MADISON - The Wisconsin Public Service Commission granted Brodhead Water & Light Commission a 5.61-percent increase in electric rates Monday, the utility's first since 2005.
The utility sought the increase in January after sustaining deficits the past two years totaling $114,742. It would have incurred a $66,426 deficit this year without the rate hike, according to the PSC order.
The new rates took effect Thursday, June 14 and will show up on bills mailed in early August, said Jeff Peterson, utility supervisor.
Under the new rates, typical residential customers will pay $6.03 more per month, based on 751 kilowatt hours; that will boost their monthly bill from $86.09 to $92.12
The utility will earn an additional $192,042 annually under the new rates, boosting estimated net operating revenue to $3.68 million and net income to $127,616. This year, operating expenses are estimated at $3.56 million.
Net income will yield a 6 percent return on its infrastructure investment. Without the new rates, the utility's return would have been a negative 1.99 percent, according to the order.
The order also establishes new time-of-day rates for residential customer, providing a financial incentive to shift some power consumption generally to evening hours when rates will be lower, Peterson said.
Larger industrial and commercial customers have previously been offered time-of-day rates, he said. The rate order also decreases off-peak rates from 14 to 12 hours per day, which matches the peak periods charged by the utility's power supplier, WPPI Energy.
Annual sales of electricity slumped from $3.43 million in 2008 to $2.98 million in 2009 and rebounded to an estimated $3.45 million last year.
The utility sought the increase in January after sustaining deficits the past two years totaling $114,742. It would have incurred a $66,426 deficit this year without the rate hike, according to the PSC order.
The new rates took effect Thursday, June 14 and will show up on bills mailed in early August, said Jeff Peterson, utility supervisor.
Under the new rates, typical residential customers will pay $6.03 more per month, based on 751 kilowatt hours; that will boost their monthly bill from $86.09 to $92.12
The utility will earn an additional $192,042 annually under the new rates, boosting estimated net operating revenue to $3.68 million and net income to $127,616. This year, operating expenses are estimated at $3.56 million.
Net income will yield a 6 percent return on its infrastructure investment. Without the new rates, the utility's return would have been a negative 1.99 percent, according to the order.
The order also establishes new time-of-day rates for residential customer, providing a financial incentive to shift some power consumption generally to evening hours when rates will be lower, Peterson said.
Larger industrial and commercial customers have previously been offered time-of-day rates, he said. The rate order also decreases off-peak rates from 14 to 12 hours per day, which matches the peak periods charged by the utility's power supplier, WPPI Energy.
Annual sales of electricity slumped from $3.43 million in 2008 to $2.98 million in 2009 and rebounded to an estimated $3.45 million last year.