Power

Scott Walker Appointees Jack Up Energy Rates on Low-Income Residents

The Wisconsin Public Service Commission approved changes to the state’s regulation of public utilities that will allow electric providers to nearly double their fixed rates in 2015.

The Wisconsin Public Service Commission approved changes to the state’s regulation of public utilities that will allow electric providers to nearly double their fixed rates in 2015. Shutterstock

The Wisconsin Public Service Commission approved changes to the state’s regulation of public utilities that will allow electric providers to nearly double their fixed rates in 2015. The changes were approved by commission members appointed by Gov. Scott Walker (R), just days after he won re-election campaigning against raising taxes and fees.

The rate changes were proposed by Wisconsin utility companies We Energies, Madison Gas & Electric, and Wisconsin Public Service Corporation (WPS). The utilities proposed an increase to the fixed monthly fee charged to customers, while reducing the usage-based kilowatt-hour charge.

The commission voted 2 to 1 to approve the changes. The change will increase the fixed electricity charge by about $9 per month and the fixed gas charge by about $8 per month.

Commissioners Phil Montgomery and Ellen Nowak, appointed by Walker, voted to approve the increase. Commissioner Eric Callisto, appointed by former Gov. Jim Doyle (D), opposed the change. Commissioners have six-year appointments, and must be confirmed by the state senate.

The Citizens’ Utility Board of Wisconsin, a nonprofit consumer advocacy group, criticized the increase for having a disproportional effect on low-income residents who live in smaller housing.

The Wisconsin Budget Project predicted that low-income residents would see their overall bills increase while higher-income customers would save money.

Wisconsin already has the second highest utility rates in the region, as customers in the state pay higher rates than Illinois, Indiana, and Ohio. Only residents of Michigan pay higher utility rates within the U.S. Energy Information Administration’s North Central region.

The change also comes just months after We Energies’ parent company bought the WPS parent for $9.1 billion. Walker praised that deal, saying that it would “result in better service for their local ratepayers.”