Madison—New data shows that transmission rates charged by American Transmission Company (ATC) have increased by 43% since 2019, far outpacing 27% CPI inflation.
As these costs continue to climb, preserving and promoting competition is more important than ever to help control costs on utility bills. Most energy infrastructure projects and most transmission projects in Wisconsin are built without any threat of competition.
However, two major transmission projects are slated to be competitively bid in Wisconsin as part of MISO’s Tranche 2.1 portfolio which includes three765-kV lines, for an estimated $1.78 billion. The Request for Proposal (RFP) for the Wisconsin Southeast Project (WISE) was due July 28. The RFP for the Bell Center-Columbia–Sugar Creek-Illinois/Wisconsin State Line (BECI) was due August 11.
The Ratepayer Protection Coalition looks forward to the results from MISO’s recent RFP deadline for these two large sets of transmission lines in Wisconsin. The winning bids will likely be announced in 45 – 60 days.
One of the most lobbied bills in the last three legislative sessions, the transmission Right of First Refusal (ROFR), would have effectively ended the competitive bidding process for the construction of these large interstate powerlines in Wisconsin. Incumbent utility monopolies and their owners (e.g. Vanguard Group, BlackRock Inc. and State Street Corp) have a massive incentive to put “steel in the ground” because of ATC’s 10.48% Return on Equity.
Since 2019, the Public Service Commission has approved roughly $2 billion in rate hikes with another $450 million pending for 2026-2027.
- Alliant Energy Corp/Wisconsin Power and Light is requesting an electric increase of $201.9 million or 13.9% over two years in docket 6680-UR-125. WPL’s rate case filing indicates that by the 2027 test year, WPL’s transmission expenses are expected to increase by $44 million, which represents approximately 21% of the utility’s total cumulative proposed rate increase in this case.
- Xcel Energy/Northern States Power – Wisconsin is requesting an electric increase of $150.7 million or 18.9% over two years in docket 4220-UR-127.
- MGE is requesting an electric increase of $47.7 million or 9.4% over two years in docket 3270-UR-126. MGE’s filing indicates ATC’s network service charge is $11.7 million, which is among the most significant contributing factors to their rate increase.
Wisconsin, once a leader in low-cost energy, now has the second-highest electricity rates in the Midwest, exceeding the regional average for more than 20 years.
All the state’s investor-owned utilities have announced unprecedented levels of new capital expenditure plans. ATC’s latest 10-year expansion plan, triple its 2019 level, totals $10 billion, or approximately $1 billion per year. With ATC’s rate base set to double between 2025 and 2029, transmission costs will continue to apply upward pressure on customer bills. Former FERC Chairman Christie has said transmission costs “are the single biggest driver of skyrocketing monthly power bills and have been for years.”
The Ratepayer Protection Coalition strongly believes companies should compete to win bids, proving their value through market accountability, not legislative protection. With transmission costs climbing and most utility projects shielded from competition, expanding competitive bidding and procurement is essential to protect ratepayers. Wisconsin legislators must continue to reject ROFR bills (Assembly Bill 25, Senate Bill 28, and Assembly Bill 174) and should pursue policies that bring more competition into the market.
