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Published - Tuesday, November 04, 2008

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Proposed Xcel Energy rate increase disputed


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At public hearings Monday, the Public Service Commission of Wisconsin was asked to reject or scale back a proposed electric rate increase for Xcel Energy.

Xcel rate hikes threaten the future of a Park Falls, Wis., paper mill in northern Wisconsin that closed in 2006 and reopened later that year under new ownership, some speakers said in Eau Claire during the hearing that PSC staff members held Monday afternoon by videoconference. No one spoke at the Madison or University of Wisconsin-La Crosse hearing sites during the afternoon session. Another hearing was held at 6:30 p.m.
Recent decreases in fuel prices are a major reason why any increase likely will be smaller than the one Xcel asked for nearly three months ago. The PSC staff is recommending to the commission an overall increase of 3 percent or about $16 million a year in electric revenue.

On Aug. 1, Xcel asked the PSC for an overall increase of 8.6 percent or $47.1 million a year in electric revenue. It said while the average residential customer would see a 7.9 percent increase, commercial and industrial customers would see increases ranging from 7 percent to 10 percent.

Xcel said the increase is needed because of ongoing investments in cleaner sources of energy, transmission lines, and rising costs of fuel and purchased power.

“The filing was made at a time when gas prices and fuel and purchased power prices were much higher than they are today,” Don Rieck, Xcel Energy of Wisconsin director of regulatory and government affairs, said during Monday afternoon’s hearing. “If we were to re-do our filing today, we would be asking for significantly less.” Fuel and purchased power costs will be updated Nov. 15, he said.

Last year, the company asked for a 14.3 percent in electric rates. In December, the commission instead approved an overall 8.17 percent increase, which took effect Jan. 9.

“Xcel’s proposed rate increase would present a continued hardship for residents in northern Wisconsin as a rate increase was introduced only a year ago,” Park Falls Mayor Thomas Ratzlaff said during the afternoon hearing.

He and representatives of the Park Falls paper mill argued a rate increase would hurt that business, which has 307 employees. Ratzlaff said he fears another rate increase could cause it to lose customers and eventually go out of business again.

”We don’t undertake a rate increase lightly,” Karl Hoesly, manager of regulatory affairs for Xcel in Wisconsin, said in an interview. “But in order for us to safely and reliably provide energy to our customers, we have to purchase the fuel and build certain capital projects to meet the needs of our customers.”
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Big Spender wrote on Nov 4, 2008 6:17 PM:

" It's not too late to vote Obama! We need your help to stop the bleeding:

"Dell freezes 4Q hiring, suggests unpaid time off"

http://ap.google.com/article/ALeqM5gfFtS7eTa-MKP8BCVCGXQm378Q2gD948D09O0 "

lax8751 wrote on Nov 4, 2008 5:33 PM:

" I emailed the following question to Excel; haven't heard anything yet: Why didn't Mr. Hoesly mention the $3.7 million salary and stock options of Excel's CEO? How about the millions Excel spends on lobbying? Excel has spent, on average, nearly $3 million/yr. to persuade regulators. " "

correctthinking wrote on Nov 4, 2008 4:33 PM:

" Too bad some of you can't stay on topic. Xcel got beat up good last year when they tried a double-digit rate increase, again this year, Xcel needs to look at some of the property they are sitting on and sell assets they are not, and likely have no intention of ever using. They are sitting on 4000 acres north of Durand in southern Dunn County that has been sitting there for over 30 YEARS, they toyed with the idea of building a coal fired plant there two years ago, but didn't have the guts to do it. With the nuclear moratorium finally, hopefully going away, perhaps they can get to building. If they are not going to build anything on it, hydro, nuclear, wind, then SELL the LAND.....NOW!! Don't keep jackin' the rates, then get all snotty when people, especially our fixed income seniors can't pay for it!!! "

acj wrote on Nov 4, 2008 12:52 PM:

