Electric Costs to Increase

Due to a number of contributing factors, New Holstein Utilities' customers should expect their electric costs to increase over the next several months. The changes in the electric costs will occur in the fuel cost adjustment and not in the base electric rate. In other words, the less electricity that you use, the lower the adjustment will be to your account.

The rising electric costs are primarily due to proposed rate increases from We Energies and Alliant Energy to our wholesale power provider, Wisconsin Public Power Inc. (WPPI). The proposed rate increases have been filed with the Federal Energy Regulatory Commission (FERC). The proposed rate increases are being contested at the federal level by WPPI. If needed, a true-up of the actual rates will go into effect after the litigation has been completed.

In addition to the proposed rate increases by We Energies and Alliant Energy, other factors that are driving up wholesale electric costs include:

• We Energies was forced to run more expensive power generation units and to purchase additional, higher-priced electricity this spring to compensate for planned outages.
• WPPI's Boswell coal plant experienced unexpected equipment malfunction this spring.
• Higher natural gas prices for using peaking plants to generate electricity.
• Electric demand continues to outpace added generation.
• Railroad congestion has increased fuel-delivery costs to coal-fired power plants. It is unclear at this time how or if the rail congestion will be resolved.
• Transmission costs in Wisconsin are rising, reflecting the extensive construction program that currently is taking place in Wisconsin.

We encourage our customers to use energy efficient products and conserve electric use where ever possible. In an effort to assist you in managing your utility costs, we have staff available to answer any questions that you may have to use electricity wisely. There are many helpful tips available on our web site. We can also provide you with one of our no-cost/low-cost Energy Saving Tips booklets. Please contact us if we can assist you.