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Live Lines :: January 2026

Page 1

Volume 75, Issue 1

January 2026

Customer satisfaction Electric utilities faced with rising costs plummets to-time all lows By Sharon Wolf

recent years due to how costs are allocatedthrough rate design.

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lectricity costs are becoming a more noticeable part of household Several of the driversidentifiedin naand business budgets across Wis- tional research have particular relevance consin, adding to broader cost pressures in Wisconsin: from food, insurance, and housing. While Costs for utility infrastructure and national electricity prices have generally grid modernization: A significant followedinflation in recent years, Wiscon- share of rising electricity costs comes sin is among the states where consumers from investments in transmission and are experiencing sustained upward pres- distribution systems. Utilities are resure on electric bills. These trends afplacing aging infrastructure, imfect all utility customers, including proving reliability, hardening those served by Wisconsin ’s pubsystems against severe weathlic power utilities. er, and modernizing the grid to accommodatenew techResearch from Lawrence Berk nologies. eley National Laboratory, a

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federally funded research and Modest load growth and development center sponsored recovery of fixed costs:One by the U.S. Department of of the strongest findings from Energy, helps explain why electhe Berkeley Lab research is that states tricity prices are rising and why the expe- with slow or declining electricity derience can differ by state and utility type. mand tend to see higher prices. When From 2019 to 2024, U.S. electricity prices overall electricity sales are flat, utilities must recover fixed costs— such as rose sharply in nominal terms, due to infrastructure investments— over inflation, fuel price volatility, and major fewerkilowatt-hours. infrastructure investments. Although many states saw flat or declining prices after adjusting for inflation, others — including Wisconsin — have seen real increases that directly affect consumers. Residential customers tend to feel these increases most acutely. Residential rates are generally higherthan commercial and industrial rates and have risen faster in

This dynamic is especially relevant for public power utilities in Wisconsin, many of which serve stable or slowly growing communities. Without significant load growth, even well -managed municipal utilities can face upward rate pressure simply to cover essential system costs. Continued on page 2

in national surveying Results of an annual survey of residential electric utility customers released in mid-December show that overall customer satisfaction has dropped to 499 (on a 1,000 -point scale), the lowest score ever recorded across residential utility studies conducted by J.D. Power and Associates. By comparison, a year ago, the overall score nationallywas 707. Ratings for Wisconsin’s investorowned utilities (IOUs) reflectedthe national trend of lower residential customer satisfaction in the most recent surveys. The average of large Midwest-based utilities was 509 — Continued on page 3

INSIDE THIS ISSUE Beat the winter blues; take care of you Page 2 A look ahead at 2026 priorities from MEUW’s President and CEO Pages 4 -5 MEUW News Monitor Page 6 Community Spotlight on Reedsburg Pages 8 -10 Focus on Energy expands offerings, increases incentives for 2026 Page 13 Classifieds — Page 14

Municipal Electric Utilities of Wisconsin ’s mission is to strengthen and unify community -owned utilities . Since 1928, MEUW has been the trade association for Wisconsin ’s 81 public power communities and is affiliated with the American Public Power Association (APPA) — www.publicpower.org

A monthly publication of Municipal Electric Utilities of Wisconsin, Inc. | 725 Lois Drive ⚫ Sun Prairie, WI 53590 | www.meuw.org


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