Madison Gas and Electric (MGE) filed a request with the Public Service Commission of Wisconsin (PSCW) to freeze both natural gas and electric base rates for all customers through at least December 31, 2014.
Last month MGE announced it achieved a $6.2 million savings in fuel-related expenses in 2012 and that customers would benefit from these savings. Coupled with an aggressive cost-containment program, the lower fuel expenses allow the company to maintain the same electric rates for another year. Natural gas rates also will remain unchanged for next year.
Assuming the same annual energy usage, a combined gas and electric residential customer is paying about 10 percent less in energy costs today than they were four years ago.
Since 2009, the consumer price index has risen an average of 2.2 percent per year. Since 2009 and extending through the rate freeze, MGE electric rates will have risen an average of 1.9 percent per year.
Despite the fact that gas and electric rates will not increase, the company will continue making investments that improve reliability and significantly reduce emissions.
MGE generates and distributes electricity to 140,000 customers in Dane County, Wis., and purchases and distributes natural gas to 145,000 customers in seven south-central and western Wisconsin counties. MGE's parent company is MGE Energy Inc.