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Green Bay, WI, Sept. 3, 2008 -- The Citizens Utility Board (CUB) has filed a stipulation it agreed to with Wisconsin Public Service Corp. (WPS), a subsidiary of Integrys Energy Group, at the Public Service Commission of Wisconsin. In the stipulation, CUB and WPS agreed to several initiatives that they said will help WPS customers conserve energy. The proposal is subject to commission approval.
In a four-year pilot, WPS will reduce its fixed customer charges, increase its annual contribution to Focus on Energy (the organization that promotes energy conservation statewide) in each of the four years, and conduct new rate offerings in three communities to increase customer awareness and ability to use energy more efficiently. In addition, WPS will support the governor's task force recommendations regarding new or improved state building codes and new or improved standards for appliances.
To balance the potential for reduced revenues due to decreased energy use by its customers, WPS is proposing a revenue stabilization mechanism to begin in 2009 for most of its customers. With revenue stabilization, WPS will be assured a certain level of revenue for its natural gas and electric deliveries regardless of weather and other conditions. Under the mechanism, WPS's revenue level will be "trued up" annually. If WPS's revenues are higher than expected, customers will receive refunds. If WPS's revenues are lower than expected, WPS will recover the difference over the next year.
"This package contains a number of initiatives that encourage energy conservation in a number of new and innovative ways," said Jim Schott, WPS vice president of regulatory affairs.
CUB and WPS collaborated on the issues to develop a proposal that has great potential benefits to customers and the environment by aggressively pursuing energy conservation.
CUB executive director Charlie Higley said, "By reducing the fixed charge and increasing the volumetric charge, customers are encouraged to use less energy. Reducing the fixed charge helps low-income and other customers who use a minimum amount of energy already. The community pilots will help us understand the ways customer react to innovative pricing, and various energy efficiency programs so that we can roll out the successful ones to the rest of WPS's service territory."
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