TUE AM News: Customer advocates, industrial energy users oppose WEC Energy Group rate proposals; WisBusiness: the Show with Katie Schmitz, Ziegler

April 16, 2024

— The head of the Citizens Utility Board of Wisconsin expects WEC Energy Group utilities’ rate increases for 2025 and 2026 will be “well below” what the Milwaukee-based company is seeking.

In rate cases filed recently with the Public Service Commission, We Energies and Wisconsin Public Service Corp. are seeking more than $800 million in rate increases for customers in eastern and northern parts of the state, according to a recent CUB release.

In a statement on the filings, CUB Executive Director Tom Content says the PSC “will need to evaluate very carefully” the impacts of the proposed rate changes. He argues the customers that would be hit with the increase “are already paying among the highest prices in the Midwest” for electricity.

“From the filing it appears that We Energies wants to have its cake and eat it too: They want to make money on all the new solar and natural gas plants they ‘re looking to build, and they want to keep profiting on coal plants long after they’re shut down,” Content said in a statement.

In a filing with the PSC, WEC Energy Group Executive Vice President of Internal Affairs Robert Garvin says We Energies’ requested rate increase will allow the company to improve reliability, invest in new generation and distribution projects and comply with anticipated emissions rules as it moves away from coal to renewables and natural gas.

He wrote the proposal will “result in just and reasonable rates while we continue to provide affordable, reliable, and clean electric and natural gas service.”

A WEC Energy Group spokesperson told WisBusiness.com the filing aims to reduce customer outages, build infrastructure in the state and meet the new EPA environmental rules. The spokesperson said “the vast majority” of the filing is to recover the costs of renewable and low-carbon power plants already approved by the PSC.

He also highlighted “critical investments in storm hardening” as increasingly important, noting the state is experiencing stronger and more frequent severe storms. The company is proposing to bury hundreds of miles of power lines in the coming decade and do more tree trimming, according to the emailed statement.

“The request includes millions of dollars of savings from the closure of the old coal units at the Oak Creek Power Plant as well as tens of millions of dollars in tax credit savings tied to new renewable energy facilities,” the spokesperson wrote. “Typical residential electric bills are significantly below the national average and in line with other utilities in Wisconsin and across the Midwest. If this request is fully approved, that will still be true.”

Meanwhile, the Wisconsin Industrial Energy Group is urging the PSC to “drastically reduce” the proposed rate increases by WEC Energy Group. This association of some of the state’s top energy consumers notes its members collectively spend more than $400 million on electricity each year.

“Wisconsin’s ratepayers simply can’t afford additional cost burdens,” WIEG Executive Director Todd Stuart said in a statement. “High electric rates are effectively a tax on all Wisconsin homeowners and businesses.”

As the rate cases proceed, Content is urging homeowners, renters and small businesses to “raise their voice” during public hearings being held this fall.

See the CUB release here and the WIEG release here.

— The latest episode of “WisBusiness: the Show” features Katie Schmitz, head of principal investing and fund management at Chicago-based investment bank Ziegler.

Schmitz, who’s also chief administrative officer of the Ziegler Linkage Funds, discusses the bank’s origins in West Bend, her work managing the organization’s principal investments and the evolution of what she calls “age tech.”

She points to a market imbalance between the aging population and the limited number of caregivers and long-term care facilities.

“The idea of age tech are innovative technologies and tech-enabled service models that are really helping to seek to address that imbalance,” she said. “Whether it’s through helping caregivers become more efficient, helping older adults age well in place in their homes, or whether that’s ways for organizations to help provide better care and help improve health outcomes for older adults.”

Schmitz also shares her perspective on the venture capital landscape, arguing the future for VC capital remains strong.

“What I’ve been hearing from colleagues in the market is, at that earlier seed stage, you know over the last couple years, they weren’t as impacted by valuations, liquidity, they were still able to put money to work,” she said. “Which I think bodes well for those companies that are growing through this next phase.”

Watch the show here and see more episodes from the Wisconsin Technology Council.

— U.S. Sen. Tammy Baldwin recently announced $5.7 million in funding for advanced manufacturing education is going to Wisconsin Technical College System schools.

Funding from the Department of Labor’s Strengthening Community Colleges Training Grants is going to Western Technical College and eight other WCTS schools, according to the Madison Dem. The grant will be used to expand training capacity, skills development and credentialing, the release shows..

“Wisconsin has a proud tradition of manufacturing, and this investment will help grow the advanced manufacturing workforce of tomorrow, meet businesses’ workforce demands, and expand the middle class,” Baldwin said in a statement.

See the release.

— Gov. Tony Evers has announced David Casey, a former deputy secretary at the agency, will now lead the Department of Revenue.

Casey replaces Peter Barca, who left the post last week as he considers a run for the 1st CD. Casey served as deputy secretary from 2019-22 and now works as the principal industry expert in tax compliance and fraud for SAS Institute in Cary, N.C.

He will take over the new role April 29.

“I look forward to David bringing his decades of experience in the industry, previous history working alongside our dedicated state workers, and his knowledge of our state tax laws and codes back to the department to serve the people of Wisconsin,” Evers said.

The appointment leaves two more spots for Evers to fill in his cabinet: Corrections, which has been vacant since Kevin Carr left in March, and Natural Resources, which has been open since Adam Payne resigned in November.

See the release.

Top stories from the Health Care Report…

— Respiratory illness activity in the state is declining as fewer emergency department patients are testing positive for COVID-19, RSV and the flu.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

Sign up here.

— Wisconsin banks this week will be holding community events and taking on service projects for this year’s Power of Community Week, held by the Wisconsin Bankers Association.

The WBA yesterday announced banks will be involved with highway cleanups, food and supply drives for nonprofits, Earth Day activities, fraud and scam prevention workshops and more.

“The Power of Community Week highlights the collective impact of Wisconsin’s banking industry,” said WBA President and CEO Rose Oswald Poels. “Bank employees tailor their efforts to the individual needs of their areas — from giving financial literacy presentations in local schools to running food drives to volunteering in nursing homes — it shows how passionate they are.”

See the release.

State orders audit of SDC over unpaid contractors, as CEO admits agency is on ‘shaky’ financial ground

Peak perseverance: Rick Barrett’s epic 12-year saga to build The Couture

TOPICS

AGRIBUSINESS

– Central Wisconsin Farm Profitability Expo

– Wisconsin cranberries get $561,814 boost

CONSTRUCTION

– Zignego Company contracted to $12.3M road project in Greenfield

EDUCATION

– Financial consultant report tells UWGB leaders to ‘act with urgency.’ Here’s why

ENTERTAINMENT & THE ARTS
– Door County’s Alpine Resort announces the schedule for its ‘Concerts in the Tent’ series