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Energy Law

: Energy Legal Blog

Wisconsin Power & Light Offers Emission-Saving Goodies to Make New Coal Plant Proposal Palatable

By Andrea Kells

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In an effort to counter opponents of its proposal to expand an existing coal-fired generating station by 300 MW, Wisconsin Power & Light (WP&L) has offered to take several steps to offset the increased greenhouse-gas emissions that would result from the expanded plant's operation. In a draft environmental impact statement, the Wisconsin Public Service Commission criticized WP&L's proposed use of a circulating, fluidized bed (CFB) boiler, which results in higher CO₂emission. In response, rather than abandon CFB, WP&L has offered to retire the oldest coal-fired plant in its fleet, develop an additional 200 MW of wind power above the 300 MW it has already pledged to develop in the next several years, increase the amount of biomass co-firing planned for the new unit, and increase energy efficiency and conservation efforts. WP&L's estimated cost for these proposed efforts are $500-$550 million.

The approach taken by WP&L proved successful for another Alliant Energy Corp. subsidiary. Interstate Power & Light offered to the Iowa Public Utility Board a package of actions, including retiring older plants, building more wind power and increasing biomass co-firing in order to win the Board?s approval of a new coal-fired plant. More quid-pro-quos of this sort can be expected. Even as federal greenhouse gas legislation recently failed to overcome a threatened filibuster, its eventual passage appears probable and will impact state regulatory decision making.

Full post as published by Energy Legal Blog on June 25, 2008 (boomark / email).