Madison, Wis., May 7, 2007—Madison Gas and Electric (MGE) today filed an application with the Public Service Commission of Wisconsin to increase electric rates 5.7% and natural gas rates 3.7%.

The proposed electric rate change covers costs for MGE's new wind energy projects, statewide energy efficiency renewable energy programs, transmission improvements by American Transmission Co. and accelerated costs to discontinue coal use at the Blount Street Generating Station.

In addition to funding the statewide energy programs, the natural gas rate request is also needed for area gas construction projects driven by customer growth.

The average MGE electric customer would see a $4.73 increase in their monthly bill. Natural gas bills would increase $2.93 per month.

The new rates are expected to be effective in January 2008.

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