Today, RMI released a new analysis, in collaboration with Evergreen Collaborative and Healthy Climate Wisconsin, that reveals the Wisconsin Electric Power Company’s (WEPCO) proposed 1,100 MW gas plant in Oak Creek could cost Wisconsin ratepayers more than $1.25 billion in additional energy costs. The report details how already volatile gas markets could drive up energy prices for Wisconsin households, potentially for decades to come.
Key findings from the analysis show that the Oak Creek gas plant would significantly hike energy costs for residential ratepayers across the state. Over its expected 30-year lifespan, each WEPCO-serviced household could be charged at least an extra $903—potentially rising to $1,591 if fuel prices continue to climb due to more LNG exports, extreme weather, and supply chain disruptions.
Building out more fossil fuel infrastructure will lock Wisconsin families into years of expensive, unreliable energy service, all while adding 1.3 million tons of annual greenhouse gas emissions (the emissions equivalent of 282,758 more gas cars on the road). A study by PSE Healthy Energy found that the Oak Creek gas plant could result in up to $4.3 billion in health costs over 30 years.
The report also highlights the financial risk of stranded assets. Wisconsin ratepayers are already paying $681 million for We Energies’ retired coal plants due to the company believing the coal plant was a good investment until it became uneconomical. Now, the Oak Creek coal plant has been retired 17 years before its predicted lifetime of use. If the proposed new Oak Creek gas plant becomes another stranded asset—and fails to deliver on its promises—households could be stuck with an additional $964 million in total costs, deepening the financial burden on Wisconsin families.
The full RMI analysis can be found here.
"When electricity bills rise, families are forced to make difficult choices, often sacrificing essential health needs like quality food and medicine. The proposed Oak Creek gas plant threatens to deepen Wisconsin's cost of living crisis, while also emitting air pollution that makes children sick and worsens climate change,” said Abby Novinska-Lois, executive director at Healthy Climate Wisconsin. “We Energies' gas proposals are unacceptable when our neighboring states are proving that energy efficiency and clean energy solutions are not only realistic, but are more cost-effective, and foster healthier communities and create jobs."
“The Oak Creek gas plant won’t just spike energy bills—it would also be a massive step backward for communities who have already been burdened by decades of toxic pollution from the coal plant in their backyard,” said Courtney Brady, Evergreen Collaborative's deputy director for the Midwest region. “Wisconsinites shouldn’t be footing the bill for an outdated fossil fuel system that only benefits big corporations. Without a transparent utility resource planning process, companies like WEPCO will continue being able to bypass transparency and push through these unnecessary projects, leaving communities to bear the health and financial costs.”
“Utilities are inflating demand to justify costly fossil fuel projects, and without proper oversight, ratepayers will end up footing the bill,” said Mattea Mrkusic, Evergreen Collaborative's senior policy lead for energy transition. “States must demand real transparency and hold companies accountable that are chasing profit and misleading the public. Wisconsin needs—and deserves—a clean energy future that prioritizes the well-being and financial security of communities, not the profits of fossil fuel giants.”
“Wisconsinites are already on the hook to pay for an expensive coal plant that no longer operates,” said Christian Fong, senior associate on RMI’s Carbon-Free Electricity Program. “Today, the next stranded asset risk lies with gas, as fears around load growth coupled with declining clean energy costs could lead to a massive oversupply of new gas plants.”