Wisconsin Public Service Commission to Review We Energies' $180 Million Natural Gas Pipeline Project

Strategic Insights -

The Public Service Commission of Wisconsin is set to review a $180 million natural gas pipeline project proposed by We Energies, a utility company. The Rochester Lateral Project, as it is called, will supply firm natural gas to several power plants in the region, including the Oak Creek CT and Paris RICE electric generation facilities. While the commission has already approved the need for these power plants, consumer protection groups are pushing for stronger regulations to prevent cost overruns and ensure just and reasonable rates.

Key Takeaways:

  • The Rochester Lateral Project is estimated to cost over $180 million and will supply firm natural gas to several power plants in the region.
  • Consumer protection groups, including the Citizens Utility Board, are pushing for stronger regulations to prevent cost overruns and ensure just and reasonable rates.
  • The commission has already approved the need for the power plants, but is reviewing whether the pipeline project is necessary to provide service to those plants.
  • The proposed order conditions include capping recoverability at the estimated project cost, requiring quarterly progress reports, and establishing thresholds for material deviations that would result in intervention by the commission.
  • We Energies has opposed the proposed order conditions, arguing that they are unnecessary and would increase construction costs.
  • The commission is set to review the project and determine whether to approve it with the proposed order conditions or deny it.

Statistics:

  • The Rochester Lateral Project is estimated to cost over $180 million.
  • The project will supply firm natural gas to several power plants in the region, including the Oak Creek CT and Paris RICE electric generation facilities.
  • The commission has reviewed over 100 pages of testimony and argument on the project, including statements from We Energies and consumer protection groups.
  • The project is expected to take several years to complete and will require significant investment in infrastructure and labor.

Sources:

  • Application of Wisconsin Electric Power Company-Gas Operations d/b/a We Energies, a Gas Public Utility, for Authority to Install Natural Gas Transmission Facilities in the Towns of Brighton, Dover, and Norway, the Villages of Rochester, Raymond, and Caledonia, and the City of Oak Creek, in Kenosha, Racine, and Milwaukee Counties, Wisconsin Docket No. 6630-CG-139.
  • Initial Brief of the Citizens Utility Board.
  • Direct Testimony of Corey Singletary.