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Published - Thursday, August 07, 2008

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Utilities settle environmentalists’ suit for $105M


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MILWAUKEE (AP) — Two environmental groups have dropped their challenge of a power plant’s water cooling system in exchange for the three owner utilities spending $105 million on Lake Michigan improvements, the parties said Wednesday.

The environmental groups, Clean Wisconsin and the Sierra Club, and the companies that own the Oak Creek plant — We Energies, Madison Gas and Electric, and Wisconsin Public Power Inc. — called the settlement a victory.
Clean Wisconsin and the Sierra Club filed a petition in April 2005 challenging the state Department of Natural Resources’ permit for the cooling system at a coal-fired power plant in Oak Creek. They argued the plant relied on old technology that would cause more damage to Lake Michigan fish than a modern system with cooling towers.

The agreement requires the plant’s owners to pay $4 million a year from 2010 through 2035 to address water quality issues — invasive species, polluted runoff, toxic loadings and habitat destruction — in exchange for the groups dropping the challenge to the permit.

Mark Redsten, executive director at Clean Wisconsin, said they settled because they weren’t certain they would win. He said it’s a victory, but not a full victory. The proposed lake improvements are significant and will help fight global warming, he said.

“These environmental protections help ensure Lake Michigan is a healthy natural resource for generations to come,” he said.

Other highlights of the agreement:

  • The trio agrees to pay $5 million to projects that reduce greenhouse gas emissions, consistent with a recommendation of Gov. Jim Doyle’s global warming task force.

  • We Energies will retire two less-efficient coal-fired units in Presque Isle, Mich., by no later than the end of 2012.

  • We Energies will ask the state Public Service Commission for approval to build 50 megawatts of 100 percent biomass-fueled power in Wisconsin.

  • The three companies will buy or construct 15 megawatts of solar generation by 2015.

  • They agree to support legislative efforts to set a minimum percentage of electricity produced by renewable fuels of 10 percent by 2013 and 25 percent by 2025.

  • The utilities must disclose their annual utility greenhouse gas emissions.

  • We Energies is required to support energy efficient programs for public buildings.

    Barry McNulty, spokesman for the majority-owner We Energies, said the utility plans to open one part of the Oak Creek power plant next year and would have had to spend at least $300 million to make the improvements that he said weren’t any more environmentally friendly.

    “It allows us to move forward,” he said. “It allows the citizens, our customer if you will, some certainty we will be able to operate the facility.”
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