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125 W. Main Street Sun Prairie, WI 53590   608.837.5500

Electric Rate Increase

Sun Prairie Utilities has filed an application with the Public Service Commission of Wisconsin (PSC) to increase electric rates. The adjustment has been requested in order to cover costs associated with constructing the new Westside Substation and upgrades to the existing Bird Street Substation.  The requested adjustment is also to cover inflationary increases in operational and maintenance expenses and costs associated with maintaining the reliability of the electric distribution system.  

After review, Commission staff proposed an increase in rates of $320,555, or 1.15%.  The actual change to individual customers will vary with electricity usage, class of service and ultimate rates authorized by the Commission.  The average Residential customer, using 642 kWh per month, is likely to see an increase of $2.12 per month.

The new rates, effective July 2, 2016, adjusts  the way SPU recovers fixed costs for our local energy infrastructure, including poles, lines, equipment and maintenance. Historically, fixed costs have been partially recovered through the fixed Customer Charge, and the rest through the energy charges on a customer's bill (on a per kWh basis). The new electric rates approved from the PSC move more of the appropriate fixed costs into the fixed Customer Charge. The new rate structure more accurately aligns the charges and the costs, providing a more equitable environment to all customers.

Although the fixed monthly Customer Charge will increase from $7.00 to $11.75, the energy charge (per kWh) will decrease from $.1036 to $.1005 per kWh. Because a greater portion of the monthly electric bill will now be collected under the fixed Customer Charge, the portion of the bill  that is now collected through the variable (kWh) charge is now smaller than it would have been under our old rate structure.

ESTIMATED IMPACT FOR RESIDENTIAL SERVICE(RG-1) CUSTOMERS

    Previous Rates prior to 7-2-16     New Rates after 7-2-16  
Customer Usage Customer Charge kWh Energy Rate(+PCAC) Total Bill Customer Charge kWh Energy Rate (+PCAC) Total Bill
250 kWh/ month $7.00 $26.16 $33.15 $11.75 $25.13 $36.88
642 kWh/ month $7.00 $67.15 $74.15 $11.75 $64.52 $76.27
1000 kWh/month $7.00 $104.60 $111.60 $11.75 $100.50 $112.25

 

 

 


Posted on Wednesday, May 11, 2016

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