WIEG and CUB applaud PSC vote to refinance $100 million from retired power plant

Posted November 8, 2020
Categories: Uncategorized

The PSC granted the request of WEPCO regarding a financing order to authorize environmental trust financing (6630-ET-101). The utility estimates the issuance of environmental trust bonds to securitize $100 million of the remaining investment in environmental controls at Pleasant Prairie will deliver $40 million in customer savings over time. Securitization is in some ways similar to refinancing a mortgage. It’s a process by which a utility replaces relatively high-cost debt and equity, which is charged to electricity customers, with lower-cost debt in the form of securitization bonds. This gives the utility a more favorable bond issue and saves ratepayers money. Securitization of undepreciated costs of Pleasant Prairie was a key part of the 2019 rate case settlement involving WEPCO and negotiated by consumer groups CUB and WIEG (05-UR-109).

http://www.thewheelerreport.com/wheeler_docs/files/110620cub.pdf

https://madison.com/wsj/658e94dd-143a-5496-82d1-44a7fd2fb141.html


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