Xcel Energy Files for Multi-Year Rate Increase in Wisconsin

Xcel Energy has filed a request with the Wisconsin Public Service Commission for a multi-year rate increase of $151 million for electric services and $24 million for natural gas services. The proposed electric rate increase is 11.8% in 2026 and 7.1% in 2027, while the natural gas rate increase is 12.7% in 2026 and 1.5% in 2027. The commission is expected to make a decision in late 2025.

Madison, WI — The Wisconsin Public Service Commission (PSCW) is set to decide on Xcel Energy's request for a multi-year rate increase. The utility has filed a proposal seeking a $151 million increase for electric services and $24 million for natural gas services over the 2026-2027 period. The proposed rate increases are significant, with the electric rates expected to rise by 11.8% in 2026 and 7.1% in 2027, while natural gas rates are slated to increase by 12.7% in 2026 and 1.5% in 2027 [2].

The PSCW staff has recommended adjustments, suggesting a $115 million increase for electric and $21 million for natural gas, reflecting capital investments and operational costs. The commission's decision is anticipated by late 2025 [2].

This rate increase request comes amidst a broader trend of rising transmission costs in Wisconsin, with American Transmission Company (ATC) seeing a 43% increase since 2019, significantly outpacing inflation [1]. The state's investor-owned utilities have also announced substantial capital expenditure plans, with ATC alone planning a $10 billion expansion over the next decade, which could further impact customer bills.

Xcel Energy's request highlights the need for competitive bidding in utility projects to control costs and protect ratepayers. The Ratepayer Protection Coalition has been advocating for more competition in the market, arguing that legislative protections like the transmission Right of First Refusal (ROFR) should be rejected [1].

The commission's decision will be closely watched by investors and financial professionals, as it could set a precedent for future rate cases and impact Xcel Energy's financial performance and stock valuation. As of the current date, the stock is trading with a Hold rating from analysts, with a $66.00 price target [2].

References:
[1] https://www.wispolitics.com/2025/sjl-government-affairs-transmission-costs-rising-faster-than-inflation-in-wisconsin-competitive-bids-turned-in-and-awaiting-results/
[2] https://www.theglobeandmail.com/investing/markets/stocks/XEL/pressreleases/34085975/xcel-energys-rate-increase-proposal-adjustments-recommended/