WISCONSIN RAPIDS, WI (WSAU) — A Wisconsin Rapids utility has been reprimanded for spending $1.262 million without prior approval.
USA Today Wisconsin is reporting that Wisconsin Rapids Water Works and Lighting Commision is receiving heat from the Public Service Commission for spending money to upgrade a treatment plant without prior approval. It’s still unknown if PSC will let the utility recover the costs of the project for it’s pending rate case.
The PCS order says that the project began in 2014, which changed the iron removal process that was corrosive to a large number of the plant’s controls and equipment. The upgrades saved the utility $221,785 a year. However, the utility didn’t submit construction plans to PSC for prior approval as the cost exceeded 25% of the last year’s annual net income.
The Wisconsin Rapids project exceeded that mark by $364,000 that didn’t obtain prior approval. Which led to the reprimand by PSC which can prohibit the utility recovering the project’s cost in their next rate case.
The utility hired was SEH Inc. and was expected to apply for all approvals. They sent one to the DNR for approval in 2013, but not to PSC. The utility, SEH has submitted 15 construction applications since 2014 to PSC. The staff of PSC has been directed to specifically address the recovery costs associated with the iron treatment system in the pending rate case.
SEH Inc. will have to show reasons to PCS why they should be allowed to recover unauthorized costs. The project was deemed necessary by PSC staff and that the utility didn’t intentionally violate the law to try and serve their customers.
If the cost of the project isn’t recovered by the utility during the rate case, it would result in lower rates to customers and less income to the utility.
