Executive Director of Citizens Utility Board Warns Rate Increase Could Fuel Company's Profit Margins

Tuesday, June 6th, 2023 -- 2:01 PM

(By Jonah Beleckis, Wisconsin Public Radio) As several investor-owned utilities in Wisconsin are seeking to raise customer rates, a consumer watchdog warns the money could fuel profit margins even higher beyond nationwide averages.

According to Jonah Beleckis with Wisconsin Public Radio, Tom Content is executive director of the Citizens Utility Board. He recently appeared on Wisconsin Public Radio’s "The Morning Show" to discuss electricity and gas rate hikes proposed this year by Alliant Energy, Madison Gas and Electric, We Energies and Xcel Energy.

In requests to the state’s utility regulator, the Public Service Commission, some companies say the higher rates would help fund renewable energy projects. But Content worries the hikes also aim to benefit investors.

"In particular, Alliant Energy and Xcel Energy are seeking to actually have more money flow to their profit and to their shareholders through their proposals," he said. The Citizens Utility Board says Alliant would shift its finances to raise more money through stockholders instead of borrowing, which would cost less, while Xcel is seeking to raise its profit rate by 10.25 percent.

That’s more than the national average of 9.6 percent, Content said. "Alliant is seeking to have more dollars flow in through its (10 percent) profit rate, also above the national average," the Citizens Utility Board says on its website.

Alliant officials say hiking customer rates now will help build a "stronger energy future" and doing nothing would lead to "more costs down the road." Alliant and Xcel officials say their utilities need to advance clean energy technologies while moving on from aging infrastructure.

A fifth investor-owned utility, Wisconsin Public Service, is seeking approval to reduce customer rates because construction costs are expected to be offset by lower fuel costs, Content said.

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