Milwaukee-based WEC Energy Group, the parent company of We Energies, is in the midst of a dramatic reshaping of how it generates electricity. To make sense of all the moving pieces, here are answers to seven questions about the process, including ideas for businesses looking to save some money and become more sustainable in their own right:
What are WEC Energy Group’s green transition goals and how is the company doing?
WEC Energy Group set a target of reducing its CO2 emissions to 60% below their 2005 level by 2025 and to 80% by 2030. The company is aiming to be net carbon neutral by 2050. As of 2023, the company had achieved a 54% reduction in its CO2 emissions compared to 2005 levels.
In 2005, coal accounted for 73% of the company’s electricity and renewables were just 3%. As of 2023, coal was down to 32% and renewables were up to 9%. By 2030, renewables are expected to reach 34% and the company plans to end its use of coal by 2032.
What has the company done so far?
The reductions WEC has seen so far have been the result of a number of actions, including shutting down several coal-fired power plants and shifting generation to solar, wind and battery storage.
On the closure side, the company has retired 2,500 megawatts of fossil fuel generation capacity since 2018, including the Pleasant Prairie Power Plant in Kenosha County and two older units at its Oak Creek power plant in May of the past year. Another two older units at Oak Creek are set to be retired in late 2025.
On the generation side, the utility’s Paris Solar Energy Center in Kenosha County went into service at the end of 2024, adding 200 megawatts of solar capacity to the 300 MW coming from the Two Creeks Solar Park in Manitowoc County and the Badger Hollow projects in Iowa County that came online in prior years.
What’s still in the pipeline for renewables?
For as much of the transition away from coal that has already taken place, there are significant investments still to come. WEC’s $28 billion capital plan for 2025 to 2029 includes $9.1 billion in investments in renewables. Those investments include $5.5 billion for 2,900 megawatts of solar, $2.7 billion for 900 MW of wind, and $900 million for 565 MW of battery storage.
WEC currently has eight solar projects totaling nearly $3 billion and more than 1,360 MW either under construction or pending approval with the state Public Service Commission. Those projects are located across Columbia, Dane, Rock, Walworth and Wood counties. There are also six battery storage projects with an estimated investment of almost $1.2 billion for 560 MW. Those projects are co-located with the solar parks. WEC also has two wind projects totaling $520 million and 160 MW. Those projects are located in Iowa and Grant counties.
What about investments for reliability?
Consumers may want more green energy, but they also want the power to reliably stay on and Wisconsin weather doesn’t come with the same level of sunshine as Arizona or the winds of the Great Plains. To help boost reliability, WEC is seeking PSC approval for a planned 1,100-MW natural gas combustion turbine generating plant at its Oak Creek campus, an expected investment of $1.2 billion, and a reciprocating internal combustion engine plant in Paris in Kenosha County, a $280 million investment. Another $1.2 billion of investments for nearly 800 MW of natural gas capacity is also part of the company’s plans.
What has been the impact on rates and what are the long-term benefits on rates?
Long term, the company says the shift in where and how it generates electricity will save customers around $2 billion, including from reduced costs for operating and maintaining plants and not paying for fuel by using solar and wind. There are also tax benefits for the company to invest in renewables.
However, investing in new facilities has helped push rates higher in the short term. In December, the Public Service Commission approved new rates starting in 2025. Those rates include a 4.2% increase this year and another 4.5% increase for 2026. Among customer classes, the increases are skewed more towards residential customers and away from larger businesses based on the cost of providing service.
What about Microsoft?
One factor complicating WEC’s transition toward renewables is the massive increase in demand for electricity from Microsoft’s data center project in Mount Pleasant. WEC’s investor presentations indicate the company expects to add around 1,800 MW of electric demand between 2025 and 2029, a 20% increase. While Microsoft is a major part of that increase, there are several other economic development projects in the I-94 corridor that will also increase demand for electricity.
It is unclear exactly how Microsoft will be billed for its substantial electrical demand. Any new-rate tariff system would likely come before the state PSC before it was implemented.
What can a business do to curb its energy costs and be more sustainable?
For companies interested in either saving on their energy costs or shifting toward a more sustainable source of energy, WEC does have some available options.
- For those considering installing EV charging stations, the utility has a program that offers credits to help customers pay for needed utility upgrades and rebates to use toward work on customer-owned electrical equipment.
- The Energy for Tomorrow program provides the option for large or small businesses to purchase electricity from a renewable resource like solar or wind. Customers can have 25%, 50% or 100% of their usage come from renewables.
- Similarly, the renewable pathway pilot allows commercial and industrial customers to subscribe to a utility-scale, renewable energy facility in the state with a one- to five-year service agreement.
- The company also offers energy efficiency services that include energy audits and data logging to better understand energy use.
- Business customers can also receive incentives to offset the cost of energy efficiency upgrades on things like HVAC, refrigeration and process systems as part of the Focus on Energy program. There are also some custom incentives available for industry-specific investments.
