Current Cases
Biomass Power Plant
Docket 6630-CE-305
On March 15, 2010, We Energies asked the PSC for permission to build a 50-megawatt cogeneration power plant that will run on biomass and produce steam as well as electricity. CUB will intervene to make sure the cost of the plant is reasonable.
Wisconsin Power & Light
Rate Case for 2011
Docket 6680-UR-118
In the spring of 2010, WPL will likely file a request with the Public Service Commission to raise electric and gas rates starting in January 2011. CUB intends to intervene in this case to argue for reasonable rates.
Wisconsin Public Service Corp
Rate Case for 2011
Docket 6690-UR-120
In the spring of 2010, WPS will likely file a request with the Public Service Commission to raise electric and gas rates starting in January 2011. CUB intends to intervene in this case to argue for reasonable rates.
Public Service Commission
Strategic Energy Assessment
Docket 05-ES-105
In the summer of 2010, the PSC will issue a draft of its latest assessment of Wisconsin's supply of electricity. CUB will submit comments on the draft, urging the PSC to re-establish a better energy planning process.
Public Service Commission
Retirement of Coal-fired Power Plants
Docket 05-EI-150
The PSC will investigate whether any coal-fired power plants operating in Wisconsin should be retired due to a surplus of power. CUB called for this investigation as part of our intervention in docket 05-UR-104, a rate case for establishing rates for We Energies for 2010. This investigation will likely take place during 2010. CUB intends to participate.
Wisconsin Power & Light
Economic Development Rate
Docket 6680-GF-126
On November 13, 2009, WPL filed a request with the PSC for approval of an economic development rate (EDR) for industrial customers, in which certain industrial customers would be able to pay lower prices for electricity.
CUB has long opposed EDRs because they violate core principles of utility regulation, namely (1) EDRs are inherently discriminatory, in which certain customers receive service at lower rates than other customers, and (2) EDRs allow a customer to pay a rate lower than what the customer should pay to cover the costs of receiving service. In addition, since EDRs lower the price of electricity, they encourage customers to use more electricity, exactly opposite of efforts to save energy.
CUB submitted comments to the PSC noting CUB's objections to EDRs on February 17, 2010. The PSC held an open meeting on February 19, and at least two of the three commissioners seemed to support the establishment of economic development rates. On March 16, CUB requested that the PSC hold a "contested case" hearing, which usually must be held anytime rates are changed (contested case hearings allow CUB and other parties to provide expert testimony, to cross-examine witnesses, and to file legal briefs on policies and legal issues). This case will likely conclude by June 2010.
Public Service Commission
Quadrennial Planning Process for Energy Efficiency
Docket 05-GF-191
On October 23, 2009, the PSC opened this investigation in order to establish goals and funding levels for Focus on Energy, Wisconsin's statewide energy efficiency program. CUB is participating in this docket to make sure appropriate goals and funding are established to support Focus on Energy and its energy efficiency programs. CUB submitted joint comments along with Clean Wisconsin and RENEW Wisconsin on November 23, 2009, providing answers to questions posed by the PSC regarding policy issues affecting energy efficiency. This case will likely conclude by the end of 2010.
Wisconsin Public Service Corp
Energy Efficiency Pilots
In December 2008, the PSC approved an agreement between CUB and Wisconsin Public Service Corp. (WPS) that allows WPS to use revenue-per-customer decoupling for residential and commercial electric and gas customers. Along with decoupling, WPS agreed to double its payments to Wisconsin's statewide energy efficiency program called Focus on Energy. The ratepayers of WPS will provide Focus with an additional $50 million between 2009 and 2012.
WPS also agreed to work with CUB and Focus on Energy to implement three community-based pilots to test enhanced energy efficiency programs and innovative rate options. The first pilot started in Brillion on October 1, 2009, and the other two pilots will start in 2010 and 2011. The pilots will conclude at the end of 2012. CUB will be involved in these pilots through 2012, and has a contract with Focus on Energy to cover staff time and expenses regarding these pilots.
