We Energies is waging a high-stakes war against its solar customers as it seeks to jack up the cost of going solar in Wisconsin.
We Energies is doing so in the name of “fairness,” claiming that solar system owners don’t pay for their fair share of the cost of using the electricity grid.
But We Energies’ own data indicates otherwise.
In fact, customers with solar systems actually benefit We Energies.
According to a 2009 study commissioned by We Energies and conducted by Clean Power Research, most of the savings is tied to solar users’ ability to generate their own energy, their contribution to We Energies’ renewable portfolio standard obligations, and their use as a hedge against future fuel price uncertainty.
The estimated value of a solar system over that system’s 30-year life was approximately $0.15 per kilowatt hour, the study found.
The study surfaced in We Energies’ pending rate case before the state Public Service Commission (PSC).
Bryan Miller, co-chair of The Alliance for Solar Choice, a national solar advocacy group, said he’s never seen a piece of evidence so clearly rebut a utility’s justification for a rate hike.
“This is by far the most outrageous request from a utility in the country, because the only evidence that they have submitted directly contradicts their claim,” Miller told the Shepherd. “It’s unbelievable that they are pursuing this. It just shows the extreme frivolity of their request before the commission. It’s the most frivolous case in the country.”
Despite We Energies’ claims that solar system owners are hurting other ratepayers, “the study actually shows that solar customers are subsidizing everyone else,” Miller said.
We Energies spokeswoman Jessica Williamson said that the Clean Power Research study wasn’t relevant anymore, since it was conducted in 2009. She said a disclaimer in the report—recommending that We Energies “reassess value as economic factors change”—casts doubts on its validity in 2014.
“This report is five years old,” Williamson said.
She said she didn’t know if We Energies has conducted a follow-up study to assess solar customers’ current impact on the utility.
‘Monopolists Don’t Like Competition’
So why would We Energies advocate for a rate hike that seemingly doesn’t benefit it?
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To shut down competition from its solar customers, Miller said, even though they comprise less than 1% of the utility’s generation. But even that small minority appears to be a threat to We Energies.
“Monopolists don’t like competition,” Miller said. “This is one of the largest monopolies in the country and they’re seeking to become even bigger in their merger [with Integrys Energy Group]. When you’re a monopoly, you don’t think about offering choice and competition to your customers. You think about protecting and expanding your monopoly. And that’s what the monopolist executives at We Energies are doing.”
We Energies’ rate request is before the state Public Service Commission, which is helmed by two appointees of Gov. Scott Walker, a Republican, and one member appointed by former Gov. Jim Doyle, a Democrat.
It’s seeking to increase the monthly fixed charges for all of its customers, which would penalize those who are energy efficient. It would also add new penalties on its customers who generate their own power through solar, wind or biogas systems. We Energies recently amended its request to grandfather in its current solar customers for 10 years.
Public comment on the case ended on Tuesday, but the PSC will hold Milwaukee hearings on Wednesday at 2 p.m. and 6 p.m. at the Wilson Senior Center, 2601 W. Howard Ave. A decision is expected in December.
Miller said that similar attacks on solar have failed in 21 states around the country, including recent cases in solidly conservative states such as Mississippi and Utah.
“In every state, these attempts to eliminate competition have been rejected,” Miller said. “But we haven’t seen anything this outrageous, this frivolous, where a utility has asked for a change that directly contradicts its own study.”
