Agency overview | |
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Jurisdiction | Wisconsin |
Headquarters | 4822 Madison Yards Way Madison, Wisconsin 53705-9100 |
Agency executive |
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Website | http://psc.wi.gov |
The Public Service Commission of Wisconsin is an independent regulatory agency responsible for regulating public utilities in the energy, telecommunications, gas, and water companies located in the U.S. state of Wisconsin. [1] As of 2021, the agency regulated more than 1,100 electric, natural gas, telephone, water, and water/sewer utilities. [2]
The commission consists of three full-time commissioners who are appointed by the governor and confirmed by the Wisconsin State Senate in staggered six-year terms. The current commissioners are Tyler Huebner, Summer Strand, and Rebecca Cameron Valcq.
Mr. Huebner was appointed to the Commission by Governor Tony Evers in March 2020 to fill out the term of former Commissioner Michael Huebsch, then re-appointed to a full term on March 2, 2021. Ms. Nowak was appointed to the Commission in July 2011 by Governor Scott Walker and reconfirmed for a full term on March 1, 2013. After leaving the Commission to serve as Secretary of the Department of Administration, Walker appointed her in January 2019 for a third time to complete the term of former Commissioner Lon Roberts. Ms. Nowak's term will expire in 2023. Governor Evers appointed Ms. Cameron Valcq for a six-year term in January 2019. Governor Evers also appointed her as Commission Chairperson for a two-year term effective March 2, 2019.
The commissioners are assisted by a staff of auditors, accountants, engineers, rate analysts, attorneys, planners, research analysts, economists, consumer specialists, and other support personnel. The staff is divided into several divisions: the Division of Business Operations and Office Management, the Division of Digital Access, Consumer and Environmental Affairs, the Division of Energy Regulation and Analysis, the Division of Water Utility Regulation and Analysis, and the Office of General Counsel.
In Wisconsin, most activities of the 28 electric cooperatives are not under the jurisdiction of the PSC. [3]
In 2014, the Public Service Commission was subject to atypical scrutiny in three utility rate cases. The primary issue in the three cases was distributed generation. Ratepayers drew widespread opposition to increases in fixed fees for all customers.
The largest utility of the three, We Energies, also proposed increasing fees on customers who generate their own power, like those with rooftop solar. The case generated thousands of public comments opposing the changes. Around 500 ratepayers came out to protest the rate case at the public hearing in October. [4]
The Public Service Commission's staff analyst on these cases, Corey Singletary, testified that We Energies had not provided enough evidence to justify the changes they requested. [5] Through discovery, We Energies was forced to reveal that it had commissioned and paid for a study stating that net metering customers provided a net benefit to all ratepayers, contradicting their claims in the rate case.
Despite the lack of evidence to support the changes, the Commission voted to approve the requested increase to the fixed charges both for all customers and the additional charge for self-generators. Chairman Phil Montgomery and Commissioner Ellen Nowak supported the change, while Commissioner Eric Callisto dissented. [6]
Public Service Commissioners are prohibited by Wisconsin statute from communicating with parties with a substantial interest in the outcome of a pending case. There have been two major scandals involving violations of this law, both involving We Energies. [7]
During a pending utility merger between Wisconsin Energy Corp. and Northern States Power, the Commission defended itself against allegations of improper communication between one of the Commissioners and utility executives regarding the merger. [8]
During the pending We Energies rate case, Commissioner Ellen Nowak appeared to violate both the ex parte rules and the law requiring Commissioners to remain impartial. In both March and June, Commissioner Nowak appeared on panels for conferences hosted by the Edison Electric Institute. [9] In both panels, she advised her utilities on rate making practices. In the June panel, titled "Utility Regulation and Success in a Low Growth Economy," she appeared alongside We Energies CEO Gale Klappa. [9] There was also a question as to whether any other communication occurred between Commissioner Nowak and Klappa or other utility staff.
Groups and individual ratepayers called for Commissioner Nowak to recuse herself from the case due to her lack of impartiality. [10]
A public utility company is an organization that maintains the infrastructure for a public service. Public utilities are subject to forms of public control and regulation ranging from local community-based groups to statewide government monopolies.
Net metering is an electricity billing mechanism that allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated. This is particularly important with renewable energy sources like wind and solar, which are non-dispatchable. Monthly net metering allows consumers to use solar power generated during the day at night, or wind from a windy day later in the month. Annual net metering rolls over a net kilowatt-hour (kWh) credit to the following month, allowing solar power that was generated in July to be used in December, or wind power from March in August.
A public utilities commission is a quasi-governmental body that provides oversight and/or regulation of public utilities in a particular area, especially in the United States and Canada.
The Louisiana Public Service Commission (LPSC) is an independent regulatory agency which manages public utilities and motor carriers in Louisiana. The Commission was created by Article IV, Section 21 of the 1921 Constitution of the State of Louisiana. It succeeded the Railroad Commission of Louisiana that was created by the 1898 Constitution. The commission has five elected members chosen in single-member districts for staggered six-year terms. Thus the commissioners have large constituencies, long terms, and close involvement with issues of intense consumer interest ; consequently membership in LPSC has been known to serve as a springboard to even higher public office, as in the cases of Huey Long, Jimmie Davis, John McKeithen, and Kathleen Babineaux Blanco — LPSC members who became governors of Louisiana.
The California Public Utilities Commission is a regulatory agency that regulates privately owned public utilities in the state of California, including electric power, telecommunications, natural gas and water companies. In addition, the CPUC regulates common carriers, including household goods movers, limousines, rideshare services, self-driving cars, and rail crossing safety. The CPUC has headquarters in the Civic Center district of San Francisco, and field offices in Los Angeles and Sacramento.
