MGE Files Rate Changes for 2017

Madison Gas and Electric has filed an application with the Public Service Commission of Wisconsin to increase electric and natural gas rates in 2017.

Rate changes at a glance:
• MGE requests 1.7% increase in electric rates for 2017.
• MGE requests 3.7% increase in natural gas rates for 2017.
• MGE is not requesting any increase to the fixed charge for residential and small business customers in 2017.
• Primary driver for rate increase is infrastructure improvements to ensure continued reliability and safety of electric grid and natural gas system.
• Average annual increase in MGE’s rates from 2013-2017 remains lower than the projected increase in Consumer Price Index.

The request would increase overall electric rates by 1.7% in 2017. It also would increase overall natural gas rates by 3.7%. If approved, the typical residential electric bill would increase by $1.50 a month, and the typical natural gas bill would increase by $1.70 a month. The proposed changes would take effect January 1, 2017. MGE is holding to its commitment under its Energy 2030 framework and not requesting any increase to the fixed charge for residential and small business customers in this filing.

The primary reason for the rate request is continued reliability:
• Transmission infrastructure improvements to ensure the continued reliability of the electric grid. MGE continually ranks among the top utilities in the country for electric service reliability. In 2015, 73% of MGE customers did not experience an outage.
• Natural gas system infrastructure improvements to ensure the continued reliability and safety of the natural gas system.

In the filing, some increases in electric operating expenses are offset by decreases in fuel costs. With this proposed rate increase, the average annual increase in MGE’s electric rates from 2013 through 2017 will equal 0.5% while the average annual increase in MGE’s natural gas rates also will equal 0.5%. In comparison, the projection for the Consumer Price Index for the same period is an average of 1.4% per year.

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