Despite pushback from state-based advocacy groups, the Public Service Commission (PSC) of Wisconsin agreed to a rate increase that will make your We Energies bill more expensive beginning in January 2023.
During a Dec. 1 meeting of the three-person committee, a near 11% increase to the cost of energy for average homeowners was approved. This was a compromise from the original proposal, which suggested increasing the average monthly energy cost by 13%.
A We Energies statement obtained by TMJ4 proclaims that “A significant number of items were decided today by members of the Public Service Commission.
“Given all these decision points, we will simply need to wait to see the order to determine the full impact. Given past practice, we expect the commission to issue their written order in a few weeks. For We Energies residential customers, the typical electric bill impact in 2023 is expected to be about $11 per month.”
This increase speaks to a greater issue, proclaims Tom Content, the Executive Director of the Citizens Utility Board. He spoke with WTMJ’s Wyatt Barmore in the wake of the PSC’s decision.
“It’s a challenging time with energy prices right now,” Content said. “Heating costs were already going up a lot this winter, so customers were already told to expect almost a $180 increase over the winter heating season.”
His group estimates that the hike will add an additional $140-150 dollars for your average We Energies customer in 2023. For those already struggling to pay their energy bills, the price increase added insult to injury by giving big businesses more leeway with their costs.
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While residential customers are looking at a 10.8% increase in their bills during 2023, the overall rate hike is only estimated around 8%. This is because big businesses will only face an increase of about 6% while small businesses are expected to pay an 8% price hike.
Even though they decided in favor of a price increase, the Public Service Commission made some concessions of its own. They slightly reduced their own profit rate in order to lower the increase for customers, and decided to waive late fees and unpaid bills from the height of the COVID-19 pandemic. They also aligned with advocates who suggested that low-income customers need more options to make ends meet.
“It’s important that the PSC actually agreed with CUB that more flexibility and more innovative programs are needed for low-income customers, so they opened the door to actually allowing We Energies low-income customers to get a discount on their rates,” Content said.
Nonetheless, it’ll be difficult for some households to pay their energy bills with the recent price hike. Content highlighted state and federal energy assistance programs that should help customers in dire situations. Those who don’t qualify could turn to the Keep Wisconsin Warm fund to bridge the gap as they face increased cost.
