By Brian E. Clark
WisBusiness.com
Wisconsin Public Service Corp. will take its request for a 3.6 electric rateincrease to state regulators Tuesday. A series of public hearings will be held at 3 p.m. and 7 p.m. in Madison, Green Bay and Wausau.
In December 2006, the company – which serves central and northeastern Wisconsin, plus a small portion of Michigan’s Upper Peninsula – was granted an electric rate hike of about 6.6 percent.
WPSC joins several other utilities that have already sought rate hikes torecover costs for anticipated increases in fuel prices. They include Wisconsin Power and Light, We Energies, WI Gas and Northern States Power.
The greatest increase is being sought by We Energies, which is asking for electric rate hikes of about 7.5 percent for 2008 and 7.5 percent for 2009.
The company says the money is needed to help pay for its investments in the Blue Sky Green Field wind project in eastern Wisconsin, significant air quality control equipment at the company’s existing power plants, new electric generating units at Port Washington and Oak Creek, and construction of transmission upgrades and additions by the American Transmission Co.
Earlier this month, the state’s Public Service Commission granted MadisonGas & Electric preliminary approval for natural gas and electricity ratehikes, but for significantly less than the utility requested. The new prices are expected to go into effect in 2008.
The PSC said the overall increases, of 4.8 percent for electricity and 2.8percent for natural gas will help cover costs outlined in Wisconsin Act 141, which was enacted in 2005 and mandates increased energy efficiency and greater use of renewables in Wisconsin.
MG&E had requested increases of 9.9 percent for electricity and 3.7 percent for natural gas. The rate hikes means a $3 hike in monthly electric ratesand a $4.40 increase in the natural gas bill for the average residential customers.
Charlie Higley, executive director of the Wisconsin Citizens Utility Board, praised the PSC for reducing MG&E’s request and said the increase being sought by WPSC seems reasonable. For more details on the WPSC hearings, seehttp://www.wisbusiness.com/index.iml?Article=111311
