Wisconsin gas plant proposals test state review process

Wisconsin regulators are reviewing proposals for two new natural gas power plants, and the debate touches on something that could eventually affect electric bills for homeowners in the state. Chicago-based Invenergy wants to build the Red Oak Ridge and Foundry Ridge Energy Centers, together costing $2.26 billion, mainly to supply power for large data centers, including a Microsoft campus and a project tied to OpenAI and Oracle. If approved, We Energies plans to buy both plants outright.

The concern raised by environmental advocates, including the Union of Concerned Scientists, is that Wisconsin reviews plant construction and utility ownership in separate steps, rather than through a single long-term planning process used in some other states. Critics say this means regulators approve construction before fully weighing costs, alternatives, or whether the demand from data centers will actually materialize. A university study estimated the plants' air pollution could cause over $1 billion in health-related damages over 30 years. Invenergy and We Energies say the current process is thorough and that data centers will pay their own costs under a special rate structure meant to protect residential customers from cost shifts.

No final vote date has been set, and construction has not been approved. For homeowners outside Wisconsin, the bigger picture is a preview of a national fight: as AI and data centers drive up electricity demand, states are debating how closely regulators should scrutinize new power plants before customers end up covering the bill.