WPL may seek bigger rate increase; closed factories to affect revenues

From an article by Judy Newman in The Capital Times:

As more factories in southern Wisconsin announce plans to cut production or close, Wisconsin Power & Light is warning state regulators that its revenues next year will fall shorter than anticipated.

The Madison utility company is setting the stage for the possibility of seeking a bigger rate increase in 2010 than the $91.7 million sought in a request filed May 8. WPL now says higher costs and lower revenues could justify asking for an additional $18 million from electricity and natural gas customers, for a total of $109.3 million in rate increases.

No estimates are available yet on how much that could raise the average customer’s monthly bill.

In testimony filed with the state Public Service Commission on Friday, WPL financial analyst Ron Hellweg said he expects sales to industrial customers in 2010 will be 4 percent lower than anticipated less than three months ago.

"Economic conditions in WPL’s service territory have continued to deteriorate to levels worse than those seen in other parts of Wisconsin, the region and the nation," Hellweg wrote.