The Public Service Commission has approved a $31.3 million rate increase for Madison Gas & Electric over the next two years, $27.5 million less than what the utility had requested, according to preliminary figures the agency shared with WisPolitics.
When fully implemented in 2027, the typical residential customer will pay $5.44 more a month for electricity and $3.43 more for gas compared to current rates.
The foundation of the rate increase was a settlement that groups such as the Citizen Utility Board of Wisconsin Inc. and the International Brotherhood of Electrical Workers reached with MG&E in September.
The overall increase for electricity rates is $28.5 million less than what MG&E originally sought, while the gas increase is $1 million more than it had requested.
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Tom Content, executive director of CUB, said the citizen group was particularly pleased that the reduction in the increase on electric bills, including that it will only be 13 cents a month in 2026 compared to current rates. He also cited programs MG&E offers to help blunt the impact of increases on customers.
“I think Madison Gas & Electric is committed to doing programs that help customers with their bills,” he said.
The commission’s actions complete the rate requests on the five largest utilities in Wisconsin. In early November, commissioners approved a $304.5 million increase in electric and natural gas rates for customers of Alliant Energy and Xcel Energy for 2026 and 2027. That was $86.1 million less than they’d requested.
A year ago, the PSC approved $733 million in rate increases for customers of We Energies and Wisconsin Public Service over 2025 and 2026.
MG&E provides electricity to 167,000 customers in Dane County and distributes natural gas to 178,000 customers in seven south-central and western Wisconsin counties, according to its website.
For the average residential customer, the rate increase will amount to 13 cents a month on their electric bill in 2026 compared to current rates. That will then go up to an increase of another $5.31 a month in 2027.
For natural gas customers, their average monthly bills will go up $1.91 in 2026 and another $1.52 in 2027.
The utility’s original ask was for a 9.42% increase in electric rates in 2027 compared to current costs and 4.52% for natural gas. The revised rates mean that increase will be 3.8% for electricity in 2027 and 4.84% for gas.
