Monopoly electric utility companies in Wisconsin are seeking massive bill increases on their customers because these companies are malinvesting $800 million by building new wind turbines, solar panels, and natural gas plants to replace the state’s retiring coal fleet.
Under the proposal, a typical residential We Energies customer’s electric bills could rise by $19 per month in 2026, and Wisconsin Public Service customers could see their monthly bills rise by $18 per month in the same timeframe, according to a report from WPR.
These bill increases come at a time when WE Energies has increased prices on its customers every single year since 2019. If these rate hikes are approved, these customers will see their electricity rates rise by a jaw-dropping 23 percent in just the last five years.
According to filings with the state’s Public Service Commission, the beatings are likely to continue into the future.
For example, WE Energies declared:
“Ongoing capital investment to transition the electric generation fleet accounts for a significant portion of the company’s 2025 and 2026 revenue deficiencies. The Commission has authorized Wisconsin Electric to invest over $1 billion in these efforts between 2020 and 2023 and the company plans to invest more than $3 billion more between 2024 and 2027 (emphasis added).“
Wisconsin Public Service is also spending enormous sums of money to “transition its fleet:”
Ongoing capital investment to transition WPSC’s electric generation fleet accounts for a significant portion of the company’s 2025 and 2026 revenue deficiencies. The Commission has authorized WPSC to invest over $500 million in these efforts between 2020 and 2023 and the company plans to invest more than $400 million more between 2024 and 2027.
This means that these two utility companies are seeking to increase spending by more than $4.9 billion dollars between 2020 and 2027. Laughably, a WE Energies spokesperson claims that spending $4 billion upfront over seven years will save ratepayers $2 billion in the long run. If you believe that, I have a carbon-neutral bridge in Waupaca County to sell you.
We know prices are rising due to poor investments in wind turbines and solar panels, but why are the utilities allowed to exploit Wisconsin families and businesses like this?
The problem stems from the fact that Wisconsin has the worst regulatory model in the nation for containing costs. As we detailed in our 2022 report, Wisconsinites are forced to purchase their electricity from government-approved monopoly utilities in exchange, but they are not getting reasonable rates and reliable service in return. But unlike in other states across the country, utilities in Wisconsin can close down their reliable power plants without needing final approval from regulators at the Public Service Commission (PSC).
As a result, Wisconsin’s electricity system is the worst of both worlds, featuring no regulatory oversight and no consumer choice.
Wisconsin lawmakers must stop utilities from forcing their constituents to pay the massive costs associated with WE Energies and Wisconsin Public Service’s Green New Deal. This would include strengthening the PSC to allow them to deny the closure of existing power plants and implementing “Only Pay for What You Get” to stop the profiteering by monopoly utilities.