MADISON, Wis. (WSAU) – The state Public Service Commission gave final approval Thursday to plans for a biomass power plant in Rothschild.
The panel’s 3-0 vote grants We Energies a certificate of authority to build and operate the 50-megawatt plant near the Domtar paper mill.
The commission set at least three conditions when it gave verbal approval Friday, including an either-or option that requires one of the two sides to put up $10 million more in capital costs or raises Domtar's fuel costs. Commissioners also want Domtar to pledge collateral, like real estate or letters of credit, to match its $47 million capital investment.
A written order gives the two companies 45 days to work through the conditions, though We Energies could reach a decision within the next week, said spokesman Brian Manthey. The decision will determine whether the project will happen or not.
“Either decision will be a very important for Domtar, We Energies, but also for Rothschild,” Manthey said.
Domtar spokesman Craig Timm says the papermaker is not done reviewing the order.
“Since it's just been finalized, we do need time to look through all the order points and take it from there,” Timm said.
Building the $255 million facility will create 400 temporary construction and 150 permanent jobs that are needed to supply the fuel. Domtar will gather the woodby biomass – essentially wood scraps and other forest material – from within a 75-mile radius of the plant.
The DNR granted two required air permits in late March. But the group Save Our Air Resources or SOAR has filed a legal challenge to the decision. The challenge will need to be resolved before construction on the plant can begin.
