MWFPA Supports Settlement Agreement in Docket No. 0S-UR-110

Strategic Insights -

The Midwest Food Products Association (MWFPA) has expressed support for a settlement agreement in Docket No. 0S-UR-110, filed by Wisconsin Electric Power Company (WEPCO) and Wisconsin Gas LLC (WG) on October 3, 2022. The agreement aims to resolve issues related to the shutdown of coal plants and the allocation of electric and natural gas revenue. MWFPA, a trade association representing the food processing industry in the Midwest, believes that the settlement agreement is beneficial to the industry and urges the Commission to approve it.

Key Takeaways:

  • MWFPA, a trade association founded in 1905, represents over 230 businesses in the food processing industry, with 65 facilities in the Midwest, including 45 in Wisconsin, generating an estimated direct economic impact of over $3 billion to Wisconsin's economy.
  • The food processing industry uses a large amount of energy for sanitation and food preparation, with some members having monthly bills exceeding $1 million for electricity and natural gas.
  • MWFPA supports the settlement agreement, which establishes a framework for dealing with coal plants shutdown, secures $100 million of the remaining balance on South Oak Creek units, and provides savings for customers now and mitigates the future rate impact of the Generation Reshaping Plan.
  • The settlement agreement includes several important tariff-related provisions, such as creating a renewable energy rider tariff, high load factor credit for Cp rate schedules, and maintaining current provisions of real time rate schedules.
  • MWFPA fully supports the proposed electric revenue allocation from Wisconsin Industrial Energy Group (WIEG) and natural gas allocation from WG.
  • The Commission should find that the statutory requirements under Wis. Stat. § 196.026 have been satisfied, and MWFPA urges the Commission to approve the settlement agreement as proposed.

Sources:

  • Letter from Jason, President of MWFPA, dated November 7, 2022, to Mr. Cru Stubley, Secretary to the Commission, Public Service Commission of Wisconsin.
  • October 3, 2022, Application for Approval of Settlement Agreement in Docket No. 0S-UR-110, filed by Wisconsin Electric Power Company (WEPCO) and Wisconsin Gas LLC (WG).