Wisconsin residential customers of two utilities are on the hook for at least $304.5 million in higher rates on their electric and natural gas bills over the next two years.
That’s $86.1 million less than what Alliant Energy and Xcel Energy sought for 2026 and 2027, according to preliminary figures the Public Service Commission shared with WisPolitics.
When the full increase kicks in starting on Jan. 1, 2027, the average residential Xcel customer will pay $24.91 more for electricity a month than they do now and an additional $8.70 for natural gas. The typical Alliant customer, meanwhile, will pay an additional $17.45 a month for electricity starting in 2027 compared to now and $1.80 extra for gas.
The rate approvals come on the heels of rising utility costs being a major campaign issue in the New Jersey gubernatorial race.
A year ago, the PSC approved a nearly $550 million increase for gas and electric over two years for We Energies, which serves about 1.17 million electric customers in southeastern and northeastern Wisconsin and 1.17 million gas customers across much of the state. The agency also approved a nearly $183.5 million increase over two years for Wisconsin Public Service, which covers 470,000 electric customers and 347,000 gas customers in northeastern and central Wisconsin. Meanwhile, the PSC on Thursday will take up Madison Gas & Electric’s rate increase request for 2026 and 2027.
Jerry Ponio, legislative director of the conservative AFP-Wisconsin, knocked the latest increases, saying it was “proof that the current system under (Dem Gov. Tony) Evers is broken.”
“Skyrocketing energy bills are hurting Wisconsin families, renters, and small business owners already struggling to make ends meet, pushing the American Dream further out of reach,” Ponio said.
The PSC met Nov. 6 to vote on the Alliant and Excel rate proposals. It released preliminary numbers to WisPolitics after calculating the impact of various decisions commissioners made related to the utilities’ requests. The rates won’t be finalized until the PSC publishes its final order in the coming weeks, an agency spokesperson said.
Alliant Energy serves about 1 million electric customers and 430,000 gas customers in Iowa and Wisconsin, while Xcel Energy as of last year served 250,000 electric and 114,000 gas customers in northwestern Wisconsin and Michigan’s Upper Peninsula.
For Xcel Energy, the approval amounts to a $126.1 million increase in retail electric revenue, $24.6 million less than the utility’s initial $150.7 million request. The PSC also approved $22.2 million for retail gas revenue, $2.2 million less than the $24.4 million Xcel Energy had sought. The body also signed off on a profit rate of 9.8%.
Under state law, the PSC is required to approve rate increases that cover utilities’ reasonable costs and the opportunity to turn a profit.
According to the PSC, the average Wisconsin residential Xcel Energy customer with an energy usage of 698 kilowatt-hours per month can expect to see a $13.47 increase on their monthly electric bill starting Jan. 1. The average electric increase starting Jan. 1, 2027, is expected to be $24.91 higher per month compared to current bills.
For natural gas bills, residential customers can expect an average $7.08 monthly increase starting Jan. 1. Those bills will be $8.70 higher than they are now starting Jan. 1, 2027.
Xcel Energy spokesperson Chris Ouellette in a statement to WisPolitics said the increases will help the company to invest in a more resilient, advanced and secure energy grid with new and upgraded infrastructure, technology and customer support.
“With customers facing rising costs in many areas of their lives, we understand that higher energy bills can be challenging,” Ouellette said. “Our approved rates also include a new energy assistance program specifically designed for residential customers needing additional support. We remain committed to working with our customers to offer solutions such as payment plans and assistance programs.”
Meanwhile, the PSC approved a $144.1 million electric revenue increase for Alliant Energy, a $57.8 million decrease from the Madison utility’s overall $202 million request for 2026 and 2027. The agency also approved a $12.3 million increase in gas revenues for that period, a $1.5 million decrease from the company’s $13.8 million request.
As a result, Alliant’s average Wisconsin residential electric customer is expected to see a monthly increase of $9.57 in 2026. In 2027, the average customer’s bill will be $17.45 higher than what it is now, for increases of 8.22% in the first year and 14.98% in the second.
The utility’s average residential gas customer is expected to see a $1.08 monthly increase next year and a $1.80 monthly increase in 2027, rising about 3% and 5% from current rates, respectively.
“We appreciate the Commission’s approval of our unanimous settlement agreement as we continue investing in a balanced energy mix, expanding customer options and supporting community growth,” said Becky Valcq, associate vice president of regulatory affairs for Alliant Energy and a former PSC commissioner. “Wisconsin’s constructive regulatory landscape and strong collaboration with local stakeholders support our commitment to cost-effective, reliable energy.”
