The Public Service Commission of Wisconsin voted Nov. 20 to approve Wisconsin Electric Power Company's 2026 monitored fuel cost plan, adopting commission staff's audited estimate and maintaining an adjustment that excludes certain natural-gas co-firing costs at the Elm Road plant.

Commissioner Neach, who led the discussion, said the utility filed monitored fuel costs for 2026 at $43.42 per megawatt-hour but that staff's audit, after twelve adjustments, revised the estimate to $45.24 per megawatt-hour, a 4.57% increase over the 2025 estimate. Neach said staff's adjustments increased the applicant's filed plan by nearly $43 million overall, and identified adjustment number 12 as the lone contested item.

"Adjustment number 12 reflects the removal of all gas co-firing and related demand charges from the modeling of the Elm Road and Weston coal units," Neach said, summarizing the contested issue. She told colleagues that the contested portion tied to the Elm Road units amounted to $9,763,000 and that the total adjustment reduced monitored fuel costs by $10,353,000.

Staff argued the proposed co-firing testing lacked sufficient substantiation in the record'no detailed plans, schedules, or quantitative analysis showing why the expense should be included in 2026 rates. Neach and other commissioners noted the commission had not authorized a conversion to full natural-gas fuel flexibility at Elm Road and said the commission generally does not allow recovery of costs that rely on anticipated future commission approvals.

Chair Strand said she agreed with staff's approach and the need for strong justification in the record before authorizing rate recovery. "I didn't see enough to demonstrate the operational need for doing the co-firing at ERGs in 2026," Strand said.

With commissioners aligned on maintaining staff's adjustment (alternative 1), Speaker 3 moved to approve the WEPCO 2026 fuel cost plan consistent with the discussion; the motion was seconded and approved by voice vote. The commission noted that next year's reconciliation (the true-up) will compare the estimate to actual costs and adjust customer bills accordingly.

The commission recorded the approval in docket 6630ER107. The order reflects staff's audited monitored cost estimate and excludes the contested Elm Road co-firing modeling and demand charges from the 2026 monitored fuel costs.