Why Does My Utility Bill Keep Going Up?
Across Wisconsin, utility bills are increasing and causing additional strain on your pocketbook. In fact, according to the U.S. Energy Information Administration, the average retail price of residential electricity in Wisconsin has increased 43% since January 2020. While I am knocking on doors and talking to voters across the 17th Senate District, I am often asked about why utility bills are increasing and what can be done about the increased costs.
As consumers, we expect a reliable electric grid. When we flip on the light switch, turn on the heat or air conditioning, or go to work, we all expect the electricity to be there to power our daily lives. However, we also expect that the electricity we receive is affordable. For many years, Wisconsin has had, and continues to have, a reliable power grid. However, electric rates are becoming more and more unaffordable. Before you flip on the light switch, electricity must be generated, moved, and distributed to homes and businesses across the state and each part of this system tells a piece of the story about increasing costs.
Generating Electricity
Natural gas, coal, and nuclear power make up about 85% of the electricity generated in Wisconsin. In addition to these more traditional methods, the amount of electricity being generated from renewable sources, such as wind turbines and solar panels, is growing.
Across Wisconsin, traditional power plants must be upgraded and maintained to remain in useful service. In addition, some coal powered plants are shutting down, while others will be converted to natural gas. And, as we know firsthand in southwest Wisconsin, solar panels and wind turbines continue to be built at a rapid pace, even over local objections.
Building new renewable energy sources is expensive, especially at the scale we are now seeing. All of this new and upgraded infrastructure has to be paid for and the cost is ultimately paid by you and me on our electric bills. As more infrastructure is built, more costs are passed on to the customer, leading to higher bills.
Moving Electricity
As more electricity is generated from renewable sources, that electricity must be moved from one place to another through transmission lines. In addition, existing infrastructure is aging and will need to be replaced. As we know, a new transmission line can cost hundreds of millions of dollars and these costs are, again, ultimately paid by ratepayers through our electric bills.
Before a new transmission line is built, it is important to ensure that it is necessary. In the limited cases where it is deemed necessary, the next step is ensuring that the location of the line follows a path that is least obstructive to residents, businesses, and the landscape.
I want to pause here and take a moment to touch on three very important topics as they relate to electricity generation and transmission lines.
Large-Scale Wind and Solar Projects: I am proud to be the author of Senate Bill (SB) 3, which would return local control and give communities a say in the approval process for large-scale wind and solar projects. I share the frustration of many of you that these projects are approved by the Public Service Commission (PSC) over local objections.
Proposed 765kV Transmission Lines: I have heard from many of you about the proposed 765kV transmission lines. I share your concerns. Unfortunately, the state legislature does not have a role in the approval process. The PSC, with commissioners appointed by the governor, is the state agency solely responsible for reviewing and regulating transmission line projects. I encourage you to keep voicing your concerns about the proposals. After the application is submitted, the PSC will give an opportunity for public comment. As your State Senator, my role is similar to that of any other resident of the 17th Senate District, but I will join you in voicing my concern and make sure our voices are heard. We must keep advocating and standing up for ourselves to make a difference.
Data Centers: Whether it's large-scale wind or solar projects or a data center, locals know what is best for their communities. Local governments can say "yes" or "no" to data centers. I am proud that many of our local communities have stepped up and are making the decisions that are best for them. If a community says "yes" to a data center, it is important that there are strong guardrails in place to protect our land and water and to ensure data center operators pay for all their increased electricity needs. That is why I co-sponsored SB 843. SB 843 would have protected customers by preventing increased electricity costs for data centers from being passed on to you and me and required "closed-loop" cooling systems to protect our water, among other provisions.
Delivering Electricity
Inflation is driving the cost of labor, construction materials, transformers, power poles, and more higher and higher. All of these items cost more than they did even five years ago. Again, these higher costs are ultimately reflected in the rates we pay on our bills.
Lowering Costs
So how do we lower costs? The legislature has already taken a step toward lowering costs by eliminating the sales tax on all residential electricity and natural gas bills. This amounts to a 5.5% savings on your utility bill each month. I was happy to vote for this proposal. In addition, we need to ensure we do not overbuild the system. We can ensure data centers pay their full share by passing legislation like SB 843. We can reduce unnecessary red tape that drives up compliance costs. We can proceed with caution on new renewable energy projects and more.
In the State Senate, I will continue to advocate for policies that protect ratepayers and lower your monthly utility bills.
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