The state of Wisconsin is taking a leadership role in renewable energy. In 2007, Wisconsin Governor Jim Doyle established the Office of Energy Independence to promote the development of renewable energy resources, particularly biofuels, in Wisconsin. Governor Doyle also formed a new Task Force on Global Warming and appointed WPPI CEO Roy Thilly as co-chair.

The Task Force has been charged with making recommendations on how the state should respond to growing concerns about climate change, with an emphasis on reducing greenhouse gas emissions. The Task Force brings together a diverse group representing not only the electric utility industry, but also transportation, agriculture, forestry, other industries and environmental groups. Through their work, Roy Thilly and his fellow Task Force members should have a significant influence on state policies affecting electric utility operations in the future.

In a related development, governors of nine states — including Wisconsin, Michigan and Iowa — and the Premier of Manitoba signed the Greenhouse Gas Reduction Accord in November. Serving as a regional strategy to achieve energy security and reduce emissions, the Accord is expected to lead to a regional cap-and-trade system for greenhouse gas emissions.

WPPI was active in protecting the interests of member communities, influencing legislative activities at the federal and state levels and participating in regulatory matters at the Federal Energy Regulatory Commission (FERC). Advocacy for member interests continues to grow in importance as the utility industry faces increased challenges in the areas of costs, environmental protection and more.

• In March, a number of WPPI member utility representatives traveled to Washington, D.C. as part of the American Public Power Association’s Legislative Rally. The group included mayors, village board presidents, commissioners, city administrators and utility managers. Accompanied by staff from WPPI and the Municipal Electric Utilities of Wisconsin (MEUW), members met with elected officials to urge support for issues of concern to the public power industry. These included accountability for Midwest ISO costs; support for incentives that would encourage public power development of clean resources; and legislation aimed at curtailing rising rail freight costs. The legislative rally created a strong presence for WPPI members in Washington.
• In February, WPPI CEO Roy Thilly testified before FERC, providing commentary on WPPI’s experiences as a participant in the Midwest ISO. Thilly urged the Commission to examine the costs and benefits of organized regional markets such as Midwest ISO, with a focus on determining whether retail electric customers actually benefit. He also advocated for specific improvements, such as the development of a robust transmission system to get renewable energy to market, allow for the proper siting of base load plants, and provide flexibility for an uncertain future that may include fuel switching and new generation technologies.
• Mandatory reliability requirements established by the North American Electric Reliability Corporation and the Midwest Reliability Organization took effect in 2007. Ten large WPPI member utilities were required to register under these requirements, and WPPI provided significant assistance to these members in preparing to meet the standards, taking responsibility for compliance in most cases. Over time, WPPI will maintain compliance and work to ensure that reliability standards do not apply to smaller systems whose actions cannot have a material impact on the bulk power system.
• As all utilities focus on capturing new customers in response to decreasing load forecasts, disputes are increasing between utilities over new customers in Wisconsin. These disputes have led to tensions between municipally owned utilities and other providers of electric power, including cooperatives and investor-owned utilities. In response, WPPI began work on a strategy to improve the process for resolving territorial disputes at the Public Service Commission, and to better educate policymakers on the need for municipal utilities to grow within their city borders.