Key takeaways
- Wisconsin regulators approved roughly a 7% two-year increase for We Energies, below the roughly 9% requested, and set return on equity at 9.5%.
- The commission barred profit on $166 million of overrun spending at a solar-and-battery project that ran nearly 40% over its approved cost.
- Colorado approved $157 million of Xcel's roughly $356 million request, and California regulators take up $124 million in proposed pipeline-safety capital disallowances on Nov. 19.
- Utility buyers now have to defend every dollar. Lead with cost certainty, an on-budget record and documentation that holds up in a rate case.
When a utility buys equipment, software or services, the cost usually ends up in a rate case. That's where the state commission decides what customers pay and what the utility is allowed to earn. Over the past few months, several commissions have pushed back hard on those costs.
For vendors, that changes the conversation. A utility buyer now has to be ready to defend every dollar to regulators. Here's what happened and how to adjust your pitch.
Wisconsin: a smaller increase and no profit on overruns
On Nov. 5, the Public Service Commission of Wisconsin approved a rate increase for We Energies of roughly 7% across 2027 and 2028, according to Wisconsin Watch. The utility had asked for roughly 9% overall, including 16% for residential customers. The commission also set the utility's return on equity at 9.5%, below the 9.9% it requested, which Wisconsin Watch reports will save customers roughly $60 million over two years.
The sharper signal was on cost overruns. We Energies' Paris solar and battery park in Kenosha County came in nearly 40% above the cost the commission approved in 2022. Regulators let the utility recover the $166 million in unapproved spending but barred it from earning any profit on that amount. Two other solar projects, Darien (35% over budget) and Koshkonong (42% over), will be revisited in the next rate case.
Commissioners also rejected about $5.3 million in board-of-directors fees from customer bills. "I do not believe we can ignore the cumulative impact of years of increases," Commissioner Nieto said.
Colorado and California are pushing back too
In Colorado, Xcel Energy asked the Public Utilities Commission for about $356 million in added annual revenue, roughly a 9.9% increase for average residential customers. A settlement with PUC staff and others proposed $225 million. The commission approved $157 million. Commissioner Eric Blank noted that Xcel's capital spending had tripled since 2021 even as electricity sales declined. "I remain concerned that if capital spending and rates continue to grow at levels considerably faster than inflation, electricity may simply become unaffordable for many customers," he said.
In California, the Public Utilities Commission's Nov. 19 voting meeting is set to take up a proposed decision on pipeline safety costs. It would disallow $98.0 million of the $453.9 million in capital SoCalGas requested and $26.2 million of the $239.2 million SDG&E requested, according to Stoel Rives' regulatory update. In a separate SoCalGas decision on pipeline integrity costs, the commission disallowed $92.5 million of the $173.8 million requested, including about $24.5 million for projects without supporting workpapers.
That last detail is worth noticing. Missing documentation, not just high prices, cost the utility money.
What this means for utility buyers
- Overruns now land on the utility. If a project runs over budget, shareholders may absorb part of the cost. Project and procurement teams will be more careful about who they hire.
- Every cost needs a paper trail. Regulators are asking for proof that spending was reasonable. Costs without support are easier to deny.
- Affordability is the commission's frame. Consumer groups in Colorado counted eight Xcel rate increases since September 2023. Regulators are weighing every request against that history.
Expect utility buyers to ask harder questions about total cost, push for firmer pricing and want evidence they can show regulators later.
How to adjust your pitch
- Lead with cost certainty. Offer fixed prices, firm schedules and clear change-order terms. Say plainly what happens if you run late or over.
- Show your on-budget record. Point to past utility projects you delivered at the quoted cost, with a reference the buyer can call.
- Hand over rate-case-ready documentation. Give cost breakdowns, assumptions and benefit estimates in a form a regulatory team can use in testimony and workpapers.
- Tie benefits to customer bills. Frame value as lower operating costs, avoided capital spending or fewer outages, which are things a utility can defend in front of a commission.
- Follow the dockets. Rate case filings and decisions are public, and they show where a utility is under pressure. Our guide to government buying signals covers what to watch, and the utility funding tracker shows where outside money is flowing.
Keep outreach low-pressure. Regulatory and finance staff are busy defending budgets right now. A short note that offers a useful cost comparison will get further than a push for a demo. If a utility is in the middle of a rate case and not ready to buy, ask when it makes sense to check back, and respect the answer.
Where to look first
Start with utilities that just received a smaller increase than they asked for or had costs disallowed. They still have to maintain and upgrade their systems, but with less room for error. Commission decisions often spell out exactly which costs drew scrutiny, which tells you what a buyer will worry about.
Then look at who is filing next. A utility preparing a new rate case is deciding now which projects and vendors it can defend. Pairing docket research with account research is the kind of work our market intelligence team does before outreach starts.
How KSG helps
Kensington Sales Group's utility sales development team helps vendors find the utilities that fit what they sell and sets qualified meetings with the people who buy. For Siemens, that meant more than 2,500 utilities contacted and 70 meetings.
Sources: Wisconsin Watch, report on the PSC's We Energies rate decision (November 2026); Stoel Rives, Energy Regulatory Updates (November 4, 2026); GCN, report on the Colorado PUC's Xcel Energy rate decision.