Wisconsin Commercial Rates 2026: Enduring the We Energies Transition
Wisconsin businesses are facing sustained commercial electricity rate increases into 2026, primarily driven by the WEC Energy Group (parent of We Energies and Wisconsin Public Service). The Wisconsin Public Service Commission (PSCW) has authorized significant base rate increases to fund a massive generational transition. The utility is bearing the severe capital costs of retiring legacy coal complexes (like Oak Creek) well before their scheduled lifespans, while simultaneously financing the construction of major new solar parks and modern natural gas facilities to ensure winter reliability.
Executive Impact
- →The Double-Payment Paradox: Ratepayers are essentially paying twice during the transition: they are paying off the stranded debt of the retired coal plants, while simultaneously funding the massive capital expenditure (CapEx) of the replacement solar and gas infrastructure.
- →Profit Guarantee: As a regulated monopoly, utility investors are guaranteed a Return on Equity (ROE) for every dollar spent on approved infrastructure buildouts. This incentivizes accelerated capital spending, which directly translates to commercial base-rate hikes.
- →MISO Dependency: While Wisconsin is building in-state gas plants, its connection to the broader MISO grid exposes it to the region's overall tightening capacity reserves, keeping baseline wholesale costs elevated.
Wisconsin's Lack of Mitigation Options
Because Wisconsin strictly prohibits competitive retail electricity sales, commercial facilities in Milwaukee or Green Bay cannot simply sign a contract with a third-party supplier to bypass We Energies' or WPS's rate hikes. Procurement strategy is entirely internal.
- Time-of-Use (TOU) Rates: We Energies offers commercial TOU tariffs (like Cg-3). Facilities running heavy second or third shifts can achieve massive cost avoidance by shifting process loads out of the expensive afternoon "on-peak" blocks.
- Demand Control: In regulated markets with high base rates, Demand Charges ($/kW) often represent up to 50% of the commercial invoice. Avoiding a 15-minute spike in usage when large motors start ensures the facility doesn't lock in an exorbitant monthly penalty.
The Manufacturing Squeeze
Wisconsin has a dense concentration of paper manufacturing, foundry, and food processing operations. These high-voltage, high-load-factor industries are highly sensitive to base rate movements. Historically, utility economic development riders (Rtp or Real Time Pricing) allowed some flexibility, but the sheer size of the current utility rate base expansion means these industries face unavoidable operational cost inflation through the remainder of the decade.