In March 2025, Madison Gas & Electric filed an application to increase rates for 2026 and 2027. That’s on the heels of the increase that affected customers during 2024 and 2025.
In PSC case 3270-UR-126, MGE seeks:
Electric rate increase:
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- 2026: $24.7 million, 4.9%
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- Residential: 6.5%
- Small Business: 3%
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- 2026: $24.7 million, 4.9%
- 2027 $23 million, or 4.3%
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- Total Electric Increase 2026-2027: $47.7 million, or 9.4%
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- Residential customers: 10%
- Small businesses: 6.2%
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Natural gas increase:
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- 2026: $5.7 million, or 2.3%
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- Residential: 4.7%
- Small business: 7.5%
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- 2026: $5.7 million, or 2.3%
- 2027: $5.4 million, or 2.2%
- Total Natural Gas Increase 2026-2027: $11.1 million, or 4.5%
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- Residential customers: 9%
- Small businesses: 14%
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FOCUS ON PROFITS
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- MGE proposes to raise its profit rate, or return on equity, from 9.7% to 10.0%.
- CUB believes that rate is still higher than the national average and is more than is needed to attract capital on Wall Street.
- In 2023, the PSC reduced the profit rate to 9.7%, saving $2.4 million during 2024 and 2025.
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PROFITS TOO HIGH
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- MGE reported 2024 profit of $120 million, or more than twice the size of the 2026-27 rate increases sought.
- Customers across the country are overpaying by billions from profit rates that have remained far too high for far too long.
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THE COST OF THE ENERGY TRANSITION
Major drivers of MGE’s electric rate case include items related to the company’s approach to the clean energy transition.-
- Increase in rates associated with investments in solar, battery storage and natural gas power plants, including cost overruns for some of those projects.
- Increased natural gas costs linked to system upgrades.
OTHER CHANGES
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- MGE is proposing a new distributed energy resources initiative, changes to time-of-use rates, a new solar offering for business customers looking to decarbonize.
- MGE Connect: MGE would expand the MGE Connect “bring your own device” demand response program during 2026 and 2027.
- Customer Charge: The customer charge, now $15 a month, would increase by $1 each year under the utility’s proposal.
TIMELINE
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- Spring/Summer: PSC Audit, Analysis by CUB and other groups
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- Aug/Sept: CUB experts, PSC staff weigh in.
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- Sept./Oct.: Public Hearing (Date TBD)
- Nov.: PSC Open Meeting to decide the case.
- Dec.: PSC Final Decision
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FIND OUT MORE
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- See the filings in the case at the PSC here.
- Create an “ERF-EZ Subscription” to see when new information is filed. (Docket 3270-UR-127)
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HAVE YOUR SAY
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- Check CUB’s Active Cases page and the PSC’s New Applications Page for current cases involving MG&E.
- Submit a written comments on PSC cases and find out about public participation here.
