MGE RATE CASE HIGHLIGHTS
In April 2023, Madison Gas & Electric filed an application to raise electricity and natural gas prices in 2024 and 2025.
In PSC case 3270-UR-125, MGE is seeking:
Electric rate increase:
- 2024: $18.5 million, 3.8%
- Residential: 4.84%
- Small Business: 4.48%
- 2025 $16.9 million, or 3.4%
- Residential: 4.46%
- Small Business: 4.20%
- Total Electric Increase 2024-2025: 7.3%
- Residential customers: 9.6%
- Small businesses: 8.8%
Natural gas increase:
- 2024: $6 million, or 2.56%
- Residential: 3.24%
- Small business: 0.84%
- 2025: $4 million, or 1.66%
- Residential: 1.61%
- Small Business: 0.96%
FOCUS ON PROFITS
- MGE is proposing to keep its profit rate, or return on equity, at 9.8%.
- But that rate is still higher than the national average and is more than is needed to attract capital on Wall Street.
PROFITS TOO HIGH
- MGE reported 2022 profit of $111 million, or more than double the size of the 2024 rate increases being sought.
- Customers across the country are overpaying by billions from profit rates that have remained far too high for far too long.
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 recent or new investments in solar, battery storage, and natural gas electricity resources.
- Lower projected fuel costs, due in part to renewable energy investments, offset some of the factors pushing rates up.
- Rooftop Solar: MGE is proposing a change to how customers who install solar starting in mid-2024 would be compensated. These new solar installations would be provided a onetime, up-front credit, and would be paid for electricity delivered to MGE under the same rates currently authorized for larger solar energy systems.
- Affordability: MGE is proposing an Energy Customer Assistance Program that aims to help customers who are struggling with bills but whose income is too high to qualify for state energy assistance. MGE’s would provide a $6 monthly incentive credit and is aimed at increasing customer utilization of existing assistance programs that customers may not be aware of.
- Ongoing: PSC Audit, Analysis
- Aug/Sept: CUB experts, PSC staff weigh in
- Sept. 6: Public Hearing
- Nov/Dec: PSC Decision
FIND OUT MORE
- 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-125)
HAVE YOUR SAY
- Attend the public hearing on Wednesday, Sept. 6, at 1 p.m. or 6 p.m. at the Public Service Commission, Room S105, 4822 Madison Yards Way, Madison. Attend via Zoom at https://us02web.zoom.us/my/pschearings, or by telephone at 1 312 626 6799, using Meeting ID: 809 513 2930
- Submit a written comment to the PSC here. The deadline for submitting comments is Sept. 26.