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Wisconsin utility turns to ABS market to fund shutdown of coal power plant


The single-class, Triple A rated transaction,
WEPCo Environmental Trust Finance I 2021, is expected to raise US$118.81m and will be secured by a special fee the utility will collect from its customers.
Barclays is the lead underwriter.
In November 2020, the Wisconsin state legislature approved the bond issuance for WEPCO to recover US$100m of the undepreciated costs associated with the environmental control activities at the Pleasant Prairie Power Plant.
This kind of securitization can lower the cost to customers on a present value basis compared with other methods of financing. In a pre-sale report, Fitch estimated the net present value benefits from securitization were around US$41m compared with traditional utility ratemaking. ....

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WEC Will Retire Half of Oak Creek Power Plant


1,800 megawatt plant will be replaced with clean energy, natural gas.
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The plants, in Oak Creek, Wis., near Milwaukee, are coal-fired electrical power stations. Coburn Dukehart/Wisconsin Watch
The state’s largest utility announced this week that it will retire 1,800 megawatts of coal and natural gas generation as part of a $16 billion plan.
Gale Klappa, executive chairman of WEC Energy Group, made the announcement to investors in a conference call on Tuesday. The plan includes the retirement of the 1,100-megawatt South Oak Creek coal plant in southeastern Wisconsin over the next five years. The plant is owned by We Energies, a WEC Energy Group subsidiary. ....

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