Wisconsin Public Service Commission Weighs Approval of Proposed Liquefied Natural Gas Facility

The Public Service Commission of Wisconsin is considering an application by Wisconsin Electric Power Company (WE-GO) for a Certificate of Authority to construct a new liquefied natural gas (LNG) facility in the City of Oak Creek, Milwaukee County. The proposed facility would provide additional natural gas capacity to meet growing demand from industrial and commercial customers. However, the Citizens Utility Board (CUB) has expressed concerns that the project's need for approval is predicated on the Commission's decision on the Paris RICE and OCCT projects. CUB recommends that the Commission not approve the OCLNG project until it resolves the Paris RICE and OCCT projects.

Key Takeaways:

• The proposed OCLNG project's need for approval is contingent on the Commission's decision on the Paris RICE and OCCT projects, which collectively account for 477,000 Dth/day of natural gas demand by 2027.
• WE-GO concedes that it has not provided any evidence or alternative plan for addressing natural gas capacity needs in the absence of the Paris RICE and OCCT projects.
• The Commission should condition its approval of the OCLNG project on reporting and consumer protection requirements proposed by CUB, including conventional reporting requirements and protections that have accompanied past Commission decisions.
• CUB recommends that the Commission not rule on the OCLNG application until it first resolves the Paris RICE and OCCT projects.
• If the Commission rejects or significantly scales back the proposed Paris RICE and OCCT facilities, the OCLNG facility should not be approved as filed.
• If the Commission elects to approve the OCLNG project in whole or in part, CUB recommends that the Commission adopt CUB's recommended conditions.

Statistics:

• The proposed Paris RICE and OCCT projects collectively account for 477,000 Dth/day of natural gas demand by 2027.
• The proposed OCLNG facility would provide 2.0 BCF of storage capacity.
• WE-GO concedes that it would need some nominal amount of additional capacity to supply ERGS in the absence of the Paris RICE and OCCT projects.

Sources:

• Application of Wisconsin Electric Power Company for a Certificate of Authority under Wis. Stat. SS 196.49 and Wis. Admin. Code SS PSC 133.03 to Construct a New Liquefied Natural Gas Facility and Associated Natural Gas Pipelines in the City of Oak Creek, Milwaukee County, Wisconsin Docket No. 6630-CG-140
• REPLY BRIEF OF THE CITIZENS UTILITY BOARD
• CUB's Initial Brief in the Docket No. 6630-CG-140
• WE-GO's Initial Brief in the Docket No. 6630-CG-140