BUSINESS

We Energies, WPS want to increase rates by $60 to $72 a year for the average residential customer starting in 2023

Corrinne Hess
Milwaukee Journal Sentinel

WEC Energy Group is seeking approval from state regulators to increase its electric rates between 5% and 6%, or about $60 to $72, for the typical residential customer, starting in 2023. 

The increase will affect We Energies customers and WPS customers. The last time WEC Energy Group asked for a rate increase was in 2019.

The average We Energies residential customer currently pays about $109 per month, up about 14% from 2011. 

The average WPS customer pays about $92 per month, up about 19% from 2011. The national average is $122 per month. 

More:We Energies is creating a new solar farm in Oak Creek

More:New plan points Wisconsin toward energy independence with carbon-free electricity replacing out-of-state fuel sources

"Even with this request, when you look at us, versus our peers, even with this request, our bills will remain below the national average and in line with the Midwest average," Bert Garvin, executive vice president of external affairs, said in an interview with the Milwaukee Journal Sentinel. 

In addition, We Energies natural gas customers would see a small increase in their monthly bills in 2023 as part of the plan. Bills for We Energies steam customers in downtown Milwaukee would remain relatively flat in 2023.

The Public Service Commission will determine the actual rate increase after reviewing the application and holding a hearing, which will be scheduled for a later date.

After having kept rates frozen for four years the utility raised rates 1.9% in 2020. Rates were not raised in 2021 or 2022.

WEC Energy Group is asking state regulators to increase electricity rates in 2023. It would mean a $5 to $6 increase for average residential customers.

Tom Content, executive director of the Citizen's Utility Board said his experts will provide testimony for the PSC as the case unfolds. Content said the profits the utilities are making are well above the national average and the focus should be on savings. 

"At a time where we are seeing a lot cost pressures across the economy, including what we saw with heating bills this winter, every increase needs to be scrutinized," Content said. "This is another pill to swallow."

Content said it is also not clear what the proposed increase will be in 2024, since WEC has asked that the rate case be left open. 

"Bills for We Energies customers have climbed much faster than inflation -- up 92% for a typical residential customer since 2001, versus a 49% jump in inflation," Content s

In late-May, We Energies will update the filing to include more specific information on the impact for each customer group. The company also will provide this information to customers through a bill insert and on we-energies.com.

Utility transforming to clean energy

WEC Energy Group's proposal comes at a time when the utility is in the midst of the largest clean energy transition in the company's history.

This transition will ultimately save $1 billion over the next 20 years, as older, less-efficient fossil fuel plants are closed and replaced with solar energy, Garvin said. 

WEC Energy Group, Wisconsin's largest utility, will retire 1.8 gigawatts of coal and natural gas generation as part of its effort to become carbon neutral by 2050. The plan includes the retirement of the 1,100-megawatt South Oak Creek coal plant over the next five years. 

WEC Energy officials told the Public Service Commission on Thursday, that WPS needs to recover $290 million and We Energies needs to recover $835 million for renewable energy projects approved or pending approval in 2022. 

These projects include Badger Hollow II, a $175 million plant just west of Dodgeville; the $390 million Paris Solar-Battery Park project in Kenosha County; and the $158 million Red Barn Wind Farm near Madison

A $402 million solar and storage project in Darien has not yet been approved by the PSC. 

Corrinne Hess can be reached at chess@gannett.com. Follow her @corrihess