1. Commission Chairperson Phil Montgomery Presentation to Alaska Delegation September 5, 2014 Integrating Wisconsin’s Grid: an Energy Policy Perspective Public Service Commission of Wisconsin

2. About the PSCW Why Integrate our Grid? The Role of Wisconsin’s Legislature The Regulator’s Role Shared Responsibilities: PSCW, ATC and MISO The Results Outline

3. 1882: Nation’s first commercial power plant put in service in Appleton, WI 1906: 3-member commission appointed 1907: Wisconsin becomes the first state to regulate utilities Wisconsin Public Utility Act of 1907: supervise and regulate every public utility in this state reasonably adequate service and facilities rates that are reasonable and just Electric, Telecommunications, Gas & Water The Public Service Commission of Wisconsin

4. Wisconsin has mix of Cooperative, Municipal and Investor-Owned utilities 1990s: lower 48 begin experiments in electric utility restructuring Wisconsin recognized need for better integration of transmission network to improve reliability, efficiency, and better utilize existing generation: - Legislature passed and Governor signed WI Act 204 in 1997 - 1999 Budget - Act 9 – known as the Reliability 2000 Initiative followed Act 204 Integrated network also provides for import, export, and renewable energy development Generators are completing Clean Air Act investments Electricity Development Wisconsin

5. Legislators and Regulators recognize the need Integrated grid under a single operator one rate, common service across the state drive economic growth by managing energy costs Legislature provides framework, incentives Utilities craft business model Regulators establish, approve tariff ATC Formation: A Partnership

6. Substantial improvement to and reinvestment in existing infrastructure New transmission provides access to low-cost electricity within and outside the state Improved generation and transmission planning A reliable, resilient grid The creation of a world-class transmission company The Results

7. MISO approves projects on a “no harm principle” if completely in WI, and determines cost allocation to other states where value is shared PSCW has jurisdiction via CPCN over transmission in the state PSCW also regulates ATC’s owners independently Interaction between PSCW and MISO

8. Questions? Q & A