Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Document And Entity Information [Line Items] | ||
Entity Registrant Name | MGE Energy, Inc. | |
Entity Central Index Key | 0001161728 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2024 | |
Amendment Flag | false | |
Trading Symbol | MGEE | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 36,175,888 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Security Exchange Name | NASDAQ | |
Security 12(b) Title | Common Stock, $1 Par Value Per Share | |
Entity Tax Identification Number | 39-2040501 | |
Securities Act File Number | 000-49965 | |
Entity Incorporation, State or Country Code | WI | |
Entity Address, Address Line One | 133 South Blair Street | |
Entity Address, City or Town | Madison | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53788 | |
City Area Code | 608 | |
Local Phone Number | 252-7000 | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
MGE [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Registrant Name | Madison Gas and Electric Company | |
Entity Central Index Key | 0000061339 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,347,894 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Tax Identification Number | 39-0444025 | |
Securities Act File Number | 000-1125 | |
Entity Incorporation, State or Country Code | WI | |
Entity Address, Address Line One | 133 South Blair Street | |
Entity Address, City or Town | Madison | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53788 | |
City Area Code | 608 | |
Local Phone Number | 252-7000 | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Revenues: | ||||
Electric revenues | $ 120,597 | $ 121,707 | $ 236,764 | $ 238,998 |
Gas revenue | 25,116 | 26,291 | 100,285 | 126,253 |
Total Operating Revenues | 145,713 | 147,998 | 337,049 | 365,251 |
Operating Expenses: | ||||
Fuel for electric generation | 11,237 | 13,599 | 23,941 | 27,406 |
Purchased power | 8,850 | 5,845 | 18,292 | 21,231 |
Cost of gas sold | 6,293 | 7,289 | 48,170 | 75,136 |
Other operations and maintenance | 56,730 | 52,049 | 110,704 | 102,007 |
Depreciation and amortization | 26,932 | 25,119 | 53,532 | 49,730 |
Other general taxes | 5,936 | 5,707 | 11,930 | 11,317 |
Total Operating Expenses | 115,978 | 109,608 | 266,569 | 286,827 |
Operating Income | 29,735 | 38,390 | 70,480 | 78,424 |
Other income, net | 3,856 | 4,937 | 7,737 | 10,292 |
Interest expense, net | (8,325) | (7,760) | (16,329) | (15,247) |
Income before income taxes | 25,266 | 35,567 | 61,888 | 73,469 |
Income tax provision | (1,472) | (6,886) | (4,280) | (13,710) |
Net Income Including Noncontrolling Interest | 23,794 | 28,681 | 57,608 | 59,759 |
Net Income | $ 23,794 | $ 28,681 | $ 57,608 | $ 59,759 |
Earnings per share of Common Stock - Basic | $ 0.66 | $ 0.79 | $ 1.59 | $ 1.65 |
Earnings per share of Common Stock - Diluted | 0.66 | 0.79 | 1.59 | 1.65 |
Dividends per share of common stock | $ 0.428 | $ 0.408 | $ 0.855 | $ 0.815 |
Weighted Average Shares Outstanding - Basic | 36,176 | 36,163 | 36,173 | 36,163 |
Weighted Average Shares Outstanding - Diluted | 36,197 | 36,186 | 36,196 | 36,183 |
MGE [Member] | ||||
Operating Revenues: | ||||
Electric revenues | $ 120,597 | $ 121,707 | $ 236,764 | $ 238,998 |
Gas revenue | 25,116 | 26,291 | 100,285 | 126,253 |
Total Operating Revenues | 145,713 | 147,998 | 337,049 | 365,251 |
Operating Expenses: | ||||
Fuel for electric generation | 11,237 | 13,599 | 23,941 | 27,406 |
Purchased power | 8,850 | 5,845 | 18,292 | 21,231 |
Cost of gas sold | 6,293 | 7,289 | 48,170 | 75,136 |
Other operations and maintenance | 56,601 | 51,835 | 110,161 | 101,404 |
Depreciation and amortization | 26,932 | 25,119 | 53,532 | 49,730 |
Other general taxes | 5,936 | 5,707 | 11,930 | 11,317 |
Total Operating Expenses | 115,849 | 109,394 | 266,026 | 286,224 |
Operating Income | 29,864 | 38,604 | 71,023 | 79,027 |
Other income, net | 1,134 | 3,254 | 2,242 | 6,161 |
Interest expense, net | (8,433) | (7,815) | (16,509) | (15,335) |
Income before income taxes | 22,565 | 34,043 | 56,756 | 69,853 |
Income tax provision | (811) | (6,436) | (2,802) | (12,603) |
Net Income Including Noncontrolling Interest | 21,754 | 27,607 | 53,954 | 57,250 |
Less Net Income Attributable to Noncontrolling Interest, net of tax | (5,766) | (5,375) | (11,363) | (10,895) |
Net Income | $ 15,988 | $ 22,232 | $ 42,591 | $ 46,355 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Activities: | ||
Net Income | $ 57,608 | $ 59,759 |
Items not affecting cash: | ||
Depreciation and amortization | 53,532 | 49,730 |
Deferred income taxes | (1,351) | 12,713 |
Provision for doubtful receivables | 4,400 | 882 |
Employee benefit plan cost (credit) | 323 | (1,227) |
Equity earnings in investments | (5,526) | (5,240) |
Other items | 930 | (885) |
Changes in working capital items: | ||
Decrease in current assets | 22,086 | 34,098 |
Decrease in accounts payable | (9,646) | (20,508) |
Increase (decrease) in current liabilities | 3,718 | (2,105) |
Dividends from investments | 4,238 | 4,248 |
Cash contributions to pension and other postretirement plans | (3,634) | (3,540) |
Other noncurrent items, net | 3,756 | (934) |
Cash Provided by Operating Activities | 130,434 | 126,991 |
Investing Activities: | ||
Capital expenditures | (111,622) | (107,701) |
Capital contributions to investments | (3,159) | (3,376) |
Other | 1,272 | (682) |
Cash Used for Investing Activities | (113,509) | (111,759) |
Financing Activities: | ||
Cash dividends paid on common stock | (30,930) | (29,473) |
Repayments of long-term debt | (2,556) | (21,791) |
Issuance of long-term debt | 0 | 69,300 |
Proceeds from (repayments of) short-term debt | 21,800 | (28,500) |
Other | (728) | (1,479) |
Cash Used for Financing Activities | (12,414) | (11,943) |
Change in cash, cash equivalents, and restricted cash | 4,511 | 3,289 |
Cash, cash equivalents, and restricted cash at beginning of period | 15,026 | 17,968 |
Cash, cash equivalents, and restricted cash at end of period | 19,537 | 21,257 |
Significant noncash investing activities: | ||
Accrued capital expenditures | 11,416 | 6,446 |
MGE [Member] | ||
Operating Activities: | ||
Net Income | 53,954 | 57,250 |
Items not affecting cash: | ||
Depreciation and amortization | 53,532 | 49,730 |
Deferred income taxes | (1,287) | 11,955 |
Provision for doubtful receivables | 4,400 | 882 |
Employee benefit plan cost (credit) | 323 | (1,227) |
Other items | 1,446 | (1,344) |
Changes in working capital items: | ||
Decrease in current assets | 22,098 | 33,520 |
Decrease in accounts payable | (9,642) | (20,560) |
Increase (decrease) in current liabilities | 4,774 | (188) |
Cash contributions to pension and other postretirement plans | (3,634) | (3,540) |
Other noncurrent items, net | 2,465 | (1,428) |
Cash Provided by Operating Activities | 128,429 | 125,050 |
Investing Activities: | ||
Capital expenditures | (111,622) | (107,701) |
Other | (894) | (805) |
Cash Used for Investing Activities | (112,516) | (108,506) |
Financing Activities: | ||
Cash dividends paid to parent by MGE | (24,000) | (21,000) |
Distributions to parent from noncontrolling interest | (10,000) | (10,250) |
Repayments of long-term debt | (2,556) | (21,791) |
Issuance of long-term debt | 0 | 69,300 |
Proceeds from (repayments of) short-term debt | 21,800 | (28,500) |
Other | (728) | (1,479) |
Cash Used for Financing Activities | (15,484) | (13,720) |
Change in cash, cash equivalents, and restricted cash | 429 | 2,824 |
Cash, cash equivalents, and restricted cash at beginning of period | 6,705 | 10,500 |
Cash, cash equivalents, and restricted cash at end of period | 7,134 | 13,324 |
Significant noncash investing activities: | ||
Accrued capital expenditures | $ 11,416 | $ 6,446 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 16,270 | $ 11,140 |
Accounts receivable, less reserves | 42,962 | 46,734 |
Other accounts receivables, less reserves | 16,297 | 15,618 |
Unbilled revenues | 27,856 | 33,181 |
Materials and supplies, at average cost | 35,454 | 33,385 |
Fuel for electric generation, at average cost | 13,190 | 13,423 |
Stored natural gas, at average cost | 21,960 | 25,840 |
Prepaid taxes | 17,929 | 22,310 |
Regulatory assets - current | 16,032 | 20,979 |
Other current assets | 14,280 | 15,587 |
Total Current Assets | 222,230 | 238,197 |
Regulatory assets | 66,376 | 81,589 |
Pension benefit asset | 99,021 | 93,896 |
Other deferred assets and other | 20,910 | 20,741 |
Property, Plant, and Equipment: | ||
Property, plant, and equipment, net | 2,073,061 | 2,018,121 |
Construction work in progress | 128,232 | 110,091 |
Total Property, Plant, and Equipment | 2,201,293 | 2,128,212 |
Investments | 114,812 | 112,823 |
Total Assets | 2,724,642 | 2,675,458 |
Current Liabilities: | ||
Long-term debt due within one year | 5,215 | 5,146 |
Short-term debt | 59,800 | 38,000 |
Accounts payable | 49,834 | 65,451 |
Accrued interest and taxes | 10,234 | 9,372 |
Accrued payroll related items | 12,560 | 15,888 |
Regulatory liabilities - current | 21,803 | 15,296 |
Other current liabilities | 8,631 | 8,003 |
Total Current Liabilities | 168,077 | 157,156 |
Other Credits: | ||
Deferred income taxes | 287,160 | 279,029 |
Investment tax credit - deferred | 45,940 | 46,892 |
Regulatory liabilities | 150,122 | 162,316 |
Accrued pension and other postretirement benefits | 55,634 | 55,058 |
Asset Retirement Obligations, Noncurrent | 71,724 | 54,430 |
Other deferred liabilities and other | 61,896 | 61,682 |
Total Other Credits | 672,476 | 659,407 |
Capitalization: | ||
Common shareholders equity | 1,167,628 | 1,140,073 |
Long-term debt | 716,461 | 718,822 |
Total Capitalization | 1,884,089 | 1,858,895 |
Commitments and contingencies (see Footnote 8) | ||
Total Liabilities and Capitalization | 2,724,642 | 2,675,458 |
MGE [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 3,867 | 2,819 |
Accounts receivable, less reserves | 42,962 | 46,734 |
Other accounts receivables, less reserves | 16,294 | 15,616 |
Unbilled revenues | 27,856 | 33,181 |
Materials and supplies, at average cost | 35,454 | 33,385 |
Fuel for electric generation, at average cost | 13,190 | 13,423 |
Stored natural gas, at average cost | 21,960 | 25,840 |
Prepaid taxes | 18,012 | 22,338 |
Regulatory assets - current | 16,032 | 20,979 |
Other current assets | 14,714 | 16,088 |
Total Current Assets | 210,341 | 230,403 |
Regulatory assets | 66,376 | 81,589 |
Pension benefit asset | 99,021 | 93,896 |
Other deferred assets and other | 20,584 | 20,780 |
Property, Plant, and Equipment: | ||
Property, plant, and equipment, net | 2,073,089 | 2,018,149 |
Construction work in progress | 128,232 | 110,091 |
Total Property, Plant, and Equipment | 2,201,321 | 2,128,240 |
Investments | 67 | 60 |
Total Assets | 2,597,710 | 2,554,968 |
Current Liabilities: | ||
Long-term debt due within one year | 5,215 | 5,146 |
Short-term debt | 59,800 | 38,000 |
Accounts payable | 49,821 | 65,434 |
Accrued interest and taxes | 9,744 | 9,325 |
Accrued payroll related items | 12,560 | 15,888 |
Regulatory liabilities - current | 21,803 | 15,296 |
Other current liabilities | 8,631 | 6,502 |
Total Current Liabilities | 167,574 | 155,591 |
Other Credits: | ||
Deferred income taxes | 252,829 | 244,634 |
Investment tax credit - deferred | 45,940 | 46,892 |
Regulatory liabilities | 150,122 | 162,316 |
Accrued pension and other postretirement benefits | 55,634 | 55,058 |
Asset Retirement Obligations, Noncurrent | 71,724 | 54,430 |
Other deferred liabilities and other | 64,216 | 63,969 |
Total Other Credits | 640,465 | 627,299 |
Capitalization: | ||
Common shareholders equity | 922,316 | 903,725 |
Noncontrolling interest | 150,894 | 149,531 |
Total Equity | 1,073,210 | 1,053,256 |
Long-term debt | 716,461 | 718,822 |
Total Capitalization | 1,789,671 | 1,772,078 |
Commitments and contingencies (see Footnote 8) | ||
Total Liabilities and Capitalization | $ 2,597,710 | $ 2,554,968 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables, Net | ||
Reserve for uncollectible accounts receivable | $ 5,844 | $ 6,537 |
Reserve for uncollectible other accounts receivable | 1,874 | 1,561 |
MGE [Member] | ||
Receivables, Net | ||
Reserve for uncollectible accounts receivable | 5,844 | 6,537 |
Reserve for uncollectible other accounts receivable | $ 1,874 | $ 1,561 |
MGE Energy Inc Consolidated Sta
MGE Energy Inc Consolidated Statements of Common Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Beginning balance, shares at Dec. 31, 2022 | 36,163 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 1,081,674 | $ 36,163 | $ 395,657 | $ 649,854 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income (Loss) | 59,759 | 59,759 | |||
Common stock dividends declared | (29,473) | (29,473) | |||
Equity-based compensation plans and other | 624 | 624 | |||
Ending balance, shares at Jun. 30, 2023 | 36,163 | ||||
Ending balance, value at Jun. 30, 2023 | 1,112,584 | $ 36,163 | 396,281 | 680,140 | 0 |
Beginning balance, shares at Mar. 31, 2023 | 36,163 | ||||
Beginning balance, value at Mar. 31, 2023 | 1,098,370 | $ 36,163 | 396,011 | 666,196 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income (Loss) | 28,681 | 28,681 | |||
Common stock dividends declared | (14,737) | (14,737) | |||
Equity-based compensation plans and other | 270 | 270 | |||
Ending balance, shares at Jun. 30, 2023 | 36,163 | ||||
Ending balance, value at Jun. 30, 2023 | 1,112,584 | $ 36,163 | 396,281 | 680,140 | 0 |
Beginning balance, shares at Dec. 31, 2023 | 36,163 | ||||
Beginning balance, value at Dec. 31, 2023 | 1,140,073 | $ 36,163 | 396,750 | 707,160 | 0 |
Ending balance, shares at Mar. 31, 2024 | 36,176 | ||||
Ending balance, value at Mar. 31, 2024 | 1,158,783 | $ 36,176 | 397,093 | 725,514 | 0 |
Beginning balance, shares at Dec. 31, 2023 | 36,163 | ||||
Beginning balance, value at Dec. 31, 2023 | 1,140,073 | $ 36,163 | 396,750 | 707,160 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income (Loss) | 57,608 | 57,608 | |||
Common stock dividends declared | (30,930) | (30,930) | |||
Equity-based compensation plans and other - Shares | 13 | ||||
Equity-based compensation plans and other | 877 | $ 13 | 864 | ||
Ending balance, shares at Jun. 30, 2024 | 36,176 | ||||
Ending balance, value at Jun. 30, 2024 | 1,167,628 | $ 36,176 | 397,614 | 733,838 | 0 |
Beginning balance, shares at Mar. 31, 2024 | 36,176 | ||||
Beginning balance, value at Mar. 31, 2024 | 1,158,783 | $ 36,176 | 397,093 | 725,514 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income (Loss) | 23,794 | 23,794 | |||
Common stock dividends declared | (15,470) | (15,470) | |||
Equity-based compensation plans and other | 521 | 521 | |||
Ending balance, shares at Jun. 30, 2024 | 36,176 | ||||
Ending balance, value at Jun. 30, 2024 | $ 1,167,628 | $ 36,176 | $ 397,614 | $ 733,838 | $ 0 |
Consolidated Statements of Comm
Consolidated Statements of Common Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Dividends per share of common stock | $ 0.428 | $ 0.408 | $ 0.855 | $ 0.815 |
Madison Gas and Electric Compan
Madison Gas and Electric Company Consolidated Statements of Common Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | MGE [Member] | Common Stock [Member] | Common Stock [Member] MGE [Member] | Additional Paid-in Capital [Member] MGE [Member] | Retained Earnings [Member] MGE [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] MGE [Member] | Noncontrolling Interest [Member] MGE [Member] |
Beginning balance, shares at Dec. 31, 2022 | 36,163 | 17,348 | ||||||
Beginning balance, value at Dec. 31, 2022 | $ 1,002,386 | $ 17,348 | $ 252,917 | $ 583,958 | $ 0 | $ 148,163 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | $ 59,759 | 57,250 | 46,355 | 10,895 | ||||
Cash dividends paid to parent by MGE | (21,000) | (21,000) | ||||||
Distributions to parent from noncontrolling interest | (10,250) | (10,250) | ||||||
Ending balance, shares at Jun. 30, 2023 | 36,163 | 17,348 | ||||||
Ending balance, value at Jun. 30, 2023 | 1,028,386 | $ 17,348 | 252,917 | 609,313 | 0 | 148,808 | ||
Beginning balance, shares at Mar. 31, 2023 | 36,163 | 17,348 | ||||||
Beginning balance, value at Mar. 31, 2023 | 1,013,529 | $ 17,348 | 252,917 | 595,581 | 0 | 147,683 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 28,681 | 27,607 | 22,232 | 5,375 | ||||
Cash dividends paid to parent by MGE | (8,500) | (8,500) | ||||||
Distributions to parent from noncontrolling interest | (4,250) | (4,250) | ||||||
Ending balance, shares at Jun. 30, 2023 | 36,163 | 17,348 | ||||||
Ending balance, value at Jun. 30, 2023 | 1,028,386 | $ 17,348 | 252,917 | 609,313 | 0 | 148,808 | ||
Beginning balance, shares at Dec. 31, 2023 | 36,163 | 17,348 | ||||||
Beginning balance, value at Dec. 31, 2023 | 1,053,256 | $ 17,348 | 252,917 | 633,460 | 0 | 149,531 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 57,608 | 53,954 | 42,591 | 11,363 | ||||
Cash dividends paid to parent by MGE | (24,000) | (24,000) | ||||||
Distributions to parent from noncontrolling interest | (10,000) | (10,000) | ||||||
Ending balance, shares at Jun. 30, 2024 | 36,176 | 17,348 | ||||||
Ending balance, value at Jun. 30, 2024 | 1,073,210 | $ 17,348 | 252,917 | 652,051 | 0 | 150,894 | ||
