MILWAUKEE – We Energies filed a comprehensive plan with the Public
Service Commission of Wisconsin (PSCW) today that will provide for:
* Continued investment in Power the Future projects that have
already been approved by the PSCW.
* Recovery of American Transmission Co. charges that exceed the
amount We Energies is currently collecting from customers.
* Additional sources of renewable energy.
* A rate freeze for normal operations until 2008.
The net effect of the proposed plan would be an increase of $143.6
million in annual electric revenues.
In addition, We Energies is requesting an increase of $4 million for its
Downtown Milwaukee steam utility and $4.8 million for its Wauwatosa
steam utility over the two-year period of 2006 and 2007.
This action represents another step in the regulatory process of
filings, hearings and testimony that will culminate with a PSCW
decision. There will be numerous opportunities for public comment prior
to a PSCW order.
Since the merger of Wisconsin Electric and Wisconsin Gas in 2000, the
company has continued to invest in customer service and reliability
improvements but has not made regular requests for price increases. Some
exceptions have been granted by the PSCW for costs such as fuel,
government mandates and necessary reliability-related improvements.
The company is not seeking price increases for the day-to-day operations
of its electric system, including employee and health care costs. To a
large degree, We Energies has been able to absorb these cost increases
through synergy savings resulting from the merger.
“Although our basic operating costs have grown significantly in the past
five years, we have not passed them along to our customers and are
proposing to continue holding that line for another two years,” said
Roman Draba, vice president of Regulatory Affairs and Policy. “Rather
than passing cost increases to our customers, we will continue to manage
our business through cost-saving measures and efficient operations.”
We Energies serves approximately 250,000 more customers than it did in
1985 when the company commissioned its last baseload power plant. To
accommodate that growth, the company now purchases 15 to 20 percent of
its electricity from other utilities.
Overall, customers are using almost 2,800 megawatts more in power plant
capacity today than they did in 1985 – the end of We Energies’ last
building cycle.
In that time, We Energies price per kilowatt-hour has increased at less
than half the rate of inflation and far less than many other goods and
services.
“We must continue to invest in an electric infrastructure that willsupport and sustain the economic growth that Wisconsin is experiencing,”
Draba added.
If the request is granted a typical residential electric customer using
750 kilowatt-hours per month would see an increase of approximately
$4.96 (6.7 percent) per month in 2006.
We Energies has two separate steam service utilities.
The Downtown Milwaukee steam utility serves approximately 370 customers.
The reasons for the request are the cost of maintaining the steam system
and the cost of replacing and relocating steam facilities as part of the
Marquette Interchange project. We Energies is requesting a 11.3 percent
price increase for this area in 2006 and a 11.1 percent increase in
2007. We Energies has not filed a full rate case for these customers in
more than five years.
The Wauwatosa steam utility serves approximately 25 large customers who
have not seen a price increase in nearly 10 years – since 1996. The
rising cost of fuel is a major factor driving this request. We Energies
is seeking an increase of 30.1 percent in 2006 and 23.1 percent in 2007.
Steam is used primarily for heating, hot water and air humidification
but has many other applications. We Energies cogeneration plants use the
boilers to produce steam and the turbine generators to reduce the
pressure and push the steam through transmission piping to customers.
The company expects to receive a decision from the PSCW in late 2005.
New rates would take effect according to the PSCW order. We Energies
will continue to promote energy efficiency and payment options, such as
budget billing, that help customers adjust to higher energy costs.
We Energies serves more than 1.1 million electric customers in Wisconsin
and Michigan’s Upper Peninsula and more than one million natural gas
customers in Wisconsin. Its energy prices are more than 10 percent below
the average for major U.S. cities. We Energies is the trade name of
Wisconsin Electric Power Company and Wisconsin Gas LLC, the principal
utility subsidiaries of Wisconsin Energy Corporation (NYSE: WEC). Visit
the We Energies Web site at www.we-energies.com. Learn more about
Wisconsin Energy Corporation by visiting www.WisconsinEnergy.com.
