By Brian E. Clark
WisBusiness.com
MADISON – The Wisconsin Public Service Commission (PSC) on Thursday gave verbal approval to 3.4 percent electricity rate increases for We Energies in 2008 and 2009, less than half of what the utility requested. The new rate will mean around a $3.75 a month increase for a typical customer.
In addition, the PSC approved a 2.1 percent increase for Wisconsin Gas Company natural gas customers and a 0.7 percent increase for Wisconsin Electric Gas Company customers. This would increase the average residential monthly natural gas bill by about $1.87 for Wisconsin Gas Company and $0.34 for Wisconsin Electric Company. The Commission also approved a 10.75 percent return on equity for We Energies.
We Energies declined to comment, but consumer and industrial user groups praised the ruling, which returns a greater amount to ratepayers from the $880 million sale of the Point Beach Nuclear Power Plant to FPL Energy Point Beach, LLC.
The panel decided that proceeds from the sale should be given back to ratepayers over three years beginning in 2008.
The Citizens Utility Board praised the PSC for returning $70 million more to customers than We Energies wanted.
“Although customers of We Energies will see higher electric rates in 2008, the PSC made good decisions today that will substantially reduce the size of the increase,” said Charlie Higley, CUB executive director.
Scott Stuart, executive director of the Wisconsin Industrial Energy Group, said the rate increases would have been much larger if the PSC had not returned proceeds from the Point Beach sale to customers. His group had argued for no rate hikes.
PSC Chairman Dan Ebert said the rate adjustment strikes “a balance between helping the utility meet energy efficiency and renewable energy requirements while mitigating the rate impacts on customers. I believe the results of this decision will help the state of Wisconsin meet growing energy demands while keeping our focus on environmental and consumer concerns.”
Commissioner Mark Meyer said the case “included an epic number of issues, all of them extremely important to utilities and ratepayers alike. I think the decisions made here today will ultimately keep Wisconsin on the right track to providing environmentally conscious and reliable energy.”
And Lauren Azar, the newest member of the PSC, praised We Energies for its “commitments to a robust electrical system, renewable energy and pollution control.
“These are not only laudable goals, but critical to our state’s future. With rising energy costs, all parties must make sacrifices including the utilities, ratepayers and shareholders. Our decision minimizes those sacrifices while continuing to support the initiatives that invest in tomorrow.”
