We Energies Clean Air Strategy
Navigating the Environmental
Regulatory Landscape
Kris McKinney
Wisconsin Public Utility Institute Seminar
March 29, 2011
We Energies - Retail Electric and Gas Utilities

Largest electric and
gas company in
Wisconsin

1.1 million electric
customers

1.0 million natural
gas customers
Corporate Strategy

Power the Future

Retire/repower coal power plants

Build new, more efficient natural gas and coal
power plants

Add emission controls at coal power plants

Add more energy efficiency and renewable
energy generation
Clean Air Strategy

Power the Future commitments identified
environmental planning in 2000

Submitted a proposal jointly with WDNR to
USEPA in 2000 under federal eXcellence in
Leadership innovation program

Signed the Wisconsin Multi-Emission
Cooperative Agreement (MECA) with WDNR in
2002

Pursued consent decree (EPA Agreement) with
USEPA and USDOJ in early 2003
Power Plants - Varying Degrees of Risk

Our power plants face varying degrees of
environmental regulatory risk depending on the
plant’s:

Air emission control equipment

Water intake structures

Coal combustion product management

Landfill design and performance characteristics

Geographic location
What Have We Done So Far?

We are taking and have taken numerous
actions in response to environmental issues

Entering into agreements

Repowering coal to natural gas

Retiring older, less efficient coal

Adding air quality controls

Upgrading water intake structures

Engaging in a coal combustion product beneficial use program

Not using ash ponds

Implementing advanced upgrades to operating landfills
Construction Schedule
Emission Controls & Capacity Additions
POWER PLANT & UNIT(S)
2002
2003
2004
2005
2006
2007
2008
2009
Oak Creek 5-6
SO2 & NOx Controls
Pleasant Prairie 1
SO2 & NOx Controls
NOx Controls
Mercury Controls
SO2 Controls
Presque Isle 1-2
Mercury Controls
Retired
Presque Isle 3-4
Presque Isle 5-6
Presque Isle 7-9
Retired
NOx Controls
PM Controls
NOx Controls
Mercury Controls
Valley 1-2
Common (10 Units)
Port Washington 1-2
Elm Road 1-2
Renewables
Energy Efficiency
2011
2012
SO2 & NOx Controls
Oak Creek 7-8
Pleasant Prairie 2
2010
NOx Controls
PM Monitors
Mercury Monitors
REPOWER COAL TO COMBINED CYCLE NATURAL GAS
NEW SUPERCRITICAL PULVERIZED COAL
5% OF ENERGY FROM RENEWABLES BY 2011
55 MW OF ENERGY EFFICIENCY
2013
We Energies Emission Trends
We Energies Actual & Projected Emissions
Nitrogen Oxides & Sulfur Dioxide
1.2
125
Emission Rate
(lb/mmBtu)
100
0.8
75
0.6
0.4
50
0.2
25
0.0
0
2000
2002
2004
2006
2008
2010
2012
The capital cost of achieving these emission reductions
SO2
NOx $1.2 billion
is estimated to be approximately
Mass Emissions_
(1000 tons)
1.0
Where do we go from here?

Our smallest coal power plants face the most
significant decisions in the next few years

Compliance decisions at these plants are
complicated by potential reliability and steam
customer impacts

Valley and Milwaukee County are must-run coal cogeneration plants that serve a limited number of
steam customers

Presque Isle is a must-run plant with respect to the
transmission grid due to geographic constraints
Questions?
?