Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information [Line Items] | |
Entity Registrant Name | MGE Energy Inc |
Entity Central Index Key | 1161728 |
Document Type | 10-K |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Trading Symbol | MGEE |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | -19 |
Entity Well known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Public Float | $1,365,673,259 |
Entity Common Stock Shares Outstanding | 34,668,370 |
MGE [Member] | |
Document and Entity Information [Line Items] | |
Entity Registrant Name | Madison Gas and Electric Company |
Entity Central Index Key | 61339 |
Entity Well known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock Shares Outstanding | 17,347,894 |
MGE_Energy_Inc_Consolidated_St
MGE Energy Inc Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Revenues: | |||
Regulated electric revenues | $394,849 | $403,957 | $392,365 |
Regulated gas revenues | 221,720 | 181,462 | 139,727 |
Nonregulated revenues | 3,283 | 5,468 | 9,231 |
Total Operating Revenues | 619,852 | 590,887 | 541,323 |
Operating Expenses: | |||
Fuel for electric generation | 42,828 | 46,062 | 46,499 |
Purchased power | 73,232 | 80,830 | 73,842 |
Cost of gas sold | 143,644 | 107,315 | 78,156 |
Other operations and maintenance | 161,703 | 171,248 | 172,996 |
Depreciation and amortization | 40,695 | 38,838 | 38,707 |
Other general taxes | 19,652 | 18,607 | 18,360 |
Total Operating Expenses | 481,754 | 462,900 | 428,560 |
Operating Income (Loss) | 138,098 | 127,987 | 112,763 |
Other income, net | 10,079 | 10,701 | 10,069 |
Interest expense, net | -19,673 | -18,924 | -19,467 |
Income before income taxes | 128,504 | 119,764 | 103,365 |
Income tax provision | -48,185 | -44,859 | -38,919 |
Net Income | $80,319 | $74,905 | $64,446 |
Earnings Per Share of Common Stock (basic and diluted) | $2.32 | $2.16 | $1.86 |
Dividends per share of common stock | $1.11 | $1.07 | $1.04 |
Weighted Average Shares Outstanding (basic and diluted) | 34,668 | 34,668 | 34,668 |
Madison_Gas_and_Electric_Compa
Madison Gas and Electric Company Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Operating Revenues: | ||||||
Regulated electric revenues | $394,849 | $403,957 | $392,365 | |||
Regulated gas revenues | 221,720 | 181,462 | 139,727 | |||
Nonregulated revenues | 3,283 | 5,468 | 9,231 | |||
Total Operating Revenues | 619,852 | 590,887 | 541,323 | |||
Operating Expenses: | ||||||
Fuel for electric generation | 42,828 | 46,062 | 46,499 | |||
Purchased power | 73,232 | 80,830 | 73,842 | |||
Cost of gas sold | 143,644 | 107,315 | 78,156 | |||
Other operations and maintenance | 161,703 | 171,248 | 172,996 | |||
Depreciation and amortization | 40,695 | 38,838 | 38,707 | |||
Other general taxes | 19,652 | 18,607 | 18,360 | |||
Total Operating Expenses | 481,754 | 462,900 | 428,560 | |||
Operating Income (Loss) | 138,098 | 127,987 | 112,763 | |||
Other Income and Deductions: | ||||||
Equity in earnings in ATC | 9,150 | 9,434 | 9,079 | |||
Total Other Income and Deductions | 10,079 | 10,701 | 10,069 | |||
Interest Expense: | ||||||
Net Interest Expense | 19,673 | 18,924 | 19,467 | |||
Net Income | 80,319 | 74,905 | 64,446 | |||
MGE [Member] | ||||||
Operating Revenues: | ||||||
Regulated electric revenues | 394,871 | 403,980 | 392,365 | |||
Regulated gas revenues | 221,741 | 181,477 | 139,727 | |||
Nonregulated revenues | 3,283 | 5,468 | 9,231 | |||
Total Operating Revenues | 619,895 | 590,925 | 541,323 | |||
Operating Expenses: | ||||||
Fuel for electric generation | 42,836 | 46,070 | 46,499 | |||
Purchased power | 73,245 | 80,844 | 73,842 | |||
Cost of gas sold | 143,665 | 107,330 | 78,156 | |||
Other operations and maintenance | 160,831 | 170,498 | 171,965 | |||
Depreciation and amortization | 40,648 | 38,834 | 38,707 | |||
Other general taxes | 19,652 | 18,607 | 18,360 | |||
Income tax provision | 45,090 | 41,519 | 35,334 | |||
Total Operating Expenses | 525,967 | 503,702 | 462,863 | |||
Operating Income (Loss) | 93,928 | [1] | 87,223 | [1] | 78,460 | [1] |
Other Income and Deductions: | ||||||
AFUDC - equity funds | 3,466 | 3,140 | 1,731 | |||
Equity in earnings in ATC | 9,150 | 9,434 | 9,079 | |||
Income tax provision | -4,055 | -4,303 | -4,101 | |||
Other deductions, net | -704 | -18 | -263 | |||
Total Other Income and Deductions | 7,857 | [1] | 8,253 | [1] | 6,446 | [1] |
Income before interest expense | 101,785 | 95,476 | 84,906 | |||
Interest Expense: | ||||||
Interest on long-term debt | 20,927 | 20,087 | 20,386 | |||
Other interest, net | 62 | -21 | -82 | |||
AFUDC - borrowed funds | -1,142 | -1,035 | -704 | |||
Net Interest Expense | 19,847 | 19,031 | 19,600 | |||
Net Income Including Noncontrolling Interest | 81,938 | 76,445 | 65,306 | |||
Less Net Income Attributable to Noncontrolling Interest, net of tax | -26,310 | -27,438 | -24,489 | |||
Net Income | $55,628 | $49,007 | $40,817 | |||
[1] | *Amounts are shown net of the related tax expense, consistent with the presentation on the consolidated MGE Income Statement. |
MGE_Energy_Inc_Consolidated_St1
MGE Energy Inc Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Other Comprehensive Income [Abstract] | |||||||||||
Net Income | $15,186 | $23,329 | $14,087 | $27,717 | $14,077 | $24,353 | $13,891 | $22,584 | $80,319 | $74,905 | $64,446 |
Other comprehensive income/(loss), net of tax: | |||||||||||
Unrealized gain (loss) on available for sale securities, net of tax | 81 | 283 | -18 | ||||||||
Comprehensive Income | $80,400 | $75,188 | $64,428 |
Madison_Gas_and_Electric_Compa1
Madison Gas and Electric Company Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gain (loss) on available for sale securities, net of tax | $81 | $283 | ($18) |
Comprehensive Income | 80,400 | 75,188 | 64,428 |
MGE [Member] | |||
Net Income | 81,938 | 76,445 | 65,306 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gain (loss) on available for sale securities, net of tax | -48 | 188 | -43 |
Comprehensive Income Including Noncontrolling Interest | 81,890 | 76,633 | 65,263 |
Less: Comprehensive Income Attributable to Noncontrolling Interest, net of tax | -26,310 | -27,438 | -24,489 |
Comprehensive Income | $55,580 | $49,195 | $40,774 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrealized gain (loss) on available-for-sale securities, taxes | $54 | $189 | ($12) |
MGE [Member] | |||
Unrealized gain (loss) on available-for-sale securities, taxes | ($33) | $126 | ($29) |
MGE_Energy_Inc_Consolidated_St2
MGE Energy Inc Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities: | |||
Net Income | $80,319 | $74,905 | $64,446 |
Items not affecting cash: | |||
Depreciation and amortization | 40,695 | 38,838 | 38,707 |
Deferred income taxes | 49,884 | 38,365 | 44,797 |
Provision for doubtful receivables | 1,898 | 2,448 | 2,498 |
Employee benefit plan expenses | -1,080 | 13,303 | 18,353 |
Equity earnings in ATC | -9,150 | -9,434 | -9,079 |
Other items | 729 | 117 | 1,283 |
Changes in working capital items: | |||
Trade and other receivables (change) | 2,115 | -3,827 | -6,208 |
Inventories (change) | -10,399 | 2,488 | 1,457 |
Unbilled revenues (change) | 720 | -3,720 | -2,508 |
Prepaid taxes (change) | -19,804 | 414 | 2,731 |
Other current assets (change) | -5,693 | 2,514 | 4,093 |
Accounts payable (change) | 2,756 | 858 | -272 |
Other current liabilities (change) | -4,195 | 6,271 | 425 |
Dividend income from ATC | 7,740 | 7,404 | 7,146 |
Cash contributions to pension and other postretirement plans | -3,321 | -34,765 | -28,857 |
Debt make-whole premium | 0 | -6,757 | 0 |
Other noncurrent items, net | -4,452 | 10,845 | 6,992 |
Cash Provided by (Used for) Operating Activities | 128,762 | 140,267 | 146,004 |
Investing Activities: | |||
Capital expenditures | -92,676 | -119,047 | -98,435 |
Capital contributions to investments | -2,185 | -1,660 | -2,419 |
Purchase of investment - land | 0 | -10 | -3 |
Other investing | -1,297 | -1,205 | -496 |
Cash Provided by (Used for) Investing Activities | -96,158 | -121,922 | -101,353 |
Financing Activities: | |||
Cash dividends paid on common stock | -38,429 | -37,107 | -35,951 |
Repayment of long-term debt | -4,103 | -43,012 | -30,668 |
Issuance of long-term debt | 0 | 85,000 | 28,000 |
Increase in short-term debt | 7,000 | 0 | 0 |
Other financing | -130 | -770 | -844 |
Cash Provided by (Used for) Financing Activities | -35,662 | 4,111 | -39,463 |
Change in Cash and Cash Equivalents: | -3,058 | 22,456 | 5,188 |
Cash and cash equivalents at beginning of period | 68,813 | 46,357 | 41,169 |
Cash and cash equivalents at end of period | 65,755 | 68,813 | 46,357 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 20,478 | 17,991 | 19,499 |
Income taxes paid | 19,579 | 8,046 | 3,544 |
Income taxes received | -644 | -1,339 | -12,536 |
Significant noncash investing activities: | |||
Accrued capital expenditures | $1,569 | $9,892 | $10,317 |
Madison_Gas_and_Electric_Compa2
Madison Gas and Electric Company Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Items not affecting cash: | |||
Depreciation and amortization | $40,695 | $38,838 | $38,707 |
Deferred income taxes | 49,884 | 38,365 | 44,797 |
Provision for doubtful receivables | 1,898 | 2,448 | 2,498 |
Employee benefit plan expenses | -1,080 | 13,303 | 18,353 |
Equity earnings in ATC | -9,150 | -9,434 | -9,079 |
Other items | 729 | 117 | 1,283 |
Changes in working capital items: | |||
Trade and other receivables (change) | 2,115 | -3,827 | -6,208 |
Inventories (change) | -10,399 | 2,488 | 1,457 |
Unbilled revenues (change) | 720 | -3,720 | -2,508 |
Prepaid taxes (change) | -19,804 | 414 | 2,731 |
Other current assets (change) | -5,693 | 2,514 | 4,093 |
Accounts payable (change) | 2,756 | 858 | -272 |
Other current liabilities (change) | -4,195 | 6,271 | 425 |
Dividend income from ATC | 7,740 | 7,404 | 7,146 |
Cash contributions to pension and other postretirement plans | -3,321 | -34,765 | -28,857 |
Debt make-whole premium | 0 | -6,757 | 0 |
Other noncurrent items, net | -4,452 | 10,845 | 6,992 |
Cash Provided by (Used for) Operating Activities | 128,762 | 140,267 | 146,004 |
Investing Activities: | |||
Capital expenditures | -92,676 | -119,047 | -98,435 |
Capital contributions to investments | -2,185 | -1,660 | -2,419 |
Other investing | -1,297 | -1,205 | -496 |
Cash Provided by (Used for) Investing Activities | -96,158 | -121,922 | -101,353 |
Financing Activities: | |||
Repayment of long-term debt | -4,103 | -43,012 | -30,668 |
Issuance of long-term debt | 0 | 85,000 | 28,000 |
Increase in short-term debt | 7,000 | 0 | 0 |
Other financing | -130 | -770 | -844 |
Cash Provided by (Used for) Financing Activities | -35,662 | 4,111 | -39,463 |
Change in Cash and Cash Equivalents: | -3,058 | 22,456 | 5,188 |
Cash and cash equivalents at beginning of period | 68,813 | 46,357 | 41,169 |
Cash and cash equivalents at end of period | 65,755 | 68,813 | 46,357 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 20,478 | 17,991 | 19,499 |
Income taxes paid | 19,579 | 8,046 | 3,544 |
Income taxes received | -644 | -1,339 | -12,536 |
Significant noncash investing activities: | |||
Accrued capital expenditures | 1,569 | 9,892 | 10,317 |
MGE [Member] | |||
Operating Activities: | |||
Net Income | 81,938 | 76,445 | 65,306 |
Items not affecting cash: | |||
Depreciation and amortization | 40,648 | 38,834 | 38,707 |
Deferred income taxes | 49,603 | 37,462 | 44,112 |
Provision for doubtful receivables | 1,898 | 2,448 | 2,498 |
Employee benefit plan expenses | -1,080 | 13,303 | 18,353 |
Equity earnings in ATC | -9,150 | -9,434 | -9,079 |
Other items | 1,280 | 651 | 1,813 |
Changes in working capital items: | |||
Trade and other receivables (change) | -4,455 | -3,699 | -7,219 |
Inventories (change) | -10,398 | 2,488 | 1,457 |
Unbilled revenues (change) | 720 | -3,720 | -2,508 |
Prepaid taxes (change) | -15,169 | -373 | -1,584 |
Other current assets (change) | -5,693 | 2,518 | 4,092 |
Accounts payable (change) | 2,741 | 126 | -1,658 |
Accrued interest and taxes (change) | -1,001 | 2,065 | 211 |
Other current liabilities (change) | -3,144 | 2,975 | -714 |
Dividend income from ATC | 7,740 | 7,404 | 7,146 |
Cash contributions to pension and other postretirement plans | -3,321 | -34,765 | -28,857 |
Debt make-whole premium | 0 | -6,757 | 0 |
Other noncurrent items, net | -4,619 | 10,713 | 6,696 |
Cash Provided by (Used for) Operating Activities | 128,538 | 138,684 | 138,772 |
Investing Activities: | |||
Capital expenditures | -92,676 | -119,047 | -98,435 |
Capital contributions to investments | -1,775 | -1,420 | -2,140 |
Other investing | -1,146 | -130 | -508 |
Cash Provided by (Used for) Investing Activities | -95,597 | -120,597 | -101,083 |
Financing Activities: | |||
Cash dividends paid to parent by MGE | -26,500 | -25,000 | -20,404 |
Distributions to parent from noncontrolling interest | -21,359 | -27,365 | -23,500 |
Equity contribution received by noncontrolling interest | 1,775 | 1,420 | 2,130 |
Repayment of long-term debt | -4,103 | -43,012 | -30,668 |
Issuance of long-term debt | 0 | 85,000 | 28,000 |
Increase in short-term debt | 7,000 | 0 | 0 |
Other financing | 0 | -672 | -795 |
Cash Provided by (Used for) Financing Activities | -43,187 | -9,629 | -45,237 |
Change in Cash and Cash Equivalents: | -10,246 | 8,458 | -7,548 |
Cash and cash equivalents at beginning of period | 14,808 | 6,350 | 13,898 |
Cash and cash equivalents at end of period | 4,562 | 14,808 | 6,350 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 20,478 | 17,991 | 19,499 |
Income taxes paid | 67 | 144 | 44 |
Income taxes received | -644 | 0 | -448 |
Significant noncash investing activities: | |||
Accrued capital expenditures | $1,569 | $9,892 | $10,317 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current Assets: | ||||
Cash and cash equivalents | $65,755 | $68,813 | ||
Accounts receivable, less reserves | 41,614 | 44,890 | ||
Other accounts receivables, less reserves | 7,610 | 5,352 | ||
Unbilled revenues | 31,262 | 31,982 | ||
Materials and supplies, at average cost | 17,121 | 16,662 | ||
Fossil fuel | 8,098 | 5,206 | ||
Stored natural gas, at average cost | 21,036 | 13,988 | ||
Prepaid taxes | 38,910 | 19,106 | ||
Regulatory assets - current | 8,360 | 6,377 | ||
Deferred income taxes | 3,482 | 0 | ||
Other current assets | 10,711 | 8,225 | ||
Total Current Assets | 253,959 | 220,601 | ||
Other long-term receivables | 2,181 | 2,193 | ||
Regulatory assets | 156,823 | 107,166 | ||
Pension and other postretirement benefits | 0 | 15,071 | ||
Other deferred assets and other | 4,837 | 5,853 | ||
Property, Plant, and Equipment: | ||||
Property, plant, and equipment, net | 1,189,077 | 1,018,809 | ||
Construction work in progress | 19,029 | 141,415 | ||
Total Property, Plant, and Equipment | 1,208,106 | 1,160,224 | ||
Investments | 71,760 | 67,952 | ||
Total Assets | 1,697,666 | 1,579,060 | ||
Current Liabilities: | ||||
Long-term debt due within one year | 4,182 | 4,102 | ||
Short-term debt | 7,000 | [1] | 0 | [1] |
Accounts payable | 41,655 | 43,684 | ||
Accrued interest and taxes | 5,086 | 5,661 | ||
Accrued payroll related items | 11,241 | 10,731 | ||
Deferred income taxes | 0 | 1,711 | ||
Regulatory liabilities - current | 0 | 13,538 | ||
Derivative liabilities | 6,901 | 7,750 | ||
Other current liabilities | 13,931 | 9,489 | ||
Total Current Liabilities | 89,996 | 96,666 | ||
Other Credits: | ||||
Deferred income taxes | 342,045 | 284,791 | ||
Investment tax credit - deferred | 1,223 | 1,413 | ||
Regulatory liabilities | 22,715 | 19,792 | ||
Accrued pension and other postretirement benefits | 90,201 | 49,184 | ||
Derivative liabilities | 46,560 | 57,930 | ||
Other deferred liabilities and other | 50,269 | 52,360 | ||
Total Other Credits | 553,013 | 465,470 | ||
Common shareholders' equity: | ||||
Common stock | 34,668 | 34,668 | ||
Additional paid-in capital | 316,268 | 316,268 | ||
Retained earnings | 308,007 | 266,197 | ||
Accumulated other comprehensive income, net of tax | 458 | 377 | ||
Total Common Shareholders' Equity | 659,401 | 617,510 | ||
Long-term debt | 395,256 | 399,414 | ||
Total Capitalization | 1,054,657 | 1,016,924 | ||
Commitments and contingencies (see Footnote 18) | 0 | 0 | ||
Total Liabilities and Capitalization | 1,697,666 | 1,579,060 | ||
MGE [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 4,562 | 14,808 | ||
Accounts receivable, less reserves | 41,614 | 44,890 | ||
Affiliate receivables | 7,112 | 534 | ||
Other accounts receivables, less reserves | 7,524 | 5,274 | ||
Unbilled revenues | 31,262 | 31,982 | ||
Materials and supplies, at average cost | 17,121 | 16,662 | ||
Fossil fuel | 8,098 | 5,206 | ||
Stored natural gas, at average cost | 21,035 | 13,988 | ||
Prepaid taxes | 39,103 | 23,934 | ||
Regulatory assets - current | 8,360 | 6,377 | ||
Deferred income taxes | 1,271 | 0 | ||
Other current assets | 10,683 | 8,197 | ||
Total Current Assets | 197,745 | 171,852 | ||
Affiliate receivable long-term | 5,295 | 5,825 | ||
Regulatory assets | 156,823 | 107,166 | ||
Pension and other postretirement benefits | 0 | 15,071 | ||
Other deferred assets and other | 4,977 | 6,138 | ||
Property, Plant, and Equipment: | ||||
Property, plant, and equipment, net | 1,188,351 | 1,017,877 | ||
Construction work in progress | 19,029 | 141,415 | ||
Total Property, Plant, and Equipment | 1,207,380 | 1,159,292 | ||
Investments | 68,402 | 65,299 | ||
Total Assets | 1,640,622 | 1,530,643 | ||
Current Liabilities: | ||||
Long-term debt due within one year | 4,182 | 4,102 | ||
Short-term debt | 7,000 | 0 | ||
Accounts payable | 41,654 | 43,684 | ||
Accrued interest and taxes | 5,039 | 6,040 | ||
Accrued payroll related items | 11,241 | 10,731 | ||
Deferred income taxes | 0 | 2,723 | ||
Regulatory liabilities - current | 0 | 13,538 | ||
Derivative liabilities | 6,901 | 7,750 | ||
Other current liabilities | 11,350 | 6,446 | ||
Total Current Liabilities | 87,367 | 95,014 | ||
Other Credits: | ||||
Deferred income taxes | 334,773 | 279,085 | ||
Investment tax credit - deferred | 1,223 | 1,413 | ||
Regulatory liabilities | 22,715 | 19,792 | ||
Accrued pension and other postretirement benefits | 90,201 | 49,184 | ||
Derivative liabilities | 46,560 | 57,930 | ||
Other deferred liabilities and other | 50,267 | 52,357 | ||
Total Other Credits | 545,739 | 459,761 | ||
Common shareholders' equity: | ||||
Common stock | 17,348 | 17,348 | ||
Additional paid-in capital | 192,417 | 192,417 | ||
Retained earnings | 276,662 | 247,534 | ||
Accumulated other comprehensive income, net of tax | 144 | 192 | ||
Total Common Shareholders' Equity | 486,571 | 457,491 | ||
Noncontrolling interest | 125,689 | 118,963 | ||
Total Equity | 612,260 | 576,454 | ||
Long-term debt | 395,256 | 399,414 | ||
Total Capitalization | 1,007,516 | 975,868 | ||
Commitments and contingencies (see Footnote 18) | 0 | 0 | ||
Total Liabilities and Capitalization | $1,640,622 | $1,530,643 | ||
[1] | MGE Energy short-term borrowings include MGE Energy and MGE lines of credit and MGE commercial paper. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Receivables, Net | ||
Reserve for uncollectible accounts receivable | $4,329 | $4,219 |
Reserve for uncollectible other accounts receivable | 420 | 750 |
Common shareholders' equity | ||
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 75,000 | 50,000 |
Common stock, shares issued | 34,668 | 34,668 |
Common stock, shares outstanding | 34,668 | 34,668 |
MGE [Member] | ||
Receivables, Net | ||
Reserve for uncollectible accounts receivable | 4,329 | 4,219 |
Reserve for uncollectible other accounts receivable | $420 | $750 |
Common shareholders' equity | ||
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares outstanding | 17,348 | 17,348 |
MGE_Energy_Inc_Consolidated_St3
MGE Energy Inc Consolidated Statements of Common Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss)/ Income [Member] |
In Thousands, unless otherwise specified | |||||
Beginning balance, value at Dec. 31, 2011 | $550,952 | $34,668 | $316,268 | $199,904 | $112 |
Beginning balance, shares at Dec. 31, 2011 | 34,668 | ||||
Increase (Decrease) in Common Equity [Roll Forward] | |||||
Net Income | 64,446 | 64,446 | |||
Other comprehensive income/(loss) | -18 | -18 | |||
Common stock dividends declared | -35,951 | -35,951 | |||
Ending balance, value at Dec. 31, 2012 | 579,429 | 34,668 | 316,268 | 228,399 | 94 |
Ending balance, shares at Dec. 31, 2012 | 34,668 | ||||
Increase (Decrease) in Common Equity [Roll Forward] | |||||
Net Income | 74,905 | 74,905 | |||
Other comprehensive income/(loss) | 283 | 283 | |||
Common stock dividends declared | -37,107 | -37,107 | |||
Ending balance, value at Dec. 31, 2013 | 617,510 | 34,668 | 316,268 | 266,197 | 377 |
Ending balance, shares at Dec. 31, 2013 | 34,668 | ||||
Increase (Decrease) in Common Equity [Roll Forward] | |||||
Net Income | 80,319 | 80,319 | |||
Other comprehensive income/(loss) | 81 | 81 | |||
Common stock dividends declared | -38,429 | -38,429 | |||
Cash in lieu of fractional shares related to stock split | -80 | -80 | |||
Ending balance, value at Dec. 31, 2014 | $659,401 | $34,668 | $316,268 | $308,007 | $458 |
Ending balance, shares at Dec. 31, 2014 | 34,668 |
Madison_Gas_and_Electric_Compa3
Madison Gas and Electric Company Consolidated Statements of Common Equity (USD $) | Total | MGE [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss)/ Income [Member] | Accumulated Other Comprehensive (Loss)/ Income [Member] | Noncontrolling Interest [Member] |
In Thousands, unless otherwise specified | USD ($) | USD ($) | MGE [Member] | MGE [Member] | MGE [Member] | USD ($) | MGE [Member] | MGE [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||
Beginning balance, value at Dec. 31, 2011 | $527,277 | $17,348 | $192,417 | $203,114 | $47 | $114,351 | |||
Beginning balance, shares at Dec. 31, 2011 | 34,668 | 17,348 | |||||||
Increase (Decrease) in Common Equity [Roll Forward] | |||||||||
Net Income | 65,306 | 40,817 | 24,489 | ||||||
Other comprehensive income/(loss) | -18 | -43 | -18 | -43 | |||||
Cash dividends paid to parent by MGE | -44,343 | -20,404 | -20,404 | ||||||
Equity contribution received by noncontrolling interest | 2,130 | 2,130 | |||||||
Distributions to parent from noncontrolling interest | -23,500 | -23,500 | |||||||
Ending balance, value at Dec. 31, 2012 | 550,766 | 17,348 | 192,417 | 223,527 | 4 | 117,470 | |||
Ending balance, shares at Dec. 31, 2012 | 34,668 | 17,348 | |||||||
Increase (Decrease) in Common Equity [Roll Forward] | |||||||||
Net Income | 76,445 | 49,007 | 27,438 | ||||||
Other comprehensive income/(loss) | 283 | 188 | 283 | 188 | |||||
Cash dividends paid to parent by MGE | -52,366 | -25,000 | -25,000 | ||||||
Equity contribution received by noncontrolling interest | 1,420 | 1,420 | |||||||
Distributions to parent from noncontrolling interest | -27,365 | -27,365 | |||||||
Ending balance, value at Dec. 31, 2013 | 576,454 | 17,348 | 192,417 | 247,534 | 192 | 118,963 | |||
Ending balance, shares at Dec. 31, 2013 | 34,668 | 17,348 | |||||||
Increase (Decrease) in Common Equity [Roll Forward] | |||||||||
Net Income | 81,938 | 55,628 | 26,310 | ||||||
Other comprehensive income/(loss) | 81 | -48 | 81 | -48 | |||||
Cash dividends paid to parent by MGE | -47,859 | -26,500 | -26,500 | ||||||
Equity contribution received by noncontrolling interest | 1,775 | 1,775 | |||||||
Distributions to parent from noncontrolling interest | -21,359 | -21,359 | |||||||
Ending balance, value at Dec. 31, 2014 | $612,260 | $17,348 | $192,417 | $276,662 | $144 | $125,689 | |||
Ending balance, shares at Dec. 31, 2014 | 34,668 | 17,348 |
Consolidated_Statements_of_Com1
Consolidated Statements of Common Equity (Parentheticals) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dividends per share of common stock | $0.28 | $0.28 | $0.27 | $0.27 | $0.27 | $0.27 | $0.26 | $0.26 | $1.11 | $1.07 | $1.04 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies. | ||||||||
a. Basis of Presentation - MGE Energy and MGE. | |||||||||
The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which give recognition to the rate making accounting policies for regulated operations prescribed by the regulatory authorities having jurisdiction, principally the PSCW and FERC. MGE's accounting records conform to the FERC uniform system of accounts. | |||||||||
b. Principles of Consolidation - MGE Energy and MGE. | |||||||||
MGE, a wholly owned subsidiary of MGE Energy, is a regulated electric and gas utility headquartered in Madison, Wisconsin. MGE Energy and MGE consolidate all majority owned subsidiaries in which it has controlling influence. MGE is the majority owner of MGE Transco. MGE Transco is a nonregulated entity formed to manage the investment in ATC. | |||||||||
Wholly owned subsidiaries of MGE Energy include CWDC, MAGAEL, MGE Power, MGE State Energy Services, and NGV Fueling Services. MGE Power owns 100% of MGE Power Elm Road and MGE Power West Campus. MGE Power and its subsidiaries are part of MGE Energy's nonregulated energy operations, which were formed to own and lease electric generation projects to assist MGE. | |||||||||
