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 roughly 60% and over $1 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.
WEPCO 2023 base rate case (05-UR-110)
The PSC approved a $283.5 million electric revenue requirement increase or average of 9.11%. Industrial electric customers were allocated below average increases. WEGO had a $46.1 million natural gas revenue requirement increase or average of 26.68% for transportation customers. WG had a $46.5 million natural gas revenue requirement increase or average of 13.69% for transportation customers. Natural gas increases vary widely by individual tariff. The PSC voted to adopt the tariff changes WIEG negotiated, such as the high load factor credit and no changes to the NLMP or RTMP adders. The PSC approved 2023 fuel costs of $40.87/MWH.
WPSC 2023 base rate case (6690-UR-127)
The PSC approved a $113.2 million electric revenue requirement increase or average of 9.82%. Cp-Primary was allocated an 8.47% increase. WPSC had a $26.4 million natural gas revenue requirement increase or average of 18.21% for transportation customers. Natural gas increases vary widely by individual tariff. The PSC voted to adopt the tariff changes WIEG negotiated, such as the high load factor credit and no changes to the NLMP or RTMP adders. The PSC approved 2023 fuel costs of $31.17/MWH.
MGE 2023 limited electric rate case reopener and 2023 fuel cost plan (3270-UR-124)
The PSC approved a $39 million or 9% average increase. Due to the impact of fuel, it is a double-digit rate increase for most large customers. The biggest driver was a $25 million increase from coal transportation constraints. The PSC approved 2023 fuel costs of $25.50/MWH. The PSC previously authorized a $0.00107/kWh surcharge throughout 2023 for $3.3 million of MGE’s under-collected 2021 fuel costs.
WPL 2023 Fuel Cost Plan (6680-ER-103)
The PSC approved a $47.1 million rate increase for fuel costs and a $0.004355/kWh surcharge in 2023. WPL has a separate $0.003396/kWh surcharge for under-collected 2021 fuel costs. The combined impact of the two surcharges equals $83.6 million or 9.1% for large customers. The two surcharges combined will show up as a $0.007751/kWh surcharge throughout 2023. The sudden jump in fuel costs was from coal transportation constraints. The PSC authorized 2023 fuel costs of $27.16/MWH. We are forecasting a double-digit electric rate increase in 2024 because WPL has under-collected 2022 fuel costs by over $100 million.
NSPW 2023 Fuel Cost Plan (4220-ER-102)
The PSC approved an ECAC surcharge of $21.1 million or $0.00694/kWh in 2023. It is an increase of 3% – 4.4% for large customers. In addition, there is also a step increase of 0.5% to 1.5% in base rates for large customers in 2023 that was baked in as part of the last rate case. The surcharge of $29 million or $0.00447/kWh runs will remain on monthly bills through August of 2023 for under-collected 2021 fuel costs. The PSC authorized 2023 fuel costs of $26.57/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
WIEG helped build a coalition to defeat this anti-competition, anti-consumer legislation in the 2021-2022 session. Although the bills failed to advance out of committee, we need to keep this coalition together as utilities are expected to reintroduce the bill in 2023. 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.
