MGE: Requests Change in Electric Rates

Madison, Wis., June 30, 2006–Madison Gas and Electric (MGE) today filed an
application with the Public Service Commission of Wisconsin to increase
electric rates 1.3%. The average MGE residential customer would see a $1.40
increase in their monthly electric bill.

The rate change covers costs related to constructing MGE’s portion of the
Elm Road Generating Station. The Oak Creek facility will provide MGE
customers with 100 megawatts of power in 2010.

The $4.3 million request also includes a half-million dollar reduction in
fuel costs due to lower prices for natural gas used to generate

The new rates are expected to go into effect in January 2007.

MGE generates and distributes electricity to nearly 136,000 customers in
Dane County and purchases and distributes natural gas to more than 137,000
customers in seven south-central and western Wisconsin counties. MGE has
served the Madison area since 1896.