Wisconsin Power & Light
Rate Case for 2010
Docket 6680-UR-117
On May 8, 2009, WPL filed a request to raise electric rates by $85.5 million or 9.2 percent and natural gas rates by $6.2 million or 2.6 percent starting in January 2010. On July 24, 2009, WPL updated its request to increase electric rates by $103 million or 11.0 percent and natural gas rates by $6.7 million or 2.8 percent.
CUB intervened in the case and reviewed the following issues: the utility's level of profit; cost-of-service studies, class revenue requirement allocations, and rate designs. CUB also argued that WPL should not be allowed to recover "pre-certification" and "pre-construction" costs associated with the proposed Nelson Dewey power plant, which was rejected by the PSC in November 2008.
The PSC issued its decision in this case on December 18, 2009. The PSC approved an increase in electric rates of $58.6 million (6.3 percent) and an increase in gas rates of $5.6 million (2.4 percent).
The PSC agreed with CUB and reduced WPL's rates by $18.4 million, including: a reduction of $2.6 million and $9.3 million for unreasonable pre-certification and pre-construction costs for the never-built Nelson Dewey power plant; and a reduction of $6.5 million by lowering WPL's return on equity (profits) from 10.6 percent to 10.4 percent.
The PSC also agreed with CUB to require WPL to use electric rates for residential customers with lower fixed charges and higher volumetric charges, which provide incentives to customers to save electricity. The PSC also agreed with CUB and did not increase the credit for industrial customers willing to interrupt their electricity service for emergencies.
Wisconsin Public Service Corp
Rate Case for 2009-2010
Docket 6690-UR-119
On May 1, 2009, WPS filed a "re-opener" of this rate case to establish rates for 2010. CUB will participate in this case to review how fuel and purchased power costs will be affected by power plant outages, especially the outage associated with the new Weston 4 power plant, which experienced chronic boiler tube clogging problems.
The PSC issued an interim decision on December 22, 2009, in which electricity rates were held the same, and gas rates were increased by $13.5 million or 3.1 percent, which took effect on January 1, 2010.
A final decision from the PSC will likely be issued later in 2010, and will deal with issues surrounding Weston 4.
Madison Gas & Electric Co
Rate Case for 2010
Docket 3270-UR-116
On April 29, 2009, MGE filed a request to raise electric rates by $15.9 million or 4.5 percent, and natural gas rates by $4.4 million or 2.3 percent. The rate increases would take effect in January 2010.
CUB intervened in this case and reviewed the utility's level of profit and the design of rates for residential customers.
The PSC issued its decision in this case on December 22, 2009. The PSC approved an increase in electric rates of $11.9 million (3.3 percent) and a decrease in gas rates of $1.5 million (0.74 percent). The PSC agreed with CUB and reduced MGE?s return on equity (profits) from 10.8 percent to 10.4 percent, a savings to customers of $2 million. In addition, the PSC also agreed with CUB and reduced rates by $78,000 for lobbying expenses that were incorrectly charged to ratepayers. The PSC also agreed with CUB to require MGE to use electric rates for residential customers with lower fixed charges and higher volumetric charges, which provide incentives to customers to save electricity.
Wisconsin Public Service Corp
Fuel Rules Proceeding
Docket 6690-FR-101 and 102
Opened by the PSC on April 24, 2009, these cases will examine fuel costs for 2008 and 2009, and whether customers should receive a refund for overcollections. The Great Recession has been accompanied by tremendous fuel price volatility, and sales of electricity and natural gas have declined considerably during the past year. In addition, the new Weston 4 coal plant experienced chronic boiler tube clogging problems, forcing WPS to buy electricity on the spot market.
The PSC issued an interim decision on December 22, 2009, in which electricity rates were held the same, and gas rates were increased by $13.5 million or 3.1 percent, which took effect on January 1, 2010.
A final decision from the PSC will likely be issued later in 2010, and will deal with issues surrounding Weston 4.
Wisconsin Power & Light
Retrofit of Columbia 1 & 2
Docket 05-CE-138
On April 2, 2009, WPL and co-owners Madison Gas & Electric and Wisconsin Public Service Corp. applied for permission to add pollution controls at a cost of at least $627 million to the Columbia power plant, located near Portage. Columbia consists of two, 500 megawatt coal-fired generators and was built in the early 1970s. CUB is intervening in this case along with Clean Wisconsin to make sure the retrofit costs are reasonable. This case will likely conclude by June 2010.
