How Wisconsin Rates Get Set
A utility can't raise rates without applying to the Public Service Commission. PSC staff audit the request, there are hearings and public comment, and the three commissioners decide at an open meeting.(PSC) The utility tells customers about its request with a bill insert.(PSC) Rates are set on a forecast budget for the years they'll be in effect, including a return on the utility's investment in power plants, lines and gas mains.(PSC) The return on equity (ROE) set in each case directly affects bills.(PSC final decision) The Commission usually changes the proposal, and final rates can come in lower or higher than requested.(PSC)
MGE and Alliant now file two-year cases, so the rates for 2026 and 2027 were decided together in December 2025.(PSC final decision)
MGE
- 2023 (3270-UR-124): MGE first asked for 4.38% on electric; the PSC approved 9.01% ($39.0 million), mostly because the 2023 fuel forecast rose 16%.(PSC final decision)(PSC final decision) The new investments were Badger Hollow II solar, Paris solar with batteries, Red Barn wind and a share of the West Riverside gas plant. The electric customer charge dropped from $17 to $15 a month.(PSC final decision)(PSC final decision)
- 2024-2025 (3270-UR-125): electric +1.54% for 2024 and 5.77% cumulative by 2025; gas +2.44% and 3.57%; ROE 9.70%.(PSC final decision) The PSC lowered the gas customer charge to about $20 a month in 2024 and $18 in 2025.(PSC final decision)
- 2026-2027 (3270-UR-126, decided December 18, 2025): MGE asked for 4.89% on electric for 2026.(MGE application) The case settled, and the PSC approved electric +0.15% for 2026 and gas +2.77%, at a 9.80% ROE.(PSC final decision) For 2027: electric +3.80% and gas +4.86% over 2025 rates.(PSC final decision) MGE says a typical home sees about $5.41 a month more on electric in 2027 and $1.52 more on gas.(MGE)(MGE) The electric customer charge stays $15 in 2026 and goes to $16 in 2027; gas goes from $18 to $19.50, then $21.(PSC final decision)(PSC final decision)
- Why: MGE named investment in rate base, inflation and higher interest rates.(PSC final decision) Its rate page lists the Paris, Darien, Sunnyside, Koshkonong and High Noon solar and battery projects, West Riverside, grid modernization and gas system work.(MGE)
- Pending: MGE's 2027 fuel cost plan (3270-ER-102) proposes $17.40 per MWh, below the 2026 plan's $19.97.(PSC)
Alliant Energy (Wisconsin Power and Light)
- 2023 (6680-UR-123): electric base rates held steady; gas +4.74%.(PSC final decision)(PSC final decision)
- 2024-2025 (6680-UR-124): electric +3.76% for 2024 and 8.27% for 2025 over then-current rates; gas +5.09% for 2024; ROE cut from 10.0% to 9.8%.(PSC final decision) Alliant named its Clean Energy Blueprint investments and expiring bill credits.(PSC final decision)
- 2026-2027 (6680-UR-125, decided December 18, 2025): Alliant asked for about 8.3% on electric for 2026.(Alliant application) The settlement approved +4.77% for 2026 and +9.84% for 2027 over 2025 rates, about 5.43% and then 4.76% year over year; gas +5.64% and about 3.83%.(PSC final decision)(PSC final decision) Alliant estimates about $4 a month more for the average home in 2026 and another $8 in 2027.(Alliant Energy) The electric customer charge went from $15 to $16 a month in 2026 and goes to $17 in 2027.(PSC final decision)
- Why: twelve new solar projects, battery storage, plant upgrades at Neenah and Sheboygan Falls, wind refurbishments and a share of the Columbia Energy Center CO2 energy storage project; transmission costs were expected to rise $44 million by 2027.(Alliant application)(Alliant application)
- Pending: the 2027 fuel cost plan (6680-ER-105), which Alliant says would add about $1.55 a month for an average home.(PSC)
We Energies Gas (Sun Prairie)
Current rates come from 5-UR-111: Wisconsin Gas +4.15% for 2025 and 6.71% for 2026.(PSC final decision) A new case, 5-UR-112, asks for 6.8% more in 2027 and 4.0% in 2028.(We Energies application) We Energies' bill insert puts a typical residential customer (865 therms a year) at $7.94 a month more in 2027 if approved as filed.(We Energies bill insert) The company named the Hartford-Jackson pipeline, a new depreciation study and a lower sales forecast.(We Energies application) Reply briefs were filed October 7, 2026; no decision yet.(PSC)
Madison Water
In 3280-WR-117, the PSC approved a 9.89% increase ($5.5 million a year) on April 2, 2026.(PSC final decision) The average residential water charge went from $33.90 to $38.81 a month on May 1, 2026.(City of Madison) The decision has the utility fund $10 million a year of water main replacement and ended the MadCAP pilot's funding from water rates.(PSC final decision)(PSC final decision) The full bill is explained in the Madison Municipal Services Bill. Suburban water rates, each with its own docket, are on utility costs by town.
