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Wisconsin’s Billion Dollar Gas Gamble

Why State Leadership in Clean Energy Is Crucial Amid Federal Backsliding

A plume of smoke coming out of the existing Oak Creek coal plant in Wisconsin.
WEPCO’s residential ratepayers could pay the price to convert the retired Oak Creek coal plant into a costly gas powered one.

Utilities across the country are doubling down on fossil fuels when clean energy is cheaper, more reliable, and better for public health. In Wisconsin, Wisconsin Electric Power Company (WEPCO) is pushing for the costly construction of the Oak Creek gas plant—a glaring example of poor planning and outdated thinking—that would raise energy bills for households at a time when Americans are struggling with the cost of living. New RMI analysis finds this gas plant would add $1.25 billion in unnecessary costs for residential ratepayers, keeping the state hooked on volatile fossil fuel markets for decades.

This gas plant would be an expensive mistake, and unfortunately, Wisconsinites have seen this film before. WEPCO’s residential ratepayers are already paying $681 million for the utility’s retired coal plant at the same location. If the Oak Creek gas plant also becomes a stranded asset (infrastructure owned by the utility that stops running before it has been fully paid off), WEPCO households could be stuck covering $964 million in total stranded costs. In other words, ratepayers could be subsidizing the unpaid debt and remaining costs of a gas plant that is no longer in use. Fossil fuel assets require big upfront investments, risk becoming stranded due to market shifts, and ultimately leave customers responsible for long-term financial burdens.

Even if this gas plant runs for its full lifespan, each household will pay at least $903 in additional energy costs—and up to $1,591 in additional energy costs if gas prices continue to increase due to U.S. liquefied natural gas (LNG) exports, extreme weather, and supply chain bottlenecks. 

The bottom line is this power can be produced much cheaper using clean energy. Investing in gas plants is a nationwide gamble and one that's unlikely to pay off as clean energy rapidly outpaces fossil fuels in affordability and reliability. 

 

"Without transparent processes to prevent utilities from getting approval for new power plants without sufficient proof of need, ratepayers could end up footing the bill for unnecessary, polluting infrastructure."

 

Mattea Mrkusic

Evergreen Senior Policy Lead, Energy Transition

Gas Isn't the Gold Mine Utilities Want Us to Believe

Wisconsin ratepayers aren’t the only ones facing this battle. Across the country, utilities are scrambling to justify new gas plants, despite clear evidence that clean energy is the smarter investment—even when solely considering cost and feasibility, let alone the climate impact.

WEPCO is pushing gas because it will reap short-term profits for its shareholders, with a guaranteed rate of return, while offloading risk and costs—higher energy costs and stranded assets—onto their ratepayers. But just because a pricey gas plant makes WEPCO more money does not mean it is right for Wisconsin ratepayers, especially when cheaper alternatives like renewables and energy storage exist and can help lower energy costs. 

On top of that, building new gas infrastructure is too slow to meet growing energy needs. Renewable energy and battery storage can be built faster, meeting Wisconsin’s growing energy demand. Recent gas plant reliability problems in winter storms in Texas and the Southeast also challenge the narrative that gas is reliable when it’s most needed. 

While Trump administration policies continue to delay the inevitable clean energy transition and innovative energy solutions—trying to lock us into a dirty and expensive energy system—states like Wisconsin have a critical opportunity and obligation to lead by rejecting bad fossil fuel investments. By embracing clean energy, states can deliver the reliable, affordable power people urgently need amid a growing cost of living crisis.

 

"Wisconsin lacks an Integrated Resource Planning process, allowing utilities like WEPCO to push costly fossil fuel projects without much scrutiny."

 

Courtney Brady

Evergreen Deputy Director, Midwest State Policy

 

A Rigged System: Lack of Transparency in Planning

One of the major problems in Wisconsin and several other states heavily dependent on fossil fuels is a lack of transparent utility planning processes. 

