Typical residential customers of the Wisconsin Public Service Corp. would pay $7.62 more monthly for electricity and $1.54 more for natural gas next year, according to a rate request filed April 17 with the Wisconsin Public Service Commission.
The rate request comes four months after WPS increased average monthly residential electric rates by $2.13 and decreased gas rates by $5.50, as authorized in a rate order the PSC issued in December.
The same order also increased the monthly fixed charge residents pay for electricity from $10.40 to $19 and for gas from $10.25 to $17.
Now, the Green Bay-based utility cites inflation, $26 million in emission controls for the Weston 3 power plant, $12 million in increased transmission costs, and undergrounding some overhead distribution lines among factors in seeking the 9.4 percent increase in electric rates.
“Normally, we file rate cases every other year, but when we have large construction costs we file every year,” said Patrick Campshure, a WPS rate analyst.
The 7.5 percent requested increase in gas rates is due to increased operating and maintenance costs, WPS said.
The pending rate case is based on a 10.2 percent rate of return on the utility’s infrastructure investment, the same return the PSC granted in December, Campshure said.
WPS did not have a substantial electric or gas rate increase prior to 2009, as lower natural gas prices reduced pressure on the utility for more revenue.
Despite the rate increase request for 2016, WPS’ overall electric rates will have risen at about the same rate as inflation since 2008, Campshure said.
WPS expects to receive less revenue than it has requested, Campshure said, as revenue and expense data changes during the course of the rate case.
The Citizens Utility Board has asked the PSC to intervene in the case; other groups representing energy users also are typically allowed to intervene in the case.
WPS serves 441,000 electric customers and 319,000 natural gas customers in northeastern Wisconsin and Michigan’s Upper Peninsula, including Lena, Little Suamico, Oconto and northern Oconto County.
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