"Any time we can hold the line on electric rates is good news for ratepayers, and being able to reduce rates during these challenging economic times is ideal," said PSC Chairperson Eric Callisto. "Lower than projected fuel costs are the main driver behind the reduction, and are a small silver lining to the country's current economic problems."
The original application from MG&E requested a $25.4 million increase (a nearly 7 percent increase) in its retail electric rates.
MG&E subsequently lowered its request as fuel price forecasts lowered.
The new rates will take effect January 1, 2009.
"It's important that the PSC continue to work diligently to make sure that when fuel costs dip, the ratepayers can see the benefit as quickly as possible," said Commissioner Mark Meyer. "This decision today will hopefully offer some needed relief to the ratepayer."
"The timing for the reduction in MG&E rates couldn't be better for the customer," said Commissioner Lauren Azar. "Being able to reduce electric rates in the midst of the winter heating season when utility bills can be steep is something we are delighted about."