The head of the Citizens Utility Board of Wisconsin expects WEC Energy Group utilities’ rate increases for 2025 and 2026 will be “well below” what the Milwaukee-based company is seeking.
In rate cases filed recently with the Public Service Commission, We Energies and Wisconsin Public Service Corp. are seeking more than $800 million in rate increases for customers in eastern and northern parts of the state, according to a recent CUB release.
In a statement on the filings, CUB Executive Director Tom Content says the PSC “will need to evaluate very carefully” the impacts of the proposed rate changes. He argues the customers that would be hit with the increase “are already paying among the highest prices in the Midwest” for electricity.
“From the filing it appears that We Energies wants to have its cake and eat it too: They want to make money on all the new solar and natural gas plants they ‘re looking to build, and they want to keep profiting on coal plants long after they’re shut down,” Content said in a statement.
In a filing with the PSC, WEC Energy Group Executive Vice President of Internal Affairs Robert Garvin says We Energies’ requested rate increase will allow the company to improve reliability, invest in new generation and distribution projects and comply with anticipated emissions rules as it moves away from coal to renewables and natural gas.
He wrote the proposal will “result in just and reasonable rates while we continue to provide affordable, reliable, and clean electric and natural gas service.”
A WEC Energy Group spokesperson told WisBusiness.com the filing aims to reduce customer outages, build infrastructure in the state and meet the new EPA environmental rules. The spokesperson said “the vast majority” of the filing is to recover the costs of renewable and low-carbon power plants already approved by the PSC.
He also highlighted “critical investments in storm hardening” as increasingly important, noting the state is experiencing stronger and more frequent severe storms. The company is proposing to bury hundreds of miles of power lines in the coming decade and do more tree trimming, according to the emailed statement.
“The request includes millions of dollars of savings from the closure of the old coal units at the Oak Creek Power Plant as well as tens of millions of dollars in tax credit savings tied to new renewable energy facilities,” the spokesperson wrote. “Typical residential electric bills are significantly below the national average and in line with other utilities in Wisconsin and across the Midwest. If this request is fully approved, that will still be true.”
Meanwhile, the Wisconsin Industrial Energy Group is urging the PSC to “drastically reduce” the proposed rate increases by WEC Energy Group. This association of some of the state’s top energy consumers notes its members collectively spend more than $400 million on electricity each year.
“Wisconsin’s ratepayers simply can’t afford additional cost burdens,” WIEG Executive Director Todd Stuart said in a statement. “High electric rates are effectively a tax on all Wisconsin homeowners and businesses.”
As the rate cases proceed, Content is urging homeowners, renters and small businesses to “raise their voice” during public hearings being held this fall.