MGE Energy and MGE consolidate variable interest entities (VIEs) for which it is the primary beneficiary. Variable interest entities are legal entities that possess any of the following characteristics: equity investors who have an insufficient amount of equity at risk to finance their activities, equity owners who do not have the power to direct the significant activities of the entity (or have voting rights that are disproportionate to their ownership interest), or equity holders who do not receive expected losses or returns significant to the VIE. If MGE Energy or MGE is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, all relevant facts and circumstances are considered, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. Ongoing reassessments of all VIEs are performed to determine if the primary beneficiary status has changed. MGE has consolidated MGE Power Elm Road and MGE Power West Campus. Both entities are VIEs. MGE is considered the primary beneficiary of these entities as a result of contractual agreements. See Footnote 2 for more discussion of these entities. | |||||||||
The consolidated financial statements reflect the application of certain accounting policies described in this note. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
c. Use of Estimates - MGE Energy and MGE. | |||||||||
In order to prepare consolidated financial statements in conformity with GAAP, management must make estimates and assumptions. These estimates could affect reported amounts of assets, liabilities, and disclosures at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from management's estimates. | |||||||||
d. Cash Equivalents and Restricted Cash - MGE Energy and MGE. | |||||||||
MGE Energy and MGE consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | |||||||||
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. These are included in other current assets. | |||||||||
e. Receivable – Margin Account - MGE Energy and MGE. | |||||||||
Cash amounts held by counterparties as margin for certain financial transactions are recorded as receivable – margin account in other current assets on the consolidated balance sheet. As of December 31, 2014 and 2013, the receivable – margin account balance of $2.2 million and $0.5 million, respectively, is shown net of any collateral posted against derivative positions. As of December 31, 2014 and 2013, there was $2.2 million and $0.2 million, respectively, of collateral posted against derivative positions. Changes in this cash account are considered cash flows from operating activities to match with the costs being hedged. The costs being hedged are fuel for electric generation, purchased power, and cost of gas sold. | |||||||||
f. Trade Receivables, Allowance for Doubtful Accounts, and Concentration Risk - MGE Energy and MGE. | |||||||||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. However, a 1% late payment charge is recorded on all receivables unpaid after the due date. The allowance for doubtful accounts associated with these receivables represents our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine our allowance for doubtful accounts based on historical write-off experience, regional economic data, and review of the accounts receivable aging. | |||||||||
MGE is obligated to provide service to all electric and gas customers within its franchised territories. MGE's franchised electric territory includes a 316 square-mile area in Dane County, Wisconsin, and MGE's franchised gas territory includes a service area covering 1,678 square-miles in Wisconsin. MGE manages this concentration and the related credit risk through its credit and collection policies, which are consistent with state regulatory requirements. | |||||||||
g. Inventories - MGE Energy and MGE. | |||||||||
Inventories consist of natural gas in storage, fossil fuels, materials and supplies, SO2 allowances, and renewable energy credits (RECs). MGE values natural gas in storage, fossil fuels, and materials and supplies using average cost. | |||||||||
SO2 emission allowances are included in material and supplies on the consolidated balance sheet and are recorded at weighted average cost. These allowances are charged to fuel expense as they are used in operations. MGE's emission allowance balance was $0.1 million as of December 31, 2014 and 2013. | |||||||||
REC allowances are included in materials and supplies on the consolidate balance sheet and are recorded based on specific identification. These allowances are charged to purchase power expense as they are used in operations. MGE's REC allowance balances as of December 31, 2014 and 2013, were $0.8 million and $0.6 million, respectively. | |||||||||
h. Regulatory Assets and Liabilities - MGE Energy and MGE. | |||||||||
Regulatory assets and regulatory liabilities are recorded consistent with regulatory treatment. Regulatory assets represent costs which are deferred due to the probable future recovery from customers through regulated rates. Regulatory liabilities represent the excess recovery of costs or accrued credits which were deferred because MGE believes it is probable such amounts will be returned to customers through future regulated rates. Regulatory assets and liabilities are amortized in the consolidated statements of income consistent with the recovery or refund included in customer rates. MGE believes that it is probable that its recorded regulatory assets and liabilities will be recovered and refunded, respectively, in future rates. See Footnote 6 for further information. | |||||||||
i. Debt Issuance Costs - MGE Energy and MGE. | |||||||||
Premiums, discounts, and expenses incurred with the issuance of outstanding long-term debt are amortized over the life of the debt issue. Any call premiums or unamortized expenses associated with refinancing higher-cost debt obligations used to finance utility-regulated assets and operations are amortized consistent with regulatory treatment of those items. | |||||||||
j. Property, Plant, and Equipment - MGE Energy and MGE. | |||||||||
Property, plant, and equipment is recorded at original cost. Cost includes indirect costs consisting of payroll taxes, pensions, postretirement benefits, other fringe benefits, and administrative and general costs. Also, included in the cost is AFUDC for utility property and capitalized interest for nonregulated property. Additions for significant replacements of property are charged to property, plant, and equipment at cost; and minor items are charged to maintenance expense. Depreciation rates on utility property are approved by the PSCW, based on the estimated economic lives of property, and include estimates for salvage value and removal costs. Removal costs of utility property, less any salvage value, are adjusted through regulatory liabilities. Depreciation rates on nonregulated property are based on the estimated economic lives of the property. See Footnote 3 for further information. | |||||||||
Provisions at composite straight-line depreciation rates approximate the following percentages for the cost of depreciable property: | |||||||||
2014 | 2013 | 2012 | |||||||
Electric | 2.60% | 2.70% | 2.90% | ||||||
Gas | 1.70% | 1.70% | 1.70% | ||||||
Nonregulated | 2.40% | 2.30% | 2.30% | ||||||
k. Asset Retirement Obligations - MGE Energy and MGE. | |||||||||
MGE Energy and MGE are required to record a liability for the fair value of an ARO to be recognized in the period in which it is incurred if it can be reasonably estimated. The offsetting associated asset retirement costs are capitalized as a long-lived asset and depreciated over the asset’s useful life. The expected present value technique used to calculate the fair value of ARO liabilities includes assumptions about costs, probabilities, settlement dates, interest accretion, and inflation. Revisions to the assumptions, including the timing or amount of expected asset retirement costs, could result in increases or decreases to the AROs. All asset retirement obligations are recorded as other long-term liabilities on our balance sheets. MGE has regulatory treatment and recognizes regulatory assets or liabilities for the timing differences between when we recover legal AROs in rates and when we would recognize these costs. See Footnote 19 for further information. | |||||||||
l. Repairs and Maintenance Expense - MGE Energy and MGE. | |||||||||
MGE utilizes the direct expensing method for planned major maintenance projects. Under this method, MGE expenses all costs associated with major planned maintenance activities as incurred. | |||||||||
m. Purchased Gas Adjustment Clause - MGE Energy and MGE. | |||||||||
MGE's natural gas rates are subject to a fuel adjustment clause designed to recover or refund the difference between the actual cost of purchased gas and the amount included in rates. Differences between the amounts billed to customers and the actual costs recoverable are deferred and recovered or refunded in future periods by means of prospective monthly adjustments to rates. At December 31, 2014 and 2013, MGE had over collected $1.2 million and $1.7 million, respectively. These amounts are included in other current liabilities on the consolidated balance sheet. | |||||||||
n. Revenue Recognition - MGE Energy and MGE. | |||||||||
Operating revenues are recorded as service is rendered or energy is delivered to customers. Meters are read on a systematic basis throughout the month based on established meter-reading schedules. At the end of the month, MGE accrues an estimate for the unbilled amount of energy delivered to customers. The unbilled revenue estimate is based on daily system demand volumes, weather factors, estimated line losses, estimated customer usage by class, and applicable customer rates. | |||||||||
o. Utility Cost Recovery - MGE Energy and MGE. | |||||||||
MGE’s rates include a provision for fuel costs. The PSCW allows Wisconsin utilities to defer electric fuel-related costs, less excess revenues, that fall outside a symmetrical cost tolerance band. Any over/under recovery of the actual costs is determined on an annual basis and will be adjusted in future billings to electric retail customers. Such deferred amounts will be recognized in “Purchased Power Expense” in MGE Energy’s and MGE’s income statement each period. The cumulative effects of these deferred amounts will be recorded in “Regulatory assets” or “Regulatory liabilities” on MGE Energy’s and MGE’s consolidated balance sheets until they are reflected in future billings to customers. See Footnote 17.b. for further information regarding the regulatory rules applicable to the recovery of electric fuel costs. | |||||||||
p. Allowance for Funds Used During Construction - MGE Energy and MGE. | |||||||||
Allowance for funds used during construction is included in utility plant accounts and represents the cost of borrowed funds used during plant construction and a return on shareholders' capital used for construction purposes. In the consolidated income statements, the cost of borrowed funds (AFUDC-debt) is presented as an offset to interest expense and the return on shareholders' capital (AFUDC-equity funds) is shown as an item within other income. For both 2014 and 2013, as approved by the PSCW, MGE capitalized AFUDC-debt and equity on 50% of applicable average construction work in progress at 8.21%. For 2012, MGE capitalized AFUDC-debt and equity on 50% of applicable average construction work in progress at 8.36%. For both 2014 and 2012, MGE received specific approval to recover 100% AFUDC on certain environmental costs for Columbia and 50% in 2013. Although the allowance does not represent current cash income, it is recovered under the ratemaking process over the service lives of the related properties. See Footnote 20 for further information regarding Columbia AFUDC. | |||||||||
q. Investments - MGE Energy and MGE. | |||||||||
Investments in limited liability companies that have specific ownership accounts in which MGE Energy or MGE's ownership interest is more than minor and are considered to have significant influence are accounted for using the equity method. All other investments are carried at fair value or at cost, as appropriate. See Footnote 4 for further information. | |||||||||
r. Capitalized Software Costs - MGE Energy and MGE. | |||||||||
Property, plant, and equipment includes the net book value of capitalized costs of internal use software totaling $8.4 million and $9.0 million at December 31, 2014 and 2013, respectively. During 2014, 2013, and 2012, MGE recorded $1.6 million, $1.5 million, and $1.3 million, respectively, of amortization expense related to these costs. These costs are amortized on a straight-line basis over the estimated useful lives of the assets. For internal use software, the useful lives range from five to ten years. | |||||||||
s. Impairment of Long-Lived Assets - MGE Energy and MGE. | |||||||||
MGE reviews plant and equipment and other property for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. MGE's policy for determining when long-lived assets are impaired is to recognize an impairment loss if the sum of the expected future cash flows (undiscounted and without interest charges) from an asset are less than the carrying amount of that asset. If an impairment loss is recognized, the amount that will be recorded will be measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. There is no impairment of long-lived assets at December 31, 2014, 2013, and 2012. | |||||||||
t. Income Taxes and Excise Taxes - MGE Energy and MGE. | |||||||||
Income taxes | |||||||||
Under the liability method, income taxes are deferred for all temporary differences between pretax financial and taxable income and between the book and tax basis of assets and liabilities using the tax rates scheduled by law to be in effect when the temporary differences reverse. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not. A valuation allowance is recorded for those benefits that do not meet this criterion. | |||||||||
Accounting for uncertainty in income taxes applies to all tax positions and requires a recognition threshold and measurement standard for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in an income tax return. The threshold is defined for recognizing tax return positions in the financial statements as "more likely than not" that the position is sustainable, based on its merits. Subsequent recognition, derecognition, and measurement is based on management's best judgment given the facts, circumstances, and information available at the reporting date. | |||||||||
Regulatory and accounting principles have resulted in a regulatory liability related to income taxes. Excess deferred income taxes result from past taxes provided at rates higher than current rates. The income tax regulatory liability and deferred investment tax credit reflect the revenue requirement associated with the return of these tax benefits to customers. | |||||||||
Investment tax credits from regulated operations are amortized over related property service lives. | |||||||||
Excise taxes | |||||||||
MGE Energy, through its utility operations, pays a state license fee tax in lieu of property taxes on property used in utility operations. License fee tax is calculated as a percentage of adjusted operating revenues of the prior year. The electric tax rate is 3.19% for retail sales and 1.59% for sales of electricity for resale by the purchaser. The tax rate on sales of natural gas is 0.97%. The tax is required to be estimated and prepaid in the year prior to its computation and expensing. License fee tax expense, included in other general taxes, was $14.6 million, $13.8 million, and $13.5 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
Operating income taxes, including tax credits and license fee tax, are included in rates for utility related items. | |||||||||
u. Share-Based Compensation - MGE Energy and MGE. | |||||||||
Under two separate incentive plans, eligible participants, including employees and non-employee directors, may receive performance units that entitle the holder to receive a cash payment equal to the value of a designated number of shares of MGE Energy's common stock, plus dividend equivalent payments thereon, at the end of the set performance period. Under the plans, these awards are subject to a prescribed vesting schedule and must be settled in cash. Accordingly, no new shares of common stock are issued in connection with the plans. | |||||||||
MGE Energy and MGE initially measure the cost of the employee or director services received in exchange for a performance unit award based on the current market value of MGE Energy common stock. The fair value of the award is subsequently re-measured at each reporting date through the settlement date. Changes in fair value during the requisite period are recognized as compensation cost over that period. | |||||||||
See Footnote 14 for additional information regarding the plans. | |||||||||
v. Treasury Stock - MGE Energy. | |||||||||
Treasury shares are recorded at cost. Any shares of common stock repurchased are held as treasury shares unless cancelled or reissued. No treasury shares are held as of December 31, 2014 and 2013. | |||||||||
w. Comprehensive Income - MGE Energy and MGE. | |||||||||
Total comprehensive income includes all changes in equity during a period except those resulting from investments by and distributions to shareholders. Comprehensive income is reflected in the consolidated statements of comprehensive income. | |||||||||
x. Derivative and Hedging Instruments - MGE Energy and MGE. | |||||||||
As part of regular operations, MGE enters into contracts, including options, swaps, futures, forwards, and other contractual commitments, to manage its exposure to commodity prices and gas revenues. MGE recognizes all derivatives in the consolidated balance sheets at fair value, with changes in the fair value of derivative instruments to be recorded in current earnings or deferred in accumulated other comprehensive income (loss), depending on whether a derivative is designated as, and is effective as, a hedge and on the type of hedge transaction. Derivative activities are in accordance with the company's risk management policy. | |||||||||
If the derivative qualifies for regulatory deferral, the derivatives are marked to fair value and any resulting loss or gain is offset with a corresponding regulatory asset or liability. Cash flows from such derivative instruments are classified on a basis consistent with the nature of the underlying hedged item. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Variable Interest Entities Disclosure [Abstract] | |||||||
Variable Interest Entities | Variable Interest Entities - MGE Energy and MGE. | ||||||
a. MGE Power Elm Road. | |||||||
MGE Power Elm Road is not a subsidiary of MGE; however, it has been consolidated in the financial statements of MGE. MGE Power Elm Road was created for the purpose of owning new generating assets. Its sole principal assets are an undivided ownership interest in two coal-fired generating plants located in Oak Creek, Wisconsin, which it leases to MGE pursuant to long-term leases. Based on the nature and terms of the contractual agreements, MGE is expected to absorb a majority of the expected losses, residual value, or both, associated with the ownership of MGE Power Elm Road and therefore holds a variable interest in MGE Power Elm Road, even though it has no equity interest in MGE Power Elm Road. MGE Energy and MGE consolidate VIEs for which they are the primary beneficiary. MGE has the power to direct the activities that most significantly impact the Elm Road Units’ economic performance and is also the party most closely associated with MGE Power Elm Road. As a result, MGE is the primary beneficiary. At December 31, MGE has included the following significant accounts on its consolidated balance sheet related to its interest in this VIE: | |||||||
(In thousands) | 2014 | 2013 | |||||
Property, plant, and equipment, net | $ | 179,620 | $ | 182,657 | |||
Construction work in progress | 1,976 | 1,115 | |||||
Affiliate receivables | 1,742 | - | |||||
Deferred income tax asset - current | - | 219 | |||||
Deferred income tax liability | 40,044 | 34,141 | |||||
Long-term debt | 67,972 | 70,639 | |||||
Noncontrolling interest | 72,537 | 69,876 | |||||
Long-term debt consists of $68.0 million of senior secured notes that require that MGE Power Elm Road maintain a projected and actual debt service coverage ratio at the end of any calendar quarter of not less than 1.25 to 1.00 for the trailing 12-month period. The debt is secured by a collateral assignment of lease payments that MGE is making to MGE Power Elm Road for use of the Elm Road Units pursuant to the related long-term leases. As of December 31, 2014, MGE Power Elm Road is in compliance with the covenant requirements. | |||||||
MGE has been and will continue to recover in rates the lease payments made to MGE Power Elm Road. MGE received approval from the PSCW to collect in rates the carrying costs incurred by MGE Power Elm Road. The total carrying costs on the Elm Road Units is $62.5 million. MGE is collecting carrying costs in rates over a six year period that began in 2010. Of these costs, $17.0 million relates to the capitalized interest and the debt portion of the units. These costs will be recognized over the period in which the generating units will be depreciated. The remaining $45.5 million represents the equity portion and is being recognized over the period allowed for recovery in rates. | |||||||
b. MGE Power West Campus. | |||||||
MGE Power West Campus is not a subsidiary of MGE; however, it has been consolidated in the financial statements of MGE. MGE Power West Campus was created for the purpose of owning new generating assets. Its sole principal asset is the WCCF, which it leases to MGE pursuant to a long-term lease. MGE is responsible for operation of the plant during the term of the lease. Based on the nature and terms of these contractual relationships, MGE absorbs a majority of the expected losses, residual value, or both, associated with the ownership and operation of the WCCF and therefore holds a variable interest in MGE Power West Campus, even though it has no equity interest in MGE Power West Campus. MGE has the power to direct the activities that most significantly impact WCCF’s economic performance and is also the party most closely associated with MGE Power West Campus. As a result, MGE is the primary beneficiary. At December 31, MGE has included the following significant accounts on its consolidated balance sheet related to its interest in this VIE: | |||||||
(In thousands) | 2014 | 2013 | |||||
Property, plant, and equipment, net | $ | 86,763 | $ | 89,564 | |||
Affiliate receivables | 5,862 | 6,767 | |||||
Accrued interest and taxes | 569 | 4,888 | |||||
Deferred income taxes | 23,813 | 23,154 | |||||
Long-term debt | 48,218 | 49,653 | |||||
Noncontrolling interest | 30,755 | 29,089 | |||||
Long-term debt consists of $48.2 million of senior secured notes that require that MGE Power West Campus maintain a projected debt service coverage ratio of not less than 1.25 to 1.00 and debt to total capitalization ratio of not more than 0.65 to 1.00. The debt is secured by a collateral assignment of lease payments that MGE is making to MGE Power West Campus for use of the cogeneration facility pursuant to the long-term lease. As of December 31, 2014, MGE Power West Campus is in compliance with the covenant requirements. | |||||||
MGE has been and will continue to recover lease payments made to MGE Power West Campus in rates. Also, MGE received approval from the PSCW to collect approximately $12.1 million in carrying costs incurred by MGE Power West Campus during construction of the facility. The carrying costs are being recovered in rates over a 10 year period that started in 2005. | |||||||
c. Other Variable Interest Entities. | |||||||
MGE has a variable interest in entities through purchase power agreements relating to purchased energy from the facilities. As of December 31, 2014 and 2013, MGE had 61 megawatts of capacity available under these agreements. MGE evaluated the variable interest entities for possible consolidation. The interest holder is considered the primary beneficiary of the entity and is required to consolidate the entity if the interest holder has the power to direct the activities that most significantly impact the economics of the variable interest entity. MGE examined qualitative factors such as the length of the remaining term of the contracts compared with the remaining lives of the plants, who has the power to direct the operations and maintenance of the facilities, and other factors, and determined MGE is not the primary beneficiary of the variable interest entities. There is not a significant potential exposure to loss as a result of involvement with these variable interest entities. |
Property_Plant_and_Equipment
Property, Plant, and Equipment | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Property, Plant and Equipment | Property, Plant, and Equipment - MGE Energy and MGE. | |||||||||||
