Regulatory

Strategic Energy Assessment 2006

The Strategic Energy Assessment (SEA) is a snapshot of today's energy and regulatory environment and forecasts what it may look like seven years from now. The SEA is used to provide information and help shape energy policy decisions. WIEG has been very involved in this process to give the perspective of energy consumers in Wisconsin. A final SEA has not yet been issued, but here is the draft SEA and the comments of the large industrial customer groups. For more details, click on the links listed below.

• Strategic Energy Assessment Final Report

• WIEG-WMC-WPC Comments on Draft Strategic Energy Assessment

Clean Coal Report

The PSC recently issued a draft report on the future of clean coal technology in Wisconsin. It specifically makes recommendations regarding Integrated Gasification Combined Cycle technology (IGCC). WIEG members were involved in the drafting of this report. Wisconsin Industrial Energy Group (WIEG), Wisconsin Manufacturers & Commerce (WMC) and the Wisconsin Paper Council (WPC) recently submitted comments in response to the Commission’s draft. The major industrial customer groups advise caution with the adoption of this technology as it is still unproven and very expensive.

• WIEG-WMC-WPC on draft IGCC report

• Integrated Gasification Combined Cycle Final Report

2005 Wisconsin Act 141: Energy Efficiency and Renewables Law

In March of 2006, Governor Doyle signed Senate Bill 459 into law. Act 141 is a sweeping update of energy and utility law in Wisconsin. Among other things, it increases the Renewable Portfolio Standard (RPS) to 10% by 2016 and overhauls the state's energy efficiency programs.

WIEG was successful in adding several provisions to protect consumers as amendments to the original bill. It is very important that the new law be implemented in a way that is the most cost-effective and holds the ratepayers harmless. Therefore, WIEG members will be very involved in the rulemaking process over the next year both at the PSC and the Legislature.

• PSCW draft rule

• WIEG-WMC-WPC comments on the proposed rules

Railroad/Captive Shippers

Captive shipper refers to a rail customer with no other option except to transport their product via a single railroad. These rail customers normally transport commodities -- such as grain, forest products, chemicals -- that cannot be shipped economically by truck or other means. WIEG believes that because captive shippers have few or no alternatives, they are paying unreasonably high rates and receiving poor service. Rail transportation problems are costing Wisconsin businesses and consumers big money. At least $70 million in additional electricity rates are attributable to the railroads. Further, demurrage charges plus unreliable service creates havoc with businesses dependent on the rail system and therefore creates a “double whammy” of direct and indirect costs for our businesses.

• Link to PSCW-DATCP Joint Hearings on Rail Service in Wisconsin

• WIEG-WMC testimony on railroad shipping costs and delays

Electric Cost of Service Study

As part of the ratemaking process, the PSCW must decide how a utility recovers the costs it incurs to serve its customers. One step in this process is the allocation of costs to customer classes through the use of the electric cost-of-service study. A second step is the design of electric rates to recover the costs that have been allocated to the customer classes. WIEG believes that there is strong evidence demonstrating that industrial customers have been unfairly subsidizing other customer classes, especially residential customers.

• WIEG testimony on Cost of Service

ATC Access Initiative (137-EI-100)

Growing demand for electricity in our state and limits on the ability to import power due to transmission system congestion raise concerns about the ability of Wisconsin customers to obtain the lowest cost power available in the wholesale power market. WIEG is taking part in a review by the Public Service Commission of what’s called the Access Initiative developed by American Transmission Company (ATC). The docket will attempt to answer the question of whether adding high voltage transmission lines in our state help limit increases in electric rates. WIEG has filed comments together with Wisconsin Manufacturers & Commerce (WMC) and the Wisconsin Paper Council (WPC) in the proceeding.
 
• Click here to view the joint comments of WIEG-WMC-WPC