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Rate-Making Policy

Eligibility 
Investor-Owned Utility
Rural Electric Cooperative
Utility
Savings Category 
Fuel Cells
Photovoltaics
Program Info
Start Date 

2005

State 
Wisconsin
Program Type 
Generating Facility Rate-Making
Provider 
Public Service Commission of Wisconsin

WI Act 7 states that, when proposing the purchase or construction of an electric generating facility, a utility may "apply to the [WI Public Service Commission] for an order specifying in advance the rate-making principles" that the Public Service Commission will use for "future rate-making proceedings."

The Nuclear Energy Institute highlights that "There is no restriction on the type or the size of electric generating unit for which rate-making principles can be set in advance." Rate-making principles apply to the utility's capital cost recovery, including: (i) price of the facility, (ii) modifications, and/or (iii) improvements. Therefore, a utility can undertake a project with clear expectations for future cost recovery.