CCR2014075-Attachment
PUBLIC SERVICE COMMISSION OF WISCONSIN
Simplified Water Rate Case for the Muskego Water Public Utility, 4005-WQ-104
Waukesha County, Wisconsin
FINAL DECISION
Introduction
On August 19, 2014, the Muskego Water Public Utility (Utility) filed an application for a water
rate increase under Wis. Stat. § 196.193, a Simplified Rate Case (SRC) process that does not require a
hearing. Commission staff reviewed the information submitted by the Utility in support of its
application and determined the water rate increase is justified as requested.
Findings of Fact
1. The revenue increase is calculated by multiplying the Utility’s prior year revenue from
sales of utility service by the 2014 rate increase factor (3.0 percent) set by the Commission.
2. The revenue increase combined with the Utility’s prior year net operating income results
in an overall rate of return that does not exceed 6.6 percent, the Commission’s 2014 established overall
rate of return applicable to a municipally owned water or combined water and sewer public utility.
3. The effective date of the rate increase is not less than 12 months from the effective date
of a previous SRC increase and is not less than 45 days from the date of this application.
4. The Utility’s last rate increase authorized pursuant to a hearing under Wis. Stat. § 196.20
has been in effect for at least a calendar year (i.e., January through December).
5. The Utility has less than 4,000 customers and the total of all prior rate increases granted
since the last hearing under Wis. Stat. § 196.20 does not result in rates that are more than 40 percent
higher than the base rates previously authorized by a hearing under Wis. Stat. § 196.20.
PSC REF#:218743
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Docket 4005-WQ-104
6. The Utility notified all its customers of the proposed rate increase.
Conclusion of Law
1. The Commission has jurisdiction under Wis. Stat. §§ 196.02, 196.193 and 196.39, and
Wis. Admin. Code ch. PSC 185.
2. The Commission has authority under Wis. Stat. § 15.02(4) to delegate to the
Administrator of the Division of Water, Compliance and Consumer Affairs, those functions vested by
law as enumerated above.
Order
1. The Utility shall increase its rates for general service and public fire protection uniformly
by the 3.0 percent rate increase factor.
2. The new rates will be effective October 4, 2014, and will be on file with the Commission
as Amendment 13, provided that the Utility makes a copy of the new rates available to the public before
this date by placing a copy of the new rates at locations where customer payments are accepted, on the
Utility’s Internet site, or in a form and place that is otherwise readily accessible to the public. If a copy
of the new rates is not made available to the public by this date, the new rates shall take effect on the
date they are so made available.
3. The Utility shall inform each customer of the new rates authorized by this order.
4. The Utility’s current rates and rules shall be available for public inspection.
5. The Utility shall keep on permanent file all its previous rates.
6. Jurisdiction is retained.
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Docket 4005-WQ-104
7. This order is effective one day after the date of service.
Dated at Madison, Wisconsin, September 22, 2014
For the Commission:
Jeff Stone
Division Administrator
Division of Water, Compliance, and Consumer Affairs
JAS:BJS:DL:00941822
See attached Notice of Rights
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PUBLIC SERVICE COMMISSION OF WISCONSIN
610 North Whitney Way
P.O. Box 7854
Madison, Wisconsin 53707-7854
NOTICE OF RIGHTS FOR REHEARING OR JUDICIAL REVIEW, THE
TIMES ALLOWED FOR EACH, AND THE IDENTIFICATION OF THE
PARTY TO BE NAMED AS RESPONDENT
The following notice is served on you as part of the Commission's written decision. This general
notice is for the purpose of ensuring compliance with Wis. Stat. § 227.48(2), and does not constitute a
conclusion or admission that any particular party or person is necessarily aggrieved or that any
particular decision or order is final or judicially reviewable.
PETITION FOR REHEARING
If this decision is an order following a contested case proceeding as defined in Wis. Stat. § 227.01(3),
a person aggrieved by the decision has a right to petition the Commission for rehearing within 20
days of the date of service of this decision, as provided in Wis. Stat. § 227.49. The date of service is
shown on the first page. If there is no date on the first page, the date of service is shown immediately
above the signature line. The petition for rehearing must be filed with the Public Service
Commission of Wisconsin and served on the parties. An appeal of this decision may also be taken
directly to circuit court through the filing of a petition for judicial review. It is not necessary to first
petition for rehearing.
PETITION FOR JUDICIAL REVIEW
A person aggrieved by this decision has a right to petition for judicial review as provided in Wis.
Stat. § 227.53. In a contested case, the petition must be filed in circuit court and served upon the
Public Service Commission of Wisconsin within 30 days of the date of service of this decision if
there has been no petition for rehearing. If a timely petition for rehearing has been filed, the petition
for judicial review must be filed within 30 days of the date of service of the order finally disposing of
the petition for rehearing, or within 30 days after the final disposition of the petition for rehearing by
operation of law pursuant to Wis. Stat. § 227.49(5), whichever is sooner. If an untimely petition for
rehearing is filed, the 30-day period to petition for judicial review commences the date the
Commission serves its original decision.1 The Public Service Commission of Wisconsin must be
named as respondent in the petition for judicial review.
