To: Public Service Commissioners Eric Calisto, Ellen Nowak, and Chair of the Commission, Phil Montgomery
We, the members of Union Cab of Madison, would like to express our significant concerns regarding the recent rate proposal put forward by Madison Gas and Electric, and to ask you to reject any such ill-advised increase in the basic connection charge MG&E seeks to inflict on their customers.
If MG&E`s rate proposal were approved, a near doubling of the current $10.40 connection charge for the coming year. Though they have backed off on their request for further sharp increases to almost $70, we have heard nothing that suggests they will not submit this request again next year.This ballooning of the basic connection rate would disproportionately affect low-income and low-usage customers, while providing reckless disincentive for much-needed energy conservation. We are speaking here on behalf of our member-owners, working class members of society who care deeply about our environment. We are also speaking on behalf of our customers and community. This proposal is directly at odds with the Madison Sustainability Plan, to which MG&E is a party.
In addition to the substantial impact on those with a lower income, any incentive for homes and businesses within the state to invest in solar and other energy-generation systems would be sharply curtailed by this plan. Investment returns on solar systems are based on the payback rate per kilowatt hour (KwH). MG&E is proposing to decrease the payback per KwH rate, significantly lowering the rate of return. Any solar system would take longer to pay for, and there would be far less incentive for businesses and homeowners to purchase a new one.
Union Cab recently attempted to significantly increase the size and energy savings associated with our rooftop solar system with a Focus on Energy grant, but our efforts were stymied by the Focus on Energy refusal to allow a financing relationship that involved a consortium of partners from whom we would lease the equipment until paid back. MG&E has influence in this process. Our efforts depend on sound energy policy and oversight at the state level that recognizes the importance of distributed power over centralized "power towers" and remote coal mines, which come with a whole new set of environmental and long-distance energy transmission challenges. Sustainable, common-sense energy practices such as those we practice will be far more difficult to carry out if this MG&E proposal were to go forward.
The Gas and Energy Division of the Wisconsin Public Services Commission is responsible for all major aspects of the PSC`s regulation of electric utilities. Your charter states that this includes oversight of utility costs, environmental impacts, small business impacts, and energy use and conservation. Each one of these areas would be severely and negatively impacted by the rate proposal MG&E has put forward, with negative consequences for our community, our environment, and the future of Wisconsin.
We at Union Cab Cooperative of Madison urge you to carry out your oversight and regulatory duties as outlined above. We look forward to your leadership on this important issue.
Sincerely,
Kate Schachter
Union Cab of Madison
Green Team Member |