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Proc-Type: 2001,MIC-CLEAR
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SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of Date of Report: January 1, 2001 Wisconsin Public Service Corporation Wisconsin 1-03016
39-0715160 700 North Adams Street, P.O. Box 19001, Green Bay, WI 54307-9001 Registrant's telephone number, including area code:
(920)433-1598 Not Applicable Page 1 of 3 Pages
ITEM 5. OTHER EVENTS.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99-1
Wisconsin Public Service Corporation Press Release dated January 2,
2001 announcing increased electric and natural gas rates for 2001.
99-2
Wisconsin Public Service Corporation notice to financial community
dated January 2, 2001 detailing the rate changes described in the press
release attached as Exhibit 99-1 hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
WISCONSIN PUBLIC SERVICE CORPORATION
By: /s/ D. P. Bittner
Date: January 2, 2001 EXHIBIT 99-1 (WISCONSIN PUBLIC SERVICE CORPORATION NEWS RELEASE) Commission Approves 2001 Wisconsin Public Service New residential electric rates will continue to be among Green Bay, WI--
the Securities Exchange Act of 1934
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation)
(Commission File Number) (IRS Employer Identification No.)
(Address of principal executive offices)
(Zip Code)
(Former name or former address, if changed since last report)On January 2, 2001, Wisconsin Public Service Corporation, a utility subsidiary
of WPS Resources Corporation, issued a Press Release announcing the approval of
new electric and natural gas rates which became effective on January 1, 2001.
The new rates were approved by the Public Service Commission of Wisconsin in late
December after review of the company's rate request which was originally filed in
March of 2000. A copy of the press release is attached as Exhibit 99-1 and is
incorporated by reference.
Also on January 2, 2001, Wisconsin Public Service issued a notice to the financial
community providing more information on the rate changes described in the press
release attached as Exhibit 99-1. A copy of the notice to the financial community
is attached as Exhibit 99-2 and is incorporated by reference.
D. P. Bittner
Senior Vice President and Chief Financial Officer
For immediate release:
For more information,
contact:
January 2,
2001
Bill Bourbonnais,
Mgr.-Rates and Economic Evaluation
920-433-1573
Electric and Natural Gas Rates
the lowest of investor-owned utilities in Wisconsin
The new electric rates will result in a monthly bill increase of about $3.31 in 2001 for typical residential customers who use 630 kilowatt-hours of electricity.
Typical residential customers who use 1,000 therms of natural gas annually will see their average monthly bill rise by $0.50 (1.5 percent) in 2001. Public Service cautioned that increased prices paid by the company to provide natural gas are passed along to customers and are in addition to the distribution rate. Those increases have been significant this year.
As part of the approval process, the PSCW audited the company's filing and held a hearing in Madison to allow customers and others to give their views of the request. Public Service had originally asked for an electric increase of 8.9 percent in 2001 and a natural gas increase of 2.1 percent.
The company cited increasing fuel and purchased power costs, electric and gas system reliability improvements, and the costs for customer service programs and system improvements as reasons for the increase.
"We were able to keep electric rates flat or decreasing for most of the early 1990s," said Bill Bourbonnais, Manager-Rates and Economic Evaluation for Public Service. "However, both customer loads and, unfortunately, costs keep rising. The state's electric system has become overburdened over the past few summers, and, we need to continue to make investments to maintain electric reliability for our customers."
He added that, including this latest request, Public Service's overall electric rates remain among the lowest in the region.
Wisconsin Public Service provides natural gas and electricity to more than 400,000 customers in northeast Wisconsin and a small portion of the Upper Peninsula of Michigan.
//END//
EXHIBIT 99-2
(WISCONSIN PUBLIC SERVICE CORPORATION LETTERHEAD)
January 2, 2001
TO MEMBERS OF THE FINANCIAL COMMUNITY
On December 21, 2000 the Public Service Commission of Wisconsin (PSCW) issued an order in the Company's rate case filing made on March 31, 2000 (Docket 6690-UR-112). The Commission and the Company successfully worked together in the audit to limit the issues in this case. The resulting audit adjusted case included updated adjustments that were consistent with the Commission and the Company estimates. Due to the number of intervenors, there were still a large number of contested issues in this case. Of the 80 issues in the technical hearing, 39 were not contested by any party in the case and many of the contested issues were rate design issues. The following are results of this rate case with the dollar amounts expressed in millions:
Item | 2001 |
2002 |
||||
Electric | Percent | Gas | Percent | Electric | Gas | |
Original WPSC 3/31/00 Filing Request |
$44.1 |
8.9 |
$4.9 |
2.1 |
$12.2 |
$3.6 |
PSCW/WPSC Audit Adjusted |
$33.7 |
6.7 |
$4.6 |
1.6 |
- |
- |
PSCW 12/21/00 Order |
$27.2 |
5.4 |
$4.3 |
1.5 |
- |
- |
In the hearings there was approximately $31 million of suggested revenue adjustments at risk. The Company received favorable rulings on all but about $3 million of these adjustments. The Commission changed the Kewaunee Nuclear Power Plant depreciation filed by the Company reducing revenue requirements by $6 million, which will not affect earnings. There were also a number of uncontested revenue adjustments that were ordered by the Commission. The following are the major Commission revenue changes ordered by the Commission:
Items Changes |
Electric |
Gas |
Marketing Costs |
($0.7) |
($0.1) |
Wage Increases in Excess of Inflation |
($0.7) |
($0.2) |
Short Term Variable Play Plan |
($0.7) |
($0.2) |
KNPP Depreciation Rate |
($5.7) |
- |
Nuclear Management Company Costs |
$0.6 |
- |
NYMEX Cost of Gas |
$0.3 |
- |
* Anticipated Coal Cost Reduction |
($0.6) |
- |
* Added Cost of Gas Margin |
$0.5 |
- |
* Union Contract Changes |
($1.0) |
($0.3) |
* Uncontested Issues
Other major issues that were approved by the Commission include a 12.1 percent uncontested ROE and Phase II of the Company's Automatic Meter Reading program. The Commission did not approve an automatic rate case reopener for the second year of the biennial period (2002) but the Commission Chair did suggest that if the Company has good reasons to file a case for 2002, the Commission would entertain that filing.
The rates in this order will be effective on January 1, 2001 and include the following:
Items |
Electric |
Gas |
Rate Base (in millions) |
$714 |
$180 |
Return on Rate Base |
10.3 percent |
10.3 percent |
Weighted Cost of Capital |
9.7 percent |
9.7 percent |
Return on Average Equity |
12.1 percent |
12.1 percent |
Sincerely,
/s/ Daniel P. Bittner
Daniel Bittner
Chief Financial Officer
(920) 433-1463