PSC: Three Wisconsin Utilities Must Refund Millions to Ratepayers
Three Wisconsin utilities – Madison Gas & Electric, WE Energies, and Xcel Energy – have been ordered by the state’s Public Service Commission to refund millions of dollars to their ratepayers in restitution for overestimating costs last year.
The utilities must estimate the cost of providing electricity to customers for permission to raise annual utility rates, Xcel Energy Spokesperson Chris Oulette told Wisconsin Public Radio in a recent interview. Last year, Xcel’s costs were $9.5 million lower than predicted and the state Public Service Commission ordered the money be paid back to customers.
WE Energies and Madison Gas & Electric face similar situations, the news outlet said. They each expect to refund around $16 million to their customers.
The overpayments occurred largely because the cost of natural gas fell during 2015, making it significantly less expensive than the utilities had anticipated. Indeed, Xcel notified the commission during 1Q2016 that, according to its records, Wisconsin ratepayers had overpaid by 7 percent per kilowatt-hour, the variance between electric rates approved in advance and actual fuel costs.
At first, Xcel balked at the repayments.”We agreed with the amount for the over-collection, but we had reached an agreement with several customer stakeholder groups to use the refund amount to offset our proposed 2017 electric rate increase,” Oulette said.
However, the PSC declined and ordered refunds be made as soon as possible.
- 2015 Insider Knowledge
- The Corporate Sustainability Professional's Guide to Better Data Management
- Improve Occupant Comfort & Reduce Energy Costs Through Humidity Control
- 2016 Energy and Sustainability Predictions Findings from Facilities Professionals
- How the IoT is Reshaping Building Automation
- Four Key Questions to Ask Before Your Next Energy Purchase
- eBook: Five Key Considerations for Integrating Renewables into Your Procurement Strategy
- There’s Money in the Trash
- Smart Companies Utilize Integrated Energy Solutions
- Building Energy Benchmarking & Transparency Laws