We Energies proposes rate hike, would be 3rd in 3 years
MILWAUKEE - We Energies has proposed raising utility rates again in 2025. If approved, it would be the third rate hike in three years.
The Wisconsin Public Service Commission has to approve the increase, and the public will have a chance to speak for or against it. We Energies said the "vast majority" of the increase would be used "to recover costs of renewable and low-carbon power plants."
"As we’re closing our older, less efficient fossil fuel plants, we’re building this new renewable generation and other low-carbon generation," Conway said. "We expect a long-term customer savings of about $2 billion over 20 years."
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The rate increase is also needed to cut customer outages, said Brendan Conway, a We Energies spokesperson. The provider has proposed burying hundreds of miles of power lines and increasing tree trimming. They also said it’s needed to build infrastructure and meet new U.S. Environmental Protection Agency rules.
"The investments we're making now will make sure the lights are going to stay on, through severe weather," said Conway. "No matter what the market changes are."
What does this mean?
The request includes millions of dollars of savings from the closure of the old coal units at We Energies' Oak Creek power plant, as well as tens of millions of dollars in tax credit savings tied to new renewable energy facilities.
Still, We Energies said bills will be below the national average. The electricity bill for a typical home would go up $10 to $11 per month in 2025, then $7 to $8 in 2026. The typical monthly gas bill would go up $6 to $8 per month in 2025. A typical We Energies residential heating bill was down $150 this winter compared to last winter. Steam customers would see an 8.4% increase in 2025.
Shana Gray opened her dream restaurant, Gray Jett Cafe, on the Marquette University campus in August – something she can't do without power.
"I was worried yesterday with the current billing, so yeah, worry is an understatement," she said of the proposed increase. "It's like a hit in my chest as a business owner.
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Gray said her utilities bill is already nearly $1,000 per month.
"That’s very detrimental to my existence and even being here," she said. "I would definitely hate to have to raise any prices to keep them from accessing real good, health food for the reason of not being affordable."
What's next?
Customers will soon see this information in a bill insert, and the Wisconsin PSC will host public hearings. They are expected to make a final decision later this year with We Energies planning for the new rates starting in January.
Citizens Utility Board of Wisconsin (CUB) opposes the higher rates. They said the typical bill in 2005 was about $57.59 – and currently, it’s $127. They said, if the bills had just kept up with inflation, the monthly bill would be about $95.
Statement from CUB Executive Director Tom Content
"WEC Energy Group shareholders have done extremely well over the past 20 years, at a time when costs for We Energies customers have doubled and risen faster than the cost of living."
"Shareholders of WEC Energy Group have enjoyed profits that are the highest in the state and well above the national average. High profits drive up costs and cry out for a more balanced approach that keeps the concerns of customers paying the bills top of mind."
"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."
"Saddling hundreds of millions of dollars of additional costs on customers who are already paying among the highest prices in the Midwest for electricity is something the Public Service Commission will need to evaluate very carefully."
"Today’s filing amounts to the utility’s opening bid and we expect that the final rate increases for 2025 and 2026 will be well below that bid.
"Our experts at CUB will dig in and look hard for savings. CUB encourages homeowners, renters, and small businesses to raise their voice during public hearings this fall."