Beginning balance, shares at Mar. 31, 2024 | 36,176 | 17,348 | ||||||
Beginning balance, value at Mar. 31, 2024 | 1,067,456 | $ 17,348 | 252,917 | 646,063 | 0 | 151,128 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | $ 23,794 | 21,754 | 15,988 | 5,766 | ||||
Cash dividends paid to parent by MGE | (10,000) | (10,000) | ||||||
Distributions to parent from noncontrolling interest | (6,000) | (6,000) | ||||||
Ending balance, shares at Jun. 30, 2024 | 36,176 | 17,348 | ||||||
Ending balance, value at Jun. 30, 2024 | $ 1,073,210 | $ 17,348 | $ 252,917 | $ 652,051 | $ 0 | $ 150,894 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Principles | Summary of Significa nt Accounting Policies – MGE Energy and MGE. a. Basis of Presentation. This report is a combined report of MGE Energy and MGE. References in this report to "MGE Energy" are to MGE Energy, Inc. and its subsidiaries. References in this report to "MGE" are to Madison Gas and Electric Company. MGE Power Elm Road and MGE Power West Campus own electric generating assets and lease those assets to MGE. Both entities are variable interest entities (VIE) under applicable authoritative accounting guidance. MGE is considered the primary beneficiary of these entities as a result of contractual agreements. As a result, MGE has consolidated MGE Power Elm Road and MGE Power West Campus. See Footnote 3 of Notes to Consolidated Financial Statements under Item 8, Financial Statements and Supplementary Data, of MGE Energy's and MGE's 2023 Annual Report on Form 10-K (the 2023 Annual Report on Form 10-K ). The accompanying consolidated financial statements as of June 30, 2024, and during the three and six months ended, are unaudited but include all adjustments that MGE Energy and MGE management consider necessary for a fair statement of their respective financial statements. All adjustments are of a normal, recurring nature except as otherwise disclosed. The year-end consolidated balance sheet information was derived from the audited balance sheet appearing in the 2023 Annual Report on Form 10-K but does not include all disclosures required by accounting principles generally accepted in the United States of America. These notes should be read in conjunction with the financial statements and the notes on pages 59 through 107 of the 2023 Annual Report on Form 10-K . b. Cash, Cash Equivalents, and Restricted Cash. The following table presents the components of total cash, cash equivalents, and restricted cash on the consolidated balance sheets. MGE Energy MGE June 30, December 31, June 30, December 31, (In thousands) 2024 2023 2024 2023 Cash and cash equivalents $ 16,270 $ 11,140 $ 3,867 $ 2,819 Restricted cash 792 858 792 858 Receivable - margin account 2,475 3,028 2,475 3,028 Cash, cash equivalents, and restricted cash $ 19,537 $ 15,026 $ 7,134 $ 6,705 Cash Equivalents All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. Restricted Cash MGE has certain cash accounts that are restricted to uses other than current operations and designated for a specific purpose. MGE's restricted cash accounts include cash held by trustees for certain employee benefits and cash deposits held by third parties. These are included in "Other current assets" on the consolidated balance sheets. Receivable – Margin Account Cash amounts held by counterparties as margin collateral for certain financial transactions are recorded as Receivable – margin account in "Other current assets" on the consolidated balance sheets. The costs being hedged are fuel for electric generation, purchased power, and cost of gas sold. c. Property, Plant, and Equipment. Columbia. An asset that will be retired in the near future and substantially in advance of its previously expected retirement date is subject to abandonment accounting. In the second quarter of 2021, the operator of Columbia received approval from Midcontinent Independent System Operator (MISO) to retire Columbia Units 1 and 2. The co-owners intend to retire Unit 1 and Unit 2 by June 2026. Final timing and retirement dates are subject to change depending on operational, regulatory, and other factors. As of June 30, 2024, early retirement of Columbia was probable. Our ownership share of Columbia assets was classified as plant to be retired within "Property, plant, and equipment, net" on the consolidated balance sheets. Assets for Columbia Unit 1 and Unit 2 are currently included in rate base, and MGE continues to depreciate them on a straight-line basis using the composite depreciation rates approved by the Public Service Commission of Wisconsin (PSCW) that include retirement dates of 2029 for both Units. If it becomes probable that regulators will disallow full recovery or a return on the remaining net book value of a generating unit that is either abandoned or probable of being abandoned, an impairment loss would be required. An impairment loss would be recorded to the extent that the remaining net book value of the generating unit exceeds the present value of the amount expected to be recovered from ratepayers. No impairment was recorded as of June 30, 2024 . |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Ac counti ng Standards - MGE Energy and MGE. In November 2023, the Financial Accounting Standards Board modified authoritative guidance within the codification's Segment Reporting topic, which enhanced the disclosure requirements for significant segment expenses and other segment items. The authoritative guidance will become effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. MGE will adopt the standard as of the effective date. The adoption of this standard will not have a material impact on MGE Energy's and MGE's financial statements. In December 2023, the Financial Accounting Standards Board issued authoritative guidance within the codification's Income Taxes topic, which expanded the disclosure requirements over effective tax rate reconciliations and income taxes paid. For public business entities, the authoritative guidance will become effective for fiscal years beginning after December 15, 2024. MGE will adopt the standard as of the effective date. The adoption of this standard will not have a material impact on MGE Energy's and MGE's financial statements. |
Investment in ATC and ATC Holdc
Investment in ATC and ATC Holdco | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in ATC and ATC Holdco | Investme nt in ATC and ATC Holdco - MGE Energy and MGE. ATC owns and operates electric transmission facilities primarily in Wisconsin. MGE received an interest in ATC when it, like other Wisconsin electric utilities, contributed its electric transmission facilities to ATC as required by Wisconsin law. That interest is presently held by MGE Transco, a subsidiary of MGE Energy. ATC Holdco was formed by several members of ATC, including MGE Energy, to pursue electric transmission development and investments outside of Wisconsin. The ownership interest in ATC Holdco is held by MGEE Transco, a subsidiary of MGE Energy. MGE Transco and MGEE Transco have accounted for their investments in ATC and ATC Holdco, respectively, under the equity method of accounting. Equity earnings from investments are recorded as "Other income" on the consolidated statements of income of MGE Energy. MGE Transco recorded the following amounts related to its investment in ATC: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Equity earnings from investment in ATC $ 2,748 $ 2,599 $ 5,470 $ 5,182 Dividends received from ATC 2,132 2,042 4,238 4,248 Capital contributions to ATC 1,070 1,601 1,785 1,958 In July 2024, MGE Transco made a $ 0.9 million capital contribution to ATC. ATC's summarized financial data is as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Operating revenues $ 218,222 $ 203,776 $ 430,150 $ 404,202 Operating expenses ( 109,197 ) ( 101,517 ) ( 214,039 ) ( 200,593 ) Other income, net 356 565 543 956 Interest expense, net ( 36,040 ) ( 33,504 ) ( 71,458 ) ( 66,414 ) Earnings before members' income taxes $ 73,341 $ 69,320 $ 145,196 $ 138,151 MGE receives transmission and other related services from ATC. During the three and six months ended June 30, 2024, MGE recorded $ 9.1 million and $ 18.2 million, respectively, for transmission service compared to $ 8.5 million and $ 16.9 million for comparable periods in 2023. MGE also provides a variety of operational, maintenance, and project management work for ATC, which is reimbursed by ATC. As of June 30, 2024, and December 31, 2023, MGE had a receivable due from ATC of $ 2.1 million and $ 5.3 million, respectively. The receivable is primarily related to transmission interconnection activities at Badger Hollow and Paris solar generation sites. MGE will be reimbursed for these costs after the new generation assets are placed into service. |
Taxes
Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes - MGE E nergy and MGE. Effective Tax Rate. The consolidated income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before income taxes, as follows: MGE Energy MGE Three Months Ended June 30, 2024 2023 2024 2023 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.2 6.2 6.2 Amortized investment tax credits ( 2.4 ) ( 0.7 ) ( 2.6 ) ( 0.7 ) Credit for electricity from renewable energy ( 11.7 ) ( 5.2 ) ( 12.9 ) ( 5.6 ) AFUDC equity, net ( 0.7 ) ( 0.4 ) ( 0.7 ) ( 0.4 ) Amortization of utility excess deferred tax - tax reform (a) ( 6.8 ) ( 1.6 ) ( 7.5 ) ( 1.7 ) Other, net, individually insignificant 0.2 0.1 0.1 0.1 Effective income tax rate 5.8 % 19.4 % 3.6 % 18.9 % MGE Energy MGE Six Months Ended June 30, 2024 2023 2024 2023 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.2 6.2 6.2 Amortized investment tax credits ( 2.3 ) ( 0.7 ) ( 2.5 ) ( 0.7 ) Credit for electricity from renewable energy ( 10.8 ) ( 5.6 ) ( 11.9 ) ( 6.1 ) AFUDC equity, net ( 0.7 ) ( 0.4 ) ( 0.7 ) ( 0.5 ) Amortization of utility excess deferred tax - tax reform (a) ( 6.4 ) ( 1.7 ) ( 7.0 ) ( 1.8 ) Other, net, individually insignificant ( 0.1 ) ( 0.1 ) ( 0.2 ) ( 0.1 ) Effective income tax rate 6.9 % 18.7 % 4.9 % 18.0 % (a) Included are impacts of the Tax Cut and Jobs Act of 2017 for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For both the three months ended June 30, 2024 and 2023, MGE recognized $ 0.9 million. For both the six months ended June 30, 2024 and 2023, MGE recognized $ 1.8 million. For the three and six months ended June 30, 2024, MGE recognized $ 1.0 million and $ 2.1 million, respectively, of deferred taxes not restricted by IRS normalization rules, compared to a net collection from customers of $ 0.4 million and $ 0.7 milli on for the three and six months ended June 30, 2023 . The Inflation Reduction Act of 2022 contains a provision that allows the transfer of certain tax credits to other corporate taxpayers in exchange for cash. MGE intends to transfer 2023 and 2024 tax credits and will account for the tax credits transferred as part of income taxes. MGE will also include any expected proceeds from the transfer of tax credits in the evaluation of realizability of deferred tax assets related to tax credits and record a valuation allowance for the difference between the tax value of the credits and the expected proceeds. The PSCW approved the deferral by MGE of any differential between tax credit transfer proceeds and the tax value of credits reflected in rates to its next rate case filing. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Plans | Pensi on and Other Postretirement Plans - MGE Energy and MGE. MGE maintains qualified and nonqualified pension plans, health care, and life insurance benefits and defined contribution 401(k) benefit plans for its employees and retirees. The components of net periodic benefit cost, other than the service cost component, are recorded in " Other income, net " on the consolidated statements of income. The service cost component is recorded in "Other operations and maintenance" on the consolidated statements of income. MGE has regulatory treatment and recognizes regulatory assets or liabilities for timing differences between when net periodic benefit costs are recovered and when costs are recognized. The following table presents the components of net periodic benefit costs recognized. Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Pension Benefits Components of net periodic benefit cost: Service cost $ 780 $ 694 $ 1,539 $ 1,446 Interest cost 4,315 4,337 8,559 8,659 Expected return on assets ( 7,148 ) ( 6,302 ) ( 14,299 ) ( 12,624 ) Amortization of: Actuarial loss 313 492 429 880 Net periodic benefit (credit) cost $ ( 1,740 ) $ ( 779 ) $ ( 3,772 ) $ ( 1,639 ) Postretirement Benefits Components of net periodic benefit cost: Service cost $ 217 $ 190 $ 428 $ 390 Interest cost 779 835 1,576 1,654 Expected return on assets ( 693 ) ( 646 ) ( 1,384 ) ( 1,297 ) Amortization of: Transition obligation — — 1 1 Prior service credit ( 4 ) — ( 8 ) — Actuarial (gain) loss ( 129 ) ( 65 ) ( 206 ) ( 95 ) Net periodic benefit (credit) cost $ 170 $ 314 $ 407 $ 653 As approved by the PSCW, MGE is allowed to defer differences between actual employee benefit plan costs and costs reflected in current rates. The deferred costs may be recovered or refunded in MGE's next rate filing. During the three and six months ended June 30, 2024, MGE recovered $ 1.2 million and $ 2.6 million, respectively, of pension and other postretirement costs previously deferred. During the three and six months ended June 30, 2023, MGE deferred $ 0.4 million and $ 0.8 million, respectively, of pension and other postretirement costs. These costs have not been reflected in the table above. |
Equity and Financing Arrangemen
Equity and Financing Arrangements | 6 Months Ended |
Jun. 30, 2024 | |
Equity and Financing Arrangements Disclosure [Abstract] | |
Equity and Financing Arrangements | Equity and Fi nancing Arrangements - MGE Energy. a. Common Stock. MGE Energy sells shares of its common stock through its Direct Stock Purchase and Dividend Reinvestment Plan (the Stock Plan). Those shares may be newly issued shares or shares that are purchased in the open market by an independent agent for participants in the Stock Plan. Sales of newly issued shares under the Stock Plan are covered by a shelf registration statement that MGE Energy filed with the SEC. During the three and six months ended June 30, 2024 and 2023 , MGE Energy issued no new shares of common stock under the Stock Plan. b. Dilutive Shares Calculation. As of June 30, 2024, 22,937 shares were included in the calculation of diluted earnings per share related to nonvested equity awards. See Footnote 7 for additional information on share-based compensation awards. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based C ompensation - MGE Energy and MGE. During the three and six months ended June 30, 2024 , MGE recorded $ 0.7 million and $ 1.9 million, respectively, in compensation expense related to share-based compensation awards compared to $ 0.7 million and $ 1.8 million for the comparable periods in 2023. In the first quarter of 2024, cash payments of $ 2.5 million and 12,518 shares were distributed related to awards that were granted in 2021 under the 2021 Incentive Plan and 2019 under the 2006 Performance Unit Plan. In March 2024, MGE issued 16,414 performance units and 29,733 restricted stock units under the 2021 Incentive Plan to eligible employees and non-employee directors. MGE recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Awards classified as equity awards are measured based on their grant-date fair value. Awards classified as liability awards are recorded at fair value each reporting period. The performance units can be paid out in either cash, shares of common stock, or a combination of cash and stock and are classified as a liability award. The restricted stock units will be paid out in shares of common stock, and therefore are classified as equity awards. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitmen ts and Contingencies - MGE Energy and MGE. a. Environmental. In February 2021, MGE and the other co-owners of Columbia announced plans to retire that facility. The co-owners intend to retire Unit 1 and Unit 2 by June 2026. Final timing and unit retirement dates are subject to change depending on operational, regulatory, and other factors. Effects of the environmental compliance requirements discussed below will depend upon the final Columbia retirement dates approved, applicable regulations at that time, and required compliance dates. MGE Energy and MGE are subject to frequently changing local, state, and federal regulations concerning air quality, water quality, land use, threatened and endangered species, hazardous materials handling, and solid waste disposal. These regulations affect the manner in which operations are conducted, the costs of operations, as well as capital and operating expenditures. Several of these environmental rules are subject to legal challenges, reconsideration and/or other uncertainties. Regulatory initiatives, proposed rules, and court challenges to adopted rules could have a material effect on capital expenditures and operating costs. Management believes compliance costs will be recovered in future rates based on previous treatment of environmental compliance projects. These initiatives, proposed rules, and court challenges include: • The United States Environmental Protection Agency's (EPA) promulgated water Effluent Limitations Guidelines (ELG) and standards for steam electric power plants that focus on the reduction of metals and other pollutants in wastewater from new and existing power plants. With the closure of the wet pond system in 2023 (as described in further detail in the CCR section below), Columbia complies with ELG requirements. With the installation of additional wastewater treatment equipment completed in 2023, the Elm Road Units comply with ELG requirements. In May 2024, the EPA finalized the ELG rule that further regulates the wastewater discharges associated with coal-fired power plants. The rule focuses on wastewater discharges from flue gas desulfurization and bottom ash transport water. The rule includes a reduction in requirements for plants that have already installed pollution controls based on previous versions of the rule, and for plants that will be retiring or switching to natural gas by certain dates. The operator of the Elm Road Units believes that pollution prevention installed under previous versions of the rule and the planned fuel switching will qualify the Elm Road Units for the reduced requirements. MGE and the operator of the Elm Road Units currently are evaluating the final rule. • The EPA's cooling water intake rule requires cooling water intake structures at electric power plants to meet best technology available (BTA) standards to reduce the mortality from entrainment (drawing aquatic life into a plant's cooling system) and impingement (trapping aquatic life on screens). Blount received its most recent Wisconsin Pollutant Discharge Elimination System (WPDES) permit from the Wisconsin Department of Natural Resources (WDNR) in October 2023. Blount's latest WPDES permit assumes that the plant meets BTA standards for entrainment for the duration of this permit which expires in 2028. The WDNR included a requirement to conduct an impingement study in the latest permit which needs to be completed by the end of 2027. Once the WDNR determines the impingement requirements at Blount, MGE will be able to determine any compliance costs of meeting Blount's permit requirements. Intakes at Columbia are subject to this rule. The Columbia operator's most recent permit required that studies of intake structures be submitted to the WDNR by November 2023 to help determine BTA. Columbia's permit renewal application is due in 2024 and in November 2023 the Columbia operator timely submitted its renewal application to the WDNR. BTA improvements required by the renewal permit will be coordinated with the owners' plan to retire both units by June of 2026. MGE will continue to work with Columbia's operator to evaluate regulatory requirements in light of the planned retirement. MGE does not expect this rule to have a material effect on Columbia. • Greenhouse Gas (GHG) new source performance standards and emission guidelines established under the Clean Air Act for states to use in developing plans to control GHG emissions from fossil fuel-fired electric generating units, including existing and proposed regulations governing existing, new, or modified fossil-fuel generating units. In May 2024, the EPA published its final performance standards and emission guidelines under section 111(b) of the Clean Air Act for carbon dioxide emissions from new combustion turbines and existing fossil-fuel fired boilers used to produce electricity. The final rule grants some emissions flexibility for existing coal-fired units that retire and/or fuel switch by certain dates. For existing natural gas boiler units, the final rule establishes a process where states must submit plans to the EPA for establishing standards. States will have two years from the publication date of these rules to submit plans to the EPA for review and approval. The EPA has indicated that it is separately developing performance standards and emission guidelines for GHG emissions from existing natural gas-fired combustion turbines. Our preliminary evaluation of the final ruling shows that MGE meets the requirements for our gas-fired boilers at Blount. Furthermore, MGE will meet the requirements for our coal-fired units at Columbia through planned unit retirements and the Elm Road Units through its transition to natural gas. MGE will monitor for upcoming rulemaking planned for gas-fired combustion turbines. • The EPA's rule to regulate ambient levels of ozone through the 2015 Ozone National Ambient Air Quality Standards (NAAQS). The Elm Road Units are located in Milwaukee County, Wisconsin, a "moderate" nonattainment area for the 2015 Ozone NAAQS. The deadline for moderate classified areas to meet attainment standards is August 2024. At this time, the operator of the Elm Road Units does not expect that the 2015 Ozone NAAQS or the Milwaukee County nonattainment designation will have a material effect on the Units. • The EPA's rule to regulate Fine Particulate Matter (PM2.5). In March 2024, the EPA published a final rule to lower the average annual PM2.5 NAAQS from 12 ug/m3 to 9 ug/m3 effective May 2024. The new annual PM2.5 NAAQS could impact Milwaukee County, where our Elm Road units are located, if the county is determined to be in nonattainment. A nonattainment designation would require the State of Wisconsin to develop a plan to get into attainment, which would likely include additional limitations for new and modified plants in the county. With the planned transition of the Elm Road Units to natural gas, there is a low probability for the need of additional emission limitations. However, we will not know the impact of this rule until PM data from 2023 and 2024 is evaluated and released, the EPA determines the attainment status of Wisconsin counties, and the State of Wisconsin develops an attainment implementation plan. MGE will continue to follow the rule's developments. • Rules regulating nitrogen oxide (NO x ) and sulfur dioxide (SO 2 ) emissions, including the Cross State Air Pollution Rule (CSAPR) and Clean Air Visibility Rule. The EPA's CSAPR and its progeny are a suite of interstate air pollution transport rules designed to reduce ozone and PM2.5 ambient air levels in areas that the EPA has determined as being significantly impacted by pollution from upwind states. This is accomplished through a reduction in NO x and SO 2 from qualifying fossil-fuel fired power plants and industrial boilers in upwind "contributing" states. NO x and SO 2 contribute to fine particulate pollution and NO x contributes to ozone formation in downwind areas. Reductions are generally achieved through a cap-and-trade system. Individual plants can meet their caps through reducing emissions and/or buying allowances on the market. In March 2023 (published June 2023), the EPA finalized its Federal Implementation Plan to address state obligations under the Clean Air Act "good neighbor" provisions for the 2015 Ozone NAAQS (FIP Rule). The FIP Rule impacts 23 states, including Wisconsin. For Wisconsin, the FIP Rule includes revisions to the current obligations for fossil-fuel power generation, which includes Blount, Columbia, the Elm Road Units, WCCF, West Riverside, and West Marinette. Emissions budgets can be met with planned retirements, fuel switching, and immediately available measures, including consistently operating emissions controls already installed at power plants. In 2026, additional obligations would go into effect, including a further reduction in emissions budgets. Wisconsin would need to submit a State Implementation Plan to meet its obligations or accept the EPA's FIP Rule. Legal challenges to the FIP Rule are pending in the United States Court of Appeals for the District of Columbia. In June 2024, the Supreme Court of the United States granted a request to stay the FIP Rule pending judicial review by the US Court of Appeals for the District of Columbia on the merits of petitioner's challenges to implementation of the rule. Based on our current evaluation, if the FIP Rule were to go into effect, the 2026 additional emission reductions may impact the Elm Road Units and additional upgrades may be needed to comply, however, we will not know the final impact until final decisions are issued in the pending litigation. • The EPA's Coal Combustion Residuals (CCR) Rule. The CCR rule regulates the disposal of solid waste coal ash and defines what ash use activities would be considered generally exempt beneficial reuse of coal ash. The CCR rule also regulates landfills, ash ponds, and other surface impoundments used for coal combustion residuals by regulating their design, location, monitoring, and operation. The CCR rule requires owners and operators of coal-fired power plants to stop transporting CCR and non-CCR wastewater to unlined surface impoundments. With the coal combustion residuals system that replaced the unlined surface impoundment completed in 2023, Columbia complies with this rule. In May 2024, the EPA published its final CCR Legacy Rule. The CCR Legacy Rule applies to previous closed disposal sites. In June 2024, MGE recorded $ 23.7 million asset retirement obligation for its estimated share of the legal liability associated with the effect of the CCR Legacy Rule for remediation and groundwater compliance monitoring. Actual costs of compliance may be different than the amount recorded due to potential changes in compliance strategies that will be used, as well as other potential changes in cost estimate. b. Legal Matters. MGE is involved in various legal matters that are being defended and handled in the normal course of business. MGE accrues for costs that are probable of being incurred and subject to reasonable estimation. The accrued amount for these matters is not material to the financial statements. MGE does not expect the resolution of these matters to have a material adverse effect on its consolidated results of operations, financial condition, or cash flows. Several environmental groups filed petitions against the PSCW challenging the fixed customer charge set in MGE's 2022/2023 rate settlement, 2023 electric limited reopener, and 2024/2025 rate order. MGE has intervened in the petitions in cooperation with the PSCW. See Footnote 9.a. for more information regarding this matter. c. Purchase Contracts. MGE Energy and MGE have entered into various commodity supply, transportation, and storage contracts to meet their obligations to deliver electricity and natural gas to customers. Management expects to recover these costs in future customer rates. The following table shows future commitments related to purchase contracts as of June 30, 2024: (In thousands) 2024 2025 2026 2027 2028 Thereafter Natural gas (a) $ 22,421 $ 40,762 $ 15,492 $ 2,546 $ 2,546 $ 11,224 (a) MGE's natural gas transportation and storage contracts require fixed monthly payments for firm supply pipeline transportation and storage capacity. The pricing components of the fixed monthly payments for the transportation and storage contracts are approved by FERC but may be subject to change. MGE's natural gas supply commitments include market-based pricing. |
Rate Matters
Rate Matters | 6 Months Ended |
Jun. 30, 2024 | |
Regulated Operations [Abstract] | |
Rate Matters | Rate Mat ters - MGE Energy and MGE. a. Rate Proceedings. Rate increase Return on Common Equity Common Equity Component of Regulatory Capital Structure Effective Date Approved 2022/2023 settlement Gas 0.96 % 9.8 % 55.6 % 1/1/2023 Approved limited 2023 reopener (a) Electric 9.01 % 9.8 % 55.6 % 1/1/2023 Approved 2024/2025 rate proceeding (b)(c) Electric 1.54 % 9.7 % 56.1 % 1/1/2024 Gas 2.44 % 9.7 % 56.1 % 1/1/2024 Electric (d) 4.17 % 9.7 % 56.1 % 1/1/2025 Gas 1.32 % 9.7 % 56.1 % 1/1/2025 (a) The electric rate increase was driven by generation assets including our investments in Badger Hollow II (solar), Paris (solar and battery), Red Barn Wind Farm (wind), and West Riverside (natural gas). In addition, the reopener request included an increase in fuel costs and the recovery of deferred 2021 fuel costs. The reopener also revised the depreciation schedule for Columbia Unit 2 and shared equipment to 2029 to align with the depreciation schedule for Unit 1. (b) The electric increase was driven by an increase in rate base including our investments made in West Riverside, local solar, and continued investment in grid modernization, as well as higher costs for transmission, pension and OPEB, and uncollectible costs (including costs previously deferred from prior years). This increase in electric costs is offset by a decrease in fuel costs and benefit from lower tax expense (including impacts from the Inflation Reduction Act). MGE filed an updated 2025 fuel forecast with the PSCW in 2024, which will impact rates in 2025, based on any variance between the forecast submitted as part of the rates and updated forecast. In addition, the PSCW authorized MGE to defer a recovery of and a return on costs associated for any change in the in service date for Paris and Darien and force majeure costs for Badger Hollow II, Paris, and Darien that were not reflected in this rate filing. The PSCW also approved deferral of any differential in PTC tax credits reflected in rates and actual credits produced. These deferrals will be reflected in MGE's next rate case filing. The gas rate increases were also driven by our investment made in grid modernization and higher pension and OPEB and uncollectible costs (including costs previously deferred from prior years). This increase in gas costs is offset by a tax benefit related to excess deferred taxes. Included in the gas residential rate is a reduction in the customer fixed charge. (c) In accordance with the 2024/2025 rate order from the PSCW, MGE will have an earnings sharing mechanism, under which, if MGE earns above the authorized Return on Equity (ROE) in the rate order: (i) the utility will retain 100.0% of earnings for the first 15 basis points above the authorized ROE; (ii) 50.0% of the next 60 basis points will be required to be deferred and returned to ratepayers; and (iii) 100.0% of any remaining excess earnings will be required to be refunded to ratepayers. The earnings calculation excludes fuel rules adjustments. See "Fuel Rules" below. (d) MGE filed a 2025 Fuel Cost Plan with the PSCW in June 2024. The plan would lower the 2025 increase in electric rates to 2.47 % to reflect lower expected fuel costs. MGE expects a final decision from the PSCW on the Fuel Cost Plan by the end of 2024. Sierra Club and Vote Solar have filed petitions with the Dane County Circuit Court seeking review of the PSCW decisions approving MGE's electric and gas 2022/2023 rate settlement, 2023 electric limited reopener, and 2024/2025 rate order. The PSCW is named as the responding party; MGE is not named as a party. The Petitions challenge the amount of customer fixed charge that does not vary with usage. The requested relief is unclear. The revenue requirement approved by the PSCW in the settlement, limited reopener, and 2024/2025 rate order have not been challenged. The PSCW is expected to vigorously defend its approval of the rate case settlement, limited reopener, and the 2024/2025 rate order. MGE has intervened in the proceedings to further defend the PSCW's decision. The Dane County Circuit Court affirmed the PSCW's decision to approve the 2022/2023 rate settlement, and Sierra Club and Vote Solar appealed that decision to the Wisconsin Court of Appeals. On August 6, 2024, the Wisconsin Court of Appeals denied Sierra Club and Vote Solar's appeal and affirmed the PSCW's approval of the 2022/2023 rate settlement. It is not yet known whether Sierra Club and Vote Solar will pursue an appeal to the Wisconsin Supreme Court. The petitions challenging the 2023 electric limited reopener and the 2024/2025 rate order remain stayed pending further proceedings. b. Fu el Rules. Fuel rules require Wisconsin utilities to defer electric fuel-related costs that fall outside a symmetrical cost tolerance band around the amount approved for a utility in its annual fuel proceedings. Any over- or under-recovery of the actual costs is determined in the following year and is then reflected in future billings to electric retail customers. The fuel rules bandwidth is set at plus or minus 2 % in 2024 and 2023. The electric fuel-related costs are subject to an excess revenues test. Excess revenues are defined as revenues in the year in question that provide MGE with a greater return on common equity than authorized by the PSCW in MGE's latest rate order. The recovery of under-collected electric fuel-related costs would be reduced by the amount that exceeds the excess revenue test. These costs are subject to the PSCW's annual review of fuel costs completed in the year following the deferral. The following table summarizes deferred electric fuel-related costs: Fuel Costs (Savings) ( in millions ) Refund or Recovery Period 2021 $ 3.3 (a) January 2023 through December 2023 2022 $ 8.8 (a) October 2023 through