Article Summary –
Two major Wisconsin utility companies, We Energies and Wisconsin Public Service Corporation, are proposing rate increases over the next two years, which could significantly impact residents, particularly given the existing high cost of living and inflation concerns. The requested increases amount to approximately $500 million in total and are intended to fund improvements in infrastructure and energy projects, while data centers are expected to share in the costs. The Citizens Utility Board of Wisconsin, a watchdog group, argues that these rate hikes are ill-timed and could exacerbate financial strain on consumers, with public hearings and a decision from the Public Service Commission expected by the end of the year.
Two leading Wisconsin utility companies, We Energies and Wisconsin Public Service Corporation, are urging the state Public Service Commission to approve their request for electric rate increases in the next two years. This proposal has sparked concerns from the Citizens Utility Board of Wisconsin, which argues it could impact residents struggling with expenses.
We Energies is seeking a 4.7% rate hike for 2027, translating to about $13 more monthly for customers, and a 4.5% rise for 2028, costing $8 or $9 more monthly.
Wisconsin Public Service Corporation proposes a 6.3% increase in 2027, adding $11 to monthly bills, followed by a 3.5% rise in 2028, which equals $5 more per month.
Both utilities belong to WEC Energy Group, and their combined requests could total nearly $500 million over two years.
Tom Content, executive director of the Citizens Utility Board of Wisconsin, notes the burden from past high heating costs and ongoing expensive health care and housing.
“It’s a challenging time for significant hikes,” Content remarked.
In response, a spokesperson referred to a We Energies post highlighting the importance of the rate increase for funding essential projects like tree-trimming, power line burial, and replacing aging infrastructure. It also supports solar, wind, battery storage, and natural gas projects.
The adjustment includes $225 million from federal tax credits and earnings sharing, and $1.9 billion in costs from data centers known for high electricity use.
“Our commitment is to maintain reliable and affordable energy,” We Energies President Mike Hooper stated.
Content mentioned an ongoing case before the Public Service Commission concerning data center contributions to new power plants, potentially influencing future rate proposals.
As it is, the proposed increases exceed inflation, and affordability remains a key concern. A Marquette Law School poll in March showed 35% of voters prioritized inflation and living costs.
The Citizens Utility Board, active for over 40 years, intends to identify cost-saving measures in the proposal, having succeeded in such efforts previously.
The Public Service Commission’s auditors and analysts will review the filings in the coming months. Public hearings are scheduled for fall, with a decision expected by year-end.
—
Read More Wisconsin News
