State regulators approved rate hikes for three of Wisconsin’s largest electric utilities in 2026 and 2027, with two of the companies reaching settlements with advocacy groups to moderate the increases.
The Public Service Commission of Wisconsin this month signed off on electric and natural gas rate increases for Alliant Energy, Xcel Energy and Madison Gas and Electric. The approved rates came in below the requests the utilities filed earlier this year.
The companies have said they need to increase rates to upgrade aging infrastructure and to build additional power sources.
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The impact of the new 2026 rates range from an increase of just 13 cents a month for the average electric bill from Madison Gas and Electric to average increases of nearly $13.50 a month for Xcel customers.
The new rates reflect settlement agreements Alliant and Madison Gas and Electric reached with ratepayer advocates and clean energy groups.
“The increases will be much, much lower than they would have been if the PSC had just approved what the utilities had applied for originally,” said Tom Content, executive director of the Citizens Utility Board of Wisconsin. “Not only do we see increases that aren’t as onerous, but also that we see new initiatives that are designed to help customers are arising out of these settlements.”
The Citizens Utility Board, or CUB, was one of the groups that was part of the settlements.
Average Alliant residential electric bill to rise by over $9 a month in 2026
According to the PSC, the commission’s approval of the Alliant settlement results in a $57.8 million decrease in the utility’s electric rate hike compared to the company’s initial request, and a $1.5 million decrease in its natural gas rate hike.
PSC chair Summer Strand said the settlement represented compromise between the utility and “a broad range of customers and advocacy groups.”
“I have consistently and persistently encouraged applicants and interveners to work together, develop viable solutions and attempt to reach consensus on important rate case issues through constructive collaboration,” she said.
The commission estimates the average Alliant residential customer’s monthly electric bill will increase by about $9.57 per month in 2026 and $17.45 in 2027 compared to 2025. Average gas bills are expected to rise by $1.08 in 2026 and $1.80 in 2027 compared to 2025.
In a statement, Becky Valcq, associate vice president of regulatory affairs for Alliant, said the utility appreciated the commission’s approval of its settlement agreement.
“We continue investing in a balanced energy mix, expanding customer options and supporting community growth,” Valcq said.
Content said the settlement also included additional funding for customer programs aimed at helping reduce bills. That includes a program that gives customers a credit if they reduce energy usage at high demand times.
“Things like that are going to be expanded under the Alliant settlement, which is good for the customers who take advantage of it because they’ll see lower bills,” he said.
Average Xcel residential electric bill to rise by over $13 a month in 2026
While Xcel didn’t reach a settlement with intervenors, it did find common ground on several issues in its rate case.
“There are a lot of uncontested issues,” PSC commissioner Kristy Nieto said during the discussion of Xcel’s rate request. “There are also other issues that are contested but appear to have consensus among the applicant and the parties and that’s obviously evidence of a spirit of cooperation that is going on here.”
The electric rate increase the PSC approved for Xcel came in $24.6 million below the utility’s initial request, and the gas rates came in $2.2 million lower, according to regulators.
The commission estimates the average Xcel residential customer’s monthly electric bill will increase by about $13.47 per month in 2026 and $24.91 in 2027 compared to 2025. Average gas bills are expected to rise by $7.08 in 2026 and $8.70 in 2027 compared to 2025.
In a statement, a spokesperson for Xcel said the PSC’s approval allows the company to take steps toward upgrading the electric grid and natural gas system. The spokesperson also stated the utility is committed to working with customers who are struggling to pay their bills.
“With customers facing rising costs in many areas of their lives, we understand that higher energy bills can be challenging,” the spokesperson said.
Despite the energy assistance funding, Content said he would have liked to see a lower increase from Xcel.
“It was really a missed opportunity to bring the size of the increase down much further, especially in the area of profits,” he said, noting Xcel’s profit rate in Minnesota is lower than its profit rate in Wisconsin.
Average MGE residential electric bill to rise by 13 cents a month in 2026
According to the PSC, the commission’s approval of the Madison Gas and Electric settlement results in a $28.5 million decrease from the utility’s initial request and a $1 million decrease in its natural gas rate hike.
PSC Commissioner Marcus Hawkins said the case included “a great deal of collaboration between all parties involved.”
State regulators estimate the average MGE residential electric bill is projected to increase by about 13 cents per month in 2026 and about $5.44 in 2027 compared to 2025. Average natural gas bills are expected to rise by $1.91 in 2026 and $3.43 in 2027 compared to 2025.
“Maintaining energy affordability as we transition to net-zero carbon electricity remains a top priority for MGE,” an MGE spokesperson said in a statement. “Renewable energy’s lack of fuel costs helps limit long-term rate volatility and supports a cleaner, smarter grid for all customers.”
According to the utility, MGE’s settlement also included $500,000 in annual funding in each of the next two years for programs supporting low- to moderate-income customers.
Content said the deal struck with MGE was a “good settlement” because it kept electricity price hikes “as close to zero” as possible next year.
Editor’s note: Alliant Energy is a Wisconsin Public Radio business sponsor.
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