Some Caledonians seek piece of utility pie

BY DAVID STEINKRAUS, Journal Times, 3/31/03

Monday, March 31, 2003 9:27 AM CST

The city of Oak Creek and We Energies reached an understanding about a proposed power-plant expansion -- an understanding that is worth million of dollars to the city.

This doesn't make the proposed construction of new power generators any more certain, but some government officials in Racine County say they have more incentive to attempt a similarly beneficial deal with the utility.

We Energies wants to add three generators to its Oak Creek facility, and both Oak Creek and Caledonia were listed as possible sites.

Under the agreement announced last Tuesday, We Energies will invest $20 million in the redevelopment of old industrial land in Oak Creek, and the city will receive $2.5 million to reduce the impact of construction. The agreement takes no stand on what will fuel the generators -- whether coal or natural gas, said Robert Kufrin, Oak Creek's city administrator.

The deal establishes new emissions limits for the Oak Creek generators, too.

"It'll be stricter than the requirements of the DNR (Department of Natural Resources)," Kufrin said. The power plant's year 2000 emissions of about 38,400 tons of pollutants will become the baseline, he said, and We Energies promises it will reduce its emissions to about 31,000 tons.

The company is asking the DNR for an additional 25,000 tons on its air quality permit, but that is a worst-case request, said Richard Cieslak, spokesman for We Energies. It's like a car engine, he said: Your car has plenty of power but you need only a part of that power during your daily drives.

While the agreement is one factor that will be looked at by the state Public Service Commission as it considers the utility's application to build the generators, it is not the only factor, said Annemarie Newman, spokeswoman for the commission. The PSC has the right to approve or reject the agreement, in part because it appears that money for the city will come from rate payers, she said.

News of the deal won praise from a coalition interested in the jobs that construction will provide, but there was no praise from Susan Greenfield, chairman of the Caledonia Town Board.

"I am, we all are -- and we being the larger RESET group -- are all very disappointed that Oak Creek decided to settle for the money and not fight for cleaner air, a cleaner environment," she said. RESET is a citizens' group opposed to the planned use of coal-fired generators in the power plant expansion. Opponents felt hopeful that the city would maintain its early opposition, she said. "And it's clear to us that in the end, for the city of Oak Creek, it was all about the money. And they have essentially sold out the health and welfare of the people of southeastern Wisconsin."

Outgoing town Supervisor Larry McCalvy has a different view. He's seeking a special Town Board meeting this week to discuss whether the town should open talks with We Energies. One concern of town residents has been access by rescue workers to the eastern portion of the town -- access that may be blocked by an increased number of trains hauling coal to the new generators.

Perhaps We Energies would contribute money toward a new fire station, McCalvy said. Perhaps there can be other accommodations, he said.

"I don't know what can be done, but if we sit down and talk we can find some kind of mutual agreement."

And in a time when state and federal payments are shrinking, and when citizens ordered a cut in the town budget, the town needs alternate sources of income, he said.

Greenfield said she would rather delay the meeting until the next Town Board takes office.

"What's the rush?" she said.

Another source of money is also what Kenneth Vetrovec sees. He is vice chairman of the County Board and is one of the advocates of a resolution that would order the county executive to open talks with We Energies. The resolution is scheduled for a vote at the first board meeting in April.

State law provides for shared revenue payments to the county and municipality that host a power plant, and his understanding, Vetrovec said, is that this could mean more than $1 million annually for the county and for Caledonia. (Oak Creek receives $750,000 annually, Kufrin said.)

Perhaps one of the generators could be located in Caledonia, or perhaps a wallboard plant -- using a byproduct of coal-fired generators -- could be placed in the town, Vetrovec said.

"But to not be at the table, I think, would be doing a disservice to taxpayers," he said.

The success of Oak Creek in its negotiations only makes that more apparent, he said.

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