IMMEDIATE ADOPTION
Number
231926
Version
ORIGINAL
Reference
220612, 230896
Sponsor
ALD. DIMITRIJEVIC
Title
Resolution authorizing the City Attorney to file a request to intervene in the Application of Wisconsin Electric Power Company for Approval of Deferral Accounting Treatment of Increased Forestry Activity in Response to Continued Severe Storms (PSC Docket 6630-AF-101).
Analysis
This resolution authorizes the City Attorney to file a request to intervene in the Application of Wisconsin Electric Power Company for Approval of Deferral Accounting Treatment of Increased Forestry Activity in Response to Continued Severe Storms (PSC Docket 6630-AF-101).
Body
Whereas, Wisconsin Electric Power Company (WEPCO) applied to the Public Service Commission of Wisconsin (PSC) for approval of deferral accounting treatment of increased forestry activity in response to continued severe storms in PSC Docket 6630-AF-101; and
Whereas, In its test year 2023 rate case, WEPCO received authority to increase its rates on residential customers by 11.3 percent, effective January 2023; and
Whereas, In a limited re-opener of the test year 2023 rate case, WEPCO received authority to increase its rates on residential customers by an additional 3.1 percent, effective January 2024; and
Whereas, WEPCO claims that as a result of a severe winter storm on January 12-14, 2024, that knocked out power to more than 233,000 customers, it incurred storm restoration costs of $9.5 million, which is more than WEPCO’s entire budget for storm restoration in 2024; and
Whereas, WEPCO seeks PSC approval to defer storm restoration costs during 2024 in excess of $8.5 million, the amount authorized for all of 2024, so that WEPCO may recover these costs from customers in its upcoming test year 2025 rate case; and
Whereas, Due to increasing numbers of severe storms due to climate change as well as damage from Emerald Ash Borer infestations, WEPCO also requests authority to spend and defer an additional $25 million for forestry activity in 2024, which is on top of the $18.9 million currently authorized in rates; and
Whereas, WEPCO seeks to defer the additional forestry expenses so that it may also recover these costs from customers in its upcoming test year 2025 rate case; and
Whereas, Both trends - increased severe storms due to climate change and damaged trees due to Emerald Ash Borer infestations - were well-known before the storm recovery and forestry budgets were established in WEPCO’s most recent rate case; and
Whereas, The City has called on WEPCO to address its susceptibility to large-scale outages due to major storms and delayed restoration of service; and
Whereas, The City urges the PSC to scrutinize WEPCO’s request to defer these costs for future recovery from customers and consider the impacts of such rate increases on low and moderate-income residents in light of the significant rate hikes obtained by WEPCO in its most recent rate cases; and
Whereas, Intervention in this or any other related Commission proceeding regarding the application of Wisconsin Electric Power Company for approval of deferral accounting treatment of increased forestry activity in response to continued severe storms is related to protecting the interests of the City; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the City Attorney’s Office is authorized to intervene on behalf of the City before the Public Service Commission of Wisconsin regarding the Application of Wisconsin Electric Power Company for Approval of Deferral Accounting Treatment of Increased Forestry Activity in Response to Continued Severe Storms (PSC Docket 6630-AF-101), and to protect the City’s interests in that or any other related proceeding.
Requester
Drafter
LRB179797-1
Tea B. Norfolk
4/5/24