Charges That Change Every Month
- Electric fuel costs follow a yearly fuel cost plan. If actual costs land outside a 2% band, the difference is refunded or recovered later.(PSC final decision) Alliant says fuel is a pass-through on which it makes no profit.(Alliant Energy) In October 2026, MGE customers get a $7.4 million credit because 2025 fuel came in under forecast.(MGE)
- Gas supply passes through what the utility paid for gas. We Energies explains its purchased gas adjustment as the difference between the estimated base gas price and what it actually paid.(We Energies) MGE's supply charge ran from $0.9192 a therm in February 2026 to $0.1570 in October.(MGE)
- Customer charges are billed per day. MGE's 2026 electric charge of $0.49315 a day is $15 a month.(PSC final decision)
Every Case
| Utility | Docket | Service | Years | Approved | Decided |
|---|---|---|---|---|---|
| MGE | 3270-UR-124 (reopener) | electric | 2023 | $38,985,000 (9.01%) electric, incl. higher 2023 fuel forecast; ROE 9.80%(PSC) | Dec 15, 2022 |
| MGE | 3270-UR-125 | electric | 2024, 2025 | +$7,332,000 (1.54%) 2024; cumulative +$27,472,000 (5.77%) 2025(PSC) | Dec 20, 2023 |
| MGE | 3270-UR-125 | gas | 2024, 2025 | +$5,349,000 (2.44%) 2024; cumulative +$8,586,000 (3.57%) 2025(PSC) | Dec 20, 2023 |
| MGE | 3270-UR-126 | electric | 2026, 2027 | +$0.740M (0.15%) 2026; +$19.2M (3.80%) 2027 over currently authorized(PSC) | Dec 18, 2025 |
| MGE | 3270-UR-126 | gas | 2026, 2027 | +$6.9M (2.77%) 2026; +$12.1M (4.86%) 2027 over currently authorized(PSC) | Dec 18, 2025 |
| MGE | 3270-ER-102 | electric | 2027 fuel cost plan | Pending(PSC) | — |
| Alliant (WPL) | 6680-UR-123 (reopener) | gas | 2023 | +$9.3M (4.74%) gas; ROE 10.00%(PSC) | Dec 20, 2022 |
| Alliant (WPL) | 6680-UR-124 | electric | 2024, 2025 | +$49,425,000 (3.76%) 2024; +$109,108,000 (8.27%) 2025 over then-current(PSC) | Dec 20, 2023 |
| Alliant (WPL) | 6680-UR-124 | gas | 2024, 2025 | +$12,756,000 (5.09%) 2024; 2025 +$12,127,000 (4.77%) over 2023, a slight cut from 2024(PSC) | Dec 20, 2023 |
| Alliant (WPL) | 6680-UR-125 | electric | 2026, 2027 | +$69.4M (4.77%) 2026; +$144.1M (9.84%) 2027 over currently authorized(PSC) | Dec 18, 2025 |
| Alliant (WPL) | 6680-UR-125 | gas | 2026, 2027 | +$7.2M (5.64%) 2026; +$12.3M (9.47%) 2027 over currently authorized(PSC) | Dec 18, 2025 |
| Alliant (WPL) | 6680-ER-105 | electric | 2027 fuel cost plan | Pending(PSC) | — |
| We Energies gas | 5-UR-111 | gas | 2025, 2026 | WG +$34.5M (4.15%) 2025; +$58.0M (6.71%) 2026 over then-current(PSC) | Dec 19, 2024 |
| We Energies gas | 5-UR-112 | gas | 2027, 2028 | Pending(PSC) | — |
| Madison Water Utility | 3280-WR-117 | water | 2025 | +$5,535,369 (9.89%); 6.80% return on rate base(PSC) | Apr 2, 2026 |
"Over currently authorized" percentages for a second year are measured against the rates before the case, so they're cumulative. What these rates add up to in your town is on utility costs by town, and whether switching to a heat pump pays at today's rates is on heat pump vs gas.
How to Weigh In
Every case has a public comment period and hearing, announced in the utility's bill insert.(PSC) Search a docket number on the PSC's Electronic Records Filing site to read the filings and comments. If a bill is already past due, the winter shutoff rules and payment help come first.
Questions
Why did my MGE bill go up in 2026?
Base electric rates barely moved in 2026 (the PSC approved 0.15%), but gas rates rose 2.77% and the gas customer charge went from $18.00 to $19.50 a month. The monthly gas supply charge, which passes through MGE's cost of gas, moves bills more than either.
Will MGE rates go up in 2027?
Yes, already approved: MGE electric rates rise 3.80% on January 1, 2027, about $5.41 a month for a home using 500 kWh, and the electric customer charge goes from $15 to $16 a month. MGE's 2027 fuel cost plan is still before the PSC.
How much are Alliant rates going up?
In its 2026-2027 case the PSC approved a 4.77% electric increase for 2026 and more in 2027. Alliant estimates about $4 a month for the average home in 2026 and another $8 in 2027, with the electric customer charge going to $16 and then $17 a month.
Who approves utility rate increases in Wisconsin?
The Public Service Commission of Wisconsin. PSC staff audit the utility's request, there are hearings and public comment, and the three commissioners decide at an open meeting, often approving less than the utility asked for.