Property, plant, and equipment consisted of the following at December 31: | ||||||||||||
MGE Energy | MGE | |||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||
Utility: | ||||||||||||
Electric | $ | 1,110,953 | $ | 953,290 | $ | 1,110,970 | $ | 953,307 | ||||
Gas | 369,975 | 351,694 | 369,987 | 351,705 | ||||||||
Total utility plant | 1,480,928 | 1,304,984 | 1,480,957 | 1,305,012 | ||||||||
Less: Accumulated depreciation and amortization | 559,615 | 560,066 | 559,615 | 560,066 | ||||||||
In-service utility plant, net | 921,313 | 744,918 | 921,342 | 744,946 | ||||||||
Nonregulated: | ||||||||||||
Nonregulated | 313,152 | 311,742 | 312,314 | 310,745 | ||||||||
Less: Accumulated depreciation and amortization | 45,388 | 37,851 | 45,305 | 37,814 | ||||||||
In-service nonregulated plant, net | 267,764 | 273,891 | 267,009 | 272,931 | ||||||||
Construction work in progress: | ||||||||||||
Utility construction work in progress | 16,988 | 140,301 | 16,988 | 140,301 | ||||||||
Nonregulated construction work in progress | 2,041 | 1,114 | 2,041 | 1,114 | ||||||||
Total property, plant, and equipment | $ | 1,208,106 | $ | 1,160,224 | $ | 1,207,380 | $ | 1,159,292 | ||||
MGE's utility plant is subject to the lien of its Indenture of Mortgage and Deed of Trust. As of December 31, 2014 and 2013, there was $1.2 million of bonds outstanding under that indenture. See Footnote 9 for further discussion of the mortgage indenture. |
Investments
Investments | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Investments Disclosure [Abstract] | |||||||||||||||
Investments | Investments - MGE Energy and MGE. | ||||||||||||||
a. Equity Method Investments, Available for Sale Securities, and Other Investments. | |||||||||||||||
MGE Energy | MGE | ||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Available for sale securities: | |||||||||||||||
Cost basis | $ | 1,964 | $ | 1,736 | $ | 489 | $ | 490 | |||||||
Gross unrealized gains | 765 | 629 | 240 | 321 | |||||||||||
Fair value | $ | 2,729 | $ | 2,365 | $ | 729 | $ | 811 | |||||||
Equity method investments: | |||||||||||||||
ATC | $ | 67,673 | $ | 64,488 | $ | 67,673 | $ | 64,488 | |||||||
Other | 1,199 | 1,099 | - | - | |||||||||||
Total equity method investments | $ | 68,872 | $ | 65,587 | $ | 67,673 | $ | 64,488 | |||||||
Other investments | 159 | - | - | - | |||||||||||
Total | $ | 71,760 | $ | 67,952 | $ | 68,402 | $ | 65,299 | |||||||
MGE Energy's and MGE's available for sale securities represent publicly traded securities and private equity investments in common stock of companies in various industries. | |||||||||||||||
During the years ended December 31, 2014 and 2013, certain investments were liquidated. As a result of these liquidations, MGE Energy and MGE received the following: | |||||||||||||||
MGE Energy | MGE | ||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||
Cash proceeds | $ | 38 | $ | 39 | $ | - | $ | - | $ | 16 | $ | - | |||
Gain (loss) on sale | 21 | 2 | - | - | -3 | - | |||||||||
b. ATC. | |||||||||||||||
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, which is jointly owned by MGE Energy and MGE. | |||||||||||||||
MGE Transco has accounted for its investment in ATC under the equity method of accounting. For the years ended December 31, 2014, 2013, and 2012, MGE Transco recorded the following: | |||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||
Equity in earnings from investment in ATC | $ | 9,150 | $ | 9,434 | $ | 9,079 | |||||||||
Dividends received from ATC | 7,740 | 7,404 | 7,146 | ||||||||||||
Capital contributions to ATC | 1,775 | 1,420 | 2,131 | ||||||||||||
On January 30, 2015, MGE Transco made a $0.2 million capital contribution to ATC. | |||||||||||||||
At December 31, 2014 and 2013, MGE Transco held a 3.6% ownership interest in ATC. MGE Transco's investment balance is different from the amount of the underlying equity in the net assets of ATC. This difference is attributable to the allocation of certain tax impacts related to the initial asset transfer. | |||||||||||||||
At December 31, 2014 and 2013, MGE is the majority owner, and MGE Energy, the holding company, is the minority owner of MGE Transco. MGE Energy's proportionate share of the equity and net income of MGE Transco is classified within the MGE financial statements as noncontrolling interest. | |||||||||||||||
ATC's summarized financial data for the years ended December 31, 2014, 2013, and 2012 is as follows: | |||||||||||||||
(In thousands) | |||||||||||||||
Income statement data for the year ended December 31, | 2014 | 2013 | 2012 | ||||||||||||
Operating revenues | $ | 635,033 | $ | 626,336 | $ | 603,254 | |||||||||
Operating expenses | -307,451 | -295,069 | -280,999 | ||||||||||||
Other income (expense) | 117 | 831 | -2,533 | ||||||||||||
Interest expense, net | -88,970 | -84,484 | -82,296 | ||||||||||||
Earnings before members' income taxes | $ | 238,729 | $ | 247,614 | $ | 237,426 | |||||||||
Balance sheet data as of December 31, | 2014 | 2013 | 2012 | ||||||||||||
Current assets | $ | 66,410 | $ | 80,715 | $ | 63,134 | |||||||||
Noncurrent assets | 3,728,675 | 3,509,517 | 3,274,704 | ||||||||||||
Total assets | $ | 3,795,085 | $ | 3,590,232 | $ | 3,337,838 | |||||||||
Current liabilities | $ | 313,065 | $ | 381,467 | $ | 251,541 | |||||||||
Long-term debt | 1,701,000 | 1,550,000 | 1,550,000 | ||||||||||||
Other noncurrent liabilities | 163,818 | 126,167 | 95,829 | ||||||||||||
Members' equity | 1,617,202 | 1,532,598 | 1,440,468 | ||||||||||||
Total members' equity and liabilities | $ | 3,795,085 | $ | 3,590,232 | $ | 3,337,838 |
Joint_Plant_Ownership
Joint Plant Ownership | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Regulated Operations [Abstract] | |||||||
Joint Plant Ownership | Joint Plant Ownership - MGE Energy and MGE. | ||||||
a. Columbia. | |||||||
MGE and two other utilities jointly own Columbia, a coal-fired generating facility located in Portage, Wisconsin, which accounts for 31% (239 MW) of MGE's net summer rated capacity. Power from this facility is shared in proportion to each company's ownership interest. MGE has a 22% ownership interest in Columbia. The other owners are WPL, which operates Columbia, and WPSC. MGE's share of fuel, operating, and maintenance expenses for Columbia were $28.1 million, $37.5 million, and $36.3 million for the years ended December 31, 2014, 2013, and 2012, respectively. See Footnote 20 for discussion of MGE's future capital commitments in respect to the environmental projects at Columbia as a result of this ownership interest. | |||||||
Each owner provides its own financing and reflects its respective portion of facilities and operating costs in its financial statements. MGE's interest in Columbia, included in its gross utility plant in service, and the related accumulated depreciation reserves at December 31 were as follows: | |||||||
(In thousands) | 2014 | 2013 | |||||
Utility plant | $ | 268,597 | $ | 123,097 | |||
Accumulated depreciation | -80,645 | -78,880 | |||||
Property, plant, and equipment, net | $ | 187,952 | $ | 44,217 | |||
Construction work in progress | 6,941 | 120,858 | |||||
Total property, plant, and equipment | $ | 194,893 | $ | 165,075 | |||
b. Elm Road. | |||||||
MGE Power Elm Road owns an 8.33% ownership interest in each of two 615 MW coal-fired generating units in Oak Creek, Wisconsin, which accounts for 14% (106 MW) of MGE’s net summer rated capacity. Unit 1 entered commercial operation on February 2, 2010. Unit 2 entered commercial operation on January 12, 2011. MGE Power Elm Road's sole principal asset is that ownership interest in those generating units. MGE Power Elm Road’s interest in the Elm Road Units is leased to MGE pursuant to long-term leases. | |||||||
The remainder of the ownership interest in the Elm Road Units is held by two other entities, one of which is also responsible for the Units’ operation. Each owner provides its own financing and reflects its respective portion of the facility and costs in its financial statements. MGE’s share of fuel, operating, and maintenance expenses for the Elm Road Units were $20.3 million, $13.4 million, and $13.2 million for the years ended December 31, 2014, 2013, and 2012, respectively. MGE Power Elm Road’s interest in the portion of the Elm Road Units in-service and the related accumulated depreciation reserves at December 31 were as follows: | |||||||
(In thousands) | 2014 | 2013 | |||||
Nonregulated plant | $ | 199,582 | $ | 198,198 | |||
Accumulated depreciation | -19,962 | -15,541 | |||||
Property, plant, and equipment, net | $ | 179,620 | $ | 182,657 | |||
Construction work in progress | 1,976 | 1,115 | |||||
Total property, plant, and equipment | $ | 181,596 | $ | 183,772 | |||
c. WCCF. | |||||||
MGE Power West Campus and the UW jointly own the West Campus Cogeneration Facility located on the UW campus in Madison, Wisconsin. MGE Power West Campus owns 55% of the facility and the UW owns 45% of the facility. The UW owns a controlling interest in the chilled-water and steam plants, which are used to meet the growing needs for air-conditioning and steam-heat capacity for the UW campus. MGE Power West Campus owns a controlling interest in the electric generation plant, which is leased and operated by MGE. | |||||||
Each owner provides its own financing and reflects its respective portion of the facility and operating costs in its financial statements. MGE Power West Campus' interest in WCCF and the related accumulated depreciation reserves at December 31 were as follows: | |||||||
(In thousands) | 2014 | 2013 | |||||
Nonregulated plant | $ | 111,453 | $ | 111,268 | |||
Accumulated depreciation | -24,691 | -21,704 | |||||
Property, plant, and equipment, net | $ | 86,762 | $ | 89,564 | |||
Operating charges are allocated to the UW based on formulas contained in the operating agreement. Under the provisions of this arrangement, the UW is required to reimburse MGE for their allocated portion of fuel and operating expenses. For the year ended December 31, 2014, the UW allocated share of fuel and operating costs was $2.8 million. For the years ended December 31, 2013 and 2012, the UW allocated share of fuel and operating costs was $4.9 million. |
Regulatory_Assets_and_Liabilit
Regulatory Assets and Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities - MGE Energy and MGE. | ||||||||
The following regulatory assets and liabilities are reflected in MGE's consolidated balance sheet as of December 31: | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Regulatory Assets | |||||||||
Asset retirement obligation | $ | 4,532 | $ | 4,863 | |||||
Debt related costs | 11,133 | 11,786 | |||||||
Derivatives | 54,998 | 63,893 | |||||||
Environmental costs | 700 | 920 | |||||||
Tax recovery related to AFUDC equity | 8,821 | 6,956 | |||||||
Unfunded pension and other postretirement liability | 84,551 | 24,591 | |||||||
Other | 448 | 534 | |||||||
Total regulatory assets | $ | 165,183 | $ | 113,543 | |||||
Regulatory Liabilities | |||||||||
Conservation costs | $ | 680 | $ | 455 | |||||
Deferred fuel savings | 755 | 13,386 | |||||||
Elm Road | 1,497 | 607 | |||||||
Income taxes | 1,794 | 2,082 | |||||||
Non-ARO removal costs | 16,129 | 15,182 | |||||||
Renewable energy credits | 753 | 574 | |||||||
Other | 1,107 | 1,044 | |||||||
Total regulatory liabilities | $ | 22,715 | $ | 33,330 | |||||
MGE expects to recover its regulatory assets and return its regulatory liabilities through rates charged to customers based on PSCW decisions made during the ratemaking process or based on PSCW long-standing policies and guidelines. The adjustments to rates for these regulatory assets and liabilities will occur over the periods either specified by the PSCW or over the corresponding period related to the asset or liability. We believe it is probable that MGE will continue to recover from customers the regulatory assets described above based on prior and current ratemaking treatment for such costs. All regulatory assets for which a cash outflow had been made are earning a return, except for amounts expended for environmental costs. | |||||||||
Asset Retirement Obligation | |||||||||
See Footnote 19 for further discussion. | |||||||||
Debt Related Costs | |||||||||
This balance includes debt issuance costs of extinguished debt and other debt related expenses. The PSCW has allowed rate recovery on unamortized issuance costs for extinguished debt facilities. When the facility replacing the old facility is deemed by the PSCW to be more favorable for the ratepayers, the PSCW will allow rate recovery of any unamortized issuance costs related to the old facility. These amounts are recovered over the term of the new facility. | |||||||||
In 2013, MGE issued long-term debt and used the net proceeds to redeem Medium-Term Notes and partially redeem Senior Notes. Included in the redemption prices were make-whole premiums totalling $6.8 million. The make-whole premiums are treated as a regulatory asset and will be amortized over the life of the long-term debt issued. | |||||||||
Derivatives | |||||||||
MGE has physical and financial contracts that are defined as derivatives. The amounts recorded for the net mark-to-market value of the commodity based contracts is offset with a corresponding regulatory asset or liability because these transactions are part of the PGA or fuel rules clause authorized by the PSCW. A significant portion of the recorded amount is related to a ten-year purchased power agreement that provides MGE with firm capacity and energy during a base term from June 1, 2012 through May 31, 2022. This agreement is accounted for as a derivative contract. See Footnote 16 for further discussion. | |||||||||
Environmental Costs | |||||||||
MGE has been allowed to defer actual costs on certain environmental matters, including clean up of two landfill sites and legal expenditures pertaining to the response to the EPA Clean Air Act enforcement matter at Columbia. For further discussion of the Columbia Clean Air Act litigation, see Footnote 18.d. | |||||||||
Tax Recovery Related to AFUDC Equity | |||||||||
AFUDC equity represents the after-tax equity cost associated with utility plant construction and results in a temporary difference between the book and tax basis of such plant. It is probable under PSCW regulation that MGE will recover in future rates the future increase in taxes payable represented by the deferred income tax liability. The amounts will be recovered in rates over the depreciable life of the asset for which AFUDC was applied. Tax recovery related to AFUDC equity represents the revenue requirement related to recovery of these future taxes payable, calculated at current statutory tax rates. | |||||||||
Unfunded Pension and Other Postretirement Liability | |||||||||
MGE is required to recognize the unfunded status of defined benefit pension and other postretirement pension plans as a net liability or asset on the balance sheet with an offset to a regulatory asset. The unfunded status represents future expenses that are expected to be recovered in rates. See Footnote 13 for further discussion. | |||||||||
Conservation Costs | |||||||||
MGE has received regulatory treatment for certain conservation expenditures. The expenditures are used for Focus on Energy programs, Wisconsin’s statewide energy efficiency and renewable resource program, to promote energy efficiency on the customer's premises. Costs for Focus on Energy programs are estimated in MGE's rates utilizing escrow accounting. The escrow accounting allows the utility to true-up its actual costs incurred and reflect the amount of the true-up in its next rate case filing and amortize the amount over the rate case period. | |||||||||
Deferred Fuel Savings | |||||||||
The fuel rules require the PSCW and Wisconsin utilities to defer electric fuel-related costs that fall outside a symmetrical cost tolerance band. Any over/under recovery of the actual costs is determined on an annual basis and is adjusted in future billings to electric retail customers. Under the electric fuel rules, MGE is required to defer the benefit of lower costs if the actual electric fuel costs fall outside the lower end of the range and is required to defer costs, less any excess revenues, if the actual electric fuel costs exceed the upper end of the range. 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. See Footnote 17.b. for further discussion. | |||||||||
Elm Road | |||||||||
Costs associated with Elm Road are estimated in MGE’s rates utilizing escrow accounting and include costs for lease payments, management fees, community impact mitigation, and operating costs. Also, MGE has deferred payments made to MGE Power Elm Road for carrying costs during construction of the facility. MGE is collecting carrying costs in rates over a six year period that began in 2010. All other costs are collected in rates over a one to two year period. | |||||||||
Income Taxes | |||||||||
Excess deferred income taxes result from past taxes provided at rates higher than current rates. The regulatory liability and deferred investment tax credit reflects the revenue requirement associated with the return of these tax benefits to customers. | |||||||||
Non-ARO Removal Costs | |||||||||
In connection with accounting for asset retirement obligations, companies are required to reclassify cumulative collections for non-ARO removal costs as a regulatory liability, with an offsetting entry to accumulated depreciation. Under the current rate structure, these removal costs are being recovered as a component of depreciation expense. | |||||||||
Renewable Energy Credits | |||||||||
MGE receives renewable energy credits from certain purchase power agreements. The value of the credits are recorded as inventory and expensed when the credit is redeemed or expired. A regulatory liability has been established for the value of the renewable energy credits included in inventory. In Wisconsin, renewable energy credits expire four years after the year of acquisition. |
Common_Equity
Common Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Common Equity | Common Equity. |
a. Common Stock - MGE Energy and MGE. | |
On December 20, 2013, MGE Energy’s Board of Directors declared a three-for-two stock split of MGE Energy’s outstanding shares of common stock, effective in the form of a stock dividend. Shareholders of record at the close of business on January 24, 2014 received one additional share of MGE Energy common stock for every two shares of common stock owned on that date. The additional shares were distributed on February 7, 2014. Shareholders received cash in lieu of any fractional shares of common stock they otherwise would have received in connection with the dividend. All share and per share data provided in this report give effect to this stock split. | |
MGE Energy sells shares of its common stock through its Stock Plan. Those shares may be newly issued shares or shares that MGE Energy has purchased in the open market for resale to participants in the Stock Plan. All sales under the stock plan are covered by a shelf registration statement that MGE Energy filed with the SEC. For the years ended December 31, 2014 and 2013, MGE Energy did not issue any new shares of common stock under the Stock Plan. | |
MGE Energy purchases shares on the open market to provide shares to meet obligations to participants in the Stock Plan. The shares are purchased on the open market through a securities broker-dealer and then are reissued under the Stock Plan as needed to meet share delivery requirements. The volume and timing of share repurchases in the open market depends upon the level of dividend reinvestment and optional share purchases being made from time to time by plan participants. As a result, there is no specific maximum number of shares to be repurchased and no specified termination date for the repurchases. | |
During the years ended December 31, 2014 and 2013, MGE Energy paid $38.4 million (or $1.11 per share) and $37.1 million (or $1.07 per share), respectively, in cash dividends on its common stock. Dividends on common stock at MGE are subject to restrictions imposed by the PSCW and the covenants of MGE's outstanding first mortgage bonds. See Footnote 9 for further discussion of these covenants. During the years ended December 31, 2014 and 2013, MGE paid $26.5 million and $25.0 million, respectively, in cash dividends to MGE Energy. | |
b. Dilutive Shares Calculation - MGE Energy. | |
MGE Energy does not hold any dilutive securities. |
Noncontrolling_Interest
Noncontrolling Interest | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Noncontrolling Interest | Noncontrolling Interest - MGE. | ||||||||
The noncontrolling interest on MGE’s balance sheet at December 31 was as follows: | |||||||||
(In thousands) | 2014 | 2013 | |||||||
MGE Power Elm Road (a) | $ | 72,537 | $ | 69,876 | |||||
MGE Power West Campus (a) | 30,755 | 29,089 | |||||||
MGE Transco (b) | 22,397 | 19,998 | |||||||
Total noncontrolling interest | $ | 125,689 | $ | 118,963 | |||||
The net income attributable to noncontrolling interest, net of tax, for the years ended December 31, 2014, 2013, and 2012 was as follows: | |||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||
MGE Power Elm Road (a) | $ | 16,160 | $ | 17,373 | $ | 14,837 | |||
MGE Power West Campus (a) | 7,666 | 7,657 | 7,506 | ||||||
MGE Transco (b) | 2,484 | 2,408 | 2,146 | ||||||
Net income attributable to noncontrolling interest, net of tax | $ | 26,310 | $ | 27,438 | $ | 24,489 | |||
(a) MGE Power Elm Road and MGE Power West Campus are not subsidiaries of MGE; however, they have been consolidated in the consolidated financial statements of MGE (see Footnote 2). MGE Power Elm Road and MGE Power West Campus are 100% owned by MGE Power, and MGE Power is 100% owned by MGE Energy. MGE Energy's proportionate share of the equity and net income (through its wholly owned subsidiary MGE Power) of MGE Power Elm Road and MGE Power West Campus is classified within the MGE financial statements as noncontrolling interest. | |||||||||
(b) At December 31, 2014, MGE is the majority owner, and MGE Energy is the minority owner, of MGE Transco. MGE Energy's proportionate share of the equity and net income of MGE Transco is classified within the MGE financial statements as noncontrolling interest. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Long-Term Debt | Long-Term Debt - MGE Energy and MGE. | |||||||||||
a. Long-Term Debt. | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | MGE Energy | MGE | MGE Energy | MGE | ||||||||
First Mortgage Bonds: (a) | ||||||||||||
7.70%, 2028 Series | $ | 1,200 | $ | 1,200 | $ | 1,200 | $ | 1,200 | ||||
Tax Exempt Debt: | ||||||||||||
3.45%, 2027 Series, | ||||||||||||
Industrial Development Revenue Bonds | 19,300 | 19,300 | 19,300 | 19,300 | ||||||||
Medium-Term Notes: (b) | ||||||||||||
5.25%, due 2017 | 30,000 | 30,000 | 30,000 | 30,000 | ||||||||
6.12%, due 2028 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||
7.12%, due 2032 | 25,000 | 25,000 | 25,000 | 25,000 | ||||||||
6.247%, due 2037 | 25,000 | 25,000 | 25,000 | 25,000 | ||||||||
Total Medium-Term Notes | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||
Other Long-Term Debt: (c) | ||||||||||||
5.59%, due 2018 (d) | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||
3.38%, due 2020 (d) | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||
3.09%, due 2023 (d) | 30,000 | 30,000 | 30,000 | 30,000 | ||||||||
3.29%, due 2026 (d) | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||
5.68%, due 2033 (e) | 28,954 | 28,954 | 29,797 | 29,797 | ||||||||
5.19%, due 2033 (e) | 19,264 | 19,264 | 19,857 | 19,857 | ||||||||
5.26%, due 2040 (d) | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||
5.04%, due 2040 (f) | 41,805 | 41,805 | 43,472 | 43,472 | ||||||||
4.74%, due 2041 (f) | 26,167 | 26,167 | 27,167 | 27,167 | ||||||||
4.38%, due 2042 (d) | 28,000 | 28,000 | 28,000 | 28,000 | ||||||||
4.42%, due 2043 (d) | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||
4.47%, due 2048 (d) | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||
Total Other Long-Term Debt | 279,190 | 279,190 | 283,293 | 283,293 | ||||||||
Long-term debt due within one year | -4,182 | -4,182 | -4,102 | -4,102 | ||||||||
Unamortized discount | -252 | -252 | -277 | -277 | ||||||||
Total Long-Term Debt | $ | 395,256 | $ | 395,256 | $ | 399,414 | $ | 399,414 | ||||
(a) MGE's utility plant is subject to the lien of its Indenture of Mortgage and Deed of Trust, under which its first mortgage bonds are issued. The Mortgage Indenture provides that dividends or any other distribution or purchase of shares may not be made if the aggregate amount thereof since December 31, 1945 would exceed the earned surplus (retained earnings) accumulated subsequent to December 31, 1945. As of December 31, 2014, approximately $334.8 million was available for the payment of dividends under this covenant. | ||||||||||||
(b) The indenture under which MGE's Medium-Term notes are issued provides that those notes will be entitled to be equally and ratably secured in the event that MGE issues any additional first mortgage bonds. | ||||||||||||
