On February 18, 2010, Wisconsin Electric Power Company (WEPCO) filed an application with the Commission for approval of a contract for electric service under the terms of Wis. Stat. § 196.192 with Charter Steel (Charter) for the provision of electric service to Charter’s integrated steel melting and hot rolling mill located in Saukville, Wisconsin.
The proposed contract adds a third layer to the Cp-FN rate schedule’s “firm” and “non-firm” prices. The third energy pricing tier, LMP plus 20 percent, would be applied to energy use (“New Usage”) that exceeds the Threshold Usage for each month. Wisconsin Stat. § 196.192, which was enacted as part of 1999 Wisconsin Act 9, required investor-owned electric utilities to file with the Commission “market-based pricing options and options for individual contracts that allow a retail customer, through service from its existing public utility, to receive market benefits and take market risks for the customer’s purchases of capacity or energy. ”
The Commissioners determined that, under the original proposal, Charter did not accept enough risk and directed that Charter should accept the contract for an initial period of one year.
Docket 6630-GF-132
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