Rising fuel prices impact electric bills
Energy prices have increased significantly in the past year affecting the price of electricity.Higher prices for coal and natural gas increased the cost to generate electricity and to purchase power on the regional energy market. Gas is used increasingly to generate electricity because it burns cleanly and produces fewer emissions than other fuels.
In May, the Public Service Commission of Wisconsin (PSCW) approved an interim electric fuel surcharge of $0.00239 per kilowatt-hour for all MGE customers. This surcharge helps to recover the average annual increase in fuel costs that were incurred since the beginning of 2008. The amount is subject to review and further adjustments if actual fuel costs change substantially.
Looking ahead, MGE has filed a request to increase overall electric rates by 3.37% in early 2009. Most of the increase is due to rising fuel costs. The rate increase will affect all retail electric customers.
MGE bases its rate request on both known costs and the projected future costs of fuel and purchased power. Fuel futures are a big variable that can increase or decrease your rates. Fuel costs are reviewed by the PSCW and may be adjusted—either up or down—because utilities are required to keep fuel budgets in balance during the year.
Market volatility is a variable that utilities cannot control. Higher fuel costs are raising electricity prices across the country. In Wisconsin, all investor-owned electric utilities have filed for rate adjustments since the first of the year.
Helping businesses manage costs
MGE cannot control the commodity price of natural gas and other fuels, but we can help you manage your energy bills.
• Visit mge.com/bizenergy for energy-saving tips.
• Call the Business Help Line at 252-7007 to get answers to energy questions.
• If you get behind on your energy bills, contact MGE at 252-7007 as soon as possible to set up a payment plan.
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