Dive Brief:
- Wisconsin regulators have authorized Madison Gas & Electric to raise fixed monthly customer fees to $19 for electric customers and $22/month for natural gas customers, the Milwaukee-Wisconsin Journal Sentinel reports.
- Critics say the fees will hurt low-income customers and those using less energy, though ratepayers with distributed generation facilities will be grandfathered under the current rates for 12 years.
- The city of Madison was disappointed in the decision, which it believes will undermine energy conservation efforts, energy efficiency investments, and renewable energy investments.
Dive Insight:
Wisconsin regulators have now authorized three utilities to increase fixed monthly fees, including Wisconsin Public Service Corp. and We Energies in previous decisions. Critics say the fixed charges gut customers' incentive to install distributed generation, while the utilities say they are simply better-allocating the costs of grid usage.
According to RENEW Wisconsin, the decision means overall residential customers for electricity will see on average an increase of about 3.5%. Small commercial customers will have an increase of about 1%, while larger business and industry customers will see a higher increase of around 4%.
Madison Mayor Paul Soglin issued a statement finding the rate design is "contrary to the city’s interests and will undermine energy conservation efforts."
"I hope that MGE is truly committed to meaningfully engaging with the community as it says it is, and that it will actually consider the interests of the community and its rate payers before going back to the PSC and proceeding down this dangerous path," Soglin said.
The increase to fixed charges has become a recent controversy in Wisconsin. Critics of We Energies' plan to increase flat fees say a state regulator should have recused herself after appearing on a panel along with the head of Wisconsin Energy Corp., where they say she gave advice on rate structures.
