Madison Gas & Electric is asking state regulators to approve a rate increase, to take effect Jan. 1, 2012.
MGE wants to hike electric rates 4.9 percent and natural gas rates 1.2 percent. If those increases are approved, the average residential electric customer would pay another $4.04 a month, for a total typical monthly bill of $86.50, and the average residential natural gas customer would pay another $8.95 a year, for a total typical gas bill of $817.57 a year.
Most of the proposed rise in electric rates is due to higher prices MGE is paying to fuel its power plants and to buy power from other utilities, spokesman Steve Kraus said.
Other factors include improvements in the state's electric transmission system and mandated higher payments to the statewide public benefits program. The Legislature's Joint Finance Committee recently reduced the allocation to the public benefits program, though, and if that action stands, MGE would pare its requested rate increase by $4.1 million, Kraus said.
Major electric utility companies in Wisconsin are allowed to file full-blown rate cases every two years, but can seek a rate reopener to take effect after the first year, which is what MGE did in the request filed Wednesday.
The Madison utility company raised electric rates 2.3 percent and natural gas rates 1.0 percent in January of this year as a result of Wisconsin Public Service Commission action on its last rate case.
