Sponsor
Alderman Kaplan
Title
Changes in Electric Rates Proposed by WE Energies
This resolution expresses the City’s concern that WE Energies’ 2015/16 rate proposal will cause significant environmental and economic damage to the state by discouraging the development of alternative, renewable sources of electricity generation and perpetuating Wisconsin’s unhealthy dependence on fossil fuels.
WHEREAS, solar-powered energy generation shows signs of renewed vitality as evidenced by the fact that a new solar power facility was installed every 4 minutes in the United States during 2013; and
WHEREAS, the number of solar power projects is expected to increase 30-fold between 2010 and 2016 as a result of falling prices and improved technology to the point that by 2016 roof-top solar panels may provide 1/3 of the electricity generated by today’s nuclear power plants; and
WHEREAS, other states have reduced the barriers of entry and made it easier for customers to supplement their electrical power needs with solar-power by allowing customers to lease solar panels rather than buying them outright, and WE Energies should support a bill allowing such lease programs if introduced as expected during the 2015 session of the Wisconsin legislature; and
WHEREAS, WE Energies’ 2015/16 rate proposal to specifically bar customers from leasing solar power systems will hamper and slow the development of solar-power electricity generation; and
WHEREAS, WE Energies’ 2015/16 rate proposal may be an effort to better align rates with actual electricity transmission costs, the effect of increasing the flat rate 74% from $9.20 per month to $16.00 while reducing per kilowatt use rates will be to lengthen the payback customers can expect from investments in solar or other alternative, renewable electricity generation sources which will likely discourage customers from making such investments; and
WHEREAS, WE Energies’ 2015/16 rate proposed reduction in payback rates for electricity purchased by the utility from customers who have invested in solar power or other alternative sources to generate their own electricity will repress competition and discourage development of alternatives to the utility’s fossil fuel-generated electricity; and
WHEREAS, WE Energies 2015/16 rate proposal reduces the rate the utility pays customers to buy back electricity generated by customers through solar power or other alternative sources from 14 cents to 3-5 cents per kilowatt hour; and
WHEREAS, this proposed payback rate deduction reduces the savings to customers for using alternative energy sources by 64% to 79%, effectively tripling or quadrupling payback periods for customer investments in alternative electric power generation and so acts as a disincentive for consumers to invest in alternative energy to reduce reliance on fossil fuel energy sources; and
WHEREAS, WE Energies’ 2015/16 rate proposal further burdens customers using alternative electricity generation systems, lengthens investment payback and disincentives customers interested in developing alternative electrical-power sources by imposing an additional “capacity” charge of $3.80 per kilowatt per month on customers alternative electricity generation system’s capacity; and
WHEREAS, the overall impact of WE Energies’ 2015/16 rate proposal will discourage and penalize customers from installing solar power or other alternative, renewable electricity generation sources to reduce society’s dependence on the fossil fuels used by WE Energies for electricity generation; and
WHEREAS, WE Energies discouragement of the use of solar power and other alternative, renewable electricity generation sources to substitute for the nation’s unhealthy dependence on fossil fuels is not only environmentally and socially irresponsible, but threatens to seriously undermine Wisconsin’s solar and alternative fuels industry.
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Racine, that the City of Racine expresses its concern that WE Energies’ 2015/16 rate proposal before the Wisconsin Public Service Commission will cause significant environmental and economic damage to the state by discouraging the development of alternative, renewable sources of electricity generation and perpetuating the state’s unhealthy dependence on fossil fuels; and,
Fiscal Note: N/A