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SB 1120

Relating to: securitization of retiring power plants. (FE)

2025-2026 Regular Session Introduced by Mark Spreitzer and 1 co-sponsor

Wisconsin bill would allow utilities to issue bonds backed by ratepayer revenues to recover costs from retiring fossil fuel power plants rather than immediately raising electricity rates.

Failed to pass pursuant to Senate Joint Resolution 1
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Bill Summary · SB 1120

Legislative bill overview

SB 1120 establishes a mechanism for securitizing the costs associated with retiring coal or natural gas power plants in Wisconsin. Securitization allows utilities to recover stranded costs—expenses from closing plants before their assets are fully depreciated—by issuing bonds backed by future utility revenues, spreading these costs across ratepayers over time rather than immediate rate increases.

Why is this important

As Wisconsin transitions away from fossil fuels, utilities face substantial financial losses from retiring profitable but aging plants. Securitization offers a way to manage these transition costs while raising capital for infrastructure investments in renewable energy. However, this directly affects electricity rates and determines how costs are distributed between current and future ratepayers.

Potential points of contention

  • Cost allocation fairness: Securitization spreads costs across future ratepayers who may benefit from cleaner energy but bear financial burdens for past generation investments they didn't authorize
  • Utility financial protection: Critics argue securitization shields utilities from market losses and normal depreciation risks, effectively socializing stranded costs that should be borne by shareholders
  • Energy transition pacing: Supporters contend it enables faster plant retirement and renewable investment; opponents worry it removes financial pressure on utilities to transition efficiently

Compiled from official sources — confirm details with the bill’s official record.

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