The nonprofit Union of Concerned Scientists is criticizing the state’s regulatory framework, arguing a “loophole” in the process for approving new large-scale utility projects is allowing developers to avoid scrutiny.
But WEC Energy Group, whose subsidiary We Energies is targeted in the report, argues it “completely ignores” aspects of this process that ensure the public’s view is taken into account.
The environmental advocacy group yesterday issued a policy brief focused largely on proposals from We Energies and Illinois-based Invenergy related to two natural gas plants.
The proposed Foundry Ridge and Red Oak Ridge projects — which would produce enough power to power 1 million homes — are intended to help meet increased energy demand driven in part by the massive data centers being built in Wisconsin, according to an earlier UW-Madison analysis.
Invenergy, which is considered an independent power producer rather than a traditional utility, has filed applications with the state Public Service Commission to get the projects approved. At the same time, We Energies has submitted applications to acquire those plants, citing the influence of “substantial data center load additions” in its proposal, the report shows.
Because IPPs like Invenergy aren’t subject to the same legal requirement to serve the public as utilities, authors argue the current split regulatory process “disadvantages the public” and leads to greater risk for communities in the state.
The report says the current framework means intervenors in the utility’s cases before the PSC are only able to argue whether or not We Energies should be allowed to buy the gas plants, not if they should be built in the first place.
“In essence, the fragmented nature of the cases isolates the process of constructing large amounts of harmful methane gas-fired capacity from the necessary assessment of impacts to the public,” authors wrote, calling it a “lost opportunity” to discuss clean energy options or other alternatives.
In response to the report, a spokesperson for Milwaukee-based WEC Energy Group notes any major energy project that’s been approved or is pending before the PSC is subject to “detailed review” by regulators, including opportunities for public input. That includes solar facilities and battery storage as well as natural gas.
“The report completely ignores the well-established, extensive and transparent regulatory review process already required under Wisconsin law,” the spokesperson wrote in an email.
The spokesperson said the state’s regulatory staff, as well as intervenors and members of the public “thoroughly evaluate” all projects, including comparing costs for alternative options, the environmental impact and the “actual need” for new generation resources.
“As electricity demand grows, maintaining a dependable energy system remains essential for households, businesses and Wisconsin’s economy,” the spokesperson wrote.
UCS says it plans to file public comments on the proposals for both gas plants, for which public hearings are scheduled for July 16 and July 23.
