Summary
Xcel Energy Inc.'s wholly-owned subsidiary, Northern States Power Company-Wisconsin (NSP-Wisconsin), has filed a significant rate increase request with the Public Service Commission of Wisconsin (PSCW). The proposed increase aims to raise electric revenues by $94 million (11.8%) in 2026 and an additional $57 million (7.1%) in 2027, totaling $151 million over the two-year period. For natural gas, the request is for $20 million (12.7%) in 2026 and $4 million (1.5%) in 2027, amounting to $24 million (14.2%) over the same period. These rate adjustments are primarily driven by substantial investments in NSP-Wisconsin's electric and natural gas infrastructure, aimed at enhancing reliability, resiliency, and supporting clean energy initiatives, including the benefits from wind, solar, and nuclear tax credits. The company is requesting a 10.0% return on equity with an equity ratio of 53.5%. A decision from the PSCW is anticipated in the fourth quarter of 2025, which will be a key date for investors to monitor.
Key Highlights
- 1NSP-Wisconsin is seeking a total electric revenue increase of $151 million over 2026-2027.
- 2The proposed electric revenue increase represents an 11.8% rise in 2026 and a 7.1% rise in 2027.
- 3NSP-Wisconsin is also requesting a natural gas revenue increase of $24 million over 2026-2027.
- 4The natural gas revenue increase equates to 12.7% in 2026 and 1.5% in 2027.
- 5Rate increases are driven by investments in system reliability, resiliency, and clean energy infrastructure.
- 6The company is proposing a 10.0% return on equity.
- 7A decision from the Public Service Commission of Wisconsin (PSCW) is expected in Q4 2025.