Wisconsin Regulators Approve Rate Hikes for Electric and Natural Gas Customers

Monday, December 5th, 2022 -- 12:00 PM

(By Danielle Kaeding, Wisconsin Public Radio) Wisconsin utility regulators approved rate hikes for electric and natural gas customers served by two of the state’s largest utilities on Thursday, but they reduced profits utilities can collect amid outcry from financially-strapped ratepayers.

According to Danielle Kaeding with Wisconsin Public Radio, the Wisconsin Public Service Commission approved overall electric rate hikes of 8.8 percent for We Energies and 9 percent for Wisconsin Public Service, according to commission staff.

The increase is higher than what utilities initially proposed, but less than changes they suggested later that would have shifted more costs to residential customers. This fall, the utilities owned by Milwaukee-based WEC Energy Group asked for electric rate hikes of 13 percent for We Energies residential customers and a nearly 15 percent increase for Wisconsin Public Service, or WPS, ratepayers.

That increase would have cost the average homeowner at least $14 more per month beginning in January. Now, We Energies residential customers will see a nearly 11 percent increase that will cost them $11 to $12 more per month, according to preliminary figures from the commission and utilities.

WPS customers will spend $9 more per month. The rate hikes come as customers are struggling with rising prices and record-high inflation this year. "It didn't pan out too well for residential customers, particularly for We Energies," Tom Content, executive director of the Citizens Utility Board, said.

"One of the key bottom lines from the customer's point of view was that a double-digit increase would just be unfair and hard to swallow for residential customers in 2023. At the end of the day, that's what we're left with."

Commissioner Tyler Huebner noted more than 1,700 people weighed in on We Energies’ proposal to raise rates, citing cost pressures. For natural gas, commission staff estimate rates will increase 6.2 percent, or roughly $47 annually, for Wisconsin Gas customers and 9.5 percent, or roughly $63 annually, for Wisconsin Electric Gas customers.

WPS gas rates will climb 7 percent overall. With heating bills slated to rise, the utilities expect gas customers to pay $20 to $30 more per month this winter, including the rate hikes.

Utilities are raising rates as they face increasing costs due to inflation, clean energy projects and plans to increase the resiliency of its system in the face of extreme storms. Brendan Conway, spokesperson for the utilities, said they’re still evaluating the decision.

Even so, he said typical bills for residential customers will remain under the national average. Initial figures from the PSC show the two utilities combined can collect roughly $503 million more next year despite commissioners voting 2-1 to reduce profit margins for utilities to 9.8 percent.

That’s a savings of roughly $20 million for ratepayers.

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