PSC 116.03(1)(1)
Annually, a utility shall file a proposed fuel cost plan as part of an application to open or reopen a general rate case proceeding or, if the utility does not file a general rate case, the utility shall file a proposed fuel cost plan as part of a proceeding limited in scope to fuel cost. A utility shall file a proposed fuel cost plan no more than 360 days or less than 150 days before the beginning of the plan year.
PSC 116.03(2)
(2) A utility shall include in a proposed fuel cost plan the following information for the plan year:
PSC 116.03(2)(c)
(c) A forecast of the annual native system requirement. In a utility's reopened general rate case proceeding or in a proceeding limited in scope to fuel cost, the applicable annual native system requirement is the same as the commission-approved forecast in the utility's most recently approved general rate case proceeding.
PSC 116.03(2)(d)
(d) Detailed input of the economic dispatch model used to forecast fuel cost.
PSC 116.03(2)(e)
(e) Detailed output of the economic dispatch model used to forecast fuel cost.
PSC 116.03(2)(f)
(f) All inputs and allocators used to calculate the forecast of the annual average fuel cost and the forecast of the annual native system requirement.
PSC 116.03(3)
(3) After hearing the commission shall approve a fuel cost plan, with any modifications or conditions the commission considers appropriate. The commission shall establish a utility's rates in accordance with the approved fuel cost plan, subject to reconciliation under s.
PSC 116.07.
PSC 116.03(4)
(4) Approval of a fuel cost plan by the commission is not a determination that the fuel cost plan is reasonable or prudent for reconciliation purposes under s.
PSC 116.07.
PSC 116.03 History
History: CR 08-070: cr.
Register February 2011 No. 662, eff. 3-1-11.
PSC 116.04
PSC 116.04 Deferral accounting. Subject to reconciliation under s.
PSC 116.07, a utility shall apply deferral accounting to all of its actual cost for items in an approved fuel cost plan and to all amounts collected or credited under ss.
PSC 116.07 and
116.08.
PSC 116.04 History
History: CR 08-070: cr.
Register February 2011 No. 662, eff. 3-1-11.
PSC 116.05(1)(1)
A utility shall file a report with the commission that includes the actual cost for items in an approved fuel cost plan, native system requirement, and the use of items in the approved fuel cost plan by item and energy source. The report shall also include the average monthly figure for each category for the plan year to date.
PSC 116.05(2)
(2) A utility shall file the report according to a schedule the commission establishes. Upon written request, the commission may grant a utility an extension of up to 30 days for the filing of a report.
PSC 116.05 History
History: CR 08-070: cr.
Register February 2011 No. 662, eff. 3-1-11.
PSC 116.06
PSC 116.06 Deferred account balance calculation. PSC 116.06(1)(1)
A deferred account balance debit shall be calculated using the following formula:
If AAFC is ≥ (AAFCF x (1+FCT))
Then DABD = WJR x [AAFC – (AAFCF x (1 + FCT))]
Where DABD = Deferred account balance debit.
WJR = Wisconsin jurisdictional share of the
annual native system requirement.
AAFC = Average annual fuel cost.
AAFCF = Forecast of the average annual fuel cost
in the approved fuel cost plan.
FCT = Fuel cost tolerance.
PSC 116.06(2)
(2) A deferred account balance credit shall be calculated using the following formula:
If AAFC is < (AAFCF x (1-FCT))
Then DABC = WJR x [(AAFCF x (1 – FCT)) – AAFC]
Where DABC = Deferred account balance credit.
WJR = Wisconsin jurisdictional share of the
annual native system requirement.
AAFC = Average annual fuel cost.
AAFCF = Forecast of the average annual fuel cost
in the approved fuel cost plan.
FCT = Fuel cost tolerance.
PSC 116.06(3)
(3) A utility's fuel cost tolerance shall be set at plus or minus two percent, unless the commission sets a different percentage when approving a fuel cost plan under s.
PSC 116.03 (3).
PSC 116.06 History
History: CR 08-070: cr.
Register February 2011 No. 662, eff. 3-1-11.
PSC 116.07(1)(1)
Annually, but no later than 90 days after the end of the plan year, a utility shall file an application for the reconciliation of actual cost for items in an approved fuel cost plan for the plan year.
PSC 116.07(2)
(2) The utility in its application shall identify and explain the following:
PSC 116.07(2)(c)
(c) Deferred account balance debit or deferred account balance credit as of the end of the plan year.
PSC 116.07(2)(e)
(e) Deviations from the approved fuel cost plan, including differences in scheduled and in forced outage rates.
PSC 116.07(3)
(3) The commission shall commence a proceeding to consider the application and shall conclude the proceeding no later than 240 days after the end of the plan year. The commission shall review all of the items identified in sub.
(2) and may request that the utility provide any other information the commission considers appropriate.
PSC 116.07(4)(a)(a) If after hearing the commission finds the utility demonstrated that the deferred account balance debit is accurate and includes only prudently-expended fuel costs, the commission shall authorize the utility to recover in rates the amount of the deferred account balance debit less any amount of fuel costs already collected from customers under s.
PSC 116.08, plus any fuel costs already credited to customers under s.
PSC 116.08, and less any utility excess revenues.
PSC 116.07(4)(b)
(b) If the amount already collected from customers under s.
PSC 116.08 is greater than the deferred account balance debit found in par.
(a) less any excess revenues, the commission shall order the utility to credit the difference to customers.
PSC 116.07(4)(c)
(c) If after opportunity for hearing the commission finds a deferred account balance credit, the commission shall order the utility to credit to customers the amount of the deferred account balance credit, plus any amount already collected from customers under s.
PSC 116.08, and less any amount already credited to customers under s.
PSC 116.08.
PSC 116.07(5)
(5) For any amount under sub.
(4), the commission shall do all of the following:
PSC 116.07(5)(a)
(a) Establish a date upon which collection may begin or credit shall begin, and a date upon which the collection or credit shall terminate.
PSC 116.07(5)(b)
(b) Calculate the rate of collection or credit using the current fuel cost plan.
PSC 116.07(5)(c)
(c) Calculate and apply interest to the amount starting on the first day of the plan year in which collection or credit occurs until the termination date established in par.
(a), by applying the utility's authorized short-term debt rate to the outstanding amount, on a monthly basis.
PSC 116.07(6)
(6) Based on the termination date established in sub.
(5) (a), any amount over-collected or under-credited shall be charged to the appropriate deferred account.
PSC 116.07 History
History: CR 08-070: cr.
Register February 2011 No. 662, eff. 3-1-11.
PSC 116.08(1)(1)
The commission may commence a proceeding to adjust rates for a utility during a plan year if all of the following apply:
PSC 116.08(1)(a)
(a) During the plan year the commission projects that the utility's average annual fuel cost will differ materially from the forecast of the average annual fuel cost used in an approved fuel cost plan.
PSC 116.08(1)(c)
(c) The commission finds that the absolute value, at current rates, of the difference at the end of the plan year between the commission's projection of utility average annual fuel cost and the commission's approved forecast of utility average annual fuel cost, as specified in par.
(a), likely will be of sufficient magnitude to cause a material change to rates.
PSC 116.08(2)
(2) After a hearing, the commission may approve a rate change that is designed to avoid a difference of such magnitude.
PSC 116.08(3)
(3) The commission may not adjust an approved fuel cost plan in an order under sub.
(2).
PSC 116.08(4)
(4) A utility may not obtain an increase in rates under sub.
(2) more than once during a plan year.
PSC 116.08 History
History: CR 08-070: cr.
Register February 2011 No. 662, eff. 3-1-11.
