As the State Representative for the 76th Assembly District, every one of my constituents receives their electricity from Madison Gas and Electric (MG&E). Over the past several months, many constituents have expressed concerns over MG&E`s rate case that seeks to increase the fixed charge customers are billed to be connected to the grid and lower their kWh energy charge. People have strongly voiced their concern that these policies will have a negative impact on energy efficiency and renewable energy efforts and disproportionately impact low-income consumers. I share these concerns.
First, I would like to thank MG&E for withdrawing their original filing which proposed a $49 fixed charge in 2016 and a nearly $70 charge in 2017 for residential and small commercial customers. Such an astronomical increase would have a devastating impact on low income families and wipe out any incentive for people to look to clean energy generation to reduce the harmful impact, on our bodies and our planet, of coal pollution.
MG&E`s current proposal seeks to charge a set fee of $15 per month plus a grid connection charge of $4 per month in 2015 and represents an 85% increase from the current rate of $10.29. This is still a shockingly large increase and will have the most impact on those most unable to absorb such a large monthly increase.
MG&E`s proposal to increase the fixed rate while reducing their kWh energy charge is indeed regressive, and contrary to the public`s desire to generate their own renewable energy and for alternative energy distribution. Such a proposal encourages greater energy consumption while simultaneously discouraging customers to conserve energy and invest in renewable energy. This is the exact opposite way we need to go to protect people`s health and our planet.
For decades, manufactures of water heaters, furnaces and other household appliance have been required to increase the energy efficiency of their products. At the federal and, until recently, state level, policies have been implemented that incentivize consumers to purchase these products by offering tax credits to people who invest in energy efficient products. Reducing energy consumption lessens the pressure to build power plants and transmission lines. Both of those options are costly solutions to meet increased energy demand. MG&E`s proposal moves us in the wrong direction and encourages consumers to keep their old and inefficient devices that consume large amounts of electricity.
In addition, their proposal would put Wisconsin further behind the rest of the nation in renewable energy production, especially solar energy. Reducing the kWh charge would increase the time it takes to pay for a solar system, creating less of an incentive to purchase one. Wisconsin`s inability to foster a robust renewable energy programs means we are spending billions of dollars on out-of-state coal energy--money that could be spent in Wisconsin producing clean energy and providing jobs for people living in Wisconsin.
I urge the Commission to consider the impacts this pricing model will have on renewable energy projects, energy conservation efforts and the utilities residential customers when deciding on MG&E`s request. Though I want businesses to flourish and thrive in my community and throughout my district, MG&E`s position on escalating consumers` monthly fixed costs is wrong headed. It is time for MG&E and other utilities to see the writing on the wall--the public wants us to shift from coal energy production which drains $12 billion from our economy each year, to renewable energy production. Consumer generation is here to stay. In this changing energy environment, MG & E needs to embrace a sustainable business model that provides for customer generation and a larger emphasis on renewable energy, rather than its apparent attempt to cut off the increase demand for renewable energy by significantly raising consumers` fixed monthly costs. To continue along the coal dominated energy path, which is what this proposed increase would do, is irresponsible, out of step with the public`s position, and threatens public health and the health of our planet.
For all of these reasons, I urge you to reject MG&E`s proposed fixed fee increase.
Sincerely,
Rep. Chris Taylor
76th Assembly District
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