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. Contact WIEG today to be part of our growing coalition and protect your company from additional utility rate hikes and costly proposed energy legislation.
WPL 2026-2027 base rate case (6680-UR-125)
WPL requested $119.6 million or 8.3% for 2026. WPL requested a $82.3 million or 5.8% incremental for 2027. Industrial customers were assigned roughly average increases in both years. Fuel costs are currently authorized for $19.21/MWh for 2025. The 2026 Fuel Cost Plan suggests $18.04/MWh for a 6.1% decrease. WPL proposed a Return on Equity of 9.9%, which is up from the currently authorized 9.8%. The net increase is a result of solar and batteries, transmission expenses, higher capacity from natural gas plant upgrades, increased O&M costs and the continued operations at Edgewater 5 and Columbia 1 & 2. By the 2027 test year, WPL anticipates transmission expenses will rise by $44 million, accounting for approximately 21% of the company’s total proposed revenue requirement increase in this case.
NSPW 2026-2027 base rate case (4220-UR-127)
NSPW requested $93.4 million or 11.8% for 2026. NSPW requested $57.3 million or 7.1% incremental for 2027. Industrial customers were generally below the average in both years. Fuel costs are currently authorized for $22.33/MWh for 2025. The 2026 Fuel Cost Plan suggests $22.22/MWh. There are large increases for distribution projects, including wildfire mitigation. Other revenue increases include generation such as the 311 MW Wheaton natural gas plant, transmission expenses and lower electric sales. NSPW proposed a 10% Return on Equity, which is up from the currently authorized 9.8% and a regulatory equity level of 53.5%, which is up from 52.5%.
MGE 2026-2027 base rate case (3270-UR-126)
MGE requested $24.7 million or 4.9% for 2026. MGE requested $23 million or 4.3% incremental for 2027. Fuel costs are currently authorized for $22.16/MWh for 2025. The 2026 Fuel Cost Plan suggests $23.52/MWh for an increase of $4.3 million. The increase in electric rates includes investments made in solar and battery storage and in the West Riverside Energy Center. It also includes continued distribution system upgrades. This work includes replacing aging facilities and installing new underground electric lines, as well as replacing or removing existing overhead power lines and the installation of enhanced electric grid monitoring and control technology.
WEPCO 2026 Fuel Cost Plan (6630-ER-107)
WEPCO’s fuel costs have increased by a net $31.55 million. WEPCO’s 2025 fuel costs were authorized at $42.04/MWH and WEPCO projects 2026 fuel costs of $43.42/MWH. If approved by the PSC, it would be a $0.00142/kWh surcharge in all twelve months of 2026. Large customers would have a bill impact of around 1.25% – 1.5%. WEPCO said the main driver is higher combined cycle generation and opportunity costs. WEPCO is reporting higher coal and natural gas costs for generation. The Point Beach Purchase Power Agreement supplies over a quarter of WEPCO’s generation. WEPCO paid NextEra $70.47/MWH in 2025, and it automatically increases to $75.51/MWH in 2026.
WPSC 2026 Fuel Cost Plan (6690-ER-107)
WPSC’s fuel costs have increased by a net $8.8 million. WPSC’s 2025 fuel costs were authorized at $24.42/MWH and WPSC projects 2026 fuel costs of $25.24/MWH. If approved by the PSC, it would be a $0.00085/kWh in all twelve months of 2026. Large customers would have a bill impact of around 1.1%. WPSC said the main driver of the increase is higher coal and natural gas costs for generation.
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 the last two legislative sessions. Wisconsin’s electric rates are already too high for businesses. Unfortunately, Wisconsin’s utilities have introduced yet another version of the transmission Right of First Refusal (ROFR) bill this legislative session. There is a major coalition effort to defeat AB 25/SB 28 and AB 174. 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.
