FOR FURTHER INFORMATION CONTACT:
James Buchen, (608) 258-3400
Todd Stuart, (608) 441-5740
Ed Wilusz, (920) 574-3752
Nick George, (608) 255-9946
PSC Proposal Hits Businesses and Families at Worst Possible Time
Business groups are asking members of the Legislature’s Joint Committee on Finance to reject a proposal to increase taxes on monthly energy bills by $340 million over a four year period.
“Our electric rates are already higher than almost every state in the Midwest, and that places Wisconsin businesses at a competitive disadvantage,” said James A. Buchen, vice president of government relations for Wisconsin Manufacturers & Commerce, the state’s largest business association. “The massive energy tax hike proposed by the PSC will increase the cost of doing business here, making it even harder to attract and retain family-supporting jobs.”
The Public Service Commission (PSC) has proposed what amounts to a $340 million increase in the amount assessed against consumers on monthly heating and electricity bills. Utilities currently collect about $94 million from ratepayers, but that amount would increase to $256 million by 2014. The revenue would be earmarked for energy efficiency and conservation spending programs.
“Wisconsin ’s average electric rates have increased by more than 60 percent in the last ten years,” said Todd Stuart, Executive Director of the Wisconsin Industrial Energy Group. “We had some of the lowest electric rates in the country but now we have among the highest rates in the Midwest. Now is not the time to dramatically increase an energy tax on families and businesses that are struggling to emerge from a deep recession.”
The PSC’s proposal, which will be reviewed by the Finance Committee at meeting on December 14, comes on the heels of an announced closure of a paper mill last week. Wisconsin has lost more than 160,000 manufacturing jobs since the year 2000, including 60,000 jobs lost since 2008 alone.
“Energy conservation and efficiency is a great idea, which is why so many businesses, like paper companies, already do it,” said Ed Wilusz , Vice President of Government Relations for the Wisconsin Paper Council. “But the existing state program appears to be working well. We doubt that the massive spending increase called for in this proposal is necessary or would be effective.”
If members of the Finance Committee reject the PSC proposal, the $340 million energy tax hike could not be implemented. If the proposal is approved, the energy tax will increase to $120 million in 2011, $160 million in 2012, $204 million in 2013, and $256 million in 2014. The net increase over the four year period is more than $340 million based upon 2010 collections.
“We hope members of the Finance Committee will reject this proposal, and spare our economy from an unnecessary tax hike,” said Nick George, Executive Director of the Midwest Food Processors Association. “Instead of raising energy costs, lawmakers should look for ways to make electricity less expensive in Wisconsin .”
Groups calling for the rejection of the proposed energy tax increase include the Midwest Food Processors Association, National Federation of Independent Businesses-Wisconsin Chapter, Wisconsin Industrial Energy Group, Wisconsin Manufacturers & Commerce and the Wisconsin Paper Council.
Related Material: Memo: Oppose PSC Request to Increase Energy Tax (http://www.wmc.org/PDFfiles/PSC-Request-13-10%20Energy-Tax-Tripling-Final.pdf)
