If your utility is planning capital projects or seeing an increase in operation and maintenance expenses, you may need to file a rate case with the Wisconsin Public Service Commission (PSC). This process can be slow and labor intensive, which is why we’ve come up with a list of best practices to keep things running smoothly and help you avoid common missteps that lead to long rate case delays.
ABOUT THE ELECTRIC RATE CASE APPLICATION
In your application, you’ll need to provide the PSC with detailed information about the rate increase request. The PSC will establish a comment period and hold a hearing to gather information, ideas, and opinions regarding issues raised in your utility’s request. It is not uncommon for electric utilities to encounter disputed rate proceedings. In the event your rate case becomes disputed, all parties are required to file pre-filed testimony and exhibits and participate in a hearing. The case will then appear on the PSC calendar for Final Decision.
BEST PRACTICES
Communicate with Stakeholders Early and Often
Maintaining an open line of communication with your board is essential if you want to avoid delays. By educating your board on the rate case process and keeping them informed early and often, you’re less likely to hear board objections.
Similarly, open communication and ongoing education on the rate process can help the members of your community better understand when and why their electric utility rates change.
Get Organized
You can drastically lower the amount of time and work that goes into the rate case process by keeping accurate records throughout the year. Being well organized will help your utility respond quickly to PSC data requests, customers questions, and inquiries from the Utility Commission.
Timing is Everything
For straightforward cases, it takes an average of 8 months to a year to implement new rates after filing. As soon as you think your utility will need an increase, you should begin the rate case process. If your utility has several large capital improvement projects planned for the foreseeable future, you may consider filing for rate increases on a regular basis.
Review Construction Approvals Prior to Filing
Make sure you’ve received construction approval for all necessary projects prior to filing. Failing to obtain approvals can considerably slow the rate case process.
Double (or Triple) Check for Application Completion
There are common application errors that will hold up your rate case, and these issues are now reviewed during the initial application screening process. Double check your final application for accuracy and completion to avoid long delays.
Respond to PSC Questions and Data Requests ASAP
Responding to PSC data requests with timely, detailed-oriented answers will aid in the expediency of the rate case. Many delays occur during this phase. Keep the line of communication open in order to keep your case moving forward.
Submit your Own Cost-of-Service Study and Rate Design
Submitting your own Cost of Service Study and Rate Design provides more input into your overall rates and more control over the outcome. In addition, the PSC may use your Cost-of-Service Study and Rate Design as a starting point rather than starting from scratch.
Learn More
If you have questions or would like assistance filing a rate increase application, please contact an R/M expert today.
About the Authors
Bridgot A. Gysbers
Economic Consultant
Bridgot recently joined the R/M team as a Financial Consultant. She has a diverse background in utility regulation, including 16 years of experience in municipal and investor-owned utility regulation in energy, gas, water, and sewer utilities. Bridgot developed the revenue requirement for a majority of the water rate cases regulated in Wisconsin and served as the lead auditor for several of the most complex investor-owned cases involving electric, gas, and water utilities. At R/M, Bridgot works to find financial and management solutions for public utilities.
Edward F. Maxwell
Economic Consultant
Edward joined Ruekert & Mielke, Inc. (R/M) in 2017 as a financial analyst. Before joining R/M, he worked in private-sector finance, analyzing capital investments, forecasting expenses and revenue, and crafting department budgets. At R/M, he creates financial solutions for all clients, from municipalities to corporate businesses.
