Madison Gas and Electric Company Seeks Rate Increase for Electric and Natural Gas Services

Strategic Insights -

The Public Service Commission of Wisconsin is considering a rate increase proposal from Madison Gas and Electric Company (MGE) to boost its electric and natural gas rates. The company, which serves over 150,000 electricity customers and 170,000 gas customers in the Madison area, claims that its current rates are insufficient to cover operating expenses and provide a reasonable return on equity. MGE is seeking to raise electric rates by an average of 4.89% and 4.33% in 2026 and 2027, respectively, and natural gas rates by 2.33% and 2.16% in 2026 and 2027, respectively.

Key Takeaways:

  • MGE, a Wisconsin-based public utility, serves over 150,000 electricity customers and 170,000 gas customers in the Madison area.
  • The company is seeking to raise its electric rates by an average of 4.89% and 4.33% in 2026 and 2027, respectively, to cover operating expenses and provide a reasonable return on equity.
  • MGE is also proposing to increase natural gas rates by 2.33% and 2.16% in 2026 and 2027, respectively.
  • The company claims that its current rates are insufficient to meet operating expenses and provide a reasonable return on equity.
  • The proposed rate increases are intended to ensure that MGE can maintain a just and reasonable return on common stock equity.
  • The Public Service Commission of Wisconsin will hold an in-person hearing on the proposed rate increase.

Statistics:

  • MGE seeks to raise electric rates by an average of 4.89% in 2026 and 4.33% in 2027.
  • MGE proposes to increase natural gas rates by 2.33% in 2026 and 2.16% in 2027.
  • MGE has over 150,000 electricity customers and 170,000 gas customers in the Madison area.

Sources:

  • Application of Madison Gas and Electric Company for Authority to Adjust Docket No. 3270-UR-126 Electric and Natural Gas Rates To the Public Service Commission of Wisconsin, dated April 1, 2025, Stafford Rosenbaum LLP, Bryan Kleinmaier, Attorneys for Applicant, Madison Gas and Electric Company