Madison Gas and Electric Company

Madison Gas and Electric Company is a regulated public utility providing electricity and natural gas services to customers in south-central Wisconsin. Headquartered in Madison, Wisconsin, the company is a subsidiary of the publicly traded holding company MGE Energy, Inc. It operates under the oversight of the Public Service Commission of Wisconsin and serves a diverse customer base across Dane County, Wisconsin and surrounding areas, including residential, commercial, and industrial clients.

History

The utility traces its origins to the founding of the Madison Gas Light and Coke Company in 1855, which initially provided coal gas for street lighting in the growing city. The electric side of the business began with the establishment of the Madison Electric Light and Power Company in 1882, shortly after Thomas Edison pioneered incandescent light bulb technology. These two entities merged in 1896 to form the modern integrated utility. Throughout the 20th century, the company expanded its infrastructure, including the construction of major power plants like the Blount Generating Station and participating in regional power projects such as the Columbia Energy Center. In 1981, it became a subsidiary of the newly formed MGE Energy, Inc., which is listed on the NASDAQ stock exchange under the ticker symbol MGEE.

Operations and service area

The company's service territory encompasses approximately 2,300 square miles in south-central Wisconsin, primarily within Dane County, Wisconsin. Key communities served include the city of Madison, Wisconsin, as well as Middleton, Wisconsin, Sun Prairie, Wisconsin, Stoughton, Wisconsin, and portions of Iowa County, Wisconsin and Columbia County, Wisconsin. Its operations involve maintaining extensive distribution networks, including over 3,000 miles of electric distribution lines and 2,000 miles of natural gas mains. The utility collaborates with regional transmission organizations like the Midcontinent Independent System Operator (MISO) to ensure grid reliability and participates in mutual assistance programs with other utilities through organizations such as the Midwest Mutual Assistance Group.

Power generation and energy mix

The company owns and operates a diverse portfolio of generation assets. Its owned generation includes natural gas-fired units like the Blount Generating Station in Madison, Wisconsin and the West Campus Cogeneration Facility at the University of Wisconsin–Madison. It also holds ownership shares in several large baseload and renewable facilities, including the Columbia Energy Center (coal), the Elm Road Generating Station (coal), and the Two Creeks Solar Park. A significant portion of its power supply comes from purchased power agreements, notably with the Kewaunee Nuclear Power Plant and various wind farm projects across the Midwestern United States. As of recent reporting, the utility has set a goal to achieve net-zero carbon dioxide emissions from its electricity generation by 2050, accelerating investments in solar power, wind power, and battery storage.

Rates and regulation

As a regulated monopoly, its retail electric and natural gas rates are set through formal proceedings before the Public Service Commission of Wisconsin (PSCW). Rate cases involve testimony from company officials, interventions by groups like the Citizens Utility Board of Wisconsin, and reviews by the PSCW staff to determine just and reasonable rates for customers. The company's revenue requirements and capital investments, such as grid modernization projects under the Advance Energy Grid program, are central to these proceedings. Rates are structured into various customer classes, including residential, commercial, and industrial, and are influenced by fuel costs, which are passed through to customers via periodic fuel adjustment clause mechanisms approved by the commission.

Environmental initiatives and sustainability

The company has implemented numerous programs aimed at reducing its environmental footprint and promoting energy efficiency. Key initiatives include the shared solar program MGE Solar Garden, which allows customers to subscribe to solar energy, and the Green Power Tomorrow program, one of the nation's longest-running renewable energy subscription programs. It actively promotes electric vehicle adoption through charging infrastructure incentives and special rate tariffs. The utility is a partner in the City of Madison's commitment to 100% renewable energy and works with organizations like the Electric Power Research Institute on technology innovation. Its sustainability goals are formally reported in annual Corporate Social Responsibility documents and align with broader state goals under Wisconsin's Clean Energy Plan.

Category:Energy companies established in 1855 Category:Companies based in Madison, Wisconsin Category:Electric power companies of the United States