Wisconsin Public Service Commission Approves Settlement Agreement for We Energies

Strategic Insights -

The Wisconsin Public Service Commission (PSC) has approved a settlement agreement between We Energies and various parties, including Citizens Utility Board (CUB), Wisconsin Industrial Energy Group (WIEG), and RENEW Wisconsin. The agreement addresses rate design issues for We Energies' electric and natural gas services in Wisconsin. The settlement terms will remain in effect for the year 2024, subject to certain limitations and disputes that will be litigated and decided by the Commission. The Settling Parties agree to work collaboratively on certain rate design issues, as set forth in Exhibit A.

Key Takeaways:

  • The settlement agreement was reached on September 29, 2022, and approved by the PSC.
  • We Energies and various parties, including CUB, WIEG, and RENEW Wisconsin, reached a comprehensive settlement on rate design issues for electric and natural gas services.
  • The settlement terms will remain in effect for the year 2024, subject to certain limitations and disputes that will be litigated and decided by the Commission.
  • The Settling Parties agree to work collaboratively on certain rate design issues, as set forth in Exhibit A.
  • The settlement agreement does not settle the disputes over WEPCO's and WG's authorized returns on equity or electric and gas revenue allocation.
  • The Settling Parties agree to support the application for approval of the settlement agreement and will work together to advocate for its adoption.
  • The settlement agreement has no precedential effect on any Settling Parties in later Commission proceedings.

Statistics:

  • The settlement agreement was approved by the PSC on September 29, 2022.
  • We Energies serves over 1.1 million electric customers and 690,000 natural gas customers in Wisconsin (Source: We Energies).
  • The settlement agreement affects We Energies' approximately $5.3 billion in annual revenue (Source: We Energies).
  • The Commission will continue to litigate and decide the disputes over WEPCO's and WG's authorized returns on equity and electric and gas revenue allocation.

Sources:

  • Wisconsin Public Service Commission (PSC). (2022). SETTLEMENT AGREEMENT.
  • We Energies. (2022). Annual Report.
  • Citizens Utility Board (CUB). (2022). Rate Design Proposal for We Energies.
  • RENEW Wisconsin. (2022). Rate Design Recommendations for We Energies.
  • Wisconsin Industrial Energy Group (WIEG). (2022). Rate Design Proposal for We Energies.