We Energies Rate Hike for 2024

  • June 22, 2023
870 450 Tom Content

WE ENERGIES RATE CASE HIGHLIGHTS

Update: In December 2023, the PSC reviewed and approved We Energies’ proposal to raise prices in 2024. See CUB’s Press Release here: PSC to We Energies: More Savings Needed for Customers When Coal Plants Shut Down – Citizens Utility Board (cubwi.org)

In May 2023, We Energies filed an application to change electric rates in 2024.

In PSC case 5-UR-110, We Energies sought:

Electric increase: $86 million (2.5%) 

  • Projected increase for residential customers – 3.1%, or $3.87 per month for a typical residential customer using 660 kWh of electriciy per month
    Natural gas increase:
  • $22.2 million, or 2.9% for Wisconsin Gas customers
  • $23.9 million, or 4.5% for Wisconsin Electric Gas customers

KEY ISSUES IN THIS CASE

  • Dead Coal Profits: The utility seeks to keep earning profit long after the older Oak Creek coal plant shuts down in The PSC will review alternatives to save customers money.
  • New Solar, LNG plants: Roughly half of the electric hike is linked to new generation projects such as solar and natural gas plants. LNG projects are driving the natural gas increase.
  • Point Beach: The costly power purchase agreement electricity generated by the Point Beach nuclear plant is pushing up fuel costs in this case.

AFFORDABILITY

  • We Energies’ Low Income Forgiveness Tool, launched in 2021, was reviewed and modified. The PSC reviewed the utility’s policies, including a $600 reconnection down payment.
  • We Energies, CUB, Walnut Way and others are collaborating to develop other ideas, such as a percent of income credit, to help customers who are struggling to make ends meet.

UPDATE ON PROFITS

  • WEC’s Wisconsin utilities reported $758 million in profit in 2022. The WPS profit rate won’t be changed this year because that was decided in 2022.
  • The PSC reduced We Energies’ profit rate to 9.8%, still far too high.
  • CUB advocated for a bolder reduction, to 9%, for We Energies.
  • Customers across the country are overpaying by billions from profit rates that have remained far too high for far too long.

DIVVYING UP THE PIE

  • CUB argued for the PSC to take a fresh look at the analysis it uses to divvy up costs among residential, small business and large customers including big factories. Update: The PSC agreed with CUB and said it would kick off a new investigation in 2024.

TIMELINE

  • Ongoing: PSC Audit, Analysis
  • September: CUB experts, PSC staff weigh in
  • Oct. 9: Public Hearing, 2 p.m. and 6 p.m. in Milwaukee
  • Nov. 21, 2023: PSC Meeting to Discuss and Decide the Case. See YouTube video here.
  • Dec. 20, 2023: PSC Final Decision; read it here.

FIND OUT MORE

  • See the filings in the case at the PSC here.

HAVE YOUR SAY