(c) Unsecured notes issued pursuant to various Note Purchase Agreements with one or more purchasers. The notes are not issued under, or governed by, MGE’s Indenture dated as of September 1, 1998, which governs MGE’s Medium-Term Notes. | ||||||||||||
(d) Issued by MGE. Under that Note Purchase Agreement: (i) note holders have the right to require MGE to repurchase their notes at par in the event of an acquisition of beneficial ownership of 30% or more of the outstanding voting stock of MGE Energy, (ii) MGE must maintain a ratio of its consolidated indebtedness to consolidated total capitalization not to exceed a maximum of 65%, and (iii) MGE cannot issue "Priority Debt" in an amount exceeding 20% of its consolidated assets. Priority Debt is defined as any indebtedness of MGE secured by liens other than specified liens permitted by the Note Purchase Agreement and certain unsecured indebtedness of certain subsidiaries. As of December 31, 2014, MGE is in compliance with the covenant requirements. | ||||||||||||
(e) Issued by MGE Power West Campus. The Note Purchase Agreements require it to maintain a projected debt service coverage ratio of not less than 1.25 to 1.00, and debt to total capitalization ratio of not more than 0.65 to 1.00. The notes are secured by a collateral assignment of lease payments that MGE is making to MGE Power West Campus for use of its ownership interest in the West Campus Cogeneration Facility pursuant to a long-term lease. As of December 31, 2014, MGE Power West Campus is in compliance with the covenant requirements. | ||||||||||||
(f) Issued by MGE Power Elm Road. The Note Purchase Agreement requires MGE Power Elm Road to maintain a projected and actual debt service coverage ratio at the end of any calendar quarter of not less than 1.25 to 1.00 for the trailing 12-month period. The notes are secured by a collateral assignment of lease payments that MGE is making to MGE Power Elm Road for use of its ownership interest in the Elm Road Units pursuant to long-term leases. As of December 31, 2014, MGE Power Elm Road is in compliance with the covenant requirements. | ||||||||||||
b. Long-Term Debt Maturities. | ||||||||||||
Below is MGE Energy's and MGE's aggregate maturities for all long-term debt for years following the December 31, 2014, consolidated balance sheets. | ||||||||||||
MGE | ||||||||||||
(In thousands) | Energy | MGE * | ||||||||||
2015 | $ | 4,182 | $ | 4,182 | ||||||||
2016 | 4,268 | 4,268 | ||||||||||
2017 | 34,358 | 34,358 | ||||||||||
2018 | 24,452 | 24,452 | ||||||||||
2019 | 4,553 | 4,553 | ||||||||||
Future years | 327,877 | 327,877 | ||||||||||
Total | $ | 399,690 | $ | 399,690 | ||||||||
*Includes $48.2 million for MGE Power West Campus and $68.0 million for MGE Power Elm Road, all of which are consolidated with MGE's debt (see Footnote 2 for further information). |
Notes_Payable_to_Banks_Commerc
Notes Payable to Banks, Commercial Paper, and Lines of Credit | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Notes Payable to Banks, Commercial Paper, and Lines of Credit | Notes Payable to Banks, Commercial Paper, and Lines of Credit. | ||||||||
a. MGE Energy. | |||||||||
At December 31, 2014, MGE Energy had an unsecured, committed revolving line of credit of $50 million expiring July 31, 2017. At December 31, 2014, no borrowings were outstanding under this facility. | |||||||||
The agreement requires MGE Energy to maintain a ratio of its consolidated indebtedness to consolidated total capitalization not to exceed a maximum of 65%. A change in control constitutes a default under the agreement. Change in control events are defined as (i) a failure by MGE Energy to hold 100% of the outstanding voting equity interest in MGE or (ii) the acquisition of beneficial ownership of 30% or more of the outstanding voting stock of MGE Energy by one person or two or more persons acting in concert. As of December 31, 2014, MGE Energy is in compliance with the covenant requirements. | |||||||||
b. MGE. | |||||||||
For short-term borrowings, MGE generally issues commercial paper (issued at the prevailing discount rate at the time of issuance), which is supported by unused committed bank lines of credit. At December 31, 2014, MGE had an unsecured, committed revolving line of credit for $100 million expiring July 31, 2017. The agreement requires MGE to have a period of at least one day, during any 365-day period, on which the principal amount of all outstanding loans thereunder shall be zero. At December 31, 2014, no borrowings were outstanding under this facility; however, there was $7.0 million in commercial paper outstanding. | |||||||||
The agreement requires MGE to maintain a ratio of consolidated debt to consolidated total capitalization not to exceed a maximum of 65%. The ratio calculation excludes assets, liabilities, revenues, and expenses included in MGE's financial statements as the result of the consolidation of VIEs, such as MGE Power West Campus and MGE Power Elm Road. A change in control constitutes a default under the agreement. Change in control events are defined as (i) a failure by MGE Energy to hold 100% of the outstanding voting equity interest in MGE or (ii) the acquisition of beneficial ownership of 30% or more of the outstanding voting stock of MGE Energy by one person or two or more persons acting in concert. As of December 31, 2014, MGE is in compliance with the covenant requirements. | |||||||||
c. MGE Energy and MGE. | |||||||||
Information concerning short-term borrowings for the past three years is shown below: | |||||||||
As of December 31, | |||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||
MGE Energy(a) | |||||||||
Available lines of credit | $ | 150,000 | $ | 150,000 | $ | 115,000 | |||
Short-term debt outstanding | $ | 7,000 | $ | - | $ | - | |||
Weighted-average interest rate | 0.20% | -% | -% | ||||||
During the year: | |||||||||
Maximum short-term borrowings | $ | 9,000 | $ | 32,000 | $ | 16,000 | |||
Average short-term borrowings | $ | 182 | $ | 6,992 | $ | 1,154 | |||
Weighted-average interest rate | 0.24% | 0.18% | 0.17% | ||||||
MGE | |||||||||
Available lines of credit | $ | 100,000 | $ | 100,000 | $ | 75,000 | |||
Commercial paper outstanding | $ | 7,000 | $ | - | $ | - | |||
Weighted-average interest rate | 0.20% | -% | -% | ||||||
During the year: | |||||||||
Maximum short-term borrowings | $ | 9,000 | $ | 32,000 | $ | 16,000 | |||
Average short-term borrowings | $ | 182 | $ | 6,992 | $ | 1,154 | |||
Weighted-average interest rate | 0.24% | 0.18% | 0.17% | ||||||
(a) MGE Energy short-term borrowings include MGE Energy and MGE lines of credit and MGE commercial paper. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial 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 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. | ||||||||||||
At December 31, 2014 and 2013, 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 MGE Energy's and MGE long-term debt is based on quoted market prices for similar financial instruments at December 31. Since long-term debt is not traded in an active market, it is classified as Level 2. The estimated fair market value of MGE Energy's and MGE's financial instruments are as follows: | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||
MGE Energy | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 65,755 | $ | 65,755 | $ | 68,813 | $ | 68,813 | ||||
Liabilities: | ||||||||||||
Short-term debt - commercial paper | 7,000 | 7,000 | - | - | ||||||||
Long-term debt* | 399,690 | 457,420 | 403,793 | 432,010 | ||||||||
MGE | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 4,562 | $ | 4,562 | $ | 14,808 | $ | 14,808 | ||||
Liabilities: | ||||||||||||
Short-term debt - commercial paper | 7,000 | 7,000 | - | - | ||||||||
Long-term debt* | 399,690 | 457,420 | 403,793 | 432,010 | ||||||||
*Includes long-term debt due within one year. | ||||||||||||
b. Recurring Fair Value Measurements. | ||||||||||||
The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for MGE Energy and MGE. | ||||||||||||
Fair Value as of December 31, 2014 | ||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||
MGE Energy | ||||||||||||
Assets: | ||||||||||||
Derivatives, net | $ | 642 | $ | - | $ | - | $ | 642 | ||||
Exchange-traded investments | 927 | 927 | - | - | ||||||||
Total Assets | $ | 1,569 | $ | 927 | $ | - | $ | 642 | ||||
Liabilities: | ||||||||||||
Derivatives, net(a) | $ | 55,640 | $ | 1,012 | $ | - | $ | 54,628 | ||||
Deferred compensation | 2,832 | - | 2,832 | - | ||||||||
Total Liabilities | $ | 58,472 | $ | 1,012 | $ | 2,832 | $ | 54,628 | ||||
MGE | ||||||||||||
Assets: | ||||||||||||
Derivatives, net | $ | 642 | $ | - | $ | - | $ | 642 | ||||
Exchange-traded investments | 350 | 350 | - | - | ||||||||
Total Assets | $ | 992 | $ | 350 | $ | - | $ | 642 | ||||
Liabilities: | ||||||||||||
Derivatives, net(a) | $ | 55,640 | $ | 1,012 | $ | - | $ | 54,628 | ||||
Deferred compensation | 2,832 | - | 2,832 | - | ||||||||
Total Liabilities | $ | 58,472 | $ | 1,012 | $ | 2,832 | $ | 54,628 | ||||
Fair Value as of December 31, 2013 | ||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||
MGE Energy | ||||||||||||
Assets: | ||||||||||||
Derivatives, net | $ | 1,787 | $ | 735 | $ | - | $ | 1,052 | ||||
Exchange-traded investments | 792 | 792 | - | - | ||||||||
Total Assets | $ | 2,579 | $ | 1,527 | $ | - | $ | 1,052 | ||||
Liabilities: | ||||||||||||
Derivatives, net | $ | 65,680 | $ | - | $ | - | $ | 65,680 | ||||
Deferred compensation | 2,364 | - | 2,364 | - | ||||||||
Total Liabilities | $ | 68,044 | $ | - | $ | 2,364 | $ | 65,680 | ||||
MGE | ||||||||||||
Assets: | ||||||||||||
Derivatives, net | $ | 1,787 | $ | 735 | $ | - | $ | 1,052 | ||||
Exchange-traded investments | 431 | 431 | - | - | ||||||||
Total Assets | $ | 2,218 | $ | 1,166 | $ | - | $ | 1,052 | ||||
Liabilities: | ||||||||||||
Derivatives, net | $ | 65,680 | $ | - | $ | - | $ | 65,680 | ||||
Deferred compensation | 2,364 | - | 2,364 | - | ||||||||
Total Liabilities | $ | 68,044 | $ | - | $ | 2,364 | $ | 65,680 | ||||
(a) These amounts are shown gross and exclude $2.2 million and $0.2 million of collateral that was | ||||||||||||
posted against derivative positions with counterparties as of December 31, 2014 and 2013, respectively. | ||||||||||||
No transfers were made in or out of Level 1 or Level 2 for the year ended December 31, 2014. | ||||||||||||
Investments include exchange-traded investment securities valued using quoted prices on active exchanges and are therefore classified as Level 1. | ||||||||||||
Derivatives include exchange-traded derivative contracts, over-the-counter transactions, a ten-year purchased power agreement, 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 ten-year purchased power agreement (see Footnote 16) was valued using an internally-developed pricing model and therefore is classified as Level 3. The model projects future market energy prices and compares those prices to the projected power costs to be incurred under the contract. Inputs to the model require significant management judgment and estimation. Future energy prices are based on a forward power pricing curve using exchange-traded contracts in the electric futures market, where such exchange-traded contracts exist, and upon calculations based on forward gas prices, where such exchange-traded contracts do not exist. A basis adjustment is applied to the market energy price to reflect the price differential between the market price delivery point and the counterparty delivery point. The historical relationship between the delivery points is reviewed and a discount (below 100%) or premium (above 100%) is derived. This comparison is done for both peak times when demand is high and off peak times when demand is low. If the basis adjustment is lowered, the fair value measurement will decrease and if the basis adjustment is increased, the fair value measurement will increase. | ||||||||||||
The projected power costs anticipated to be incurred under the purchased power agreement are determined using many factors, including historical generating costs, future prices, and expected fuel mix of the counterparty. An increase in the projected fuel costs would result in a decrease in the fair value measurement of the purchased power agreement. A significant input that MGE estimates is the counterparty's fuel mix in determining the projected power cost. MGE also considers the assumptions that market participants would use in valuing the asset or liability. This consideration includes assumptions about market risk such as liquidity, volatility, and contract duration. The fair value model uses a discount rate that incorporates discounting, credit, and model risks. | ||||||||||||
This model is prepared by members of MGE’s Energy Accounting group. It is reviewed on a quarterly basis by management in Energy Supply and Finance to review the assumptions, inputs, and fair value measurements. | ||||||||||||
The following table presents the significant unobservable inputs used in the pricing model as of December 31: | ||||||||||||
Model Input | ||||||||||||
Significant Unobservable Inputs | 2014 | 2013 | ||||||||||
Basis adjustment: | ||||||||||||
On peak | 98.10% | 94.20% | ||||||||||
Off peak | 95.00% | 92.60% | ||||||||||
Counterparty fuel mix: | ||||||||||||
Internal generation | 50%-70% | 50%-70% | ||||||||||
Purchased power | 50%-30% | 50%-30% | ||||||||||
The deferred compensation plan allows participants to defer certain cash compensation into a notional investment account. These amounts are included within other deferred liabilities in the consolidated balance sheets of MGE Energy and MGE. The notional investments 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. | ||||||||||||
The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for both MGE Energy and MGE. | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Balance as of January 1, | $ | -64,628 | $ | -72,346 | $ | -40,661 | ||||||
Realized and unrealized gains (losses): | ||||||||||||
Included in regulatory liabilities (assets) | 10,642 | 7,718 | -31,685 | |||||||||
Included in other comprehensive income | - | - | - | |||||||||
Included in earnings | 5,129 | -2,618 | -5,005 | |||||||||
Included in current assets | - | -108 | - | |||||||||
Purchases | 26,382 | 23,726 | 13,370 | |||||||||
Sales | -125 | -2 | 92 | |||||||||
Issuances | - | - | - | |||||||||
Settlements | -31,386 | -20,998 | -8,457 | |||||||||
Transfers in and/or out of Level 3 | - | - | - | |||||||||
Balance as of December 31, | $ | -53,986 | $ | -64,628 | $ | -72,346 | ||||||
Total gains (losses) included in earnings attributed to the | ||||||||||||
change in unrealized gains (losses) related to assets and | ||||||||||||
liabilities held at December 31,(b) | $ | - | $ | - | $ | - | ||||||
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 for both MGE Energy and MGE (b). | ||||||||||||
(In thousands) | ||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | |||||||||
Purchased power expense | $ | 5,137 | $ | -2,618 | $ | -5,005 | ||||||
Cost of gas sold expense | -8 | - | - | |||||||||
Total | $ | 5,129 | $ | -2,618 | $ | -5,005 | ||||||
(b) MGE's exchange-traded derivative contracts, over-the-counter party transactions, ten-year purchased power agreement, 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. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Income Taxes | Income Taxes. | |||||||||||||
a. MGE Energy and MGE Income Taxes. | ||||||||||||||
MGE Energy files a consolidated federal income tax return that includes the operations of all subsidiary companies. The subsidiaries calculate their respective federal income tax provisions as if they were separate taxable entities. | ||||||||||||||
On a consolidated and separate company basis, MGE Energy’s and MGE’s income tax provision consists of the following provision (benefit) components for the years ended December 31: | ||||||||||||||
MGE Energy | MGE | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||
Current payable: | ||||||||||||||
Federal | $ | -891 | $ | -1,508 | $ | -6,053 | $ | 637 | $ | -448 | $ | -5,030 | ||
State | -589 | 8,213 | 436 | -451 | 8,322 | 613 | ||||||||
Net-deferred: | ||||||||||||||
Federal | 39,284 | 37,203 | 37,178 | 38,553 | 36,937 | 36,589 | ||||||||
State | 10,600 | 1,163 | 7,618 | 10,625 | 1,223 | 7,523 | ||||||||
Amortized investment tax credits | -219 | -212 | -260 | -219 | -212 | -260 | ||||||||
Total income tax provision | $ | 48,185 | $ | 44,859 | $ | 38,919 | $ | 49,145 | $ | 45,822 | $ | 39,435 | ||
MGE Energy’s and MGE’s 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 | |||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | ||||||||
State income taxes, net of federal benefit | 5.10% | 5.10% | 5.00% | 5.10% | 5.10% | 5.00% | ||||||||
Amortized investment tax credits | -0.20% | -0.20% | -0.30% | -0.20% | -0.20% | -0.20% | ||||||||
Credit for electricity from wind energy | -1.70% | -1.50% | -1.60% | -1.70% | -1.50% | -1.50% | ||||||||
Domestic manufacturing deduction | -% | -0.20% | 0.30% | -% | -0.20% | 0.30% | ||||||||
AFUDC equity, net | -0.80% | -0.70% | -0.40% | -0.80% | -0.70% | -0.40% | ||||||||
Other, net, individually insignificant | 0.10% | -% | -0.30% | 0.10% | -% | -0.50% | ||||||||
Effective income tax rate | 37.50% | 37.50% | 37.70% | 37.50% | 37.50% | 37.70% | ||||||||
The significant components of deferred tax liabilities (assets) that appear on MGE Energy’s and MGE’s consolidated balance sheets as of December 31 as follows: | ||||||||||||||
MGE Energy | MGE | |||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Property-related | $ | 312,903 | $ | 263,881 | $ | 312,807 | $ | 263,881 | ||||||
Investment in ATC | 36,140 | 32,696 | 29,156 | 27,073 | ||||||||||
Bond transactions | 1,420 | 1,553 | 1,420 | 1,553 | ||||||||||
Pension and other postretirement benefits | 57,847 | 34,478 | 57,847 | 34,478 | ||||||||||
Derivatives | 22,331 | 26,361 | 22,331 | 26,361 | ||||||||||
Tax deductible prepayments | 8,077 | 7,508 | 8,077 | 7,508 | ||||||||||
Other | 10,451 | 1,995 | 10,259 | 1,911 | ||||||||||
Gross deferred income tax liabilities | 449,169 | 368,472 | 441,897 | 362,765 | ||||||||||
Future tax benefit | -4,092 | - | -4,092 | - | ||||||||||
Accrued expenses | -32,091 | -17,195 | -32,091 | -17,195 | ||||||||||
Pension and other postretirement benefits | -44,994 | -26,838 | -44,994 | -26,838 | ||||||||||
Deferred tax regulatory account | -1,211 | -1,402 | -1,211 | -1,402 | ||||||||||
Derivatives | -22,331 | -26,361 | -22,331 | -26,361 | ||||||||||
Other | -5,957 | -10,369 | -3,746 | -9,356 | ||||||||||
Gross deferred income tax assets | -110,676 | -82,165 | -108,465 | -81,152 | ||||||||||
Less valuation allowance | 70 | 195 | 70 | 195 | ||||||||||
Net deferred income tax assets | -110,606 | -81,970 | -108,395 | -80,957 | ||||||||||
Deferred income taxes | $ | 338,563 | $ | 286,502 | $ | 333,502 | $ | 281,808 | ||||||
As of December 31, 2014, MGE Energy and MGE have approximately $16.5 million and $5.4 million of state net operating loss and federal tax carryforwards, respectively. The net operating loss and tax credit carryforwards resulted in deferred tax assets of $0.8 million and $5.4 million, respectively, as of December 31, 2014 that are shown net of $2.0 million of unrecognized tax benefits. | ||||||||||||||
The valuation allowance reduces MGE Energy’s and MGE’s deferred tax assets for state carryforward losses to estimated realizable value due to the uncertainty of future income estimates in various state tax jurisdictions. For tax purposes, as of December 31, 2014, both MGE Energy and MGE had approximately $1.4 million of state tax net operating loss deductions subject to a valuation allowance that expire between 2020 and 2023 if unused. | ||||||||||||||
b. Accounting for Uncertainty in Income Taxes - MGE Energy and MGE. | ||||||||||||||
MGE Energy and MGE account for the difference between the tax benefit amount taken on prior year tax returns, or expected to be taken on a current year tax return, and the tax benefit amount recognized in the financial statements as an unrecognized tax benefit. | ||||||||||||||
A tabular reconciliation of unrecognized tax benefits and interest from January 1, 2012 to December 31, 2014, is as follows: | ||||||||||||||
(In thousands) | ||||||||||||||
Unrecognized tax benefits: | 2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits, January 1, | $ | 2,363 | $ | 3,204 | $ | 2,364 | ||||||||
Additions based on tax positions related to the current year | 610 | 377 | 401 | |||||||||||
Additions based on tax positions related to the prior years | 618 | 424 | 580 | |||||||||||
Reductions based on tax positions related to the current year | - | -40 | - | |||||||||||
Reductions based on tax positions related to the prior years | -1,226 | -1,602 | -141 | |||||||||||
Unrecognized tax benefits, December 31, | $ | 2,365 | $ | 2,363 | $ | 3,204 | ||||||||
(In thousands) | ||||||||||||||
Interest on unrecognized tax benefits: | 2014 | 2013 | 2012 | |||||||||||
Accrued interest on unrecognized tax benefits, January 1, | $ | 101 | $ | 314 | $ | 216 | ||||||||
Reduction in interest expense on uncertain tax positions | -97 | -275 | - | |||||||||||
Interest expense on uncertain tax positions | 88 | 62 | 98 | |||||||||||
Accrued interest on unrecognized tax benefits, December 31, | $ | 92 | $ | 101 | $ | 314 | ||||||||
Unrecognized tax benefits of $0.4 million and $2.4 million are liabilities shown with other deferred liabilities on the December 31, 2014 and December 31, 2013, consolidated balance sheets, respectively. At December 31, 2014, $2.0 of unrecognized tax benefits are netted with deferred tax assets on the consolidated balance sheet. The interest component is offset by a regulatory asset. | ||||||||||||||
During 2013, the IRS issued guidance on the treatment of electric generation repairs. This guidance prompted the reversal of the unrecognized tax benefits for these repairs in 2013. With the adoption of this new guidance in 2014 unrecognized tax benefits related to electric generation were added. At December 31, 2014 and 2012, MGE Energy and MGE have an unrecognized tax benefit primarily related to temporary tax differences associated with the change in income tax method of accounting for electric generation and electric and gas distribution repairs. At December 31, 2013, MGE Energy and MGE had an unrecognized tax benefit primarily related to temporary tax differences associated with the change in income tax method of accounting for electric and gas distribution repairs. There were no unrecognized tax benefits at December 31, 2014, 2013, or 2012 related to federal permanent differences and tax credits. | ||||||||||||||
The unrecognized tax benefits at December 31, 2014, are not expected to significantly increase or decrease within the next twelve months. In addition, statutes of limitations will expire for MGE Energy and MGE tax returns. The impact of the statutes of limitations expiring is not anticipated to be material. The following table shows tax years that remain subject to examination by major jurisdiction: | ||||||||||||||
Taxpayer | Open Years | |||||||||||||
MGE Energy and consolidated subsidiaries in federal return | 2011 through 2014 | |||||||||||||
MGE Energy Wisconsin combined reporting corporation return | 2010 through 2014 |
Pension_Plans_and_Other_Postre
Pension Plans and Other Postretirement Benefits | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits - 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. MGE's costs for the 401(k) plans were $2.5 million, $2.3 million, and $2.1 million in 2014, 2013, and 2012, respectively. A measurement date of December 31 is utilized for all pension and postretirement benefit plans. | |||||||||||||||
All employees hired after December 31, 2006, have been enrolled in the defined contribution pension plan, rather than the defined benefit pension plan previously in place. | |||||||||||||||
a. Benefit Obligations and Plan Assets. | |||||||||||||||
(In thousands) | Pension Benefits | Other Postretirement Benefits | |||||||||||||
Change in benefit obligations: | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net benefit obligation at beginning of year | $ | 283,958 | $ | 315,505 | $ | 66,100 | $ | 92,605 | |||||||
Service cost | 6,179 | 7,705 | 1,339 | 2,380 | |||||||||||
Interest cost | 13,574 | 12,656 | 3,166 | 3,871 | |||||||||||
Plan participants' contributions | - | - | 708 | 665 | |||||||||||
Plan amendments(a) | - | - | - | -20,915 | |||||||||||
Actuarial (gain) loss(b) | 48,162 | -40,335 | 10,090 | -9,687 | |||||||||||
Gross benefits paid | -11,640 | -11,573 | -3,113 | -2,998 | |||||||||||
Less: federal subsidy on benefits paid(c) | - | - | 188 | 179 | |||||||||||
Benefit obligation at end of year | $ | 340,233 | $ | 283,958 | $ | 78,478 | $ | 66,100 | |||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 277,398 | $ | 212,277 | $ | 37,602 | $ | 32,124 | |||||||
Actual return on plan assets | 21,907 | 45,816 | 2,558 | 5,000 | |||||||||||
Employer contributions | 883 | 30,878 | 1,197 | 2,811 | |||||||||||
