Despite terrifying climate consequences, the Trump administration is rolling back dozens of environmental regulations on everything from clean water to carbon standards. With no help from the federal government in sight, it’s especially important now for states, local entities, and utilities to lead the way.
Unfortunately, We Energies has other ideas. The company recently filed a proposal at the Public Service Commission that would impose a major extra fee on solar panel owners, including both residential homes and businesses. This proposal is a revival of a similar 2014 proposal by We Energies that was ultimately rejected by the courts, partly due to its unfairness and lack of justification. Similar proposals were rejected in Iowa and Michigan as discriminatory and unnecessary.
Rooftop solar isn’t just good for the planet, it’s good for Wisconsin. We have no natural fossil fuel resources here, so every dollar we spend on electricity produced from coal or fracked gas sends money out of our state. Energy from solar, on the other hand, can be produced right here in Wisconsin, and our solar industry is booming. We Energies’ proposal could have a chilling effect on this growing industry, and could cost Wisconsinites jobs.
We Energies claims that their solar tax is necessary for grid maintenance costs, but this ignores the benefits solar brings to the grid. First, solar owners often produce extra electricity that We Energies buys back at a discounted rate, then earns a profit on by selling it to other customers. Second, rooftop solar reduces demand at peak times, such as hot, sunny summer days. As rooftop solar expands, this will save all customers money by eliminating the need for We Energies to build expensive fossil fuel plants. Reducing the demand on We Energies’ coal plants is good for the area’s air and water, and for customer’s pocketbooks.
Let’s be clear: We Energies isn’t introducing this tax out of concern for customers. They’re worried about their ability to control the market and continue making record profits. Historically, we know that unchecked monopolies will do everything in their power to eliminate competition and then squeeze every last penny from their customers. As a regulated monopoly, We Energies is granted the privilege of earning a profit on electricity production while under the supervision of the Public Service Commission, which serves to ensure We Energies acts in the public interest. The Public Service Commission should reject We Energies’ self-serving solar tax in favor of an approach that supports people who have taken the initiative to produce clean energy themselves.
This post was adapted from the Southeast Gateway Group's Newsletter Update June 2019.