Why Wisconsin Utility Bills are Spiking and What You Can Do About It

If you opened your latest utility bill and wondered what went wrong, you’re not alone.

Residents across Wisconsin are seeing a sharp increase in energy costs. And while some people are blaming it on their Christmas lights, consumer advocates say that’s largely a myth.

“Most Christmas lights these days are LED, and they use a fraction of the energy,” Tom Content, executive director of the Citizens Utility Board of Wisconsin explains during an interview on Civic Media Mornings. “They’re really not the culprit.”

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Listen to the complete discussion here:

Content says bills are spiking higher right now due to two main factors:

• weather is colder-than-normal
• natural gas prices are on the rise

The extended stretches of subzero temperatures significantly increased heating demand, pushing costs higher for households across the state.

“There’s less we can control in the heating months on the natural gas side of the bill,” Content says. “When it gets that cold, heating costs go up. Plain and simple.”

Many Wisconsinites are also seeing increases on the electric side of their bills. As of January 1, most major utilities – including We Energies, WPS, Alliant Energy, and Xcel Energy – implemented rate increases tied largely to infrastructure investments and grid maintenance. Madison Gas and Electric is the lone exception so far. 

Content shares that some of those increases are also connected to what the Citizens Utility Board believes are excessive utility profits. It’s prompting ongoing efforts to push regulators for greater balance and consumer protections.

Content is also looking ahead. And he’s warning there’s a new and potentially massive factor emerging.

It’s all the data centers.

“These are game changers for the energy grid,” he says. “We Energies took about 120 years to build demand up to 5,000 megawatts. Just two proposed data center projects in Port Washington could double that demand.”

Utilities and tech companies continue to claim data centers won’t drive up residential bills. But Content says consumer advocates remain skeptical and are urging the Public Service Commission to close regulatory loopholes which will prevent cost spillover to everyday customers.

Lawmakers from both parties are also considering legislation to create a statewide framework for how data centers are handled by utilities. It’s an approach the Citizens Utility Board supports as a way to protect consumers and ensure consistency across Wisconsin.

And for those already struggling to pay higher bills, Content reminds residents that help is available. There are federal energy assistance programs, including support for veterans through organizations like Heat for Heroes. Utility customers can also request free energy-saving kits through Focus on Energy, along with considering enrollment in budget billing plans to smooth out monthly costs over the year.

“We’re fighting energy inflation every day,” Content says. “But there are options out there for people who need help right now.”

Find a list of energy-saving resources here.