Plan participants' contributions | - | - | 708 | 665 | |||||||||||
Gross benefits paid | -11,640 | -11,573 | -3,113 | -2,998 | |||||||||||
Fair value of plan assets at end of year | $ | 288,548 | $ | 277,398 | $ | 38,952 | $ | 37,602 | |||||||
Funded Status at December 31 | $ | -51,685 | $ | -6,560 | $ | -39,526 | $ | -28,498 | |||||||
(a) In 2013, MGE capped the amount it pays each year toward retiree medical premiums at 175% of the 2013 employer contribution for qualified employees. | |||||||||||||||
(b) In 2014, lower discount rates and mortality table updates were the main drivers to the actuarial loss. | |||||||||||||||
(c) In 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 was signed into law authorizing Medicare to provide prescription drug benefits to retirees. For the years ended December 31, 2014 and 2013, the subsidy due to MGE was $0.2 million. | |||||||||||||||
The accumulated benefit obligation for the defined benefit pension plans at the end of 2014 and 2013 was $304.0 million and $254.5 million, respectively. | |||||||||||||||
The amounts recognized in the consolidated balance sheets to reflect the funded status of the plans at December 31 are as follows: | |||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Long-term asset | $ | - | $ | 15,071 | $ | - | $ | - | |||||||
Current liability | -1,025 | -945 | -65 | -13 | |||||||||||
Long-term liability | -50,660 | -20,686 | -39,461 | -28,485 | |||||||||||
Net liability | $ | -51,685 | $ | -6,560 | $ | -39,526 | $ | -28,498 | |||||||
The following table shows the amounts that have not yet been recognized in our net periodic benefit cost as of December 31 and are recorded as regulatory assets in our consolidated balance sheets: | |||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net actuarial loss | $ | 85,102 | $ | 37,499 | $ | 17,657 | $ | 7,761 | |||||||
Prior service cost | -413 | -209 | -17,827 | -20,495 | |||||||||||
Transition obligation | - | - | 32 | 35 | |||||||||||
Total | $ | 84,689 | $ | 37,290 | $ | -138 | $ | -12,699 | |||||||
The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets were as follows: | |||||||||||||||
(In thousands) | Pension Benefits | ||||||||||||||
Projected benefit obligation in excess of plan assets | 2014 | 2013 | |||||||||||||
Projected benefit obligation, end of year | $ | 340,233 | $ | 21,631 | |||||||||||
Fair value of plan assets, end of year | 288,548 | - | |||||||||||||
The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and an accumulated benefit obligation in excess of plan assets were as follows: | |||||||||||||||
(In thousands) | Pension Benefits | ||||||||||||||
Accumulated benefit obligation in excess of plan assets | 2014 | 2013 | |||||||||||||
Projected benefit obligation, end of year | $ | 340,233 | $ | 21,631 | |||||||||||
Accumulated benefit obligation, end of year | 304,023 | 19,795 | |||||||||||||
Fair value of plan assets, end of year | 288,548 | - | |||||||||||||
b. Net Periodic Cost. | |||||||||||||||
MGE has elected to recognize the cost of its transition obligation (the accumulated postretirement benefit obligation as of January 1, 1993) by amortizing it on a straight-line basis over 20 years. | |||||||||||||||
(In thousands) | Pension Benefits | Other Postretirement Benefits | |||||||||||||
Components of net periodic (benefit) cost: | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||
Service cost | $ | 6,179 | $ | 7,705 | $ | 7,139 | $ | 1,339 | $ | 2,380 | $ | 2,528 | |||
Interest cost | 13,574 | 12,656 | 12,704 | 3,166 | 3,871 | 4,431 | |||||||||
Expected return on assets | -22,051 | -19,027 | -15,182 | -2,615 | -2,176 | -1,741 | |||||||||
Amortization of: | |||||||||||||||
Transition obligation | - | - | - | 3 | 3 | 425 | |||||||||
Prior service (benefit) cost | 204 | 314 | 430 | -2,669 | 110 | 110 | |||||||||
Actuarial loss | 703 | 8,014 | 8,288 | 252 | 1,236 | 2,346 | |||||||||
Net periodic (benefit) cost | $ | -1,391 | $ | 9,662 | $ | 13,379 | $ | -524 | $ | 5,424 | $ | 8,099 | |||
c. Plan Assumptions. | |||||||||||||||
The weighted-average assumptions used to determine the benefit obligations were as follows for the years ended December 31: | |||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Discount rate | 4.11% | 4.88% | 3.96% | 4.69% | |||||||||||
Rate of compensation increase | 3.85% | 3.90% | N/A | N/A | |||||||||||
Assumed health care cost trend rates: | |||||||||||||||
Health care cost trend rate assumed for next year | N/A | N/A | 6.50% | 7.00% | |||||||||||
Rate to which the cost trend rate is assumed to | |||||||||||||||
decline (the ultimate trend rate) | N/A | N/A | 5.00% | 5.00% | |||||||||||
Year that the rate reaches the ultimate trend rate | N/A | N/A | 2021 | 2018 | |||||||||||
The weighted-average assumptions used to determine the net periodic cost were as follows for the years ended December 31: | |||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||
Discount rate | 4.88% | 4.09% | 4.50% | 4.69% | 4.14% | 4.55% | |||||||||
Expected rate of return on plan assets | 8.10% | 8.10% | 8.10% | 7.07% | 6.79% | 7.26% | |||||||||
Rate of compensation increase | 3.93% | 4.60% | 4.59% | N/A | N/A | N/A | |||||||||
The assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The following table shows how an assumed 1% increase or 1% decrease in health care cost trends could impact postretirement benefits in 2014 dollars: | |||||||||||||||
(In thousands) | 1% Increase | 1% Decrease | |||||||||||||
Effect on other postretirement benefit obligation | $ | 1,465 | $ | -1,852 | |||||||||||
Effect on total service and interest cost components | 75 | -101 | |||||||||||||
MGE employs a building-block approach in determining the expected long-term rate of return for asset classes. Historical markets are studied and long-term historical relationships among asset classes are analyzed, consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as interest rates and dividend yields, are evaluated before long-term capital market assumptions are determined. | |||||||||||||||
The expected long-term nominal rate of return for plan assets is primarily a function of expected long-term real rates of return for component asset classes and the plan's target asset allocation in conjunction with an inflation assumption. Peer data and historical returns are reviewed to check for appropriateness. | |||||||||||||||
d. Investment Strategy. | |||||||||||||||
MGE employs a total return investment approach whereby a mix of equities, fixed income, and real estate investments are used to maximize the expected long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan-funded status, and corporate financial condition. The investment portfolio contains a diversified blend of equity, fixed income, and real estate investments. Investment risk is measured and monitored on an ongoing basis through periodic investment portfolio reviews and liability measurements. | |||||||||||||||
The asset allocation for MGE's pension plans at the end of 2014 and 2013, and the target allocation for 2015, by asset category, follows: | |||||||||||||||
Target Allocation | Percentage of Plan Assets at Year End | ||||||||||||||
2014 | 2013 | ||||||||||||||
Equity securities(a) | 63.00% | 62.00% | 66.00% | ||||||||||||
Fixed income securities | 30.00% | 31.00% | 28.00% | ||||||||||||
Real estate | 7.00% | 7.00% | 6.00% | ||||||||||||
Total | 100.00% | 100.00% | 100.00% | ||||||||||||
(a) Target allocations for equity securities are broken out as follows: 45.5% United States equity, | |||||||||||||||
17.5% non-United States equity. | |||||||||||||||
The fair value of plan assets for the postretirement benefit plans is $39.0 million and $37.6 million at the end of 2014 and 2013, respectively. Of this amount, $32.8 million and $31.1 million at the end of 2014 and 2013, respectively, were held in the master pension trust and are allocable to postretirement health expenses. The target asset allocation and investment strategy for the portion of assets held in the master pension trust are the same as that explained for MGE's pension plans. The remainder of postretirement benefit assets is held either in an insurance continuance fund for the payment of retiree life benefits or a health benefit trust for payment of retiree health claims. There is no formal target asset allocation for these assets, but the intent is to seek interest income and maintain stability of principal. | |||||||||||||||
e. Concentrations of Credit Risk. | |||||||||||||||
MGE evaluated its pension and other postretirement benefit plans' asset portfolios for the existence of significant concentrations of credit risk as of December 31, 2014. Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, and foreign country. As of December 31, 2014, there were no significant concentrations (defined as greater than 10 percent of plan assets) of risk in MGE pension and postretirement benefit plan assets. | |||||||||||||||
f. Fair Value Measurements of Plan Assets. | |||||||||||||||
Pension and other postretirement benefit plan investments are recorded at fair value. See Footnote 11 for more information regarding the fair value hierarchy. | |||||||||||||||
The following is a description of the valuation methodologies used for assets measured at fair value as of December 31, 2014: | |||||||||||||||
Equity Securities – These securities consist of U.S. and international stock funds. The U.S. stock funds are primarily invested in domestic equities. Securities in these funds are typically priced using the closing price from the applicable exchange, NYSE, NASDAQ, etc. The international funds are composed of international equities. Securities are priced using the closing price from the appropriate local stock exchange. | |||||||||||||||
Fixed Income Securities – These securities consist of U.S. bond funds and short-term funds. U.S. bond funds are priced by a pricing agent using inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. The short-term funds are valued initially at cost and adjusted for amortization of any discount or premium. | |||||||||||||||
Real Estate – The fair value of real estate properties is determined through an external appraisal process. | |||||||||||||||
Insurance Continuance Fund (ICF) – The fair value of the ICF is based on largely unobservable inputs, which are based on a commingled interest. | |||||||||||||||
Fixed Rate Fund – The fair value of the Fixed Rate fund is determined based on the type of assets held. Public market data and GAAP reported market values are used when available. For all other assets, discounted cash flows are calculated using treasury rates and spreads based on the cash flow timing and quality of assets. | |||||||||||||||
The fair value of MGE's plan assets, by asset category are as follows: | |||||||||||||||
Fair Value as of December 31, 2014 | |||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Equity Securities: | |||||||||||||||
U.S. Large Cap | $ | 99,256 | $ | - | $ | 99,256 | $ | - | |||||||
U.S. Mid Cap | 22,926 | - | 22,926 | - | |||||||||||
U.S. Small Cap | 29,353 | - | 29,353 | - | |||||||||||
International Blend | 47,650 | - | 47,650 | - | |||||||||||
Fixed Income Securities: | |||||||||||||||
Short-Term Fund | 3,776 | - | 3,776 | - | |||||||||||
High Yield Bond | 15,492 | - | 15,492 | - | |||||||||||
Long Duration Bond | 79,603 | - | 79,603 | - | |||||||||||
Real Estate | 23,480 | - | - | 23,480 | |||||||||||
Insurance Continuance Fund | 1,518 | - | - | 1,518 | |||||||||||
Fixed Rate Fund | 4,446 | - | - | 4,446 | |||||||||||
Total | $ | 327,500 | $ | - | $ | 298,056 | $ | 29,444 | |||||||
Fair Value as of December 31, 2013 | |||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Cash and Cash Equivalents | $ | 5,109 | $ | 5,109 | $ | - | $ | - | |||||||
Equity Securities: | |||||||||||||||
U.S. Large Cap | 96,258 | - | 96,258 | - | |||||||||||
U.S. Mid Cap | 22,741 | - | 22,741 | - | |||||||||||
U.S. Small Cap | 28,854 | - | 28,854 | - | |||||||||||
International Blend | 54,873 | - | 54,873 | - | |||||||||||
Fixed Income Securities: | |||||||||||||||
Short-Term Fund | 4,789 | - | 4,789 | - | |||||||||||
High Yield Bond | 15,127 | - | 15,127 | - | |||||||||||
Long Duration Bond | 66,193 | - | 66,193 | - | |||||||||||
Real Estate | 19,628 | - | - | 19,628 | |||||||||||
Insurance Continuance Fund | 1,428 | - | - | 1,428 | |||||||||||
Total | $ | 315,000 | $ | 5,109 | $ | 288,835 | $ | 21,056 | |||||||
No transfers were made in or out of Level 1 or Level 2 for the year ended December 31, 2014. | |||||||||||||||
The following table summarizes the changes in the fair value of the Level 3 plan assets. | |||||||||||||||
Level 3 Assets | |||||||||||||||
(In thousands) | Real Estate | Insurance Continuance Fund | Fixed Rate Fund | ||||||||||||
Balance as of January 1, 2013 | $ | 17,141 | $ | 1,466 | $ | - | |||||||||
Actual return on plan assets: | |||||||||||||||
Relating to assets still held at the reporting date | 1,565 | 42 | - | ||||||||||||
Purchases, sales, and settlements | 922 | -80 | - | ||||||||||||
Transfers in and/or out of Level 3 | - | - | - | ||||||||||||
Balance as of December 31, 2013 | $ | 19,628 | $ | 1,428 | $ | - | |||||||||
Actual return on plan assets: | |||||||||||||||
Relating to assets still held at the reporting date | 1,561 | 44 | 54 | ||||||||||||
Purchases, sales, and settlements | 2,291 | 46 | 4,392 | ||||||||||||
Transfers in and/or out of Level 3 | - | - | - | ||||||||||||
Balance as of December 31, 2014 | $ | 23,480 | $ | 1,518 | $ | 4,446 | |||||||||
g. Expected Cash Flows. | |||||||||||||||
Contributions to the qualified plans for 2015 are expected to be $10 million, which was paid in January 2015. MGE does not expect to make contributions to the plans for 2016. The contributions for years after 2016 are not yet currently estimated. MGE has adopted the asset smoothing as permitted in accordance with the Pension Protection Act of 2006, including modifications made by WRERA. | |||||||||||||||
Due to uncertainties in the future economic performance of plan assets, discount rates, and other key assumptions, estimated contributions are subject to change. MGE may also elect to make additional discretionary contributions. | |||||||||||||||
In 2014, MGE made $3.3 million in employer contributions to its pension and postretirement plans. | |||||||||||||||
h. Benefit Payments. | |||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows: | |||||||||||||||
Pension | Other Postretirement Benefits | ||||||||||||||
(In thousands) | Pension Benefits | Gross Postretirement Benefits | Expected Medicare Part D Subsidy | Net Postretirement Benefits | |||||||||||
2015 | $ | 11,944 | 3,101 | -211 | 2,890 | ||||||||||
2016 | 12,631 | 3,338 | -237 | 3,101 | |||||||||||
2017 | 13,408 | 3,757 | -258 | 3,499 | |||||||||||
2018 | 14,613 | 4,272 | -282 | 3,990 | |||||||||||
2019 | 15,559 | 4,776 | -306 | 4,470 | |||||||||||
2020 - 2024 | 92,915 | 29,871 | -2,005 | 27,866 |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
Share-Based Compensation | Share-Based Compensation - MGE Energy and MGE. | ||||
Under MGE Energy’s Performance Unit Plan, eligible employees may receive performance units that entitle the holder to receive a cash payment equal to the value of a designated number of shares of MGE Energy's common stock, plus dividend equivalent payments thereon, at the end of the set performance period. In accordance with the plan’s provisions, these awards are subject to a prescribed vesting schedule and must be settled in cash. Accordingly, no shares of common stock will be issued in connection with the plan. | |||||
On the grant date, MGE Energy and MGE measure the cost of the employee services received in exchange for a performance unit award based on the current market value of MGE Energy common stock. The fair value of the awards is re-measured quarterly, including at December 31, 2014, as required by applicable accounting standards. Changes in fair value as well as the original grant are recognized as compensation cost. Since this amount is re-measured throughout the vesting period, the compensation cost is subject to variability. These units are subject to a five year graded vesting schedule. | |||||
Grant Date | MGE Energy Units Granted | ||||
20-Feb-15 | 18,948 | ||||
21-Feb-14 | 21,991 | ||||
15-Feb-13 | 22,884 | ||||
17-Feb-12 | 25,040 | ||||
21-Jan-11 | 23,483 | ||||
For nonretirement eligible employees, stock based compensation costs are accrued and recognized using the graded vesting method. Compensation cost for retirement eligible employees or employees that will become retirement eligible during the vesting schedule are recognized on an abridged horizon. | |||||
In December 2013, a Director Incentive Plan was approved for the non-employee members of the Board of Directors. This plan is similar to MGE Energy’s Performance Unit Plan for eligible employees described above. Under the plan, a non-employee director can receive performance units that entitle the holder to receive a cash payment equal to the value of a designated number of shares of MGE Energy’s common stock, plus dividend payments, at the end of the set performance period. The units are subject to a three year graded vesting schedule. | |||||
Grant Date | MGE Energy Units Granted | ||||
16-Jan-15 | 3,794 | ||||
17-Jan-14 | 4,683 | ||||
During the years ended December 31, 2014, 2013, and 2012, MGE recorded $2.0 million, $1.5 million, and $1.4 million, respectively, in compensation expense as a result of awards under the plans. In January 2014, cash payments of $1.2 million were distributed relating to awards that were granted in 2009. No forfeitures occurred during the years ended December 31, 2014, 2013, and 2012. At December 31, 2014, $5.2 million of outstanding awards are vested, and of this amount no cash settlements have occurred. |
Regional_Transmission_Organiza
Regional Transmission Organizations | 12 Months Ended |
Dec. 31, 2014 | |
Regional Transmission Organizations Disclosure [Abstract] | |
Regional Transmission Organizations | Regional Transmission Organizations - MGE Energy and MGE. |
MGE reports on a net basis transactions on the MISO and PJM markets in which it buys and sells power within the same hour to meet electric energy delivery requirements. This treatment resulted in a $91.1 million and $78.0 million reduction to sales to the market and purchase power expense for MISO markets for the years ended December 31, 2014 and 2013, respectively, and a $75.9 million reduction to sales to the market and purchased power expense for MISO and PJM markets for the year ended December 31, 2012. |
Derivative_and_Hedging_Instrum
Derivative and Hedging Instruments | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Derivative and Hedging Instruments | Derivative 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 and gas revenues. 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, MGE Energy and MGE recognize such derivatives in the consolidated balance sheets at fair value. The majority of MGE's 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. 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 recoverable in gas rates through the 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: | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
Commodity derivative contracts | 448,000 MWh | 458,660 MWh | |||||||||
Commodity derivative contracts | 4,405,000 Dth | 3,750,000 Dth | |||||||||
FTRs | 1,854 MW | 1,984 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 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. At December 31, 2014, the cost basis of exchange traded derivatives and FTRs exceeded their fair value by $1.6 million. At December 31, 2013, the fair value of exchange traded derivatives and FTRs exceeded their cost basis by $1.8 million. | |||||||||||
MGE is a party to a ten-year purchased power agreement that provides MGE with firm capacity and energy during a base term from June 1, 2012 through May 31, 2022. The agreement also allows MGE an option to extend the contract after the base term. The agreement is accounted for as a derivative contract and is recognized at its fair value on the consolidated balance sheet. However, the derivative qualifies for regulatory deferral and is recognized with a corresponding regulatory asset or liability depending on whether the fair value is in a loss or gain position. The fair value of the contract at December 31, 2014 and 2013, reflects a loss position of $53.4 million and $65.7 million, respectively. The actual fuel cost will be recognized in purchased power expense in the month of purchase and collected in rates. | |||||||||||
The following table summarizes the fair value of the derivative instruments on the consolidated balance sheet. 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, MGE Energy and MGE have netted instruments with the same counterparty under a master netting agreement as well as the netting of collateral. At December 31, 2014, MGE Energy and MGE had the right to reclaim collateral (a receivable) of $2.2 million. | |||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||
(In thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||
31-Dec-14 | |||||||||||
Commodity derivative contracts | Other current assets | $ | 130 | Derivative liability (current) | $ | 2,262 | |||||
Commodity derivative contracts | Other deferred charges | 93 | Derivative liability (long-term) | 171 | |||||||
FTRs | Other current assets | 642 | Derivative liability (current) | - | |||||||
Ten-year PPA | N/A | N/A | Derivative liability (current) | 6,870 | |||||||
Ten-year PPA | N/A | N/A | Derivative liability (long-term) | 46,560 | |||||||
31-Dec-13 | |||||||||||
Commodity derivative contracts | Other current assets | $ | 1,356 | Derivative liability (current) | $ | 51 | |||||
Commodity derivative contracts | Other deferred charges | 167 | Derivative liability (long-term) | 48 | |||||||
FTRs | Other current assets | 363 | Derivative liability (current) | - | |||||||
Ten-year PPA | N/A | N/A | Derivative liability (current) | 7,750 | |||||||
Ten-year PPA | N/A | N/A | Derivative liability (long-term) | 57,930 | |||||||
The following tables show the effect of netting arrangements for recognized derivative assets and liabilities that are subject to a master netting arrangement or similar arrangement on the balance sheet. | |||||||||||
Offsetting of Derivative Assets | |||||||||||
Gross amounts | Gross amounts offset in balance sheet | Collateral posted against derivative positions | Net amount presented in balance sheet | ||||||||
(In thousands) | |||||||||||
31-Dec-14 | |||||||||||
Commodity derivative contracts | $ | 223 | $ | -223 | $ | - | $ | - | |||
FTRs | 642 | - | - | 642 | |||||||
31-Dec-13 | |||||||||||
Commodity derivative contracts | $ | 1,523 | $ | -99 | $ | -175 | $ | 1,249 | |||
FTRs | 363 | - | - | 363 | |||||||
Offsetting of Derivative Liabilities | |||||||||||
Gross amounts | Gross amounts offset in balance sheet | Collateral posted against derivative positions | Net amount presented in balance sheet | ||||||||
(In thousands) | |||||||||||
31-Dec-14 | |||||||||||
Commodity derivative contracts | $ | 2,433 | $ | -223 | $ | -2,179 | $ | 31 | |||
Ten-year PPA | 53,430 | - | - | 53,430 | |||||||
31-Dec-13 | |||||||||||
Commodity derivative contracts | $ | 99 | $ | -99 | $ | - | $ | - | |||
Ten-year PPA | 65,680 | - | - | 65,680 | |||||||
The following tables summarize the unrealized and realized gains (losses) related to the derivative instruments on the consolidated balance sheet at December 31, 2014 and 2013, and the consolidated income statement for the year ended December 31, 2014 and 2013. | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | Current and Long-Term Regulatory Asset | Other Current Assets | Current and Long-Term Regulatory Asset | Other Current Assets | |||||||
Year Ended December 31: | |||||||||||
Balance at January 1, | $ | 63,893 | $ | 411 | $ | 72,329 | $ | 574 | |||
Change in unrealized loss | -14,518 | - | -5,069 | - | |||||||
Realized gain (loss) reclassified to a deferred account | 595 | -595 | -823 | 823 | |||||||
Realized gain (loss) reclassified to income statement | 5,028 | 1,185 | -2,544 | -986 | |||||||
Balance at December 31, | $ | 54,998 | $ | 1,001 | $ | 63,893 | $ | 411 | |||
Realized losses (gains) | |||||||||||
2014 | 2013 | ||||||||||
Fuel for electric generation/ purchased power | Cost of gas sold | Fuel for electric generation/ purchased power | Cost of gas sold | ||||||||
(In thousands) | |||||||||||
Year Ended December 31: | |||||||||||
Commodity derivative contracts | $ | -5,515 | $ | -1,103 | $ | -564 | $ | 868 | |||
FTRs | -1,110 | - | -983 | - | |||||||
Ten-year PPA | 1,515 | - | 4,209 | - | |||||||
MGE's commodity derivative contracts, FTRs, and ten-year PPA 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 sheet and are recognized in earnings in the delivery month applicable to the instrument. As a result of the above described treatment, there are no unrealized gains or losses that flow through earnings. | |||||||||||
