We Energies, WPS Ask For 2027, 2028 Electric Rate Increases

Electric meter. (CC0 Public Domain).

Two of the state’s largest utility companies are applying for nearly $500 million in electric rate increases over the next two years.

We Energies and Wisconsin Public Service, both owned by WEC Energy Group, filed requests Wednesday with the state Public Service Commission for rate hikes in 2027 and 2028.

The company says the rate increase will help cover the cost of bringing new solar, wind, battery storage and natural gas projects online, as well as fund investments in tree trimming, burying power lines and replacing aging equipment.

“No one wants to see rising energy bills,” said Brendan Conway, a spokesperson for We Energies and Wisconsin Public Service. “Our filing reflects the realities that our customers count on us every day for the energy they need. We recognize it’s our responsibility to continue providing safe and reliable energy while keeping customer bills low.”

But consumer advocates say the request comes as many are already struggling with high electric bills.

Tom Content, executive director of the Citizens Utility Board of Wisconsin, said people struggling to pay their energy bills are also worried about a lot of other household costs right now.

“They’re seeing the price of gas go up, they’re seeing the price of health care go up and then they just came off dramatically higher bills this winter for winter heating costs,” he said. “The combined effect of that is taking a toll on people.”

We Energies is asking regulators for a 4.7 percent increase to its base electric rates in 2027 and another 4.5 percent increase in 2028. The utility says that translates into a typical residential customer seeing a $13 increase in their monthly electric bill next year and an $8 to $9 increase the following year.

Meanwhile, Wisconsin Public Service is seeking a base electric rate increase of 6.3 percent in 2027 and another 3.5 percent increase in 2028. The utility says that comes out to an $11 increase in a typical monthly electric bill next year and a $5 to $5.50 increase the following year.

Data compiled by consulting firm Brubaker & Associates showed We Energies had the third-highest residential electric rates in the Midwest among investor-owned utilities in 2025, while WPS had the 18th-highest out of 52 utilities.

“We’re already seeing heightened concerns about affordability, and now it appears that we’re looking at a double-digit increase for residential customers again,” Content said.

Utility says proposed data center rates would cover billions in costs

We Energies and WPS officials say the rate proposals are dependent on the PSC approving special rates for data center customers. They expect regulators to make a decision on the data center rates in April.

“They work hand-in-hand,” said Bert Garvin, executive vice president of external affairs for We Energies’ parent company.  “Depending on what changes or improvements the commission makes to our proposal, (we) obviously have to consider that, as we continue to work through the regulatory process for this rate review.”

According to the company, its data center rate proposal will allow data centers to cover 85 percent of the cost of eight generation and storage projects hitting rates in 2027 and 82 percent of the cost of 10 projects hitting rates in 2028.

That comes out to data centers covering $2.2 billion and $2.8 billion, respectively, with We Energies and WPS non-data center customers splitting the remaining costs of those projects.

Additionally, the company estimates data centers will cover $1.9 billion in other costs over the next two years.

“This is the first time we’ve quantified the cost that our data center customers will be paying over the next two years,” Garvin said. “They’ll be directly charged to pay for their power usage, and that’s $1.9 billion.”

But Content argues the proposal doesn’t go far enough to make sure costs associated with data centers aren’t covered by other customers.

“Until the PSC fixes the problems that we found in the We Energies data center rate case, we think costs are still going to be passed to residential customers and all other customers,” he said.

Listen to the WPR report

We Energies, Wisconsin Public Service seeking rate hikes in 2027, 2028 was originally published by Wisconsin Public Radio.