Avoiding the Stranded Asset Mistakes of the Past: A Case Study in Wisconsin

This case study by RMI examines the financial risks of stranded assets in Wisconsin, focusing on the early retirement of the Oak Creek Power Plant and the potential for repeating similar mistakes by investing in new gas-fired power plants.

• The early retirement of the 640 MW coal-fired Oak Creek Power Plant at the end of 2025 will create a stranded asset with $645 million remaining on the books. This results in residential ratepayers paying an average of $2.40 per month, or approximately $28.81 per year, for the next 17 years for a plant that provides no electricity.
• Wisconsin Electric Power Company (WEPCO) is proposing to replace coal power with gas-fired power, which RMI estimates would cost residential customers an average of $6.52 per month, or $903 in net present value (NPV) over a 30-year life. If the gas plant is stranded 17 years early, residential customers could pay an additional $1.96 per month, or $87.59 (NPV) over those 17 years.
• Various external factors could increase the cost of gas-fired power for WEPCO residential customers. Volatile natural gas prices, a projected 31 percent increase in prices due to US federal policy on liquified natural gas terminals, and supply chain bottlenecks for turbines could lead to an additional $57.86 annual cost, totaling $1,591 (NPV) over 30 years.
• RMI suggests that utilities can avoid stranded assets by investing in cleaner alternatives. Clean energy portfolios are already cheaper than 72 percent of new gas plants without subsidies and 99 percent when maximizing Inflation Reduction Act tax credits. Potential savings include $7 billion in the PJM region via grid-enhancing technologies and $17 billion nationwide by 2030 through virtual power plants.

APA

RMI (2025). Avoiding the Stranded Asset Mistakes of the Past: A Case Study in Wisconsin. https://rmi.org/resources/avoiding-the-stranded-asset-mistakes-of-the-past-a-case-study-in-wisconsin/

Chicago

RMI. Avoiding the Stranded Asset Mistakes of the Past: A Case Study in Wisconsin. 2025. https://rmi.org/resources/avoiding-the-stranded-asset-mistakes-of-the-past-a-case-study-in-wisconsin/.

Wikipedia

{{cite report |author=RMI |title=Avoiding the Stranded Asset Mistakes of the Past: A Case Study in Wisconsin |date=13 March 2025 |url=https://rmi.org/resources/avoiding-the-stranded-asset-mistakes-of-the-past-a-case-study-in-wisconsin/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025avoiding, author = {{RMI}}, title = {{Avoiding the Stranded Asset Mistakes of the Past: A Case Study in Wisconsin}}, institution = {RMI}, year = {2025}, month = mar, url = {https://rmi.org/resources/avoiding-the-stranded-asset-mistakes-of-the-past-a-case-study-in-wisconsin/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }