Wisconsin Statutes

Wis. Stat. § 196.37 (2026)

Lawful rates; reasonable service

✓ current as of July 2026
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196.37196.37Lawful rates; reasonable service.
196.37(1)(1)If, after an investigation under this chapter or ch. 197, the commission finds rates, tolls, charges, schedules or joint rates to be unjust, unreasonable, insufficient or unjustly discriminatory or preferential or otherwise unreasonable or unlawful, the commission shall determine and order reasonable rates, tolls, charges, schedules or joint rates to be imposed, observed and followed in the future.
196.37(2)(2)If the commission finds that any measurement, regulation, practice, act or service is unjust, unreasonable, insufficient, preferential, unjustly discriminatory or otherwise unreasonable or unlawful, or that any service is inadequate, or that any service which reasonably can be demanded cannot be obtained, the commission shall determine and make any just and reasonable order relating to a measurement, regulation, practice, act or service to be furnished, imposed, observed and followed in the future.
196.37(3)(3)Any public utility to which an order under this section applies shall make such changes in schedules on file under s. 196.19 to make the schedules conform to the order. The public utility may not make any subsequent change in rates, tolls or charges without the approval of the commission.
196.37(4)(4)This section does not apply to rates, tolls or charges of a telecommunications cooperative, an unincorporated telecommunications cooperative association, or a small telecommunications utility except as provided in s. 196.205.
196.37(5)(5)It is not unreasonable or unjustly discriminatory for a municipal public utility to adopt application, deposit, disconnection, or collection rules and practices that distinguish between customers based upon whether the customer owns or leases the property that is receiving utility service where the possibility exists for any unpaid bills of a tenant to become a lien on the property that is receiving utility service.
196.37(6)(6)A water public utility may fund all or a portion of the cost of providing financial assistance under s. 196.372 using revenue collected from charges applied to retail customers receiving service from the water public utility in the same city, village, or town in which the property for which the financial assistance is provided is located.
196.37 Cross-referenceCross-reference: See also ch. PSC 110, Wis. adm. code.
196.37 AnnotationIn the absence of statutory authority, the PSC may not fix rates to be applied retroactively. Algoma, Eagle River, New Holstein, Stratford, Sturgeon Bay & Two Rivers v. PSC, 91 Wis. 2d 252, 283 N.W.2d 261 (Ct. App. 1978).
196.37 AnnotationAllowing a utility to charge present ratepayers for a storm damage casualty loss that occurred in a prior year did not constitute retroactive rate making. Wisconsin Environmental Decade, Inc. v. PSC, 98 Wis. 2d 682, 298 N.W.2d 205 (Ct. App. 1980).
196.37 AnnotationThe PSC has authority to shift the cost of excess generating capacity to shareholders if the excess capacity was imprudently acquired or is not useful in serving the public, but there must be a reasoned determination that ratepayers should not bear the cost. Madison Gas & Electric Co. v. PSC, 109 Wis. 2d 127, 325 N.W.2d 339 (1982).
196.37 AnnotationA utility’s failure to pay taxes under protest may constitute “imprudence” and may reasonably affect a rate-setting decision. Wisconsin Public Service Corporation v. PSC, 156 Wis. 2d 611, 457 N.W.2d 502 (Ct. App. 1990).
196.37 AnnotationThe PSC has authority to order a utility to refund compensation collected in violation of filed tariffs. GTE North Inc. v. PSC, 176 Wis. 2d 559, 500 N.W.2d 284 (1993).
196.37 AnnotationThe PSC’s imposition of a penalty for imprudent administration of a coal acquisition contract was impermissible retroactive rate-making. Wisconsin Power & Light v. PSC, 181 Wis. 2d 385, 511 N.W.2d 291 (1994).
196.37 AnnotationSub. (1) is not implicated when a refund is ordered for reasons other than the PSC’s determination that rates for services already provided were not reasonable. Sub. (2) authorizes the PSC to order a refund of a rate that the utility believed was included in a tariff, but the PSC concluded was not, and of a rate that the utility believed was properly filed with the PSC but the PSC concluded was not. CenturyTel of the Midwest-Kendall, Inc. v. PSC, 2002 WI App 236, 257 Wis. 2d 837, 653 N.W.2d 130, 02-0053.
196.37 AnnotationOnce a rate or practice is determined to be unlawful, or once a charge is determined to be a practice that is unlawful, it is subject to the remedial authority of sub. (2). Under CenturyTel, sub. (2) provides the PSC authority to order a refund. Wisconsin Bell, Inc. v. Public Service Commission, 2004 WI App 8, 269 Wis. 2d 409, 675 N.W.2d 242, 02-3163.
Notes of Decisions
Cited in 22 cases (2 in the last 5 years), 1954–2026 · leading case: Clean Wisconsin, Inc. v. Pub. Serv. Comm'n, 2005 WI 93 (Wis. 2005).
Clean Wisconsin, Inc. v. Pub. Serv. Comm'n, 2005 WI 93 (Wis. 2005). · cites it 28× “The legislature responded by broadening the Commission's ratemaking authority and renaming it the "Public Service Commission of Wisconsin." § 2, ch. 183, Laws of 1931; Wis.”
CenturyTel of Midwest-Kendall, Inc. v. Pub. Serv. Comm'n, 2002 WI App 236 (Wis. Ct. App. 2002). · cites it 54× “Kendall also contends that the refund order violates Wis. Stat. § 196.37 (1), which prohibits retroactive ratemak-ing, and that the ESC lacks the authority to order the refund.”
Clean Wisconsin, Inc. v. Pub. Serv. Comm'n of Wisconsin, 2005 WI 93 (Wis. 2005). · cites it 14× “The legislature responded by broadening the Commission's ratemaking authority and renaming it the "Public Service Commission of Wisconsin." § 2, ch. 183, Laws of 1931; Wis.”
Wisconsin Bell, Inc. v. Pub. Serv. Comm'n, 2004 WI App 8 (Wis. Ct. App. 2003). · cites it 57× “The court concluded that while the Commission had correctly determined that the Ameritech long-distance charges that had generated that revenue were unlawful, the requested refund was foreclosed by Wis. Stat. § 196.37 (2) (2001-02). 1 Amer-itech cross-appeals from the same…”
Wisconsin Power & Light Co. v. Pub. Serv. Comm'n, 511 N.W.2d 291 (Wis. 1994). · cites it 6× “The trial court reversed the PSC's order, finding that the penalty constitutes impermissible retroactive ratemaking, in violation of sec. 196.37(1), Stats. [1] Because this decision disposed of the entire matter, the court did not reach the issue of WPL's alleged imprudence.”
GTE North Inc. v. Pub. Serv. Comm'n, 500 N.W.2d 284 (Wis. 1993). · cites it 5× “The only possible interpretation of the former wording of sec. 196.37(2), Stats., which gives effect to the words "and shall make such other order respecting such measurement, regulation, act, practice or service as shall be just and reasonable," is that the power conferred by…”
City of Oak Creek Ex Rel. Water & Sewer Util. Comm'n v. Pub. Serv. Comm'n, 2006 WI App 83 (Wis. Ct. App. 2006). · cites it 10× “See Wis. Stat. §§ 196.37 (2), 196.39(1). A SCOPE OF PSC'S AUTHORITY ¶ 21.”
Wisconsin Pub. Serv. Corp. v. Pub. Serv. Comm'n of Wisconsin, 457 N.W.2d 502 (Wis. Ct. App. 1990). · cites it 3× “See sec. 196.37, Stats. Because of WPS's imprudence, PSC ordered a rate of return on equity for a part of 1987 that was .”
Madison Gas & Elec. Co. v. Pub. Serv. Comm'n, 441 N.W.2d 311 (Wis. Ct. App. 1989). · cites it 6× “[1] On December 14, 1987, in its final order, the court determined that the commission's order constituted retroactive ratemaking, contrary to sec. 196.37(1), Stats., [2] remanded the matter to the commission and ordered that the surcharges remain in effect until December 31,…”
Seebach v. Pub. Serv. Comm'n, 295 N.W.2d 753 (Wis. Ct. App. 1980). · cites it 2× “Section 196.37 allows the PSC to rectify “unjustly discriminatory” rates.”
