MGE requests rate increase

A portion of the proposed rate increase includes costs to commission the new Elm Road Generating Station in Oak Creek. MGE is co-owner of this facility. It dramatically reduces air emissions compared to standard coal-fired plants.

 

MGE is seeking an increase in gas and electric rates to take effect in January.

The company has filed an application with the Public Service Commission of Wisconsin (PSCW). The request would increase overall electric rates 9.4% and natural gas distribution rates 2.0%. Actual rate change percentages will vary by customer class.

Most of the electric rate request will pay for environmental improvements and controls at power plants, including:

• Costs to commission the new, state-of-the-art Elm Road Generating Station in Oak Creek. This new facility dramatically reduces air emissions compared to a standard coal-fired plant. MGE is co-owner of this facility.

• Beginning to pay for the installation of significant new environmental controls at Columbia Energy Center, which MGE co-owns.

• The early conversion of Blount Generating Station from coal to natural gas. Natural gas is now the primary fuel at our downtown Madison plant. The Blount plant is on schedule to eliminate all coal burning by the end of 2011.

The increase in natural gas rates would cover general infrastructure improvements to our distribution system to meet customer demand.

MGE has worked hard to control costs. Significant cuts were made including imposing strict limits on all operations and maintenance budgets and phasing out 50 company positions. The job reduction represents a 6% cut in the company's overall workforce.

Before setting new rates, the PSCW gives a thorough review of the rate request. We expect the PSCW to set final rates in late 2010, with rates taking effect in early 2011.

Helping businesses manage costs

We can help you manage your energy bills by becoming more energy efficient.

• Visit mge.com/bizenergy for tips.
• Use mge.com to access your energy-use data and get energy-saving ideas.
• Call the Business Help Line at 252-7007 to get answers to energy questions.

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