The ten-year PPA has a provision that may require MGE to post collateral if MGE's debt rating falls below investment grade (i.e., below BBB-). The amount of collateral that it may be required to post varies from $20.0 million to $40.0 million, depending on MGE's nominated capacity amount. As of December 31, 2014, no collateral has been posted. Certain counterparties extend MGE a credit limit. If MGE exceeds these limits, the counterparties may require collateral to be posted. As of December 31, 2014, certain counterparties were in a net liability of less than $0.1 million. As of December 31, 2013, 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 December 31, 2014, no counterparties have defaulted. |
Rate_Matters
Rate Matters | 12 Months Ended |
Dec. 31, 2014 | |
Regulated Operations [Abstract] | |
Rate Matters | Rate Matters - MGE Energy and MGE. |
a. Rate Proceedings. | |
On December 23, 2014, the PSCW authorized MGE to increase 2015 rates for retail electric customers by 3.8% or $15.4 million and to decrease gas rates by 2.0% or $3.8 million. The increase in retail electric rates cover costs associated with the construction of emission-reduction equipment at Columbia, improvements and reliability of the state's electric transmission system, fuel and purchased power related to coal delivery costs, partially offset by lower cost as a result of market conditions for pension and post-retirement benefit costs. The authorized return on common stock equity is 10.2%. | |
On July 26, 2013, the PSCW authorized MGE to freeze electric and natural gas rates at 2013 levels for 2014. The order includes authorizing 100% AFUDC on the Columbia scrubber construction project and deferral of increased costs related to ATC and MISO network upgrade fees. As part of the rate freeze plan authorized by the PSCW, effective January 1, 2014, approximately $6.3 million associated with a 2012 fuel rule surplus credit was required to be refunded to customers and was amortized in 2014. The fuel credit accrued interest at MGE's weighted cost of capital. The authorized return on equity remained unchanged at 10.3%. | |
On December 14, 2012, the PSCW authorized MGE to increase 2013 rates for retail electric customers by 3.8% or $14.9 million and to increase gas rates by 1.0% or $1.6 million. The change in retail electric rates was driven by costs for new environmental equipment at Columbia, final construction costs for the Elm Road Units, transmission reliability enhancements, and purchased power costs. The authorized return on common stock equity remained unchanged at 10.3%. | |
On December 15, 2011, under a limited reopener of MGE's last rate order, the PSCW authorized MGE to increase 2012 rates for retail electric customers by 4.3% or $15.7 million and to increase gas rates by 0.3% or $0.6 million. The change in retail electric rates was driven by MGE's electric fuel and purchased power costs, increased transmission costs, an update to the Elm Road Units' costs, and an increase for energy efficiency programs. The PSCW also approved deferral of CSAPR costs. | |
b. Fuel Rules. | |
Fuel rules require the PSCW and 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 most recent base rate proceedings. Any over/under recovery of the actual costs is determined on an annual basis and will be adjusted in future billings to electric retail customers. The fuel rules bandwidth is currently set at plus or minus 2%. Under fuel rules, MGE would defer costs, less any excess revenues, if its actual electric fuel costs exceeded 102% of the electric fuel costs allowed in its latest rate order. 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. Conversely, MGE is required to defer the benefit of lower costs if actual electric fuel costs were less than 98% of the electric fuel costs allowed in that order. | |
As of December 31, 2014, MGE's fuel costs are within the range authorized by the PSCW in the most recent rate order; therefore, no fuel credits or surcharges were necessary. As part of the rate freeze plan authorized by the PSCW for 2014, $6.3 million associated with the 2012 fuel rule credit was amortized against purchased power expense during the year ended December 31, 2014. The 2013 fuel rule credit of $6.5 million was returned to customers in October 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||
Commitments and Contingencies | Commitments and Contingencies. | ||||||||||||||
a. Purchase Contracts - MGE Energy and MGE. | |||||||||||||||
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. As of December 31, 2014, the future minimum commitments related to these purchase contracts were as follows: | |||||||||||||||
(In thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||
Coal(a) | $ | 22,630 | $ | 16,436 | $ | 10,664 | $ | 6,560 | $ | 3,850 | |||||
Natural Gas | |||||||||||||||
Transportation and storage(b) | 18,074 | 9,938 | 273 | 192 | - | ||||||||||
Supply(c) | 14,971 | - | - | - | - | ||||||||||
Purchase Power(d) | 50,714 | 51,437 | 52,043 | 50,752 | 37,367 | ||||||||||
Other | 16,452 | 723 | 723 | 324 | 143 | ||||||||||
$ | 122,841 | $ | 78,534 | $ | 63,703 | $ | 57,828 | $ | 41,360 | ||||||
(a) Total coal commitments for the Columbia and Elm Road Units, including transportation. Fuel procurement for MGE's jointly owned Columbia and Elm Road Units are handled by WPL and WEPCO, respectively, who are the operators of those facilities. If any minimum purchase obligations must be paid under these contracts, management believes these obligations would be considered costs of service and recoverable in rates. | |||||||||||||||
(b) 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 established by FERC but may be subject to change. | |||||||||||||||
(c) These commitments include market-based pricing. Management expects to recover these costs in future customer rates. | |||||||||||||||
(d) MGE has several purchase power agreements to help meet future electric supply requirements. Management expects to recover these costs in future customer rates. In October 2008, MGE entered into a ten-year purchase power agreement to help meet future electric supply requirements. Under this agreement, MGE has agreed to purchase 50 MW of wind power from Osceola Windpower II, LLC, which is located in Iowa. This facility became operational in October 2008. MGE does not have any capacity payment commitments under this agreement. However, MGE is obligated to purchase its ratable share of the energy produced by the project. MGE's commitment related to its ratable share of energy produced by the project has been estimated and is included in the above numbers. | |||||||||||||||
b. Chattel Paper Agreement and Other Guarantees - MGE Energy and MGE. | |||||||||||||||
MGE makes available to qualifying customers a financing program for the purchase and installation of energy-related equipment that will provide more efficient use of utility service at the customer's property. MGE is party to a chattel paper purchase agreement with a financial institution under which it can sell or finance an undivided interest with recourse, in up to $10.0 million of the financing program receivables, until July 31, 2015. At December 31, 2014, 2013, and 2012, respectively, MGE had sold a $4.4 million, $5.4 million, and $4.5 million interest in these receivables. MGE retains the servicing responsibility for these receivables. | |||||||||||||||
MGE accounts for servicing rights under the amortization method. Initial determination of the servicing asset fair value is based on the present value of the estimated future cash flows. The discount rate is based on the PSCW authorized weighted cost of capital. | |||||||||||||||
MGE maintains responsibility for collecting and remitting loan payments from customers to the financial institution and does not retain any interest in the assets sold to the financial institution. At December 31, 2014, 2013, and 2012, MGE recorded a servicing asset of $0.2 million, $0.3 million, and $0.2 million, respectively. MGE recognized gains of $0.1 million, $0.2 million, and $0.1 million for the years ended December 31, 2014, 2013, and 2012, respectively, in connection with the sale of loan assets. The servicing asset amount amortized in 2014 was less than $0.1 million. The loan assets are sold to the financial institution at cost, which approximates fair value in view of their market rates of interest. During 2014, 2013, and 2012, MGE received approximately $0.5 million, $1.6 million, and $1.2 million, respectively, from the financial institution for the sale of loan assets. During those same years, payments of $1.5 million, $0.8 million, and $1.2 million, respectively, were made by MGE to the financial institution. | |||||||||||||||
MGE would be required to perform under its guarantee if a customer defaulted on its loan. The energy-related equipment installed at the customer sites is used to secure the customer loans. The loan balances outstanding at December 31, 2014, approximate the fair value of the energy-related equipment acting as collateral. The length of the MGE guarantee to the financial institution varies from one to ten years depending on the term of the underlying customer loan. Principal payments for the next five years on the loans are: | |||||||||||||||
(In thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||
Principal payments | $ | 906 | $ | 884 | $ | 482 | $ | 420 | $ | 410 | |||||
c. Leases - MGE Energy and MGE. | |||||||||||||||
MGE has noncancelable operating leases, primarily for combustion turbines, railcars, and computer equipment. The operating leases generally do not contain renewal options, with the exception of certain railcar operating leases. These leases have a renewal option of one year or less. MGE is required to pay all executory costs such as maintenance and insurance for its leases. | |||||||||||||||
Future minimum rental payments at December 31, 2014, under agreements classified as operating leases with noncancelable terms in excess of one year are as follows: | |||||||||||||||
(In thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||
Minimum lease payments | $ | 1,553 | $ | 1,346 | $ | 872 | $ | 419 | $ | 258 | $ | 7,938 | |||
Rental expense under operating leases totaled $2.5 million, $2.7 million, and $2.6 million for 2014, 2013, and 2012, respectively. | |||||||||||||||
d. Environmental - MGE Energy and MGE. | |||||||||||||||
Water Quality | |||||||||||||||
Water quality regulations promulgated by the EPA and WDNR in accordance with the Federal Water Pollution Control Act, or more commonly known as the Clean Water Act (CWA), impose restrictions on discharges of various pollutants into surface waters. The CWA also regulates surface water quality issues that affect aquatic life, such as water temperatures, intake structures, and wetlands filling. The CWA also includes discharge standards, which require the use of effluent-treatment processes equivalent to categorical "best practicable" or "best available" technologies. The CWA regulates discharges from "point sources," such as power plants, through establishing discharge limits in water discharge permits. MGE's power plants operate under Wisconsin Pollution Discharge Elimination System (WPDES) permits to ensure compliance with these discharge limits. | |||||||||||||||
EPA’s Proposed Effluent Limitations Guidelines (ELG) and Standards for Steam Electric Power Generating Point Source Category | |||||||||||||||
In June 2013, the EPA published a proposed rule that would amend the current ELG rule and lower the existing permissible water discharge of metals and other pollutants in wastewater from new and existing steam electric generation plants. The proposed rule focuses mainly on water discharges associated with certain air pollution control systems and ash handling systems at coal-burning power plants. Under the proposed rule, the EPA asked for comments on four regulatory options, varying in their compliance stringency and cost. The EPA is under a consent decree to finalize the rule by September 2015. Once finalized, the rule will apply to power plants as they renew their WPDES permits beginning in July 2017. | |||||||||||||||
The ELG rule as proposed would require specific treatments and/or technologies to meet the water discharge requirements. Sites that already have these technologies will be deemed to meet the requirements of the rule. Sites without these technologies would need to install them to be in compliance. The proposed rule as written will likely affect wastewater systems at Columbia and the Elm Road Units. For Columbia, the rule may affect bottom ash handling systems. For the Elm Road Units, the rule may affect its flue gas desulfurization systems. | |||||||||||||||
Based on our current evaluation of the proposed rule and its alternatives, we may need to add treatment systems or additional equipment at our Elm Road and Columbia facilities. However, MGE cannot estimate those costs with any certainty until we are able to evaluate the final version of this rule further. | |||||||||||||||
EPA Cooling Water Intake Rules (Section 316(b)) | |||||||||||||||
Section 316(b) of the CWA requires that the cooling water intake structures at electric power plants meet best available technology standards so that mortality from entrainment (drawing aquatic life into a plant's cooling system) and impingement (trapping aquatic life on screens) are reduced. The EPA finalized its 316(b) rule for existing facilities in 2014; however, the rule is the subject of a pending legal challenge. Section 316(b) requirements are implemented in Wisconsin through modifications to plants' WPDES permits, which govern plant water discharges. WDNR is developing rules to implement the EPA 316(b) rule. | |||||||||||||||
Existing facilities under the 316(b) rule (for MGE that includes our Blount, WCCF, and Columbia plants) will need to meet impingement and entrainment reduction standards or take one of seven actions to meet the reduction requirements. Compliance with 316(b) requirements will coincide with permit renewals. | |||||||||||||||
MGE has studied its options and expects that it will meet requirements at its affected facilities with minimal cost. Our WCCF facility already employs a "closed cycle" cooling (CCC) system as defined under the rule. The Columbia plant may need to address multiple intake structures. Our Blount plant has conducted studies regarding options for compliance with the rule. The exact requirements, however, will not be known until those facilities' WPDES permits are modified to account for this rule. Nonetheless, MGE expects that the 316(b) rule will not have material effects on its existing plants. | |||||||||||||||
Energy Efficiency and Renewables | |||||||||||||||
The Wisconsin Energy Efficiency and Renewables Act requires that, by 2015, 10% of the state's electricity be generated from renewable resources. As of December 31, 2014, MGE is in compliance with the 2015 requirement. The costs to comply with the Act and its accompanying regulations are being recovered in rates. | |||||||||||||||
Air Quality | |||||||||||||||
Federal and state air quality regulations impose restrictions on emission of mercury, particulates (PM), sulfur dioxide (SO2), nitrogen oxides (NOx), and other pollutants and require permits for operation of emission sources. These permits have been obtained by MGE and must be renewed periodically. Several EPA initiatives, including the EPA's proposed greenhouse gas regulations, EPA's efforts to regulate methane from natural gas lines, the Cross-State Air Pollution Rule (CSAPR), and revised National Ambient Air Quality Standards (NAAQS) have the potential to result in additional operating and capital expenditure costs for MGE. | |||||||||||||||
EPA's Greenhouse Gas (GHG) Reduction Guidelines under the Clean Air Act 111d Rule | |||||||||||||||
In June 2014, the EPA developed a proposed rule called the Clean Power Plan that set guidelines for states to use in developing plans to control GHG emissions from existing fossil fuel fired electric generating units (EGUs). The EPA's proposal includes reductions in GHG emissions from EGUs by a national average of 30% by 2030 as measured from a 2012 baseline. Each state is given its own emission reduction targets to meet this goal, and States' goals can be higher or lower than the national average. The State of Wisconsin's reduction goal is 34%. These targets are expressed as a "rate-based" emission average to be achieved by the combined fleet of EGUs within the state. States would be expected to make "meaningful progress" towards these reductions by 2020 and to meet their respective targets by 2030. | |||||||||||||||
The EPA's proposal establishes guidelines for states and encourages the use of four "building blocks" for achieving these reductions. These "building blocks" are: (1) increasing the efficiency of EGUs; (2) re-dispatching of gas-fired generation in lieu of coal; (3) expanding the use of low and no carbon power sources, such as wind, nuclear and solar; and (4) improving demand side energy efficiency to reduce electric use. | |||||||||||||||
MGE has been studying the EPA's proposed rule to determine what compliance in Wisconsin would look like. MGE has also participated in discussions on the proposed rule with the Wisconsin Department of Natural Resources, Public Service Commission of Wisconsin, Wisconsin utilities, and industry experts. | |||||||||||||||
The rule is expected to be finalized mid-summer 2015. States will then have up to two years to prepare compliance plans. While there is currently no certainty regarding the terms of the final rule, it is reasonable to assume that this rule will have a material impact on MGE. The parameters of the final rule, however, will determine the extent to which this rule will affect MGE. | |||||||||||||||
National Ambient Air Quality Standards (NAAQS) | |||||||||||||||
The EPA’s NAAQS regulations have been developed to set ambient levels of six pollutants to protect sensitive populations (primary NAAQS) and the environment (secondary NAAQS) from the negative effects of exposure to these pollutants at higher levels. The NAAQS regulations govern that the EPA periodically review, and adjust as necessary, the NAAQS for these six air pollutants. The EPA's NAAQS review can result in a lowering of the allowed ambient levels of a pollutant, a change in how the pollutant is monitored, and/or a change in which sources of that pollutant are regulated. States implement any necessary monitoring and measurement changes and recommend areas for attainment (meets the ambient requirements) or nonattainment (does not meet these standards). The EPA makes the final attainment and nonattainment determinations. States must come up with a state implementation plan (SIP) to get nonattainment areas into attainment and maintain air quality in attainment areas. A company with facilities located in a nonattainment area will be most affected. Their facilities may be subject to additional data submissions and measurement during permitting renewals, their facilities may need to meet new standards set by the SIP (which could result in significant capital expenditures), and the company may have additional expenses and/or difficulties expanding or building new facilities. The process from determining acceptable primary and/or secondary NAAQS to executing SIPs can take years. Nonetheless, because the NAAQS regulations have the potential to affect both existing and new facilities in areas, MGE continuously monitors changes to these rules to evaluate whether changes could impact our operations. | |||||||||||||||
MGE is monitoring developments in the Ozone NAAQS rule. In November 2014, the EPA published proposed regulations to lower the Ozone NAAQS to between 65 to 70 parts per billion (ppb). In this proposed rule, the EPA has stated they are also considering leaving the standard at its current level of 75 ppb, or lowering it further to 60 ppb. EPA is seeking comments on these options. Milwaukee County (where our Elm Road Units are located) and Dane and Columbia Counties (where several of our facilities are located) may not meet the Ozone NAAQS if it is lowered to 70 ppb or below. These counties could then be subject to a SIP that could potentially affect MGE facilities, as described above. The EPA plans to have a final Ozone NAAQS rule completed by October 2015. After the rule is finalized, there are several State and Federal actions that need to take place before the Wisconsin SIP will be implemented. Without a SIP in place, it is too soon to tell how a lowered Ozone NAAQS will affect our facilities. MGE will continue to monitor rule developments and subsequent state actions and implementation plans. | |||||||||||||||
MGE is also monitoring developments in the SO2 NAAQS rule. The EPA's SO2 NAAQS rule has been in place for some time and initial attainment/nonattainment designations by states were due in 2013. However, there was no mechanism for determining attainment and thus, the majority of areas across the U.S., including most of Wisconsin, were unable to be classified as either in attainment or nonattainment. In 2014, the EPA proposed a data requirements rule with procedures for states to use to determine attainment and nonattainment areas. The proposed procedures include analyzing a state's highest emitting SO2 sources to determine through measurement and/or modeling if those sources are contributing to SO2 NAAQS exceedances. Based on the proposed data requirements rule, the State of Wisconsin will likely include our Columbia plant and may include the Elm Road Units, in the list of larger sources that require further evaluation through modeling and/or monitoring. Both Columbia and the Elm Road Units already have effective SO2 pollution controls installed and should be in compliance with the final rule, however, we will not know with any certainty if the rule will affect our plants until the State of Wisconsin completes its evaluation. MGE will continue monitoring further actions under this rule to better evaluate the effect it may have on Columbia and the Elm Road Units. | |||||||||||||||
EPA's Cross-State Air Pollution Rule | |||||||||||||||
The EPA's Cross-State Air Pollution Rule (CSAPR) is an interstate air pollution transport rule designed to reduce ozone and fine particulate (PM2.5) air levels in areas that the EPA has determined are being affected by pollution from neighboring and upwind states. The EPA has identified 27 eastern states that are contributing to pollution in other states. CSAPR aims to achieve ozone and PM2.5 reductions by reducing NOx and/or SO2 air emissions, which contribute to ozone and PM2.5, from qualifying electric power plants in the 27 "contributing" states. The rule has been designed so that qualifying power plants will be allocated NOx and SO2 allowances in two phases, with the second phase including further emissions reductions. These plants will need to reduce their emissions and/or purchase allocations from the marketplace to meet their obligations. | |||||||||||||||
CSAPR, as well as its precursor rules, the Clean Air Interstate Rule (CAIR) and the NOx SIP Call, have been subject to litigation. EPA rule adjustments and several court rulings, including recent court and EPA actions, continue to impart a level of uncertainty heading into 2015. See below for additional information on recent developments and uncertainties associated with this rule. | |||||||||||||||
In July 2011, the EPA finalized CSAPR as a court-ordered replacement rule for its CAIR that had been remanded in 2008. The D.C. Circuit Court of Appeals stayed CSAPR in December 2011, then vacated CSAPR and conditionally reinstated CAIR in August 2012. The U.S. Supreme Court issued a decision in April 2014, reversing the D.C. Circuit Court's vacature of CSAPR and remanded the matter back to the D.C. Circuit for further proceedings. In October 2014, the D.C. Circuit lifted its stay of CSAPR and set a briefing schedule for remaining litigation issues that were not resolved by the Supreme Court's decision. The briefing schedule with oral arguments is planned for 2015. Additionally, the State of Wisconsin has filed pleadings with the D.C. Circuit Court reiterating its contention that Wisconsin be removed from CSAPR. | |||||||||||||||
The EPA has interpreted the October 2014 lifting of the stay by the D.C. Circuit as granting the EPA the ability to reset deadlines that have since passed (CSAPR was originally designed to begin in 2012). The EPA instituted an interim final rule effective January 1, 2015, that tolls the CSAPR's deadlines by three years. The tolling of three years under the interim final rule introduces Phase I of CSAPR in 2015, and Phase II of CSAPR in 2017. The EPA is accepting comments on other aspects of the rule through February 2015. | |||||||||||||||
