Home » Opinion » How rates are determined

How rates are determined

Clintonville Utility Board member explains process

I would like to clarify several points in regard to the Clintonville utility rates.

The Public Service Commission and only the Public Service Commission sets rates for the city of Clintonville.

The Badger Power Marketing Authority bills both Clintonville and Shawano for electricity. The price is a cost per kilowatt-hour. It is one price for the entire city. It is not broken down by residential, commercial or industrial. That one price is, using the formulas as required by the Public Service Commission, broken down into residential, commercial and industrial bills by the Clintonville Utility. These are the bills that everyone pays.

When needed, Clintonville Utility will contract with a firm to do a rate study about increasing rates. This rate study when completed and approved is sent to the Public Service Commission for their review. The commission, using their models and formulas, may or may not change the requested rate increases. After a public hearing, the commission sets the rates for residential, commercial and industrial.

The Badger Power Marketing Authority has no say in this matter.

Since the industrial base in Clintonville uses over 50 percent of all the electrical power in the city of Clintonville, as a courtesy, the rate study is reviewed with the industrial customers prior to being submitted to the Public Service Commission.

The Clintonville Utility Board includes a city council member, with considerable electrical experience. The member can add to the Utility Board agenda, at any time, a discussion and/or review with the contracted firm, any and all rate structures. There can be discussions at the Clintonville Utility board meetings regarding the impact of residential rates, the methods of developing these rates, how these rates compare the other rates in the area and any suggestions has how to change these rates prior to the study being submitted to the Public Service Commission.

The rate study takes from six months to a year to complete. Residents are invited and are always welcomed to present their views at any and all Utility Board meetings. Please keep in mind that the utility can only recommend to the Public Service Commission. The commission makes the final determination of the rates.

In addition, I would recommend to everyone to try attending council meetings and the utility board meetings.

Jim Supanich
Clintonville
Member of Clintonville Utility Board and Badger Power Marketing Board

Scroll to Top