Understanding Billing Adjustments

In rare cases, Madison Gas and Electric (MGE) may need to adjust a customer's bill when a meter does not accurately record energy usage. When this happens, some of the electricity or natural gas used at a property may not appear on monthly bills.

Once a meter issue is identified, MGE repairs or replaces the meter and reviews the affected billing period to determine how much energy was used but not recorded.

Why am I receiving a billing adjustment?

Utility meters are designed to accurately record the energy used at your home or business. Occasionally, a meter malfunction or equipment issue can prevent all usage from being recorded.

Because customers are responsible for paying for the energy they use, Wisconsin regulations require utilities to bill for energy that was consumed but not accurately recorded due to a meter issue. In most cases, utilities may recover charges for up to two years of previously unbilled usage.

For more information, you can review Wisconsin Statute 196.635 and Wisconsin Administrative Code PSC 134.14(5)(b)(1).

How does MGE determine the adjustment amount?

When a meter has not been accurately recording usage, MGE estimates the amount of energy used during the affected period. The estimate is based on factors such as:

• Historical energy usage at the property before the meter issue occurred.
• Energy usage after the meter was repaired or replaced.
• Other available usage information that helps provide a reasonable estimate.

For natural gas customers, MGE may also consider weather conditions during the affected period. Colder weather typically increases heating usage, while warmer weather may reduce it. To account for these differences, MGE may use heating degree day data, a standard industry measure that reflects how much heating was likely needed based on outdoor temperatures.

What will happen next?

An adjustment for previously unbilled energy usage will appear as a charge on your bill. We will send you detailed information about the adjustment, including the estimated usage and the period affected by the meter issue. 

What if I need help paying the adjustment?

We understand that an unexpected bill adjustment can be difficult to manage. If you need assistance, you may be eligible for payment options. You are encouraged to contact us as soon as possible to discuss available options before the bill due date.