Regulators advance $370M liquified-gas plants in Jefferson, Walworth counties

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Regulators signed off Thursday on We Energies’ $370 million plan to build a pair of liquified-natural-gas plants in Jefferson and Walworth counties over opposition from environmental groups and residents.

The Wisconsin Public Service Commission‘s approval means the utility can take another step forward with its plans to build liquified-gas plants in the Jefferson County town of Ixonia and the Walworth County town of Bluff Creek. Each would store natural gas in liquid form at 260 degrees below zero to be used as a backup source at times when demand for energy peaks, such as in winter.

Utilities have said building the storage units would be less costly than adding capacity to interstate pipelines and would eliminate the need to buy high-priced gas during a spike in demand. We Energies said the projects would save customers about $200 million over the course of 30 years. It first announced its plans for the plants in November 2019, and work on the projects could wrap up by 2023.

Before the plans could advance, though, they first had to overcome opposition from various Ixonia residents and environmental groups like the Sierra Club Chapter of Wisconsin, which argued We Energies had inflated its estimate of the demand for natural gas when submitting its request for approval.

Ultimately on Thursday, the PSC approved the plants in a split vote. PSC Chair Rebecca Valcq and Commissioner Ellen Nowak voted for it.

“I firmly believe that the transmission in our industry is going to require an all-of-the-above approach,” Nowak said. “And for me, that is going to mean doubling down on energy efficiency. But it also includes maintaining natural gas as a resource, at least for now.”

The sole vote against the project, meanwhile, came from Commissioner Tyler Huebner, who said he isn’t convinced both projects are needed.

About 1,000 Ixonia residents have signed a petition in opposition to We Energies’ plans for the project in their town, arguing the proposed plant would drive down property values, endanger the environment and take a toll on local infrastructure, among other things.

“A more responsible investment is renewable energy and weatherization, allowing us to be part of the solution of climate change not perpetuate the problem” wrote the Ixonia resident Mary Rupnow in a comment to the PSC

The Sierra Club separately argued the project would undermine climate goals that have been set by Gov. Tony Evers and outlined in the Paris Climate Accord.  Huebner, for his part, said he supports the plans for the plant in Bluff Creek but not necessarily the one in Ixonia.

“It’s not clear that the value will be proportionate to the cost,” he said.

Nowak said the proposal shows “natural gas is here to stay.” She referenced plans that WEC Energy Group, the parent company of We Energies, announced on Tuesday, calling for coal to be eliminated from the company’s production mix by 2035 through the conversion of existing plants so that they run on natural gas.

“On the coldest of winter days I think there’s going to be a lot of people  happy in the future that there are these peaking facilities there to meet peak demand,” she said. Follow @natebeck9