We Energies today asked the Public Service Commission of Wisconsin (PSCW) for permission to raise electric, natural gas and steam heating rates for its customers.

The Milwaukee-based utility is asking the state agency to authorize a 7.5-percent net increase in electricity rates in 2008 and another 7.5-percent increase in 2009.

We Energies spokesman Brian Manthey told SBT that large commercial customers will probably see an electricity rate increase that is slightly less than 7.5 percent, while residential customers will likely see a rate hike that is slightly more than 7.5 percent.

The company also is requesting a 4.1-percent rate increase for Wisconsin Gas customers and a 1.8 percent rate increase for the customers of Wisconsin Electric Gas Operations (WEGO).

In addition, We Energies is requesting an increase of 16.8 percent for its downtown Milwaukee steam utility and 16 percent for its Wauwatosa steam utility. The downtown utility provides heat for about 400 commercial customers.

The rate hikes would take effect in January 2008 after a PSCW order.

The requests are part of an overall plan that, according to We Energies, will: improve Wisconsin's air quality; add renewable energy sources in the state; promote effective energy efficiency programs; ensure a reliable energy supply; and return more than $660 million of proceeds from the proposed sale of the Point Beach Nuclear Plant to the company's retail customers in Wisconsin

A final decision on the Point Beach transaction is expected from the PSCW later this year.

The plan reflects We Energies' investments in the Blue Sky Green Field wind project in eastern Wisconsin, significant air quality control equipment at the company's existing power plants, new electric generating units at Port Washington and Oak Creek, and construction of transmission upgrades and additions by the American Transmission Company.

"The major investments in electric reliability detailed in this plan will strengthen the energy infrastructure in Wisconsin, reduce our dependency on expensive imported power and continue to improve the environment," said Roman Draba, vice president of regulatory affairs and policy. "At the conclusion of this two-year plan, many of the generation components in the Power the Future project and many of the transmission upgrades are expected to be near completion and customers will steadily see the benefits of these investments."