Wisconsin's Largest Utility Moves Up Plans to Stop Using Coal as a Fuel Source

The parent company of We Energies and Wisconsin Public Service announced in an earnings call Tuesday it plans to eliminate coal as an energy source by the end of 2032, three years earlier than it had originally planned.

Officials said coal will be used only as a backup fuel source beginning in 2030.

Along with shifting its projected exit from coal, WEC Energy Group executives said the utility plans to increase investments in renewable energy by $1.4 billion over the next five years as part of its plan to reduce carbon dioxide, or CO2, emissions by 80 percent by 2030.

"We'll continue to make great progress in transforming our power generation fleet and reducing carbon dioxide emissions," said Executive Chairman Gale Klappa. "In the plan, for example, we're making a significant commitment to new solar, wind and battery storage, as well as modern, efficient natural gas generation."

The announcement comes after the company indicated in August it didn’t rule out delays to coal plant retirements due to new capacity requirements from the Midwest grid operator and after an October report from the Sierra Club said most utilities were dragging their feet on the shift to clean energy.

The new target for exiting coal as an energy source company-wide does not change retirement dates for coal units at the South Oak Creek plant near Milwaukee. Two coal-fired units are slated to come offline next year and the final two by late 2025. Meanwhile, Elm Road Generating Station will be converted to a natural gas plant, officials said.

Klappa said the process of converting Elm Road from coal to natural gas has been in the making for several years.

"We've had extensive ongoing discussions with the (Public Service Commission of Wisconsin) commissioners," he said. "They understand what we're trying to achieve. They understand the importance of continuing to cost effectively reduce CO2 emissions."

WEC Energy Group also announced a timeline for the retirement of its coal-fired units at the Weston Power Plant, near Wausau. One of the coal-fired units at the plant will be retired in 2031, and another will be converted to a natural gas plant, company officials said.

Critics said the announcement is a step in the right direction, but stressed that the utility's plans are non-binding.

Source: wpr.org

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