Wisconsin Moves Forward with Economic Development Rates

by preferred on February 22, 2010

Wisconsin is one of the few midwestern states whose utilities do not have
explicit economic development tariffs on file.

This is the first of a couple of EDRs the Commission will be considering. WPL, whose service territory has been hard hit by the economy, requested this EDR, which is a targeted discount on the
price paid for energy to reduce excess capacity and stimulate the local economy.
The hope is that this could assist in developing a more favorable business
climate, particularly in the Janesville, Rock County area, where the loss of the
GM plant took with it 2,600 jobs and corresponding electric load.

The estimated EDR deductions would total up to $5 million annually to targeted businesses,
both new and, under certain conditions, existing. The Commissioners were
cautiously supportive, stating that the tariff must be well-designed to avoid
running afoul of state laws that prohibit anti-discrimination in rates and avoid
free ridership. The Commission returned the tariff to WPL, requesting that it
work with Commission staff and other stakeholders to fine tune the tariff and
bring it back for Commission consideration in 30 days.

Docket 6680-GF-126

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