Madison Gas and Electric has reached a settlement agreement with all parties in the rate case that the company filed in April with the Public Service Commission of Wisconsin. The settlement agreement now awaits PSC approval.
In 2026, the settlement agreement supports a 0.04% increase to overall electric rates and a 2.77% increase in overall natural gas rates.
In 2027, the settlement agreement supports a 3.8% increase to overall electric rates and an increase of about 2% in overall natural gas rates from 2026 rates.
Under the agreement:
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The average annual impact on MGE’s electric rates from 2018-27 will be about a 1.9% increase; and
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The average annual impact on the company’s natural gas rates for the same period will be about a 1.7% increase.
If approved, a typical residential customer using 500 kilowatt-hours per month would see a monthly bill increase of about $0.07 in 2026 and $5.41 in 2027.
Meanwhile, the typical residential natural gas bill, reflecting 720 therms used annually, would see a monthly increase of about $1.91 in 2026 and $1.52 in 2027.
According to MGE, drivers for the increase in electric rates include investments made in solar and battery storage, the West Riverside Energy Center and grid modernization projects, while increases in natural gas rates are driven by continued investments in system modernization projects.
A PSC decision on the settlement agreement is expected by the end of the year.
