In-person public hearings in Milwaukee, Green Bay at a time of contentious utility rate hikes
The Public Service Commission of Wisconsin will hit the road this week for public hearings in Milwaukee and Green Bay on We Energies' and Wisconsin Public Service Corp.'s proposed 2023 electric and gas price increases.
The utilities are proposing to increase base residential electric rates 13% for We Energies customers and 14% for WPS customers. Gas rates would increase between 8.7% and 13.1% depending on the provider.
That's the base rate, the cost of providing energy plus a continuation of the 10% profit the companies are currently allowed.
Consumer groups and other critics argue the increases are excessive, especially at a time when inflation is pushing up household costs across the board. That burden falls especially hard on low-income customers, and appears to have led to greater than usual engagement in the rate case by the general public, said Tom Content, executive director of the Wisconsin Citizens Utility Board.
"This year we're seeing a lot of interest in part just because the cost of everything is so high," Content said.
The utility's proposed rates would cost the average Milwaukee-area residential customer, who receives gas from Wisconsin Electric Power Co., about $268 a year. Wisconsin Gas customers in other parts of southeast Wisconsin would pay about $266 more next year. The average WPS residential customer's annual bill would be about $235 more.
In Milwaukee in particular, Content said, ratepayers seem more engaged in the rate-setting process than in the past. He attributed that, in part, to the work of Walnut Way, a Milwaukee neighborhood organization that this year took the unusual step of becoming an intervenor in the case.
The intervenors have focused on affordability this year and, in a partial settlement reached in September negotiated several affordability-focused agreements, including an extension of a pilot program for low-income ratepayers known as the Low-Income Forgiveness Tool, or LIFT, and an agreement that the utility will write of $34 million in late fees and other costs stemming from the prohibition on disconnections during the height of the coronavirus pandemic.
The proposed rate increases would be We Energies' second in eight years, and WPS's third in that time frame, spokesman Brendan Conway said. In 2020, We Energies' base electric rate increased 1.9%, and the WPS rate went up 4.5%. Gas rates increased between less than 1% and 3.1% depending on the provider.
Content pointed out those small increases were largely the result of a 2017 federal tax bill that reduced corporate taxes from 35% to 21%. Because utility rates had been set based on the old tax rate, the companies in subsequent years needed to return the excess they collected to ratepayers, he said. CUB in its filings is urging the PSC to reduce the profit the utilities are allowed after expenses, from 10% to 9% for We Energies and 9.1% for WPS.
The three-member Public Service Commission is only considering the utilities' rates for 2023. Rate cases typically cover two years, but WEC Energy Group has asked to keep 2024 open, a reflection of inflation and an uncertain economic outlook.
The hearings will be livestreamed on the PSC's YouTube channel. Customers can also comment online about We Energies' and Wisconsin Public Service Corp.'s proposals at apps.psc.wi.gov.
The company said the increases are needed to fund its transition to clean energy. The division of revenue that will come from residential, small businesses and large customers is consistent with past Public Service Commission decisions, Conway said.
He said the company recognizes its new rates will arrive at a challenging time for customers, and that's why the company will donate $4 million to the Keep Wisconsin Warm Fund.
Conway said company representatives will be at the Milwaukee hearing to provide information about programs for low-income customers and others struggling with energy bills, and to sign them up if they qualify.
Contact Karl Ebert at kebert@gannett.com. Follow him on Twitter at @karlwebert.
If you go
We Energies rate hearings
When: 2 p.m. and 6 p.m. Thursday
Where: Washington Park Senior Center, 4420 W. Vliet St., in Milwaukee
Wisconsin Public Service Corp. rate hearings
When: 2 p.m. and 6 p.m. Tuesday
Where: Neville Public Museum of Brown County, 210 Museum Place in Green Bay
This article originally appeared on Milwaukee Journal Sentinel: PSC hearings on gas, electric cost increases in Milwaukee, Green Bay
