We Energies' 2024 rate proposals discussed at public meetings

 

MILWAUKEE (CBS 58) -- Ratepayers had two chances Monday to tell state regulators what they thought of We Energies' proposal to increase the costs of both electricity and natural gas.

The Public Service Commission of Wisconsin (PSC) held a pair public meetings Monday at the Clinton Rose Senior Center on Milwaukee's north side.

The topic of the hearings was We Energies' 2024 rate proposals. 

For residential electric rates, We Energies is seeking a 3.1% increase in 2024. For the average household, that amounts to electric bills going up by nearly $4 per month.

For natural gas, customers of Wisconsin Gas LLC will also see an increase of 3.1%, which adds up to about $2 more per month. Wisconsin Electric Gas Operations residential bills for natural gas would go up by about $3 per month after a 5% increase.

The utility says a big driver of the increase cost is the closure of fossil fuel facilities, like the coal plant in Oak Creek, while simultaneously building up clean energy infrastructure. 

We Energies Spokesperson Brendan Conway said despite the initial cost increase, those changes will end up saving money for ratepayers in the long run.

"While these projects go into service now, the costs go into rates right now. But over 20 years, we estimate the customers are gonna save about $2 billion," Conway said. "Because it's a lot less expensive to run a solar plant, a wind plant, those type of things."

There were only about a dozen people in attendance at Monday's evening hearing, but those speaking were skeptical the savings from a transition to clean energy would be fully passed down to customers.

"I don't see them giving those returns to us when they are already taking as much as they can and trying to profit as much as they can possibly make right now," said Chelsea Valentine, a Racine resident who volunteers for climate advocacy group, 350.org.

The Madison-based Citizens Utility Board, known as CUB, wants the state to keep limit how much We Energies can profit from the Oak Creek coal plant after it closes.

CUB Executive Director Tom Content said the group also wants the state to keep a close eye on cost overruns from the construction of solar farms getting tacked onto ratepayers' bills.

"Those overruns need to be analyzed carefully before they decide whether the utility's customers should have to pay that," Content said.

Content said CUB understands the transition away from fossil fuels can be costly, but it maintains not all of those expenses should be picked up by the public.

"We're still paying a lot for the coal plants and a lot for the natural gas plants, and now we're paying the upfront costs for a lot of the solar and battery and new natural gas plants," Content said. "So, it's a whole bunch of things hitting customers' bills at the same time, which is a real challenge."

According to WE Energies' 2022 climate report, 7% of its electricity supply came from renewable sources. Its goal is to boost that share to 39% by 2030.

The Public Service Commission is accepting public comments through October 16. Those who want to submit a comment online can do so here.

Given past precedent, the PSC's final ruling will come sometime around Thanksgiving. Ratepayer advocates want the commission to also take into account We Energies raised residential rates by 11% last year, a bigger hike than the utility originally sought.