News

MG&E customers to receive refund

Electric company will give back an average of $12 after late 2008’s decrease in fuel price

For the first time, customers of Madison Gas and Electric can expect refunds on their electricity bills following last year’s lower-than-expected cost for fuel.

According to Steve Kraus, spokesperson for MGE Energy, the refund amount will depend on customers’ energy usage. A total of $5.6 million will be refunded.

The average residential user will receive a refund of $12.50 — a value approximated by multiplying the reduction factor, which is the same for everyone, by how much energy the average customer uses in a year.

“Refunds range from as low as a dollar-something for certain households to thousands of dollars for some of our business customers,” Kraus said.

According to a statement released by MGE Energy, this refund is a one-time occurrence, and most likely will not be necessary next year.

“It’s hard to tell if the prices will go down again in 2009, but it appears the energy sector is much more stable now than it was in 2008,” Kraus said.

UW students, who may have lived in one house for the first half of 2008 but moved once school started in the fall, can expect a refund as well.

UW senior Doug Abbott said he is glad to be getting some money back.

“I noticed a difference in pricing from my sophomore year to my junior year. Last year we were having trouble paying our electric bill. I’m low on money right now so the refund will be helpful,” Abbott said.

The Public Service will commit an audit to review the numbers before they are finalized.

“[The Public Service Commission] has to take a look at the numbers we are submitting to them and basically review them. They take a look at what parameters we used, what guidelines we used, and they see if the interest rate we put in place is fair to the customers and shareholders. It takes several weeks to do all this,” said Kraus.

Kraus estimated all the refunds would be sent by the third week in April.