Protecting the bottom line with rate case interventions

WIEG’s efforts on behalf of large energy users has led to significant results. In the last twelve years, investor-owned utility rate hike requests have been reduced by over 60% and roughly $1.3 billion. In addition, WIEG has successfully advocated for new market-based industrial tariffs. In just a few years, these efforts have resulted in savings of more than $120 million versus standard industrial tariffs without shifting costs to any of the utility’s other customer groups. Contact WIEG today to be part of our growing coalition and protect your company from the utility rate hikes and costly proposed energy legislation.

WPL 2024-2025 base rate case (6680-UR-124)

The PSC approved an electric increase of $49.4 million (an overall rate increase of 3.8%) and natural gas increase of $12.7 million (an overall rate increase of 5.1%) in 2024. The PSC approved an electric increase of $109.1 million (an overall increase of 8.3%) and natural gas increase of $12.1 million (an overall increase of 4.8%) over two years. Industrial customers had electric increases of roughly half of the average in both 2024 and 2025. There will be a $0.004699/kWh surcharge collected through December 2025. WPL’s 2024 fuel costs were authorized for $17.74/MWh. The key drivers for the filing include revenue requirement impacts of increasing electric and gas rate base, including solar generation and battery storage.

WPL shall submit additional analysis in its next rate case proceeding of alternatives regarding recovery of the remaining useful life of the Edgewater Unit 5, including without limitation an analysis of the impacts on levelization of the remaining $473 million net book value resulting from an adjustment to the ROE for Edgewater 5, additional cost sharing methodologies, and securitization of the full remaining value of environmental controls. Edgewater Unit 5 is scheduled to retire by June 1, 2025.

NSPW 2024 base rate case (4220-UR-126)

The PSC approved an electric increase of $1.1 million (an overall rate increase of 0.1%) and a natural gas increase of $5.4 million (an overall rate increase of 3.2%) for 2024. Most electric customers had increase close to the system average. Xcel Energy has an integrated system and 16% of their Upper Midwest costs flow proportionately to their Wisconsin customers through the Interchange Agreement. Upper Midwest capital expenditures in wind farms, other generation, transmission and distribution system upgrades, along with advanced metering infrastructure are increasing the revenue requirement. NSPW’s 2024 fuel costs were authorized for $25.57/MWH.

MGE 2024-2025 base rate case (3270-UR-125)

The PSC approved an $7.3 million electric increase (an overall rate increase of 1.5%) and a $5.3 million natural gas increase (an overall rate increase of 2.4%). The PSC approved a $27.5 million electric increase (an overall rate increase of 5.8%) and an $8.6 million natural gas increase (an overall rate increase of 3.6%) over two years. Industrial electric customers had increases well below the system average in both years. The increased costs are largely due to capital expenditures associated with purchasing a portion of West Riverside Energy Center, solar projects and grid modernization projects. MGE’s 2024 fuel costs were authorized for $23.81/MWH. There will be a $0.00291/kWh surcharge collected through September 2024. 

WEPCO 2024 limited rate case reopener (05-UR-110)

WPSC 2024 limited rate case reopener (6990-UR-127)

The PSC approved a net $32.8 million electric rate decrease (an overall rate decrease of 2.6%). Industrial electric customers had larger decreases than the system average. WPSC did not request any changes to their natural gas rates. WPSC’s limited reopener was related to recovering new capital investments that will achieve commercial operation in 2023 and 2024 as well as to address reduced O&M expenses from future coal plant retirements. WPSC’s 2024 fuel costs were authorized for $27.19/MWh.

Other regulatory initiatives include:

WIEG successfully sought an incremental load Real Time Market Pricing (RTMP) tariff for We Energies’ customers. 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. 

WIEG also worked with WPSC and WPL to develop nominated load real time tariffs. WIEG 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.

A similar nominated load real time program was approved for WPL’s largest customers in the summer of 2017. The Day Ahead Market Pricing rider (DAMP) is now in place for qualified 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. In just a few years, these efforts have resulted in savings of more than $120 million versus standard industrial tariffs.

Recent legislative initiatives include:

Coalition efforts to block passage of monopoly construction legislation

Anti-competition, anti-consumer legislation was unfortunately reintroduced as AB 470 and SB 481. Wisconsin’s electric rates are already too high for businesses. There will be a major legislative effort in early 2024 to defeat this legislation. Please contact us to find out how you can be part of the growing coalition.

Industrial RRCs & waste heat recovery/waste heat to power

Industrial customers can create and keep renewable resource credits (RRCs) in Wisconsin, including from waste heat recovery projects. WIEG was instrumental in passing two new laws to help keep energy-intensive operations competitive in Wisconsin (2013 Act 300 and 2017 Act 53). Applications are now available on the PSC’s website.