We Energies will keep two aging coal-fired units running at its Oak Creek Power Plant for one year longer than planned, the company announced Wednesday.
The units, built in the 1960s, will now be used to meet high electricity demand periods through the end of 2026. Utility officials have said they plan to convert the nearby Elm Road Generating Station, which came online in the early 2010s, from a coal plant to a natural gas plant.
We Energies says the decision to delay the aging plant’s retirement comes in response to tightened energy supply requirements and in an effort to boost reliability.
In a statement, We Energies President Mike Hooper said the company will continue evaluating the future of the Oak Creek plant based on capacity needs, financial impact and available energy generation resources.
“This decision will help us keep the lights on every day and every season,” Hooper said. “Just this month, national grid experts raised the alarm of elevated risks of power supply shortages and price spikes due to plant closures and increasing energy demand in the Upper Midwest.”
In May, the Public Service Commission of Wisconsin gave We Energies the green light to move forward with building two new natural gas power plants, one in Oak Creek and another in Kenosha County. Those projects have a price tag of more than $1.5 billion