Regulatory
Demand Destruction
In 2009, Wisconsin’s utilities have asked for more than $300 million in new rate increases. Over half of the $300 million is to compensate the utilities for declining electricity sales – lost jobs, wages and manufacturing production. WIEG will be filing testimony to fight the precedent of utilities collecting higher rates for demand destruction, as well as working to reduce the rate impact on large manufacturers. Click here to find out what you can do to fight the rate hikes and protect your company's bottom line.
Strategic Energy Assessment 2008
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 Draft Report
• Comments by Industrial Coalition 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
