When our fuel costs to generate electricity are higher than what can be recovered in our base rates, we ask the Public Service Commission of Wisconsin (PSCW) to consider a fuel-cost adjustment.

The PSCW granted interim permission for We Energies to begin collecting a fuel surcharge adjustment in mid-March. The typical residential customer using 750 kWh per month will see an increase of 2.18 percent. This increase was driven by:

• Costly natural gas-fueled generation. When natural gas prices rise as they have during the 2003 winter months, the price of electricity generated by natural gas facilities also increases. The impacts affect both our own power plant facilities and those power plants from which we purchase power.
• Increased transmission costs. To meet the increase needs of our customers, we often must purchase power from others. The cost of power delivery through transmission lines has increased in recently months.

The PSCW is reviewing our costs and will issue a final decision on the adjustment. The interim increase may be adjusted at that time and we will alert our customers to the adjustment.

Fuel Cost Adjustment Q&A
News Release