September 2024 2023 ($ 7.2 ) (a) October 2024 through December 2024 (a) There was no change to the refund or recovery in the fuel rules proceedings from the amount MGE deferred . |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Instruments | Derivati ve and Hedging Instruments - MGE Energy and MGE. a. Purpose. As part of its regular operations, MGE enters into contracts, including options, swaps, futures, forwards, and other contractual commitments, to manage its exposure to commodity prices. To the extent that these contracts are derivatives, MGE assesses whether or not the normal purchases or normal sales exclusion applies. For contracts to which this exclusion cannot be applied, the derivatives are recognized in the consolidated balance sheets at fair value. MGE's financial commodity derivative activities are conducted in accordance with its electric and gas risk management program, which is approved by the PSCW and limits the volume MGE can hedge with specific risk management strategies. The maximum length of time over which cash flows related to energy commodities can be hedged is four years . If the derivative qualifies for regulatory deferral, the derivatives are marked to fair value and are offset with a corresponding regulatory asset or liability depending on whether the derivative is in a net loss or net gain position, respectively. The deferred gain or loss is recognized in earnings in the delivery month applicable to the instrument. Gains and losses related to hedges qualifying for regulatory treatment are refundable or recoverable in gas rates through the Purchased Gas Adjustment (PGA) or in electric rates as a component of the fuel rules mechanism. b. Notional Amounts. The gross notional volume of open derivatives is as follows: June 30, 2024 December 31, 2023 Commodity derivative contracts 300,240 MWh 392,000 MWh Commodity derivative contracts 6,090,000 Dth 7,180,000 Dth FTRs 4,606 MW 1,824 MW c. Financial Statement Presentation. MGE purchases and sells exchange-traded and over-the-counter options, swaps, and future contracts. These arrangements are primarily entered into to help stabilize the price risk associated with gas or power purchases. These transactions are employed by both MGE's gas and electric segments. Additionally, as a result of the firm transmission agreements that MGE holds on electricity transmission paths in the MISO market, MGE holds financial transmission rights (FTRs). An FTR is a financial instrument that entitles the holder to a stream of revenues or charges based on the differences in hourly day-ahead energy prices between two points on the transmission grid. The fair values of these instruments are offset with a corresponding regulatory asset/liability depending on whether they are in a net loss/gain position. Depending on the nature of the instrument, the gain or loss associated with these transactions will be reflected as cost of gas sold, fuel for electric generation, or purchased power expense in the delivery month applicable to the instrument. As of June 30, 2024, and December 31, 2023, the cost basis of exchange traded derivatives and FTRs exceeded their fair value by $ 1.9 million and $ 5.2 million, respectively. The following table summarizes the fair value of the derivative instruments on the consolidated balance sheets. All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, instruments are netted with the same counterparty under a master netting agreement as well as the netting of collateral. Derivative Derivative (In thousands) Assets Liabilities Balance Sheet Location June 30, 2024 Commodity derivative contracts (a) $ 825 $ 2,524 Other current liabilities Commodity derivative contracts (a) 24 304 Other deferred liabilities and other FTRs 33 — Other current assets December 31, 2023 Commodity derivative contracts (a) $ 263 $ 4,942 Other current liabilities Commodity derivative contracts (a) 156 882 Other deferred liabilities and other FTRs 179 — Other current assets (a) As of June 30, 2024, and December 31, 2023, collateral of $ 2.0 million and $ 5.4 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. The following table shows the effect of netting arrangements for recognized derivative assets and liabilities that are subject to a master netting arrangement or similar arrangement on the consolidated balance sheets. Offsetting of Derivative Assets and Liabilities (In thousands) Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets June 30, 2024 Assets Commodity derivative contracts $ 849 $ ( 849 ) $ — $ — FTRs 33 — — 33 Liabilities Commodity derivative contracts 2,828 ( 849 ) ( 1,979 ) — December 31, 2023 Assets Commodity derivative contracts $ 419 $ ( 419 ) $ — $ — FTRs 179 — — 179 Liabilities Commodity derivative contracts 5,824 ( 419 ) ( 5,405 ) — The following tables summarize the unrealized and realized gains/losses related to the derivative instruments on the consolidated balance sheets and the consolidated statements of income. 2024 2023 (In thousands) Current and Long-Term Regulatory Asset (Liability) Other Current Assets Current and Long-Term Regulatory Asset (Liability) Other Current Assets Three Months Ended June 30: Balance as of April 1, $ 3,009 $ 275 $ 7,813 $ 455 Unrealized loss 758 — 92 — Realized (loss) gain reclassified to a deferred account ( 537 ) 537 ( 1,988 ) 1,988 Realized loss reclassified to income statement ( 1,284 ) ( 285 ) ( 900 ) ( 1,369 ) Balance as of June 30, $ 1,946 $ 527 $ 5,017 $ 1,074 Six Months Ended June 30: Balance as of January 1, $ 5,226 $ 1,569 $ 5,094 $ 2,747 Unrealized loss 2,898 — 14,395 — Realized (loss) gain reclassified to a deferred account ( 2,694 ) 2,694 ( 8,905 ) 8,905 Realized loss reclassified to income statement ( 3,484 ) ( 3,736 ) ( 5,567 ) ( 10,578 ) Balance as of June 30, $ 1,946 $ 527 $ 5,017 $ 1,074 Realized Losses (Gains) 2024 2023 (In thousands) Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Three Months Ended June 30: Commodity derivative contracts $ 1,328 $ — $ 2,942 $ — FTRs 241 — ( 673 ) — Six Months Ended June 30: Commodity derivative contracts $ 3,754 $ 3,265 $ 10,387 $ 6,451 FTRs 201 — ( 693 ) — MGE's commodity derivative contracts and FTRs are subject to regulatory deferral. These derivatives are marked to fair value and are offset with a corresponding regulatory asset or liability. Realized gains and losses are deferred on the consolidated balance sheets and are recognized in earnings in the delivery month applicable to the instrument. As a result of the treatment described above, there are no unrealized gains or losses that flow through earnings. Certain counterparties extend MGE a credit limit. If MGE exceeds these limits, the counterparties may require collateral to be posted. As of June 30, 2024, and December 31, 2023 , no counterparties were in a net liability position. Nonperformance of counterparties to the non-exchange traded derivatives could expose MGE to credit loss. However, MGE enters into transactions only with companies that meet or exceed strict credit guidelines, and it monitors these counterparties on an ongoing basis to mitigate nonperformance risk in its portfolio. As of June 30, 2024 , no counterparties had defaulted. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Fin ancial Instruments - MGE Energy and MGE. Fair value is defined as the price that would be received to sell an asset or would be paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting standard clarifies that fair value should be based on the assumptions market participants would use when pricing the asset or liability including assumptions about risk. The standard also establishes a three-level fair value hierarchy based upon the observability of the assumptions used and requires the use of observable market data when available. The levels are: Level 1 - Pricing inputs are quoted prices within active markets for identical assets or liabilities. Level 2 - Pricing inputs are quoted prices within active markets for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations that are correlated with or otherwise verifiable by observable market data. Level 3 - Pricing inputs are unobservable and reflect management's best estimate of what market participants would use in pricing the asset or liability. a. Fair Value of Financial Assets and Liabilities Recorded at the Carrying Amount. The carrying amount of cash, cash equivalents, and outstanding commercial paper approximates fair market value due to the short maturity of those investments and obligations. The estimated fair market value of long-term debt is based on quoted market prices for similar financial instruments. Since long-term debt is not traded in an active market, it is classified as Level 2. The estimated fair market value of financial instruments are as follows: June 30, 2024 December 31, 2023 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt (a) $ 725,990 $ 658,486 $ 728,546 $ 675,922 (a) Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.3 million and $ 4.6 million as of June 30, 2024, and December 31, 2023 , respectively. b. Recurring Fair Value Measurements. The following table presents the balances of assets and liabilities measured at fair value on a recurring basis. Fair Value as of June 30, 2024 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 882 $ 783 $ — $ 99 Exchange-traded investments 67 67 — — Total Assets $ 949 $ 850 $ — $ 99 Liabilities: Derivatives, net (b) $ 2,828 $ 1,297 $ — $ 1,531 Deferred compensation 5,959 — 5,959 — Total Liabilities $ 8,787 $ 1,297 $ 5,959 $ 1,531 MGE Assets: Derivatives, net (b) $ 882 $ 783 $ — $ 99 Exchange-traded investments 67 67 — — Total Assets $ 949 $ 850 $ — $ 99 Liabilities: Derivatives, net (b) $ 2,828 $ 1,297 $ — $ 1,531 Deferred compensation 5,959 — 5,959 — Total Liabilities $ 8,787 $ 1,297 $ 5,959 $ 1,531 Fair Value as of December 31, 2023 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 598 $ 352 $ — $ 246 Exchange-traded investments 2,034 2,034 — — Total Assets $ 2,632 $ 2,386 $ — $ 246 Liabilities: Derivatives, net (b) $ 5,824 $ 2,974 $ — $ 2,850 Deferred compensation 5,246 — 5,246 — Total Liabilities $ 11,070 $ 2,974 $ 5,246 $ 2,850 MGE Assets: Derivatives, net (b) $ 598 $ 352 $ — $ 246 Exchange-traded investments 60 60 — — Total Assets $ 658 $ 412 $ — $ 246 Liabilities: Derivatives, net (b) $ 5,824 $ 2,974 $ — $ 2,850 Deferred compensation 5,246 — 5,246 — Total Liabilities $ 11,070 $ 2,974 $ 5,246 $ 2,850 (b) As of June 30, 2024, and December 31, 2023, collateral of $ 2.0 million and $ 5.4 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. E xchange-traded Investments. Investments include exchange-traded investment securities valued using quoted prices on active exchanges and are therefore classified as Level 1. Deferred Compensation. The deferred compensation plans allow participants to defer certain cash compensation into notional investment accounts. These amounts are included within "Other deferred liabilities and other" in the consolidated balance sheets. The value of certain deferred compensation obligations is based on the market value of the participants' notional investment accounts. The underlying notional investments are comprised primarily of equities, mutual funds, and fixed income securities which are based on directly and indirectly observable market prices. Since the deferred compensation obligations themselves are not exchanged in an active market, they are classified as Level 2. The value of legacy deferred compensation obligations are based on notional investments that earn interest based upon the semiannual rate of U.S. Treasury Bills having a 26 -week maturity increased by 1 % compounded monthly with a minimum annual rate of 7 %, compounded monthly. The notional investments are based upon observable market data, however, since the deferred compensation obligations themselves are not exchanged in an active market, they are classified as Level 2. Derivatives. Derivatives include exchange-traded derivative contracts, over-the-counter transactions and FTRs. Most exchange-traded derivative contracts are valued based on unadjusted quoted prices in active markets and are therefore classified as Level 1. A small number of exchange-traded derivative contracts are valued using quoted market pricing in markets with insufficient volumes and are therefore considered unobservable and classified as Level 3. Transactions done with an over-the-counter party are on inactive markets and are therefore classified as Level 3. These transactions are valued based on quoted prices from markets with similar exchange-traded transactions. FTRs are priced based upon monthly auction results for identical or similar instruments in a closed market with limited data available and are therefore classified as Level 3. The following table summarizes the changes in Level 3 commodity derivative assets and liabilities measured at fair value on a recurring basis. Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Beginning balance $ ( 1,726 ) $ ( 3,740 ) $ ( 2,604 ) $ ( 866 ) Realized and unrealized gains (losses): Included in regulatory assets 294 848 1,172 ( 2,026 ) Included in earnings ( 1,330 ) ( 903 ) ( 3,855 ) ( 5,574 ) Settlements 1,330 903 3,855 5,574 Balance as of June 30, $ ( 1,432 ) $ ( 2,892 ) $ ( 1,432 ) $ ( 2,892 ) The following table presents total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis (c) . Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Purchased power expense $ ( 1,330 ) $ ( 903 ) $ ( 3,855 ) $ ( 5,574 ) (c) MGE's exchange-traded derivative contracts, over-the-counter party transactions, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability. |
Joint Plant Ownership
Joint Plant Ownership | 6 Months Ended |
Jun. 30, 2024 | |
Public Utilities, Property, Plant and Equipment [Abstract] | |
Jointly Owned Electric Utility Plant | Joint Plant Constr uction Project Ownership - MGE Energy and MGE MGE has ownership interests in generation projects with other co-owners, some of which are under construction, as shown in the following table. Incurred costs are reflected in "Property, plant, and equipment, net" or "Construction work in progress" on the consolidated balance sheets. Project Ownership Interest Source Share of Share of Estimated (a) Costs incurred as (a) Estimated Date of Paris (b) 10 % Solar/Battery 20 MW/ 11 MW $ 61 million (d) $ 40.2 million 2024 Solar Darien (c) 10 % Solar 25 MW $ 48 million (d)(e) $ 37.6 million 2024 Koshkonong (f) 10 % Solar 30 MW $ 65 million (d)(e) $ 0.1 million 2026 West Riverside 3.5 % Natural Gas 25 MW $ 25 million $ 25.2 million (g) (a) Excluding AFUDC. (b) Paris Solar-Battery Park is located in the Town of Paris in Kenosha County, Wisconsin. (c) Darien Solar Energy Center is located in Walworth and Rock Counties in southern Wisconsin. (d) Estimated costs are expected to exceed PSCW previously approved Certificate of Authority (CA) levels. Notifications are provided to the PSCW when costs increase above CA levels. MGE has and will continue to request recovery of the updates in its rate case proceedings. (e) As part of its order, the PSCW approved battery capacity with this project, which is no longer included in the current estimate. We will continue to evaluate timing, cost, and feasibility of the installation of batteries. (f) Koshkonong Solar Energy Center is located in the Towns of Christiana and Deerfield in Dane County, Wisconsin. (g) In June 2024, MGE purchased an additional ownership interest in West Riverside, a natural gas-fired facility located in Beloit, WI, from WPL, operator and co-owner of the plant. West Riverside was placed in-service in 2020. MGE's interest in West Riverside increased to 6.9 %. MGE received specific approval to recover 100 % AFUDC on Paris, Darien, and Koshkonong. During the three and six months ended June 30, 2024, MGE recognized $ 1.5 million and $ 2.7 million, respectively, after tax, in AFUDC for these projects compared to $ 0.6 million and $ 1.0 million for the comparable periods in 2023 . |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Reven ue - MGE Energy and MGE. Revenues disaggregated by revenue source were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, Electric revenues 2024 2023 2024 2023 Residential $ 40,321 $ 40,324 $ 81,462 $ 81,544 Commercial 64,161 63,428 124,024 122,965 Industrial 3,445 3,577 6,855 6,863 Other-retail/municipal 10,403 10,243 20,093 19,862 Total retail 118,330 117,572 232,434 231,234 Sales to the market 1,519 3,554 2,595 6,312 Other 534 366 1,479 1,190 Total electric revenues 120,383 121,492 236,508 238,736 Gas revenues Residential 15,589 16,688 58,987 72,412 Commercial/Industrial 7,876 8,207 37,400 49,710 Total retail 23,465 24,895 96,387 122,122 Gas transportation 1,505 1,235 3,585 3,767 Other 146 161 313 364 Total gas revenues 25,116 26,291 100,285 126,253 Non-regulated energy revenues 214 215 256 262 Total Operating Revenue $ 145,713 $ 147,998 $ 337,049 $ 365,251 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Infor mation - MGE Energy and MGE. MGE Energy operates in the following business segments: electric utility, gas utility, nonregulated energy, transmission investment, and all