Dive Brief:
- The Wisconsin Public Service Commission last week approved a special power rate for Quad/Graphics, a printing company seeking to expand its operations in Wisconsin, the Milwaukee Journal Sentinel reports.
- Quad/Graphics will be allowed to purchase any additional electricity used for its expanded operations at wholesale prices, potentially saving the company $2 million next year. The move also allowed the company add jobs to the state rather than moving elsewhere.
- This move opens to the door for other large utility customers looking to stay in Wisconsin to grow business operations in the We Energies service area.
Dive Insight:
We Energies power system is under-utilized, and so state regulators have come up with a way to support economic expansions while not putting any of the burden on consumers.
Following the PSC's Quad/Graphics decision last week, other large customers on We Energies system will be eligible for the same rate as long as they meet certain qualifications: they must have at least 5,000 employees in Wisconsin, have applied for $15 million in tax credits and be planning an expansion in the state.
While the deal could save growing companies millions of dollars and bring economic development to the state, We Energies also told the newspaper that the arrangements would not impact residential bills because more of its system would be utilized. The utility has more power than it needs, a combination of power plant construction, energy efficiency and the recession's impact on demand.
The Quad/Graphics expansion is expected to bring 500 jobs to Wisconsin.