WIEG and CUB applaud PSC vote to refinance $100 million from retired power plantPosted November 8, 2020
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).