PSC approves Madison Gas & Electric 2025 fuel reconciliation and directs $7.41 million refund in October 2026
July 10, 2026 | Public Service Commission, State Agencies, Executive, Wisconsin
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The Public Service Commission on July 9 accepted Madison Gas & Electric Co.'s 2025 fuel reconciliation and authorized a customer refund of about $7,405,885, to be applied to October 2026 bills using a class-level allocation method.
Commissioner Patricia Nieto, who led the discussion, told colleagues the proceeding was uncontested and that forecast fuel costs exceeded actual costs. Citing Wisconsin Admin. Code PSC 116.07 and related provisions, Nieto said the commission must use the current fuel cost plan and forecast sales to calculate credits and surcharges and apply the 2% band and interest rules when determining deferred balances. "I would not approve" MG&E's proposed methodology based on historical actual sales, she said, arguing the code requires a forecast basis tied to the current fuel cost plan.
Chair Strand and Commissioner Hawkins agreed. Strand said he supported directing the refund in October 2026 because of billing-system timing and seasonal sales fluctuations in September. Hawkins said he found Nieto's explanation persuasive and was comfortable joining her recommendation.
The commission's calculation, as explained in the record, applies the 2% band, retained amounts, and a short-term debt interest rate to reach the refundable total. The commission moved to accept the reconciliation and authorize a refund consistent with that discussion; the motion was seconded and approved unanimously.
The decision instructs the utility to apply the refund using the commission's prescribed forecast-sales method (the 2026 fuel cost plan for October 2026) and to use class-level allocation for the credit. The commission declined the applicant's request to apply offsets against 2027 fuels because those fuel plans are not yet approved.
Next steps: the utility will implement the refund in October 2026 per the commission's direction. The order and final decision will provide the formal mechanics for how the per-kilowatt-hour credit will be calculated and applied.
Commissioner Patricia Nieto, who led the discussion, told colleagues the proceeding was uncontested and that forecast fuel costs exceeded actual costs. Citing Wisconsin Admin. Code PSC 116.07 and related provisions, Nieto said the commission must use the current fuel cost plan and forecast sales to calculate credits and surcharges and apply the 2% band and interest rules when determining deferred balances. "I would not approve" MG&E's proposed methodology based on historical actual sales, she said, arguing the code requires a forecast basis tied to the current fuel cost plan.
Chair Strand and Commissioner Hawkins agreed. Strand said he supported directing the refund in October 2026 because of billing-system timing and seasonal sales fluctuations in September. Hawkins said he found Nieto's explanation persuasive and was comfortable joining her recommendation.
The commission's calculation, as explained in the record, applies the 2% band, retained amounts, and a short-term debt interest rate to reach the refundable total. The commission moved to accept the reconciliation and authorize a refund consistent with that discussion; the motion was seconded and approved unanimously.
The decision instructs the utility to apply the refund using the commission's prescribed forecast-sales method (the 2026 fuel cost plan for October 2026) and to use class-level allocation for the credit. The commission declined the applicant's request to apply offsets against 2027 fuels because those fuel plans are not yet approved.
Next steps: the utility will implement the refund in October 2026 per the commission's direction. The order and final decision will provide the formal mechanics for how the per-kilowatt-hour credit will be calculated and applied.
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