Business Electric Rates

MGE takes seriously our responsibility to provide safe, reliable energy at reasonable rates. We work hard to control our costs. In 2023, MGE filed an application with the Public Service Commission of Wisconsin (PSCW) to increase electric rates in 2024. The PSCW approved changes, setting our electric rates. Effective Jan. 1, 2024, overall electric rates increased 1.54%. Impacts for customers vary by rate class.
 
Electric costs for 2024 include investments made in the West Riverside Energy Center, solar investments and continued investments in grid modernization projects. The collection of the escrow accounts for uncollectible costs, including costs related to COVID, also are included in electric costs for 2024.

Fuel surcharge
In 2023, the PSCW approved an $8.7 million fuel surcharge for MGE electric customers. Actual fuel costs used for electric generation in 2022 were higher than the forecasted fuel costs approved by the PSCW in MGE's 2022 fuel cost plan. This surcharge is part of a standard review the PSCW performs and a statutory process that MGE must follow. Fuel costs are a direct pass-through cost to customers, meaning the price that MGE pays for the fuel itself is the same price customers pay for it.
 
The surcharge of $0.00291 per kilowatt-hour (kWh) will be recovered over a 12-month period from October 2023 through September 2024 to help reduce rate volatility for customers.
 
This surcharge applies to electric use for all rate classes excluding Green Power Tomorrow (GPT) and Shared Solar kWh. If customers purchase 100% of their energy through GPT, for example, they do not pay for the fuel for which the surcharge applies.
 
For customers who purchase less than 100% of their electricity through GPT and/or Shared Solar, the surcharge will be applied only to that electricity not covered by GPT and/or Shared Solar. For example, if a customer purchases 60% through GPT and/or Shared Solar, then the surcharge will be applied to 40% of their kWh.


For more rate information

Email Business@mge.com or call us between 7 a.m. and 7 p.m., Monday through Friday, at (608) 252-7222

Long distance, toll free: 1-866-252-7080
TDD (for hearing impaired): 711

Demands 20 kW or less

Small Commercial and Industrial Lighting and Power Service (Cg-5)
Small Commercial and Industrial Optional Time-of-Use Rate (Cg-3) (Closed)
Cg-3 has been closed to new customers since January 1, 2021. Small commercial and industrial customers who prefer to be on time-of-use may request to have service on the Commercial and Industrial Time-of-Use Rate (Cg-4).

Demands greater than 20 kW and less than or equal to 200 kW

Commercial and Industrial Time-of-Use Rate (Cg-4)

Demands over 200 kW

Commercial and Industrial Lighting and Power Time-of-Use Rate (Cg-2)
Commercial and Industrial Large Annual Load Factor Service (Cg-6)

Other tariffs and services
Definitions

Small C&I Lighting & Power Service

(Cg-5)

(Demand 20 kW or Less)  
Grid connection and customer service charge per day $0.78584
Distribution service: All kWh, per kWh $0.03115
Electricity charge: All kWh, per kWh $0.10704

The minimum charge is the grid connection and customer service charge.
*For customers qualifying as new service in 2022 only. The distribution service charge will apply after one year of service.

C&I Time-of-Use Service

(Cg-4)

Learn more about Time-of-Use.
 

Demand Greater Than 20 kW and Up to 200 kW Summer Winter
Grid connection and customer service charge per day $6.50000 $6.50000
Distribution service:
Customer maximum 15-minute demand per kW per day $0.08522 $0.08522
Distribution charge per kWh $0.01608 $0.01608
Electricity service:
Maximum monthly on-peak 15-minute demand per kW per day $0.42930 $0.35160
On-peak period 1 energy adder, per kWh $0.01849 $0.01826
On-peak period 2 energy adder, per kWh $0.02775 $0.01552
On-peak period 3 energy adder, per kWh $0.02259 $0.01966
Base energy all kWh, per kWh $0.07398 $0.07398

The minimum charge is the grid connection and customer service charge per day plus the customer maximum demand charge.

C&I Lighting & Power Time-of-Use Service

(Cg-2)

Demand Greater Than 200 kW and Up to 1,000 kW Summer Winter
Grid connection and customer service charge per day:  $15.00 $15.00
Distribution service:
Customer maximum 15-minute demand per kW per day $0.10717 $0.10717
Distribution charge per kWh $0.01470 $0.01470
Electricity service:
Maximum monthly on-peak 15-minute demand per kW per day $0.48020 $0.39680
On-peak period 1 energy adder, per kWh $0.02177 $0.02154
On-peak period 2 energy adder, per kWh $0.03103 $0.01880
On-peak period 3 energy adder, per kWh $0.02587 $0.02294
Base energy all kWh, per kWh $0.06894 $0.06894

The minimum charge is the grid connection and customer service charge plus the customer maximum demand charge.

