Wisconsinites Could Save Hundreds of Millions with Better Energy Planning, New Report Finds

Wisconsin is one of the few states without an Integrated Resource Planning process

MADISON, WI—A new report finds better energy resource planning could lower energy costs for Wisconsin consumers. Electricity bills are increasing around the country, but in Wisconsin, the problem is compounded by the state’s lack of an Integrated Resource Planning (IRP) process. The lack of a comprehensive, long-term energy planning process makes Wisconsin an outlier. 

Currently, state regulators must review proposals for new energy generation resources in a silo rather than as part of a long-term vision for meeting customers’ energy needs in the most affordable way.  

To identify possible benefits of an IRP, the research team at Synapse Energy Economics, commissioned by Advanced Energy United, examined what customers would have saved between 2021 and 2024 if electric utilities replaced some existing power plants with more optimized energy resource portfolios, something an IRP would prioritize. 

The report finds that during those years, consumers could have saved hundreds of millions of dollars if Wisconsin had utilized a comprehensive planning process. For example: 

• We Energies customers could have saved an annual average of $164 million per power plant from 2021 to 2024 by replacing aging power plants with a portfolio of renewable and storage resources. 

• Alliant customers could have saved an annual average of $10 million per power plant from 2021 to 2024. 

• Replacing the Elm Road power plant with a set of clean energy resources could have saved We Energies residential ratepayers $681 per household over the 2021-2024 period. 

• Replacement of Edgewater power plant with renewable and storage alternatives could have saved Alliant households $123 per household over the 2021-2024 period. 

“A comprehensive planning process would put transparency and consumers first,” said Emma Heins, Advanced Energy United’s Wisconsin Policy Principal. “An integrated resource planning process would help state watchdogs make sure statewide energy demand growth is scrutinized and planning decisions are made with affordability and reliability in mind.”

“Utility investment decisions directly impact ratepayers, and integrated planning helps ensure utilities procure the least-cost combination of resources to provide reliable, affordable electricity,” said Selma Sharaf, Senior Associate at Synapse Energy Economics. “Without a transparent, coordinated planning process, Wisconsin utilities make one-off decisions that ignore the rest of the electricity system and the ways different resources can complement each other.” 

The renewable energy industry is ready to meet this moment. 

“Wisconsin is facing historic demand and investment in our energy resources. An IRP gives us the ability to compare those options transparently and make sure we are building the resources that provide customers the best combination of affordability and reliability. As a local company building energy projects, clearer planning helps us and others in the industry make sure we have the people and capabilities ready to build what Wisconsin needs next,” said JD Smith, Director of Government & External Affairs for Arch Solar. 

An IRP would create a long-term, statewide roadmap that helps regulators understand how Wisconsin’s future energy needs can be met reliably and affordably. IRP is a forward-looking process that requires electric utilities to analyze how they will meet future electricity demand – considering a full range of resource options – before making large infrastructure decisions. It can help ensure that the state only builds the energy capacity it needs – which lowers the risk of overbuilding and creating future stranded assets. Today, Wisconsin regulators lack a comprehensive, statewide view of how investments in energy projects fit together. 

Wisconsin’s current energy planning system, the Strategic Energy Assessment (SEA), no longer meets the moment. The SEA is a snapshot in time, not a forum where utilities must model and compare alternative resource portfolios to identify the most cost-effective path that ensures reliable power supply. Without an IRP process, Wisconsinites are left with a piecemeal approach to planning for and building out our grid that focuses on meeting short-term requests for service rather than an efficient, modern grid that serves the whole state. 

“It’s long overdue that Wisconsin follow the lead of surrounding states and most states across the country and provide the Public Service Commission with more levers to advance affordability. That starts with better planning that puts a check on the incentives that exist today for utilities to overbuild the system,” said Tom Content, Executive Director of Citizens Utility Board of Wisconsin. “Until that’s fixed, Wisconsin’s utility regulators will be trying to head the state down the energy future highway without a GPS, or even a map.”

Access the full report here.