Wisconsin Public Service Commission approved energy rates for Alliant Energy and Xcel Energy that will amount to a $300 million increase in rates for residential customers over the next two years, according to a Public Service Commission report.
That includes $156.4 million in a rate settlement for Alliant Energy and $148.3 million in rates for Xcel, according to The Center Square.
The increases will go into effect Jan. 1. Both utilities were recently approved to hold 9.8% profit margins for investors. The companies said they need to increase rates to upgrade aging infrastructure and to build additional power sources.
Alliant has requested a $128.1 million increase for 2026 while $76.6 million was approved and the cumulative requested increase for 2027 was $215.7 million with $156.4 million approved.
The increase was mainly $144.1 million for electric rate increases while the natural gas increase amounted to $12.3 million for the two years.
The commission reviews the company’s rate increase requests and reasoning and then approves the measure. In the case of Alliant, the settlement was between Alliant, Blacks for Political and Social Action of Dane County, Inc., Clean Wisconsin, Citizens Utility Board of Wisconsin, International Brotherhood of Electrical Workers Local 965, RENEW Wisconsin, Walmart and Wisconsin Industrial Energy Group.
“In this year’s Alliant case, our team’s review concluded that, while some increases were unavoidable, the settlement amount is well below Aliant’s ask. CUB Executive Director Tom Content said. “The wins achieved for Alliant Energy customers in the settlement were significant: Reduction in the size of the overall increase vs. the amount requested in March, creation of new and innovative programs to help customers use energy more efficiently and save money and commitment for stepped-up financial support from Alliant Energy shareholders to customers who are struggling the most to pay energy bills,” Content said.
The commission estimates the average Alliant residential customer’s monthly electric bill will increase by about $9.57 per month in 2026 and $17.45 in 2027 compared to 2025. Average gas bills are expected to rise by $1.08 in 2026 and $1.80 in 2027 compared to 2025.
