MGE Rate Hike for 2024

  • June 22, 2023
870 450 Tom Content


Update: In December 2023, the PSC approved rates that pared back the utility’s request, to a 5.8% increase over two years from the requested $7.3 million, reducing the overall request by more than $7 million.

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 sought:

Electric rate increase:

    • 2024: $18.5 million, 3.75%
        • 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%


    • MGE proposed to keep its profit rate, or return on equity, at 9.8%.
    • CUB said that rate is still higher than the national average and is more than is needed to attract capital on Wall Street. CUB advocated for a 9.3% return, which CUB projected would have saved $12 million.
    • The PSC reduced the profit rate to 9.7%, saving $2.4 million over the next two years.


    • MGE reported 2022 profit of $111 million, or more than double the size of the 2024 rate increases sought.
    • Customers across the country are overpaying by billions from profit rates that have remained far too high for far too long.


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 proposed 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. Update: CUB opposed the MGE proposal. The PSC denied the change and instead launched a statewide investigation, getting going in 2024, to look at compensation for customers with solar panels on their homes.
    • 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. CUB suggested the ECAP be authorized but recommended a series of other initiatives for low-income customers, including creation of a forgiveness program. The PSC rejected the ECAP, required MGE to propose a forgiveness program and launched a new investigation into new affordability initiatives for MGE customers.


    • Spring/Summer: PSC Audit, Analysis by CUB and other groups
    • Aug/Sept: CUB experts, PSC staff weighed in. See CUB’s legal brief summing up the case here.
    • Sept. 6: Public Hearing in Madison
    • Nov. 3: PSC Open Meeting to Decide the Case: See YouTube video here.
    • Dec. 20: PSC Final Decision. Read it here.