Electricity and Natural Gas Prices Far Outpace Inflation

MADISON, Wis. – Electricity and natural gas prices in Wisconsin far outpaced the rate of inflation over the last decade, with the sharpest spikes coming over the last five years, an Associated Press review found.

Wisconsin’s five largest utilities have asked state regulators for nearly $1.4 billion in annual electric and natural gas rate increases since 1995, with $921 million of that coming since 2000. The state Public Service Commission has approved $810.7 million of those requests, including $690 million since 2000.

Utility and industry experts blame a combination of new power plant construction, high-priced power imported from other states and volatile natural gas rates.

“Yes, rates have absolutely gone up this year and it’s been very frustrating for me as a commissioner,” said PSC chairman Dan Ebert. “But at the end of the day, these are costs we can’t just say no to. If we want reliability and we want the lights to go on, we’ve got to make the tough decisions.”

AP