Northern States Power – Wisconsin (NSP-W), a subsidiary of Xcel Energy, is the regulated electric utility serving most of Gogebic and part of Ontonagon counties in the western-most part of the Upper Peninsula. CUB recently took part in a settlement agreement in NSP-W’s rate case that reduces the rate increase for NSP-W customers by 52% in 2025 (relative to what the utility initially requested for a rate increase) and prevents the utility from filing another rate increase in 2026, potentially saving customers even more.
On Dec. 19, 2024, the Michigan Public Service Commission (MPSC) approved the settlement agreement between NSP-W and the MPSC Staff, the AG and CUB in case U-21565. It provided for a $1.75 million rate increase in 2025 and a $550,000 rate increase in 2026, as well as a return on equity (ROE) of 9.8%. NSP-W agreed to refund to its Michigan electric customers 100% of Michigan electric jurisdictional earnings above the authorized ROE of 9.8% for 2025 and 2026.
NSP-W had initially requested a $2.89 million rate increase starting in 2025 with a return on equity of 10%. Also as part of the settlement agreement, NSP-W agrees not to seek another rate increase before Jan. 1, 2027, unless corporate tax rates are increased.
Under the settlement, NSP-W’s current fixed customer charges will stay at existing levels, which aligns with a recommendation from CUB and the AG to reject the utility’s proposed increase in the residential fixed monthly customer charge.