We Energies extends Oak Creek power plant operations through 2026

Published 25/06/2025, 13:26
We Energies extends Oak Creek power plant operations through 2026

MILWAUKEE - We Energies announced Wednesday it will postpone the retirement of units 7 and 8 at its Oak Creek Power Plant until the end of 2026, extending operations by one year beyond the previously scheduled closure at the end of 2025. The decision comes from its parent company WEC Energy Group (NYSE:WEC), a utility giant with a market capitalization of $33.6 billion and an overall "Fair" financial health rating according to InvestingPro analysis.

The company cited two primary factors for the decision: tightened energy supply requirements in the Midwest power market and the need to maintain reliable service during peak demand periods. This strategic move aligns with WEC’s strong operational performance, reflected in its $9.1 billion revenue over the last twelve months and stable business model with relatively low price volatility.

"Reliability is at the forefront of everything we do. This decision will help us keep the lights on every day and every season," said Mike Hooper, president of We Energies.

The company noted that national grid experts recently warned of elevated risks of power supply shortages and price spikes in the Upper Midwest due to plant closures and increasing energy demand.

Oak Creek units 7 and 8, which began operating in the 1960s, are equipped with modern environmental controls and have a combined capacity of 610 megawatts. The units will remain available to meet high energy demand periods through the end of 2026.

We Energies stated it is currently planning, permitting or constructing more than 6,300 megawatts of new generation capacity, including natural gas, wind, solar and battery storage projects over the next five years. According to the company, the extension of Oak Creek operations will not delay these projects.

We Energies serves more than 1.1 million electric customers and 1.1 million natural gas customers in Wisconsin. The company is a subsidiary of WEC Energy Group Inc. (NYSE:WEC), which has maintained dividend payments for 55 consecutive years and currently offers a 3.4% dividend yield. According to InvestingPro, the stock appears to be trading near its Fair Value, with additional insights available in the comprehensive Pro Research Report, part of the analysis covering 1,400+ US equities.

The announcement was made in a press release statement issued by the company. For investors seeking deeper analysis of WEC’s financial health, growth prospects, and extensive metrics, InvestingPro offers detailed insights, including 8 additional ProTips and comprehensive valuation analysis.

In other recent news, WEC Energy Group reported impressive financial results for the first quarter of 2025. The company exceeded earnings expectations, posting an earnings per share (EPS) of $2.27, surpassing the forecasted $1.97, and achieved a revenue of $3.15 billion, which was higher than the anticipated $2.87 billion. Additionally, Scotiabank analysts raised their price target for WEC Energy to $115, maintaining a Sector Outperform rating, citing the company’s strong performance and potential for earnings and dividend growth. In a strategic move, WEC Energy announced a $700 million convertible notes offering, with proceeds intended for general corporate purposes, including the repayment of short-term debt.

The company also held its annual shareholder meeting, where all proposed directors were elected, and key proposals, including amendments to voting requirements, were approved. Furthermore, WEC Energy announced executive changes, appointing Michael Hooper as Executive Vice President and Chief Operating Officer. The company reaffirmed its 2025 earnings guidance, projecting EPS between $5.17 and $5.27, and emphasized ongoing investments in renewable energy projects. These developments reflect WEC Energy’s strategic focus on growth and financial discipline in the current market environment.

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