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PSC approves Kaukauna Utilities rate adjustment, adopts staff recommendations on amortization and tariffs
Summary
The commission approved the City of Kaukauna's electric rate adjustment (docket 2800ER110), adopting staff's audit adjustments (staff recommended $1.55M/2.77%; utility requested $1.67M/3.0%), endorsing a five-year amortization of a $1.45M deferred revenue item, declining carrying costs, and directing tariff clarifications including a $17 NSF charge methodology.
The Public Service Commission on April 9 approved the City of Kaukauna's requested adjustment to its electric rates, resolving several contested issues including amortization of deferred Elm Street combustion-turbine capacity-sale revenue, the treatment of carrying costs, and tariff simplifications.
Commissioner Nieto led the panel's review of docket 2800ER110. Kaukauna initially sought a 4.07% increase; staff audited the request and recommended a revenue increase of $1,550,000 (2.77%), while Kaukauna proposed $1,670,000 (3.0%). The sole contested difference between the staff audit and the utility's request was the amortization period and carrying-cost treatment for proceeds from the Elm Street combustion turbine capacity sale, which staff identified as a deferred amount inadvertently excluded from prior rate calculations.
On that issue, Commissioner Nieto said returning the $1,450,000 at issue over a five-year amortization period was reasonable and would restore customers promptly; she and colleagues agreed carrying costs should not be applied in this case. "At a five-year amortization schedule, I also did not find it necessary or in the public interest to include carrying costs in this specific case," Nieto said.
The commission adopted staff's recommended rate-of-return calculation (staff: 6.4%) and selected an approach to cost-of-service studies that relies on a range of models rather than adopting a single method in this docket (alt 2), noting methodological disagreements in the record and recommending further review in a generic or stand-alone docket if needed.
On tariff items, the commission approved staff's proposed revenue allocation and preferred staff's rate-design proposal for implementation ease and alignment with cost-of-service results. For non-sufficient funds (NSF) charges the commission adopted an approach that sets the NSF fee at administrative cost plus typical financial-institution fees, rounded to the nearest whole dollar; commissioners cited a $17 NSF charge under the adopted methodology but noted combined water/electric utilities (like Kaukauna) would still bill the higher of the two existing charges where applicable (Kaukauna's combined customers would remain subject to the $25 water NSF charge until any water tariff change).
The commission also reviewed the CTC rider and supported staff's approach to simplifying customer class listings while preserving class-level details via footnotes or markups so future changes would not require separate proceedings.
Commissioner Nieto moved, and a colleague seconded, a motion to approve Kaukauna's request consistent with the commission's discussion; the motion passed with commissioners voting in favor.
What's next: the order implements the adopted amortization and tariff language; staff is directed to incorporate instructions on NSF methodology and tariff markups in future cases and the utility may submit any separate docket if it seeks deferred-accounting relief for financing costs or depreciation.
