Speak Out Against Wisconsin Public Service’s Proposed Rate Hike!

If you’re a Wisconsin Public Service (WPS) customer, or if you care about energy affordability, it’s time to make your voice heard. WPS, an investor-owned utility serving primarily northeastern and north central Wisconsin, has proposed its third rate increase in the past three years—and it’s a big one (Docket No. 6690-UR-128). Not sure if you’re in the WPS territory? Check their coverage here

If its new request is approved, household utility rates in the WPS service area will increase a whopping 20% over the next two years

You have the power to influence the Public Service Commission (PSC)’s decision –
submit your public comment by October 14!

Submit your comment!

We’ve provided some sample comment language and talking points below, and we encourage you to make it your own. Your comment will have much greater power if it’s written in your own words and brings in your own personal experiences, stories, and concerns. 

One may think that WPS must need these rate increases to operate, but in reality, they need frequent rate increases to maintain profit margins for their wealthy shareholders. Wisconsin’s investor-owned utilities already make the fifth highest profit rates in the entire nation. WEC Energy Group – the shareholder group that owns Wisconsin Public Service – is the most profitable utility in Wisconsin, making more than double the revenue of the next most profitable utility

While millionaire shareholders of WEC Energy Group have continued to profit, ratepayers have suffered from unaffordable energy bills and severe energy burden. For many, especially those already struggling with severe energy burden, this increase is more than just an inconvenience—it’s potentially devastating. 

 

Unresolved Affordability Investigation

In March of 2023, the PSC opened an investigation exploring the development of low-income assistance programs (including a Percentage of Income Payment Program, or PIPP program) for the customers of WEC Energy Group (including We Energies and Wisconsin Public Service). A PIPP program would cap utility bills at a certain percentage of household income, rather than forcing customers to pay disproportionate amounts of their monthly income on energy.

“All across our city, across our state, there are individuals currently paying anywhere between 6 to 20 percent (of their income) each month, just to cook their food and warm their house,” said Montre Moore, Chair of Walnut Way Conservation Corps’ Environmental Justice and Infrastructure Initiative, in a listening session. “We have to — as a community — come together and force our utilities to do better, our Public Service Commission to hear us out and move this problem in a new direction.”

 

WEC Energy Group is Making Record Profits

Some customers of WEC Energy Group (WPS’s parent company) have seen their bills double over the past two decades, at a rate faster than inflation. Meanwhile, WEC’s annual revenue has more than doubled over the past decade (rising on average more than 8% annually over the last 5 years). “Shareholders of WEC Energy Group have enjoyed profits that are the highest in the state and well above the national average,” said the Citizens Utility Board of Wisconsin in a press release

In 2023, WEC Energy Group was named the fourth largest publicly traded company in the state. While companies like Kohl’s have to battle other businesses to make their money, WEC is a legal monopoly with no real competitors. In the same year, WEC reported a net profit of $1.3 billion – marking the 21st consecutive year that the company will reward its shareholders with higher dividends. 

These shareholders include WEC Energy Group’s President and CEO Scott J. Lauber, who took home 73 times what WEC’s median employee made. Lauber’s annual earnings totaled more than $9.5 million in 2023. Executive Chairman Gale Klappa also brought home roughly $9 million, with several other executives making $2-4 million – and WEC’s top 6 executives totaling $31.2 million.

It’s wrong that WPS ratepayers have to choose between paying their energy bills and buying groceries, while WEC’s wealthy shareholders make massive returns. Let’s stand together and push back against unjust rate hikes and demand justice for utility ratepayers!

 

Submit your comment today!

 

Action Opportunities 

Tell the PSC: We Need A Public Hearing in Wausau!

Email the PSC here and tell them that the people who live closest to the proposed gas plant site deserve to have a local, in-person public hearing option!