other. See the 2023 Annual Report on Form 10-K for additional discussion of each of these segments. (In thousands) Electric Gas Non-Regulated Energy Transmission Investment All Others Consolidation/ Consolidated Total Three Months Ended June 30, 2024 Operating revenues $ 120,383 $ 25,116 $ 214 $ — $ — $ — $ 145,713 Interdepartmental revenues ( 55 ) 2,172 10,946 — — ( 13,063 ) — Total operating revenues 120,328 27,288 11,160 — — ( 13,063 ) 145,713 Equity in earnings of investments — — — 2,780 — — 2,780 Net income 15,661 50 6,043 2,022 18 — 23,794 Three Months Ended June 30, 2023 Operating revenues $ 121,492 $ 26,291 $ 215 $ — $ — $ — $ 147,998 Interdepartmental revenues 193 2,770 10,195 — — ( 13,158 ) — Total operating revenues 121,685 29,061 10,410 — — ( 13,158 ) 147,998 Equity in earnings of investments — — — 2,629 — — 2,629 Net income (loss) 21,556 581 5,470 1,914 ( 840 ) — 28,681 Six Months Ended June 30, 2024 Operating revenues $ 236,508 $ 100,285 $ 256 $ — $ — $ — $ 337,049 Interdepartmental revenues ( 109 ) 7,383 21,773 — — ( 29,047 ) — Total operating revenues 236,399 107,668 22,029 — — ( 29,047 ) 337,049 Equity in earnings of investments — — — 5,526 — — 5,526 Net income (loss) 31,424 10,664 11,866 4,018 ( 364 ) — 57,608 Six Months Ended June 30, 2023 Operating revenues $ 238,736 $ 126,253 $ 262 $ — $ — $ — $ 365,251 Interdepartmental revenues 141 9,431 20,745 — — ( 30,317 ) — Total operating revenues 238,877 135,684 21,007 — — ( 30,317 ) 365,251 Equity in earnings of investments — — — 5,240 — — 5,240 Net income (loss) 34,870 11,340 11,040 3,813 ( 1,304 ) — 59,759 (In thousands) Electric Gas Non-Regulated Energy Consolidation/ Consolidated Total Three Months Ended June 30, 2024 Operating revenues $ 120,383 $ 25,116 $ 214 $ — $ 145,713 Interdepartmental revenues ( 55 ) 2,172 10,946 ( 13,063 ) — Total operating revenues 120,328 27,288 11,160 ( 13,063 ) 145,713 Net income attributable to MGE 15,661 50 6,043 ( 5,766 ) 15,988 Three Months Ended June 30, 2023 Operating revenues $ 121,492 $ 26,291 $ 215 $ — $ 147,998 Interdepartmental revenues 193 2,770 10,195 ( 13,158 ) — Total operating revenues 121,685 29,061 10,410 ( 13,158 ) 147,998 Net income attributable to MGE 21,556 581 5,470 ( 5,375 ) 22,232 Six Months Ended June 30, 2024 Operating revenues $ 236,508 $ 100,285 $ 256 $ — $ 337,049 Interdepartmental revenues ( 109 ) 7,383 21,773 ( 29,047 ) — Total operating revenues 236,399 107,668 22,029 ( 29,047 ) 337,049 Net income attributable to MGE 31,424 10,664 11,866 ( 11,363 ) 42,591 Six Months Ended June 30, 2023 Operating revenues $ 238,736 $ 126,253 $ 262 $ — $ 365,251 Interdepartmental revenues 141 9,431 20,745 ( 30,317 ) — Total operating revenues 238,877 135,684 21,007 ( 30,317 ) 365,251 Net income attributable to MGE 34,870 11,340 11,040 ( 10,895 ) 46,355 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 23,794 | $ 28,681 | $ 57,608 | $ 59,759 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Variable Interest Entities | MGE Power Elm Road and MGE Power West Campus own electric generating assets and lease those assets to MGE. Both entities are variable interest entities (VIE) under applicable authoritative accounting guidance. MGE is considered the primary beneficiary of these entities as a result of contractual agreements. As a result, MGE has consolidated MGE Power Elm Road and MGE Power West Campus. |
Cash and Cash Equivalents | Cash Equivalents All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. |
Restricted Cash | Restricted Cash MGE has certain cash accounts that are restricted to uses other than current operations and designated for a specific purpose. MGE's restricted cash accounts include cash held by trustees for certain employee benefits and cash deposits held by third parties. These are included in "Other current assets" on the consolidated balance sheets. |
Receivable Margin Account | Receivable – Margin Account Cash amounts held by counterparties as margin collateral for certain financial transactions are recorded as Receivable – margin account in "Other current assets" on the consolidated balance sheets. The costs being hedged are fuel for electric generation, purchased power, and cost of gas sold. |
New Accounting Pronouncement Disclosure | In November 2023, the Financial Accounting Standards Board modified authoritative guidance within the codification's Segment Reporting topic, which enhanced the disclosure requirements for significant segment expenses and other segment items. The authoritative guidance will become effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. MGE will adopt the standard as of the effective date. The adoption of this standard will not have a material impact on MGE Energy's and MGE's financial statements. In December 2023, the Financial Accounting Standards Board issued authoritative guidance within the codification's Income Taxes topic, which expanded the disclosure requirements over effective tax rate reconciliations and income taxes paid. For public business entities, the authoritative guidance will become effective for fiscal years beginning after December 15, 2024. MGE will adopt the standard as of the effective date. The adoption of this standard will not have a material impact on MGE Energy's and MGE's financial statements. |
Investments - ATC and ATC Holdco | MGE Transco and MGEE Transco have accounted for their investments in ATC and ATC Holdco, respectively, under the equity method of accounting. |
Pension and Other Postretirement Benefit Plan Assets | MGE maintains qualified and nonqualified pension plans, health care, and life insurance benefits and defined contribution 401(k) benefit plans for its employees and retirees. The components of net periodic benefit cost, other than the service cost component, are recorded in " Other income, net " on the consolidated statements of income. The service cost component is recorded in "Other operations and maintenance" on the consolidated statements of income. MGE has regulatory treatment and recognizes regulatory assets or liabilities for timing differences between when net periodic benefit costs are recovered and when costs are recognized. |
Common Stock | MGE Energy sells shares of its common stock through its Direct Stock Purchase and Dividend Reinvestment Plan (the Stock Plan). Those shares may be newly issued shares or shares that are purchased in the open market by an independent agent for participants in the Stock Plan. Sales of newly issued shares under the Stock Plan are covered by a shelf registration statement that MGE Energy filed with the SEC. |
Wisconsin Fuel Rules | Fuel rules require Wisconsin utilities to defer electric fuel-related costs that fall outside a symmetrical cost tolerance band around the amount approved for a utility in its annual fuel proceedings. Any over- or under-recovery of the actual costs is determined in the following year and is then reflected in future billings to electric retail customers. The fuel rules bandwidth is set at plus or minus 2 % in 2024 and 2023. The electric fuel-related costs are subject to an excess revenues test. Excess revenues are defined as revenues in the year in question that provide MGE with a greater return on common equity than authorized by the PSCW in MGE's latest rate order. The recovery of under-collected electric fuel-related costs would be reduced by the amount that exceeds the excess revenue test. These costs are subject to the PSCW's annual review of fuel costs completed in the year following the deferral. |
Derivative Hedging | As part of its regular operations, MGE enters into contracts, including options, swaps, futures, forwards, and other contractual commitments, to manage its exposure to commodity prices. To the extent that these contracts are derivatives, MGE assesses whether or not the normal purchases or normal sales exclusion applies. For contracts to which this exclusion cannot be applied, the derivatives are recognized in the consolidated balance sheets at fair value. MGE's financial commodity derivative activities are conducted in accordance with its electric and gas risk management program, which is approved by the PSCW and limits the volume MGE can hedge with specific risk management strategies. The maximum length of time over which cash flows related to energy commodities can be hedged is four years . If the derivative qualifies for regulatory deferral, the derivatives are marked to fair value and are offset with a corresponding regulatory asset or liability depending on whether the derivative is in a net loss or net gain position, respectively. The deferred gain or loss is recognized in earnings in the delivery month applicable to the instrument. Gains and losses related to hedges qualifying for regulatory treatment are refundable or recoverable in gas rates through the Purchased Gas Adjustment (PGA) or in electric rates as a component of the fuel rules mechanism. |
Derivative Netting | All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, instruments are netted with the same counterparty under a master netting agreement as well as the netting of collateral. |
Recurring Fair Value Measurements | Fair value is defined as the price that would be received to sell an asset or would be paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting standard clarifies that fair value should be based on the assumptions market participants would use when pricing the asset or liability including assumptions about risk. The standard also establishes a three-level fair value hierarchy based upon the observability of the assumptions used and requires the use of observable market data when available. The levels are: Level 1 - Pricing inputs are quoted prices within active markets for identical assets or liabilities. Level 2 - Pricing inputs are quoted prices within active markets for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations that are correlated with or otherwise verifiable by observable market data. Level 3 - Pricing inputs are unobservable and reflect management's best estimate of what market participants would use in pricing the asset or liability. a. Fair Value of Financial Assets and Liabilities Recorded at the Carrying Amount. The carrying amount of cash, cash equivalents, and outstanding commercial paper approximates fair market value due to the short maturity of those investments and obligations. The estimated fair market value of long-term debt is based on quoted market prices for similar financial instruments. Since long-term debt is not traded in an active market, it is classified as Level 2. Investments include exchange-traded investment securities valued using quoted prices on active exchanges and are therefore classified as Level 1. Deferred Compensation. The deferred compensation plans allow participants to defer certain cash compensation into notional investment accounts. These amounts are included within "Other deferred liabilities and other" in the consolidated balance sheets. The value of certain deferred compensation obligations is based on the market value of the participants' notional investment accounts. The underlying notional investments are comprised primarily of equities, mutual funds, and fixed income securities which are based on directly and indirectly observable market prices. Since the deferred compensation obligations themselves are not exchanged in an active market, they are classified as Level 2. The value of legacy deferred compensation obligations are based on notional investments that earn interest based upon the semiannual rate of U.S. Treasury Bills having a 26 -week maturity increased by 1 % compounded monthly with a minimum annual rate of 7 %, compounded monthly. The notional investments are based upon observable market data, however, since the deferred compensation obligations themselves are not exchanged in an active market, they are classified as Level 2. Derivatives. Derivatives include exchange-traded derivative contracts, over-the-counter transactions and FTRs. Most exchange-traded derivative contracts are valued based on unadjusted quoted prices in active markets and are therefore classified as Level 1. A small number of exchange-traded derivative contracts are valued using quoted market pricing in markets with insufficient volumes and are therefore considered unobservable and classified as Level 3. Transactions done with an over-the-counter party are on inactive markets and are therefore classified as Level 3. These transactions are valued based on quoted prices from markets with similar exchange-traded transactions. FTRs are priced based upon monthly auction results for identical or similar instruments in a closed market with limited data available and are therefore classified as Level 3. |
Summary of Significant Accoun_2
Summary of Significant Accounting Principles (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Cash, Cash Equivalents, And Restricted Cash [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | The following table presents the components of total cash, cash equivalents, and restricted cash on the consolidated balance sheets. MGE Energy MGE June 30, December 31, June 30, December 31, (In thousands) 2024 2023 2024 2023 Cash and cash equivalents $ 16,270 $ 11,140 $ 3,867 $ 2,819 Restricted cash 792 858 792 858 Receivable - margin account 2,475 3,028 2,475 3,028 Cash, cash equivalents, and restricted cash $ 19,537 $ 15,026 $ 7,134 $ 6,705 |
Investment in ATC and ATC Hol_2
Investment in ATC and ATC Holdco (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments Financial Data | MGE Transco recorded the following amounts related to its investment in ATC: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Equity earnings from investment in ATC $ 2,748 $ 2,599 $ 5,470 $ 5,182 Dividends received from ATC 2,132 2,042 4,238 4,248 Capital contributions to ATC 1,070 1,601 1,785 1,958 ATC's summarized financial data is as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Operating revenues $ 218,222 $ 203,776 $ 430,150 $ 404,202 Operating expenses ( 109,197 ) ( 101,517 ) ( 214,039 ) ( 200,593 ) Other income, net 356 565 543 956 Interest expense, net ( 36,040 ) ( 33,504 ) ( 71,458 ) ( 66,414 ) Earnings before members' income taxes $ 73,341 $ 69,320 $ 145,196 $ 138,151 |
Taxes (Tables)
Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Effective Tax Rate Reconciliation | The consolidated income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before income taxes, as follows: MGE Energy MGE Three Months Ended June 30, 2024 2023 2024 2023 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.2 6.2 6.2 Amortized investment tax credits ( 2.4 ) ( 0.7 ) ( 2.6 ) ( 0.7 ) Credit for electricity from renewable energy ( 11.7 ) ( 5.2 ) ( 12.9 ) ( 5.6 ) AFUDC equity, net ( 0.7 ) ( 0.4 ) ( 0.7 ) ( 0.4 ) Amortization of utility excess deferred tax - tax reform (a) ( 6.8 ) ( 1.6 ) ( 7.5 ) ( 1.7 ) Other, net, individually insignificant 0.2 0.1 0.1 0.1 Effective income tax rate 5.8 % 19.4 % 3.6 % 18.9 % MGE Energy MGE Six Months Ended June 30, 2024 2023 2024 2023 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.2 6.2 6.2 Amortized investment tax credits ( 2.3 ) ( 0.7 ) ( 2.5 ) ( 0.7 ) Credit for electricity from renewable energy ( 10.8 ) ( 5.6 ) ( 11.9 ) ( 6.1 ) AFUDC equity, net ( 0.7 ) ( 0.4 ) ( 0.7 ) ( 0.5 ) Amortization of utility excess deferred tax - tax reform (a) ( 6.4 ) ( 1.7 ) ( 7.0 ) ( 1.8 ) Other, net, individually insignificant ( 0.1 ) ( 0.1 ) ( 0.2 ) ( 0.1 ) Effective income tax rate 6.9 % 18.7 % 4.9 % 18.0 % (a) Included are impacts of the Tax Cut and Jobs Act of 2017 for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For both the three months ended June 30, 2024 and 2023, MGE recognized $ 0.9 million. For both the six months ended June 30, 2024 and 2023, MGE recognized $ 1.8 million. For the three and six months ended June 30, 2024, MGE recognized $ 1.0 million and $ 2.1 million, respectively, of deferred taxes not restricted by IRS normalization rules, compared to a net collection from customers of $ 0.4 million and $ 0.7 milli on for the three and six months ended June 30, 2023 . |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The following table presents the components of net periodic benefit costs recognized. Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Pension Benefits Components of net periodic benefit cost: Service cost $ 780 $ 694 $ 1,539 $ 1,446 Interest cost 4,315 4,337 8,559 8,659 Expected return on assets ( 7,148 ) ( 6,302 ) ( 14,299 ) ( 12,624 ) Amortization of: Actuarial loss 313 492 429 880 Net periodic benefit (credit) cost $ ( 1,740 ) $ ( 779 ) $ ( 3,772 ) $ ( 1,639 ) Postretirement Benefits Components of net periodic benefit cost: Service cost $ 217 $ 190 $ 428 $ 390 Interest cost 779 835 1,576 1,654 Expected return on assets ( 693 ) ( 646 ) ( 1,384 ) ( 1,297 ) Amortization of: Transition obligation — — 1 1 Prior service credit ( 4 ) — ( 8 ) — Actuarial (gain) loss ( 129 ) ( 65 ) ( 206 ) ( 95 ) Net periodic benefit (credit) cost $ 170 $ 314 $ 407 $ 653 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | The following table shows future commitments related to purchase contracts as of June 30, 2024: (In thousands) 2024 2025 2026 2027 2028 Thereafter Natural gas (a) $ 22,421 $ 40,762 $ 15,492 $ 2,546 $ 2,546 $ 11,224 (a) MGE's natural gas transportation and storage contracts require fixed monthly payments for firm supply pipeline transportation and storage capacity. The pricing components of the fixed monthly payments for the transportation and storage contracts are approved by FERC but may be subject to change. MGE's natural gas supply commitments include market-based pricing. |
