What’s Wrong with MG&E and its Dirty Coal Energy 

From 19th century London to 21st century Madison.... 

Madison is home to five (that’s right - FIVE) antiquated coal fired power plants.  The three major ones include the Dept. of Administration’s Capitol Heating Plant (built in 1908 with no modern pollution control), the UW-Madison’s Charter Street Plant (built in 1956 with very little modern pollution control) and the MG&E Blount Street Plant (built in 1902 also with no modern pollution control).  Plus, the state runs two other plants on a combination of coal, natural gas, and oil at Hillfarms and Mendota.  In fact, Wisconsin still gets 75% of its electricity from dirty coal power plants and thus routinely violates federal air quality standards, which prompted the Sierra Club to file a Clean Air Act lawsuit back in Dec. 2006. 

Known as Wisconsin’s filthiest power plant, MG&E’s Blount St. plant in the very heart of Madison generated about 5% of the electricity for its 135,000 customers in 2006.  Another 44% of MG&E’s electricity came from its coal plant in Columbia, WI – just upwind from Madison and the Yahara Watershed.   In contrast, MG&E’ s highly touted $15 million Kewaunee wind farm with 17 turbines is a drop in the bucket at half of 1% of its total electricity output.  

The green washing doesn’t stop there.  In 2004 MG&E built a brand new cogeneration plant on the UW-Madison campus.  A $125,000 campaign contribution from MG&E to Sen. Chuck Chvala’s secret campaign fund helped win approval for the project. Promises made by MG&E executives and UW bureaucrats that the new natural gas plant would enable them to phase out the Charter St. coal plant proved false.  Instead, over $80 million in public money was used to underwrite yet another corporate-controlled power plant in Madison dependent upon on another expensive non-renewable energy source.  In the end, MG&E executives and shareholders made off with millions at the expense of state taxpayers and university students.   

MG&E has now pledged to switch the Blount St. coal plant to natural gas by 2011.  But, once again, there are a few strings attached – namely, the public must first approve the powerline proposed by American Transmission Company (ATC) so that MG&E can become a global energy trader.  If approved, this line would shunt hydroelectricity from as far away as Manitoba into the Midwest power grid.  Indigenous communities and family farmers have been resisting the powerline for decades, and as grassroots resistance grows in Dane County, MG&E’s true mercenary nature has been revealed.   Gary J. Wolter, MG&E’s CEO sits on the ATC board, while MG&E’s Transco Investment LLC subsidiary holds much ATC stock.  MG&E is also a heavy investor in Wisconsin Energy’s contested coal power plants in Oak Creek near Milwaukee.  Ironically enough, on April 5th, 2005 when Gov. Doyle signed an executive order creating a new Office of Energy Independence, he also authorized construction of yet another coal fired power plant in Wisconsin.  

What Are the Consequences of Dirty Coal Energy for Madison? 

Anyone who drives (or bikes or walks) in downtown Madison gets the “pleasure” of seeing the belching stacks of MG&E’s coal plant on a daily basis.  Nearby residents have to deal with a daily dose of soot and ash that makes hanging your clean laundry outside a dubious proposition.  MG&E’s Blount St. coal plant remains the largest single source of soot and smog in all of Dane County, and is also the largest single source of greenhouse gas emissions.  Invisible pollutants that enter people’s lungs or precipitate into the nearby lakes are an even worse threat.  MG&E’s Blount St. coal plant is far and away the largest source of mercury pollution in Dane County, which directly affects anyone who eats fish from the Yahara Watershed.   The Madison School District reports increasing asthma rates among children, and 1 out of 10 Dane County residents (40,000+ people) have been told by a doctor that they suffer from asthma.  For a city with such a progressive “good life” reputation, it is shocking that this health menace still persists.  

Who Really Profits From the Burning of Dirty Coal? 

MG&E may have serviced street lamps back when it started in 1855, but today it is a massive corporation with close to $1 billion in assets and a guaranteed rate of return of 11% for its shareholders - thanks to the largesse of the Public Service Commission.  Concerns that a wannabe “Enron” might be emerging in Madison’s backyard were first raised in mid 2006 by members of the International Brotherhood of Electrical Workers (IBEW) Local 2304 when MG&E tried to eliminate pension benefits for new hires as part of contract negotiations.  As already mentioned, there is a long sordid history of kickbacks, conflicts of interest, and sweetheart deals which have enabled corporations like MG&E to continue their dirty energy work in Wisconsin.  

In 2003 the DNR and MG&E signed a cooperative environmental agreement, basically letting the utility sidestep certain regulations in exchange for a pledge to do better in other areas.  Many would argue that such cozy ties between MG&E and the DNR have compromised the state’s capacity to defend the public’s interest.  A similar “scratch my back and I’ll scratch yours” relationship exists between MG&E and certain environmental organizations and social service agencies which receive generous corporate donations (actually provided by electricity ratepayers) and in exchange often remain silent or serve as apologists when others dare to criticize MG&E.   

Want Clean Energy? – Then Municipalize and Decentralize Your Supply! 

Believe it or not, over 43 million people in the U.S. actually get their electricity from publicly owned utility companies, leading many to wonder just why residents and ratepayers in Madison and Dane County have not yet municipalized MG&E.  If MG&E was brought under local control and democratic oversight, than it would be much less interested in burning dirty coal and building power lines simply to line the pockets of its executives and shareholders.  Wisconsin spends over $12 billion per year importing energy into the state. Through serious conservation programs, increased energy efficiency, and development of renewables, this money could be more wisely reinvested in the local economy and create good jobs here at home.  Just imagine – one day in Madison someone will be able to turn on a light and not worry that their use of energy may have destroyed indigenous communities or contributed to the extinction of polar bears.   

This factsheet was produced for Earth Day (4/22) 2006 by:   

Madison Infoshop (IWW I.U. 620)

1019 Williamson St. #B, Madison, WI 53703 

tel. 608-262-9036  www.madisoninfoshop.org