Article: MGE SEEKS RATE HIKES.(BUSINESS)(MARKET MEMO)(Column)

MADISON GAS & ELECTRIC CO. IS ASKING THE STATE PUBLIC SERVICE COMMISSION FOR APPROVAL TO INCREASE ITS ELECTRICITY RATES BY 5.1 PERCENT AND ITS NATURAL GAS RATES BY 1.4 PERCENT, EFFECTIVE IN 2006.

If the request is granted, MGE said the average residential electric customer would see a $3.72 increase on a monthly electric bill and $1.37 on a monthly natural gas bill.

MGE said the increases are needed to cover the cost of its new natural gas-fired power plant on the UW-Madison campus that will begin operating this summer, as well as upgrades to electric transmission and distribution networks.

The request comes less than two weeks after a state PSC ...

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