Wisconsin court sends Oak Creek plans back for further review

Washington (Platts)--29Nov2004

Responding to complaints from several groups against the Wisconsin Public
Service Commission and Department of Natural Resources, a circuit judge ruled
Monday that the PSC did not follow proper procedures in approving the 1,200-MW
expansion of We Energies' Oak Creek coal-fired power plant.
Dane County Circuit Judge David Flanagan vacated the PSC order approving the
project and sent the case back to the commission for additional proceedings.
The PSC gave final approval late last year to two of the three proposed
coal-fired units at Oak Creek, giving the green light for construction of a
total of 1,200 MW of coal-fired power and affirming its initial approval of
the primary portion of We Energies' Power The Future program. The DNR followed
with approval of an air permit in January this year.
"The court determined that the PSCW did not follow proper procedures in
approving the project, and should have taken evidence on additional subjects,"
We Energies said.
We believe that the PSCW interpreted its rules correctly and followed them in
making its decision," Larry Salustro, We Energies executive vice president,
said. "The Oak Creek expansion is the most studied project in the recent
history of the PSCW. In addition, the PSCW recognized and the court affirmed
the states need for additional energy on the time schedule it set out.
We will be reviewing our legal options over the next few days, and determining
the best course of action for keeping the project on schedule," Salustro, also
general counsel for We Energies, added.

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