Madison, Wis., April 22, 2010—Madison Gas and Electric (MGE) today filed an application with the Public Service Commission of Wisconsin (PSCW) to increase electric and natural gas rates for 2011.
The request increases electric rates 9.4% and natural gas rates 2.0%. If approved, the average residential electric bill will increase $7.51 a month and the typical gas bill will go up by $1.94. The changes are requested effective Jan. 1, 2011.
Last May MGE reduced electric rates by a total of $4.4 million or 1.3% for the remainder of 2009 due to lower-than-expected natural gas costs for generating electricity. Customers are also currently receiving a one-time credit on their electric bills as a result of additional gas generation savings.
“This request will pay for environmental improvements and controls that reduce emissions while still generating the electricity our customers need,” said Gary J. Wolter, MGE chairman, president and CEO. Specifically, the request includes costs to commission the new, state-of-the-art Elm Road Generating Station in Oak Creek. The increase also will begin to pay for installation of significant new environmental controls at Columbia Energy Center and the early conversion of Blount Generation Station to natural gas. The Blount plant is on schedule to eliminate all coal burning by the end of next year. All of these investments improve the environmental profile of MGE’s generating fleet.
MGE recently released its five-year progress report on the company’s Energy 2015 plan. The energy supply plan outlines increasing renewable energy sources and conservation, eliminating coal in Madison and securing cleaner coal generation. “We are exceeding goals in all areas. Our wind power capacity increased 12 times and cleaner coal is now online. These commitments to a better environment and new technologies are long-term investments that require higher costs,” Wolter added.
The company has worked hard to reduce costs in the request. Significant cuts were made including phasing out 50 positions and imposing strict limitations on all operations and maintenance budgets. The reduction in positions represents a 6% cut in the company’s overall workforce.
MGE generates and distributes electricity to 138,000 customers in Dane County, Wis., and purchases and distributes natural gas to 142,000 customers in seven south-central and western Wisconsin counties. MGE’s parent company is MGE Energy (Nasdaq: MGEE). The company’s roots in the Madison area date back more than 150 years.
CONTACT
Stephen R. Kraus
Manager – Media Relations
Madison Gas and Electric Co.
608-252-7907
E-mail address: skraus@mge.com
