Company to Triple Green Pricing Program with Wind and Solar

Madison, Wis., March 6, 2007—Madison Gas and Electric (MGE) today announced plans to more than triple the green pricing program it currently offers to customers. Responding to growing concerns about global climate change, the company will offer more renewable energy options for customers who want to take action through their energy use.

The expanded green pricing program will allow customers who want even more renewables in their mix to pay a premium to go above and beyond the state standards with new, additional wind resources. With this program, a typical household (600 kilowatt-hours/month) will be able to offset the CO2 emissions from their home electricity use for less than $10.00/month. The new Wisconsin- and Iowa-based wind resources will come online beginning in 2008.

With its 30-megawatt purchase of Iowa wind announced late last year, all MGE customers will have 3.5% of renewable energy in their electricity mix by the end of January 2008. This will meet the statewide renewable portfolio standard for 2010 that is required by law.

The company's expanded program will also introduce a new rate specifically designed to support the local development of solar photovoltaic systems on customer homes and businesses.

Program details will be filed with the Public Service Commission of Wisconsin later this spring, and the new wind energy will be available for customers to begin purchasing by the beginning of 2008.

MGE's current program provides about 15,000 megawatt-hours (MWh) per year of Wisconsin-based wind energy to about 4,300 customers. With its new plans, MGE will grow the program to at least 45,000 MWh per year, depending on customer interest.

The aggressive growth in the green pricing program adds to other MGE activities to address global climate change. Last year, the company rolled out its Power Tomorrow initiative. This initiative gives customers simple, specific energy conservation and efficiency steps they can take to reduce the greenhouse gas emissions associated with their home energy use.

As part of its Energy 2015 Plan, the company will also be ending coal burning at its Blount Generating Station by the end of 2011, which will bring significant emission reductions. In addition, MGE has more than doubled its capture of methane at local landfills and uses it to produce electricity. Methane is a greenhouse gas that is 20 times more harmful than CO2. The company also reduces its greenhouse gas emissions from transportation by using biodiesel and compressed natural gas to help fuel its fleet vehicles.

MGE generates and distributes electricity to nearly 135,000 customers in Dane County and purchases and distributes natural gas to more than 138,000 customers in seven south-central and western Wisconsin counties. MGE has served the Madison area for more than 150 years.

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