Wisconsin utility subsidiaries of Alliant Energy Corp. and WEC Energy Group Inc. are delaying the retirement of some coal-fired power plants to alleviate short-term reliability concerns in the Midcontinent ISO.
WEC Energy subsidiary Wisconsin Electric Power Co., which does business as We Energies, announced June 23 that 1,100 MW of capacity at the South Oak Creek power plant, will operate through 2025.
Oak Creek units 5 and 6, which began operating in 1959 and 1961, according to S&P Global Market Intelligence data, will shut down a year later than previously planned, now in May 2024. Units 7 and 8, which have been operating since 1965 and 1967, will run an additional 18 months, until late 2025.
"The decision to postpone the retirement dates for these units is based on two critical factors: tight energy supply conditions in the Midwest power market and supply chain issues that will likely delay the commercial operation of renewable energy projects that are currently moving through the regulatory approval process," We Energies President Scott Lauber said in a statement.
WPPI EnergyIn November 2021, WEC announced it will phase out coal-fired generation by 2035, with an interim goal for the fuel to make up an "immaterial" less than 5% of its operations by the end of 2030.
Citing similar concerns and a recent MISO report detailing potential shortages in summer 2023, Alliant said June 23 that it will delay the retirement of its Edgewater Generation Station by half a year, to June 2025. Operation of the Columbia Energy Center will be extended from the end of 2024 to June 2026.
Alliant subsidiary Wisconsin Power and Light Co. operates both plants. It is the sole owner of the 417-MW Edgewater plant, which began operating in 1985. WEC Energy subsidiary Wisconsin Public Service Corp. and MGE Energy Inc. subsidiary Madison Gas and Electric Co. own interests in the two-unit, 1,160-MW Columbia plant, which has been operating since the mid-1970s.
"It's important to recognize the unprecedented and unexpected circumstances currently affecting the entire energy industry," Alliant Senior Vice President of Operations David de Leon said in a statement. "Shifting the retirement dates for our coal-fired facilities in Wisconsin helps ensure we can weather multiple uncertainties while continuing to add cleaner, renewable energy to the grid."
Alliant confirmed it still expects to exit Wisconsin coal generation by mid-2026 and plans to reduce carbon emissions by 50% from 2005 levels by 2030.
In anticipation of the planned retirements, Wisconsin utilities have been investing heavily in renewables, particularly solar resources, to be ready for operation in the next few years.
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