MGE Energy Extends Coal Operations Suspension

By Bobby Samwell • Wednesday, December 04 15:19 • Permanent Link

Alliant Energy, Madison Gas and Electric Company (MGE), and Wisconsin Public Service Corp. (WPS) have jointly announced plans to extend the suspension of coal operations at the Columbia Energy Center until the end of 2029, providing time to explore converting at least one of its units to natural gas. This shift from the previous date of 2026 is aimed at furthering reliability, supporting customer growth, maintaining affordability, and advancing sustainability goals.

The decision is driven by changing market conditions, including recommendations from the Midcontinent Independent System Operator (MISO) to accelerate resource additions, monitor large load additions, and delay resource retirements to manage anticipated growth in electricity demand and support reliability and load growth.

The potential conversion to natural gas, if approved by regulators, would satisfy future capacity needs and complement the co-owners’ renewable resources, supporting the ongoing transition toward greater use of renewable energy.

In addition, the co-owners have reaffirmed their commitment to carbon reduction goals and the elimination of coal as a generation source, aligning with their pursuit of cleaner, more sustainable energy solutions in a cost-effective and responsible manner.

Furthermore, an application for state regulatory approval was filed for the Columbia Energy Storage Project, which received a cooperative agreement with the U.S. Department of Energy. The project aims to construct a compressed carbon dioxide long-duration energy storage (LDES) system at the Columbia Energy Center site, providing at least 10 hours of energy storage to enhance reliability and dispatchability on the grid. Pending approval, the energy storage system is expected to be operational by the end of 2027.

These developments reflect the companies’ commitment to addressing evolving energy needs, market dynamics, and sustainability goals while ensuring reliable and affordable energy for customers and communities in Wisconsin. Today the company's shares have moved -1.5% to a price of $102.51. If you want to know more, read the company's complete 8-K report here.

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