The ongoing litigation in the D.C. Circuit, including the EPA's interpretation of tolling rule deadlines and the State of Wisconsin's arguments to be removed from the rule, leaves unresolved issues that may affect whether, when, and how MGE's facilities will need to comply with this rule. We have worked to achieve compliance with Phase I requirements, should those requirements be confirmed as being effective as of January 1, 2015, while monitoring the court proceedings, which will extend into 2015, as well as any additional actions taken by the EPA in response to its request for comments on the reinstated rule. Further, MGE expects to be able to meet CSAPR requirements by applying reductions achieved from recent pollution control installations at Columbia and early reduction efforts at Blount. We will continue to monitor and evaluate the D.C. Circuit Court remand proceedings and the implementation of the interim rule by the EPA. | |||||||||||||||
Clean Air Visibility Rule (CAVR) | |||||||||||||||
Air modeling indicates that SO2 and NOx emissions from Columbia may impair visibility at certain Class I Scenic Areas. Columbia may, therefore, be subject to the best available retrofit technology (BART) regulations, a subsection of the EPA's Clean Air Visibility Rule (CAVR), which may require pollution control retrofits. The EPA has issued rules directing that compliance with emissions limitations in the CSAPR could also serve as compliance with the BART for SO2 and NOx emissions at electric plants such as Columbia. However, these rules are subject to a legal challenge pending before the D.C. Circuit. In addition, an environmental group had sought, then dismissed without prejudice to refile, a federal appellate court review of Wisconsin's implementation plan for the BART portion of CAVR. These BART rules remain uncertain while subject to the pending legal challenges and while regulatory uncertainty surrounds the CSAPR. Thus, at this time, the BART regulatory obligations, compliance strategies, and costs remain uncertain. | |||||||||||||||
Solid Waste | |||||||||||||||
EPA’s Coal Combustion Residuals Rule | |||||||||||||||
In December 2014, the EPA finalized its Disposal of Coal Combustion Residuals from Electric Utilities rule. The rule will go into effect six months after it is published in the Federal Register. The rule provides that coal ash will be regulated as a special waste rather than a hazardous waste and more strictly defines what ash use activities would be exempt from solid waste disposal and considered beneficial use of coal ash. The rule also regulates landfills, ash ponds, and other surface impoundments for coal combustion residuals (CCRS or coal ash) by regulating their design, location, monitoring, and operation. | |||||||||||||||
The final rule is intended to reduce the risk of structural failure of impoundments (ash ponds) and protect groundwater from both impoundment and landfill operations by setting new standards. The rule requires closure of active coal ash ponds and landfills that do not upgrade to meet these standards. Facilities with landfills and/or surface impoundments will be subject to various timeframes for meeting new regulatory requirements depending on the type of landfill or surface impoundment onsite, whether the site has failed any required integrity testing, and whether the facility intends to upgrade to meet regulatory requirements or begin closure proceedings. Timeframes to meet various compliance parameters can vary from 18 months to over 5 years. | |||||||||||||||
The Columbia and Elm Road Units co-owners and plant operators are evaluating the final rule to determine what changes may be necessary at those facilities and the associated timeframes. We anticipate that some design and operational changes may need to be made at these facilities; however, evaluation of this rule is not completed so we are unable to estimate with any certainty the costs to MGE operations at this time. Management believes any compliance costs will be recovered in future rates. | |||||||||||||||
Columbia | |||||||||||||||
Based upon current available information, compliance with various environmental requirements and initiatives is expected to result in significant additional operating and capital expenditures at Columbia as noted below. | |||||||||||||||
Columbia Clean Air Act Litigation | |||||||||||||||
In December 2009, the EPA sent a notice of violation (NOV) to MGE and the other co-owners of Columbia. The NOV alleged that WPL, as owner-operator, and the other co-owners failed to comply with appropriate pre-construction review and permitting requirements and, as a result, violated the PSD program requirements, the Title V operating permit requirements of the CAA, and the Wisconsin State Implementation Plan (SIP). In April 2013, the EPA filed a lawsuit against the co-owners of Columbia asserting similar allegations. In September 2010 and April 2013, Sierra Club filed lawsuits against WPL alleging violations of the CAA at Columbia and other WPL-operated Wisconsin facilities. | |||||||||||||||
In April 2013, WPL, as owner-operator, along with the other owners of Columbia, entered into a consent decree with the EPA and the Sierra Club to resolve these claims, while admitting no liability. In June 2013, the consent decree was approved and entered by the Court. The consent decree requires installation of the following emission controls at Columbia: SO2 scrubbers and baghouses at Columbia Units 1 and 2 by December 31, 2014 (which have now been installed) and an SCR system at Columbia Unit 2 by December 31, 2018. Installation of the SCR was recently authorized by the PSCW. In addition, the consent decree establishes emission rate limits for SO2, NOx, and particulate matter for Columbia Units 1 and 2. The consent decree also includes annual plant-wide emission caps for SO2 and NOx for Columbia. MGE also paid approximately $0.2 million as its share of a civil penalty and will complete approximately $0.6 million in environmental mitigation projects. MGE intends to seek recovery in rates of the costs associated with its compliance with the terms of the final consent decree and currently expects to recover any material compliance costs. | |||||||||||||||
e. Legal Matters - MGE Energy and MGE. | |||||||||||||||
MGE is involved in various legal matters that are being defended and handled in the normal course of business. MGE maintains accruals for such 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. | |||||||||||||||
f. Elm Road - MGE Energy and MGE. | |||||||||||||||
During 2013, WEPCO and Bechtel (the construction contractor for the Elm Road Units) were working through the outstanding warranty claims. The warranty claim for the costs incurred to repair steam turbine corrosion damage identified on both units was resolved through a binding arbitration in June 2013. Final acceptance of the Elm Road Units occurred in June 2013 after all requirements stated in the contract with Bechtel were satisfied. All warranty claims between WEPCO and Bechtel have now been resolved, none of which had a material impact on our financial statements. | |||||||||||||||
g. Other Commitments. | |||||||||||||||
MGE Energy holds investments in nonpublic entities. From time to time, these entities require additional capital infusions from their investors. MGE Energy has committed to contribute $1.4 million in capital for such infusions. The timing of these infusions is dependent on the needs of the investee and is therefore uncertain at this time. | |||||||||||||||
In addition, MGE Energy has a three year agreement with a venture debt fund expiring in December 2016. MGE Energy has committed to invest up to a total of $1.0 million into this fund. As of December 31, 2014, MGE Energy has $0.2 million remaining in commitments. The timing of infusions is dependent on the needs of the fund and is therefore uncertain at this time. | |||||||||||||||
MGE has several other commitments related to various projects. Payments for these commitments are expected to be as follows: | |||||||||||||||
(In thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||
Other Commitments | $ | 474 | $ | 475 | $ | 433 | $ | 435 | $ | 437 | $ | 6,524 |
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Asset Retirement Obligation Disclosure [Abstract] | |||||||
Asset Retirement Obligations | Asset Retirement Obligations - MGE Energy and MGE. | ||||||
MGE recorded an obligation for the fair value of its legal liability for asset retirement obligations (AROs) associated with removal of the West Campus Cogeneration Facility and the Elm Road generating units, electric substations, combustion turbine generating units, wind generating facilities, and photovoltaic generating facilities, all of which are located on property not owned by MGE Energy and MGE and would need to be removed upon the ultimate end of the associated leases. The significant conditional AROs identified by MGE included the costs of abandoning in place gas services and mains, the abatement and disposal of equipment and buildings contaminated with asbestos and PCBs, and the proper disposal and removal of tanks, batteries, and underground cable. Changes in management's assumptions regarding settlement dates, settlement methods, or assigned probabilities could have a material effect on the liabilities recorded by MGE at December 31, 2014, as well as the regulatory asset recorded. | |||||||
MGE also may have AROs relating to the removal of various assets, such as certain electric and gas distribution facilities. These facilities are generally located on property owned by third parties, on which MGE is permitted to operate by lease, permit, easement, license, or service agreement. The asset retirement obligations associated with these facilities cannot be reasonably determined due to the indeterminate life of the related agreements. | |||||||
The following table shows a rollforward of the AROs from January 1, 2013 to December 31, 2014. Amounts include conditional AROs. | |||||||
(In thousands) | 2014 | 2013 | |||||
Balance at January 1, | $ | 19,359 | $ | 18,768 | |||
Liabilities incurred | 68 | 296 | |||||
Accretion expense | 1,077 | 1,015 | |||||
Liabilities settled | -343 | -744 | |||||
Revisions in estimated cash flows | -417 | 24 | |||||
Balance at December 31, | $ | 19,744 | $ | 19,359 |
Columbia_Environmental_Project
Columbia Environmental Project Construction | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Jointly Owned Utility Plant Interests [Line Items] | |||||||
Columbia Environmental Project Construction | Joint Plant Ownership - MGE Energy and MGE. | ||||||
a. Columbia. | |||||||
MGE and two other utilities jointly own Columbia, a coal-fired generating facility located in Portage, Wisconsin, which accounts for 31% (239 MW) of MGE's net summer rated capacity. Power from this facility is shared in proportion to each company's ownership interest. MGE has a 22% ownership interest in Columbia. The other owners are WPL, which operates Columbia, and WPSC. MGE's share of fuel, operating, and maintenance expenses for Columbia were $28.1 million, $37.5 million, and $36.3 million for the years ended December 31, 2014, 2013, and 2012, respectively. See Footnote 20 for discussion of MGE's future capital commitments in respect to the environmental projects at Columbia as a result of this ownership interest. | |||||||
Each owner provides its own financing and reflects its respective portion of facilities and operating costs in its financial statements. MGE's interest in Columbia, included in its gross utility plant in service, and the related accumulated depreciation reserves at December 31 were as follows: | |||||||
(In thousands) | 2014 | 2013 | |||||
Utility plant | $ | 268,597 | $ | 123,097 | |||
Accumulated depreciation | -80,645 | -78,880 | |||||
Property, plant, and equipment, net | $ | 187,952 | $ | 44,217 | |||
Construction work in progress | 6,941 | 120,858 | |||||
Total property, plant, and equipment | $ | 194,893 | $ | 165,075 | |||
b. Elm Road. | |||||||
MGE Power Elm Road owns an 8.33% ownership interest in each of two 615 MW coal-fired generating units in Oak Creek, Wisconsin, which accounts for 14% (106 MW) of MGE’s net summer rated capacity. Unit 1 entered commercial operation on February 2, 2010. Unit 2 entered commercial operation on January 12, 2011. MGE Power Elm Road's sole principal asset is that ownership interest in those generating units. MGE Power Elm Road’s interest in the Elm Road Units is leased to MGE pursuant to long-term leases. | |||||||
The remainder of the ownership interest in the Elm Road Units is held by two other entities, one of which is also responsible for the Units’ operation. Each owner provides its own financing and reflects its respective portion of the facility and costs in its financial statements. MGE’s share of fuel, operating, and maintenance expenses for the Elm Road Units were $20.3 million, $13.4 million, and $13.2 million for the years ended December 31, 2014, 2013, and 2012, respectively. MGE Power Elm Road’s interest in the portion of the Elm Road Units in-service and the related accumulated depreciation reserves at December 31 were as follows: | |||||||
(In thousands) | 2014 | 2013 | |||||
Nonregulated plant | $ | 199,582 | $ | 198,198 | |||
Accumulated depreciation | -19,962 | -15,541 | |||||
Property, plant, and equipment, net | $ | 179,620 | $ | 182,657 | |||
Construction work in progress | 1,976 | 1,115 | |||||
Total property, plant, and equipment | $ | 181,596 | $ | 183,772 | |||
c. WCCF. | |||||||
MGE Power West Campus and the UW jointly own the West Campus Cogeneration Facility located on the UW campus in Madison, Wisconsin. MGE Power West Campus owns 55% of the facility and the UW owns 45% of the facility. The UW owns a controlling interest in the chilled-water and steam plants, which are used to meet the growing needs for air-conditioning and steam-heat capacity for the UW campus. MGE Power West Campus owns a controlling interest in the electric generation plant, which is leased and operated by MGE. | |||||||
Each owner provides its own financing and reflects its respective portion of the facility and operating costs in its financial statements. MGE Power West Campus' interest in WCCF and the related accumulated depreciation reserves at December 31 were as follows: | |||||||
(In thousands) | 2014 | 2013 | |||||
Nonregulated plant | $ | 111,453 | $ | 111,268 | |||
Accumulated depreciation | -24,691 | -21,704 | |||||
Property, plant, and equipment, net | $ | 86,762 | $ | 89,564 | |||
Operating charges are allocated to the UW based on formulas contained in the operating agreement. Under the provisions of this arrangement, the UW is required to reimburse MGE for their allocated portion of fuel and operating expenses. For the year ended December 31, 2014, the UW allocated share of fuel and operating costs was $2.8 million. For the years ended December 31, 2013 and 2012, the UW allocated share of fuel and operating costs was $4.9 million. | |||||||
Columbia Environmental Project [Member] | |||||||
Jointly Owned Utility Plant Interests [Line Items] | |||||||
Columbia Environmental Project Construction | Columbia Environmental Project Construction - MGE Energy and MGE. | ||||||
MGE and two other utilities jointly own Columbia, a coal-fired generating facility. WPL is the plant operator and permit holder, and owns 46.2% of Columbia. WPSC owns a 31.8% interest and MGE owns a 22% interest in Columbia. In early 2011, the PSCW issued a Certificate and Order authorizing the construction of scrubbers and baghouses and associated equipment on Columbia Units 1 and 2 to reduce SO2 and mercury emissions. The modifications to Unit 2 were placed into service in April 2014, and the modifications to Unit 1 were placed into service in July 2014. The scrubbers and baghouses are expected to support compliance obligations for current and anticipated air quality regulations, including CAIR, CSAPR, MATS, and the Wisconsin Mercury Rule. As of December 31, 2014, $138.8 million of the capitalized project was transferred from Construction work in progress to Property, plant, and equipment on MGE's balance sheet related to Units 1 and 2 being placed into service. This total amount consisted of $129.0 million of capital expenditures and $9.8 million of AFUDC. MGE's share of various contractual commitments entered for the project as of December 31, 2014 is $0.5 million. For the years ended December 31, 2014 and 2013, MGE has recognized after tax $3.0 million and $2.7 million, respectively, in AFUDC equity related to this project. | |||||||
MGE expects that the costs pertaining to this project will be fully recoverable through rates. For 2014, the PSCW authorized MGE 100% AFUDC on this project during construction. For 2013, the PSCW authorized MGE a 50% current return (included in customer rates) and the remaining 50% as AFUDC. |
Adoption_of_Accounting_Princip
Adoption of Accounting Principles and Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Adoption of Accounting Principles and Recently Issued Accounting Pronouncements | Adoption of Accounting Principles and Recently Issued Accounting Pronouncements - MGE Energy and MGE. |
a. Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. | |
In February 2013, the FASB issued authoritative guidance within the Codification's Balance Sheet topic that provides guidance on the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. This authoritative guidance became effective January 1, 2014. The authoritative guidance did not have a financial or disclosure impact. | |
b. Presentation of an Unrecognized Tax Benefit. | |
In July 2013, the FASB issued authoritative guidance within the Codification's Income Statement topic that provides guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The authoritative guidance was issued to eliminate diversity in practice by providing guidance on the presentation of unrecognized tax benefits. This authoritative guidance became effective January 1, 2014. The authoritative guidance will not have a financial statement or disclosure impact, unless MGE Energy or its subsidiaries are in a net operating loss position. MGE Energy or its subsidiaries are currently not in a net operating loss position. | |
c. Revenue from Contracts with Customers. | |
In May 2014, the FASB issued authoritative guidance within the Codification's Revenue Recognition topic that provides guidance on the recognition, measurement, and disclosure of revenue from contracts with customers. This authoritative guidance will become effective January 1, 2017. MGE Energy and MGE are currently assessing the impact this pronouncement will have on their financial statements. | |
d. Transfers and Servicing Assets. | |
In June 2014, the FASB issued authoritative guidance within the Codification's Transfers and Servicing topic that provides guidance on the accounting and disclosures for repurchase-to-maturity transactions, securities lending transactions, and repurchase financings. This authoritative guidance is effective January 1, 2015. The authoritative guidance will change the accounting for the Chattel Paper program. Prior to adoption of the standard, Chattel Paper was treated as an off-balance sheet arrangement. Upon adoption, assets and liabilities will increase approximately $4.4 million and additional disclosures will be required. The cumulative impact of this guidance on our financial statements is not expected to be material. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||
Segment Information | Segment Information - MGE Energy and MGE. | |||||||||||||||||
The electric utility business purchases, generates and distributes electricity, and contracts for transmission service. The gas utility business purchases and distributes natural gas and contracts for the transportation of natural gas. Both the electric and gas segments operate through MGE Energy's principal subsidiary, MGE. | ||||||||||||||||||
The nonregulated energy operations are conducted through MGE Energy's subsidiaries: MGE Power, MGE Power Elm Road, and MGE Power West Campus. These subsidiaries own and lease electric generating capacity to assist MGE. MGE Power Elm Road has an ownership interest in two coal-fired generating units in Oak Creek, Wisconsin, which are leased to MGE, and MGE Power West Campus owns a controlling interest in the electric generation plant of a natural gas-fired cogeneration facility on the UW campus. MGE Power West Campus’s portion is also leased to MGE. | ||||||||||||||||||
The transmission investment segment invests, through MGE Transco, in ATC, a company that provides electric transmission services primarily in Wisconsin. See Footnote 4 for further discussion of MGE Transco and the investment in ATC. | ||||||||||||||||||
The "All Others" segment includes: corporate, CWDC, MAGAEL, MGE State Energy Services, and NGV Fueling Services. These entities' operations consist of investing in companies and property which relate to the regulated operations, financing the regulated operations, or owning and operating natural gas compression equipment. | ||||||||||||||||||
General corporate expenses include the cost of executive management, corporate accounting and finance, information technology, risk management, human resources and legal functions, and employee benefits that are allocated to electric and gas segments based on formulas prescribed by the PSCW. Identifiable assets are those used in MGE's operations in each segment. Assets not allocated consist primarily of cash and cash equivalents, restricted cash, investments, other accounts receivable, and prepaid assets. | ||||||||||||||||||
Sales between our electric and gas segments are based on PSCW approved tariffed rates. Additionally, intersegment operations related to the leasing arrangement between our electric segment and MGE Power Elm Road/MGE Power West Campus are based on terms previously approved by the PSCW. Consistent with internal reporting, management has presented the direct financing capital leases between MGE and MGE Power Elm Road/MGE Power West Campus based on actual lease payments included in rates. Lease payments made by MGE to MGE Power Elm Road and MGE Power West Campus are shown as operating expenses. The lease payments received by MGE Power Elm Road and MGE Power West Campus from MGE are shown as lease income in interdepartmental revenues. The depreciation expense associated with the Elm Road Units and WCCF is reflected in the nonregulated energy segment. | ||||||||||||||||||
The following table shows segment information for MGE Energy's and MGE's operations: | ||||||||||||||||||
(In thousands)MGE Energy | Electric | Gas | Non-Regulated Energy | Transmission Investment | All Others | Consolidation/ Elimination Entries | Consolidated Total | |||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||
Operating revenues | $ | 394,849 | $ | 221,720 | $ | 3,283 | $ | - | $ | - | $ | - | $ | 619,852 | ||||
Interdepartmental revenues | 509 | 8,366 | 42,692 | - | - | -51,567 | - | |||||||||||
Total operating revenues | 395,358 | 230,086 | 45,975 | - | - | -51,567 | 619,852 | |||||||||||
Depreciation and amortization | -26,933 | -6,308 | -7,407 | - | -47 | - | -40,695 | |||||||||||
Other operating expenses | -297,409 | -194,203 | -139 | - | -875 | 51,567 | -441,059 | |||||||||||
Operating income (loss) | 71,016 | 29,575 | 38,429 | - | -922 | - | 138,098 | |||||||||||
Other (deductions) income, net | 2,847 | -86 | - | 9,150 | -1,832 | - | 10,079 | |||||||||||
Interest (expense) income, net | -10,410 | -3,229 | -6,208 | - | 174 | - | -19,673 | |||||||||||
Income (loss) before taxes | 63,453 | 26,260 | 32,221 | 9,150 | -2,580 | - | 128,504 | |||||||||||
Income tax (provision) benefit | -22,070 | -10,480 | -12,932 | -3,664 | 961 | - | -48,185 | |||||||||||
Net income (loss) | $ | 41,383 | $ | 15,780 | $ | 19,289 | $ | 5,486 | $ | -1,619 | $ | - | $ | 80,319 | ||||
Year Ended December 31, 2013 | ||||||||||||||||||
Operating revenues | $ | 403,957 | $ | 181,462 | $ | 5,468 | $ | - | $ | - | $ | - | $ | 590,887 | ||||
Interdepartmental revenues | 537 | 12,629 | 42,591 | - | - | -55,757 | - | |||||||||||
Total operating revenues | 404,494 | 194,091 | 48,059 | - | - | -55,757 | 590,887 | |||||||||||
Depreciation and amortization | -25,780 | -5,898 | -7,156 | - | -4 | - | -38,838 | |||||||||||
Other operating expenses | -316,277 | -162,661 | -128 | -1 | -752 | 55,757 | -424,062 | |||||||||||
Operating income (loss) | 62,437 | 25,532 | 40,775 | -1 | -756 | - | 127,987 | |||||||||||
Other (deductions) income, net | 3,062 | 59 | - | 9,434 | -1,854 | - | 10,701 | |||||||||||
Interest (expense) income, net | -9,645 | -2,986 | -6,400 | - | 107 | - | -18,924 | |||||||||||
Income (loss) before taxes | 55,854 | 22,605 | 34,375 | 9,433 | -2,503 | - | 119,764 | |||||||||||
Income tax (provision) benefit | -19,176 | -9,168 | -13,682 | -3,796 | 963 | - | -44,859 | |||||||||||
Net income (loss) | $ | 36,678 | $ | 13,437 | $ | 20,693 | $ | 5,637 | $ | -1,540 | $ | - | $ | 74,905 | ||||
Year Ended December 31, 2012 | ||||||||||||||||||
Operating revenues | $ | 392,365 | $ | 139,727 | $ | 9,231 | $ | - | $ | - | $ | - | $ | 541,323 | ||||
Interdepartmental revenues | 487 | 12,814 | 34,714 | - | - | -48,015 | - | |||||||||||
Total operating revenues | 392,852 | 152,541 | 43,945 | - | - | -48,015 | 541,323 | |||||||||||
