Ensuring a Reliable Power Supply
- WPPI and Wisconsin Public Service Corporation negotiated an agreement under which Public Service will provide as much as 200
megawatts (MW) of power until 2030. The long-term agreement extends and expands a previous agreement with Public Service, bringing
additional diversity and flexibility to WPPI's power supply resources.
- Elm Road, a 1,200 MW, supercritical coal generation project under development by an affiliate of We Energies in Oak
Creek, Wis., remains on budget and on schedule for completion in 2009 and 2010. These two major coal units, of which WPPI will
own approximately 100 MW, will help WPPI maintain a diversified portfolio of resources and fuel mix, reducing future reliance
on natural gas.
- The Prairie State Project, another very large coal generation project planned for Illinois, is still in development.
WPPI retains the right to participate as an owner in the project.
- WPPI and the City of Escanaba, Mich. jointly issued a request for proposals to study the feasibility of developing a
baseload power plant of up to 300 MW at Escanaba's existing plant site on Lake Michigan. An earlier environmental analysis
identified no environmental issues that would preclude permitting a new generation facility.
- As a result of high temperatures and humidity over eight consecutive days, WPPI experienced a record-high peak demand
of 998 megawatts on July 31, 2006.
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Working to Keep Energy Costs Down
- The electric power industry continues to face numerous challenges that contribute to higher wholesale energy rates.
These include railroad congestion that has increased fuel delivery costs, significant increases in natural gas prices, and
the cost burdens of a congested transmission system in need of upgrading.
- WPPI continues to advocate for a robust transmission system to serve our region. Construction of a 345 kV transmission
line from Duluth, Minn. to the central part of Wisconsin by American Transmission Company (ATC) should be completed in 2008.
WPPI is supporting other proposed ATC transmission projects. In addition, WPPI is a participant in the CapX 2020 Minnesota
transmission group, which plans to build four transmission lines, including one connecting to LaCrosse, Wis.
- With the implementation of the Midwest Independent Transmission System Operator (Midwest ISO) in April 2005, congestion
has become a defining factor in the delivered cost of electrical power. WPPI continues to make significant progress in cutting
its administrative costs from the Midwest ISO. Significant staff time is devoted to influencing the direction of the many changes
that are being considered.
- WPPI has continued its efforts to oppose large wholesale rate increases filed with the Federal Energy Regulatory Commission
(FERC) by two of WPPI's major power suppliers, Wisconsin Power and Light (WPL) and Wisconsin Electric Power Company (WEPCO).
WPPI achieved a significant victory at FERC in the WPL case, successfully delaying the imposition of a proposed 27 percent increase
from January 1, 2007 until May 1, pending final resolution of the case. As a result, WPPI members and their customers will save
approximately $4 million. The rate increase requested by WEPCO, which would cause WPPI's average cost of power from WEPCO to jump
35 percent, also will become effective on May 1, 2007, pending final resolution of the case.
WPPI will continue to work vigorously to fight these increases.
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Partnering with Member Communities
- With the help of an independent survey firm, WPPI conducted a study to gather feedback from members. Member
satisfaction with WPPI ranked very high in many areas, including overall WPPI performance, power supply and programs
and services offered.
As a result of the survey, WPPI staff developed action plans for improving ratings in key areas. Equally important will
be WPPI's initiatives to maintain the high satisfaction ratings already achieved, in large part by continuing the unified
decision-making process that aligns member interests and fosters consensus.
- Through WPPI's community relations programs, member utilities donated more than $174,000 to support community causes
and events in 2006. Contributions last year included scholarships for students and donations to local charities, service
groups, festivals and economic development organizations.
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1425 Corporate Center Drive