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 thirteen years, investor-owned utility rate hike requests have been reduced by 40% and roughly $1.4 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 additional utility rate hikes and costly proposed energy legislation.
WEPCO 2025-2026 base rate case (05-UR-111)
The PSC approved an increase in electric revenues of $138.8 million or an increase of 4.17% for 2025. In addition, the PSC approved a total increase of $313.5 million or cumulative increase of 8.69% over two years. Most industrial electric customers were assigned below average increases and half the increase of residential customers. The primary drivers of the increase in electric rates are continued capital investments in renewable and natural gas-fueled generation, increased costs driven by higher inflation and interest rates, and the recovery of regulatory assets. Transmission expenses from ATC contributed to the rate increase. WEPCO’s fuel costs are high ($42.04/MWH authorized for 2025) but are now millions lower than authorized in 2024. The PSC voted to approve several rate design changes recommended by WIEG. The utility proposed 100% natural gas rate increases for some large transportation customers over two years and fortunately the final written order had increases significantly less than the original filing.
WPSC 2025-2026 base rate case (6990-UR-128)
The PSC approved an increase in electric revenues of $55.1 million, or an increase of 4.48% for 2025. In addition, the PSC approved a total increase of $85.1 million or cumulative increase of 6.82% over two years. Most industrial electric customers were assigned below average increases and half the increase of residential customers. The primary drivers of the electric rate increase are continued capital investments in renewable and natural gas-fueled generation, increased costs driven by higher inflation and interest rates, and the recovery of regulatory assets. Transmission expenses from ATC contributed to the rate increase. WPSC’s fuel costs are trending lower ($24.42/MWH authorized for 2025). The PSC voted to approve several rate design changes recommended by WIEG. The utility proposed over 100% natural gas rate increases for some large transportation customers over two years and fortunately the final written order had increases significantly less than the original filing.
WPL 2025 fuel cost plan (6680-ER-104)
WPL’s fuel costs have increased a net $17.8 million for an average rate increase of 1.31%. WPL’s 2025 fuel costs were authorized for $19.21/MWH, which is up from $17.74/MWH in 2024. WPL’s largest customers should expect a total electric bill increase of just under 5% from a combination of the 2025 Fuel Cost Plan, an existing fuel surcharge, plus a step increase from the last base rate case (the new $0.001602/kWh is added on top of the existing $0.004667/kWh surcharge = $0.006269/kWh, which is added on top of the Cp-1 step increase of 2.7% in 2025 and Cp-2 step increase of 2% for 2025).
NSPW 2025 fuel cost plan (4220-ER-103)
NSPW’s fuel costs have decreased a net $23.9 million for an average rate decrease of 2.8%. Large customers would have an electric bill impact of between -3% to -5%. The PSC authorized 2025 fuel costs of $22.33/MWH, which is down from $25.57/MWH authorized in 2024. The ECAC credit of $0.00346/kWh is effective January 1, 2025, through December 31, 2025.
MGE 2025 fuel cost plan (3270-ER-101)
MGE’s fuel costs have decreased by a net of $7.4 million or average 1.5% electric rate decrease. The largest MGE customers should expect a small rate decrease in 2025 because the 2025 Fuel Cost Plan rate decrease offsets a step increase from the last base rate case (3270-UR-125). The PSC authorized 2025 fuel costs of $22.16/MWH, which is down from $23.81/MWH authorized in 2024. The $0.00247/kWh credit is effective January 1, 2025, through December 31, 2025.
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. 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 defeated in the last two legislative sessions. Wisconsin’s electric rates are already too high for businesses. Unfortunately, Wisconsin’s utilities plan to reintroduce a similar transmission Right of First Refusal (ROFR) bill in the upcoming legislative session. There will be a major legislative effort in early 2025 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.
