Advocates look to lower We Energies, WPS proposed double-digit rate hikes
Advocates are pushing back against proposed double-digit electricity rate hikes from We Energies and Wisconsin Public Service Corp. (WPS) in Wisconsin. Hearings are scheduled before the Public Service Commission for these increases, which the Citizens Utility Board argues are too high and contribute to already elevated energy bills. A key point of contention is the funding for new power plants, with a recent decision requiring tech companies, including data centers, to cover 100% of these costs.
We Energies and Wisconsin Public Service Corp. (WPS) are facing opposition to their proposed double-digit electricity rate hikes over the next two years. The Citizens Utility Board (CUB) is leading the charge against these increases, which will be reviewed by the Public Service Commission (PSC) in separate hearings.
We Energies attributes its proposed 16.3% residential increase to new power plants, solar and battery projects, inflation, and higher fuel costs, alongside a desire for higher profit margins. CUB notes that decisions regarding data centers' energy payment responsibilities should influence We Energies' proposal, specifically referencing a mandate for tech companies to cover 100% of new power plant costs, up from a previous 75%.
CUB proposes lowering We Energies' return on equity from 9.9% to 9.1%, which they estimate would save consumers over $100 million annually in 2027 and 2028. They argue that Wisconsin's investor-owned utilities already enjoy some of the highest profit rates in the nation, leading to excessively high energy bills for customers. Similarly, CUB is challenging WPS's request for a 9.9% return on equity, suggesting their proposed 9.1% would save WPS customers an estimated $54 million in 2027 and $57 million in 2028. CUB highlighted that WPS's parent company, WEC Energy Group, reported over $1.6 billion in profit in 2025, primarily from its Wisconsin utilities, and that a typical WPS customer's bill has more than doubled in the last 25 years.