Commission approves 2024 fuel reconciliations, orders class‑level refunds in September

The Public Service Commission on July 17 accepted staff audits of 2024 fuel costs and approved refunds or credits to customers for multiple utilities, directing companies to return over‑collections using a class‑level allocation in September 2025. The commission accepted reconciliations for Madison Gas and Electric Company, Northern States Power Company (NSPW), Wisconsin Electric Power Company/Webco, and Wisconsin Public Service Corporation (WPS).

The commission said staff’s audits did not identify imprudently incurred costs or material misstatements in the utilities’ monitored fuel‑cost filings. Chair Strand said the commission favored the class‑level allocation because it “more accurately returns money to the customers that contributed to the over collection.”

The nut graf: The decisions finalize staff audits of 2024 monitored fuel costs and set the mechanism and timing—class‑level allocation in September—for returning over‑collected fuel amounts and accrued interest. Commissioners debated whether returning credits in a single month would misallocate refund dollars for customers with atypical usage and whether spreading refunds over several months would be fairer and more accurate.

Commission discussion and key figures: NSPW reported an initial over‑collection of $13,205,419, which after the 2% fuel‑cost band adjustment was reduced to $9,896,321; NSPW also had a remaining 2023 refund obligation of $1,097,058 plus accrued interest, which together with 2024 totaled $11,287,579. Webco reported a 2024 over‑collection of $86,211,880 reduced to $66,649,290 under the 2% band and a total refund (including interest) of $68,988,437 if returned in September 2025. WPS reported an over‑collection of $65,365,830 reduced to $50,983,092 and a September refund total of $52,712,882 with interest included. Commissioners indicated staff found no audit errors for these dockets.

On timing, Commissioner Hawkins said she supported class‑level allocation but favored a multi‑month payout because it “gives you a higher degree of accuracy” for customers whose monthly usage may be atypical. She noted, “If you’re on vacation for 10 days in 1 single month, and your house has all the lights off, you’re not getting your refund that you deserve.” Chair Strand and Commissioner Nieto countered that returning credits as soon as possible captures money for customers who remain on the system and avoids leaving refunds with customers who later leave service.

Actions and votes: Commissioners moved and seconded acceptance of each utility’s reconciliation consistent with the discussion and recorded the votes as “All in favor. Aye.” The motions were moved by Commissioner Nieto and seconded by Commissioner Hawkins; Chair Strand participated in the approval votes. The commission directed refunds using the class‑level allocation method in September 2025 and that interest be calculated at the applicant’s authorized short‑term borrowing rate where specified.

Context and next steps: The commission applied PSC 116 administrative code rules for monitored fuel cost reconciliation and the utilities’ ratemaking framework in reviewing the filings. Commissioners said they will apply the same audit approach to future reconciliations and noted there will be separate dockets addressing surcharges where customers were under‑billed. The orders set how the utilities should allocate and return over‑collections but left other, longer‑term questions—such as possible policy changes on refund timing—for future consideration.

Ending: The commission completed the votes on the 2024 fuel reconciliations before moving on to other agenda items.