Western Wisconsin Residents Could See Xcel Energy Rate Hikes

Western Wisconsin residents may need to pay extra for electricity over the next two years after Xcel Energy filed a rate hike application.

Last week, Xcel Energy, Alliant Energy, and Madison Gas and Electric filed applications for rate increases with the Public Service Commission of Wisconsin. According to a WPR report, Xcel energy applied for an overall electric rate increase of 11.8 percent in 2026 and 7.2 percent in 2027. The rate hikes would cost a total of $150.7 million over the two years.

The company primarly provides service for customers in Western Wisconsin. Officials say the rate hikes are necessary to follow through on planned power generation investments and to replace aging infrastructure. They say the increase would amount to an additional 61 cents per day on average.

Xcel Energy is pursuing a number of renewable energy projects in the region, including a 5,000 acre solar farm in St. Croix County. That project has seen a great deal of pushback from community members, with a petition opposing it receiving over 3,500 signatures in just a few weeks.

Officials say the project will create hundreds of jobs and help them achieve their goal of providing 85 percent carbon-free energy by 2030. It would also contribute millions in funding to the community through Wisconsin’s Shared Revenue Utility Payment program. Approvals for the project likely won’t be granted until 2026.

Advocates against the hikes say they will put additional strain on Western Wisconsin residents just two years after the Public Service Commission approved previous rate hikes. Xcel Energy also asked the Public Service Commision for an increase in their allowed profit rate from 9.8 percent to 10 percent. Those advocates are also warning of the added financial strain that potential tarriffs could bring for Western Wisconsin residents.