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MG&E PLANS TO LOWER ELECTRIC RATES AND RAISE NATURAL GAS RATES

Madison Gas and Electric has announced it is asking for a settlement agreement with the
Wisconsin Public Service Commission which would slightly lower electric rates and slightly
increase natural gas rates for its Dane County customers. If approved, the rate changes would
take effect January 1, 2019, and run through the end of 2020, according to Steven Schultz of
MG&E.

For the typical electric customer, the rate would decrease about $1.33 a month to the end of
2020. A typical MG&E natural gas customer will see a bill increase of around 36 cents per
month in 2019 and 97 cents per month in 2020.

The electric decrease is caused by the tax change impact of 2017 along with the anticipated
savings of a new wind farm currently under construction in Iowa set to come on-line in the
Spring of 2019.

The natural gas increase is due to infrastructure changes including pipeline restructuring to
ensure natural gas delivery. The settlement will be submitted to the Public Service Commission
for approval with a decision expected later in 2018.

ALLIANT ENERGY INVESTING TO KEEP COSTS LOW

Alliant Energy’s Wisconsin energy company has filed plans with the Public Service Commission of Wisconsin (PSCW) to build a wind project that will lower energy costs for Wisconsin customers starting in 2020. The proposed project will be located in North Central Iowa which has consistently strong wind resources. Customers will benefit directly from fuel-free renewable energy that provides long-term cost stability. The cost to build new wind projects has decreased significantly over the last several years. This is largely the result of continued technological advancements that improve turbine efficiency. This project would add 150 megawatts of wind energy, enough to power an additional 70,000 homes. The company’s Wisconsin customers already benefit from low-cost wind through Alliant Energy’s ownership in three wind farms.

AMERICAN TRANSMISSION COMPANY BUYS LAND FOR SUBSTATION

American Transmission Company has bought land to build a proposed electrical substation for the $10 billion manufacturing complex Foxconn Technology Group is building in southeast Wisconsin. It has purchased 33 acres of land in Mount Pleasant for $2.4 million. ATC plans to build a new substation east of the Foxconn complex and connect it with high-voltage power lines. The utility plans to have new lines run between Kenosha County and Racine County. Foxconn is expected to use about 200 megawatts of electricity, six times more than the next-largest factory in the state according to ATC. The Taiwanese company plans to make advanced liquid-crystal-display panels for commercial and consumer uses, including televisions. ATC needs to win approval of the project from the Public Service Commission of Wisconsin. Work on the substation and the $117 million electric transmission lines could begin in the fall.

WISCONSIN ALLIANT CUSTOMERS TO RECEIVE A RATE FREEZE

Wisconsin customers of Alliant Energy will see no increase to base electric and natural gas rates through 2020 under a proposal filed with the Public Service Commission of Wisconsin (PSCW). Customer rates will drop for the remainder of 2018 due to bill credits following a separate PSCW decision.

“The rate freeze is a win for customers,” according to John Larsen, President of Alliant Energy Corporation. “We’ve worked hard to hold the line on costs through 2020. It’s important to us to deliver cleaner power to families and businesses while keeping rates down.”

The company reached agreement on the proposal with significant input and collaboration from the Citizens Utility Board (CUB) and Wisconsin Industrial Energy Group (WIEG). If approved by the PSCW, the plan would be in effect 2019-2020. A decision is expected later in 2018. No rate increase proposed for 2019-2020. The proposal reflects Alliant Energy’s efforts to lower operational and fuel costs, along with expected tax savings from the 2017 Tax Cuts and Jobs Act. Included are investments for making electricity from cleaner and renewable sources. Alliant Energy’s retail electric rates are among the lowest in Wisconsin.

ates

TAX REFORM BILL – HOW WILL IT BENEFIT THE RATEPAYER?

The recently enacted Tax Reform Bill will, among other things, reduce the corporate income tax rate from a maximum of 35 percent to a flat rate of 21 percent for tax years beginning after 2017. On January 10, 2018 the Public Service Commission of Wisconsin (PSC) issued a request that each utility provide comments on how it proposes to implement changes resulting from the Tax Reform Bill for the benefit of ratepayers. The PSC estimates that the utilities will over collect from customers between $190 and $198 million, because the rates customers are currently paying are based on the revenue requirement at the higher tax rate. All of the Wisconsin utilities, along with consumer groups have submitted initial comments. The comments from the utilities suggest a variety of alternative approaches including: customer bill credits, use of savings for capital improvements, addressing the issue in future rate cases, and reducing pre-existing deferred balances. The consumer groups advocated for returning the savings in the form of a bill credit. The commission is currently considering various alternatives and has not yet issued a final order.

GOVERNOR WALKER SIGNS BILL RELATING TO RATE DISPUTES

Wisconsin Governor Scott Walker has signed legislation (2017 Wisconsin Act 136) to give utilities a way to resolve disputes over their attempts to raise the rates charged to homeowners and businesses. The measure would allow a utility to reach a settlement with a group representing homeowners or businesses and then let the Public Service Commission decide on approving it. If one group of ratepayers settled with the utility and the other didn’t, the commission would have to take input from all sides but could still approve the settlement. This legislation was supported by WUI and Wisconsin utilities.

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