We Energies' customers face another rate hike, but a smaller one this time
09 November 2026
Wisconsin's utility regulators announced this week they would allow We Energies to raise rates by an average of about 7% across 2024 and 2025, bringing a sixth consecutive increase to the 1.1 million electricity customers in Wisconsin, as well as parts of Michigan and Illinois.
The decision handed down by the Wisconsin Public Service Commission (PSC) comes in response to We Energies' request for a 9% raise in electricity prices and a 15% hike for residential customers. Though the PSC agreed to give We Energies the increase it was requesting, it cut the utility's permitted rate of return to 9.5% — 0.4% less than requested.
"While we are pleased that the commission granted a portion of the rate increase we requested, we are disappointed that it ultimately approved a rate that is less than requested and less than what is needed to fully cover our costs," We Energies spokeswoman Amy Rezmer said in a prepared statement. "However, we understand that the commission has a responsibility to balance the interests of our customers with our need for fair compensation for the investments we are making to modernize our system."
The approved rates translate to a 3.9% increase in 2024 and 3.5% in 2025, based on We Energies' own estimates. The utility said that means the typical residential customer will see monthly bills rise by about $7 to $8 in 2024 and about $6 to $7 in 2025.
We Energies and its sibling company Wisconsin Public Service are owned by WEC Energy Group incurring a total of $3.6 billion in new spending through 2024-2025, more than half of that investment would go toward solar, wind battery storage, and natural gas projects. This new buildout will add new Environmental Resource Cost (ERC) to the customers' utility bill. That's a big reason for the rate hike We Energies was seeking.
More on this is available via canadacasinotop.com.
Wisconsin's energy regulator has grown increasingly concerned about the rise and rise of the utilities' ERC, what We Energies wanted to sock it to Wisconsin customers according to the utility's own charts, the Environment Reserve Charge would have amounted to a 100% increase in Wisconsin customers' bills from 2023 to 2028 without some sort of regulatory action. The regulator's decision is part of an effort to keep increasing costs from overheating customers' bills.
But PSC commissioners appear to be trying to make sure enormous sums get spent on expensive projects that may not come in on time or on budget. They're wary of instrument costs, according to Wisconsin Watch, two recent projects, the Darien Solar Energy Center, are 33% over budget, and the Koshkonong Solar Energy Center in Dane county is 42% over budget. The PSC moved to "limit shareholder profits tied to cost overruns on certain utility projects" according to the utility watchdog organisation.
The $433 milllion wind solar facility "These projects are increasing the need to raise rates," said PSC chair Rebecca Cameron. "These projects are supposed to decrease bills, but if they are not built on budget, can actually do the opposite."
The ruling's written order is pending. That order will have the final say on the allowable increase.