Calculation of fuel costs for an electric public utility’s fuel cost plan, the official text

2025 - 2026 LEGISLATURE
LRB-4829/1
EHS:ajk

2025 ASSEMBLY BILL 751
December 8, 2025 - Introduced by Representatives Summerfield, O'Connor, Sortwell, Swearingen and Wittke, cosponsored by Senators Tomczyk and Feyen. Referred to Committee on Energy and Utilities.

An Act to amend 196.20 (4) (c) 1.; to create 196.20 (4) (a) 3. of the statutes; relating to: calculation of fuel costs for an electric public utility’s fuel cost plan.

Analysis by the Legislative Reference Bureau
Under current Public Service Commission administrative code, a public utility must file with PSC a proposed fuel cost plan for a 12-month period as part of an application to open or reopen a general rate case proceeding or as part of a proceeding limited in scope to fuel cost. Current PSC administrative code requires a public utility to calculate fuel cost as the net of the costs and credits during that period for items such as fuel, energy market purchases, energy market sales, renewable resource credits, and emission allowances. If PSC approves a fuel cost plan, it must establish the public utility’s rates in accordance with the approved plan.
Under current law, if an electric public utility has an approved fuel cost plan, PSC must defer any under-collection or over-collection of fuel costs that are outside of the utility’s symmetrical fuel cost annual tolerance for subsequent rate recovery or refund. This bill specifies that fuel costs must be calculated to account for the cost of purchasing and the revenue earned in selling electricity generation capacity that meets the requirements for capacity as established by the Midcontinent Independent System Operator.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Section 1. 196.20 (4) (a) 3. of the statutes is created to read:
196.20 (4) (a) 3. “Midcontinent independent system operation” has the meaning given to “Midwest independent system operator” in s. 196.485 (1) (ds).
Section 2. 196.20 (4) (c) 1. of the statutes is amended to read:
196.20 (4) (c) 1. If an electric public utility has an approved fuel cost plan, the commission shall defer any under-collection or over-collection of fuel costs that are outside of the utility’s symmetrical fuel cost annual tolerance, as established by the commission, for subsequent rate recovery or refund. Fuel costs under this paragraph shall be calculated to account for the cost of purchasing and the revenue earned in selling electricity generation capacity that meets the requirements for capacity as established by the midcontinent independent system operator.
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