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.

MGE Partners with Local Banks

Madison Gas and Electric has announced a financing partnership
with seven regionally and locally owned banks operating through-
out MGE’s service territory. The $40 million unsecured revolving
credit facility will be used for general corporate purposes.

“Raising capital in MGE’s service area helps form strong partner-
ships,” according to Jeff Newman, MGE Vice President and Chief
Financial Officer. “We’ve put in place a new form of financing that
provides us with liquidity and diversifies our lender base. In the
process, we’ve established new relationships with banks operating
within MGE’s service area that are also our customers.”

Neitzel Leaves Madison Gas & Electric to Accept State Appointment

Scott Neitzel Secretary, DOA

Madison Gas & Electric Vice President Scott Neitzel has resigned to accept an
appointment by Wisconsin Governor Scott Walker as Secretary of the State Department of Administration (DOA). The position is generally considered to be the second most powerful position in state government.

PSC MAKES FAVORABLE DECISIONS IN THREE CRITICAL RATE CASES

The Wisconsin Public Service Commission has ruled in three
separate rate cases brought by Wisconsin Public Service
Corporation, We Energies and Madison Gas and Electric. In
all three cases, the utilities were allowed to increase their
fixed charges. These increases are offset by reductions in the
variable charge. We Energies fixed rate would increase from
$9 to $16 a month. MG&E’s fixed rate would rise from $10.44
to $19. PSC Chairman Montgomery said the changes were “an
exercise in customer fairness.” Wisconsin Utility Investors had
strongly supported the changes.

Renewable Energy Fails Protesters Calling for More Renewable Energy

Madison liberals, protesting against fair rates for the everyone who relies on the electric grid, got a lesson in reliability.  In this MacIver Institute video report, the blow up coal plant, meant to show the evil utilities, deflates when their solar panels are unable to provide enough reliable power to run the blower.  The problem is easily remedied by plugging into the grid they were protesting, because Madison Gas and Electric has a responsibility to keep energy available 24/7.  Proof once again that, even people devoted to distributed generation rely on the electric grid and should share in the cost…it’s only fair.

The McIver Institute Video Report:

See YouTube video

« Older Entries Next Entries »