Green Power Tomorrow FAQ
What is Green Power Tomorrow?
Green Power Tomorrow (GPT) is MGE's green pricing option for electric customers. GPT offers customers a flexible and affordable option to support renewable energy from MGE. At a penny more per kilowatt-hour (kWh), GPT is a convenient and effective way for customers to support renewable energy and offset their greenhouse gas emissions. GPT is served by regional MGE renewable resources.
MGE residential and business customers pay a penny more than their standard electricity rate per kWh for GPT. Customers choose the amount of clean energy they want to purchase. Each kWh of electricity you are allocated from the GPT program will be from renewable energy resources in our area, including both wind farms and solar arrays. Those allocated kWh include the environmental benefits, or Renewable Energy Certificates, which are retired on your behalf. GPT is one cent more per kWh.*
Who can participate in GPT?
MGE electric customers—residential and business—can sign up for this voluntary program.
How much does it cost?
GPT customers pay $0.01 per kWh above their standard electricity rate.* The impact on your bill depends on how much electricity you use and the level at which you want to participate in GPT.
Residential customers can select a fixed amount ($5, $10, $15, $20), not to exceed the actual energy use each month, or any percentage of their monthly energy use.
Participating businesses pay the same $0.01 per kWh premium.* They also can choose a fixed amount or any percentage of their monthly energy use. Prices will not be affected for customers who do not sign up for GPT.
For customers who choose the GPT 100 option, their percentage participation in GPT is tailored to account for the percentage of MGE's energy portfolio that is served by renewable resources. For example, a participant in GPT 100 would have 25% of their usage served by renewable resources included in MGE's standard resource portfolio; that 25% would not be charged the per-kWh GPT charge.** The customer will have 75% of their energy use subject to the $0.01/kWh incremental energy charge under the GPT program. In subsequent years, as the percentage of renewables included in MGE's standard resource portfolio increases, the percentage of GPT purchased decreases.
You may also choose to cover 100% of your usage and pay the GPT incremental energy charge on all of your electricity usage. That means you would see the $0.01/kWh charge added to 100% of your monthly usage.*
Can this cost change?
The price is subject to periodic review by the Public Service Commission of Wisconsin. It is based on the difference between the cost of renewable resources supplying GPT and the average cost of all energy supplied to the grid in our region.
What is GPT 100?
Effective Jan. 1, 2024, GPT 100 is an option that automatically tailors a customer's percentage participation in GPT to account for the percentage of MGE's energy portfolio that is served by renewable resources. For example, a participant in GPT 100 would have 25% of their usage served by renewable resources included in MGE's standard energy portfolio.** The customer then will have 75% of their energy use subject to the $0.01/kWh incremental energy charge under the GPT program.*
In subsequent years, as the percentage of renewables included in MGE's standard resource portfolio increases, the percentage of GPT purchased decreases. You can find this percentage in the RWE-1 and BWE-1 sections of MGE's Electric Rates and Rules.
Customers participating in GPT 100 will see two line items on their bill. The "Green Power Tomorrow" line is the incremental energy charge under the GPT program and is applied to 75% of the customer's electricity use. The "Green Power Tomorrow - Included Renewable Portfolio" line is the remaining 25% of the customer's electricity usage that is already included in MGE's energy portfolio and includes no charge.
Why is MGE offering GPT?
GPT gives customers the opportunity to support renewable energy resources. For a penny more per kWh, GPT is a convenient and effective way for customers to support renewable energy and offset their greenhouse gas emissions.* Other customers may not be able to afford to pay more or may choose not to participate.
Why would a customer pay more for green power if they can choose less expensive options?
GPT offers customers an opportunity to reduce their individual impact on the environment. Renewable resources like wind and solar are constantly replenished and cleaner than fossil fuels. Burning fossil fuels to generate electricity produces carbon dioxide, a greenhouse gas, and other emissions.
If I don't participate, does this program affect my rates?
No. MGE designed this program to allow customers who wish to support renewable energy the option to do so without affecting the rates of those who choose not to participate.
Isn't MGE legally required to provide renewable sources of electricity for everyone?
Yes. The State of Wisconsin requires all electric utilities to use renewable resources for 10% of their energy mix. MGE meets this requirement, and the costs to supply this mandated renewable energy are spread across all customers. MGE continues to grow its use of renewable energy serving all customers as the company works with customers to achieve net-zero carbon electricity by 2050.
What's the difference between GPT and MGE's Shared Solar program?
Both of MGE's renewable energy programs provide eligible electric customers with the opportunity to support electricity from clean energy sources. Under Shared Solar, customers pay a one-time, up-front fee to reserve a portion (up to half of their annual electricity use) of the energy produced at MGE's Shared Solar arrays. Customers then pay a fixed price of $0.109 per kWh for their share of the energy produced by these solar arrays.
Will I have more green power at my home?
We can't control which electrons flow into your home. All electricity that is generated is fed into the electric grid. A convenient analogy is to think of this grid as a pool. Different generators (power plants, solar arrays and wind farms) all feed electricity into this pool. When you need electricity, electrons flow out of this pool to your home or business. While the laws of physics make it impossible to separate a green electron from one produced by fossil fuels, MGE is transitioning our energy supply toward greater use of renewable resources. MGE's GPT program offers customers an option to support renewable resources and offset their greenhouse gas emissions. Each kWh of electricity you are allocated from the GPT program will be from renewable energy resources in our area, including both wind farms and solar arrays. Those allocated kWh include the environmental benefits, or Renewable Energy Certificates, which are retired on your behalf.
*This cost reflects the effective GPT rate. We will notify you in advance if the cost changes. You may change your participation at any time.
**The percentage of renewables included in MGE's standard energy portfolio will increase in subsequent years, lowering the purchased GPT percentage in the future.
