Jul. 2--Gov. Jim Doyle has vetoed a budget proposal that would have provided increased funding for the Citizens' Utility Board, a nonprofit organization that advocates for lower utility rates.

As passed by the Legislature, the biennial state budget had included $300,000 in annual funding over the next two years for the Citizens' Utility Board. The higher funding would not have been paid by taxpayers. Instead, it would have been borne by utilities and passed on to customers through their electricity charges.

The action came as the Legislature failed to pass a change sought by utilities to streamline how the Public Service Commission handles price increases for utilities when the cost of fuels such as natural gas rises.

The utility proposal had won the support of customer groups including the Citizens' Utility Board because it gave groups like CUB the chance for a public hearing before electric rates could go up. The utility measure passed in the Assembly but wasn't endorsed by the state Senate.

Doyle said in his veto message that the increased funding for CUB was unnecessary and that increases in funding for groups that lobby in utility cases should be tied to an increased caseload at the Public Service Commission.

CUB had lobbied for the funding because of lower foundation and grant funding tied to the economy. The funding it gets from the commission helps it hire and pay expert witnesses but doesn't cover the organization's operating costs, executive director Charlie Higley said.

"We were disappointed that Gov. Doyle vetoed our measure, but we recognize that in many people's minds our request was linked with the request by the utilities," Higley said.

Higley said he won't know until August or September how much less his group will be getting from foundations. CUB has a staff of three full-time employees, including Higley.

The veto was requested by the chairmen of the two energy committees, state Sen. Jeff Plale (D-South Milwaukee) and Rep. Jim Soletski (D-Green Bay), along with Rep. Pedro Colon (D-Milwaukee), a member of the Joint Finance Committee.

"I didn't think it made sense to do the CUB piece without doing the fuel rules," Plale said, adding they would be a priority to get passed this fall.

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