MANITOWOC (NBC 26) — Manitowoc residents could see their utility bills climb by 20% to 30%, with the growing demand from data centers among the factors driving up costs.
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Manitowoc Public Utilities first requested a base rate increase in early 2025 and is still waiting for final approval from the Public Service Commission of Wisconsin. The utility now expects rate changes to take effect in the new year.
"We don't love having to share this news because we live here and it's hard," said Troy Adams, MPU CEO and general manager.
Adams said multiple forces are pushing rates higher.
"Certainly. There are a number of factors that are in our control and many that are outside of our control that are leading to rate increases here and across the state," Adams said.
One of those factors is the cost of upgrading transmission lines, which carry electricity from where it's generated to where it's needed.
"We see transmission being built across the state to support new wind and solar generations," Adams said.
Adams said MPU customers help pay for those upgrades, and growing demand for power is adding more pressure.
"MPU customers are partial owners of the grid locally. As new projects are being built we are part of capital costs where they ask for money and that is paid through the rates," Adams said.
That demand includes large-scale data centers being built in Wisconsin, world conflicts and other supply and demand factors.
"Geopolitical conflict, the build out of the transmission, pipeline expansion, availability of turbines, how fast data centers actually expand in our state," Adams said.
MPU Chief Financial Officer Cindy Carter said additional costs are coming beyond the pending rate decision.
"We have this base rate adjustment that we are waiting to get a final order from but we also have costs on top of that increasing in 27," Carter said.
"There will be an adjustment in the beginning of the year regardless of that filing with the commission," Carter said.
Carter said that for a typical residential customer, the base rate adjustment could mean about $15 more a month on their electric bill.
When asked whether these increases are expected to continue year after year, Adams said the trend is hard to forecast.
"Not to this magnitude but it's hard to predict the future," Adams said.
MPU says those who use their services should have received a notice of these changes with their last bill.
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