Wisconsin Assembly Bill AB681

Wisconsin 2023-2024 Regular Session

• Introduced: 11/27/23
• Refer: 11/27/23
• Failed: 4/15/24

Caption

Amending certain orders and certificates issued by the Public Service Commission. (FE)

Impact

By allowing the PSC to revisit existing orders and certificates in light of changed construction costs—specifically if those costs exceed a 5 percent threshold above the initially approved costs—the bill is expected to increase transparency and public involvement in the decision-making process. It mandates that after determining a cost increase, the PSC must hold a public hearing with a comment period of at least 15 days. This public engagement can lead to more informed decisions regarding the financial implications for ratepayers and the accountability of public utilities.

Summary

Assembly Bill 681 is a legislative proposal that seeks to amend orders and certificates issued by the Public Service Commission (PSC) concerning public utilities in Wisconsin. This bill gives the PSC the authority to rescind, alter, or amend previous orders that specify the rate-making principles applicable to a public utility's recovery of capital costs when market conditions change significantly and actual costs have fallen. The proposal aims to create more agile and responsive regulation of public utilities in the face of fluctuating market conditions, thus potentially benefiting consumers by ensuring that rate-making reflects current realities.

Contention

The discussions surrounding AB681 may include points of contention regarding the PSC's expanded powers and the impact this may have on public utilities and consumers. Proponents argue that these changes promote efficiency, encourage fair pricing, and help align costs with actual market conditions, providing consumers with better rates and protecting public interest. Conversely, opponents might express concerns about the possible destabilization of financial planning for utilities, as frequent alterations to rate-making principles could lead to increased uncertainty in operational costs and investment into infrastructure.