Wisconsin rates for electric and natural gas

Why are gas rates being adjusted?

In 2021, we reached a rate settlement agreement which included an adjustment to electric and natural gas rates in Wisconsin for 2022 and 2023. The settlement, which was approved by the PSCW, allowed Alliant Energy to file for a limited reopener for our natural gas operations. Following the terms of the settlement, we filed a proposal with the PSCW in June 2022 to reflect changing interest rates and our investments in the natural gas distribution system.

What is the expected impact on customer natural gas rates for the 2023 natural gas rate adjustment?

The PSCW approved increased natural gas revenue by approximately $9.3 million (estimated annual 4.7% increase on total bill) beginning January 1, 2023.

• In 2023, the average residential gas customer is projected to experience a monthly bill increase of approximately $3.
• In 2023, the average commercial and industrial gas customers are projected to experience an average rate increase between 3%-10%, depending on customers’ rate class and natural gas usage.

In addition to this rate adjustment, we expect this winter’s higher-than-average natural gas prices will also impact fuel costs for gas customers. The U.S. Energy Information Administration stated, “Many households across the United States are likely to spend more on energy in the winter of 2022–23 compared with recent winters.” According to the report, energy costs for U.S. homes heated with natural gas are expected to rise by 28% during the period between October and March.

Why are electric fuel costs being adjusted?

Wisconsin regulations require utilities to file an annual proposed fuel cost plan for the following calendar year. This plan must include a calculation of certain fuel costs as well as other required information which is then reviewed by the PSCW and used to establish the utility’s rates. As actual monitored fuel costs differ from the projections, the PSCW provides for an annual reconciliation of fuel costs incurred in the plan year. Alliant Energy’s 2023 fuel cost plan projects an overall increase in fuel costs compared to the previously approved plan. It is important to note that in Wisconsin, fuel costs are a pass-through cost on which utilities such as Alliant Energy do not profit.

For the 2023 Fuel Cost Plan adjustment, what is the expected impact on customers' electric rates?

The PSCW approved projected 2023 fuel costs of $365 million. When combined with the previously approved fuel reconciliation plan (docket 6680-FR-2021), the net result of these adjustments will be an overall 6.8% increase to customer rates, effective January 1, 2023. This combined $0.007751/kilowatt-hour (kWh) surcharge will be identified on customer bills as “2023 Fuel Adjustment.”

• Residential electric rates will increase 5.1%, with an estimated monthly impact of $5.43 for the average residential customer.
• On average, commercial and industrial electric rates will increase 9.1%.

When will the gas rate and fuel cost adjustments take effect?

Will my rates go up again the following year?

What is Alliant Energy doing to manage energy costs?

To manage costs, we continue to operate our system, as efficiently as possible. This includes lowering operations and management expenses. Following our Clean Energy Blueprint, we’re investing now in order to avoid at least $1.6 billion in future costs which we would have incurred had we continued "business as usual."