Milwaukee-based
We Energies plans to extend the operating lives of units 7 and 8 at the Oak Creek Power Plant to the end of 2026, the company announced Wednesday.
The two coal-powered units, which were built in the 1960s, were scheduled to be retired by the end of this year.
We Energies, the southeastern Wisconsin subsidiary of
WEC Energy Group, cited tightened energy supply requirements in the Midwest power market and the need to serve customers, especially on the hottest and coldest days.
"Reliability is at the forefront of everything we do. This decision will help us keep the lights on every day and every season," said
Mike Hooper, president of We Energies. "Just this month, national grid experts raised the alarm of elevated risks of power supply shortages and price spikes due to plant closures and increasing energy demand in the Upper Midwest. We will continue to evaluate the future of the plant based on capacity needs, available generation and what is financially prudent."
The decision marks the second delay in the retirement of the older power plant units We Energies has in Oak Creek.
Originally, the company had planed to shut down the four older units starting in 2023 and 2024. However, in mid-2022, We Energies announced it would delay the retirement of units 5 and 6 to May 2024 and the retirement of 7 and 8 was pushed out 18 months to late 2025.
In that case, officials also cited tightened energy supply conditions along with supply chain issues delaying the operation of new renewable energy projects.
The May 2024 retirements did occur on schedule and the company is also working to switch its other, newer generating units in Oak Creek from coal to natural gas.
In its latest investor presentation released on Wednesday, WEC Energy Group indicated it continues to plan to only use coal as a backup fuel by 2030 and stop using it completely by 2032.
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