" why is it , all us little people take it in the pocketbook. when the big shots suck out big bucks for doing a rotten job. thats proven by the fact they cant operate within the limits of thier budget. we the little beings have to cut to bare bones and freeze our buns off because of those fat cats who have no sense of reality. "

lax8751 wrote on Nov 4, 2008 11:58 AM:

" Diane: Your comments hit home. Although I work, my Mother is barely getting by. I know it's tough, but I honestly think you/we will be better off with Obama. If it's any consolation, I read some place that assistance for energy is supposed to be increased by nearly double. "

Diane wrote on Nov 4, 2008 11:50 AM:

" To All: Energy rate costs up 8 to 9%. Groceries are up at Festival significantly even though gasoline prices have decreased. A certain flavor of soup I like is $1.34 at Walmart and $1.99 at Festival. Please shop wisely, especially for your weekly or monthly shopping. Walmart and Woodmans are good alternatives. Real Estate taxes will be up about 4% with increased valuation on many homes despite a decrease market on sale of new or currently owned homes. Car prices are up despite a decrease of sales by 40%. Senior Preferred's best (Elite D) plan has gone up very slightly and they have added vision exams and a $300 credit for glasses yearly. I give them credit for holding costs down. And, if Obama wins, you can guarantee taxes will be up to pay for all he promises. Our middle class is shrinking and will continue. "

nana3 wrote on Nov 4, 2008 9:21 AM:

" When will we see 8-10% yearly increases on our social security checks? We have worked all of our lives, now when we live on a fixed income we are bombarded with constant increases especially fuel and taxes, which makes the price of everything else higher. We are supposed to be riding the merry-go-round, not the roller coaster. "

lax8751 wrote on Nov 4, 2008 8:19 AM:

" We don’t undertake a rate increase lightly,” Karl Hoesly, manager of regulatory affairs for Xcel in Wisconsin, said in an interview. “But in order for us to safely and reliably provide energy to our customers, we have to purchase the fuel and build certain capital projects to meet the needs of our customers.”...... Why didn't Mr. Hoesly mention the $3.7 million salary and stock options of Excel's CEO? How about the millions Excel spends on lobbying? Excel has spent, on average, nearly $3 million/yr. to persuade regulators. "

Big Spender wrote on Nov 4, 2008 2:39 AM:

" Who really bungled economics, energy, Iraq, Katrina,...????

12 of last 14 years: Republican Congress.

Last 8 years: Republican presidency.

So, this oughtn't to surprise you:

"Circuit City confirms massive store closings, layoffs"

http://www.betanews.com/article/Circuit_City_confirms_massive_store_closings_layoffs/1225728602

"More GM Layoffs"

http://www.wifr.com/home/headlines/31145729.html

"Martinrea employees are latest casualties in Ford slowdown"

http://www.bizjournals.com/louisville/stories/2008/10/27/story1.html

"TechCrunch Layoff Tracker"

"List of Layoffs
Total Layoffs: 122
Total Employees: 41,562"

http://www.techcrunch.com/layoffs/

Vote! "

ShirleyP wrote on Nov 4, 2008 2:22 AM:

" I am so tired of this! Last year the temp on my furnace was set at 51, and I used 40% less energy, but still paid more than the year before. I have firewood for heat also. What more do they want?
Will our raises cover the higher costs? Will we be OK with the fact that our Mom or Grandma has her heat at 42? "

Big Spender wrote on Nov 4, 2008 2:02 AM:

" Tired of getting shafted on your energy bill?...send them a message at the polls today! Ask your friends to vote!

Polls ain't votes, projections ain't votes and pundits don't set elections: "With polls showing Democrat Barack Obama enjoying a double-digit lead in the state, he and Republican John McCain were campaigning elsewhere the day before the election."

It's common for polls (and projections) to fall very wide of the mark. No one has a crystal ball. Then there's the 'Bradley effect' that says that folks lie to pollsters about their real intent.

Where the polls happen to be correct, the margin of victory sets whether your side has a true mandate or not.

Imagine how depressing four more years of Republican misrule (local, state and federal) will be if all y'all don't get out to vote once again. Take America back! "


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