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PSC denies Rice Lake Utilities' proposed parallel‑generation buyback rate
Summary
The Public Service Commission of Wisconsin on Oct. 2 denied Rice Lake Utilities’ proposed revisions to its PGS‑1 and PGS‑2 parallel generation tariffs, citing insufficient data and an unreasonable methodology for calculating avoided capacity value.
The Public Service Commission of Wisconsin on Oct. 2, 2025 denied the City of Rice Lake’s proposed changes to its parallel generation tariffs (PGS‑1 and PGS‑2), rejecting a proposed buyback (buyback) rate of about 5¢ per kilowatt‑hour.
Commissioner Hawkins, who led the docket discussion, said he was unconvinced by Rice Lake Utilities’ methodology and described the proposal as novel and based on sparse data. “This tariff doesn't really pass my sniff test for reasonableness,” Hawkins said during the meeting.
The tariff under review would have reduced the buyback credit paid to parallel generation customers (PGS‑1 covers generation under 20 kW with net energy billing) from a rate of a little over 7¢/kWh to roughly 5¢/kWh, a change the utility tied to its wholesale costs from AEP Energy Partners and to “avoided” transmission and…
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