To create a natural gas-fired plant
The Wisconsin company that owns We Energies will sell its power plant and utility operation in Upper Michigan.
That's according to new agreements announced Tuesday by Michigan Governor Rick Snyder.
Wisconsin Energy Corp. of Milwaukee agrees to sell its utility in the U.P. to the Upper Peninsula Power Company. That includes the Presque Isle coal-fired power plant in Marquette that's due to shut down in about five years.
Until then, an operator of 2 iron ore mines in the U.P. has agreed to buy power from the Upper Peninsula utility until the plant closes -- and then it will work with Invenergy of Chicago to create a natural gas-fired plant to power its mining facilities.
Once everything's complete, Wisconsin electric consumers would not be on the hook for power lines to serve the U.P. once the Presque Isle plant closes.
Consumer groups and state regulators from both Wisconsin and Minnesota have been wrestling with the question of who should pay for the power being made at Presque Isle.