The WEC Energy Group announced Aug. 15 that it plans to construct, own and operate 170 megawatts of new natural gas generating capacity across two sites in the Upper Peninsula. Pending regulatory approvals, the proposed facilities are expected to commence operation in 2019.

The new energy capacity will allow for the long-planned closure of the aging coal-fired Presque Isle Power Plant in Marquette in 2020.

Wisconsin-based WEC Energy, through its proposed Upper Michigan Energy Resources Corp., made the announcement under the banner of a new 20-year energy agreement with  Cliffs Natural Resources Inc., operator of the Tilden iron ore mine near Marquette.

Cleveland Cliffs said the agreement "will provide Cliffs' Tilden Mine with a clean, cost-effective and highly efficient energy generating capacity solution and also resolve the long-term energy reliability issues facing the residents in Upper Peninsula of Michigan."

"With a significant and longstanding presence in the Upper Peninsula of Michigan that spans over 160 years, Cliffs' commitment to operate in the region for many more years to come has been greatly enhanced through this new energy agreement with WEC Energy Group," said Lourenco Goncalves, Cliffs' chairman, president and CEO. "Our Tilden Mine produces among the highest quality pellets in North America."

The corporate announcement of the two new gas-fired electrical generation plants was short on specifics, including the type of plants that will be built and where they will be located. However, the Milwaukee Journal-Sentinel said the plants would cost $255 million and contain multiple large natural gas-fired internal combustion engines, similar to those that would power a freight locomotive, stacked side-by-side in a building.

The Sentinel said the cost of the project will be shared by Cliffs and other Michigan customers of WEC Energy. The newly formed Upper Michigan Energy Resources Corp. would serve customers formerly served byWEC's two utilities, We Energies of Milwaukee and Wisconsin Public Service of Green Bay. Power distribution lines will also be upgraded.

Electrical cost, reliability and the future source of power have all been concerns in the U.P. in recent years.

"WEC Energy Group is delighted to have successfully collaborated with Cliffs and the State of Michigan to arrive at this cost effective, clean-fueled, long-term viable solution for the electricity issues facing the Upper Peninsula," said Allen Leverett, CEO of the WEC Energy Group.