Electric customers of Madison Gas & Electric will get a credit on their upcoming bills because the utility over-estimated how much it would have to pay for fuel for its power plants in 2016 and therefore, collected rates that were a bit higher than needed to cover the costs.
The total credit, approved by the state Public Service Commission, will be $6 million. For the average electric customer of MGE, that will translate to a bill reduction of about $12, split between October and November bills for most consumers because of the way the utility’s billing cycles are set up, MGE spokesman Steve Schultz said.
The typical residential customer, who uses about 510 kilowatt-hours per month, has a monthly MGE electric bill of about $87.58.
Meanwhile, MGE is projecting fuel costs will rise in 2018 and is asking regulators to approve an overall increase in electric rates of 0.74 percent next year to cover the higher expenses. The typical residential customer would pay an additional 49 cents a month for electricity if the PSC approves the request, Schultz said.