Wisconsin lacks an Integrated Resource Planning (IRP) process, allowing utilities like WEPCO to push costly fossil fuel projects without much scrutiny.  Without this critical transparency measure, utilities can overstate energy demand to justify new fossil fuel projects—locking in unnecessary, expensive investments that are likely to become stranded assets. In states with IRP processes, utility proposals can receive more scrutiny and are more closely tied to demand projections and alternative analyses. If the Oak Creek gas plant isn’t stopped or at least delayed until viable alternatives can be fully assessed, residents will end up paying for decades of bad energy planning while cleaner, cheaper options are not even studied.

States need to empower their public service commissions to demand real transparency in a rapidly changing energy landscape. In Wisconsin, failing to do that will cause the state to fall behind. For years, the Republican-controlled legislature has neglected commonsense energy policies while neighboring states reap the economic and environmental benefits of clean energy leadership. Without legislative action to require integrated resource planning, Wisconsin risks higher costs, missed investment opportunities, and continued reliance on outdated energy infrastructure.

 

Manipulating Demand Projections for Profit

Utilities aren’t just pushing gas expansion; they’re often exaggerating demand to justify it. Without transparent processes to prevent utilities from getting rubber-stamped approval for new power plants without sufficient proof of need, ratepayers could end up footing the bill for unnecessary, polluting infrastructure.

While utilities cite expected explosive growth in data center electricity demand, the reality is more nuanced. Microsoft has already paused construction and canceled leases for planned data centers across the country and power demand may be overestimated even if the data centers are constructed, casting doubt on the demand projections used to justify gas plants in Wisconsin. Wisconsinites shouldn’t be forced to pay for Big Tech’s misprojected energy needs to benefit fossil fuel corporations.

 

Selling Out Communities for Profit: Who Pays the Price for These Plants? 

The Oak Creek gas plant wouldn’t just raise energy bills; it would harm surrounding communities who have already suffered the consequences of an expensive, dirty coal plant at the same site for decades. Gas plants aren’t a “clean” alternative to coal. In addition to climate pollution, they release pollutants that worsen respiratory conditions, increase heart disease, and contribute to premature deaths. 

A study from PSE Healthy Energy and Healthy Climate Wisconsin found that pollution from the Oak Creek gas plant and another new gas project being proposed by WEPCO, the Paris plant, could cause 165 to 264 premature deaths over 30 years, with cumulative health and economic costs reaching $5.7 billion. WEPCO is gambling with public health because it knows it won’t pay the price; ratepayers and communities on the frontlines of these gas plants will.

 

Clean Energy is the Most Affordable, Reliable Way Forward 

Americans who pay electricity bills shouldn't have to subsidize the fossil fuel industry's outdated and costly business model. The smarter path forward is clear: investing in clean energy, energy efficiency, and grid-enhancing technologies. These investments provide reliable, cheaper power amid growing power demand. 

In the face of so much misinformation, Wisconsin needs a fair and transparent utility planning process that allows for more scrutiny before unnecessary fossil fuel projects are approved at people’s expense. Rejecting these rash gas plant proposals—while strengthening clean energy targets and committing to more thoughtful capacity planning—will ensure a more responsible, affordable path as renewable costs continue to decline.

When utilities push expensive gas infrastructure over cleaner, more cost-effective alternatives, states must hold them accountable for misleading the public and delaying progress. States have the power—and the responsibility—to shape an energy future that serves their residents, not corporate profits.

 


 

Headshot of Courtney Brady

Author - Courtney Brady

Courtney is the deputy director for the Midwest region with Evergreen's states program. She advocates for clean energy and climate policies that focus on equitable economic investment, good-paying jobs, and a healthier planet. 

Headshot of Mattea Mrkusic

Author - Mattea Mrkusic

Mattea is the senior energy transition policy lead at Evergreen. Her policy research focuses on climate, clean energy, and a swift and just transition away from fossil fuels.