Rate Matters (Tables)
Rate Matters (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Regulated Operations [Abstract] | |
Rate Proceedings | Rate increase Return on Common Equity Common Equity Component of Regulatory Capital Structure Effective Date Approved 2022/2023 settlement Gas 0.96 % 9.8 % 55.6 % 1/1/2023 Approved limited 2023 reopener (a) Electric 9.01 % 9.8 % 55.6 % 1/1/2023 Approved 2024/2025 rate proceeding (b)(c) Electric 1.54 % 9.7 % 56.1 % 1/1/2024 Gas 2.44 % 9.7 % 56.1 % 1/1/2024 Electric (d) 4.17 % 9.7 % 56.1 % 1/1/2025 Gas 1.32 % 9.7 % 56.1 % 1/1/2025 (a) The electric rate increase was driven by generation assets including our investments in Badger Hollow II (solar), Paris (solar and battery), Red Barn Wind Farm (wind), and West Riverside (natural gas). In addition, the reopener request included an increase in fuel costs and the recovery of deferred 2021 fuel costs. The reopener also revised the depreciation schedule for Columbia Unit 2 and shared equipment to 2029 to align with the depreciation schedule for Unit 1. (b) The electric increase was driven by an increase in rate base including our investments made in West Riverside, local solar, and continued investment in grid modernization, as well as higher costs for transmission, pension and OPEB, and uncollectible costs (including costs previously deferred from prior years). This increase in electric costs is offset by a decrease in fuel costs and benefit from lower tax expense (including impacts from the Inflation Reduction Act). MGE filed an updated 2025 fuel forecast with the PSCW in 2024, which will impact rates in 2025, based on any variance between the forecast submitted as part of the rates and updated forecast. In addition, the PSCW authorized MGE to defer a recovery of and a return on costs associated for any change in the in service date for Paris and Darien and force majeure costs for Badger Hollow II, Paris, and Darien that were not reflected in this rate filing. The PSCW also approved deferral of any differential in PTC tax credits reflected in rates and actual credits produced. These deferrals will be reflected in MGE's next rate case filing. The gas rate increases were also driven by our investment made in grid modernization and higher pension and OPEB and uncollectible costs (including costs previously deferred from prior years). This increase in gas costs is offset by a tax benefit related to excess deferred taxes. Included in the gas residential rate is a reduction in the customer fixed charge. (c) In accordance with the 2024/2025 rate order from the PSCW, MGE will have an earnings sharing mechanism, under which, if MGE earns above the authorized Return on Equity (ROE) in the rate order: (i) the utility will retain 100.0% of earnings for the first 15 basis points above the authorized ROE; (ii) 50.0% of the next 60 basis points will be required to be deferred and returned to ratepayers; and (iii) 100.0% of any remaining excess earnings will be required to be refunded to ratepayers. The earnings calculation excludes fuel rules adjustments. See "Fuel Rules" below. (d) MGE filed a 2025 Fuel Cost Plan with the PSCW in June 2024. The plan would lower the 2025 increase in electric rates to 2.47 % to reflect lower expected fuel costs. MGE expects a final decision from the PSCW on the Fuel Cost Plan by the end of 2024. |
Deferred Fuel Rules | The following table summarizes deferred electric fuel-related costs: Fuel Costs (Savings) ( in millions ) Refund or Recovery Period 2021 $ 3.3 (a) January 2023 through December 2023 2022 $ 8.8 (a) October 2023 through September 2024 2023 ($ 7.2 ) (a) October 2024 through December 2024 (a) There was no change to the refund or recovery in the fuel rules proceedings from the amount MGE deferred . |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gross Notional Volume of Open Derivatives | The gross notional volume of open derivatives is as follows: June 30, 2024 December 31, 2023 Commodity derivative contracts 300,240 MWh 392,000 MWh Commodity derivative contracts 6,090,000 Dth 7,180,000 Dth FTRs 4,606 MW 1,824 MW |
Fair Value of Derivative Instruments on the Balance Sheet | The following table summarizes the fair value of the derivative instruments on the consolidated balance sheets. All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, instruments are netted with the same counterparty under a master netting agreement as well as the netting of collateral. Derivative Derivative (In thousands) Assets Liabilities Balance Sheet Location June 30, 2024 Commodity derivative contracts (a) $ 825 $ 2,524 Other current liabilities Commodity derivative contracts (a) 24 304 Other deferred liabilities and other FTRs 33 — Other current assets December 31, 2023 Commodity derivative contracts (a) $ 263 $ 4,942 Other current liabilities Commodity derivative contracts (a) 156 882 Other deferred liabilities and other FTRs 179 — Other current assets (a) As of June 30, 2024, and December 31, 2023, collateral of $ 2.0 million and $ 5.4 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. |
Offsetting Assets | The following table shows the effect of netting arrangements for recognized derivative assets and liabilities that are subject to a master netting arrangement or similar arrangement on the consolidated balance sheets. Offsetting of Derivative Assets and Liabilities (In thousands) Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets June 30, 2024 Assets Commodity derivative contracts $ 849 $ ( 849 ) $ — $ — FTRs 33 — — 33 Liabilities Commodity derivative contracts 2,828 ( 849 ) ( 1,979 ) — December 31, 2023 Assets Commodity derivative contracts $ 419 $ ( 419 ) $ — $ — FTRs 179 — — 179 Liabilities Commodity derivative contracts 5,824 ( 419 ) ( 5,405 ) — |
Offsetting Liabilities | The following table shows the effect of netting arrangements for recognized derivative assets and liabilities that are subject to a master netting arrangement or similar arrangement on the consolidated balance sheets. Offsetting of Derivative Assets and Liabilities (In thousands) Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets June 30, 2024 Assets Commodity derivative contracts $ 849 $ ( 849 ) $ — $ — FTRs 33 — — 33 Liabilities Commodity derivative contracts 2,828 ( 849 ) ( 1,979 ) — December 31, 2023 Assets Commodity derivative contracts $ 419 $ ( 419 ) $ — $ — FTRs 179 — — 179 Liabilities Commodity derivative contracts 5,824 ( 419 ) ( 5,405 ) — |
Derivative Gains and Losses in Balance Sheet | The following tables summarize the unrealized and realized gains/losses related to the derivative instruments on the consolidated balance sheets and the consolidated statements of income. 2024 2023 (In thousands) Current and Long-Term Regulatory Asset (Liability) Other Current Assets Current and Long-Term Regulatory Asset (Liability) Other Current Assets Three Months Ended June 30: Balance as of April 1, $ 3,009 $ 275 $ 7,813 $ 455 Unrealized loss 758 — 92 — Realized (loss) gain reclassified to a deferred account ( 537 ) 537 ( 1,988 ) 1,988 Realized loss reclassified to income statement ( 1,284 ) ( 285 ) ( 900 ) ( 1,369 ) Balance as of June 30, $ 1,946 $ 527 $ 5,017 $ 1,074 Six Months Ended June 30: Balance as of January 1, $ 5,226 $ 1,569 $ 5,094 $ 2,747 Unrealized loss 2,898 — 14,395 — Realized (loss) gain reclassified to a deferred account ( 2,694 ) 2,694 ( 8,905 ) 8,905 Realized loss reclassified to income statement ( 3,484 ) ( 3,736 ) ( 5,567 ) ( 10,578 ) Balance as of June 30, $ 1,946 $ 527 $ 5,017 $ 1,074 |
Derivative Gains and Losses in Income Statement | Realized Losses (Gains) 2024 2023 (In thousands) Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Three Months Ended June 30: Commodity derivative contracts $ 1,328 $ — $ 2,942 $ — FTRs 241 — ( 673 ) — Six Months Ended June 30: Commodity derivative contracts $ 3,754 $ 3,265 $ 10,387 $ 6,451 FTRs 201 — ( 693 ) — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Market Value of Financial Instruments | The estimated fair market value of financial instruments are as follows: June 30, 2024 December 31, 2023 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt (a) $ 725,990 $ 658,486 $ 728,546 $ 675,922 (a) Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.3 million and $ 4.6 million as of June 30, 2024, and December 31, 2023 , respectively. |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis. Fair Value as of June 30, 2024 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 882 $ 783 $ — $ 99 Exchange-traded investments 67 67 — — Total Assets $ 949 $ 850 $ — $ 99 Liabilities: Derivatives, net (b) $ 2,828 $ 1,297 $ — $ 1,531 Deferred compensation 5,959 — 5,959 — Total Liabilities $ 8,787 $ 1,297 $ 5,959 $ 1,531 MGE Assets: Derivatives, net (b) $ 882 $ 783 $ — $ 99 Exchange-traded investments 67 67 — — Total Assets $ 949 $ 850 $ — $ 99 Liabilities: Derivatives, net (b) $ 2,828 $ 1,297 $ — $ 1,531 Deferred compensation 5,959 — 5,959 — Total Liabilities $ 8,787 $ 1,297 $ 5,959 $ 1,531 Fair Value as of December 31, 2023 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 598 $ 352 $ — $ 246 Exchange-traded investments 2,034 2,034 — — Total Assets $ 2,632 $ 2,386 $ — $ 246 Liabilities: Derivatives, net (b) $ 5,824 $ 2,974 $ — $ 2,850 Deferred compensation 5,246 — 5,246 — Total Liabilities $ 11,070 $ 2,974 $ 5,246 $ 2,850 MGE Assets: Derivatives, net (b) $ 598 $ 352 $ — $ 246 Exchange-traded investments 60 60 — — Total Assets $ 658 $ 412 $ — $ 246 Liabilities: Derivatives, net (b) $ 5,824 $ 2,974 $ — $ 2,850 Deferred compensation 5,246 — 5,246 — Total Liabilities $ 11,070 $ 2,974 $ 5,246 $ 2,850 (b) As of June 30, 2024, and December 31, 2023, collateral of $ 2.0 million and $ 5.4 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes the changes in Level 3 commodity derivative assets and liabilities measured at fair value on a recurring basis. Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Beginning balance $ ( 1,726 ) $ ( 3,740 ) $ ( 2,604 ) $ ( 866 ) Realized and unrealized gains (losses): Included in regulatory assets 294 848 1,172 ( 2,026 ) Included in earnings ( 1,330 ) ( 903 ) ( 3,855 ) ( 5,574 ) Settlements 1,330 903 3,855 5,574 Balance as of June 30, $ ( 1,432 ) $ ( 2,892 ) $ ( 1,432 ) $ ( 2,892 ) |
Gains and Losses Included in Income for Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis (c) . Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Purchased power expense $ ( 1,330 ) $ ( 903 ) $ ( 3,855 ) $ ( 5,574 ) (c) MGE's exchange-traded derivative contracts, over-the-counter party transactions, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability. |
Joint Plant (Tables)
Joint Plant (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Public Utilities, Property, Plant and Equipment [Abstract] | |
Schedule of Jointly Owned Utility Plants | MGE has ownership interests in generation projects with other co-owners, some of which are under construction, as shown in the following table. Incurred costs are reflected in "Property, plant, and equipment, net" or "Construction work in progress" on the consolidated balance sheets. Project Ownership Interest Source Share of Share of Estimated (a) Costs incurred as (a) Estimated Date of Paris (b) 10 % Solar/Battery 20 MW/ 11 MW $ 61 million (d) $ 40.2 million 2024 Solar Darien (c) 10 % Solar 25 MW $ 48 million (d)(e) $ 37.6 million 2024 Koshkonong (f) 10 % Solar 30 MW $ 65 million (d)(e) $ 0.1 million 2026 West Riverside 3.5 % Natural Gas 25 MW $ 25 million $ 25.2 million (g) (a) Excluding AFUDC. (b) Paris Solar-Battery Park is located in the Town of Paris in Kenosha County, Wisconsin. (c) Darien Solar Energy Center is located in Walworth and Rock Counties in southern Wisconsin. (d) Estimated costs are expected to exceed PSCW previously approved Certificate of Authority (CA) levels. Notifications are provided to the PSCW when costs increase above CA levels. MGE has and will continue to request recovery of the updates in its rate case proceedings. (e) As part of its order, the PSCW approved battery capacity with this project, which is no longer included in the current estimate. We will continue to evaluate timing, cost, and feasibility of the installation of batteries. (f) Koshkonong Solar Energy Center is located in the Towns of Christiana and Deerfield in Dane County, Wisconsin. (g) In June 2024, MGE purchased an additional ownership interest in West Riverside, a natural gas-fired facility located in Beloit, WI, from WPL, operator and co-owner of the plant. West Riverside was placed in-service in 2020. MGE's interest in West Riverside increased to 6.9 %. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenues disaggregated by revenue source were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, Electric revenues 2024 2023 2024 2023 Residential $ 40,321 $ 40,324 $ 81,462 $ 81,544 Commercial 64,161 63,428 124,024 122,965 Industrial 3,445 3,577 6,855 6,863 Other-retail/municipal 10,403 10,243 20,093 19,862 Total retail 118,330 117,572 232,434 231,234 Sales to the market 1,519 3,554 2,595 6,312 Other 534 366 1,479 1,190 Total electric revenues 120,383 121,492 236,508 238,736 Gas revenues Residential 15,589 16,688 58,987 72,412 Commercial/Industrial 7,876 8,207 37,400 49,710 Total retail 23,465 24,895 96,387 122,122 Gas transportation 1,505 1,235 3,585 3,767 Other 146 161 313 364 Total gas revenues 25,116 26,291 100,285 126,253 Non-regulated energy revenues 214 215 256 262 Total Operating Revenue $ 145,713 $ 147,998 $ 337,049 $ 365,251 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | MGE Energy operates in the following business segments: electric utility, gas utility, nonregulated energy, transmission investment, and all other. See the 2023 Annual Report on Form 10-K for additional discussion of each of these segments. (In thousands) Electric Gas Non-Regulated Energy Transmission Investment All Others Consolidation/ Consolidated Total Three Months Ended June 30, 2024 Operating revenues $ 120,383 $ 25,116 $ 214 $ — $ — $ — $ 145,713 Interdepartmental revenues ( 55 ) 2,172 10,946 — — ( 13,063 ) — Total operating revenues 120,328 27,288 11,160 — — ( 13,063 ) 145,713 Equity in earnings of investments — — — 2,780 — — 2,780 Net income 15,661 50 6,043 2,022 18 — 23,794 Three Months Ended June 30, 2023 Operating revenues $ 121,492 $ 26,291 $ 215 $ — $ — $ — $ 147,998 Interdepartmental revenues 193 2,770 10,195 — — ( 13,158 ) — Total operating revenues 121,685 29,061 10,410 — — ( 13,158 ) 147,998 Equity in earnings of investments — — — 2,629 — — 2,629 Net income (loss) 21,556 581 5,470 1,914 ( 840 ) — 28,681 Six Months Ended June 30, 2024 Operating revenues $ 236,508 $ 100,285 $ 256 $ — $ — $ — $ 337,049 Interdepartmental revenues ( 109 ) 7,383 21,773 — — ( 29,047 ) — Total operating revenues 236,399 107,668 22,029 — — ( 29,047 ) 337,049 Equity in earnings of investments — — — 5,526 — — 5,526 Net income (loss) 31,424 10,664 11,866 4,018 ( 364 ) — 57,608 Six Months Ended June 30, 2023 Operating revenues $ 238,736 $ 126,253 $ 262 $ — $ — $ — $ 365,251 Interdepartmental revenues 141 9,431 20,745 — — ( 30,317 ) — Total operating revenues 238,877 135,684 21,007 — — ( 30,317 ) 365,251 Equity in earnings of investments — — — 5,240 — — 5,240 Net income (loss) 34,870 11,340 11,040 3,813 ( 1,304 ) — 59,759 (In thousands) Electric Gas Non-Regulated Energy Consolidation/ Consolidated Total Three Months Ended June 30, 2024 Operating revenues $ 120,383 $ 25,116 $ 214 $ — $ 145,713 Interdepartmental revenues ( 55 ) 2,172 10,946 ( 13,063 ) — Total operating revenues 120,328 27,288 11,160 ( 13,063 ) 145,713 Net income attributable to MGE 15,661 50 6,043 ( 5,766 ) 15,988 Three Months Ended June 30, 2023 Operating revenues $ 121,492 $ 26,291 $ 215 $ — $ 147,998 Interdepartmental revenues 193 2,770 10,195 ( 13,158 ) — Total operating revenues 121,685 29,061 10,410 ( 13,158 ) 147,998 Net income attributable to MGE 21,556 581 5,470 ( 5,375 ) 22,232 Six Months Ended June 30, 2024 Operating revenues $ 236,508 $ 100,285 $ 256 $ — $ 337,049 Interdepartmental revenues ( 109 ) 7,383 21,773 ( 29,047 ) — Total operating revenues 236,399 107,668 22,029 ( 29,047 ) 337,049 Net income attributable to MGE 31,424 10,664 11,866 ( 11,363 ) 42,591 Six Months Ended June 30, 2023 Operating revenues $ 238,736 $ 126,253 $ 262 $ — $ 365,251 Interdepartmental revenues 141 9,431 20,745 ( 30,317 ) — Total operating revenues 238,877 135,684 21,007 ( 30,317 ) 365,251 Net income attributable to MGE 34,870 11,340 11,040 ( 10,895 ) 46,355 |
Summary of Significant Accoun_3
Summary of Significant Accounting Principles (Details-1) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Cash Cash Equivalents And Restricted Cash [Line Items] | ||||