C&I Lighting & Power: Large Annual High Load Factor Service

(Cg-6)

Demand Greater Than 1,000 kW Summer Winter
Grid connection and customer service charge per day:  $30.00 $30.00
Distribution service:
Customer maximum 15-minute demand per kW per day $0.10717 $0.10717
Distribution charge per kWh $0.00864 $0.00864
Electricity service:
Maximum monthly on-peak 15-minute demand per kW per day $0.48904 $0.40050
On-peak period 1 energy adder, per kWh $0.02022 $0.01999
On-peak period 2 energy adder, per kWh $0.02948 $0.01725
On-peak period 3 energy adder, per kWh $0.02432 $0.02139
Base energy all kWh, per kWh $0.06838 $0.06838

The minimum charge is the grid connection and customer service charge plus the customer maximum demand charge.

Other tariffs and services

Customer-Owned Generation
Low Load Factor Provision
Pg-1 - Parallel Generation (over 20 kW)
Pg-2 - Parallel Generation: Net Metering (100 kW or less)
Pg-4 - Photovoltaic Parallel Generation (Experimental)
Renewable Energy Rates
Is-3 - Interruptible Service Rider (500 kW and more)
Is-4 - Direct Control Interruptible Service Rider (75 kW and more)
STIR - Short-Term Interruptible Replacement Service
EVF - Electrical Vehicle Fleet Pilot 1
EVF-2 - Fleet Electric Vehicle Charging Experimental Pilot Rider
EV-4 - Multifamily and Workplace Electric Vehicle Managed Charging Experimental Pilot Rider

Definitions

Base energy all kWh charge. Charge applied to all energy (kWh) used by time-of-use customers, no matter when it is used.

Distribution charge, per kWh is not a new cost. It previously was part of the Electricity service charge, which is now lower due to transferring costs to the new Distribution charge. Through the Distribution charge, MGE recoups the costs to build and maintain our electric distribution grid.

Distribution service. The network of wires and equipment that carries electric energy from the transmission system to the customer's premises. The costs to support, operate and maintain this local delivery system are included here in MGE's rates and are usually priced in cents per kilowatt-hour for energy-only customers and in dollars per kilowatt per day for demand-billed customers.

Electricity service. In MGE's rates, this is the network of generating plants, wires and equipment needed to produce or purchase electricity (generation) and to deliver it to the local distribution system (transmission). Priced in cents per kilowatt-hour for energy-only customers and in dollars per kilowatt per day and in cents per kilowatt-hour for demand-billed customers.

Energy, off-peak. Energy supplied during periods of relatively low system demand as specified by the supplier. For MGE, this is from 9 p.m. to 10 a.m., Monday through Friday; all holidays; and all weekends.

Energy, on-peak. Energy supplied during periods of relatively high system demand as specified by the supplier. For MGE, this is from 10 a.m. to 9 p.m., Monday through Friday, excluding holidays.

Energy, on-peak 1. Energy supplied during periods of relatively high system demand as specified by the supplier. For MGE, this is from 10 a.m. to 1 p.m., Monday through Friday, excluding holidays.

Energy, on-peak 2. Energy supplied during periods of relatively high system demand as specified by the supplier. For MGE, this is from 1 p.m. to 6 p.m., Monday through Friday, excluding holidays.

Energy, on-peak 3. Energy supplied during periods of relatively high system demand as specified by the supplier. For MGE, this is from 6 p.m. to 9 p.m., Monday through Friday, excluding holidays.

Demand, customer maximum 15-minute. The greatest rate at which electrical energy has been used during any period of 15 consecutive minutes in the current or preceding 11 billing months.

Demand, maximum monthly 15-minute. The greatest rate at which electrical energy has been used during any period of 15 consecutive minutes in the billing month.

Demand, maximum on-peak 15-minute. The greatest rate at which electrical energy has been used during any on-peak period of 15 consecutive minutes in the billing month.

Grid Connection and Customer Service Charge. Covers the cost of basic customer care services such as billing, record-keeping and information services along with a portion of the costs of being connected to the local electricity grid including meters, poles and wires.

Kilowatt-hour (kWh). This is the basic unit of electric energy equal to one kilowatt of power supplied to or taken from an electric circuit steadily for one hour. One kilowatt-hour equals 1,000 watt-hours.

Rates, seasonal. Rates vary depending on the time of year. Charges are generally higher during the summer months when greater demand levels push up costs for generating electricity. All MGE rate classes are seasonal. MGE has summer and winter seasonal rates. Summer rates are effective from June 1 through September 30. Winter rates apply for all other billing periods.

Rates, time-of-use. Prices for electricity that vary depending upon what time of day or night a customer uses it. Time-of-use rates are designed to reflect the different costs an electric company incurs in providing electricity during peak periods when electricity demand is high and off-peak periods when electricity demand is low. Whether customers benefit from time-of-use rates depends on the percentage of total consumption used during on-peak periods. Generally, customers who use less than 35% of their total consumption during on-peak periods may benefit from these rates.

Single-phase service. Service where the facility (e.g., house, office, warehouse, barn) has two energized wires coming into it. Typically serves smaller needs of 120V/240V. Requires less and simpler equipment and infrastructure to support and tends to be less expensive to install and to maintain.

Three-Phase Service. Service where the facility (e.g., manufacturing plant, office building, warehouse, barn) has three energized wires coming into it. Typically serves larger power needs of greater than 120V/240V. Usually required for motors exceeding 10 horsepower or other inductive loads. Requires more and more sophisticated equipment and infrastructure to support and tends to be more expensive to install and maintain.

For more information