Why It's Needed
WPS receives its entire supply of natural gas through a single transmission pipeline. Two challenges result:
- Supply - Though a sole source of gas has been reliable to date, the demand for natural gas in northeastern Wisconsin will eventually outpace the ability to supply it. Large industrial customers on the WPS System currently are facing a two-year wait for connection.
- Pricing - Relying on a single source of transmission limits our ability to shop and obtain gas at the lowest possible prices for our customers.
Having access to ample sources of affordable energy is the key to a prosperous northeastern Wisconsin. The addition of these natural gas laterals to the Guardian II pipeline is a big step towards reaching that important goal.
Background
In February 2006, Northern Border Company (now ONEOK, Inc.) announced plans to extend its existing Guardian natural gas transmission line, currently running from Joliet, Illinois, to just north of Delavan, Wisconsin. Named "Guardian II," the plan calls for a new pipeline extension to be constructed from Delavan to Green Bay, an additional 110 miles. The Guardian II line will end at the West Green Bay meter station.
WPS will take advantage of this new supply of natural gas. Approximately 55 miles of high-strength steel service laterals will be connected to Guardian II at four points: Fond du Lac, Chilton, southern Brown County and southwest Green Bay. In addition, three new regulator stations will be built to keep the natural gas flowing through the laterals at a consistent pressure.
With these connections in place, WPS customers would realize many advantages over the current system, including:
- Adequate supplies to meet future demand
- Greater access to lower-priced gas
- Improved reliability
- Support for economic growth and future business expansion
Projected Costs
Total cost for the project are approximately $75 million. Customers will see a 1% to 2% increase in their natural gas costs the first year after the laterals are operational (about $1.20 per month for the average residential gas customer), declining to zero by the tenth year. Ideally, price reductions resulting from increased competition could offset this increase.