WisBusinesss: PSC approves $255 million biomass plant, with conditions

MADISON — The state Public Service Commission has approved a $255 million biomass plant that We Energies and the Domtar paper company plan to build in Rothschild.

The vote was unanimous.

However, the three-person panel told the companies they must come up with $10 million in additional concessions in order to lower the cost to We Energies rate payers who will buy electricity from the plant.

Earlier this week, Domtar told the PSC it would boost its funding of the plant to $47 million, an increase of $22 million, effectively increasing the cost it would pay for steam energy from the plant.

Representatives of Domtar and We Energies said they will study the PSC proposal before making a final decision on the future of the project.

Likewise, a spokesman for the consumer group, Citizens Utility Board, said his organization needed time before it could comment on what he called a “complex” decision.

As planned, the plant will use waste wood and sawdust to produce 50 megawatts of electricity, as well as steam for Domtar’s papermaking operations.

The state currently has adequate power supply reserves, but that We Energies needs to build the plant to meet state mandates that 10 percent of its power be produced from renewable resources by 2015.