After latest We Energies rate hike, Milwaukee Common Council approves study on creating city's own electric utility
MILWAUKEE (CBS 58) — The Milwaukee Common Council on Friday unanimously approved spending $1.35 million to study whether it's realistic for the city to start its own electric utility.
The vote came less than 24 hours after the Wisconsin Public Service Commission (PSC) approved a rate increase for We Energies, although the amount of that increase was about half of what We Energies was seeking.
Milwaukee has never had its own electric utility, although the city was a pioneer when it launched its own water and sewer utility in 1871.
About two dozen people cheered loudly inside City Hall after the council vote.
Ald. Alex Brower and Ald. JoCasta Zamarripa, who is also Wisconsin's secretary of state-elect, led the push for the study.
"Simply asking for a feasibility study. We deserve that," Zamarripa said. "Milwaukeeans deserve that. Our constituents deserve to seriously take a look at the possibility of us owning our own utility."
We Energies spokesperson Brendan Conway said it was unlikely a Milwaukee-operated electric utility would provide the same level of service.
"If you care most about reliability, and I know that's what our customers care most about, things like this are not helpful to that end," Conway said.
In the spring, We Energies filed a request for a 15% increase to residential electric rates through 2028.
The PSC approved an increase Thursday night, and while a final amount won't come out until its written decision is released in December, both the utility and consumer advocates estimate that increase will fall between 7% and 8% over the next two years.
We Energies estimates that will translate to typical bills increasing by $7 or $8 per month next year, then another increase of $6 or $7 per month in 2028.
For everyday people like Gloria Garrett, who works at the Milwaukee Athletic Club downtown, it's yet another cost increase she can hardly afford.
"People are trying to pay rent, they're trying to put food on the table," Garrett said. "Trying to take care of kids, and then, they wanna up the price on energy bills? Why?"
Conway said the increase was necessary to maintain and improve existing infrastructure while also building out new clean energy systems, including wind, solar and natural gas sources.
"It's building more Wisconsin-based energy," Conway said. "Trimming trees, burying power lines to make sure that when severe weather hits, we don't lose power."
The Citizens Utility Board advocates for the public during rate hearings before the PSC.
Tom Content, the group's executive director, said he was pleased the PSC knocked down the proposed increase by a greater amount than the board typically has.
"We don't know if it's gonna be cut in half from what they proposed in April, but it's cut significantly," Content said. "And they made good strides in several areas to bring down the profits."
The PSC lowered We Energies' authorized return on equity from 9.9% to 9.5%.
Content said he was hopeful a Democratic trifecta in the state Capitol next year will mean even tighter restrictions on large utilities' profits, noting WEC Energy Group, We Energies' parent company, has taken in nearly $1.5 billion in 2026 profits through September.
"The commissioners, I think, are sensing the affordability moment," Content said. "That was in evidence on Election Day around the country and here in Wisconsin."
In Wisconsin, it is not uncommon for municipalities to have their own electric utility.
According to the Municipal Electric Utilities of Wisconsin, 81 communities across the state have city-run electric utilities, including Cedarburg, Elkhorn and Oconomowoc.
Whether that's realistic in a city the size of Milwaukee will now be the subject of a million-dollar study.