Public Service Commission approves acquisition of Dawn Harvest solar and battery project with tax‑credit reporting condition

The Public Service Commission voted March 12, 2026 to approve a joint application to acquire the Dawn Harvest 150‑megawatt solar energy facility and associated 50‑megawatt battery storage system, adding a reporting condition requiring applicants to notify the commission within 30 days of any change in the status of federal tax credits.

Chairperson Strand opened the discussion of docket 5BS281 by describing the project and the applicants and by framing the legal standard that would govern the commission’s review. "Modeling exercises are akin to educated guessing," Strand said, stressing that modeling informs but does not control the commission’s judgment.

Why it matters: The acquisition transfers ownership stakes in a utility‑scale renewable and storage asset that commissioners said helps meet decarbonization and capacity‑planning goals while raising questions about cost allocation and reliance on federal tax incentives. The commission added a condition requiring prompt notice when federal tax‑credit eligibility or status changes and stated that the failure to realize claimed federal tax credits should not be considered unanticipated for future prudency or rate‑recovery review.

What the commission reviewed: Commissioners reviewed modeling and sensitivity analyses prepared because the transaction would transfer the project into public‑utility ownership (a different review than the merchant CPCN proceeding). Strand summarized modeling conclusions for the three applicants: the project appears in Webco’s least‑cost expansion plan in many scenarios; Pub Service’s modeling consistently selected the project; and MG&E’s results showed benefits in many but not all sensitivities. Strand also noted the application asked to acquire the assets at $337.2 million for the solar facilities and $105.8 million for the battery facilities (excluding AFUDC), and that the applicants requested approval to acquire the project at up to 110% of estimated acquisition cost, a request the commission declined to endorse.

Commissioners’ positions: Strand said the record and staff modeling supported approval subject to conditions. Commissioner Neto, Commissioner Hawkins and Commissioner Rand said they were largely aligned with Strand on the three acquisition approvals but pressed for tighter reporting and protections tied to federal tax credits. Hawkins and Neto proposed a reporting condition requiring applicants to notify the commission within 30 days of learning of any change in status of federal tax credits; the commissioners also agreed language that a failure to realize claimed federal tax credits should not be treated as an "unanticipated" event in future proceedings. Commissioner Rand raised detailed questions about modeling assumptions (resource accreditation, how wind and solar degradation were modeled, and the absence of PPA market testing) and urged continued scrutiny in related proceedings.

Action taken: A commissioner moved and a second was given to approve the acquisitions consistent with the discussion; the motion passed by voice vote. The commission adopted staff’s proposed order conditions, modified order condition two to require applicants to submit their respective proposed accounting entries and added the 30‑day tax‑credit notification requirement and the clause stating failure to realize claimed federal tax credits should not be considered unanticipated.

What’s next: The commission’s order will include the technical reporting requirements and the added tax‑credit notification directive, and future rate‑case proceedings will examine whether and how changes in tax‑credit realization affect recoverability and prudency determinations.

Exact legal citation noted in the discussion: Wis. Stat. § 196.49 (statutory criteria for certification and acquisitions).