We Energies, Wisconsin Gas propose $370 million project, with plants in Jefferson and Walworth counties

Evan Frank
Milwaukee Journal Sentinel

A plan to build a plant in southern Wisconsin that would store liquefied natural gas is moving forward, according to documents filed with the town of Ixonia Plan Commission.

We Energies and Wisconsin Gas are seeking approval to build the plant on 164 acres in the town, near Hill and North roads. The planned permanent operation on the Ixonia property would occupy 27 acres, according to We Energies.

The two utilities — which bill under the name We Energies and have 1.1 million customers — have proposed building liquefied-natural-gas storage plants in Ixonia in Jefferson County and in Bluff Creek in Walworth County.

The two plants are projected to cost $370 million. They would be capable of storing natural gas at temperatures of 260 degrees below zero.

We Energies and Wisconsin Gas filed more specific information on the proposed plants with the Public Service Commission last month, said Brendan Conway, a spokesman for the utilities.

The utilities also will need approval from the Department of Natural Resources, as well as Walworth and Jefferson counties.

Liquefied natural gas has about 1/600th of the volume of natural gas burned in a home. Each plant would have the capacity to store 1 billion cubic feet of natural gas.

The two plants would enable We Energies and Wisconsin Gas to store natural gas during the summer months, when demand and prices are the lowest, for use in the winter months, when demand and prices are the highest.

We Energies and Wisconsin Gas, both part of WEC Energy Group, estimate that the plants will save customers more than $200 million over 30 years.

When the projects were first proposed last fall, the utilities also said building the liquefied-natural-gas plants would would be less costly than contracting with interstate pipelines to add additional capacity.

We Energies and Wisconsin Gas would have to contract for the additional pipeline capacity year-round to deliver natural gas needed only a few days a year.

The Ixonia plant is meant to serve customers in the greater Milwaukee service area. The Walworth plant is for the southeastern Wisconsin service area, according to the proposal.

The Ixonia Plan Commission is expected to discuss the proposal at its next meeting, which will be held in person at 7 p.m. July 22 at the Ixonia town hall, at W1195 Marietta Ave.

Plan Commissioner Mary Rupnow said she has several concerns, including about possible vapors, since the plant is proposed to be within a mile of Ixonia Elementary School.

Additionally, Rupnow noted that part of the plant would be on wetlands.

“That seems to be one of the biggest questionable areas,” Rupnow said. “There is a couple of acres in the wetlands, and there is a stream that runs right into the Rock River. When the Rock River floods … it backs up all the way into this property.”

Conway said that there are more than 100 liquefied natural gas storage plants throughout the country and that the technology is proven and safe.

The plants also will have various safety measures, such as instruments near the plants to detect any leaks, he said.

Guy Boulton of the Journal Sentinel staff contributed to this report. Call Evan Frank at (262) 361-9138 or email him at [email protected]. Follow him on Twitter at @Evanfrank_LCP.