Response to John Hermanson's February 1, 2024 letter to the Peninsula Pulse
Dear John,
I saw your letter at https://doorcountypulse.com/letter-to-the-editor-politics-at-its-worst/.
None of the news articles about this case noted the local aspect: Tyler Huebner was on the PSC when it approved the sale of the Kewaunee Nuclear Power Plant to EnergySolutions for an undisclosed amount of money.
This was controversial in part because a competitor had offered to do the decommissioning with a contractual obligation to return at least $200 million to the ratepayers: https://apps.psc.wi.gov/ERF/ERFview/viewdoc.aspx?docid=433268#page=2
The competitor’s legal filing describes various ways how the PSC could have been more stringent on the corporations. Tom Content, the executive director of the the Citizens Utility Board stated that the PSC’s approval of the sale without establishing oversight over how the Nuclear Decommissioning Trust money was spent was “a big missed opportunity” because it “establishes absolutely no incentives for the company to limit its spending on the project.”: https://madison.com/news/local/environment/835-million-in-contractor-hands-after-utility-regulators-approve-sale-of-kewaunee-nuke-plant/article_6844cd4a-d3e7-5838-a0bd-fda5f2176578.html (paywalled)
In 2004, the PSC had stated regarding the Kewaunee plant that "a sale that causes the Commission to surrender" its authority over how decommissioning funds were spent "would be a substantial loss regarding matters of statewide importance", and that a proposed transaction without providing for that oversight “cannot” be found to "be consistent with the public interest.”: https://apps.psc.wi.gov/ERF/ERFview/viewdoc.aspx?docid=433268#page=4
In breaking with the 2004 PSC by approving the sale without establishing oversight, it seems the board members favored the corporations more than the ratepayers.
Another underappreciated aspect of Tyler Huebner’s firing is the broader legal situation regarding taxation.
In rejecting Huebner’s nomination, the Republican legislators protected the 1976 Buse v. Smith case, which has allowed school districts in northern Door County to resist merger pressures. Buse found that negative school aid violated “the rule of uniform taxation set forth in art. VIII, sec. 1, of the Wisconsin Constitution”: https://law.justia.com/cases/wisconsin/supreme-court/1976/75-552-7.html
.The income-based utility rates which had been authorized by Huebner are a quasi form of taxation and subsidy. Since the amount of the quasi-tax is necessarily unequal across different utilities, it violates the same state constitutional rule as negative aid. Tolerating income-based utility rates undermines the Buse decision.
A constitutional way to charge higher-income people for more electricity would be for the legislature to enact a sales tax on electricity. It could be paid with the annual state income tax, and an exemption could be included so only the wealthy pay it. The funds so collected could be used for utility subsidy programs.
Under this scenario, the tax would be part of statutory law and uniform across the state. With income-based utility rates, the degree of tax and subsidy is sheltered from the scrutiny which is provided by the legislative process.
What then are the reasons given for Huebner’s firing?
This is a press release issued by State Senator Van H. Wanggaard about why he voted to reject Tyler Huebner’s nomination: https://www.wispolitics.com/2024/sen-wanggaard-statement-on-public-service-commissioner-appointments/
I believe Summer Strand and Tyler Huebner have two fundamentally different philosophies when it comes to their roles as Public Service Commissioners.
I have met with Commissioner Huebner for several hours on several different occasions. Although he appears to be a nice man, his answers to questions were completely lacking in substance. At times he was evasive, and at times he outright lied.
At least twice, he decided to ignore the law as Commissioner. He illegally authorized utility rates based on income, instead of usage, as required by law. He authorized a third-party solar arrangement in Stevens Point, despite a bill authorizing third-party solar arrangements being introduced and failing in the Legislature six or eight years in a row. Despite promising to recuse himself from decisions on which he had lobbied, he has not. He required utility companies provide Diversity, Equity and Inclusion (DEI) information to the Public Service Commission without any authority to do so. The reasons to reject Commissioner Huebner are not political, they are about following the law. Huebner has failed to do so.
In complete contrast, Commissioner Strand has promised to follow the law. I spoke to her about these issues and more. Her answers were direct. She was straightforward. She criticized previous decisions and her reasoning for doing so. She is a Democrat, and I don’t expect to agree with all, or any, of her decisions. But I am confident she will follow the law. Unlike Commissioner Huebner who has demonstrated he would not follow the law.
Governor Evers’ complaint that Hueber was fired “baselessly” does not go into the details listed by Wanggaard: https://content.govdelivery.com/accounts/WIGOV/bulletins/3851cf8
Prior to his appointment, Huebner was a former utility lobbyist for a non-profit. This is a list of the corporations which currently have paid memberships in the non-profit he once led: https://www.renewwisconsin.org/business-members/
His past work for the non-profit is why he was supposed to “recuse himself from decisions on which he had lobbied”.
Now that he has been fired, he might find a utility or non-profit in need of his talents. Presently EnergySolutions is in the “early phases” of the process for potentially having the site marketed to entities needing a good location to construct a new nuclear power plant: https://www.ans.org/news/article-5122/energysolutions-sets-its-sights-on-nuclear-new-build/
Whoever wants to build in Kewaunee is going to need some good lobbyists. This could be just the task for Tyler Huebner.
Other responses to recent letters or articles:
https://doorcounty.substack.com/t/response-to-a-recent-letter-or-article