Cut In Demand - Utilities Ask For Rate Increases

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Wisconsin Power and Light (WPL), much like the Janesville Water Utility, announced they will “likely’ file an emergency rate increase because of lost sales volume.

JG Excerpt: (Jan.22, 2009}
The chief executive of WPL's parent, Alliant Energy, projected WPL's sales will drop 6.4 percent this year, or $30 million. Because of that, Alliant CEO Bill Harvey says they "will likely file an emergency rate case" to the Public Service Commission.

The status of this request reached the "emergency" stage when the CEO did the math on a sales drop of 6.4% after the board of directors increased their annual common stock dividend by 7.1%.

MSN Excerpt: (Dec.18,2008)
The Alliant Energy board of directors has approved an increase in its 2009 expected annual common stock dividend to $1.50 per share from the current annual dividend of $1.40 per share.

Near the same time, the PSC released this statement.

PSC Excerpt: (Dec.18,2008)
MADISON – Today, the PSC ordered that there will be no increase in electric rates and a slight decrease in gas rates for Wisconsin Public Service Corporation (WPSC) and Wisconsin Power and Light (WP&L) customers in 2009.

“Declining fuel costs have played a major role in allowing us to successfully hold the line on electric and gas rates for many Wisconsin ratepayers,” said PSC Chairperson Eric Callisto. “With Wisconsin in the clutch of tough economic times, lower fuel costs have been a silver lining, and I am pleased at how PSC staff, the utilities and ratepayer groups have come together to look at ways to turn this into relief for Wisconsin ratepayers.”

Alliant CEO Bill Harvey said that rate settlement was based on 2007 figures. Could their dividend increase also be based on old figures?

I urge Wisconsin utility customers to contact the PSC and tell them to keep their word on no increases for 2009, and with further declines in commodities, demand the lower costs be accurately reflected on our utility bills.

Just before Christmas, the Janesville Water Utility also requested a rate increase for the same reason - low sales volume expected from the closing of the GM plant.

JG Water Rate Increase: (Dec.20,2008)
To account for the reduced revenue, the city has approved a wastewater rate increase and is anticipating a water rate increase for next year. Rate increases also are planned for 2010.

The Janesville water rate increase and WPL's increase are two sides of the same coin and both must acquire PSC approval before becoming law.

Send all complaints against rate increases by water, heating gas and electric utilities to the PSC.

Janesville residents, in addition to sending complaints to the PSC, can send complaints regarding the proposed water and sewer rate increases to the Janesville city manager and all council members here.

Note: WPL is a subsidary of Alliant Energy. For all practical matters - they are one and the same.