We Energies representatives on Feb. 17 presented a multi-part plan to convert coal operations at the Elm Road generating station in Oak Creek to natural gas and to build a new liquefied natural gas (LNG) storage and liquefaction facility, then asked the Common Council to hold action while pending state approvals proceed.

The presentation described a plan to add five General Electric 7F combustion turbines with roughly 1,100 megawatts of combined capacity and a new, 2-billion-cubic-foot LNG storage tank on the Elm Road campus. Jennifer Bogner, director of local affairs for We Energies, said federal and regional rules are driving the project, including recent Environmental Protection Agency and regional-grid changes that require more seasonal and fast-start capacity.

“...the EPA now has a rule. We have to get out of the coal business,” Bogner said, adding the company is also investing in renewables and storage to reduce emissions over time.

Project manager Rick O’Connor described technical elements and timing, saying the combustion-turbine installation would be placed in an open field inside the existing rail loop and that the five turbines would be roughly 1,100 megawatts total. “There will be 5 stacks, 1 for each unit. Each stack is 90 feet high,” O’Connor said. He said the CT project cost is about $1.2 billion and the LNG project cost about $456 million. The company said construction could begin this summer, with the first turbine online by the end of 2027 and full operation by summer 2028.

O’Connor explained the LNG system would liquefy pipeline gas (cooling it to about minus 260 degrees) for storage and vaporize it back to pipeline gas when needed. He said the proposed storage tank would be 206 feet in diameter and about 170 feet tall and that a smaller LNG tank has been at Elm Road since 1965.

Christie Lane, Oak Creek’s community development director, said the item requires an amendment of the plant’s existing conditional use permit and that the Planning Commission recommended approval in January. Lane and city staff then asked the council to hold formal action while We Energies’ applications with the Public Service Commission of Wisconsin and the Wisconsin Department of Natural Resources complete their review. A staff member asked council to consider a brief hold to allow those external approvals to be referenced precisely in the city’s conditional-use amendment language.

The council voted to hold consideration of the resolution to the March 4 council meeting so staff can incorporate PSC and DNR outcomes into the city’s permit language. The public hearing drew no public comment during the three calls for speakers.

What was discussed and what is pending

• Project scope: conversion of existing Elm Road coal operations to natural gas, installation of five GE 7F combustion turbines (approximately 1,100 MW) and construction of a 2 BCF LNG storage tank plus liquefaction/vaporization equipment.

• Costs and schedule: We Energies representatives reported capital costs of roughly $1.2 billion for the combustion-turbine scope and $456 million for the LNG facility; construction was described as starting as soon as approvals and permitting allow, with incremental in-service dates beginning late 2027 and continuing into 2028.

• Environmental and operational notes: company representatives said emissions from the new gas-fired units would meet National Ambient Air Quality Standards and be significantly cleaner than coal operations; plant cooling will remain once-through Lake Michigan intake.

• Council action: staff requested and the council approved a motion to hold formal action on the city’s conditional-use amendment until the March 4 meeting to ensure the permit language aligns with PSC and DNR approvals.

Why it matters

The Elm Road site is one of the state’s largest generation complexes and the company’s proposal would substantially change local fuel handling and generation equipment. The council did not approve the conditional-use amendment on Feb. 17; the project still requires state-level approvals and a revised city permit that staff said should explicitly reference those external decisions.

Next steps

The council will reconvene the conditional-use item at its March 4 meeting; staff said they will update the draft conditions and restrictions in the amended conditional-use permit to reflect PSC and DNR approvals, if any. We Energies and city staff said they will hold public PSC meetings the PSC schedules as part of their state review process.