why is wpl filing a rate case? last base case rates were set january, 2007 cost of our utility...
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Why is WPL filing a rate case?
Last Base Case Rates were set January, 2007
Cost of our utility investments must be reflected in prices our customers pay
Rate case process is the only way to recover costs to provide safe, reliable, affordable, and environmentally sound utility service to our customers and communities
Energy demand is growing at 2-3 percent per year and we must invest in new facilities to meet that demand
Need to pursue a greener energy future by increased investment in renewable energy
Supports the expansion of customer energy conservation programs and renewable energy projects
Initial Request to PSCW was to increase retail electric rates by $93 million
Since Initial Request, collecting increased fuel costs $15.6 million
Overall requested change in rates is $77 Commercial & industrial average < 6%
In addition, we are asking for permission to decrease retail natural gas service rates by $814,000 or 1.0 percent
WPL is also proposing the ability to reopen the rate case for the purpose of incorporating costs associated with major infrastructure projects which receive PSCW approval before the end of 2009
How much additional was requested?
For retail electric rates, WPL proposes that rates be set for 2009 based on 2009 revenue requirements, with limited adjustments for 2010 permitted through a limited rate case reopener process
For natural gas rates, WPL proposes that rates be set for 2009 and 2010 using averaged rates over a two-year period, incorporating revenue requirements for both years.
How are rates determined for 2009 and 2010?
Environmental Compliance and Stewardship
Clean Air Interstate Rule CAIR
Clean Air Mercury Rule CAMR
Clean Air Visibility Rule
Renewable Generation – Cedar Ridge Wind Farm
Energy Efficiency and Conservation
New Generation – Nelson Dewey, Neenah Generating Facility
Advanced Metering Infrastructure
Transmission
What are the primary cost drivers?
Continuing WPL’s $40 million Shared Savings program that helps business/ag customers with their energy efficiency and energy conservation
Proposing an initiative that would help to financially support the installation of new customer-owned renewable generation
Proposing to increase our buyback rates for solar, biogas and wind energy
What initiatives are there for Industrial Customers?
Filed the Base Rate Case on February 22, 2008
The approval process is expected to take about 9 months
All rate changes must be approved by the PSCW after a thorough review of the data and extensive public input
WPL is requesting that new gas & electric rates be effective on or about January 1, 2009 with a change in 2010 for impacts approved via a limited re-opener
What is the timeline?
Typical residential electric customers would see a monthly increase of $7.85
Typical residential natural gas customers would see an annual decrease of $7.00
Business customers would see varying cost impacts based on their customer class and usage
Actual amounts will vary depending on the outcome of the case, and the associated rate designs approved by the PSCW
How will this impact customers?
Increased interruptible credits based on the cost of peaking units
Eliminated the customer demand charge which was applied to highest peak in past 12 months
Economic interruption rate option available
Shared Savings to support customer energy efficiency improvements
Enhanced renewable buyback rates for customer owned generation
What is WPL doing to help customers control costs?
Helping customers reduce their energy consumption through energy efficiency and demand-side management programs
Holding the line on O&M expenses
Implementing business unit cost saving activities
Utilizing Lean Six Sigma projects
Shielding against rising fuel costs by using a variety of fuels, multiple transportation options, locking in of prices and storage
What is WPL doing to control costs?
Questions?
NYMEX Natural Gas Prices May 2007 – May 2008
Natural Gas Prices Continue to Climb
AE-WPL Natural Gas Residential Rate Comparison
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