Madison Gas and Electric
| Company type | Subsidiary |
|---|---|
| Industry | Electric utility, Natural gas utility |
| Predecessor | Madison Gas Light and Coke Co., Madison Electric Light and Power Co., Four Lakes Light and Power Co. |
| Founded | 1855 |
| Headquarters | Madison , United States |
Area served | Madison metropolitan area, Dane County, Wisconsin, and six additional counties in Wisconsin |
| Products | Electricity, natural gas, renewable energy alternatives |
| Parent | MGE Energy, Inc. |
| Website | www |
Madison Gas and Electric Company (MGE) operates as the chief subsidiary of MGE Energy, Inc. (Nasdaq: MGEE). Functioning as a regulated utility, it provides electricity, natural gas, and renewable energy alternatives to the metropolitan area of Madison, Wisconsin.
History
MGE’s roots date back more than 150 years to the establishment of the Madison Gas Light and Coke Co. in 1855. Electric service commenced in Madison in 1888 through Madison Electric Light and Power Co., at a time when the city’s population was approximately 13,000.
In 1892, Madison Electric Light and Power Co. was acquired by Four Lakes Light and Power Co., which supplied electricity to Madison for the next four years.
A merger occurred in 1896 between Four Lakes Light and Power and Madison City Gas Light and Coke Co., resulting in the formation of Madison Gas and Electric Co.
Constructed in 1902 and renovated in 1915, the Madison Gas and Electric Company Powerhouse was later recognized as a historic landmark by the Madison Landmarks Commission in 2002. MGE’s headquarters are situated near the former Chicago and North Western Railway station in Madison.
The holding company MGE Energy, Inc. was established in 2001, with Madison Gas and Electric as its principal subsidiary.
In 2021, Morgan Stanley identified MGE among four U.S. electric utilities best positioned for growth in renewable energy and transmission infrastructure, capitalizing on Department of Energy incentives for transmission development.
That year, MGE proposed reducing the minimum monthly residential charge from $19 to $15 while increasing rates to balance this adjustment, encouraging lower electricity consumption. The typical residential customer experienced an estimated monthly increase of $4.10 in 2022, slightly less than the initially requested 5.9% rate increase.
Electricity
MGE owns and manages electric generation and distribution assets serving approximately 149,000 customers across Madison and neighboring communities within Dane County.
Its owned generating facilities include:
- Blount Generating Station (Madison Isthmus), a 100 MW natural gas plant
- West Campus Cogeneration Facility, producing 150 MW from natural gas
- Elm Road Generating Station (Oak Creek), providing 100 MW from a shared 1,230 MW coal-fired plant commissioned in 2010
- Columbia Energy Center (Portage), a coal-fired plant with a capacity of 1,100 MW scheduled for retirement in 2025
- Natural gas combustion turbines: one located in Marinette (83 MW) plus five units in Madison used during peak demand periods
- Biogas-powered electricity generated from manure digesters within Dane County totaling approximately 0.011 MWh
- Solar arrays installed at MGE’s headquarters, municipal facilities, airports, and smaller sites
- O'Brien Solar Fields (Fitchburg), delivering 20 MW
- Planned Koshkonong Solar Center (Cambridge and Deerfield), with a proposed capacity of 300 MW
- Wind energy projects totaling 153 MW spread across Wisconsin counties (Kewaunee, Dodge, Fond du Lac) and Iowa locations (Worth County, Kensett, Saratoga)
Furthermore, MGE holds long-term power purchase agreements to complement its owned generation resources.
Natural gas
The company procures natural gas supplies and operates distribution infrastructure serving roughly 154,000 customers throughout Madison, adjacent Dane County suburbs, as well as six additional counties within Wisconsin.
Green energy alternatives
MGE provides the Green Power Tomorrow initiative, enabling both residential and commercial customers to buy renewable energy.