Governor uses veto pen to push new power plants, local cooperation

0 Comments | La Crosse Tribune, Jul 30, 2002 | by Sheehan, Tom

MADISON - Gov. Scott McCallum is using his veto power to encourage new power plants in Wisconsin and keep local government spending in check.

McCallum agreed to cut $40 million overall to the state shared revenue program in 2004 as part of the state budget repair bill. But he restored funding for about $28.8 million in annual shared revenue utility payments that would have been cut in 2004 under the Legislature's final version of the bill.

The shared revenue utility program sends money back to communities to replace tax revenue lost because local governments can't directly tax utilities, said state Budget Director David Schmiedicke. Without McCallum's veto, the program would not apply to communities that accept new power plants, Schmiedicke said.

The veto helps ensure local support for new power plants, said Priya Devaguptapu, spokeswoman for Calpine Corp. Calpine has proposed a 600-megawatt plant in the town of Beloit that would be built next to Alliant Energy's existing plant. The new plant would provide power to both Alliant and Madison Gas and Electric Co., Devagupatu said,

"Local officials made it clear that their support for the plant will depend on the continuation of the state incentives for hosting power plants," Devaguptapu said.

The veto could help utilities secure locations for plants that are needed to meet the state's demand for electricity, but won't ensure popularity of coal-fired power plants, said Rep. Bonnie Ladwig, R-Mount Pleasant.

The Racine County town of Caledonia, in Ladwig's district, is an alternative site for three new coal-fired plants proposed by Wisconsin Energy Corp. The plants would be located next to Wisconsin Energy's existing plant, about a mile away in the city of Oak Creek.

Some Caledonia residents have complained they will be stuck with added train traffic and air pollution, while Oak Creek receives shared utility payments. The town, however, could receive an much as $9 million in payments if the plants were built in Caledonia.

Wisconsin Energies' application is pending before the state Public Service Commission. The list of opponents to that plan includes environmentalists and the Racine area's largest business, S.C. Johnson and Son Inc.

As part of the same veto, McCallum restored the $58 milliona-year Expenditure Restraint Program, which rewards communities for limiting spending increases based on a formula tied to the rate of-inflation and population growth.

The budget repair bill also sets aside $45 million a year in shared revenue for communities that consolidate and coordinate services.

"My veto to restore expenditure restraint payments means that shared revenue will now include two savings incentives, rather than only one," McCallum wrote in his veto message.