Utilities are beginning to see settlement payments from the large, national class action lawsuits filed against companies like 3M and Dupont.  How should you be accounting for these payments?  Neither the terms of the settlement agreement nor Wisconsin law confer authority for the Commission to dictate how a utility uses funds received from the PFAs settlement.  However, it is recommended that utilities review Wis. Stat. § 66.0811 when evaluating whether state law limits their discretion in using funds that they have received or expect to receive from a PFAs class-action lawsuit settlement. 

Although the Commission may not prescribe the use of these funds, utilities are encouraged to use the funds in a way that benefits its customers – particularly if the utility has incurred or expects to incur costs to address PFAs contamination.  While the commission may not direct the use of these funds, it retains authority to review the use of PFAs settlement funds in the context of requests for rate recovery for utility expenditures, including those related to PFAs mitigation.  Some examples of these potential expenditures could include operating costs related to PFAs testing, PFAs treatment costs (such as filter media replacement and disposal), or PFAs capital costs (such as the construction of a PFAs treatment facility). 

Funds used to offset operating expenses should be reported as a credit to the appropriate expense account and described in the footnotes of the PSC Annual Report.  Funds used to partially fund construction of a new PFAS treatment facility should be reported in Account 421/216.2 (Miscellaneous Non-operating Income - Contributions).  Funds that are not used for any specific purpose should be reported in Account 421/216.1 (Miscellaneous Non-operating Income – Earnings). 

Have a question for staff?  Send it to angela.james@wisconsin.gov.

Here are some tips for things you can do this fall to prepare for filing your Annual Report: 

• If you need to make an audit adjustment to the 2024 PSC Annual Report, please do so before starting on the 2025 report.  To amend a report, please contact us at PSCWaterAnnualReports@wisconsin.gov.
• If your utility plans to use an outside consultant to prepare the report, consider contacting them early to confirm their capacity to prepare your report on time.
• Please confirm that your utility’s primary email address on file with the Commission is up to date.
  • Use our tool to make any updates: Utility Request Address Change.
  • If you have any issues with the update, please contact the PSC Records Department at PSCRecordsMail@wisconsin.gov.
• Watch for a webinar by Commission staff in November (date TBD) discussing the PSC Annual Report, with a breakout of things to consider as you wrap up your year.  Staff will flag common issues with filing, and identify special considerations for clerks, financial consultants, and operation staff working on the report.  If you have any questions you’d like us to address in this training, please reach out to angela.james@wisconsin.gov. 

When is Commission authorization required for construction? 

Unauthorized construction may arise if utilities are unfamiliar with the types of projects that require Commission review and approval prior to construction. 

What are common mistakes and how do you avoid them? 

The majority of unauthorized construction occurs because utilities fail to seek authorization for projects in the last category and final project costs exceed the statutory threshold.  Some common projects that have recently triggered water investigations:

• Water utility storage buildings  
• Municipal garages  
• Booster stations  
• Installation of backup generators 
• Land purchases 

Here are some tips to avoid a water investigation for unauthorized construction: 

• South Milwaukee Water Utility, 7/1/2025, 22.29%
• Loganville Municipal Water and Sewer Utility, 7/3/2025, 21.6%
• Durand Municipal Water Utility, 7/7/2025, 63.8%
• Village of Bay City Water Utility, 7/16/2025, 23.48%
• Blue River Municipal Water And Sewer Utility, 7/16/2025, 21.48%
• Dousman Water Utility, 7/28/2025, 39.19%
• Jamestown Sanitary District 2, 7/28/2025, 44.49%
• Brodhead Water And Light Commission, 7/31/2025, 34.08%
• Tn of Sheboygan Sanitary Dist #3, 8/8/2025, 71.83%
• Pulaski Water Department, 8/14/2025, 39.36%
• Argyle Municipal Electric and Water Utility, 8/20/2025, 93.76%
• Village of Maiden Rock Municipal Water Utility, 8/22/2025, 79.17%
• Williams Bay Municipal Water Utility, 8/29/2025, 59.92%
• Oconto Utility Commission, 9/10/2025, -3.27%
• Benton Municipal Electric & Water Utility, 9/24/2025, 27.92%
• Eleva Municipal Water Utility, 9/24/2025, 161.30% 

Construction Authorizations:  The Commission issued the following construction authorizations.  Click on the docket description to read the Final Decision. 

• Middleton Municipal Water Utility, 7/1/2025 Construct Facility Modifications and Improvements to Wells No. 5 and 7  Estimated:  $2,500,000.00, Approved:  $2,100,000.00
• Village of Fox Point Water Utility, 7/18/2025 Construct Improvements to Basin No. 5 Estimated: $582,701.00, Approved:  $582,701.00
• Village of Whitefish Bay Water Utility, 7/22/2025 Construct Improvements to Basin No. 5 Estimated: $978,235.00, Approved:  $978,235.00
• Glendale Water Utility, 7/23/2025 Construct Improvements to Basin No. 5 Estimated:  $1,558,439.00, Approved:  $1,558,439.00
• Village of Waterford Water and Sewer Utility, 7/23/2025 Construct Well No. 6 Estimated:  $2,900,000.00, Approved:  $2,900,000.00
• Stanley Municipal Waterworks, 8/20/2025 Construct Improvements at the Central Water Treatment Plant and Well No. 3 Estimated:  $8,568,893.00, Approved:  $10,228,625.00
• Algoma Sanitary District No 1, 8/21/2025 Construct New Water Supply Facilities  Estimated:  $4,180,000.00, Approved:  $4,180,000.00
• Village of Menomonee Falls Water Utility, 8/28/2025 Construct an Expansion, Acquisition, and Interconnection to the Existing Water Main Estimated: $20,000.00, Approved:  $20,000.00