Number
090866
Version
SUBSTITUTE 1
Reference
Sponsor
Ald. Bauman
Title
Substitute resolution relating to the preliminary findings of the Public Service Commission of Wisconsin relative to a water rate increase.
Analysis
This resolution authorizes and directs the Milwaukee Water Works to accept the Public Service Commission of Wisconsin’s proposed revenue requirement and proceed with the rate case strategy as described in Resolution 090239.
Body
Whereas, Resolution 090239 authorized the Milwaukee Water Works to apply to the Public Service Commission of Wisconsin for a water rate increase specifying rates of return of 6.5% from wholesale customers and 5.0% from city of Milwaukee customers and to return to the Common Council for final consent at the appropriate point in the rate-setting process; and
Whereas, The Public Service Commission of Wisconsin has developed the revenue requirement for the requested rates of return and finds that an additional $18.8 million of revenue would be generated with the weighted average rate of return of 5.22%; and
Whereas, Any modification to the requested rate of return must be communicated to the Public Service Commission of Wisconsin at this stage of the rate-setting process; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that the revenue requirement determined by the Public Service Commission of Wisconsin be affirmed without modification of the rates of return originally requested; and be it
Further Resolved, That the Public Service Commission of Wisconsin be requested to complete the rate setting process and that the rate increase be implemented as soon as practicable after the effective date of the Public Service Commission order and in accordance with Wis. Stats. secs. 196.21 and 196.40 and City of Milwaukee Charter sec. 14-14.
Requestor
Department of Public Works
Milwaukee Water Works
Drafter
Water Administration
CML
January 15, 2010