Wisconsin Assembly Bill AB1162

Wisconsin 2025-2026 Regular Session

• Introduced: 3/19/26
• Refer: 3/19/26
• Failed: 3/23/26

Caption

An Act to create 196.03 (7) of the statutes; Relating to: a very large customer class for electric utilities and granting rule-making authority. (FE)

Summary

AB1162 would require the Wisconsin Public Service Commission (PSC) to create, by order, a definition and set of characteristics for a “very large customer” class or subclass for each electric utility by December 15, 2027. The bill is aimed at electric utility customers served under tariff or contract rates that are large enough to warrant separate regulatory treatment. It also gives the PSC rule-making authority to establish the information utilities must provide and the standards they must use to justify rates for these customers. Once a utility offers a tariff or contract rate to a very large customer, it would have to file a rate case application with the PSC by April 1 every other year, unless the PSC chair grants a waiver for exceptional circumstances. In that rate case, the utility must provide cost information showing the total current and forecasted costs of serving the customer, and the PSC must decide whether the rate is just and reasonable or instead unreasonable, preferential, or unjustly discriminatory. If the PSC finds the rate or service terms unlawful under those standards, it must adjust the rate or modify the service terms to bring them into compliance.

Impact

The bill would add a new subsection to Wisconsin Statutes section 196.03, expanding PSC oversight of utility pricing for a newly defined class of very large electric customers. It would require recurring rate-case review for qualifying tariffs or contracts, impose new reporting and justification obligations on electric utilities, and direct the PSC to adopt rules governing cost-of-service showings for these customers. The practical effect would be to increase regulatory scrutiny of special-rate arrangements for large load customers and to give the PSC explicit authority to revise rates or contract terms if they are found to be unjust, unreasonable, preferential, or discriminatory.

Sentiment

The available record shows no committee testimony, recorded debate, or votes, so there is no documented public controversy or support level in the materials provided. Based on the bill’s structure, it appears to be a regulatory oversight measure rather than a broad policy change, with the main stated purpose of ensuring that rates for very large customers reflect utility costs and comply with existing just-and-reasonable standards. The presence of a fiscal estimate suggests the proposal was considered significant enough to warrant cost analysis, but no vote history is available to indicate legislative sentiment.

Contention

The main potential point of contention is the bill’s impact on utility flexibility in negotiating special rates with very large customers, since it would require periodic PSC review and could force changes to existing tariff or contract terms. Electric utilities and large industrial or commercial customers may view the new filing requirements and cost-justification standards as burdensome or as limiting customized pricing arrangements. Supporters would likely emphasize transparency, cost recovery, and protection against preferential treatment, while opponents may argue that the bill could reduce competitiveness for large-load customers or complicate utility economic development deals.