Students from Associated Students of Madison are preparing to go head-to-head with Madison Gas and Electric and the company’s new plan to raise fixed rates on energy bills.
University of Wisconsin’s Sustainability Committee, a student government committee ASM formed to run campaigns pertaining to environmental sustainability, met Wednesday to create a statement to dissuade the Public Service Commission from approving the MGE Plan.
MGE recently created a plan to raise flat rates on electricity bills while lowering the cost of electricity use. This rate used to be calculated by how much electricity was being used, which is more environmentally friendly, Kyla Kaplan, chair of the Sustainability Committee, said.
“Those who keep their electricity usage low are going to be paying just as much as those who aren’t,” Kaplan said. “There is going to be less incentive to be environmentally sustainable.”
However, Steve Kraus, manager of media relations from MGE, said he disagrees.
Kraus said fixed rates are going up, but the energy rate — the actual cost of electricity — is going down. When put together, he said the average customer will pay about $3 extra a month.
“Right now, the way the fixed charge is and the way the energy charge is in our billing, it is not really fair to the average customer. Depending on how much energy you use, you may not be paying your share of the fixed cost,” Kraus said.
MGE is punishing the wrong people in this situation, Kaplan said.
Large businesses whose lights are almost always on are going to benefit from this plan, while residents and students who use low amounts of energy will suffer, she said.
“We shouldn’t be punished for acting responsible,” Kaplan said. “MGE is not getting the business they need and therefore, [they are] raising flat rates.”
Kraus said to make sure the rate increase does not affect low-income customers adversely, MGE will offer a special low-income rate through this proposal.
People that use less energy will still have smaller bills, Kraus said, adding that the benefits of saving energy will stay the same.
He said this rate increase will also help MGE cover the costs of transmission, such as paying for transportation for service vehicles.
Kelly Krein, ASM’s assistant director and campus organizer, said students are limited to using MGE since it is the main energy source in Madison.
“MGE’s supply of gas and electric to Madison is similar to public service being offered,” Krein said. “You can’t change who supplies your gas and electric and most apartments in the Madison area use MGE. This raise of rates will affect everyone.”
The Sustainability Committee crafted a statement to submit to the Public Service Commission, which will be holding a hearing to either approve or deny the MGE Plan. The commission is asking for statements from students and community members to hear their opinions regarding this issue.
Kaplan said this plan works against the goal of the Public Service Commission, which is to support the public good. She added that if the plan passes, the rate will most likely continue to rise.
Correction: A previous version of this story misspelled Sustainability Committee Chair Kyla Kaplan’s last name.
