Our utility subsidiary, Madison Gas and Electric (MGE), filed with state regulators in early September a settlement agreement for 2022 and 2023 rates. If the agreement with all intervening parties is approved, electric rates will increase 4.85% in 2022. Natural gas rates will increase 2.15% in 2022. The new rates would take effect January 1.
 

The intervening parties who signed on to the agreement include the Citizens Utility Board (CUB), Clean Wisconsin, RENEW Wisconsin, the Board of Regents of the UW System, the Wisconsin Industrial Energy Group and the Sierra Club. State law allows utilities to work with intervening parties to file a settlement agreement to resolve a rate case. 
 

Among other impacts, the proposed agreement includes expanding MGE's smart thermostat pilot, MGE Connect^®, to include low-income customers living in single-family housing. MGE Connect allows MGE to make minor temperature adjustments to participants' smart thermostats during peak demand times. The program helps MGE better understand the potential for using smart technologies to reduce electric system peaks. 
 

The agreement also includes working with interested intervenors to expand the pilot to include additional cost-effective demand response or load-modifying resources, such as water heaters, heat pumps, battery electric storage and potentially other technologies.

 

If the agreement is approved, natural gas rates will increase just under one percent in 2023. The agreement allows MGE to revisit electric rates for 2023. 
 

The Public Service Commission of Wisconsin will review the proposed settlement agreement and issue a decision later this year.