Milwaukee's Common Council voted unanimously Friday, Nov. 6, to spend up to $1.35 million studying whether the city should take over We Energies, the utility that serves more than a million customers across Wisconsin.

The 15-0 vote came one day after the Wisconsin Public Service Commission (PSC) approved the company's sixth rate hike since 2020. As we reported Nov. 6, the PSC scaled back We Energies' request but still approved a 3.9 percent base electric rate increase in 2027 and 3.5 percent in 2028.

We Energies estimates a typical residential customer's monthly electric bill will rise $7 to $8 in 2027 and $6 to $7 in 2028, according to WPR.

The feasibility study still needs approval from Milwaukee Mayor Cavalier Johnson, who could use his partial veto power to strip it from the city's 2027 budget, FOX6 reported.

Council members push back on rates

Milwaukee Alderman Alex Brower, who sponsored the legislation, framed the vote as a direct challenge to the utility.

"If you're sick of the way We Energies operates … what you have to say right now when we take the vote on this is yes," Brower said at the meeting, according to FOX6. "You will send a message to them."

Milwaukee Alderman Russell Stamper pointed to the latest rate hike. "Either they not worried about us or they daring us, either way it goes, I don't like the disrespect," Stamper said, according to FOX6.

The proposal originally failed in committee with a 2-2 vote and one abstention before passing the full council unanimously.

We Energies pushes back

We Energies spokesman Brendan Conway said the utility was not part of the discussions before the vote, according to FOX6.

"I think we would have appreciated the opportunity to talk with the city before they took this vote," Conway said. "I think that would have been helpful for everyone, including the taxpayers in Milwaukee."

Conway pointed to other cities that have considered taking over their power companies. He predicted the study would show a takeover costing "billions and billions of dollars" and said voters would likely reject it. Voters in Ann Arbor, Michigan, rejected a similar proposal the same week, FOX6 reported.

We Energies defended the rate hike, saying revenue is needed for solar and wind projects, infrastructure upgrades and rising operating costs.

What it takes to replace a utility

Under Wisconsin law, a municipality that wants to take over a utility must win voter approval in a referendum, according to FOX6. The city would then need to take the matter to court, where a judge or jury would decide whether the takeover is necessary.

If the study survives Johnson's veto pen, Milwaukee would issue a request for proposals. A task force would help draft that request, FOX6 reported.

Rate hike hits close to home

The PSC approved the rate increases after a 10-hour hearing Nov. 5. The commission reduced We Energies' profit rate from 9.8 percent to 9.5 percent and eliminated board of directors' expenses from customer rates, according to WPR. The PSC also authorized the return of more than $25 million to We Energies customers, according to the PSC's press release.

PSC Commissioner Kristy Nieto said We Energies is one of the nation's most profitable utilities, with rates among the highest in the Midwest, WPR reported. A typical residential We Energies customer's bill increased 33 percent from 2022 to 2026, according to the Citizens Utility Board of Wisconsin, as reported by WPR.

We Energies has a direct footprint in Kenosha County. The PSC in 2022 approved the utility's $433 million purchase of a solar farm and battery storage facility in the county, according to Wisconsin Watch. The final price tag exceeded the approved figure by nearly 40 percent, and commissioners barred We Energies from earning a profit on the $166 million in unapproved spending.

The PSC's final written order setting precise rates is expected in the coming weeks.