Approved the Application of Madison Gas and Electric Company for Authority to Change Electric and Natural Gas Rates

by preferred on December 3, 2009

Madison Gas and Electric Company (MGE or the Company) filed on April 29, 2009, for authority to increase its electric and natural gas rates on January 1, 2010. MGE requested a $15,971,000 (4.53 percent) increase for electric operations and a $4,351,000 (2.26 percent) increase for natural gas operations. On July 7, 2009, a prehearing conference was held.
In supplemental direct testimony submitted on August 10, 2009, MGE updated its electric request to $16,871,000 (4.78 percent) and updated its natural gas request to $3,487,000 (1.81 percent) to reflect a number of changes. These changes consist of an additional $704,000 for American Transmission Company (ATC)/Midwest Independent Transmission System Operation (MISO) budgeted Schedule 26 costs not included in MGE’s original filing, estimated electric decrease of $163,000 for updated 2009 deferred pension expense amortized over four years, estimated natural gas decrease of $163,000 for updated 2009 deferred pension expense amortized over two years, estimated electric and natural gas decreases of $1,211,000 and $681,000, respectively, for updated 2010 pension and benefits expenses, estimated increased electric fuel costs of $974,000 due to buyout provisions of not meeting its minimum coal commitments and rail service in 2010, and the electric revenue requirement impacts of MGE’s application for U.S. Department of Energy (DOE) grant money from the economic stimulus package earmarked for clean energy projects estimated at $596,000 for 2010.
On October 22, 2009, technical and public hearings were held in Madison. Simultaneous briefs and reply briefs were filed with the Commission on November 11 and November 17, 2009, respectively.

Consistent with their other rate case decisions, the Commissioners trimmed the request before they approved it.

Docket 3270-UR-116

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