Wisconsin Ag Connection - PSC Rejects Proposed Coal Power Plant

Wisconsin Ag News Headlines

PSC Rejects Proposed Coal Power Plant
Wisconsin Ag Connection - 11/12/2008

In a unanimous decision, the Public Service Commission of Wisconsin denied Wisconsin Power and Light's plan to build a new 300 megawatt coal-fired electric generation facility at either their Nelson Dewey Generating Station property in Cassville or the Columbia Energy Center in Portage. The panel felt that the $1.26 billion project was too costly when weighing it against other alternatives such as natural gas generation and the possibility of purchasing power from existing sources.

Concerns over construction costs and uncertainty over the costs of complying with future possible carbon dioxide regulations were all contributing factors to the denial. The PSC acknowledged that Wisconsin Power and Light's effort to burn up to 20 percent renewable biomass at the Nelson Dewey site was laudable, but it found that the cumulative costs and risk associated with the project were unacceptable to the utility's ratepayers.

"We are at a unique juncture in this country, and in Wisconsin, and decisions regarding new sources of electric generation need to account for the likely future costs of complying with constraints on carbon emissions," said PSC Chairperson Eric Callisto. "The costs of this plant in relation to its risk and the more affordable options currently available to Wisconsin Power and Light were important factors in my decision. Cheaper, cleaner options are out there, and I encourage the utility to move on them quickly."

Meanwhile, the Wisconsin Farm Bureau Federation called the move 'a short-sighted and economically-destructive decision' because the project would have been a benefit to Wisconsin's environment, energy supply and overall economy.

"Rather than depending solely on coal, this innovative project called for achieving 20 percent of the plant's energy needs by burning biomass such as switch grass, waste wood and leftover cornstalks," said WFBF President Bill Bruins. "All of these inputs can be harvested locally in southwestern Wisconsin. The Cassville plant would have jump-started a biomass industry in Wisconsin and provided a template for other companies to follow. Providing new business opportunities for the citizens involved in the production, aggregation, transportation and processing of renewable resource fuels would help create an economic stimulus at a time when our state needs it."

Wisconsin Power and Light filed an application with the PSC for permission to build the new 300 megawatt coal-fired electric generation facility in early 2007. The PSC held public hearings on the project in September and offered opportunity for the public to comment on all aspects of the proposal.