If this decision is an order denying rehearing, a person aggrieved who wishes to appeal must seek
judicial review rather than rehearing. A second petition for rehearing is not permitted.
Revised: March 27, 2013
1 See State v. Currier, 2006 WI App 12, 288 Wis. 2d 693, 709 N.W.2d 520.
RATE FILE Sheet No. 1 of 1
Schedule No. F-1
Public Service Commission of Wisconsin Amendment No. 13
Muskego Water Public Utility
Public Fire Protection Service
The annual charge for public fire protection service to the City of Muskego shall be $318,270.
This service shall include the use of hydrants for fire protection service only and such quantities of
water as may be demanded for the purposes of extinguishing fires within the service area. This
service shall also include water used for testing equipment and training personnel. For all other
purposes, the metered or other rates set forth, or as may be filed with the Public Service Commission,
shall apply.
_________________________________________________________________________________
EFFECTIVE: October 4, 2014
PSCW AUTHORIZATION: 4005-WQ-104
RATE FILE Sheet No. 1 of 1
Schedule No. Fd-1
Public Service Commission of Wisconsin Amendment No. 13
Muskego Water Public Utility
Public Fire Protection Service
Under Wis. Stat. § 196.03(3)(b), the municipality has chosen to have the utility bill the retail general
service customers for public fire protection service.
This service shall include the use of hydrants for fire protection service only and such quantities of
water as may be demanded for the purpose of extinguishing fires within the service area. This
service shall also include water used for testing equipment and training personnel. For all other
purposes, the metered or other rates set forth, or as may be filed with the Public Service Commission
shall apply.
Quarterly Public Fire-Protection Service Charges:
⅝ - inch meter - $ 8.59 3 - inch meter - $ 130.49
¾ - inch meter - $ 8.59 4 - inch meter - $ 216.42
1 - inch meter - $ 21.64 6 - inch meter - $ 429.66
1¼ - inch meter - $ 31.83 8 - inch meter - $ 684.28
1½ - inch meter - $ 42.97 10 - inch meter - $ 1,028.01
2 - inch meter - $ 70.02 12 - inch meter - $ 1,368.56
Customers who are provided service under Schedules Mg-1, Ug-1, Mgt-1 and Mz-1 shall also be
subject to the charges in this schedule.
Billing: Same as Schedule Mg-1.
_________________________________________________________________________________
EFFECTIVE: October 4, 2014
PSCW AUTHORIZATION: 4005-WQ-104
RATE FILE Sheet No. 1 of 1
Schedule No. Mg-1
Public Service Commission of Wisconsin Amendment No. 13
Muskego Water Public Utility
General Service - Metered
Quarterly Service Charges:
⅝ - inch meter - $ 25.46 3 - inch meter - $ 166.78
¾ - inch meter - $ 25.46 4 - inch meter - $ 264.16
1 - inch meter - $ 38.19 6 - inch meter - $ 493.32
1¼ - inch meter - $ 54.11 8 - inch meter - $ 754.30
1½ - inch meter - $ 68.11 10 - inch meter - $ 1,050.29
2 - inch meter - $ 99.94 12 - inch meter - $ 1,346.28
For PSC use only: base 5/8-inch meter charge for SRC purpose - 24.00
Plus Volume Charges:
First 30,000 gallons used each quarter - $3.29 per 1,000 gallons
Next 90,000 gallons used each quarter - $2.87 per 1,000 gallons
Over 120,000 gallons used each quarter - $2.45 per 1,000 gallons
Billing: Bills for water service are rendered quarterly and become due and payable upon issuance
following the period for which service is rendered. A late payment charge of 1 percent per month
will be added to bills not paid within 20 days of issuance. This late payment charge will be applied to
the total unpaid balance for utility service, including unpaid late payment charges. The late payment
charge is applicable to all customers. The utility customer may be given a written notice that the bill
is overdue no sooner than 20 days after the bill is issued. Unless payment or satisfactory arrangement
for payment is made within the next 10 days, service may be disconnected pursuant to Wis. Adm.
Code ch. PSC 185.
Combined Metering: Volumetric meter readings will be combined for billing if the utility for its own
convenience places more than one meter on a single water service lateral. Multiple meters placed for
the purpose of identifying water not discharged into the sanitary sewer are not considered for utility
convenience and shall not be combined for billing. This requirement does not preclude the utility
from combining readings when metering configurations support such an approach. Meter readings
from individually metered separate service laterals shall not be combined for billing purposes.
_________________________________________________________________________________
EFFECTIVE: October 4, 2014
PSCW AUTHORIZATION: 4005-WQ-104