Posted: Wednesday, October 24, 2012 --- 4:14p.m.

MADISON, Wis. (AP) -- Customers of Wisconsin Power & Light will pay lower rates for electricity in 2013.

The Wisconsin Public Service Commission gave preliminary approval Wednesday to a 2.9 percent reduction in retail electric rates. For the Madison-based utility, it will mean dropping rates by $29 million in 2013.

The Wisconsin State Journal (http://bit.ly/P3bpM1) reports WP&L's electric rates are being lowered because it is costing the company less to produce power.

WP&L had requested a 2.5 percent electric rate cut earlier this year, but revised its proposal this month when forecasts said fuel costs will keep going down.

The company serves about one-third of southern and central Wisconsin, mainly outside Madison.

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Information from: Wisconsin State Journal, http://www.madison.com/wsj

Copyright 2012. The Associated Press.