We Energies announces updated timeline for Oak Creek plant retirements
Rhea-AI Summary
We Energies (NYSE: WEC) has announced an extension to the operating lives of units 7 and 8 at the Oak Creek Power Plant through the end of 2026, postponing their previously scheduled retirement from end of 2025. The decision is driven by tightened energy supply requirements in the Midwest power market and the need to maintain reliable service during peak demand periods.
The units, built in the 1960s, have a total capacity of 610 megawatts (MW) and feature modern environmental controls. We Energies is simultaneously advancing plans for over 6,300 MW of new generation capacity, including natural gas, wind, solar, and battery storage projects over the next five years. The company serves more than 1.1 million electric and natural gas customers in Wisconsin.
Positive
- Extension helps maintain grid reliability during high demand periods
- Plant features modern environmental controls despite age
- Company advancing 6,300 MW of new clean energy projects
- Extension will not delay planned renewable energy projects
Negative
- Continued reliance on aging power infrastructure from the 1960s
- Delayed transition away from traditional power generation
- Elevated risks of power supply shortages in the Upper Midwest
- Potential exposure to fuel and purchased power cost fluctuations
News Market Reaction
On the day this news was published, WEC declined 2.36%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The decision to postpone the retirement dates for these units is based on two critical factors: tightened energy supply requirements in the Midwest power market and the need to serve customers with safe, reliable and affordable energy — especially on the hottest and coldest days of the year.
"Reliability is at the forefront of everything we do. This decision will help us keep the lights on every day and every season," said Mike Hooper, president — We Energies. "Just this month, national grid experts raised the alarm of elevated risks of power supply shortages and price spikes due to plant closures and increasing energy demand in the Upper Midwest. We will continue to evaluate the future of the plant based on capacity needs, available generation and what is financially prudent."
We Energies is actively planning, permitting or constructing more than 6,300 MW of new generation — including natural gas, wind, solar — and battery storage over the next five years to meet customers' energy needs and provide enhanced grid stability. The extension of the
We Energies serves more than 1.1 million electric customers and 1.1 million natural gas customers in
Forward-looking statements
Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based upon management's current expectations and are subject to risks and uncertainties that could cause our actual results to differ materially from those contemplated in the statements. Readers are cautioned not to place undue reliance on these statements. Forward-looking statements include, among other things, statements concerning management's expectations and projections regarding power supply, customer demand, and new generation projects. In some cases, forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology such as "anticipates," "believes," "estimates," "expects," "forecasts," "guidance," "intends," "may," "objectives," "plans," "possible," "potential," "projects," "should," "targets," "will" or similar terms or variations of these terms.
Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements include, but are not limited to: general economic conditions, including business and competitive conditions in the company's service territories; timing, resolution and impact of rate cases and other regulatory decisions; the company's ability to continue to successfully integrate the operations of its subsidiaries; availability of the company's generating facilities and/or distribution systems; unanticipated changes in fuel and purchased power costs; key personnel changes; unusual, varying or severe weather conditions; continued industry restructuring and consolidation; continued advances in, and adoption of, new technologies that produce power or reduce power consumption; energy and environmental conservation efforts; electrification initiatives, mandates and other efforts to reduce the use of natural gas; the company's ability to successfully acquire and/or dispose of assets and projects and to execute on its capital plan; terrorist, physical or cyber-security threats or attacks and data security breaches; construction risks; labor disruptions; equity and bond market fluctuations; changes in the company's and its subsidiaries' ability to access the capital markets; changes in tax legislation or our ability to use certain tax benefits and carryforwards; changes in and uncertainty around federal, state, and local legislation and regulation, including changes resulting from the current
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SOURCE We Energies
FAQ
Why is We Energies (WEC) extending the Oak Creek plant retirement date?
What is the power generation capacity of Oak Creek units 7 and 8?
How much new generation capacity is We Energies planning to add?
Will the Oak Creek plant extension affect We Energies' renewable energy projects?
How many customers does We Energies serve?
