An Act to amend 196.20 (4) (c) 1.; to create 196.20 (4) (a) 3. of the statutes; Relating to: calculation of fuel costs for an electric public utilityâs fuel cost plan.
Summary
AB751 amends Wisconsin’s utility regulation statutes governing electric public utilities’ fuel cost plans. The bill requires the Public Service Commission, when calculating fuel costs for a utility with an approved fuel cost plan, to account not only for the cost of purchasing electricity generation capacity that meets Midcontinent Independent System Operator (MISO) requirements, but also for the revenue earned from selling that capacity. It also adds a statutory definition tying “Midcontinent independent system operator” to the existing definition of “Midwest independent system operator” in another section of the statutes.
The bill’s practical effect is to change how fuel cost under-collections and over-collections are measured and deferred for later recovery or refund. By incorporating capacity-related revenues into the fuel cost calculation, the measure could affect future utility rate cases, customer bills, and the timing and amount of rate adjustments. The act applies first to proposed fuel cost plans filed on January 1, 2027, so it is prospective rather than immediate.
Impact
AB751 modifies s. 196.20(4)(c)1. and creates a new definition in s. 196.20(4)(a)3., affecting the statutory framework for electric public utility fuel cost plans in Wisconsin. It directs the Public Service Commission to include capacity purchase costs and capacity-sale revenues tied to MISO capacity requirements when calculating fuel costs, which may alter how utilities track deferred balances and how ratepayers are charged or refunded under approved fuel cost plans. The change is limited to proposed fuel cost plans filed on or after January 1, 2027.
Sentiment
The available record shows no committee transcripts or recorded votes, so there is no documented debate or formal opposition in the provided materials. Based on the bill text alone, the measure appears technical and regulatory in nature, suggesting a generally policy-focused rather than highly partisan proposal. Its prospective application and narrow subject matter indicate an effort to refine utility cost accounting rather than make a broad substantive change.
Contention
No specific points of contention are documented in the provided materials. Potential areas of debate, if any, would likely center on whether capacity revenues should be netted against fuel costs, how the Public Service Commission should implement the calculation, and whether the change could shift costs between utilities and customers. Stakeholders most likely to have an interest include electric utilities, the Public Service Commission, consumer advocates, and large electricity customers concerned about rate impacts.
Crossfiled
An Act to amend 196.20 (4) (c) 1.; to create 196.20 (4) (a) 3. of the statutes; Relating to: calculation of fuel costs for an electric public utilityâs fuel cost plan.
Public utilities: public service commission; calculation of costs of renewable energy; provide for. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 6y.