WI: MGE pledges not to raise residential, small business fixed charges


MGE’s freshly announced “Energy 2030 Framework” includes a goal of supplying 30% of retail energy sales with renewables by 2030, and a pledge to offer new products and services — including a community solar program — that will allow customers more control over their energy use. MGE also plans to “develop the electric distribution infrastructure, systems and controls to move from a world of one-way power flows to two-way power flows,” including additional solar PV integration and testing a smart-inverter program with customers. In addition, MGE stated that it will not propose higher fixed charges for residential or small business customers as part of its next general rate case. However, MGE indicated that it plans to reduce its electric system peak in part by “exploring” different rates options that include time-varying rates and demand rates (as well as electric vehicles and battery storage).

MGE’s “Energy 2030 Framework” was developed in the wake of intense public and shareholder backlash over MGE’s proposed dramatic increases to its residential fixed charge as part of its 2014 rate case. The Wisconsin Public Service Commission allowed MGE to raise its monthly residential charge from $10.44 to $19.00 in that case. MGE initially proposed a monthly charge of $21.83 in 2015 and a whopping $48.66 in 2016.