Wisconsin Utility To Give Refund

Janice Mathis, a spokeswoman for the Madison utility, said the latest refund filing expands upon a March 2002 request to refund $3.6 million for the 2001 costs. As part of the regulatory process, WPL was asked to change its accounting methods for power purchased from the RockGen plant.

"We were looking at the cost treatment of the purchased power contracts," Mathis said. "It's part of the regulatory process, and that accounts for the time lag."

In addition, a dispute with a railroad over the transportation charges for coal was resolved in WPL's favor, resulting in lower fuel costs. The costs in question also were from 2001.

Annemarie Newman, a spokeswoman for the PSC, said the company's latest filing appears to comply with the agency's orders.

The one-time $7.6 million refund would reduce the monthly bill of an average electric customer by $5.62 including interest, Mathis said. The utility's typical electric customer uses 600 kilowatt-hours per month and pays $52.04.

Newman said the PSC will study the company's latest filing, and could issue a decision in a month or so.

"They say that their refund would be in customer bills starting in March," Newman said. "I don't know that the commission will be able to decide that quickly, but we will expedite it."

Meanwhile, the PSC also is studying an overall rate increase filed by the company. The plan would include an $83 million or 12.7 per cent increase for electric operations and a $13 million or 16.8 per cent increase for natural gas.