Cash and cash equivalents | $ 16,270 | $ 11,140 | ||
Restricted cash | 792 | 858 | ||
Receivable - margin account | 2,475 | 3,028 | ||
Cash, cash equivalents, and restricted cash | 19,537 | 15,026 | $ 21,257 | $ 17,968 |
MGE [Member] | ||||
Cash Cash Equivalents And Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 3,867 | 2,819 | ||
Restricted cash | 792 | 858 | ||
Receivable - margin account | 2,475 | 3,028 | ||
Cash, cash equivalents, and restricted cash | $ 7,134 | $ 6,705 | $ 13,324 | $ 10,500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Principles (Details-2) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Columbia Units [Member] | |
Impairment of Long-Lived Assets | |
Impairment of long-lived assets | $ 0 |
Investment in ATC and ATC Hol_3
Investment in ATC and ATC Holdco (Details-1) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity earnings from investment | $ 5,526 | $ 5,240 | |||
Dividends from investments | 4,238 | 4,248 | |||
Capital contributions to investments | 3,159 | 3,376 | |||
MGE Transco [Member] | ATC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity earnings from investment | $ 2,748 | $ 2,599 | 5,470 | 5,182 | |
Dividends from investments | 2,132 | 2,042 | 4,238 | 4,248 | |
Capital contributions to investments | $ 1,070 | $ 1,601 | $ 1,785 | $ 1,958 | |
MGE Transco [Member] | ATC [Member] | Subsequent Event [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Capital contributions to investments | $ 900 |
Investment in ATC and ATC Hol_4
Investment in ATC and ATC Holdco (Details-2) - ATC [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||
Operating revenues | $ 218,222 | $ 203,776 | $ 430,150 | $ 404,202 |
Operating expenses | (109,197) | (101,517) | (214,039) | (200,593) |
Other income, net | 356 | 565 | 543 | 956 |
Interest expense, net | (36,040) | (33,504) | (71,458) | (66,414) |
Earnings before members' income taxes | $ 73,341 | $ 69,320 | $ 145,196 | $ 138,151 |
Investment in ATC and ATC Hol_5
Investment in ATC and ATC Holdco (Details-3) - ATC [Member] - Affiliated Entity [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Receivables [Abstract] | |||||
Other Receivables | $ 2.1 | $ 2.1 | $ 5.3 | ||
Operating Costs and Expenses [Abstract] | |||||
Operating Costs and Expenses, Total | $ 9.1 | $ 8.5 | $ 18.2 | $ 16.9 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||
Statutory federal income tax rate | 21% | 21% | 21% | 21% | |
State income taxes, net of federal benefit | 6.20% | 6.20% | 6.20% | 6.20% | |
Amortized investment tax credits | (2.40%) | (0.70%) | (2.30%) | (0.70%) | |
Credit for electricity from renewable energy | (11.70%) | (5.20%) | (10.80%) | (5.60%) | |
AFUDC equity, net | (0.70%) | (0.40%) | (0.70%) | (0.40%) | |
Amortization of utility excess deferred tax - tax reform | [1] | (6.80%) | (1.60%) | (6.40%) | (1.70%) |
Other, net, individually significant | 0.20% | 0.10% | (0.10%) | (0.10%) | |
Effective income tax rate | 5.80% | 19.40% | 6.90% | 18.70% | |
Excess Deferred Taxes, Tax Cuts And Jobs Act [Member] | |||||
Effects Of The Tax Cuts And Jobs Act [Abstract] | |||||
Excess deferred tax - Income statement effect | $ 0.9 | $ 0.9 | $ 1.8 | $ 1.8 | |
Return of unprotected excess deferred taxes | $ 1 | $ 2.1 | |||
Deficient Deferred Taxes, Tax Cuts And Jobs Act [Member] | |||||
Effects Of The Tax Cuts And Jobs Act [Abstract] | |||||
Collection of unprotected deficient deferred taxes | $ 0.4 | $ 0.7 | |||
MGE [Member] | |||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||
Statutory federal income tax rate | 21% | 21% | 21% | 21% | |
State income taxes, net of federal benefit | 6.20% | 6.20% | 6.20% | 6.20% | |
Amortized investment tax credits | (2.60%) | (0.70%) | (2.50%) | (0.70%) | |
Credit for electricity from renewable energy | (12.90%) | (5.60%) | (11.90%) | (6.10%) | |
AFUDC equity, net | (0.70%) | (0.40%) | (0.70%) | (0.50%) | |
Amortization of utility excess deferred tax - tax reform | [1] | (7.50%) | (1.70%) | (7.00%) | (1.80%) |
Other, net, individually significant | 0.10% | 0.10% | (0.20%) | (0.10%) | |
Effective income tax rate | 3.60% | 18.90% | 4.90% | 18% | |
[1] Included are impacts of the Tax Cut and Jobs Act of 2017 for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For both the three months ended June 30, 2024 and 2023, MGE recognized $ 0.9 million. For both the six months ended June 30, 2024 and 2023, MGE recognized $ 1.8 million. For the three and six months ended June 30, 2024, MGE recognized $ 1.0 million and $ 2.1 million, respectively, of deferred taxes not restricted by IRS normalization rules, compared to a net collection from customers of $ 0.4 million and $ 0.7 milli on for the three and six months ended June 30, 2023 . |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Deferred Pension And Other Postretirement Benefit Plan Costs Recovered [Abstract] | ||||
Deferred (recognized) pension and OPEB costs | $ (1,200) | $ 400 | $ (2,600) | $ 800 |
Amortization of: | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | |||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | |||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | |||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Transition Asset (Obligation), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | |||
Pension Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 780 | 694 | $ 1,539 | 1,446 |
Interest cost | 4,315 | 4,337 | 8,559 | 8,659 |
Expected return on assets | (7,148) | (6,302) | (14,299) | (12,624) |
Amortization of: | ||||
Actuarial (gain) loss | 313 | 492 | 429 | 880 |
Net periodic benefit (credit) cost | (1,740) | (779) | (3,772) | (1,639) |
Postretirement Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 217 | 190 | 428 | 390 |
Interest cost | 779 | 835 | 1,576 | 1,654 |
Expected return on assets | (693) | (646) | (1,384) | (1,297) |
Amortization of: | ||||
Transition obligation | 0 | 0 | 1 | 1 |
Prior service credit | (4) | 0 | (8) | 0 |
Actuarial (gain) loss | (129) | (65) | (206) | (95) |
Net periodic benefit (credit) cost | $ 170 | $ 314 | $ 407 | $ 653 |
Equity and Financing Arrangem_2
Equity and Financing Arrangements (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Common Stock [Abstract] | ||||
Common stock issued during period under the stock plan | 0 | 0 | 0 | 0 |
Dilutive Shares Calculation [Abstract] | ||||
Shares included in diluted earnings per share | 22,937 |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 01, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Compensation expense | $ 0.7 | $ 0.7 | $ 1.9 | $ 1.8 | ||
2021 Long Term Incentive Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Equity-based compensation plans and other - Shares | 12,518 | |||||
2021 Long Term Incentive Plan [Member] | Performance Shares [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 16,414 | |||||
2021 Long Term Incentive Plan [Member] | Restricted Units [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 29,733 | |||||
2006 Performance Unit Plan and 2021 Long Term Incentive Plan | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Cash payments distributed related to awards previously granted and now payable | $ 2.5 |
Commitments and Contingencies_2
Commitments and Contingencies (Details-1) $ in Millions | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Columbia Environmental Project, CCR [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Asset Retirement Obligation, Liabilities Incurred | $ 23.7 |
Commitments and Contingencies_3
Commitments and Contingencies (Details-2) - Natural Gas [Member] $ in Thousands | Jun. 30, 2024 USD ($) | [1] |
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2024 | $ 22,421 | |
Purchase obligation, 2025 | 40,762 | |
Purchase obligation, 2026 | 15,492 | |
Purchase obligation, 2027 | 2,546 | |
Purchase obligation, 2028 | 2,546 | |
Purchase obligation, Thereafter | $ 11,224 | |
[1] MGE's natural gas transportation and storage contracts require fixed monthly payments for firm supply pipeline transportation and storage capacity. The pricing components of the fixed monthly payments for the transportation and storage contracts are approved by FERC but may be subject to change. MGE's natural gas supply commitments include market-based pricing. |
Rate Matters (Details)
Rate Matters (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2024 | Dec. 31, 2025 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Fuel Rules [Abstract] | ||||||||
Deferred fuel rules monitored costs | [1] | $ 7.2 | $ (8.8) | $ (3.3) | ||||
Electric Rate Proceeding [Member] | PSCW [Member] | MGE [Member] | ||||||||
Rate Proceedings [Abstract] | ||||||||
Authorized rate increase (decrease), percentage | 1.54% | [2],[3] | 9.01% | [4] | ||||
Authorized return on equity, percentage | 9.70% | 9.80% | ||||||
Approved equity capital structure, percentage | 56.10% | 55.60% | ||||||
Fuel Rules [Abstract] | ||||||||
Fuel rules, bandwidth | 2% | 2% | ||||||
Electric Rate Proceeding [Member] | PSCW [Member] | Rate Matters For Future Periods [Member] | MGE [Member] | ||||||||
Rate Proceedings [Abstract] | ||||||||
Proposed rate increase (decrease), percentage | 2.47% | |||||||
Authorized rate increase (decrease), percentage | [2],[3],[5] | 4.17% | ||||||
Authorized return on equity, percentage | 9.70% | |||||||
Approved equity capital structure, percentage | 56.10% | |||||||
Gas Rate Proceeding [Member] | PSCW [Member] | MGE [Member] | ||||||||
Rate Proceedings [Abstract] | ||||||||
Authorized rate increase (decrease), percentage | 2.44% | [2],[3] | 0.96% | |||||
Authorized return on equity, percentage | 9.70% | 9.80% | ||||||
Approved equity capital structure, percentage | 56.10% | 55.60% | ||||||
Gas Rate Proceeding [Member] | PSCW [Member] | Rate Matters For Future Periods [Member] | MGE [Member] | ||||||||
Rate Proceedings [Abstract] | ||||||||
Authorized rate increase (decrease), percentage | [2],[3] | 1.32% | ||||||
Authorized return on equity, percentage | 9.70% | |||||||
Approved equity capital structure, percentage | 56.10% | |||||||
[1] There was no change to the refund or recovery in the fuel rules proceedings from the amount MGE deferred . In accordance with the 2024/2025 rate order from the PSCW, MGE will have an earnings sharing mechanism, under which, if MGE earns above the authorized Return on Equity (ROE) in the rate order: (i) the utility will retain 100.0% of earnings for the first 15 basis points above the authorized ROE; (ii) 50.0% of the next 60 basis points will be required to be deferred and returned to ratepayers; and (iii) 100.0% of any remaining excess earnings will be required to be refunded to ratepayers. The earnings calculation excludes fuel rules adjustments. See "Fuel Rules" below. The electric increase was driven by an increase in rate base including our investments made in West Riverside, local solar, and continued investment in grid modernization, as well as higher costs for transmission, pension and OPEB, and uncollectible costs (including costs previously deferred from prior years). This increase in electric costs is offset by a decrease in fuel costs and benefit from lower tax expense (including impacts from the Inflation Reduction Act). MGE filed an updated 2025 fuel forecast with the PSCW in 2024, which will impact rates in 2025, based on any variance between the forecast submitted as part of the rates and updated forecast. In addition, the PSCW authorized MGE to defer a recovery of and a return on costs associated for any change in the in service date for Paris and Darien and force majeure costs for Badger Hollow II, Paris, and Darien that were not reflected in this rate filing. The PSCW also approved deferral of any differential in PTC tax credits reflected in rates and actual credits produced. These deferrals will be reflected in MGE's next rate case filing. The gas rate increases were also driven by our investment made in grid modernization and higher pension and OPEB and uncollectible costs (including costs previously deferred from prior years). This increase in gas costs is offset by a tax benefit related to excess deferred taxes. Included in the gas residential rate is a reduction in the customer fixed charge. The electric rate increase was driven by generation assets including our investments in Badger Hollow II (solar), Paris (solar and battery), Red Barn Wind Farm (wind), and West Riverside (natural gas). In addition, the reopener request included an increase in fuel costs and the recovery of deferred 2021 fuel costs. The reopener also revised the depreciation schedule for Columbia Unit 2 and shared equipment to 2029 to align with the depreciation schedule for Unit 1. MGE filed a 2025 Fuel Cost Plan with the PSCW in June 2024. The plan would lower the 2025 increase in electric rates to 2.47 % to reflect lower expected fuel costs. MGE expects a final decision from the PSCW on the Fuel Cost Plan by the end of 2024. |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments (Details-1) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2024 USD ($) Dth1 MWh MW | Dec. 31, 2023 USD ($) Dth1 MWh MW | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||
Derivative fair values [Abstract] | |||||||
Derivative, right to reclaim collateral | $ 2,000 | $ 5,400 | |||||
Other Current Assets [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative, Fair Value, Net | 527 | 1,569 | $ 275 | $ 1,074 | $ 455 | $ 2,747 | |
Commodity Contracts And Financial Transimission Rights [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative, Fair Value, Net | $ (1,900) | $ (5,200) | |||||
Commodity Contract [Member] | |||||||
Gross Notional Volume of Open Derivatives [Abstract] | |||||||
Notional amount, energy measures (in MWh) | MWh | 300,240 | 392,000 | |||||
Notional amount, decatherm measure (in Dth) | Dth1 | 6,090,000 | 7,180,000 | |||||
Derivative fair values [Abstract] | |||||||
Derivative Asset, Fair Value, Gross Asset | $ 849 | $ 419 | |||||
Derivative Liability, Fair Value, Gross Liability | 2,828 | 5,824 | |||||
Collateral posted against derivative positions | 0 | 0 | |||||
Derivative, right to reclaim collateral | 1,979 | 5,405 | |||||
Commodity Contract [Member] | Other Current Liabilities [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative Asset, Fair Value, Gross Asset | [1] | 825 | 263 | ||||
Derivative Liability, Fair Value, Gross Liability | [1] | 2,524 | 4,942 | ||||
Commodity Contract [Member] | Other Deferred Liabilities and Other [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative Asset, Fair Value, Gross Asset | [1] | 24 | 156 | ||||
Derivative Liability, Fair Value, Gross Liability | [1] | 304 | 882 | ||||
Commodity Contract [Member] | Cash Flow Hedging [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative, right to reclaim collateral | $ 2,000 | $ 5,400 | |||||
Energy Related Commodity Contract [Member] | Cash Flow Hedging [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Maximum term of derivative hedging contract | 4 years | ||||||
Financial Transmission Rights [Member] | |||||||
Gross Notional Volume of Open Derivatives [Abstract] | |||||||
Notional amount, power measure (in MW) | MW | 4,606 | 1,824 | |||||
Derivative fair values [Abstract] | |||||||
Derivative Asset, Fair Value, Gross Asset | $ 33 | $ 179 | |||||
Collateral posted against derivative positions | 0 | 0 | |||||
Financial Transmission Rights [Member] | Other Current Assets [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative Asset, Fair Value, Gross Asset | 33 | 179 | |||||
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 | |||||
[1] As of June 30, 2024, and December 31, 2023, collateral of $ 2.0 million and $ 5.4 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments (Details-2) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Commodity Contract [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 849 | $ 419 |
Gross amounts offset in balance sheet | (849) | (419) |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | 0 | 0 |
Financial Transmission Rights [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 33 | 179 |
Gross amounts offset in balance sheet | 0 | 0 |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | $ 33 | $ 179 |
Derivative and Hedging Instru_5
Derivative and Hedging Instruments (Details-3) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Offsetting Liabilities [Line Items] | ||
Collateral posted against derivative positions | $ (2,000) | $ (5,400) |
Commodity Contract [Member] | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 2,828 | 5,824 |
Gross amounts offset in balance sheet | (849) | (419) |
Collateral posted against derivative positions | (1,979) | (5,405) |
Net amount presented in balance sheet | $ 0 | $ 0 |
Derivative and Hedging Instru_6
Derivative and Hedging Instruments (Details-4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Unrealized Realized Gains Losses On Balance Sheet [Line Items] | ||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Utilities Operating Expense, Purchased Power, Utilities Operating Expense, Cost of Gas Sold | Utilities Operating Expense, Purchased Power, Utilities Operating Expense, Cost of Gas Sold | Utilities Operating Expense, Purchased Power, Utilities Operating Expense, Cost of Gas Sold | Utilities Operating Expense, Purchased Power, Utilities Operating Expense, Cost of Gas Sold |
