Influencing Utilities through Shareholder Advocacy: the Madison Gas Electric Case Study

摘要

A group of Madison Gas & Electric (MGE) shareholders came together in the summer and fall of 2014 after being concerned that MGE's proposed 2014 monthly fixed fee increase was leading the company in the wrong direction. The shareholders met as a group a number of times in November of 2014 and decided that submitting resolutions to be included in the annual proxy statement for a vote was the best course of action for MGE management to take notice of shareholders concerns. Two resolutions, for a renewable energy study and executive compensation tied to sustainability metrics were submitted, and later withdrawn in exchange for a written statement, signed by MGE's CEO, to pursue the objectives of the resolutions. A professional renewable energy firm was hired and conducted a renewable energy price study, currently under review. The initial group of 50 shareholders has now become more formalized and is branded as MGE Shareholders for Clean Energy, has developed a logo, and has a Facebook page. In 2015, the group submitted eight new proxy resolutions to MGE management, which prompted MGE to agree to meet with shareholders four times in 2016 to discuss ways MGE could promote clean energy. This paper describes the process and outcomes thus far of the MGE shareholder advocacy.