Regulators approve scaled-back rate hikes for We Energies, Wisconsin Public Service

The hum of refrigerators, the glow of lamps – these everyday comforts are about to cost Brookfield residents a bit more. After a lengthy review process, state regulators have approved scaled-back electric rate increases for We Energies and Wisconsin Public Service (WPS), both utilities serving our community. While the increases are lower than initially requested by the companies, they arrive after years of steadily rising costs that have undeniably pinched household budgets and strained small businesses.

The Public Service Commission (PSC) approved a 3.9 percent rate increase for We Energies in 2027 and a 3.5 percent increase in 2028, and a 0.3 percent increase in 2027 and 2.9 percent in 2028 for WPS. We Energies had initially requested a 4.6 percent increase in 2027 and another 4.5 percent in 2028. Had the full request been granted, consumer advocates estimate residential customers would have faced a 16 percent increase over two years.

What Happened

The approved rate increases follow a period of significant price volatility for energy consumers in Wisconsin. From 2022 to 2026, a typical We Energies customer’s bill has already increased by 33 percent, according to the Citizens Utility Board of Wisconsin (cubs.org). Statewide, energy bills have risen a total of 24.6 percent since 2020. A typical We Energies residential customer can expect their monthly bill to rise by $7 to $8 in 2027 and $6 to $7 in 2028, while a typical WPS residential customer will see an increase of around $1 or less in 2027 and $5 to $6 the following year. These figures, provided by WEC Energy Group, the parent company of both utilities, underscore the cumulative impact of these adjustments on family finances.

Consumer and environmental groups, while appreciative of the reduced hikes, felt that regulators could have gone further in light of years of rate increases. Tom Content, executive director of the Citizens Utility Board of Wisconsin, stated that the PSC sent a message that costs would be more closely scrutinized due to affordability concerns. “They did some things that the PSC has been reluctant to do in the past in the name of affordability,” Content said. “I think we saw some significant steps forward in oversight and accountability and affordability for utility customers.”

Community Reaction

Customers Feel Pinched After Years of Hikes

The rate increases have been met with mixed reactions from the community. Small business owner Lisa Geason-Bauer testified at a public hearing in September, expressing the difficulty of growing her company due to rising electricity costs. She stated, “Since 2020, we’ve had five rate increases. This will be the sixth rate increase, and we can’t do it anymore.” Geason-Bauer told the PSC that residents of We Energies territory are feeling the pinch of all these increases, making it very difficult for businesses to grow.

PSC Commissioners Roll Back Rate Proposals to Boost Affordability

During Thursday’s meeting, PSC Chair Summer Strand acknowledged the growing affordability concerns, stating, “We heard you loud and clear that utility rates are too high, and that your monthly bills are already a financial burden.” Commissioner Kristy Nieto echoed this sentiment, noting that We Energies is among the nation’s most profitable utilities and that even moderate-income Wisconsinites are struggling to keep up with rising costs. She emphasized the commission’s responsibility to ensure rates are “just and reasonable,” not simply to approve utility requests, and to consider the overall impact on consumers. “Rates cannot be so high that they become unjust or oppressive to consumers,” Nieto said. “The standard is not to maximize the utility’s return… It is to reach an overall just and reasonable result based on the record before us.”

What's Next

The rate hikes will be phased in over the coming years, with customers beginning to see the changes reflected in their monthly bills. The PSC reduced the profit rate for both We Energies and WPS from 9.8 percent to 9.5 percent, a move expected to generate significant savings for consumers. Additionally, the commission eliminated WEC Energy Group board of director expenses from being included in customer rates, saving We Energies customers more than $2.4 million annually. The PSC also took action to level out the payments the utilities have to make on retired coal plants, including coal units in Oak Creek set to retire in 2027.

The approved rate increases come as utilities — including We Energies — have been rushing to meet an expected 40 percent spike in energy demand by 2032, fueled by data centers under construction in Wisconsin, by proposing and building new power plants. PSC Chair Strand noted that the state’s utility regulatory framework may be outdated and insufficient to meet these demands. “The time to mobilize, organize, and advocate for substantive changes to the PSC’s legal framework is now,” said Strand. “We three commissioners and the PSC proper have repeatedly and publicly critiqued the existing framework, highlighting gaps and insufficiencies, lamenting the lack of tools and teeth.”

Katherine's Take

The approved rate increases, while moderated, underscore a troubling reality: the cost of powering our homes and businesses is only going to continue to rise. It’s a burden that falls heaviest on families already stretched thin, particularly those with young children or elderly parents relying on fixed incomes. The PSC’s acknowledgment of this hardship and their attempts to rein in utility profits are welcome, but they are ultimately a band-aid on a larger wound.

What concerns me most is the long-term impact on the stability of families and communities. When basic necessities like electricity become increasingly expensive, it forces difficult choices – choices that can impact everything from meal planning to educational opportunities. Strong families are built on a foundation of stability and security, and when those foundations are eroded by rising costs, the consequences can be profound.

The PSC’s call for legislative reform is a critical moment. We need lawmakers to step up and address the underlying issues driving these rate increases, including modernizing our energy infrastructure and ensuring fair and transparent regulatory processes. The future of our community depends on it. It’s also a reminder of the importance of personal responsibility – conserving energy, exploring alternative options, and supporting local initiatives that promote sustainability.

Resources

For more information and assistance with managing energy costs, residents can access the following resources:

• Wisconsin Public Service: wpsenergy.com
• We Energies: we-energies.com
• Citizens Utility Board of Wisconsin: cubs.org
• Wisconsin Public Service Commission: psc.wi.gov
• Wisconsin Department of Administration – Energy Bureau: doa.wi.gov
• Wisconsin Chamber of Commerce: wisbusiness.com

These resources offer information on energy assistance programs, conservation tips, and ways to navigate the complexities of utility billing.

WEC Energy Group spokesperson Brendan Conway said the commission’s approval allows the company to invest in new energy generation and to continue tree trimming and burying powerlines to reduce outages. “We recognize our responsibility to continue providing safe and reliable energy, while keeping customer bills as low as possible,” Conway said in a statement. He added that the PSC actions on Thursday also ensure “no costs to serve data centers are shifted to other customers.”

The approved rate increases represent a significant challenge for many Brookfield residents, but also an opportunity for our community to come together and advocate for a more sustainable and affordable energy future. By staying informed, engaging with our elected officials, and supporting responsible energy policies, we can work towards ensuring that the lights stay on for all.