Current and Long-Term Regulatory Asset (Liability) [Member] | ||||
Change In Derivative Fair Value [Roll Forward] | ||||
Beginning balance, | $ 3,009 | $ 7,813 | $ 5,226 | $ 5,094 |
Unrealized loss (gain) | 758 | 92 | 2,898 | 14,395 |
Realized (loss) gain reclassified to a deferred account | (537) | (1,988) | (2,694) | (8,905) |
Realized (loss) gain reclassified to income statement | (1,284) | (900) | (3,484) | (5,567) |
Ending balance, | 1,946 | 5,017 | 1,946 | 5,017 |
Other Current Assets [Member] | ||||
Change In Derivative Fair Value [Roll Forward] | ||||
Beginning balance, | 275 | 455 | 1,569 | 2,747 |
Unrealized loss (gain) | 0 | 0 | 0 | 0 |
Realized (loss) gain reclassified to a deferred account | 537 | 1,988 | 2,694 | 8,905 |
Realized (loss) gain reclassified to income statement | (285) | (1,369) | (3,736) | (10,578) |
Ending balance, | $ 527 | $ 1,074 | $ 527 | $ 1,074 |
Derivative and Hedging Instru_7
Derivative and Hedging Instruments (Details-5) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) Counterparty | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Counterparty | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Counterparties in net liability position or default [Abstract] | |||||
Derivative, net liability position of counterparties | $ 0 | $ 0 | $ 0 | ||
Number of counterparties in default | Counterparty | 0 | 0 | |||
Commodity Contract [Member] | Fuel For Electric Generation Purchased Power [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Realized losses (gains) on income statement | $ 1,328 | $ 2,942 | $ 3,754 | $ 10,387 | |
Commodity Contract [Member] | Cost Of Gas Sold Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Realized losses (gains) on income statement | 0 | 0 | 3,265 | 6,451 | |
Financial Transmission Rights [Member] | Fuel For Electric Generation Purchased Power [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Realized losses (gains) on income statement | 241 | (673) | 201 | (693) | |
Financial Transmission Rights [Member] | Cost Of Gas Sold Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Realized losses (gains) on income statement | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details-1) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Liabilities: | |||
Unamortized discount and debt issuance costs, net | $ 4,300 | $ 4,600 | |
Carrying Amount [Member] | |||
Liabilities: | |||
Long-term debt | [1] | 725,990 | 728,546 |
Fair Value [Member] | |||
Liabilities: | |||
Long-term debt | [1] | $ 658,486 | $ 675,922 |
[1] Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.3 million and $ 4.6 million as of June 30, 2024, and December 31, 2023 , respectively. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details-2) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Liabilities: | |||
Derivative, right to reclaim collateral | $ 2,000 | $ 5,400 | |
Recurring [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 882 | 598 |
Exchange-traded investments | 67 | 2,034 | |
Total Assets | 949 | 2,632 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 2,828 | 5,824 |
Deferred compensation | 5,959 | 5,246 | |
Total liabilities | 8,787 | 11,070 | |
Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 783 | 352 |
Exchange-traded investments | 67 | 2,034 | |
Total Assets | 850 | 2,386 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 1,297 | 2,974 |
Deferred compensation | 0 | 0 | |
Total liabilities | 1,297 | 2,974 | |
Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 0 | 0 |
Exchange-traded investments | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 0 | 0 |
Deferred compensation | 5,959 | 5,246 | |
Total liabilities | 5,959 | 5,246 | |
Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 99 | 246 |
Exchange-traded investments | 0 | 0 | |
Total Assets | 99 | 246 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 1,531 | 2,850 |
Deferred compensation | 0 | 0 | |
Total liabilities | 1,531 | 2,850 | |
MGE [Member] | Recurring [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 882 | 598 |
Exchange-traded investments | 67 | 60 | |
Total Assets | 949 | 658 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 2,828 | 5,824 |
Deferred compensation | 5,959 | 5,246 | |
Total liabilities | 8,787 | 11,070 | |
MGE [Member] | Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 783 | 352 |
Exchange-traded investments | 67 | 60 | |
Total Assets | 850 | 412 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 1,297 | 2,974 |
Deferred compensation | 0 | 0 | |
Total liabilities | 1,297 | 2,974 | |
MGE [Member] | Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 0 | 0 |
Exchange-traded investments | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 0 | 0 |
Deferred compensation | 5,959 | 5,246 | |
Total liabilities | 5,959 | 5,246 | |
MGE [Member] | Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 99 | 246 |
Exchange-traded investments | 0 | 0 | |
Total Assets | 99 | 246 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 1,531 | 2,850 |
Deferred compensation | 0 | 0 | |
Total liabilities | $ 1,531 | $ 2,850 | |
[1] As of June 30, 2024, and December 31, 2023, collateral of $ 2.0 million and $ 5.4 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Details-3) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred compensation plan [Abstract] | |
Investment interest calculation, investment maturity period (26 weeks) | 182 days |
Investment interest calculation, monthly compounding rate | 1% |
Investment interest calculation, minimum annual rate compounded monthly | 7% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Details-4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance, | $ (1,726) | $ (3,740) | $ (2,604) | $ (866) | |
Realized and unrealized gains (losses): | |||||
Included in regulatory assets | 294 | 848 | 1,172 | (2,026) | |
Included in earnings | [1] | (1,330) | (903) | (3,855) | (5,574) |
Settlements | 1,330 | 903 | 3,855 | 5,574 | |
Ending balance, | $ (1,432) | $ (2,892) | $ (1,432) | $ (2,892) | |
[1] MGE's exchange-traded derivative contracts, over-the-counter party transactions, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability. |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Details-5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Included in earnings | [1] | $ (1,330) | $ (903) | $ (3,855) | $ (5,574) |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Utilities Operating Expense, Purchased Power | Utilities Operating Expense, Purchased Power | Utilities Operating Expense, Purchased Power | Utilities Operating Expense, Purchased Power | |
[1] MGE's exchange-traded derivative contracts, over-the-counter party transactions, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability. |
Joint Plant Ownership (Details)
Joint Plant Ownership (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 USD ($) MW | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) MW | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | ||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Property, plant, and equipment, net | $ 2,073,061 | $ 2,073,061 | $ 2,018,121 | |||
MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Property, plant, and equipment, net | 2,073,089 | 2,073,089 | $ 2,018,149 | |||
Paris Units [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Projected renewable project costs | [1],[2],[3] | 61,000 | 61,000 | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | [2],[3] | $ 40,200 | $ 40,200 | |||
Paris Units [Member] | Public Service Commission of Wisconsin [Member] | ||||||
Allowance for Funds Used During Construction | ||||||
Authorized AFUDC rate - Signficiant projects (100%) | 100% | |||||
Paris Units [Member] | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, ownership interest | [3] | 10% | 10% | |||
Paris Units [Member] | Solar | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | [3] | 20 | 20 | |||
Paris Units [Member] | Battery storage | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | [3] | 11 | 11 | |||
Darien Units [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Projected renewable project costs | [1],[2],[4],[5] | $ 48,000 | $ 48,000 | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | [2],[5] | $ 37,600 | $ 37,600 | |||
Darien Units [Member] | Public Service Commission of Wisconsin [Member] | ||||||
Allowance for Funds Used During Construction | ||||||
Authorized AFUDC rate - Signficiant projects (100%) | 100% | |||||
Darien Units [Member] | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, ownership interest | [5] | 10% | 10% | |||
Darien Units [Member] | Solar | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | [5] | 25 | 25 | |||
Koshkonong Units [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Projected renewable project costs | [1],[2],[4],[6] | $ 65,000 | $ 65,000 | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | [2],[6] | $ 100 | $ 100 | |||
Koshkonong Units [Member] | Public Service Commission of Wisconsin [Member] | ||||||
Allowance for Funds Used During Construction | ||||||
Authorized AFUDC rate - Signficiant projects (100%) | 100% | |||||
Koshkonong Units [Member] | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, ownership interest | [6] | 10% | 10% | |||
Koshkonong Units [Member] | Solar | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | [6] | 30 | 30 | |||
West Riverside Energy Center [Member] | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, ownership interest | 6.90% | 6.90% | ||||
West Riverside Energy Center II [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Projected renewable project costs | [2] | $ 25,000 | $ 25,000 | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | [2] | $ 25,200 | $ 25,200 | |||
West Riverside Energy Center II [Member] | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, ownership interest | 3.50% | 3.50% | ||||
West Riverside Energy Center II [Member] | Natural gas | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | 25 | 25 | ||||
Darien, Paris, and Koshkonong Units [Member] | ||||||
Allowance for Funds Used During Construction | ||||||
AFUDC | $ 1,500 | $ 600 | $ 2,700 | $ 1,000 | ||
[1] Estimated costs are expected to exceed PSCW previously approved Certificate of Authority (CA) levels. Notifications are provided to the PSCW when costs increase above CA levels. MGE has and will continue to request recovery of the updates in its rate case proceedings. Excluding AFUDC. Paris Solar-Battery Park is located in the Town of Paris in Kenosha County, Wisconsin. As part of its order, the PSCW approved battery capacity with this project, which is no longer included in the current estimate. We will continue to evaluate timing, cost, and feasibility of the installation of batteries. Darien Solar Energy Center is located in Walworth and Rock Counties in southern Wisconsin. Koshkonong Solar Energy Center is located in the Towns of Christiana and Deerfield in Dane County, Wisconsin. |
Revenue (Details-1)
Revenue (Details-1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Total Operating Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | $ 145,713 | $ 147,998 | $ 337,049 | $ 365,251 |
Electric [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 120,383 | 121,492 | 236,508 | 238,736 |
Electric [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 40,321 | 40,324 | 81,462 | 81,544 |
Electric [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 64,161 | 63,428 | 124,024 | 122,965 |
Electric [Member] | Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 3,445 | 3,577 | 6,855 | 6,863 |
Electric [Member] | Other-retail/municipal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 10,403 | 10,243 | 20,093 | 19,862 |
Electric [Member] | Total Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 118,330 | 117,572 | 232,434 | 231,234 |
Electric [Member] | Sales To The Market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 1,519 | 3,554 | 2,595 | 6,312 |
Electric [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 534 | 366 | 1,479 | 1,190 |
Gas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 25,116 | 26,291 | 100,285 | 126,253 |
Gas [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 15,589 | 16,688 | 58,987 | 72,412 |
Gas [Member] | Commercial/Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 7,876 | 8,207 | 37,400 | 49,710 |
Gas [Member] | Total Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 23,465 | 24,895 | 96,387 | 122,122 |
Gas [Member] | Gas Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 1,505 | 1,235 | 3,585 | 3,767 |
Gas [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 146 | 161 | 313 | 364 |
Non Regulated Energy [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | $ 214 | $ 215 | $ 256 | $ 262 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 145,713 | $ 147,998 | $ 337,049 | $ 365,251 |
Equity in earnings of investment | 5,526 | 5,240 | ||
Net Income (Loss) | 23,794 | 28,681 | 57,608 | 59,759 |
Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 120,383 | 121,492 | 236,508 | 238,736 |
Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 25,116 | 26,291 | 100,285 | 126,253 |
Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 214 | 215 | 256 | 262 |
Transmission Investment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
All Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 145,713 | 147,998 | 337,049 | 365,251 |
Equity in earnings of investment | 2,780 | 2,629 | 5,526 | 5,240 |
Net Income (Loss) | 23,794 | 28,681 | 57,608 | 59,759 |
Operating Segments [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 120,328 | 121,685 | 236,399 | 238,877 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net Income (Loss) | 15,661 | 21,556 | 31,424 | 34,870 |
Operating Segments [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 27,288 | 29,061 | 107,668 | 135,684 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net Income (Loss) | 50 | 581 | 10,664 | 11,340 |
Operating Segments [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 11,160 | 10,410 | 22,029 | 21,007 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net Income (Loss) | 6,043 | 5,470 | 11,866 | 11,040 |
Operating Segments [Member] | Transmission Investment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Equity in earnings of investment | 2,780 | 2,629 | 5,526 | 5,240 |
Net Income (Loss) | 2,022 | 1,914 | 4,018 | 3,813 |
Operating Segments [Member] | All Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net Income (Loss) | 18 | (840) | (364) | (1,304) |
Consolidation Elimination Entries [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (13,063) | (13,158) | (29,047) | (30,317) |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Consolidation Elimination Entries [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (55) | 193 | (109) | 141 |
Consolidation Elimination Entries [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,172 | 2,770 | 7,383 | 9,431 |
Consolidation Elimination Entries [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 10,946 | 10,195 | 21,773 | 20,745 |
Consolidation Elimination Entries [Member] | Transmission Investment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Consolidation Elimination Entries [Member] | All Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
MGE [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 145,713 | 147,998 | 337,049 | 365,251 |
Net Income (Loss) | 15,988 | 22,232 | 42,591 | 46,355 |
MGE [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 120,383 | 121,492 | 236,508 | 238,736 |
MGE [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 25,116 | 26,291 | 100,285 | 126,253 |
MGE [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 214 | 215 | 256 | 262 |
MGE [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 145,713 | 147,998 | 337,049 | 365,251 |
Net Income (Loss) | 15,988 | 22,232 | 42,591 | 46,355 |
MGE [Member] | Operating Segments [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 120,328 | 121,685 | 236,399 | 238,877 |
Net Income (Loss) | 15,661 | 21,556 | 31,424 | 34,870 |
MGE [Member] | Operating Segments [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 27,288 | 29,061 | 107,668 | 135,684 |
Net Income (Loss) | 50 | 581 | 10,664 | 11,340 |
MGE [Member] | Operating Segments [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 11,160 | 10,410 | 22,029 | 21,007 |
Net Income (Loss) | 6,043 | 5,470 | 11,866 | 11,040 |
MGE [Member] | Consolidation Elimination Entries [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (13,063) | (13,158) | (29,047) | (30,317) |
Net Income (Loss) | (5,766) | (5,375) | (11,363) | (10,895) |
MGE [Member] | Consolidation Elimination Entries [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (55) | 193 | (109) | 141 |
MGE [Member] | Consolidation Elimination Entries [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,172 | 2,770 | 7,383 | 9,431 |
MGE [Member] | Consolidation Elimination Entries [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 10,946 | $ 10,195 | $ 21,773 | $ 20,745 |