There are more efficient ways for We Energies to power WI. Start with saving.
Yet, We Energies has proposed spending more than $1.9 billion on new natural gas facilities. The most expensive part of its plan involves a $1.2 billion natural gas plant in Oak Creek. The company itself says this plant will only be used 10-20% of the time. In this proposal, WEC downplayed energy efficiency measures and other modern means of addressing energy demand, leaving important tools on the table and failing to offer solutions that would be more efficient and would help keep costs down for residents.
Wisconsin needs reliable power throughout the year. Fortunately, lower-cost, clean energy technologies and demand-response and efficiency programs are ready to meet Wisconsin's growing energy demand. We Energies should embrace these market-ready, commercially available technologies that maintain grid stability, curb rate increases and attract business development.
Energy efficiency is the simplest, lowest cost way to take a bite out of the growing demand for energy. Wisconsin's Focus on Energy program represents the minimum that utilities must do to reduce energy demand through energy efficiency. The Focus on Energy program is a baseline for utilizing clean, efficient energy resources. However, in defense of its billion-dollar proposal, We Energies insists that it should not be expected to promote energy efficiency beyond the minimum required by law.
There are resources already found in homes and businesses that can be utilized with modern technology to help efficiently meet the needs of the electric grid. For instance, modern thermostats, modern water heaters and rooftop solar panels with battery storage can be operated in a coordinated manner to help meet near-term energy demand, while also allowing the device owners to be compensated for helping defer or potentially even eliminate the need for costly gas projects.
Opinion: WI is having renewable energy transformation. Natural gas plays vital role.
While it takes years to construct one new gas plant, the U.S. Department of Energy said in a January 2025 report that programs utilizing these modern technologies can be implemented in just six months. Around the country, including in Arizona, California, Texas and Vermont, utilities are benefiting from this technology. Yet, when asked whether it had considered such customer-friendly methods of meeting demand before proposing its $1.2 billion Oak Creek plan, the company responded that it had not considered this lower-cost option.
Unfortunately, the billion-dollar plan for Oak Creek downplays modern solutions and focuses on outdated, less efficient methods that maximize financial benefits for the utility company rather than embrace innovation that benefits customers. Rather than increase exposure to volatile gas costs, it should take this opportunity to leverage existing clean energy resources to meet projected demand more affordably and on a faster timeline than that proposed for the Oak Creek facility.
The importance of controlling costs is apparent from the Public Service Commission of Wisconsin's 2024-2030 Strategic Energy Assessment, a biannual report about the state's electricity sector. According to the report, Wisconsin's average 2022 electric rate for residential, commercial and industrial customers exceeded the Midwest regional average. If the state wants to retain and attract business, it cannot continue to let rates rise unchecked.
Opinion: Building new natural gas plants in Wisconsin will strap customers with big bills
So far, consumers have driven the adoption of these technologies because of their sustainable attributes and cost-saving benefits to individual households and businesses. We Energies is not taking full advantage of them but should moving forward, including in Oak Creek. A combination of advanced energy resources, ranging from modern thermostats and water heaters to utility-scale wind and solar installations with battery energy storage, can reduce the need for billion-dollar investments in natural gas projects.
Opinion: We Energies Kenosha County power plant threatens public health and environment
While limited new gas generation may be necessary, there is no reason for Wisconsin electric utilities to focus on yesterday's less efficient technology to meet tomorrow's challenges. The growing electric demand the utility anticipates in its service area can be met through a portfolio that includes affordable renewables and a suite of energy efficiency and demand response programs that are ready to deploy, well tested in the market, and will cost less than the proposed gas facilities.
Emma Heins is a Wisconsin-based Policy Principal with Advanced Energy United, a trade association for businesses that are lowering consumer costs, creating millions of new jobs, and providing the full range of clean, efficient, and reliable energy and transportation solutions.
This article originally appeared on Milwaukee Journal Sentinel: We Energies billion dollar gas plants aren't the best option | Opinion
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