MPSC Authorizes Wisconsin Electric Power Company to Increase Its Electric Rates by $23.5 Million, 45 Percent Below What the Company Requested

Contact: Judy Palnau (517) 241-3323

The Michigan Public Service Commission (MPSC) today authorized Wisconsin Electric Power Company to increase its electric rates by $23,464,513 annually, 45 percent below what the company requested.

The company on Feb. 2 self implemented a rate increase.  As a result of today's order, a residential customer using 500 kilowatt hours per month will see an increase of $6.14 on their monthly bill (over the self-implemented amount).

Wisconsin Electric Power Company on July 2, 2009 filed an application requesting a $42.1 million rate increase.  The final amount approved today ($23.5 million) is 45 percent below what the utility requested and represents an increase of 14.2 percent over the rates set in its previous electric rate case (Case No. U-15500).

A fact sheet with details follows.

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

Wisconsin Electric Power Company

Case No. U-15981

Commission Order Fact Sheet

1. Commission Order Date:  July 1, 2010
2. Revenue Increase Granted:  $23,464,573 (The last rate increase was in Case No. U-15500 in 2008, which was a settlement agreement between parties).
3. Rate of Return on Common Equity:  10.25%
4. Debt to Equity Ratio:  42.63% debt-57.37% common equity
5. Overall Rate of Return:  6.99%
6. Wisconsin Electric Power Company has been directed to file a report on revenues associated with its self-implemented rates on and after Feb. 2, 2010 until July 1, 2010.