Three of Wisconsin’s major electric utilities are asking state regulators to allow them to raise their electric rates in 2026 and 2027.
Xcel Energy, Alliant Energy and Madison Gas and Electric filed applications with the Public Service Commission of Wisconsin last week. The commission approved rate hikes for those same utilities in 2023.
The three utilities say they need to increase rates to upgrade aging infrastructure and to pay to build additional resources for generating energy. But ratepayer advocates say many Wisconsinites are already feeling pinched by their electric bills and a big rate hike would be especially painful for low-income residents.
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In addition to asking to boost their rates, all three utilities also asked the commission to approve a slight increase in their profit rate, or “return on equity.”
The PSC is expected to vote on the proposals in late 2025. Last time around, regulators approved lower rate hikes than the utilities requested and took steps to limit utility profits.
Xcel Energy says aging distribution system is driving investment
Xcel Energy, which serves customers in western Wisconsin, applied to increase overall electric rates by 11.8 percent in 2026 and roughly 7.2 percent in 2027, or by $150.7 million over the two years.
According to the utility, that proposal would translate into an increase of 61 cents per day on the average residential customer’s electric bill in 2026 and an additional 36 cents per day increase in 2027.
Mara Ascheman, regional vice president of rates and regulatory affairs for Xcel Energy in Wisconsin and Michigan, said the biggest driver in this year’s rate request is a planned investment in Xcel’s distribution system — the pipes, poles and wires closest to homes and businesses.
“It will increase the safety of the service that we provide,” she said. “The primary purpose is to replace aging infrastructure.”
Ascheman also said the company’s investments in generation resources are also part of its rate request, including a natural gas power plant in Chippewa County and a solar farm in Minnesota.
The company also asked to increase its profit rate from 9.8 percent to 10 percent.
Alliant Energy says rate hike will help modernize infrastructure
Alliant Energy, which serves portions of central, eastern and south-central Wisconsin, applied to increase overall electric rates by 8.3 percent in 2026, and 5.7 percent effective in 2027, or by roughly $200 million over the two years.
According to the utility, that translates to an increase of roughly $6 in an average residential customer’s monthly electric bill in 2026 and another $8 per month in 2027.
A spokesperson for Alliant Energy said in a statement that the rate increase will help the company modernize its energy infrastructure and advance “responsible solutions” to meeting future energy demand.
“Our filing consists of investments in traditional, new and renewable energy sources,” the statement said.
The utility also seeks to increase its profit rate from 9.8 percent to 9.9 percent.
Madison Gas and Electric says rate hike supports renewable, natural gas investments
Madison Gas and Electric, which serves the Madison area, applied to increase overall electric rates by 4.89 percent in 2026 and 4.33 percent in 2027.
According to the utility, that comes out to an increase of about $6.96 in an average residential customer’s monthly electric bill in 2026 and an increase of $3.75 per month in 2027.
In a statement, a spokesperson for the utility said the drivers of the increase include investments in solar and battery storage, natural gas investments and grid modernization projects.
“Our community and all of our customers depend on and benefit from a safe, reliable and secure grid,” the statement read.
Madison Gas and Electric also asked to increase its profit rate from 9.7 percent to 10 percent.
‘At some point people need a break,’ advocate says
Tom Content, executive director of the Citizens Utility Board of Wisconsin, said the rate requests come at a time when many Wisconsinites are already bracing for higher prices from President Donald Trump’s tariffs.
“There are some economists saying we’re either already [in] or heading toward a recession, so we have concerns about the magnitude of the increases across the board,” he said. “We’re really concerned about the impact on low-income customers, from the back-to-back-to-back series of rate hikes that we’ve been seeing.”
Content said the nonprofit ratepayer advocate hopes the PSC can bring down the size of the increases because “at some point people need a break” from rising prices. He also said CUB will advocate to try to reduce the size of the profit rates.
“Customers have been overpaying in the area of profits for far too long,” he said. “It’s time to really make sure there’s balance because it’s hard on customers paying their bills.”
Editor’s note: The Citizens Utility Board of Wisconsin and Alliant Energy are sponsors of WPR.
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