MPSC Directs Wisconsin Electric Power Company to Cease Billing Verso Paper Corp. for Standby Energy in 2012

WASHINGTON, D.C. – April 23, 2015 – (RealEstateRama) — The Michigan Public Service Commission (MPSC) today directed Wisconsin Electric Power Company (WEPCo) to cease billing Verso Paper Corp. (Verso) for standby energy associated with a maintenance period in 2012.

Verso on Jan. 30, 2014 filed a complaint against WEPCo alleging improper assessment of standby charges for a pre-approved maintenance period.

WEPCo approved Verso’s request for approval of a generator maintenance period of 20 days (from Sept. 23, 2012 to Oct. 12, 2012). The utility did not initially bill Verso for any standby energy for the approved 20-day maintenance period, but one year later, on Oct. 13, 2013, Verso received a $93,339 bill from WEPCo for standby energy charges associated with a certain time period described in the utility’s tariff.

The utility said that it began to analyze how its tariff provisions would apply to Verso when the paper company switched to retail access (choice) service.

In today’s order, the MPSC notes that WEPCo’s tariff “unequivocally provides that standby energy is zero during a company approved, prescheduled maintenance period.” The MPSC, therefore, directed the utility to cease billing Verso for standby energy associated with the Sept. 23, 2012 to Oct. 12, 2012 maintenance period.

The MPSC is an agency within the Department of Licensing and Regulatory Affairs.

Case No. U-17558

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Contact: Judy Palnau, 517-284-8300

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