State Regulators Approve Two New Natural Gas Plants

A simple cycle natural gas power plant is seen in Minnesota. Photo courtesy of Invenergy

State utility regulators have signed off on an energy developer’s proposal to build a pair of new natural gas power plants in southern Wisconsin tied to rapidly growing electricity demand from data centers.

The Public Service Commission of Wisconsin on Thursday unanimously approved Chicago-based Invenergy’s applications for the Foundry Ridge Energy Center in Walworth County and the Red Oak Ridge Energy Center in Kenosha County.

Together, the projects will be able to generate roughly 1.5 gigawatts. Invenergy hopes to bring the smaller, 324-megawatt Walworth County plant online in 2028, and the larger, nearly 1.2-gigawatt Kenosha County plant online in 2030.

The Kenosha County plant would be the second-largest of the state’s 29 existing natural gas power plants, while the Walworth County plant would be the 12th-largest, according to a report from researchers at the University of Wisconsin-Madison.

The project faced opposition from environmental groups, who expressed concern about the potential climate and health impacts of building more fossil fuel generation in Wisconsin. It also faced pushback from some locals.

State law allows private, non-utility developers to apply for permits with state regulators to build energy generation projects. According to the PSC, this was the first time the commission has had to approve natural gas projects through this method.

And in many ways, state regulators said their hands were tied when it came to judging the two projects in accordance with state law.

“Due to existing specific limitations related to air pollution impacts, and because merchant development project review is limited and confined by governing statutes, the Commission is limited in what we can consider when reviewing these projects,” said PSC Chair Summer Strand. “These deficiencies in the current framework are ripe for legislative action.”

The approval comes as utilities are racing to meet an expected 40 percent spike in Wisconsin’s electricity demand by 2032, driven by the expansion of data centers.

In a statement, Daniel Runyan, senior vice president of development for Invenergy, thanked the commission and “all who participated” in the process.

“Invenergy is proud to provide practical solutions to increase domestic energy supply and keep Wisconsin’s economy growing,” Runyan stated. “Foundry Ridge and Red Oak Ridge will join solar, battery storage, and wind power across the state, generating reliable power and good-paying jobs for the bright future ahead.”

Invenergy filed documents with the Public Service Commission last year to build the projects.

We Energies has applied to acquire the natural gas plants as part of a plan to add new generation resources to the grid to meet rising electricity demand.

The cost of acquiring and building both natural gas plants is more than $2 billion, according to the utility’s applications.

We Energies spokesperson Brendan Conway said in an email that the PSC’s approval of Invenergy’s applications was “an important step in the public process.”

“These projects represent critical investments in Wisconsin’s energy infrastructure that will strengthen the grid and support reliable service for customers for years to come,” he said.

Although the project’s supporters argue the gas plants will help ensure reliability and meet growing demand from data centers, opponents pointed to potential health harms tied to natural gas.

The UW-Madison report found air pollution from the gas plants could contribute to more than 100 premature deaths over the projects’ lifespan and lead to higher air pollution exposure across the Upper Midwest.

Maria Chavez, senior energy analyst for the Union of Concerned Scientists, said in a statement that the approval would leave Wisconsin families “stuck paying billions of dollars for dirty, expensive methane gas plants that may not even be needed.”

“These projects, driven by growing data center demand, threaten to increase electricity bills, worsen air pollution and contribute to devastating climate impacts,” she said Thursday.

Chavez said the approval also highlights “a serious flaw” in the state’s energy planning process that allows developers to secure approval without requiring regulators to fully consider whether the plants are needed or whether other alternatives exist.

While ultimately voting to approve the projects, PSC Commissioner Kristy Nieto questioned whether existing state laws “give regulators the tools they need to fully evaluate the costs and consequences our fellow Wisconsinites are being asked to shoulder.”

“We can’t ensure the best energy future possible for Wisconsin by looking at these projects one at a time, that is certainly a growing drumbeat across our state, and for good reason,” she said.

The number of applications for new natural gas plants in recent years has also alarmed environmental groups.

On top of the two Invenergy plants approved Thursday, We Energies also received approval last year for a pair of new natural gas plants in Oak Creek and the town of Paris. And the utility hopes to build another gas plant in Outagamie County.

Invenergy also wants to build a pair of gas plants in Calumet County that would be able to generate a combined 1,900 megawatts.

Nieto said concerns about new fossil fuel plants in Wisconsin extend beyond the two projects approved Thursday, and reflect broader questions about how Wisconsin is planning for rapidly growing electricity demand.

“We are seeing growing demand for electricity, particularly due to data centers and artificial intelligence,” Nieto said. “I have concerns about the pace at which we are adding fossil fuel generation to meet that demand — gas for AI, you can call it.”

State regulators approve 2 southern Wisconsin natural gas plants was originally published by Wisconsin Public Radio.