Canadian Energy major, TC Energy, announced Monday that it has completed and activated the "Wisconsin Reliability Project," a $700 million natural gas pipeline enhancement designed to improve reliability and meet rising demand across Wisconsin and northern Illinois.

The project, which came into service on November 1, involved replacing approximately 51 miles of aging pipeline with modern infrastructure and upgrading natural gas compression and meter stations in several locations. 

According to the company, the initiative directly addresses a projected 45% increase in Wisconsin's demand for natural gas over the next decade. 

The demand surge is partially attributed to the phase-out of coal-fired power and the energy needs of new data centers, said state Rep. Dave Steffen, R-Howard, chairman of the Assembly’s energy and utilities committee. 

Steffen advocates for an "all of the above" energy strategy, noting natural gas is a crucial source of baseload power.

Jon Draeger, vice president of U.S. Projects for TC Energy, also emphasized the project’s significance, stating that it would connect their state to “the energy it needs" while generating economic benefits. 

TC Energy estimates construction generated about $1.1 billion in economic output and contributed $68 million in state and local tax revenue.

Industry leaders, including Mike Hooper, president of We Energies and Wisconsin Public Service, said strengthening infrastructure is key to protecting customers from outages, particularly those caused by extreme weather.

Tom Content, executive director of the Citizens Utility Board of Wisconsin, supported the need for improved reliability, citing a December 2022 incident where equipment failure in an Illinois pipeline forced We Energies to call on customers to conserve gas.

However, Content warned that "all this investment in our natural gas infrastructure is going to be a driver of increases for utility bills going forward." He urged state regulators to prioritize customers as they approve local utility projects, particularly those related to energy-intensive data centers.

Meanwhile, environmental groups remain critical, arguing that expanding natural gas infrastructure is a shift from one fossil fuel to another, which will worsen climate change effects and lead to pollution.

TC Energy is also developing two other major projects touching Wisconsin: the Heartland and Northwoods projects, with a combined investment of $1.8 billion.