Action expected next week on Madison Electric Rates

The City of Madison could vote as soon as next week to begin a series of electric rate increases. The action is expected to come after Madison received the preliminary findings from an electric rate study conducted by DRG Engineering. The study showed the need for rate increases to pay for system improvements, with a price tag of around 16-million dollars. 

The Commission last week directed city staff to prepare a resolution to pursue a 9% electric rate increase in 2025. The plan laid out then calls for annual increases of 8%, 5%, 3%, and 3% in each of the next four years after that. 

The increases are part of Madison’s Electric System Long Range Plan to address aging infrastructure in 5 key areas. That includes replacement and transmission line rebuild of the Green Substation. The city says the existing substation has reached end of life and is in immediate need of replacement, otherwise it faces the risk of failure.

Also included is transformer replacement at the Power Plant, Updating the South East Substation and Converting from 69 Kilovolt to 115. Transmission lines would also be upgraded from 69 Kilovolt to 115 Kilovolt. 

Finally, the plan also includes the continued conversion of the overhead transmission loop line to underground lines. 

The city says their staff is available to assist in securing resources for residents who are experiencing difficulties with paying their utility bills. Residents are advised to stop in and discuss their situation with staff or call (605) 256-7504.