The Public Service Commission approved Northern States Power Company–Wisconsin’s proposal to adjust electric and natural gas rates for test years 2026 and 2027 after a multihour decision-matrix review of contested and uncontested items (docket 4220-UR-127). The commission adopted a package of staff audit adjustments and selective add-backs that reduced the applicant’s initial requested increases.

What changed from the filing: NSPW originally requested an approximate electric revenue increase of $93 million in 2026 (about 12% over current rates) and $151 million in 2027 (about 19% over current rates). Following the commission’s decisions, the recalculated electric increase cited by commissioners was approximately 8.8% for 2026 and about 16% cumulative by 2027. Natural-gas increases were reduced to about 11.6% (2026) and 13.57% (2027) in the commission’s recalculation.

Key contested outcomes and rationale:
- Board of directors’ expenses: The commission allowed 50% of board-member expenses in the revenue requirement, saying some costs primarily benefit shareholders while others are indirect and support company operation and access to capital. Commissioners characterized the split as a reasonable balance.
- Directors-and-officers (fiduciary) insurance: Commissioners allowed the full requested fiduciary insurance fees as a utility operating cost, describing them as necessary risk-mitigation expenses.
- Association dues: The commission authorized association dues consistent with past practice and the staff audit while encouraging clearer customer-benefit documentation in future cases.
- Staffing (regular FTEs): Commissioners restored union-represented positions requested by the utility (consistent with the applicant’s justification) but limited allowance for certain nonrepresented positions (a middle-ground approach carried forward from prior decisions).
- Wages: For nonrepresented employees, wage increases tied to inflation levels recommended by staff were adopted; wage increases under ratified contracts were updated to reflect those agreements.
- AFUDC accrual: The commission authorized accrual of AFUDC at the weighted average cost of capital beginning one day after the service date of the final decision through Dec. 31, 2027 for project-specific CPCN/CA work.
- Conservation budgets: Approved staff-adjusted budgets for electric and gas conservation for 2026 and 2027; commissioners noted NSPW’s conservation programs are effective.
- Demand-response study: Commissioners directed NSPW to file its system-wide flexibility/demand-response study (rather than a separate Wisconsin-only study), declining to authorize additional study funding in this docket.
- Wildfire mitigation and tree trimming: The commission approved a modified reporting requirement (narrowed to selected feeder-level metrics and vegetation-management scheduling details) and declined to require refunds or credits for unspent tree-trimming or wildfire-mitigation funds, citing budget-to-actual normal variances.
- Fuel and capacity sales: Commissioners accepted staff’s MISO-capacity-sales adjustment to fuel-cost treatment while discussing future options such as escrow treatment for capacity revenues.
- Financial parameters: The commission retained the authorized return on equity at 9.8% and a regulatory common-equity layer at about 52.47% (financial equity close to 52.5%), producing a weighted-average cost of capital of roughly 7.54% (2026) and 7.56% (2027). The commissioners also maintained the earnings-sharing mechanism (ESM).
- Customer programs and tariffs: The commission approved several program closures and tariff updates, including closing some low-participation residential EV pilots and moving certain multi-year contracts to month-to-month terms with sustained advisory services; it also directed a new loss study to be performed in the next rate case to incorporate AMI data.

Votes and next steps: Commissioner Nieto moved to approve the NSPW rate request as discussed; Commissioner Hawkins seconded. The motion passed unanimously. The commission directed staff to draft a final order incorporating the decision-matrix outcomes, updated calculations and standard conditions and to present it to the commissioners for final review in an open meeting before issuance.

Attribution: Statements, motions and numerical figures are drawn from the Nov. 6, 2025 open meeting of the Public Service Commission (docket 4220-UR-127).