Protecting the bottom line with rate case interventions
WIEG’s efforts on behalf of large energy users has led to significant results. In the last thirteen years, investor-owned utility rate hike requests have been reduced by 40% and roughly $1.4 billion. In addition, WIEG has successfully advocated for new market-based industrial tariffs. In just a few years, these efforts have resulted in savings of more than $120 million versus standard industrial tariffs without shifting costs to any of the utility’s other customer groups. Unfortunately, the state’s largest utilities have requested a total of over $800 million in electric and natural gas rate hikes for 2025-2026. Contact WIEG today to be part of our growing coalition and protect your company from the utility rate hikes and costly proposed energy legislation.
WEPCO 2025-2026 base rate case (05-UR-111)
WEPCO requested an increase in electric revenues of $240.7 million, or an increase of 6.9%. In addition, WEPCO requested an incremental increase in annual total company electric revenues of $177.9 million, or an increase of 4.6% over the requested 2025 revenues. Most industrial electric customers were assigned below average increases. The primary drivers of the requested increases in electric rates are continued capital investments in renewable and natural gas-fueled generation, increased costs driven by higher inflation and interest rates, and the recovery of regulatory assets. Transmission expenses from ATC is contributing to the requested increase, $22.5 million in 2025 and $58.6 million in 2026. WEPCO’s fuel costs are high ($42.67/MWH requested in 2025) but are expected to be on net $15.4 million lower than current fuel costs ($42.96/MWH authorized in 2024). WEPCO is seeking full recovery of their prematurely retired generation assets. The utility proposed 100% natural gas rate increases for some large transportation customers over two years.
WPSC 2025-2026 base rate case (6990-UR-128)
WPSC requested an electric revenue increase of $110.1 million, an increase of 8.5% over present revenues, and an increase in annual natural gas revenues of $26.8 million, an increase of 6.8%. In addition, WPSC requested an incremental electric increase of $64.3 million or 4.5% over the requested 2025 test year, and an incremental increase in annual natural gas revenues of $16.1 million or 3.7% over the requested 2025 test year. Most industrial electric customers were assigned below average increases. The primary drivers of the requested increases in electric rates are continued capital investments in renewable and natural gas-fueled generation, increased costs driven by higher inflation and interest rates, and the recovery of regulatory assets. Transmission is a major driver for WPSC in both years: $11.2 million in 2025 and $24.7 million in 2026. WPSC’s fuel costs are trending lower ($26.37/MWH requested in 2025) and are expected to be on net $9.7 million lower than current fuel costs ($27.19/MWH authorized in 2024). WPSC is seeking full recovery of their prematurely retired generation assets. The utility proposed 100% natural gas rate increases for some large transportation customers over two years.
WPL 2025 fuel cost plan (6680-ER-104)
WPL’s fuel costs have increased a net $10.4 million or 0.73%. Large customers would have a bill impact of around 1%. WPL’s 2024 fuel costs were authorized at $17.74/MWH and WPL projects 2025 fuel costs of $18.56/MWH. If approved by the PSC, it would be a surcharge of $0.000933/kWh in all twelve months of 2025. However, please don’t forget there is a $0.004667/kWh fuel surcharge already collected on your monthly bill that remains in effect through December 2025. The existing surcharge is from $117 million in extraordinary fuel cost increases in 2022 that needed to be spread out to blunt the impact on customers. If the 2025 Fuel Cost Plan is approved at the requested amount, then the combined surcharges would total $0.0056/kWh on each monthly bill in 2025.
NSPW 2025 fuel cost plan (4220-ER-103)
NSPW’s fuel costs have decreased a net $12.3 million or 1.5%. Large customers would have a bill impact of around -2%. NSPW’s 2024 fuel costs were authorized at $25.57/MWH and NSPW projects 2025 fuel costs of $23.88/MWH. If approved by the PSC, it would be a credit of $0.00178/kWh in all twelve months of 2025.
MGE 2025 fuel cost plan (3270-ER-101)
MGE’s fuel costs have decreased by a net of $8.2 million. It would be an average rate decrease of -1.66% and as much as -2.65% for MGE’s largest customers. MGE’s 2024 fuel costs were authorized at $23.81/MWH and MGE projects 2025 fuel costs of $21.92/MWH. If approved by the PSC, it would be a $0.00273 kWh credit in all twelve months of 2025.
Other regulatory initiatives include:
WIEG successfully sought an incremental load Real Time Market Pricing (RTMP) tariff for We Energies’ customers. Following this win, WIEG successfully worked for the adoption of a similar tariff (New Load Market Pricing, or NLMP) for both WPSC and WPL customers.
WIEG also worked with WPSC and WPL to develop nominated load real time tariffs. WIEG negotiated changes to a WPSC tariff that is also called RTMP. Under the revised RTMP tariff, customers pay a $5.50 per MWh adder, but then pay day-ahead market prices.
A similar nominated load real time program was approved for WPL’s largest customers. The Day Ahead Market Pricing rider (DAMP) is now in place for qualified customers.
Together, these new tariffs help promote economic growth and development in Wisconsin, without shifting costs to any of the utility’s other customer groups. In just a few years, these efforts have resulted in savings of more than $120 million versus standard industrial tariffs.
Recent legislative initiatives include:
Coalition efforts to block passage of monopoly construction legislation
Anti-competition, anti-consumer legislation was defeated in this legislation (2023 AB 470 and SB 481). Wisconsin’s electric rates are already too high for businesses. Unfortunately, Wisconsin’s utilities plan to reintroduce a similar transmission Right of First Refusal (ROFR) bill in the next legislative session. There will be a major legislative effort in early 2025 to defeat this legislation. Please contact us to find out how you can be part of the growing coalition.
Industrial RRCs & waste heat recovery/waste heat to power
Industrial customers can create and keep renewable resource credits (RRCs) in Wisconsin, including from waste heat recovery projects. WIEG was instrumental in passing two new laws to help keep energy-intensive operations competitive in Wisconsin (2013 Act 300 and 2017 Act 53). Applications are now available on the PSC’s website.
