The thirst for energy is generating billion-dollar projects in the Midwest.

Indeed, the biggest single project overall in the region might well be the $7 billion Power the Future initiative, an energy-producing development that has been started by We Energies, the primary utility subsidiary of holding company Wisconsin Energy Corp. in Milwaukee.

Along with that project, a $1.3 billion plan addresses improvements to the power grid.

The Transmission Expansion Plan received approval in June from the board of Midwest Independent Transmission System Operator Inc., a Carmel, Ind.-based organization of 28 transmission-owning members and other energy firms in 15 Midwest states and Manitoba, Canada. The transmission companies themselves fund their projects, and the biggest is likely the $420 million Arrowhead-Weston line, a 225-mi.-long project mostly in Wisconsin.

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MTEP's formal announcement was timely. It came just before a massive blackout in August that left millions in the eastern Midwest and Northeast stranded in the summer heat without power.

Around the rest of the Midwest, other power projects ensure the region keeps buzzing.

A Power Struggle

A looming energy shortage in Wisconsin is driving the Power the Future project.

"Based on predicted growth, we need more generation and we need to replace old, outdated facilities currently in use," said Russ Mehrman, director of construction management for Milwaukee-based We Power LLC, the building arm for Wisconsin Energy Corp. We Power will lease new facilities constructed as part of the initiative to We Energies.

About $3 billion in new generation will expand We Energies' capacity from about 6,000 MW to approximately 8,300 MW.

The five coal-based generating units at the Port Washington plant 35 mi. north of Milwaukee will be replaced with two combined-cycle natural-gas-fired power blocks for $650 million, Mehrman said. Combustion turbines will be installed, and the exhaust gas will go to heat-recovery boilers that produce steam to turn generators.

Two coal units have been knocked down, and demolition of the remainder will start this fall.

"The first [coal] unit was put on line in 1935, so we are looking at putting in much more efficient and environmentally friendly generation," he added.

The balance for the initiative's generation element will provide for two coal-fired units at the Oak Creek Power plant 10 mi. south of Milwaukee.

The two projects are on different timelines. At Port Washington, demolition of the coal units started in January 2003, and the project is expected to finish in 2008. Work at Oak Creek will likely start in March 2005 for completion in 2010.

About $2.7 billion will be channeled toward transmission upgrades, including adding more than a dozen substations and "miles" of power lines, Mehrman said.

And, $1.3 billion will go toward upgrading existing facilities with selective catalytic reduction units and scrubbers. The catalytic reduction units are designed to provide cleaner-than-normal emissions produced by coal-fired turbines.

Logistics of Power

The constrained Port Washington site has affected project logistics: The town is to the north and west, Lake Michigan is to the east and a bluff and overflow channel to the south.

"What is unique is the site," Mehrman added. "[The team] had to be creative."

The crew looked toward the water. Vessels on the Mississippi River and Lake Michigan were used to deliver materials and components, including stacks, ductwork and boilers. Some materials were off-loaded in Milwaukee and taken via barge to the plant where a crane on the existing coal dock was used for unloading.

Each of the two boilers, which were manufactured in Indonesia, was shipped modularly, with the biggest part weighing 250 tons.

"Most of the major materials are onsite, and the only thing we're waiting for is the steam generator," Mehrman said, adding that the component was being stored on a rail siding.

Even if the materials have mostly arrived, the site issues do not ease up.

For instance, a pit for a water pump is needed to provide cooling relief for the steam turbine, and the 40-ft.-deep hole will be below the lake level just yards away. The concrete-lined cofferdam is to be constructed to provide a watertight enclosure.

In January, the pit's walls were formed, yet keeping the concrete from freezing in the frigid Upper Midwest temperatures can be a struggle. Temporary encloses and propane heaters have been brought in to keep the ground warm.

Boise, Idaho-based Washington Group International Inc. has the engineer, procure and construct contract.

Two other recently started power-generation projects of note in the Midwest are in the earliest stages of construction, including a $180 million cogeneration project in Madison, Wis., said Jeff Newman, vice president and treasurer of Madison Gas & Electric Co. The project is slated for completion in spring 2005.

Bloomington, Ind.-based Hoosier Energy, a power-supply cooperative owned by 17 energy-distribution firms, is building a $90 million natural-gas fired generating plant in nearby Mitchell, said Chris Tryba, communications manager. It, too, is expected to be finished in the early part of 2005.

Stringing Wisconsin, Midwest

Like the Port Washington project, the Arrowhead-Weston power line under construction is intended to ensure reliability.

"Wisconsin has only four transmission lines coming into it from outside the state," said Pete Holtz, project manager for Waukesha, Wis.-based American Transmission Co., the owner. "Other states around us, such as Illinois and Minnesota, literally have dozens."

The project between Duluth, Minn., and Wausau, Wis., is expected to start in Minnesota in the first quarter and run through 2008. About half the line will go through existing transmission corridors.

The construction cycle will begin with surveying and soil testing and move into negotiating easements when needed. Construction follows a typical pattern for the approximately 1,200 steel towers to be raised, though variations are expected.

Concrete is poured for the foundations, while steel is received in a staging area for partial assembly. The steel is moved to the line site and erected by crane into towers 125 to 135 ft. tall. The wire is strung, sometimes in double circuits.

Between 20 and 30 vehicle visits will be necessary for each tower - or 24,000 to 36,000 trips, Holtz said.

Biosecurity needs to be maintained, especially in agricultural areas. Boots and tires are selected to ensure pathogens are not transmitted among farms.

Arrowhead-Weston is on the high end of the more than 100 individual projects Midwest ISO's members are pursuing, said Jeffrey Webb, director of planning for the organization. Some cost as low as $100,000, but all are intended to accommodate load growth and new generation.

Getting the public to understand the importance of transmission is the top issue. As a result, the group is working with the Federal Energy Regulatory Commission and state regulators to address residents' concerns and related issues.

"People are not used to looking at transmission line that may originate in another state and then have parts of it in their own state, so there's a share-benefit issue," Holtz added.