Wisconsin Electric Power Company (WEPCO) and Wisconsin Gas LLC (WG), (collectively We Energies), have been operating under incentive Gas Cost Recovery Mechanisms (GCRM) since April 2001. An incentive GCRM allows shareholders to share in the savings and losses above or below a set benchmark for gas costs. On May 29, 2009, We Energies filed a proposal to change from incentive GCRMs to modified one-for-one GCRMs, with an implementation date of November 1, 2009, the start of the next gas year.
With high price volatility as well as other changes in the gas industry, current policy allowing utilities to earn profits on their gas costs may no longer be appropriate. We Energies’ proposal to move to a modified one-for-one GCRM and the accompanying proposed tariffs appear reasonable.
Docket 05-UR-104
