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Commission directs staff to adopt updated avoided-cost values and a more frequent review process
Summary
The Public Service Commission voted to adopt the 2025 avoided-cost values for use in the 2026 evaluation and directed staff to draft an order to implement a process for updating avoided-costs twice per quad with limited EWG discretion for out-of-schedule updates.
Commissioner Nieto, the delegated commissioner for docket 5FE104, outlined the Energy Evaluation Working Group's recommendation to update avoided-cost values and make the update schedule more responsive to market changes. She told colleagues that "the EWG's annual review of the avoided costs found increases across every single cost category," and argued the commission should use the most current information when reporting program benefits.
Nieto explained these avoided-cost figures—covering electric energy, capacity, transmission and distribution, and natural gas—are central to the commission's Wisconsin-test cost-effectiveness framework. She noted the commission was not being asked to change established methodologies, only to apply approved methods to updated data. Chair Strand and Commissioner Hawkins agreed; Strand said she supported adopting the 2025 avoided costs and favored a process that preserves commission oversight. The commission voted to direct the Division of Digital Access, Consumer and Environmental Affairs to draft an order consistent with that discussion.
