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Wind Costs


Wind is the least expensive renewable technology we can develop on a large scale in Wisconsin.

Customers who sign up to purchase MGE wind power pay an added 2.68 cents per kilowatt-hour. Residential customers can buy wind power in $4 blocks of 150 kilowatt-hours per month. By buying one $4 block, an average residential customer increases their electric bill about 6%. This much electricity meets about 25% of their electricity needs.

Why does wind power cost more?
Wind power plants do not generate as much electricity per dollar as conventional plants. So the price of electricity must be higher to recover the investment. The extra money participants pay every month covers the extra cost of wind power equipment.

If it costs more, why do it?

  • No destruction of resources.
  • No air or water pollution.
  • Clean, renewable energy.
  • Shared use of wind farm land for agriculture.
  • A local, in-state energy source.

Why did the wind price go down Jan. 1, 2006?
The cost to produce wind power didn't change. MGE lowered the price we charge wind customers because that price is based on the difference between wind costs and the cost to generate electricity with fossil fuels. Since the cost of natural gas has dramatically increased, the difference between natural gas and wind is less. Therefore we can charge our customers less.

How do I know I am getting wind power?
MGE converts energy from many fuels to make electricity (coal, gas, biomass, wind). Those who choose to purchase wind power are responsible for our using this "fuel" rather than another to generate the kilowatt-hours they require.

Why can't the cost be spread over all customers instead of just those who request wind power?
As a regulated utility, we must provide electricity at the lowest cost possible. Renewables are not the lowest-cost option. However, customers may choose to pay the higher cost to generate electricity using wind power.

The fair way is to offer renewable energy to people who voluntarily choose to support it. Those who value low cost above all else can choose not to participate.

The Public Service Commission of Wisconsin requires all utilities to use some renewable energy. The costs for mandated renewable energy are spread across all customers. A small part of MGE's commitment to renewables is dedicated to this mandate.

Wind power costs


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