The Public Utilities Commission of Ohio (PUCO) is the public utilities commission of the U.S. state of Ohio, charged with the regulation of utility service providers such as those of electricity, natural gas, and telecommunications as well as railroad safety and intrastate hazardous materials transport.
The Florida Public Service Commission (FPSC) regulates investor-owned electric, natural gas, and water and wastewater utilities. The FPSC facilitates competitive markets in the telecommunications industry, has authority over intercarrier disputes, and oversees pay telephones, the federal Lifeline Assistance Program and Telecommunications Relay Service.
The Maryland Public Service Commission (PSC) is an independent administrative agency within the state government which regulates public utilities and certain taxi cab and other passenger services in Maryland. Similar to other state public utilities commissions, the Maryland PSC regulates and sets tariff rates for natural gas, electricity distribution, local telephone, water, and sewage disposal companies. The PSC also sets the tariff rates for pilot services for vessels and privately owned toll bridges, approves the construction of electric generating plants and overhead transmission lines with a voltage above 69 kV, and licenses retail natural gas and electricity suppliers. The PSC offices are located in Baltimore in the William Donald Schaefer Building.
Pennsylvania Public Utility Commission (PUC) is the public utility commission in the beninging Pennsylvania. It is composed of five commissioners, which are appointed by the governor with the consent of the Pennsylvania State Senate. The PUC oversees public utility and services operations in the commonwealth, in sectors including water, energy, telecommunications, and transportation.
The National Association of Regulatory Utility Commissioners (NARUC) is the national association representing the U.S. state public service commissioners who regulate essential utility services, including energy, telecommunications, and water. Founded in 1889, the Association is a resource for its members and the regulatory community, providing a venue to set and influence public policy, share best practices, and foster solutions to improve regulation.
The Georgia Public Service Commission (PSC) is a statutory organ of the state government of Georgia; elected among five commission districts, the board consists of a Chairman, a Vice-chairman, and three Commissioners. PSC regulates telecommunications, transportation, electric and natural gas services in the U.S. state of Georgia. Commissioners are elected in partisan elections statewide, though they must reside in a district.
The Montana Public Service Commission(PSC) is a quasi-judicial regulatory board of elected officials in the U.S. state of Montana.
The New York Public Service Commission is the public utilities commission of the New York state government that regulates and oversees the electric, gas, water, and telecommunication industries in New York as part of the Department of Public Service. The department's regulations are compiled in title 16 of the New York Codes, Rules and Regulations. The current chairman of the Commission and chief executive of the Department is Rory M. Christian. His term began on June 10, 2021 and runs through February 1, 2027.
Net metering is a policy by many states in the United States designed to help the adoption of renewable energy. Net metering was pioneered in the United States as a way to allow solar and wind to provide electricity whenever available and allow use of that electricity whenever it was needed, beginning with utilities in Idaho in 1980, and in Arizona in 1981. In 1983, Minnesota passed the first state net metering law. As of March 2015, 44 states and Washington, D.C. have developed mandatory net metering rules for at least some utilities. However, although the states' rules are clear, few utilities actually compensate at full retail rates.
The Indiana Utility Regulatory Commission (IURC) is the public utilities commission of the state of Indiana, led by five commissioners appointed by the governor.
In the utilities industry, the Prudent Investment Rule refers to a series of state standards which determine the fiscal soundness of a utility in the course of rate recovery for recoverable capital costs to be determined by that state’s Public Service Commission (PSC). The determination is established through a series of filings from the utility to the PSC and hearings conducted by the PSC. This occurs during a prudency hearing. The PSC follows these standards to determine if the capital costs were a "prudent investment". To determine the prudency of the investment, the PSC applies the prudent investment test or standard, determining if the costs were reasonable at the time they were incurred, and given the circumstances and what was known or knowable at the time, are to be included in the firm's rates. It is commonly used as an oversight tool by the government to ensure that money invested into a project is being spent as it was intended so the utility may recoup some costs in construction through a recovery in rates, hence the title prudent investment rule. Regulators can consider cases of hidden imprudence, but are required to consider what was known or knowable at the time the decision was made by the PSC.
Net metering in Nevada is a public policy and political issue surrounding the rates that Nevada public utilities are required to pay to purchase excess energy produced by electric customers who generate their own electricity, such as through rooftop solar panels. The issue centers around the question paying solar customers the retail or wholesale rate for the generated electricity.
Net metering in Michigan was a state program that allowed utility customers to develop renewable energy generation projects on-site at their home or business to meet their own energy needs and reduce their electric bill. As of the end of 2015, Michigan had approximately 2,000 net metering customers. The net metering program was replaced with a inflow/outflow program which charges retail rate for grid energy used and pays for excess sent to the grid at a cost-avoided rate. This cost-avoided rate is much lower than the retail rate and each utility must have their price approved by the state utility board in their rate case.
New York’s Reforming the Energy Vision (REV) is a set of multi-year regulatory proceedings and policy initiatives launched in New York state in 2014. REV is intended to transform the way electricity is produced, bought and sold in New York and enable the integration of renewable energy generation and smart grid technologies on the electric grid. REV is ongoing with no predefined end date, and will impact all New York utilities and ratepayers.
Ellen Nowak is an American attorney and politician, serving as a member of the Public Service Commission of Wisconsin since January 2019. This is her third term on the Public Service Commission, having previously served from 2011 to 2018, and having served as chair of the commission from 2015 to 2018. In between her terms on the Public Service Commission, she served one year as secretary of the Wisconsin Department of Administration in the cabinet of Governor Scott Walker, during 2018.