On Monday, 8/30, the PSCW will meet at 10 Central time to discuss two significant rule makings. As previously reported, the Commission is poised to adopt rules on the siting of wind energy systems. The final vote will probably be on Monday. Still up in the air, so to speak, is the significant issue of minimum setbacks. The docket, available at psc.wi.gov, is 1-AC-231.

The Commission is also expected to take final action on new fuel rules. Wisconsin does not allow automatic adjustments of electric rates due to changes in the cost of fuel. Instead, the Commission establishes a price band in the base rate case. If costs fall outside the ban during the test year, the utility may ask for a re-opener limited to the cost of fuel. A significant point of contention with the new draft rules is the requirement that utilities refund earnings above their authorized rate of return as a condition of receiving a rate increase due to extraordinary increases in the cost of fuel. The draft rules are expected to disallow costs previously disallowed in setting the revenue requirement. So, for example, in calculating the utility's earnings the Commission will not allow any expense that was not allowed in calculating the original revenue requirement, even if the expense was legal and within the scope of management prerogative.

UPDATE: The Wisconsin commission voted to issue revised fuel rules. the rules will now be considered by two legislative committees. Commissioner Mark Meyer concurred in issuance but wrote separately to express reservations regarding "excess revenues" provision. Docket 1-AC-224.