We Energies’ rates were not popular with ratepayers, even before the rates’ full impact kicked in this month after some cushioning credits expired, according to public comments filed with the Public Service Commission.
And the utility’s request for another 1.4% hike — the fourth sought or received in 2010 — has them steaming.
(Meanwhile, We has just declared a huge, 30% increase in its shareholder dividend and two-for-one stock split, according to the JS.)
“The question I wish to raise to the Public Service Commission regarding the WE Energies rate increase is: “What measures has WE Energies taken to reduce its internal business expenses such as staff salaries, benefits, pensions, etc. in addition to payments to shareowners of the company?” wrote Terrence Bolda, of Menomonee Falls. “Since I moved back to Wisconsin in 1988, I have never heard or read about any staff layoffs, pay freezes or reductions, pension reductions or other measures taken to reduce the cost of doing business. It seems that the utility is immune from these measures when everyone else (expect government) has been forced to take them. I request that you first demand WE Energies to do this before approving a rate increase of any kind.”
“Please do not allow this rate increase,” wrote Public Busier, of Salem. “We are hurting in Wisconsin and this increase will put even more of a burden on us. Please listen and help the people you serve.”
“I would like to file a complaint against WE Energies raising their rates,” wrote Suzanne Derge, of Neosho. “I am paying an average of $400. a month for electricity to my home and barn.This is not including the heat, just for electricity!!! Some months it has gotten as high as $500!!! This is ridiculous. We just can’t afford an increase. I used to be able to heat my old house with electrical heat and budgeted $165 (that was just 13 years ago).”
The comments were filed two cases pending before the Public Service Commission. In one, We Energies argues that its fuel rates went up more than expected, but did not seek a rate increase for 2010 beyond the total increase of $146.3 million it already won for the year. In the other, We Energies asks for a 1.4% rate increase to bring in another $38.4 million in 2011.
The comments show that many people from all over the We Energies service area are just fed up with handing money over to the utility. The Citizens Utility Board also is opposed to the PSC granting the full rate increase.
“More than 50 WEPCO customers filed comments in this docket; all of them opposed to the rate increase request, CUB said in a brief.
“Of course, few people are happy when utility rates increase, but that does not mean that those customers’ concerns should be dismissed,” the agency continued. “The difficulty in addressing the comments in this case is that those cases are confined to fuel costs where potentially offsetting decreases in other areas of utility operation are not examined.”
CUB is a member-supported, nonprofit organization that represents residential, farm, and small business customers of electric, natural gas, and telecommunication utilities before the Legislature, regulatory agencies, and the courts. Full disclosure: I am on the CUB board. This blog, though, is independent and CUB does not vet its contents.
“We Energies is a company that has a legal monopoly and never suffers unprofitable years,” wrote C. Ziffer, of Union Grove. “Its management is well paid already — astonishingly so to me, a professional who makes less than $40,000 a year. These rate increases ARE a hardship to people like me. In good conscience, if you do TRULY serve the public, DO NOT approve their request for a rate increase. If they truly need more money, they should pay the CEO less than the millions he currently makes.”
“Has WE ever attempted to cut back on expenses?” wrote Cheryl Kellerhals, of Kenosha. “Why do they advertise on the radio? We do not have a choice in our utility provider so there is absolutely no reason for them to advertise. How about some salary freezes for top level executives? The people subjected to WE’s outrageous rates have not received salary increases, salary bonuses, ESOPs, increased dividend income; some people are lucky to even have their job. Yet WE continues to cry about needing more of our money. For What? WE needs to cut back on expenses like the rest of us; better known as budgeting.”
“Please explain to the public how WE Engeries can report a huge record profit for 2009, yet you just granted them 2 increases this year,” wrote Linda Pfeiffer, of New Berlin. “Senior citizens did not get a SS increase this year. Many Seniors have frozen pensions – ie: what you get when you retire is fixed for life. Unemployed people are struggling to just survive – the working people are struggling with many other problems. YET – the President of WE Engeries had a pay that increased by 23% and says it is not paid by rate payers. This was donated by who? If the company has a record profit – and the President has a huge rate increase in bonuses – WHY was it necessary to raise rates?”
“I worked in construction for 45 years before I retired and over the years I feel the utility should have an efficiency review,” wrote Jack Brody. ” They send out two truck, six men to work on a transformer on a pole. Two of the men actually do the work while the other four sit in the truck and drink coffee with the engine running. Before you think of giving them anymore raises you should ask them about this.”