Wisconsin · investor-owned utility
Madison Gas and Electric (MGE): power factor rules
Ordinary commercial and industrial customers have no power-factor charge. One transmission-voltage interruptible schedule adjusts billed demand if low power factor isn't corrected after notice.
Power-factor rule confirmed Tariffs checked 2026-10-03
Smaller customers
Cg-2, Cg-4, Cg-5 and Cg-6 have no power-factor billing provision. MGE's service rules do set power-factor requirements for some equipment, such as motors over 100 hp.
The power-factor rule
Cp-1 C&I High Load Factor Direct Control Interruptible Service for Transmission Voltage
Applies to: Service at 69 kV or higher, interruptible demand above 10,000 kW, annual load factor of at least 90%.
How it works: After written notice, if corrective equipment isn't installed within 240 days, on-peak billed demand is scaled by 85% divided by the actual power factor.
Formula: Billed on-peak kW = registered on-peak kW × (0.85 / actual PF).
"the measured on-peak kW demands used for billing purposes thereafter will be determined by multiplying the registered on-peak demand in kW by the ratio: 85 percent/actual power factor."
Source: Madison Gas and Electric Company – Electric Rates and Rules, Electric Volume 4, Schedule Cp-1, Sheet E-4.6.1, Determination of Demand item 3. Sheet E-4.6.1 effective January 1, 2021. Checked 2026-10-03; review by 2027-10-03.
What to do next
- Size the kVAR for your load.
- Send us a bill and we'll tell you what you're paying and what correction is worth.
Cities we serve in Madison Gas and Electric (MGE) territory
Tariffs change. This summary reflects the documents cited above as checked on 2026-10-03; your utility's current rate schedule and your bill govern what you pay.