Protecting the bottom line with rate case interventions

WIEG is currently forming ad hoc intervention groups for the WEPCO, WPSC and NSPW rate cases/settlement applications. Please contact WIEG for more details.

WIEG’s efforts on behalf of large energy users has led to significant results: In 2016, Wisconsin’s investor-owned utilities requested a total increase of $54.9 million in electric and natural gas rates. WIEG intervened in these rate cases and helped the PSC turn the combined requests for rate increases to an overall rate increase of $4.7 million. That was a reduction of $50.2 million or 91% from the original requests. The PSC reduced one utility’s Return on Equity down to 9.8%, which is the lowest since 1972. In the last five years, investor-owned utility rate hike requests have been reduced by two-thirds for a total of over $1 billion.

WPL (6680-UR-120) base rate case

WPL rate case resulted in an overall average increase of $9.4 million or 0.83%. Large customers had an overall $7.3 million electric rate decrease, which is a 1.37% decrease for Cp-1 and a 3.19% decrease for Cp-2.

MGE (3270-UR-121) base rate case

MGE rate case resulted in a $3.3 million electric decrease or between 1.1% to 2.3% decreases for large customers. The PSC reduced the utility’s Return on Equity down to 9.8%, which is the lowest since 1972.

NSPW (4220-UR-122) limited scope rate case

The PSC was approved a $22.5 million or 3.2% average annual electric rate increase. Large high load factor customers are below the average increase.

WEPCO (6630-FR-106) 2017 Fuel Cost Plan

The PSC’s decision resulted in a $36.3 million decrease or between 1.6% to 2% decrease for WEPCO’s large customers.

WPSC (6690-FR-105) 2017 Fuel Cost Plan

WPSC has a fuel proceeding that resulted in a decrease of $4.7 million or 0.47% average decrease and large customers had an average 0.7% decrease.

Other regulatory initiatives include:

Developed a new rate structure that saves millions of dollars for large energy users. WIEG successfully sought a Real Time Market Pricing (RTMP) tariff for We Energies’ customers. In just a few years, these efforts have resulted in savings of more than $18 million for those WIEG members that take service under the new RTMP from We Energies. Following this win, WIEG successfully worked for the adoption of a similar tariff (New Load Market Pricing, or NLMP) for both WPSC and WPL customers. Together, these new tariffs help promote economic growth and development in Wisconsin, without shifting costs to any of the utility’s other customer groups. WIEG successfully negotiated changes to a WPSC tariff that is also called RTMP. Under the revised RTMP tariff, customers pay a $5.50 per MWh adder, but then pay day-ahead market prices. Click below to view recent developments regarding these innovative tariffs: http://psc.wi.gov/apps35/ERF_view/viewdoc.aspx?docid=183769 http://www.wisconsinpublicservice.com/company/wi_tariffs/rtmp.pdf

Click below to view recent developments regarding these innovative tariffs:

http://psc.wi.gov/apps35/ERF_view/viewdoc.aspx?docid=183769

http://www.wisconsinpublicservice.com/company/wi_tariffs/rtmp.pdf