- Update: Check out the op-ed column in the Sunday Milwaukee Journal Sentinel taking WPS and its sister utility, We Energies, to task for the size of the rate hike and its plans to keep profiting for years to come after its coal plant shuts down.
We Energies wants rate increases for 2 years, but uses fuzzy math (jsonline.com)
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In April and May 2024, Wisconsin Public Service Corp. (WPS) filed an application to change electric rates in 2025 and 2026.
WPS is seeking total increases of $220 million over the next two years (2025-26) for its electric and natural gas utilities. This case comes after WPS customers already saw a double-digit hike from 2023 and 2024. Find out more about that case here.
CUB will be actively involved in the case, searching for savings and opportunities to pare back the size of the increase. Here are some key facts about the utility’s proposal in this case:
In PSC case 6690-UR-128, WPS is requesting:
Electricity bills
Requested electricity hike for 2025: $106.6 million, or 8.7%
Requested electricity hike for 2026: $65.8 million, or 4.9% on top of the requested 2025 increase
Total requested increase for 2025-26: $172.4 million, 14% above current prices
Residential impact for 465,000 customers in northeastern and north central Wisconsin: 20%, phased in over two years. 14.3% increase in 2025, 5.2% increase in 2026
For a typical customer using 660 kWh per month: $105 bill today would rise to $120.50 in 2025, and more than $6 a month in 2026, for a total bill of $127; total increase = $22/month
Small business impact: nearly 15% overall increase over two years
9% increase for 2025, 5.2% increase for 2026
Natural Gas bills
WPS natural gas increase for 2025: $26.8 million, or 6.8%
WPS natural gas increase for 2026: $16.1 million, or 3.7%
Total increase for natural gas: $42.9 million, nearly 11%
Impact on 344,000 residential customers in northeastern and central Wisconsin:
$3 to $4 a month in 2025, another $1.50 t0 $2 in 2026
Total increase: $4.50 to $6 per month by 2026
SPOTLIGHT ON DEAD COAL PLANTS
• WPS seeks to keep earning nearly 10% profit long after the Columbia Energy Center coal plant that it co-owns shuts down. The first part of that plant is slated to shut down by 2026.
• The PSC indicated last year it wanted utilities to come up with more alternatives to save customers money after coal plants retire.
• WPS is already building plenty of new projects as part of the energy transition, with customers footing the bill. As if that is not enough, WPS now wants customers to also continue to pay for coal plants that have been retired and aren’t providing energy to customers. In other words, WPS wants to have its cake and eat it too.
OTHER ISSUES IN THE CASE
• New Solar, Natural Gas, Battery plants: Roughly half of the electric hike is linked to new generation projects such as solar, battery storage and natural gas plants.
• Other Drivers: WPS is requesting more funds to manage vegetation, plus higher inflation costs and transmission costs.
• Affordability: CUB is concerned about the magnitude of the 2025-26 increase, particularly for customers struggling to make ends meet. CUB’s testimony analyzes the energy burden facing WPS customers, and found neighborhoods across northeastern and north central Wisconsin where customers are already facing high or severe energy burdens.
SPOTLIGHT ON PROFITS
• CUB’s advocacy helped convince the PSC to reduce profits for 2023 and 2024, bringing the utility’s return on equity down to 9.8% from 10% for WPS.
• In the new proposal, the utility wants to reverse those gains and hike its return on equity back to 10%. CUB is urging the PSC to continue its move to bring down profits, and recommends a 9.3% return on equity, which would save customers $38 million!
• Wisconsin investor-owned utilities already get the fifth highest profit rates in the country, forcing customers to shoulder energy bills that are too high.
RESTORING BALANCE BETWEEN SHAREHOLDERS AND CUSTOMERS
• CUB is concerned that utility customers of WPS could end up joining We Energies in paying among the highest rates in Wisconsin, and the Midwest. The forecasted increase for the next two years is well above the projected increase in the overall cost of living.
• Customers’ bills have nearly doubled over the past 20 years. Meanwhile, income and wealth disparities between the wealthiest Wisconsinites and everyone else continue to grow.
• Shareholders of WPS’ parent company, WEC Energy Group, have done exceedingly well during that time, with gains for WEC doubling the returns of a typical utility.
EXPECTED TIMELINE
- April, May: Application filed.
- Spring, Summer: PSC Audit, Analysis
- August-September: CUB experts, PSC staff and other groups weigh in
- Oct. 10: Public Hearings 2 p.m. and 6 p.m. in Ashwaubenon
- Oct. 14: Last Day to submit public comments on PSC Website
- November: PSC Open Meeting to decide the case
- December: PSC Decision to be issued
FIND OUT MORE
HAVE YOUR SAY
Provide a comment during the public hearing, either in person or over Zoom, at 2 p.m. and 6 p.m. in Ashwaubenon, just south of Green Bay.
- Attend the Oct. 10 hearing in person in the Activity Room at Ashwaubenon Community Center, 900 Anderson Drive, Ashwaubenon, WI 54315.
OR
- Attend the Oct. 10 hearing via Zoom at https://us02web.zoom.us/my/pschearings or by calling (312) 626-6799, using Meeting ID 809 513 2930.
OR
- Submit a written comment on the PSC website by Oct. 14, 2024.