Wisconsin Energy responds:
In your April 11, 2006 column, you wrote that salaries and wages at We Energies are contributing to the rising cost of energy. They’re not. Here’s why.
First, it’s important to understand that the amount We Energies includes in electric rates to cover salaries and wages for all employees has remained the same since 2000.and will remain unchanged for at least another two years.
Hasn’t anyone gotten a raise? Of course there have been salary and wage increases, as well as increased costs for other things such as health care. However, all these increases have been absorbed by our stockholders.
Second, We Energies cannot and does not pass the costs of incentive compensation, or bonuses, on to our customers. In fact, incentive compensation is specifically excluded from rates by the Public Service Commission of Wisconsin.
As you noted in your column, there are many reasons for the increased cost of energy in Wisconsin. However, employee salary increases and incentive compensation have not been and are not among those reasons.
We Energies is committed to making Wisconsin’s energy costs more competitive. We are moving toward greater self-sufficiency – building a diverse portfolio of power plants rather than being overly reliant on volatile natural gas. Our construction program will result in less reliance on costly imported power from other states.
Yes there is a cost for this, but we must have the energy to support a growing Wisconsin economy, and we are working as hard as we can to keep our costs as low as possible.
Rick White
Vice President-Corporate Communications
Wisconsin Energy Corporation/We Energies
231 W. Michigan St.
Milwaukee, WI 53202
(414) 221-2555 (O) (414) 221-2113 (F)
rick.white@we-energies.com