Submit a Public Comment

WHEN: Comments due October 14

WHERE: Online comment form or via U.S. mail*

 

*U.S. Mail at: 

Docket 6690-UR-128 Comments 

Public Service Commission 

P.O. Box 7854 

Madison, WI 53707-7854

 

Testify at a Public Hearing

Ashwaubenon Public Hearing

WHEN: Thursday, October 10 at 2 PM, 6 PM

WHERE: Ashwaubenon Community Center Activity Room 900 Anderson Drive / Zoom

 

Talking Points

  • WPS wants to continue to operate two uneconomic coal units at Weston, and the utility has not analyzed any other options:
    • WPS is asking for millions of dollars to continue operating two coal units at Weston (Units 3 and 4) through 2026.
    • Between 2018 and 2020, it cost more to generate electricity at Weston unit 3 than to purchase electricity from the MISO market – the unit lost money. The unit lost money again in 2023.
    • WPS has never done an economic analysis to assess whether it could have replaced Weston 3 or 4 already with more economically efficient resources that would result in lower rates for customers in 2025 and 2026.
    • WPS has never conducted a “request for proposals” or asked utilities and developers how much it would cost to build replacement generation.
  • WPS’s plans for Weston 3 and 4 are not well considered, likely resulting in more coal and gas generation than is needed:
    • WPS is now saying it plans to retire Weston 3 in 2031 and convert Weston 4 to gas in 2027. But it has never done any economic modeling to determine whether Weston 3 should be retired earlier, or whether it should retire (rather than convert) Weston 4.
    • Weston Unit 3 had a capacity factor of 19% over the last year, which means it operated at less than 1/5th of its maximum capacity, and was offline for weeks or months at a time. This very low usage reflects both the unit’s unreliability (it was in forced outage 26% of the time in 2023) and the fact that it costs more to generate electricity at Weston 3 than most other plants most of the time, meaning the unit is not competitive in the energy market. WPS does not project that this will improve in the two rate years.
  • WPS plans to make ratepayers pay for this, and raise rates, without analysis proving it’s needed:
    • WPS should not be allowed to keep making ratepayers pay for an expensive, unreliable coal plant without any economic analysis whatsoever. The Commission should reduce WPS’s rates by an amount equal to the difference between the cost to operate Weston 3 and the cost to purchase an equivalent amount of energy and capacity from the MISO market [or: the excessive costs associated with using such an expensive coal plant to meet customers’ needs]. If the Commission does not want to disallow costs now, they should at a minimum tell WPS they will need to either plan for Weston 3’s retirement ASAP, or produce an analysis at the next rate case to justify continued expenditures at the unit. 
    • Ratepayers cannot afford to keep paying for Weston 3 through 2031. And WPS cannot operate on autopilot. It needs to conduct an integrated resource plan to make sure it is providing reliable service to ratepayers at the lowest cost.
    • Residential impact for 465,000 customers in northeastern and north central Wisconsin: 20%, phased in over two years. 14.3% increase in 2025, 5.2% increase in 2026

Sample Comment

We encourage you to customize your comment, it’ll have an even greater impact! If you live in WPS service territory, be sure to mention that in your comment. 

I am writing to express my strong opposition to WPS’ proposed rate increase (Docket No. 6690-UR-128). Over the past 2 years alone, WPS’ parent company WEC Energy has continued to raise consumer rates while also doubling its annual revenue. Meanwhile, WPS wants to continue to operate its uneconomic coal units without doing the necessary economic modeling to consider the impacts on the community and the potential for a transition to sustainable energy. The proposed rate hikes would continue to support the aging coal plants that are already operating at low capacity – Weston Unit 3 has operated at less than 1/5th of its maximum capacity in the past year, and was in forced outage for 26% of 2023.

WPS rates are too high for everyone, but especially low-income residents. People experiencing high energy burden already have to make difficult choices between affording groceries or paying for health care and heating and cooling their homes – another rate increase would be devastating. With increasing climate impacts, these disparities will only worsen. 

WEC Energy Group reported a net profit of $1.3 billion in 2023 – marking the 21st consecutive year that wealthy shareholders will receive higher dividends. Raking in double the revenue of the next most profitable utility in the state, WEC can certainly afford a much lower rate of return.

I urge you to reject the proposed rate increase and reduce WPS’ authorized return on equity to protect all of its ratepayers – especially low-income ratepayers – from unaffordable energy bills. I also ask that you implement a Percentage of Income Payment Program (PIPP), improve the Low Income Forgiveness Tool (LIFT), and expand energy efficiency opportunities to help alleviate energy burden for low-income households before any rate increases are approved. 

Submit your comment today!