State says power supplies will be plentiful through 2016

From an article by in the Milwaukee Journal Sentinel:

Construction of new power plants plus a recession that wiped out surging demand for electricity have brought on a power glut, with Wisconsin having more than enough power to meet its needs through 2016, a report released Tuesday says.

The state Public Service Commission's Strategic Energy Assessment, conducted every two years, is a planning document aimed at providing information about where the state stands in meeting its energy needs.

The assessment notes that the average price paid for electricity by Wisconsin businesses and residents has been rising and now stands above the Midwest average for residential, commercial and industrial customers.

Comparisons with other states can be difficult, the report notes, because of the different types of energy regulation that exist in different states. Nearby states such as Illinois and Michigan have opened up their power markets to competition.

Thanks to new power plants, such as the We Energies coal-fired power plant in Oak Creek, Wisconsin will have at least 24% more electricity available than it needs to meet projected demand, the report says.

"Excess reserves may increase the opportunity for Wisconsin utilities to export power in the regional market," the report says. "While this market is still evolving, the opportunity exists for excess generation sales to benefit ratepayers."

At the same time, the commission is investigating whether the power glut gives the state an opportunity to mothball or retire some of the state's aging coal-fired power plants.