Workers staff the control room at the E.J. Stoneman Electrical Station in Cassville, Wis., in this 2011 file photo. The power plant, which was converted in 2010 to burn wood chips, is shutting down at the end of 2015 because of the rising cost to ship the fuel. It is one of two plants employing 80 workers set to close in the village of 947 residents.
The Mississippi River community of Cassville is preparing for the loss of more than 80 jobs — and more than half its annual budget — when a pair of power plants close later this year.
In addition to the already announced closing of an Alliant Energy plant, DTE Energy Services recently announced plans to close its wood-burning Stoneman generating station, which provides power on contract to La Crosse-based Dairyland Power Cooperative.
Dairyland and DTE agreed to end a 10-year power purchase agreement this summer, citing “economic conditions.”
DTE spokeswoman Erica Donerson said the declining cost of renewable energy and increasing cost to transport biomass fuel in the Midwest made the plant unprofitable.
The plant, which employs 27 workers, will be closed pending approval from the regional transmission system operator. It’s expected to be decommissioned by the end of the year, Donerson said.
The Alliant plant employs 55 workers, including Cassville village President Keevin Williams, who plans to take an early retirement when his employer of 29 years closes.
With the closure of the plants, the village of 947 people located 90 miles downriver from La Crosse stands to lose more than $565,000 a year in utility aid — taxes that utilities pay to the state in lieu of property tax. That’s about 52 percent of the village’s annual budget.
A bill signed by Gov. Scott Walker’s Wednesday is designed to ease the blow — phasing out the funding over five years, as is done with decommissioned nuclear plants — but it won’t replace the lost revenue.
“At least it gives us a little bit of adjustment time,” Williams said. “It’s not the answer for the future.”
Not only does state law limit how much the village can raise its property tax levy, Williams said; it also would be unreasonable expect a small community losing jobs to bear a property tax hike.
“The people aren’t going to be able to pick up that tax load,” he said. “It’s kind of a real vicious cycle.”
Michigan-based DTE purchased the former Dairyland coal-fired plant in 2008 and spent two years converting it to burn biomass — primarily wood construction debris.
In 2013, DTE was fined $150,000 for violating air pollution laws in 2010 and 2011, including failure to construct the biomass burner in accordance with the company’s permit from the Department of Natural Resources.
The 40-megawatt output — enough to power about 28,000 homes — accounted for only about 3 percent of Dairyland’s total capacity — but 28 percent of the utility’s renewable energy portfolio.
As of last year, Dairyland generated nearly 89 percent of its electricity from fossil fuels.
Spokeswoman Katie Thomson said Dairyland is continuing to diversify its energy portfolio. Dairyland signed an agreement in April with Eagle Creek Renewable Energy for 10 megawatts of hydroelectric power from a plant in Sartell, Minn., and is seeking proposals for up to 25 megawatts of solar power.
Alliant plans to shutter its 200-megawatt Nelson Dewey plant by the end of this year, fulfilling terms of a settlement agreement with the Environmental Protection Agency, which had alleged violations of the Clean Air Act.
“It wasn’t efficient and cost effective to run it anymore,” Alliant spokesman Scott Reigstad said.
Mayor Williams is working with the Grant County Economic Development Corp. to market the soon-to-be vacant plants to other companies.
Alliant is soliciting offers for its plant, which sits on about 130 acres.
DTE says it has not made any decisions on what to do with its plant. Dairyland owns about 24 acres of the site; DTE owns another 10 acres.
Ron Brisbois, executive director of the EDC, said the proximity to rail, river and highway could make either site a viable intermodal shipping location, which could attract a variety of industries. Brisbois said it might also be feasible to extend a natural gas line to Cassville in order to convert one of the plants.
But, Williams notes, “we don’t have anybody knocking on the door.”
Note: This story has been corrected to reflect that DTE Energy Services has not made any decision on what to do with its Stoneman plant.
“The people aren’t going to be able to pick up that tax load. It’s kind of a real vicious cycle.”
Keevin Williams, Cassville village president and Alliant plant employee
