Madison Gas and Electric Co. v. Public Service Commission of Wisconsin
Wisconsin Supreme Court
325 N.W.2d 339 (1982)
- Written by Miller Jozwiak, JD
Facts
The Madison Gas and Electric Company (Madison) (plaintiff) filed a petition with the Wisconsin Public Service Commission (commission) (defendant) to raise its rates for use of electricity and natural gas. The commission concluded that the revenue produced by the current rates was too low, so it sought to determine an appropriate increase. Madison submitted a projected revenue amount for wholesale sales of electricity to other utilities. The commission nearly doubled Madison’s estimate for this number, which no one contested. This adjustment was based on a detailed analysis by experts. The commission then added approximately one million dollars to its already increased estimate. Due to these increases, the amount that Madison would need to collect from its retail customers would be reduced. The commission also decided that Madison’s costs in maintaining excess capacity should be shifted to Madison’s shareholders, concluding simply that it was just and reasonable to do so. The commission’s order was challenged, and both a trial court and intermediate appellate court set aside the order.
Rule of Law
Issue
Holding and Reasoning (Day, J.)
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