Old King COAL - FAIL
After five years, six months and two weeks, the We Energies Oak Creek power plant project is finished.
The second of two coal-fired power plants was completed Wednesday, the utility told securities regulators in announcing a key milestone for the more than $2 billion project. That's more than the combined cost of building Miller Park and rebuilding the Marquette Interchange.
Our future of power in Wisconsin is Sooo 1890's
"This was the largest privately funded construction project in the state, and it was done during a period were there was quite a bit of volatility in terms of labor supply and the cost of commodities," said Rick Kuester, chief executive of We Power, a Wisconsin Energy subsidiary that runs the utility's power plants.
The plant is among the five most efficient coal plants in the country, which results in comparatively less pollution compared with older coal plants.
"We think it's going to provide a lot of value for the customers of We Energies for a long period of time," Kuester said. "Coal supplies 50% of the energy in this country" and will remain a key source of energy going forward, even as regulations prompt utilities like We Energies to consider adding pollution controls or replacing older coal plants.
Pushing rates, costs and budgets to historic levels
The biggest unknown: the project's final cost. We Energies will file reports detailing the final cost this year when it seeks to adjust rates for 2012 and 2013, Kuester said.
Regulators approved a $2.15 billion price tag for the project, and set a cap allowing overruns of up to 5% to be passed along to utility customers.
"We hope customers won't have to pay for any cost overruns associated with the construction of the power plants," Charlie Higley
We Energies ratepayers have seen steady price increases in recent years to pay for the project, including a 17% rate increase in 2008 that was implemented in phases (I am sure their record earnings up at least 17% from 2009 is just a coincidence ;-), with the final installment hitting customers this month. The latest increase this month sent monthly power bills for the typical residential customer past the $100 mark for the first time.
...The project is being completed at a time when the recession has cut demand for power sharply, resulting in an investigation by the state Public Service Commission about whether power plants should be idled or shut down because of a power glut.
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