New Analysis: Wisconsin Households Could Save $380 on Electricity Bills by 2028 Through Action on Utility Profits and Data Centers

Contact: Emily Halvorson

5 Lakes Energy study estimates savings could top $4,000 per household by 2040 with investments in data center guardrails, clean energy, efficiency, and electrification

The average Wisconsin household could save $380 on its electric bill by 2028 if state lawmakers and regulators take action now to rein in utility profits and ensure large energy users pay their fair share, according to a new independent analysis from 5 Lakes Energy. The analysis identifies concrete actions policymakers can take to deliver meaningful relief for residents, including requiring data centers to cover the electricity costs they impose on the grid plus a surcharge and reducing the profits monopoly utilities are allowed to earn. Together, these changes could lower electricity bills for families and small businesses while helping build a more affordable, reliable energy system for the future.  

Wisconsin families are facing rising electricity costs as utilities seek higher profits and demand for electricity continues to grow. At the same time, the rapid expansion of data centers is creating new pressure on the electric grid and raising important questions about who should pay for the additional power and infrastructure these facilities require. According to 5 Lakes’ estimates, data centers could account for roughly 25% of the state’s electricity generation by 2028. Meeting this growing demand presents an opportunity to accelerate investment in Wisconsin’s clean energy resources, including clean energy and energy efficiency. Without stronger consumer protections and greater accountability for utilities, Wisconsin households and small businesses risk shouldering costs that should be borne by the large corporations driving new demand.

Read the report here. 

The analysis outlines three concrete policy actions Wisconsin policy makers can take to put consumers first and lower household electricity costs: 

• Make data centers pay their fair share: Require data centers to cover the costs they impose on the electric grid and establish an additional 2 cent per kWh surcharge on their electricity use to protect other customers from subsidizing their operations.
• Hold monopoly utilities accountable: Lower the authorized return on equity that regulators authorize for investor-owned utilities, bringing utility profits closer to the actual cost of capital and reducing unnecessary costs passed on to customers. 
• Invest in affordable energy solutions: Expand clean energy, energy efficiency, and electrification to reduce costs and deliver greater savings for households over time. 

The first two policies alone could save the average Wisconsin household the full $380 in savings by 2028, with an estimated $180 per household from the data center surcharge and $200 from lower utility returns. When combined with investments in clean energy, efficiency, and electrification, these policies could reduce residential electricity bills by nearly $500 million by 2028, compared with Wisconsin’s current policies. By 2040, the savings could exceed $4,000 per household.

The Public Service Commission of Wisconsin (PSCW) and the Legislature both have the authority to advance these reforms, and they don’t have to wait to begin delivering relief. Policymakers can act now to address utility profits and protect customers from Big Tech. With demand for electricity climbing and families facing growing affordability pressures, Wisconsin leaders have an opportunity to put consumers first and build an energy system that works for all Wisconsinites—not just powerful corporations. 

“Come January, we will be ready to pass legislation that will bring down utility costs, protect Wisconsin ratepayers, and make sure the public interest will come before the interests of giant corporations,” said State Representative Angela Stroud (D-Ashland). “That’s what voters sent us here to do, and that’s what we will do.”

“The rapid rise in data center load is unprecedented, and will require a different approach than simply saying that basic market forces of supply and demand will take care of it,” said Anna Markowski, Midwest Director of Climate and Energy at the National Resources Defence Council. “This report provides concrete numbers to quantify immediate savings the average Wisconsin household could experience if state policymakers take just a few simple steps.”

“Profits have been over the top for too long and customers pay for that through utility bills that have been rising faster than inflation,” said Tom Content, executive director of CUB. “It’s long overdue for policymakers to adopt common sense solutions like tying utility profits to affordability and rising energy burden. In this affordability moment, policymakers need to step up, dig in, and restore balance to enable stronger oversight of utilities—and monthly bills Wisconsinites can afford.”

“As Wisconsin enters a new political chapter following the Midterms, incoming leaders have an opportunity to deliver meaningful relief for families,” said Lauren Reeg, Evergreen Action Midwest advocate. “Wisconsin must establish clear safeguards to ensure massive energy users pay their fair share, hold monopoly utilities accountable, and invest in affordable clean energy resources that benefit communities statewide.”

A fact sheet detailing these interventions and their benefits can be found here.