MGE Rate Filing Rewards Fossil Fuel Use, Penalizes Renewable Energy

Friday, September 17, 2010

From a news release issued by RENEW Wisconsin:

MGE Rate Filing Rewards Fossil Fuel Use, Penalizes Renewable Energy

RENEW Wisconsin, a statewide renewable energy advocacy organization, today called on Madison Gas and Electric (MGE) to scrap its pending request to substantially increase the cost of participation in its voluntary renewable energy subscription program.

RENEW contends that MGE does not need a higher renewable rate because the cost of energy supplying its award-winning Green Power Tomorrow program have not changed over the last 18 months and will not for the foreseeable future. The utility is seeking permission from the Public Service Commission (PSC) to increase the renewable energy rate from 1.25 cents to 2 cents per kilowatt-hour (kWh), a 60% increase.

If approved, the voluntary premium that MGE customers will pay for sponsoring more wind and solar electricity production will be significantly higher than what other Wisconsin utilities charge. In contrast, Milwaukee-Based We Energies charges a 1.38 cents/kWh premium to participate in its Energy for Tomorrow program. That rate, which received a slight upward adjustment in 2009, will remain in effect through 2011.

“Nothing about this price hike makes any sense,” said Michael Vickerman, Executive Director of RENEW Wisconsin. “Program costs haven’t changed. Wind and solar energy is no more costly this year than it was in 2009, and next year it will be more of the same. Therefore, Green Power Tomorrow’s premium should remain where it is today.”