‘These rate hikes unfairly burden families’: Wisconsin energy customers testify to Public Service Commission

Customers from some of Wisconsin’s largest electric utilities this week asked state regulators to block the utilities from increasing electric rates in each of the next two years. It comes as two utilities have proposed settlement agreements shrinking the size of their rate hikes.

Earlier this year, Alliant Energy, Xcel Energy and Madison Gas and Electric filed applications with the Public Service Commission of Wisconsin, or PSC, to increase their electric rates in 2026 and 2027. The three utilities have said they need to increase rates to upgrade aging infrastructure and to pay to build additional resources for generating energy.

Since then, Alliant and Madison Gas and Electric have asked the PSC to approve settlement agreements with customer advocacy groups, like the Citizens Utility Board of Wisconsin, the Wisconsin Industrial Energy Group and others, that would reduce the size of their rate increases.

Alliant initially proposed increasing overall electric rates by 8.3 percent in 2026 and 5.7 percent in 2027. Under the settlement, Alliant says electric rates would increase by 5.4 percent next year and 5 percent in 2027.

Madison Gas and Electric, or MGE, applied to increase overall electric rates by 4.89 percent in 2026 and 4.33 percent in 2027. Under the settlement, MGE says those rates would increase by 0.04 percent in 2026 and 3.8 percent in 2027.

In March, Xcel Energy applied to increase overall electric rates by 11.8 percent in 2026 and roughly 7.1 percent in 2027, or by $150.7 million over the two years. That utility has not reached a settlement with advocacy groups.

Tom Content, executive director of the Citizens Utility Board of Wisconsin, said the settlements with Alliant and MGE represent a win for customers. He said both utilities have pledged to undertake new customer-focused programs that will help people save on their bills.

“Both utilities are providing from their shareholders over a million dollars each over the next two years for low-income customers,” Content said. “We think that’s really important at a time when Congress is considering getting rid of low-income energy assistance in Wisconsin and across the country.”

Consumers weigh in on rate hikes

The PSC held public hearings in Alliant’s rate case on Tuesday and Xcel’s case on Thursday, where utility customers weighed in on the proposed rate increases. 

Gregg Schneider of Beloit testified during one of Alliant’s hearings. He said past rate hikes have already squeezed customers, and he’s worried additional increases would hurt families even more.

“They’re really pricing people out of markets, out of their homes because they can’t afford their utility bills, or they’re giving up other essentials like food or medication just to keep utilities on,” he said.

At one of Xcel’s hearings, Pamela Guthman, a public health nurse, testified that the rate hikes would hurt families who are already struggling.

“These rate hikes unfairly burden families who are trying to keep warm during the winter and their lights on,” Guthman said. “This is all the while Xcel continues to build out expensive gas plants that are hurting the lungs of all of us.”

Public hearings in Madison Gas and Electric’s rate case are scheduled for Sept. 30. In written testimony, Barb Perkins of Madison said some community members have to decide which bills they pay every month or forego food. 

“MG&E argues that the rate is below the level of inflation,” Perkins wrote. “However, pay hasn’t caught up to the financial burden of housing, groceries, and utilities.”

Utilities say rate increases are needed

In a statement, David de Leon, president of Alliant Energy’s Wisconsin energy company, said the utility’s settlement filed with the PSC “reflects the collaborative effort among stakeholders to advance Alliant Energy’s commitment to provide cost-effective, reliable energy to customers.”

“We appreciate the thoughtful engagement and are confident our balanced energy mix, along with increased customer offerings, will help grow the communities we serve and power customers forward,” de Leon said.

If its settlement is approved, Madison Gas and Electric says a typical residential electric customer would see their bill increase by about $0.07 per month in 2026 and $5.41 per month in 2027.

“We take seriously our responsibility to provide safe, reliable energy at reasonable rates,” the company said on a web page about its settlement. “We work hard to control our costs.”

Meanwhile, a spokesperson for Xcel Energy said in a statement that its rate increase will help the utility “upgrade and strengthen the electric grid and natural gas system” that serves its customers’ homes and businesses.

According to Xcel, the average residential electric customer’s bill would
be $0.61 higher per day in 2026, followed by an additional $0.36 cents higher per day in 2027.

“With customers facing rising costs in many areas of their lives, we understand that higher energy bills can be challenging,” the statement reads. “Our proposal includes a new energy assistance program specifically designed for residential customers needing additional support.”

The Public Service Commission will make a decision in all three rate cases before the end of the year.

Editor’s note: The Citizens Utility Board of Wisconsin and Alliant Energy are sponsors of WPR.