July 20, 2004

We Energies, town of Caledonia reach tentative
agreement on Oak Creek Power Plant expansion

We Energies and the town of Caledonia announced today that they have reached a tentative agreement regarding the town’s active opposition to Power the Future and the expansion at the Oak Creek Power Plant site. The agreement attempts to address the community concerns and the desire to mitigate project impacts.  The agreement must be approved by the Caledonia Town Board in a Special Meeting which is scheduled for 7 p.m. Tuesday, July 27, at the Caledonia (Eastside) Community Center, 6156 Douglas Ave. The Special Board Meeting will begin with an informational session detailing the provisions of the agreement followed by the opportunity for public comment. Certain portions of the agreement also are subject to approval by the Public Service Commission of Wisconsin (PSCW).

The tentative agreement addresses a number of items that the PSCW specifically noted in its Nov. 10, 2003, order that approved the construction of two 615-megawatt supercritical pulverized coal units in Oak Creek. The agreement provides for prompt and cooperative processing of the We Energies permit applications and withdrawal of Caledonia’s pending appeal of the PSCW’s order.
 
Additional provisions include:

  • Maintaining rail operations north of Six Mile Road.
  • Constructing a vehicle underpass at Six Mile Road.
  • Annual payments of $1,053,686 to cover the local costs associated with specific health and safety impacts, to include additional fire, police, and highway expenditures, pending PSCW approval.
  • Investing $20 million over a 10-year period for economic development.
  • Constructing a vehicle underpass at the Four Mile Road crossing, pending PSCW approval.
  • Establishing and funding a Noise and Diesel Fume Mitigation Program, pending PSCW approval.
  • Modeling of local air quality to ensure compliance with state and federal permit levels.
  • Closing of Seven Mile Road at the Union Pacific Railway crossing.

If approved, this agreement will ensure consistent treatment of local zoning and permit regulations required under a Conditional Use Permit granted by the town of Caledonia and Racine County.

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