We Energies
Rate Case for 2010-2011
Docket 05-UR-104
On March 13, 2009, We Energies (WE) filed an application with the PSC to increase electric rates by 2.8 percent and natural gas rates by 4.6 percent, with the new rates taking effect on January 1, 2010. On July 3, 2009, We Energies modified its request to raise electric rates by a total of $127 million, or 4.9 percent.
CUB intervened in the case and reviewed We Energies' requests for recovery of costs related to burning excess coal, costs associated with the Midwest Independent Transmission System Operator (MISO), We Energies' off-balance sheet obligations, rate allocation and design, and whether We Energies had too many power plants on-line, which could unnecessarily cause electric rates to be higher than reasonable.
The PSC issued its decision regarding rate increases for We Energies on December 18, 2009. The PSC approved an increase in electric rates of $85.8 million (3.4 percent) and a decrease in gas rates of $2.1 million (0.35 percent).
The PSC agreed with CUB and reduced We Energies rates by $17.3 million, including: a reduction of $2.3 million for unnecessarily burning excess coal; a reduction of $3.8 million for extra costs associated with MISO; and a reduction of $11.2 million by lowering We Energies' return on equity (profits) from 10.75 percent to 10.4 percent.
The PSC also agreed with CUB and will open an investigation to address the fact that Wisconsin utilities have too many power plants on-line, a situation known as "excess capacity."
Transmission Planning
CUB is following various transmission planning studies:
Upper Midwest Transmission Development Initiative: A study commissioned by the states of Wisconsin, Iowa, Minnesota, North Dakota, and South Dakota, to determine the amount of transmission that would be needed to support 15,000 and 25,000 megawatts of wind power from these states. The study will also recommend how costs of new transmission should be allocated among the states, with expected completion by the end of 2010.
Midwest ISO, Regional Generation Outlet Studies Phase I and Phase II. Phase I is supporting the UMTDI study (see above), with expected completion by the end of 2009. Phase II includes the UMTDI states, plus Illinois, Michigan, and Ohio, with expected completion by December 2010.
SMART Transmission Study. A transmission study conducted by American Transmission Company and several large utilities in the Midwest, looking at transmission needs in 2019 and 2029. The study will be completed by April 2010.
Western Wisconsin Transmission Study. American Transmission Company and others are looking at reliability needs in southwestern Wisconsin and adjoining areas, with results expected by the 2nd quarter of 2010.
La Crosse to Madison 345 kilovolt Transmission Line. ATC is studying whether to build a large transmission line between La Crosse and Madison. Preliminary results are expected in mid 2010.
Eastern Interconnection Planning Collaborative (EIPC) and the Eastern Interconnection States Planning Council (EISPC). The federal American Reinvestment and Recovery Act (aka the stimulus bill) included $80 million for planning studies that span the Eastern Interconnection, in which all power plants and power lines east of the Rocky Mountains are interconnected electrically. The study will be conducted by the electric power industry’s regional planning entities, such as the Midwest ISO. The District of Columbia and most of the 39 states within the Eastern Interconnection will participate in this study through the Eastern Interconnection States Planning Council, an unprecedented effort by Eastern states to work together on a single issue. Phase I results from these studies are expected in mid-2011, and Phase II results in 2013.
Xcel Energy (aka Northern States Power-Wisconsin)
Gasifier at Bayfront Power Plant
Docket 4220-CE-169
On February 23, 2009, Xcel filed an application to add a biomass gasifier at its Bayfront facility near Ashland so that it can burn biogas instead of coal.
CUB intervened to make sure the cost of the project was reasonable. During the proceeding, CUB discovered a study written by a consultant hired by Xcel that concluded that the proposed project may not work at the size and scope envisioned. CUB brought these concerns to light in legal briefs submitted to the PSC.
The PSC issued an approval for the project on December 22, 2009. Although the PSC determined that the project was technically feasible, the PSC agreed with CUB to limit the cost-overrun collar to 10 percent, rather than 20 percent sought by Xcel.
