The City of Milwaukee is challenging We Energies’ proposed 14% electric rate hike for residential customers.
The Milwaukee Common Council unanimously passed a resolution May 12 opposing We Energies’ request to raise residential electric rates by around 14% in 2027 and 2028, saying the hike saddles city residents with “unacceptable” energy costs.
“We Energies has continued to ask for more and more from our residents in recent years,” said District 14 Ald. Marina Dimitrijevic. “City ratepayers should not have to continue to shoulder this type of grossly disproportionate energy burden that limits families’ economic freedom.”
We Energies’ proposal, filed to the Public Service Commission in April, asks for an overall electric rate increase of 9.25% through 2028. The typical residential customer’s bill would rise $14.67 per month in 2027 and another $8.69 per month in 2028.
The state Public Service Commission sets utilities’ electric, natural gas and steam rates. The resolution authorized the Milwaukee city attorney to serve as an intervening party in the case.
Dimitrijevic said the city will push regulators to reduce or reject We Energies’ rate increases on behalf of low-income residents, who have struggled for years to cover the rising costs of basic expenses.
“When you add (the rate increases) to a city that already has housing instability, food insecurity, the burden is so heavy that people can’t thrive, they can barely survive,” she added.
We Energies has said much of the increase is to cover new construction as the utility transitions its generation fleet to renewable energy.
The utility is also seeking billions of dollars in new solar, wind and natural gas projects to serve hyperscale data centers, including Microsoft’s campus in Mount Pleasant and Vantage’s data centers in Port Washington. We Energies says none of these costs will show up in existing customers’ bills.
“Our request includes more than $225 million in savings from federal tax credits and earnings sharing,” said We Energies spokesperson Brendan Conway. “Our filing also confirms that data centers will pay their full share – no costs to serve data centers are shifted to other customers.”
The commission in April approved We Energies’ plan to create a special electric rate for large data centers, which it says will protect existing customers from data center-related costs. Commissioners made a series of modifications to strengthen customer protections and transparency.
If approved, We Energies will have raised electric rates six times since 2020. The Public Service Commission approved residential rate increases of 13% for 2024 and 2025, and 11% for 2022 and 2023.
The typical We Energies electric bill in 2028 would total $166, up around 50% from 2022.
Conway said any customer struggling to pay their energy bill should contact We Energies so they can be connected with help.
“We offer access to energy efficiency rebates and programs to help reduce energy use and costs. We offer budget billing so customers know exactly what their bill will be each month. And we can connect customers to comprehensive assistance programs that help provide monthly bill credits,” Conway said.
To reduce customer costs, consumer advocates are calling on the Public Service Commission to lower We Energies’ guaranteed rate of return on infrastructure investments.
The commission is expected to rule on We Energies’ proposal by the end of 2026. It will likely hold a public hearing on the case in the fall.
Francesca Pica can be reached at fpica@usatodayco.com.
This article originally appeared on Milwaukee Journal Sentinel: Milwaukee Common Council to challenge proposed We Energies rate hike
Reporting by Francesca Pica, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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