Sierra Club Statement on MGE Rates Settlement

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Renner Barsella, renner.barsella@sierraclub.org, 217-390-9394

MADISON, WI -- On Tuesday, July 17, Madison Gas and Electric filed an application at the Wisconsin Public Service Commission to finalize the electric and natural gas rates Madison customers would pay for service years 2019 and 2020. This proposal was filed as a “settlement” pursuant to a new Wisconsin statute, section 196.026, that allows utilities to seek consensus in advance of their rate proposals in order to get expedited approval for their new rates.

Sierra Club was the only intervening party that did not join in MGE’s proposed settlement. The settlement moves to reduce MGE’s reliance on coal by proposing to move up the cost recovery timeline for its share of one of the two coal boilers it co-owns at the Columbia Energy Center, to 2029.

In response, Sierra Club’s Campaign Representative Elizabeth Katt Reinders issued the following statement:

“We're very encouraged to see MGE taking meaningful steps in the right direction. MGE made a good decision, and we have asked the utility to consider retiring its ownership fully at that coal plant. We hope they will be open to this option in the near future. Sierra Club does not oppose the settlement. We are committed to continued advocacy, and will continue to call on MGE to make an actionable plan to truly become a coal-free utility.

“This proposal will help customers’ rates to decrease, which we’re glad to see given that Wisconsin has high per-unit electricity costs compared to other Midwestern states. However, we are disappointed that MGE did not take this opportunity to update its rate structure, under which the company charges high fixed fees that residential customers have no ability to avoid, even if they decrease their energy use. MGE's fixed fee, at $19 per month, remains one of the highest fixed charges in the Midwest. High fixed charges create barriers for rooftop solar and energy efficiency, and they disproportionately impact low-income people. We would have preferred to see the company use its savings to reduce the fixed charges instead of the variable charges.

“MGE is a co-owner of two coal units at Columbia Energy Center in Portage, and 2 units at Elm Road Generating Station in Oak Creek, where local residents have been dealing for months with toxic coal dust pollution.”

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3 million members and supporters. In addition to helping people from all backgrounds explore nature and our outdoor heritage, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.