of Columbia Unit 2’s availability in each of the four seasons.
  • If WPSC or MGE would plan to divest of its ownership share of the Columbia Energy Center on or before the end of 2026 in the event that operation of the Columbia Units is extended, state this intention.

Statistics:

  • 2030: year by which coal-fired generation units are expected to be retrofitted and fired on natural gas
  • 2026: year by which Columbia Energy Center units are expected to retire
  • 4 scenarios: requested sensitivities involving the continued operation of the Columbia Energy Center units
  • 2 units: Elm Road Units 1 and 2, which are potential candidates for retrofitting and firing on natural gas prior to 2030
  • 2 units: Weston Unit 4 and Edgewater Unit 5, which are also potential candidates for retrofitting and firing on natural gas prior to 2030

Sources:

  • Public Service Commission of Wisconsin, "Docket No. 5-BS-282"
  • EPA, "Greenhouse Gas (GHG) Rules"
  • WPSC/MGE, "Elm Road Units 1 and 2"
  • WPSC/MGE, "Weston Unit 4"
  • WPSC/MGE, "Edgewater Unit 5"