Public Service Commission of Wisconsin Issues Regulatory Update on Simplified Rate Case Outreach for Water Utilities

Strategic Insights -

The Public Service Commission of Wisconsin has issued a regulatory update to help ensure that water utilities in the state provide safe, reliable, environmentally responsible, and affordable water service. As part of this effort, Commission staff has reviewed the rate case history of water utilities and identified those eligible for a simplified rate case (SRC). This update notifies Kimberly Municipal Water Utility that it is eligible for an SRC, which allows for a streamlined process to adjust water rates and maintain revenue continuity.

Key Takeaways:

  • The Public Service Commission of Wisconsin establishes customer rates and tariffs and monitors the financial integrity of water utilities to ensure safe, reliable, and environmentally responsible service.
  • Commission staff reviewed the rate case history of water utilities using data from the water tariff database and PSC Annual Reports to identify utilities eligible for a simplified rate case (SRC).
  • Kimberly Municipal Water Utility is notified that it is eligible for an SRC, which is a simple and convenient way to adjust rates for inflationary increases.
  • An SRC helps sustain a utility's financial health and avoids significant rate hikes for customers.
  • Eligibility for an SRC is based on historical and current financial criteria, including rate case frequency and the Commission's current benchmark rate of return.
  • The SRC process includes an application and a notice to customers but does not require a public hearing.
  • Commission staff typically processes an SRC application within 30 days after it is submitted.
  • The rates can be made effective 45 or more days after the application is submitted.
  • The current rate increase factor for an SRC is 3 percent.

Statistics:

  • 3 percent: the current rate increase factor for an SRC.
  • 30 days: the typical time frame for Commission staff to process an SRC application.
  • 45 or more days: the time period after which the rates can be made effective.
  • [Source 1] Persistent Water Rate Inflation Costs Wisconsin Utility Customers Millions / PSC of Wis, 2020
  • [Source 2] Wisconsin Water Utility Review / PSC Annual Report, 2020

Sources:

  • [Source 1] Persistent Water Rate Inflation Costs Wisconsin Utility Customers Millions / PSC of Wis, 2020
  • [Source 2] Wisconsin Water Utility Review / PSC Annual Report, 2020
  • PSC of Wisconsin: Simplified Rate Case - Water Utility; Utilities; PSC of Wisconsin