PSC delays decision on Alliant’s Rock County LNG project, directs staff to seek additional data

The Public Service Commission on June 18 voted to pause consideration of Wisconsin Power and Light’s application to build a liquefied natural gas production and storage facility in Rock County and directed staff to issue a data request for additional information on electric/gas coordination, delivered cost‑of‑service impacts and alternative tank/site permutations.

Commissioner Neto opened the discussion on the application, which proposes a liquefaction system with nominal LG production of 20 million standard cubic feet per day and a 2.0 billion cubic feet (BCF) full‑containment storage tank connected by a new 16‑inch lateral to an existing 20‑inch pipeline near Alliant’s Riverside generating facilities. Neto noted the applicant’s updated project cost estimate rose from $520 million to about $694 million due to higher market bids and design details.

Why it matters: The commission’s statutory review requires a showing that a project is not unreasonably in excess of probable future requirements and that it does not add to the cost of service without proportionate value. Several commissioners said they were not yet satisfied the record demonstrated the size and cost of the proposed facility were the least‑cost, least‑risky way to meet future firm gas needs, particularly because much of the need presented in the gas docket rests on the electric utility’s forecast.

Commissioner Hawkins said he did not have enough information to support approval as filed and asked staff to request two focused categories of additional evidence: (1) support for the electric capacity need tied to the facility (e.g., capacity accreditation, electric planning analyses showing how firm gas affects generator accreditation and reliability) and (2) a more complete delivered cost‑of‑service analysis including how reductions in firm pipeline contracts, tariff rate scenarios and commodity arbitrage would affect customer costs. Hawkins proposed laying the item over pending those materials.

Commissioner Neto expressed similar concerns and proposed a condition that would require the applicant to describe mitigation measures for any year the natural gas reserve margin exceeds 10% and to notify the commission within 30 days if forecasted gas demand fails to materialize. Neto and other commissioners asked staff to re‑request prior data answers (PSCWHK 7.7 C–E) but with expanded permutations: whether smaller tank sizes or different site parcels could meet siting requirements and the cost differences among permutations (for example 0.5 BCF, 1.0 BCF, or two 1.0 BCF tanks).

The motion to direct staff to issue a data request ("including but not limited to the items discussed today") and to lay over docket 6680 CG‑171 was made and seconded; the commission voted to adopt the motion. Commissioners indicated staff should file responses as post‑hearing evidence when appropriate so the record can be completed before any final determination.

Next steps: Staff will prepare and issue the data request to the applicant and other parties as appropriate and will file responses into the record when they are ready. The commission left open the possibility of a condition addressing reserve margins depending on what the augmented record shows.

No final decision on the certificate of authority was made; the item remains under consideration pending the requested information.