Regulatory Update: Wisconsin Power and Light Company Settlement Agreement

Strategic Insights -

A settlement agreement has been reached between Wisconsin Power and Light Company (WPL), Blacks for Political and Social Action of Dane County, Inc., Clean Wisconsin, Citizens Utility Board of Wisconsin, Inc., International Brotherhood of Electrical Workers Local 965, RENEW Wisconsin, Inc., Walmart Inc., and the Wisconsin Industrial Energy Group regarding WPL's application for authority to adjust retail electric and natural gas rates for the 2026 and 2027 test years. The agreement aims to establish the Company's rates for two test years, establish a reasonable overall revenue requirement, and align system benefits with costs.

Key Takeaways:

  • The settlement agreement aims to establish WPL's base revenue requirements, revenue allocation, and rate design for the 2026 and 2027 test years.
  • The agreement represents the parties' negotiated settlement of issues outstanding in the proceeding and is incorporated into the Agreement.
  • WPL will file an application with the Commission in the proceeding attaching the agreement as an exhibit and seeking an order from the Commission consistent with the agreement.
  • The parties will support the settlement application as reasonably requested by WPL, including filing supportive testimony, briefing, or correspondence for, or otherwise advocating in favor of, the terms of this agreement.
  • The agreement has no precedential effect on the parties in later Commission proceedings or bind the Commission's future decisions in any way, except insofar as necessary to effectuate or enforce the terms of the agreement.
  • The agreement is not severable, and each provision of the agreement is dependent upon all other provisions of the agreement.
  • WPL will implement any rates approved by the Commission while the final decision is subject to a request for reconsideration, rehearing, or reopening or is subject to judicial review.

Statistics:

  • The settlement agreement establishes the Company's rates for two test years (2026 and 2027).
  • The approved rates reflect a cumulative increase of approximately $202 million (13.9 percent) for the 2026 and 2027 test years.
  • The agreement establishes a reasonable overall revenue requirement for WPL during the test years.
  • The parties acknowledge that fully litigating the proceeding would require each party to invest a substantial amount of time, effort, and expense in pursuit of their respective interests in the proceeding.
  • The agreement has resulted from arms' length negotiations between and among the parties.

Sources:

  • SETTLEMENT AGREEMENT, Public Service Commission of Wisconsin, September 3, 2025.
  • Wisconsin Statute, Section 196.01(5)(a), 2025.
  • Wisconsin Admin Code SS PSC 2.21, 2025.