Kimberly-Clark Corp. v. Pub. Serv. Comm'n, 329 N.W.2d 143 (Wis. 1983). “) Sec. 196.37(1), Stats., is similar to sec.”
Kimberly-Clark Corp. v. Pub. Serv. Comm'n, 320 N.W.2d 5 (Wis. Ct. App. 1982). · cites it 3× “This means that according to sec. 196.37(1), Stats., the PSC could only review past rates, but it may set rates for the future.”
— Wis. Stat. § 196.37(1) — 11 cases
Wisconsin Power & Light Co. v. Pub. Serv. Comm'n, 511 N.W.2d 291 (Wis. 1994). “The trial court reversed the PSC's order, finding that the penalty constitutes impermissible retroactive ratemaking, in violation of sec. 196.37(1), Stats. [1] Because this decision disposed of the entire matter, the court did not reach the issue of WPL's alleged imprudence.”
CenturyTel of Midwest-Kendall, Inc. v. Pub. Serv. Comm'n, 2002 WI App 236 (Wis. Ct. App. 2002). “Kendall also contends that the refund order violates Wis. Stat. § 196.37 (1), which prohibits retroactive ratemak-ing, and that the ESC lacks the authority to order the refund.”
Madison Gas & Elec. Co. v. Pub. Serv. Comm'n, 441 N.W.2d 311 (Wis. Ct. App. 1989). “[1] On December 14, 1987, in its final order, the court determined that the commission's order constituted retroactive ratemaking, contrary to sec. 196.37(1), Stats., [2] remanded the matter to the commission and ordered that the surcharges remain in effect until December 31,…”
Kimberly-Clark Corp. v. Pub. Serv. Comm'n, 329 N.W.2d 143 (Wis. 1983). “) Sec. 196.37(1), Stats., is similar to sec.”
Kimberly-Clark Corp. v. Pub. Serv. Comm'n, 320 N.W.2d 5 (Wis. Ct. App. 1982). “This means that according to sec. 196.37(1), Stats., the PSC could only review past rates, but it may set rates for the future.”
— Wis. Stat. § 196.37(2) — 11 cases
Clean Wisconsin, Inc. v. Pub. Serv. Comm'n, 2005 WI 93 (Wis. 2005). “The legislature responded by broadening the Commission's ratemaking authority and renaming it the "Public Service Commission of Wisconsin." § 2, ch. 183, Laws of 1931; Wis.”
GTE North Inc. v. Pub. Serv. Comm'n, 500 N.W.2d 284 (Wis. 1993). “The only possible interpretation of the former wording of sec. 196.37(2), Stats., which gives effect to the words "and shall make such other order respecting such measurement, regulation, act, practice or service as shall be just and reasonable," is that the power conferred by…”
CenturyTel of Midwest-Kendall, Inc. v. Pub. Serv. Comm'n, 2002 WI App 236 (Wis. Ct. App. 2002). “Kendall also contends that the refund order violates Wis. Stat. § 196.37 (1), which prohibits retroactive ratemak-ing, and that the ESC lacks the authority to order the refund.”
Wisconsin Bell, Inc. v. Pub. Serv. Comm'n, 2004 WI App 8 (Wis. Ct. App. 2003). “The court concluded that while the Commission had correctly determined that the Ameritech long-distance charges that had generated that revenue were unlawful, the requested refund was foreclosed by Wis. Stat. § 196.37 (2) (2001-02). 1 Amer-itech cross-appeals from the same…”
Clean Wisconsin, Inc. v. Pub. Serv. Comm'n of Wisconsin, 2005 WI 93 (Wis. 2005). “The legislature responded by broadening the Commission's ratemaking authority and renaming it the "Public Service Commission of Wisconsin." § 2, ch. 183, Laws of 1931; Wis.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.