Dive Brief:
- Integrys Energy Group, parent company of Wisconsin Public Service Corporation (WPS), reported adjusted earnings of $139 million for Q1 2014, the same over Q1 2013.
- Integrys expects to grow its rate base by 30-35% and its earnings by 4-6% on strong utility growth, according CEO Charles Schrock.
- Integrys warned customers that rate increases are coming. WPS filed for an 8% rise in rates for the first time in five years to reflect investments.
- The company also announced that three coal-fired generating units, two at the Pulliam plant in Green Bay and one at the Weston plant by Wausau, will be retired in the near future.
Dive Insight:
WPS has asked for rate increases every year for the last five years, but have been denied every time as fuel costs were lower than expected. The increase reflects Integrys' subsidiaries $2.5 billion total investments in infrastructure. “Right now, our bucket is full,” Schrock said.
Looking ahead, the utility will be looking to what further changes can be made to its resource portfolio, including further coal plant retirements, according to CEO Charles Schrock. With load expected to grow, the company is looking for new ways to meet demand and federal environmental standards — changes that will be reflected in customer rates.
“As we look further out in time, we are projecting potential new investment in the form of generation as we see our load grow or we see our existing generation be retired. Across our whole system we are always looking to see how we can improve reliability,” Schrock said.
