Madison Residents At Hearing Mostly Critical Of Utility’s Rate Change Plan

Residents Say Increase In Fixed Rates Will Disincentivize Solar Panel Installation, Energy Efficiency

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Citizens rallied outside the Public Service Commission while the regulatory body held a public hearing on a Madison Gas & Electric rate proposal. Photo: Shamane Mills/WPR News.

State regulators got an earful from Madison Gas & Electric customers upset over a proposed change in rates at a public hearing on Thursday.

Most of the people who testified about a planned MG&E rate hike before the Wisconsin Public Service Commission— much like those who testified about a similar rate increase in Milwaukee on Wednesday — were critical. Jesse Pycha-Holst, however, tempered his criticism with praise. The east-side Madison ratepayer said MG&E had done well with past efforts to help customers reduce energy use.

He also said that the company’s image will suffer if it is allowed to charge a higher fixed, monthly fee while lowering costs for the amount of power used.

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“The goodwill you have earned will go completely out the window and it will never come back,” said Pycha-Holst. “It will be like crossing the Rubicon.”

Around the country, utilities say they’re feeling squeezed as they try to maintain infrastructure at a time when solar customers are using less electricity.

“Things are changing in the electric industry, and with renewable energy coming onto the system we want to make sure the (power) grid stays healthy,” said Steve Kraus, a spokesman for MG&E.

Kraus said the average MG&E customer will only pay $1.60 more per month under the proposed plan.

Tyler Huebner from RENEW Wisconsin, however, said that low-energy users — like apartment-dwellers and those without air conditioning — will be hurt if they have to pay a fixed fee that would nearly double to $19 a month.

“Percentage-wise your bills are going to go up a lot more, and if you’re in a big house using a lot of energy your bill is actually going to go down,” said Huebner.

He said that’s because the per-kilowatt charge would be a penny less than it is now. Under the proposal, it would take longer to pay off the up-front costs of those using solar panels.

A decision on the rate proposal is not expected until later this year.

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