SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) December 23,
1997
WISCONSIN ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
1-9057
(Commission file number)
Wisconsin 39-1391525
(State or other jurisdiction of (I.R.S. Employer
Identification No.)
incorporation or organization)
231 West Michigan Street, P.O. Box 2949, Milwaukee, Wisconsin
53201
(Address of principal executive offices)
(Zip Code)
(414) 221-2345
(Registrant's telephone number, including area code)
NOT APPLICABLE
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(Former name or former address, if changed since last report)
FORM 8-K
WISCONSIN ENERGY CORPORATION
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ITEM 5. OTHER EVENTS
1998 Test Year: On September 22, 1997, Wisconsin Electric
Power Company ("WE", the principal subsidiary of Wisconsin Energy
Corporation ("WEC")) filed testimony and exhibits with the Public
Service Commission of Wisconsin ("PSCW") related to the 1998 test
year showing a $220.4 million revenue deficiency for its
Wisconsin utility operations based upon a regulatory return on
equity of 12.5%, up from 11.8% authorized since February 13,
1997. The dollar impacts and percentage increases on an
annualized basis requested for Wisconsin retail services were
$192.7 million or 15.3% for electric operations, $26.5 million or
7.9% for gas operations and $1.2 million or 9.0% for the City of
Milwaukee steam operations. WE asked the PSCW for an interim
increase in the amount of $200 million, effective January 1, 1998
and subject to refund, in the event the PSCW was unable to issue
a final order by that date.
On December 23, 1997, the PSCW issued an order authorizing
interim rate increases, effective January 1, 1998 and subject to
refund pending a final rate order, in the amount of $154 million.
The dollar impacts and percentage increases of the interim order
on an annualized basis for Wisconsin retail services are $134.9
million or 10.7% for electric operations, $18.5 million or 5.5%
for gas operations and $827,000 or 6.3% for the City of Milwaukee
steam operations. WE currently expects the PSCW to hold
additional public hearings on WE's September 22, 1997 filing
during the first quarter of 1998 and to issue a final order
during the second quarter of 1998.
Fuel Cost Adjustment Procedure: Extended outages at Point Beach
Nuclear Plant ("Point Beach"), an extended maintenance outage at
Oak Creek Power Plant that was concluded in June 1997, delayed
commercial operation of LSP-Whitewater L.P.'s Whitewater
cogeneration facility, and higher than projected purchased power
costs due to regional generation outages resulted in increased
fuel and purchased power costs at WE during 1997. WE currently
estimates that such costs were $112 million higher than those
reflected in 1997 base electric rates in all jurisdictions.
In the first quarter of 1997, WE filed a request with the PSCW
requesting recovery of the estimated increase in fuel and
purchased power costs properly allocated to the Wisconsin
jurisdiction. Effective May 24, 1997, the PSCW approved a
$0.00109 per kilowatt-hour interim fuel surcharge, subject to
refund, collectible during the 1997-1998 biennial period.
Because of delays in the schedule to restart Point Beach, WE
filed a second request with the PSCW in the third quarter of 1997
to recover additional increased fuel and purchased power costs
above those included in the PSCW's May 24, 1997 interim fuel
order. In the second fuel filing, WE requested an additional
fuel surcharge of $0.00110 per kilowatt-hour to be effective
during 1998.
ITEM 5. OTHER EVENTS (Cont'd)
On December 23, 1997, the PSCW issued a combined final order on
the two fuel filings made by WE during 1997 authorizing WE to
recover $27.2 million of additional 1997 fuel and purchased power
costs from Wisconsin retail electric customers during the 1997-
1998 biennial period. The maximum amount potentially recoverable
in Wisconsin under applicable fuel rules was $59 million.
Effective January 1, 1998, the PSCW approved a $0.00159 per
kilowatt-hour fuel surcharge that will remain effective through
April 30, 1998 or the date when WE's next final rate order
becomes effective, whichever comes sooner. WE estimates that of
the $112 million of additional 1997 fuel and purchased power
costs, it will recover in all jurisdictions a total of $28.6
million, leaving $83.4 million unrecovered.
See ITEM 1. LEGAL PROCEEDINGS - "RATE MATTERS" in Part II of WE's
and WEC's Quarterly Reports on Form 10-Q for the quarter ended
September 30, 1997 for additional information related to the 1998
Test Year and to the Fuel Cost Adjustment Procedure.
FORM 8-K
WISCONSIN ENERGY CORPORATION
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
WISCONSIN ENERGY
CORPORATION
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(Registrant)
/s/C. H. Baker
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Date: January 8, 1998 C. H. Baker, Treasurer,
Chief
Financial Officer and
duly
authorized officer
