Wis. Utilities Agree to Green Initiatives in Legal Settlement

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MILWAUKEE, Wis. -- A handful of Wisconsin utilities agreed to report greenhouse gas emissions and retire inefficient coal-powered units as part of a legal settlement over a water intake permit.

Clean Wisconsin and the Sierra Club sued We Energies, Madison Gas and Electric and Wisconsin Public Power over an intake pipe that will draw billions of gallons of Lake Michigan water to cool a new Oak Creek coal-fired power plant. The environmental groups wanted the utilities to build a new cooling system that could have cost $300 million.

In return for dropping legal opposition to the project, the utilities agreed to a $105 million settlement rife with environmental commitments, including retiring two inefficient coal-fired generating units, reporting greenhouse gas emissions and spending $5 million on long-term projects to reduce emissions.

The utilities shall stand behind the state's goal of increasing renewable energy to comprise 10 percent of its portfolio by 2013, and to 25 percent by 2025. They will agreed to pursue approval for 50 megawatts of non-food biomass and 15 megawatts of solar generation, as well as invest in energy efficiency projects in the state's public buildings.

The utilities also will dedicate $5 million annually for 25 years to help address Lake Michigan water quality issues, such as problems with invasive species, polluted runoff and habitat destruction.

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