Is your utility considering filing a water rate case with the Public Service Commission of Wisconsin (PSC)? Before a public utility can change water rates and begin billing those rates, the utility must receive approval from the PSC.
For water rate cases, utilities have the option to file either a Conventional Rate Case (CRC) or a Simplified Rate Case (SRC). A CRC is recommended if your utility is making more substantial changes to rates.
STEPS TO THE CONVENTIONAL RATE CASE PROCESS FOR MUNICIPAL WATER UTILITIES
The utility requests a conventional rate case application form at Application to Increase Water Rates via the PSC.
PSC Commission staff emails your utility an excel application file, preloaded with historical data from your PSC Annual Report.
Your utility completes the application and submits the excel file to the PSC using the Electronic Regulatory Filing (ERF) System via the PSC website.
PSC Commission staff receive the application and will assign a docket number that is unique to your rate case.
Your utility will want to subscribe to the assigned docket via ERF. PSC Commission will provide notification of official correspondence through ERF email notifications. In order to receive notifications, your utility must subscribe to the docket or utility ID. To subscribe to the docket, go to ERF, and complete the EZ Subscription. For help in subscribing, go the ERF User manual (Page 17.).
It is encouraged that your utility solicits input from customers and your leaders early in the rate case process, including before submitting the application to the PSC. At a minimum, your utility should begin some of this outreach before the PSC hearing for your rate case.
STEPS TO PROCESSING AND YOUR MUNICIPAL WATER RATE CASES
Most conventional water rate cases are undisputed and decided by the Administrator of the Division of Water Regulation. The below describes those water rate cases that are undisputed and delegated to the Division Administration for decision.
Application Screening. PSC staff screen the application to determine if the application is sufficiently complete. If so, the PSC will send a status email to your utility with information on PSC staff assignments and process. If your application is determined incomplete, PSC Commission will send an incomplete application letter to the Utility identifying additional information that is needed before the application can be accepted.
The PSC issues a Notice of Proceeding. The PSC notifies the existing parties, media, and local officials of the proceeding.
Data Request. The PSC issues an initial data request on ERF which highlights the areas that need further explanation. Your utility gathers the necessary information to respond to the data request and file complete responses on ERF under the assigned docket ID assigned to this case.
Revenue Requirement Exhibit. PSC submits a revenue requirement proposal as an exhibit and files it on ERF. Your utility has 5 days to respond if you agree or dispute the PSC staff proposal. If there is no response within those 5 days, the PSC assumes the proposed revenue requirement was accepted by your utility as proposed.
COSS / Rate Design Exhibit. PSC submits a cost-of-service study / rate design exhibit and files it on ERF. Your utility typically has 5 days to review and respond if you agree or dispute the PSC staff’s proposal. If your utility disagrees with either of the two exhibits, your utility must file a response within 5 days detailing the reason for the disagreement. Such cases may go to the full PSC Commission.
Public Hearing. The Utility must provide notification as required by § 2.10 Wis. Admin. Code. The PSC issues a Notice of Hearing. The hearing typically takes place telephonically during normal business hours. The more complicated cases may require a pre-hearing and may be held in Madison or sometimes at the utility.
Final Decision. The PSC reviews all the information in the case and determines if the proposed rate adjustment is appropriate and documents this in the Final Decision.
Implementation of Rates. The Utility files the effective date of implementing new rates on ERF. PSC prepares and emails new rate sheets for the utility records. The effective date of the rate order is the date the utility begins applying the new rates and is recommended to choose an effective date the Utility begins to read meters.
If you find the process daunting, don’t worry, we can help. Please contact us to find out how we can help you navigate this process.
R/M Can Help!
R/M can assist you with filing a water rate case with the Public Service Commission of Wisconsin!
about the author
bridgot a. gysbers
economic consultant
Bridgot 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.
