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WPS agrees to buy Fox Energy's Kaukauna plant for $440M


GREEN BAY, WI (WTAQ) - An electric utility plans to spend $440 million to buy an existing power plant in Kaukauna that’s fueled by natural gas.

The Wisconsin Public Service Corporation of Green Bay said Monday it agreed to buy the Fox Energy Company plant that’s owned by General Electric and TyrEnergy.

State and federal regulators would have to approve the deal. And if there are no snags, Public Service says the deal should be finalized by April 1st of next year.

Utility president Chuck Cloninger said the purchase makes sense for a number of reasons. He said the natural gas plant would add diversity to a power generation fleet that relies heavily on burning coal.

Cloninger also said the more economical natural gas would help reduce energy costs for Public Service customers.

Utilities are being pressured by the federal government to either shut down its coal-fired power plants, or add pollution controls.