WEC Energy Group, parent company of We Energies, signed a deal with mining firm Cliffs Natural Resources that will support two natural gas engine plants in the Upper Peninsula (UP) region of Michigan and replace power currently supplied by the coal-fired Presque Isle Power Plant, due to retire in 2020 (Figure 1).

The 365-MW Presque Isle coal plant will be replaced by a pair of natural gas engine plants under an agreement announced on Aug. 15. Courtesy: We Energies

The deal has been in the works for several years, and grows out of discussions with the Michigan state government on future electric supplies for the UP, which themselves grew out of Wisconsin Energy’s acquisition of Integrys Energy Group (WEC was formed out of that acquisition).

Last year, We Energies and the state settled on a series of agreements to change rate structures in the UP while Cliffs agreed to purchase power from Presque Isle until its retirement. The deal on Aug.…

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