State Utilities Commission Will Hold Public Hearing On Proposed Rate Changes

The state’s public utilities commission is holding a public hearing this week in Madison regarding a petition from several Wisconsin utilities to change the way customers are charged for electricity.

The commission has also been collecting public comments on the petition online.

At issue are the fixed charges that appear on the electric portion of utility bills. Three companies — Wisconsin Public Service, Madison Gas & Electric and We Energies — want to increase those amounts.

Steve Kihm, the chief economist with the Energy Center of Wisconsin, said this the biggest issue he’s dealt with in 34 years working with electricity regulation. Kihm, who does not advocate for or against the change, said the fixed rate would increase by a significant amount, which could give people less of an incentive to conserve energy.

Electricity bills now have a fixed portion and a variable one — that is, one that varies based on how much a household or business uses. Kihm said that raising the fixed portion would give people less incentive to cut back.

“So if you didn’t use one kilowatt hour today, you’d pay $10. Under that new rate design you’d pay $65. So it’s starting to look more like a cable bill,” said Kihm.

Bert Garvin, a vice president at We Energies, one of the utilities petitioning for the change, said the company views the proposed change as modest. He said that the increased fixed portion will help pay for infrastructure.