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Press release from Business Wire

MGE Files Rate Changes for 2013

Friday, March 23, 2012

MGE Files Rate Changes for 201317:19 EDT Friday, March 23, 2012 MADISON, Wis. (Business Wire) -- Madison Gas and Electric (MGE) today filed an application with the Public Service Commission of Wisconsin (PSCW) to increase natural gas and electric rates for 2013. The request increases natural gas rates 2.6% and electric rates 5.8%. If approved, the typical gas bill will go up by $1.51 and the average residential electric bill will increase $4.99 a month. The changes are requested effective Jan. 1, 2013. MGE has worked to control costs while still making significant improvements to reduce emissions and improve generation. Since 2006, MGE's average annual increase in natural gas rates has been less than 1%, and the average annual increase in electric rates has been 2.3%. During the same period, the Consumer Price Index has gone up an average of 2.3% per year. The change in gas rates is mostly due to infrastructure improvements to enhance service and reliability throughout Dane County. The primary reasons for the electric rate request are costs for environmental improvements, increased electric reliability and long-term power supply. Items include: - Construction costs of emission reduction equipment at the Columbia Energy Center, near Portage, Wis. - Final construction costs at Elm Road Generating Station near Oak Creek, Wis. - Improvements to the state's electric transmission system and costs of a purchase power agreement. MGE (mge.com) generates and distributes electricity to 139,000 customers in Dane County, Wis., and purchases and distributes natural gas to 144,000 customers in seven south-central and western Wisconsin counties. MGE's parent company is MGE Energy, Inc. (Nasdaq: MGEE). The company's roots in the Madison area date back more than 150 years. MGESteve KrausManager - Media Relations608-252-7907 | skraus@mge.com