For years, CUB has urged Wisconsin regulators to bring more balance and common sense to decisions in utility rate cases: protect customers, hold shareholders responsible for corporate costs and stop rewarding utilities for waste.

In decisions reached Thursday during a marathon meeting, CUB’s advocacy resonated in a profound way at the Public Service Commission of Wisconsin.

The PSC agreed to a set of unprecedented changes in the We Energies rate case. Commissioners cut the utility’s proposed rate hike, reduced profits, ended returns on certain cost overruns, trimmed profits on closed plants, and shifted board fees from customers to shareholders.

“Voters in Wisconsin and across the country sent a message that affordability is job one, and we couldn’t agree more,” said Tom Content, CUB executive director. “Utilities are on notice that regulators will be scrutinizing their costs more closely from now on.”

Customers will still see higher monthly bills over the next two years. But the increase will be far smaller than the $449 million We Energies sought, and the PSC’s decisions could save customers hundreds of millions of dollars compared with the utility’s plan.

Where the PSC agreed with CUB

The commission adopted several of CUB’s central recommendations:

• Shareholders, not customers, must pay the company’s board of directors fees.
• We Energies’ authorized profit must come down.
• The utility cannot earn a profit on certain project cost overruns.
• Profit on power plants that are no longer operating was scaled back.
• The utility must build a portfolio of energy-saving and demand-response programs for customers.

These decisions mark a meaningful shift toward CUB’s call for common sense and fairness between utility investors and the people who pay the bills. They also recognize a basic reality: customer bills have risen faster than the overall prices for years.

What the changes mean for customers

• Lower utility profit: The PSC reduced We Energies’ profit level, saving customers close to $80 million over two years. CUB sought a larger reduction that would have saved $200 million.
• Less spending on closed plants: Customers continue to pay for power plants that no longer operate. The PSC cut those costs by $31 million in 2027, with a similar reduction expected in 2028.
• No full profit after Oak Creek closes: The Oak Creek coal plant is scheduled to close late next year. The PSC reduced the profit We Energies can earn on the plant after it shuts down, saving customers $31 million in 2028.
• Board fees paid by shareholders: Customers will no longer cover the company’s board fees. Moving that cost to shareholders will save about $5 million over two years.
• No profit on Paris solar overruns: We Energies cannot earn a return on cost overruns at the Paris solar project. In 2028, the PSC will review overruns at two additional sites in the next rate case.
• More ways to reduce peak demand: The PSC removed the enrollment cap for the Bring Your Own Device smart thermostat program and approved a CUB proposal for cost-effective demand response, which reduces electricity use when the grid is under stress.

A big step forward, and more work ahead

Content said the outcome shows that the PSC heard CUB’s case for a more balanced and common sense approach. The reductions are substantial, but CUB believes the commission could have gone further to protect customers.

The contrast remains stark. WEC Energy Group stock climbed above $120 per share on Thursday, setting a new high shortly before the PSC vote, while many households continue to struggle with rising costs.

The final monthly impact for a typical household may not be known until next month. We Energies may release an estimate sooner.

PSC members also called on state lawmakers to give regulators more tools to keep energy costs under control. CUB will continue pressing for those protections and for reforms that ensure large new users, including data centers, pay their fair share.

CUB is a nonprofit organization representing Wisconsin homeowners, renters and small businesses in the fight for fair utility rates. Read more about CUB’s common-sense approach to rising energy bills, follow this case at cubwi.org/active-cases, or learn practical ways to reduce energy costs at the Consumers Forum on Energy Affordability on Nov. 17 in Madison.

Register here to attend CUB’s affordability forum.