Re: Madison Gas and Electric Company

Hon. Richard D. Cudahy

U.S. Court of Appeals for the 7th Circuit


Infrastructure 14:3 (1974)

The Wisconsin Public Service Commission's August 8, 1974 decision to restructure the rates of the Madison Gas and Electric Company was an effort to obtain the optimum allocation of resources as part of a general rate increase proceeding. This new system was implemented through time-of-day metering to create price differentiation for on- and off-peak sales in a way that would best allow the prices of the utility's goods and services to equal their marginal costs of production. The goal was for customers to be accurately charged for energy consumption as measured by the cost actually imposed on society, while simultaneously being rewarded for shifting their energy use to off-peak times to improve the utility's load factor. The Commission determined that taxation in such a way would be the most appropriate way to recognize externalities in the rate-making process.

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Date posted: October 31, 2012  

Suggested Citation

Cudahy, Hon. Richard D., Re: Madison Gas and Electric Company (1974). Infrastructure 14:3 (1974). Available at SSRN: https://ssrn.com/abstract=2019179

Contact Information

Richard D. Cudahy (Contact Author)
U.S. Court of Appeals for the 7th Circuit ( email )
219 S. Dearborn Street
Chicago, IL 60604
United States
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