PSC finds sufficient cause to hear Liberty Grove complaint over Sister Bay sewer rates

Commissioner Nieto told the Public Service Commission on Oct. 16 that there appears to be sufficient cause to proceed to a hearing on the complaint filed March 31, 2025, by the town of Liberty Grove and Liberty Grove Sanitary District No. 1 against the village of Sister Bay (docket 9300SI128). The complaint alleges Sister Bay’s sewer rates are unreasonable and unjustly discriminatory in violation of Wisconsin statute 66.0821(5).

Nieto summarized four claims in the complaint: (1) that the 2025 rate increase is not based on cost of service and is therefore unreasonable; (2) that Sister Bay double‑collected fixed wastewater treatment plant expenses by allocating $108,721 to hauled‑waste customers and also collecting the same amount through fixed charges; (3) that the village over‑collected debt expenses by not properly accounting for revenues from hauled‑waste customers; and (4) that projected revenue collections would produce reserves the complainant says are excessive (the complainant cited forecasts showing wastewater treatment plant reserves of over $4,000,000 by 2030 after a planned $15,000,000 wastewater treatment plant project in 2027).

Nieto said she found sufficient cause on claims 2 and 3 and indicated claim 4 could warrant further fact development; she did not find sufficient cause on the general umbrella claim 1. "I did find sufficient cause on 3 of the 4 claims," Nieto said, noting the preliminary and constrained scope of a sufficient‑cause determination in municipal sewer dockets.

Chairperson Strand and Commissioner Hawkins concurred that the record and contested history between the parties meet the low threshold for sufficient cause and agreed to proceed to a hearing on one or more claims. Strand emphasized the limited nature of the commission’s action: a finding of sufficient cause sends the matter to hearing but is not a determination that rates are unlawful.

Commissioners instructed staff to proceed with a hearing to develop the record on the disputed accounting and revenue issues and to determine whether rates should be adjusted. The motion to determine there is sufficient cause and to set the matter for hearing was seconded and approved by voice vote.