FOR IMMEDIATE RELEASE
Date: April 15, 2024
Contacts: Megan Wittman, megan.wittman@sierraclub.org
We Energies Files Third Rate Increase in Three Years; Marginalized Milwaukeeans to Bear the Brunt of Higher Rates
Milwaukee, WI – On Friday, We Energies filed yet another rate increase for its customers, the third increase in three years. Rates will increase approximately $10-11 more per month for residential customers in 2025 and an additional $7-8 more in 2026. In the last two years, We Energies increased its rates more than 13% and continues to propose costly fossil fuel gas projects that will contribute to higher rates and more pollution in the region.
Sierra Club and several other organizations have additionally released its follow-up study on energy burden in Milwaukee, revealing how We Energies’ continued costly fossil fuel projects and rate increases disproportionately harm Black and Hispanic/Latinx neighborhoods, who are experiencing energy burden roughly double that of predominantly white neighborhoods. The original report was published in 2021.
“Energy burden” is the percentage of household income that goes toward energy costs. “High energy burden” is considered to be 6% or more. The 2021 study found a strong correlation between energy burden and historically redlined areas, demonstrating that high energy burden rates resulted from a combination of factors on both the income and expense sides. Not only are Black and Latinx majority census tracts on average lower income than white majority census tracts, but energy bills also tend to be higher in those neighborhoods of color due to disproportionately high rates of older, inefficient, and/or rental housing.
Though the median energy burden in Milwaukee has decreased slightly from 2021 to 2024, racial disparities in energy burden in Milwaukee still remain among the highest in the nation:
- While 16% of Milwaukee’s metro population is Black, 65% of residents of high-burden neighborhoods are Black. 11% of the metro area population is Hispanic or Latinx, but 19% of the population in high-burden neighborhoods is Hispanic/Latinx.
- The Milwaukee metro area’s white population is about two thirds of the total population, but white residents only account for 9% of the population in high-burden neighborhoods.
- Black neighborhoods saw the smallest decrease in median energy burden, while white neighborhoods saw the largest decrease in median energy burden. This indicates that any improvements are disproportionately missing those who need them the most.
Some of the lowest income customers are worse off than before. More information from the newest report can be found here: www.sierraclub.org/sites/default/files/2024-04/EB%20report%20update%202024%20%281%29.pdf
The coalition hosted a rally on Friday calling out We Energies’ continued unaffordable rate increases.
The coalition released the following statements:
“Yet another costly increase from We Energies that will disproportionately burden Black, Hispanic, and Latinx Milwaukeeans. We Energies is raking in profits, increasing rates, and proposing expensive fossil fuel projects that only further harms their customers. Issues of climate justice and racial justice go hand in hand, and there is no greater example than Milwaukee. While We Energies CEOs’ pockets are being padded, Milwaukeeans are paying the price,” said Cassie Steiner, Senior Campaign Coordinator at Sierra Club - Wisconsin Chapter.
“We Energies consistently acts only in the interests of its shareholders and executives, placing profits over the lives, health, and well-being of Wisconsinites. Time and time again they refuse to take even the smallest steps to make energy more affordable, modernize our energy grid, or combat climate change. We need a new system for controlling utilities to address these issues because We Energies never will,” said Joshua Taylor of PSL Milwaukee.
“I have lived experience and I deal and work with people in the community who have faced financial challenges because of We Energies. Some of the stories I’ve collected from folks are totally heartbreaking. It is outrageous and despicable that We Energies continues to get richer, while residential folks struggle to pay their bills,” said Keveia Guiden, Energy Burden Organizer, North Side Rising Co-op, Citizen Action of Wisconsin.
“Raising energy rates without a percentage of income payment programs or plans to conduct efficiency upgrades on older properties puts a further burden on families who are already having to choose between paying for rent, electricity, or groceries each month. Access to affordable lighting, heating, and cooling is a human right,” said Jenny Abel, Chair of Sierra Club Great Waters Group.
“To be Indigenous means to regard all our decisions being made on our energy, water, and natural resources as sustainable for the seven generations that will come after us,” said Amaya Varela, Youth & Family Coordinator, Gerald L. Ignace Indian Health Center.
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This coalition is made up of several organizations, including Citizen Action - Northside Rising, Clean Wisconsin, Sierra Club Wisconsin Chapter and Great Waters Group, Healthy Climate Wisconsin, Party for Socialism and Liberation, and Walnut Way Conservation Corp.