In addition, the PSC agreed with CUB and did not provide Xcel with a guarantee of cost recovery should cost overruns exceed 20 percent and the PSC orders Xcel to cease construction. These actions will help protect ratepayers from paying millions of dollars for possible cost overruns, or for a project that may not work.
Wisconsin Power & Light
Retrofit of Edgewater 5
Docket 05-CE-137
On November 14, 2008, WPL and co-owner We Energies applied for permission from the Commission to add pollution controls to Edgewater Unit #5, a 430 megawatt coal-burner on Lake Michigan near Sheboygan. The pollution controls would cost a minimum of $153 million. CUB and Clean Wisconsin are working together in this case to make sure the cost of the retrofit is reasonable; for We Energies to sell its share of Unit #5 to WPL at a reasonable price in order to reduce excess capacity; and for Edgewater Unit #3 to be retired down. This case will likely conclude by June 2010.
We Energies
Glacier Hills Wind Farm
Docket 6630-CE-302
On June 18, 2008, We Energies submitted a request to the Commission for authorization to build a 200 megawatt wind farm at an expected cost of $450 million in Columbia County.
The PSC approved the project on January 22, 2010. The PSC agreed with CUB that going forward, We Energies will need to use a more thorough process for evaluating proposed wind projects developed by the company and competing proposals developed by others. The goal of this improved selection process is to make sure the best and lowest cost wind projects are selected for providing wind power to the customers of We Energies.
Public Service Commission
"Decoupling"
Docket 05-UI-114
On June 3, 2008, the PSC opened an investigation into whether ratepayers would benefit if utilities were able to "decouple" revenues from sales of electricity and gas. Decoupling is a controversial issue, because it can reduce risk for utilities regarding recovery of revenues from ratepayers, but this reduced risk may not be factored into reduced utility profit levels (less risk should result in lower profits). Proponents argue that decoupling could make utilities more willing partners in energy efficiency programs. CUB, along with Clean Wisconsin and RENEW Wisconsin, submitted comments on July 22, 2008. Activity in this docket may resume in 2010.
Public Service Commission
Energy Efficiency Goals
Docket 05-UI-115
On April 3, 2008, the PSC opened an investigation regarding the budget for the Focus on Energy program, and to establish goals for the amount of energy to be saved through the program. CUB, Clean Wisconsin and RENEW Wisconsin submitted joint comments on May 26, 2009 and June 15, 2009. Activity in this docket may resume in 2010.
Public Service Commission
Fuel Rules
Docket 1-AC-224
In February 2006, the commission requested comments from CUB, the utilities, and other stakeholders on whether the "fuel rules" need to be changed given the volatility in natural gas prices. The draft rules have serious problems: they would raise rates for consumers, require far more proceedings at the PSC (straining Commission staff and intervenor resources), and violate existing statutes prohibiting automatic adjustment clauses and retroactive ratemaking.
A budget amendment was drafted by the utilities that would have eliminated Wisconsin's prohibition of automatic adjustment clauses, which would affect the "fuel rules." CUB and the Wisconsin Industrial Energy Group stopped this amendment as it was being reviewed by the Committee on Joint Finance. CUB, WIEG, and others negotiated a compromise with the utilities that would allow the PSC to defer under or over-collections of fuel costs for recovery or refund in the following year, while preserving the prohibition of automatic adjustment clauses. However, this amendment did not survive the budget process, but has been re-introduced as AB 600, and may pass by the end of the 2009-2010 legislative session in May 2010.
Public Service Commission
Telephone Deregulation
Docket 05-TI-1777
The PSC has opened an investigation regarding whether and to what extent regulations for local telephone service should be changed. CUB submitted comments on March 25, 2008 asking that the PSC consider policies that would make broadband Internet service more available and more affordable. CUB also suggested that consumer protections for any type of telecommunication service should be strengthened. CUB attended a PSC technical conference on May 28, 2008. CUB's expert witness Mark Cooper met with PSC staff on September 25, 2008 to provide staff with CUB's viewpoint regarding universal service and broadband. The PSC has delayed issuing a draft report due to pending decisions by the Federal Communications Commission.