Depreciation and amortization | -26,031 | -5,569 | -7,107 | - | - | - | -38,707 | |||||||||||
Other operating expenses | -300,149 | -136,567 | -121 | - | -1,031 | 48,015 | -389,853 | |||||||||||
Operating income (loss) | 66,672 | 10,405 | 36,717 | - | -1,031 | - | 112,763 | |||||||||||
Other (deductions) income, net | 1,145 | 323 | - | 9,080 | -479 | - | 10,069 | |||||||||||
Interest (expense) income, net | -10,189 | -2,874 | -6,537 | - | 133 | - | -19,467 | |||||||||||
Income (loss) before taxes | 57,628 | 7,854 | 30,180 | 9,080 | -1,377 | - | 103,365 | |||||||||||
Income tax (provision) benefit | -20,906 | -2,769 | -12,113 | -3,648 | 517 | - | -38,919 | |||||||||||
Net income (loss) | $ | 36,722 | $ | 5,085 | $ | 18,067 | $ | 5,432 | $ | -860 | $ | - | $ | 64,446 | ||||
(In thousands)MGE | Electric | Gas | Non-Regulated Energy | Transmission Investment | Consolidation/ Elimination Entries | Consolidated Total | ||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||
Operating revenues | $ | 394,871 | $ | 221,741 | $ | 3,283 | $ | - | $ | - | $ | 619,895 | ||||||
Interdepartmental revenues | 487 | 8,345 | 42,692 | - | -51,524 | - | ||||||||||||
Total operating revenues | 395,358 | 230,086 | 45,975 | - | -51,524 | 619,895 | ||||||||||||
Depreciation and amortization | -26,933 | -6,308 | -7,407 | - | - | -40,648 | ||||||||||||
Other operating expenses* | -319,175 | -204,597 | -13,071 | - | 51,524 | -485,319 | ||||||||||||
Operating income* | 49,250 | 19,181 | 25,497 | - | - | 93,928 | ||||||||||||
Other (deductions) income, net* | 2,543 | -172 | - | 5,486 | - | 7,857 | ||||||||||||
Interest expense, net | -10,410 | -3,229 | -6,208 | - | - | -19,847 | ||||||||||||
Net income | 41,383 | 15,780 | 19,289 | 5,486 | - | 81,938 | ||||||||||||
Less: Net income attributable to | ||||||||||||||||||
noncontrolling interest, net of tax | - | - | - | - | -26,310 | -26,310 | ||||||||||||
Net income attributable to MGE | $ | 41,383 | $ | 15,780 | $ | 19,289 | $ | 5,486 | $ | -26,310 | $ | 55,628 | ||||||
Year Ended December 31, 2013 | ||||||||||||||||||
Operating revenues | $ | 403,980 | $ | 181,477 | $ | 5,468 | $ | - | $ | - | $ | 590,925 | ||||||
Interdepartmental revenues | 514 | 12,614 | 42,591 | - | -55,719 | - | ||||||||||||
Total operating revenues | 404,494 | 194,091 | 48,059 | - | -55,719 | 590,925 | ||||||||||||
Depreciation and amortization | -25,780 | -5,898 | -7,156 | - | - | -38,834 | ||||||||||||
Other operating expenses* | -335,059 | -171,717 | -13,810 | -1 | 55,719 | -464,868 | ||||||||||||
Operating income (loss)* | 43,655 | 16,476 | 27,093 | -1 | - | 87,223 | ||||||||||||
Other (deductions) income, net* | 2,668 | -53 | - | 5,638 | - | 8,253 | ||||||||||||
Interest expense, net | -9,645 | -2,986 | -6,400 | - | - | -19,031 | ||||||||||||
Net income | 36,678 | 13,437 | 20,693 | 5,637 | - | 76,445 | ||||||||||||
Less: net income attributable to | ||||||||||||||||||
noncontrolling interest, net of tax | - | - | - | - | -27,438 | -27,438 | ||||||||||||
Net income attributable to MGE | $ | 36,678 | $ | 13,437 | $ | 20,693 | $ | 5,637 | $ | -27,438 | $ | 49,007 | ||||||
Year Ended December 31, 2012 | ||||||||||||||||||
Operating revenues | $ | 392,365 | $ | 139,727 | $ | 9,231 | $ | - | $ | - | $ | 541,323 | ||||||
Interdepartmental revenues | 487 | 12,814 | 34,714 | - | -48,015 | - | ||||||||||||
Total operating revenues | 392,852 | 152,541 | 43,945 | - | -48,015 | 541,323 | ||||||||||||
Depreciation and amortization | -26,031 | -5,569 | -7,107 | - | - | -38,707 | ||||||||||||
Other operating expenses* | -320,701 | -139,236 | -12,234 | - | 48,015 | -424,156 | ||||||||||||
Operating income* | 46,120 | 7,736 | 24,604 | - | - | 78,460 | ||||||||||||
Other income, net* | 791 | 223 | - | 5,432 | - | 6,446 | ||||||||||||
Interest expense, net | -10,189 | -2,874 | -6,537 | - | - | -19,600 | ||||||||||||
Net income | 36,722 | 5,085 | 18,067 | 5,432 | - | 65,306 | ||||||||||||
Less: Net income attributable to | ||||||||||||||||||
noncontrolling interest, net of tax | - | - | - | - | -24,489 | -24,489 | ||||||||||||
Net income attributable to MGE | $ | 36,722 | $ | 5,085 | $ | 18,067 | $ | 5,432 | $ | -24,489 | $ | 40,817 | ||||||
*Amounts are shown net of the related tax expense, consistent with the presentation on the consolidated MGE Income Statement. | ||||||||||||||||||
The following table shows segment information for MGE Energy's and MGE's assets and capital expenditures: | ||||||||||||||||||
Utility | Consolidated | |||||||||||||||||
(In thousands) MGE Energy | Electric | Gas | Assetsnot Allocated | Nonregulated Energy | Transmission Investment | All Others | Consolidation/ Elimination Entries | Total | ||||||||||
Assets: | ||||||||||||||||||
31-Dec-14 | $ | 948,241 | $ | 308,499 | $ | 41,346 | $ | 281,410 | $ | 67,697 | $ | 441,109 | $ | -390,636 | $ | 1,697,666 | ||
31-Dec-13 | 899,257 | 265,694 | 19,853 | 288,116 | 64,504 | 431,436 | -389,800 | 1,579,060 | ||||||||||
31-Dec-12 | 888,444 | 285,468 | 18,559 | 323,216 | 61,064 | 413,291 | -403,118 | 1,586,924 | ||||||||||
Capital Expenditures: | ||||||||||||||||||
Year ended Dec. 31, 2014 | $ | 68,067 | $ | 22,104 | $ | - | $ | 2,505 | $ | - | $ | - | $ | - | $ | 92,676 | ||
Year ended Dec. 31, 2013 | 100,146 | 15,554 | - | 3,347 | - | - | - | 119,047 | ||||||||||
Year ended Dec. 31, 2012 | 81,965 | 13,812 | - | 2,658 | - | - | - | 98,435 | ||||||||||
Utility | Consolidated | |||||||||||||||||
(In thousands)MGE | Electric | Gas | Assetsnot Allocated | Nonregulated Energy | Transmission Investment | Consolidation/ Elimination Entries | Total | |||||||||||
Assets: | ||||||||||||||||||
31-Dec-14 | $ | 948,241 | $ | 308,499 | $ | 41,346 | $ | 281,360 | $ | 67,697 | $ | -6,521 | $ | 1,640,622 | ||||
31-Dec-13 | 899,257 | 265,694 | 19,853 | 288,066 | 64,504 | -6,731 | 1,530,643 | |||||||||||
31-Dec-12 | 888,444 | 285,468 | 18,559 | 323,166 | 61,064 | -23,050 | 1,553,651 | |||||||||||
Capital Expenditures: | ||||||||||||||||||
Year ended Dec. 31, 2014 | $ | 68,067 | $ | 22,104 | $ | - | $ | 2,505 | $ | - | $ | - | $ | 92,676 | ||||
Year ended Dec. 31, 2013 | 100,146 | 15,554 | - | 3,347 | - | - | 119,047 | |||||||||||
Year ended Dec. 31, 2012 | 81,965 | 13,812 | - | 2,658 | - | - | 98,435 |
Quarterly_Summary_of_Operation
Quarterly Summary of Operations | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Quarterly Summary of Operations | Quarterly Summary of Operations - MGE Energy (unaudited). | ||||||||||
(In thousands, except per share amounts) | Quarters Ended | ||||||||||
2014 | March 31 | June 30 | September 30 | December 31 | |||||||
Operating revenues: | |||||||||||
Regulated electric revenues | $ | 98,852 | $ | 96,697 | $ | 112,869 | $ | 86,431 | |||
Regulated gas revenues | 110,713 | 31,218 | 21,404 | 58,385 | |||||||
Nonregulated revenues | 680 | 850 | 862 | 891 | |||||||
Total Operating Revenues | 210,245 | 128,765 | 135,135 | 145,707 | |||||||
Operating expenses | 166,274 | 104,324 | 95,015 | 116,141 | |||||||
Operating income | 43,971 | 24,441 | 40,120 | 29,566 | |||||||
Interest and other income, net | 11 | -1,320 | -2,505 | -5,780 | |||||||
Income tax provision | -16,265 | -9,034 | -14,286 | -8,600 | |||||||
Earnings on common stock | $ | 27,717 | $ | 14,087 | $ | 23,329 | $ | 15,186 | |||
Earnings per common share | $ | 0.8 | $ | 0.41 | $ | 0.67 | $ | 0.44 | |||
Dividends per share | $ | 0.272 | $ | 0.272 | $ | 0.283 | $ | 0.283 | |||
2013 | |||||||||||
Operating revenues: | |||||||||||
Regulated electric revenues | $ | 93,494 | $ | 96,846 | $ | 119,836 | $ | 93,781 | |||
Regulated gas revenues | 72,467 | 30,042 | 18,864 | 60,089 | |||||||
Nonregulated revenues | 1,276 | 1,400 | 1,399 | 1,393 | |||||||
Total Operating Revenues | 167,237 | 128,288 | 140,099 | 155,263 | |||||||
Operating expenses | 129,609 | 103,791 | 100,199 | 129,301 | |||||||
Operating income | 37,628 | 24,497 | 39,900 | 25,962 | |||||||
Interest and other income, net | -1,366 | -1,946 | -855 | -4,056 | |||||||
Income tax provision | -13,678 | -8,660 | -14,692 | -7,829 | |||||||
Earnings on common stock | $ | 22,584 | $ | 13,891 | $ | 24,353 | $ | 14,077 | |||
Earnings per common share | $ | 0.65 | $ | 0.4 | $ | 0.7 | $ | 0.41 | |||
Dividends per share | $ | 0.263 | $ | 0.263 | $ | 0.272 | $ | 0.272 | |||
Notes: | |||||||||||
• The quarterly results of operations within a year may not be comparable because of seasonal and other factors. | |||||||||||
• The sum of earnings per share of common stock for any four quarters may vary slightly from the earnings per share of common stock for the equivalent twelve-month period due to rounding. | |||||||||||
• MGE Energy's operations are based primarily on its utility subsidiary MGE. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions - MGE Energy and MGE. |
ATC | |
During 2014, 2013, and 2012, MGE recorded $26.8 million, $27.7 million, and $25.3 million, respectively, for transmission services received from ATC. MGE also provides a variety of operational, maintenance, and project management work for ATC, which is reimbursed by ATC. For the year ended December 31, 2014, MGE had a receivable due from ATC of $0.1 million. For the years ended December 31, 2013 and 2012, MGE had a receivable due from ATC of $0.2 million. | |
For additional discussion on MGE's relationship with ATC, see Footnote 4. |
Condensed_Parent_Company_Finan
Condensed Parent Company Financial Statements | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||
Condensed Parent Company Financial Statements | Schedule I | ||||||||
Condensed Parent Company Financial Statements | |||||||||
MGE Energy, Inc. | |||||||||
Statements of Comprehensive Income | |||||||||
(Parent Company Only) | |||||||||
(In thousands) | |||||||||
For the years ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Operating Expenses: | |||||||||
Other operations and maintenance | $ | 689 | $ | 613 | $ | 649 | |||
Total Operating Expenses | 689 | 613 | 649 | ||||||
Operating Loss | -689 | -613 | -649 | ||||||
Equity in earnings of investments | 81,811 | 76,362 | 65,132 | ||||||
Other income/(loss), net | -1,879 | -1,863 | -496 | ||||||
Other interest | 93 | 55 | 45 | ||||||
Income before income taxes | 79,336 | 73,941 | 64,032 | ||||||
Income tax provision | 983 | 964 | 414 | ||||||
Net Income | 80,319 | 74,905 | 64,446 | ||||||
Other Comprehensive Income, Net of Tax: | |||||||||
Unrealized gain (loss) on available-for-sale securities, net of | |||||||||
tax (($54), ($189), and $12) | 81 | 283 | -18 | ||||||
Comprehensive Income | $ | 80,400 | $ | 75,188 | $ | 64,428 | |||
The accompanying notes are an integral part of the above consolidated financial statements. | |||||||||
MGE Energy, Inc. | |||||||||
Statements of Cash Flows | |||||||||
(Parent Company Only) | |||||||||
(In thousands) | |||||||||
For the years ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Net Cash Flows Provided by Operating Activities | $ | 48,165 | $ | 53,952 | $ | 49,819 | |||
Investing Activities: | |||||||||
Other investing | -2,422 | -2,425 | -1,558 | ||||||
Cash Provided by (Used for) Investing Activities | -2,422 | -2,425 | -1,558 | ||||||
Financing Activities: | |||||||||
Cash dividends paid on common stock | -38,429 | -37,107 | -35,951 | ||||||
Other financing | -89 | -97 | -49 | ||||||
Cash Used for Financing Activities | -38,518 | -37,204 | -36,000 | ||||||
Change in Cash and Cash Equivalents: | 7,225 | 14,323 | 12,261 | ||||||
Cash and cash equivalents at beginning of period | 51,204 | 36,881 | 24,620 | ||||||
Cash and cash equivalents at end of period | $ | 58,429 | $ | 51,204 | $ | 36,881 | |||
The accompanying notes are an integral part of the above consolidated financial statements. | |||||||||
Schedule I | |||||||||
Condensed Parent Company Financial Statements (continued) | |||||||||
MGE Energy, Inc. | |||||||||
Balance Sheets | |||||||||
(Parent Company Only) | |||||||||
(In thousands) | |||||||||
At December 31, | |||||||||
ASSETS | 2014 | 2013 | |||||||
Current Assets: | |||||||||
Cash and cash equivalents | $ | 58,429 | $ | 51,204 | |||||
Accounts receivable, net: | |||||||||
Accounts receivable from affiliates | 64 | 125 | |||||||
Other current assets | 2,809 | 1,015 | |||||||
Total Current Assets | 61,302 | 52,344 | |||||||
Other deferred assets and other | 140 | 157 | |||||||
Investments: | |||||||||
Investments in affiliates | 619,563 | 583,435 | |||||||
Other investments | 1,177 | 948 | |||||||
Total Investments | 620,740 | 584,383 | |||||||
Total Assets | $ | 682,182 | $ | 636,884 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Current Liabilities: | |||||||||
Accounts payable to affiliates | $ | 7,096 | $ | 530 | |||||
Accrued taxes | 663 | 4,297 | |||||||
Other current liabilities | 2,601 | 3,076 | |||||||
Total Current Liabilities | 10,360 | 7,903 | |||||||
Other Credits: | |||||||||
Deferred income taxes | 7,125 | 5,646 | |||||||
Accounts payable to affiliates | 5,296 | 5,825 | |||||||
Total Other Credits | 12,421 | 11,471 | |||||||
Shareholders' Equity: | |||||||||
Common shareholders' equity | 350,936 | 350,936 | |||||||
Retained income | 308,007 | 266,197 | |||||||
Other comprehensive income | 458 | 377 | |||||||
Total Shareholders' Equity | 659,401 | 617,510 | |||||||
Commitments and contingencies (see Footnote 3) | - | - | |||||||
Total Liabilities and Shareholders' Equity | $ | 682,182 | $ | 636,884 | |||||
The accompanying notes are an integral part of the above consolidated financial statements. | |||||||||
Schedule I | |||||||||
Condensed Parent Company Financial Statements (continued) | |||||||||
Notes to Condensed Financial Statements | |||||||||
(Parent Company Only) | |||||||||
1. Basis of Presentation. | |||||||||
MGE Energy is a holding company and conducts substantially all of its business operations through its subsidiaries. For Parent Company only presentation, investment in subsidiaries are accounted for using the equity method. These condensed Parent Company financial statements and related notes have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X. These statements should be read in conjunction with the financial statements and the notes in Item 8. Financial Statements and Supplementary Data of the Annual Report on Form 10-K for the year ended December 31, 2014. | |||||||||
2. Credit Agreements. | |||||||||
As of December 31, 2014, MGE Energy had access to an unsecured, committed credit facility with aggregate bank commitments of $50.0 million. At December 31, 2014, no borrowings were outstanding under this facility. | |||||||||
See Footnote 10 of the Notes to Consolidated Financial Statements for further information regarding MGE Energy's credit agreements. | |||||||||
3. Commitments and Contingencies. | |||||||||
See Footnote 18 of the Notes to Consolidated Financial Statements for commitments and contingencies. | |||||||||
4. Dividends from Affiliates. | |||||||||
Dividends from Affiliates | |||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||
MGE | $ | 26,500 | $ | 25,000 | $ | 20,404 | |||
MGE Construct | - | - | 239 | ||||||
MGE Power Elm Road | 13,500 | 17,300 | 16,000 | ||||||
MGE Power | - | - | 200 | ||||||
MGE Power West Campus | 6,000 | 9,250 | 7,500 | ||||||
MGE Transco | 1,859 | 816 | - | ||||||
Total | $ | 47,859 | $ | 52,366 | $ | 44,343 | |||
Dividend Restrictions | |||||||||
Dividend payments by MGE to MGE Energy are subject to restrictions arising under a PSCW rate order and, to a lesser degree, MGE's first mortgage bonds. The PSCW order restricts any dividends that MGE may pay MGE Energy if its common equity ratio, calculated in the manner used in the rate proceeding, is less than 55%. MGE's thirteen month rolling average common equity ratio at December 31, 2014 is 56.9% as determined under the calculation used in the rate proceeding. MGE paid cash dividends of $26.5 million to MGE Energy in 2014. The rate proceeding calculation includes as indebtedness imputed amounts for MGE's outstanding purchase power capacity payments and other PSCW adjustments, but does not include the indebtedness associated with MGE Power Elm Road or MGE Power West Campus, which are consolidated into MGE's financial statements but are not direct obligations of MGE. | |||||||||
MGE has covenanted with the holders of its first mortgage bonds not to declare or pay any dividend or make any other distribution on or purchase any shares of its common stock unless, after giving effect thereto, the aggregate amount of all such dividends and distributions and all amounts applied to such purchases, after December 31, 1945, shall not exceed the earned surplus (retained earnings) accumulated subsequent to December 31, 1945. As of December 31, 2014, approximately $334.8 million was available for the payment of dividends under this covenant. | |||||||||
See Footnotes 9 and 10 of the Notes to Consolidated Financial Statement for long-term debt and lines of credit dividend restrictions. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||
Valuation and Qualifying Accounts | Schedule II | |||||||||
MGE Energy, Inc. and Madison Gas and Electric Company | ||||||||||
Valuation and Qualifying Accounts | ||||||||||
Additions | ||||||||||
Balance at beginning of period | (1)Charged to costs and expenses | (2)Charged to other accounts | Net Accounts written off | Balance at end of period | ||||||
Fiscal Year 2012: | ||||||||||
Accumulated provision for uncollectibles | $ | 4,100,333 | 2,825,300 | 44,400 | -2,153,915 | $ | 4,816,118 | |||
Fiscal Year 2013: | ||||||||||
Accumulated provision for uncollectibles | $ | 4,816,118 | 2,373,342 | 37,200 | -2,256,949 | $ | 4,969,711 | |||
Fiscal Year 2014: | ||||||||||
Accumulated provision for uncollectibles | $ | 4,969,711 | 1,898,300 | 15,092 | -2,134,446 | $ | 4,748,657 |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Basis of Presentation | Basis of Presentation - MGE Energy and MGE. | ||||||||
The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which give recognition to the rate making accounting policies for regulated operations prescribed by the regulatory authorities having jurisdiction, principally the PSCW and FERC. MGE's accounting records conform to the FERC uniform system of accounts. | |||||||||
Principles of Consolidation | Principles of Consolidation - MGE Energy and MGE. | ||||||||
MGE, a wholly owned subsidiary of MGE Energy, is a regulated electric and gas utility headquartered in Madison, Wisconsin. MGE Energy and MGE consolidate all majority owned subsidiaries in which it has controlling influence. MGE is the majority owner of MGE Transco. MGE Transco is a nonregulated entity formed to manage the investment in ATC. | |||||||||
Wholly owned subsidiaries of MGE Energy include CWDC, MAGAEL, MGE Power, MGE State Energy Services, and NGV Fueling Services. MGE Power owns 100% of MGE Power Elm Road and MGE Power West Campus. MGE Power and its subsidiaries are part of MGE Energy's nonregulated energy operations, which were formed to own and lease electric generation projects to assist MGE. | |||||||||
MGE Energy and MGE consolidate variable interest entities (VIEs) for which it is the primary beneficiary. Variable interest entities are legal entities that possess any of the following characteristics: equity investors who have an insufficient amount of equity at risk to finance their activities, equity owners who do not have the power to direct the significant activities of the entity (or have voting rights that are disproportionate to their ownership interest), or equity holders who do not receive expected losses or returns significant to the VIE. If MGE Energy or MGE is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, all relevant facts and circumstances are considered, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. Ongoing reassessments of all VIEs are performed to determine if the primary beneficiary status has changed. MGE has consolidated MGE Power Elm Road and MGE Power West Campus. Both entities are VIEs. MGE is considered the primary beneficiary of these entities as a result of contractual agreements. See Footnote 2 for more discussion of these entities. | |||||||||
The consolidated financial statements reflect the application of certain accounting policies described in this note. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
Use of Estimates | Use of Estimates - MGE Energy and MGE. | ||||||||
In order to prepare consolidated financial statements in conformity with GAAP, management must make estimates and assumptions. These estimates could affect reported amounts of assets, liabilities, and disclosures at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from management's estimates. | |||||||||
Cash Equivalents and Restricted Cash | Cash Equivalents and Restricted Cash - MGE Energy and MGE. | ||||||||
MGE Energy and MGE consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | |||||||||
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. These are included in other current assets. | |||||||||
Receivable Margin Account | Receivable – Margin Account - MGE Energy and MGE. | ||||||||
Cash amounts held by counterparties as margin for certain financial transactions are recorded as receivable – margin account in other current assets on the consolidated balance sheet. As of December 31, 2014 and 2013, the receivable – margin account balance of $2.2 million and $0.5 million, respectively, is shown net of any collateral posted against derivative positions. As of December 31, 2014 and 2013, there was $2.2 million and $0.2 million, respectively, of collateral posted against derivative positions. Changes in this cash account are considered cash flows from operating activities to match with the costs being hedged. The costs being hedged are fuel for electric generation, purchased power, and cost of gas sold. | |||||||||
Trade Receivables, Allowance for Doubtful Accounts, and Concentration Risk | Trade Receivables, Allowance for Doubtful Accounts, and Concentration Risk - MGE Energy and MGE. | ||||||||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. However, a 1% late payment charge is recorded on all receivables unpaid after the due date. The allowance for doubtful accounts associated with these receivables represents our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine our allowance for doubtful accounts based on historical write-off experience, regional economic data, and review of the accounts receivable aging. | |||||||||
MGE is obligated to provide service to all electric and gas customers within its franchised territories. MGE's franchised electric territory includes a 316 square-mile area in Dane County, Wisconsin, and MGE's franchised gas territory includes a service area covering 1,678 square-miles in Wisconsin. MGE manages this concentration and the related credit risk through its credit and collection policies, which are consistent with state regulatory requirements. | |||||||||
Inventories | Inventories - MGE Energy and MGE. | ||||||||
Inventories consist of natural gas in storage, fossil fuels, materials and supplies, SO2 allowances, and renewable energy credits (RECs). MGE values natural gas in storage, fossil fuels, and materials and supplies using average cost. | |||||||||
SO2 emission allowances are included in material and supplies on the consolidated balance sheet and are recorded at weighted average cost. These allowances are charged to fuel expense as they are used in operations. | |||||||||
REC allowances are included in materials and supplies on the consolidate balance sheet and are recorded based on specific identification. These allowances are charged to purchase power expense as they are used in operations. | |||||||||
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities - MGE Energy and MGE. | ||||||||
Regulatory assets and regulatory liabilities are recorded consistent with regulatory treatment. Regulatory assets represent costs which are deferred due to the probable future recovery from customers through regulated rates. Regulatory liabilities represent the excess recovery of costs or accrued credits which were deferred because MGE believes it is probable such amounts will be returned to customers through future regulated rates. Regulatory assets and liabilities are amortized in the consolidated statements of income consistent with the recovery or refund included in customer rates. MGE believes that it is probable that its recorded regulatory assets and liabilities will be recovered and refunded, respectively, in future rates. See Footnote 6 for further information. | |||||||||
Debt Issuance Costs | Debt Issuance Costs - MGE Energy and MGE. | ||||||||
Premiums, discounts, and expenses incurred with the issuance of outstanding long-term debt are amortized over the life of the debt issue. Any call premiums or unamortized expenses associated with refinancing higher-cost debt obligations used to finance utility-regulated assets and operations are amortized consistent with regulatory treatment of those items. | |||||||||
Property, Plant, and Equipment | Property, Plant, and Equipment - MGE Energy and MGE. | ||||||||
Property, plant, and equipment is recorded at original cost. Cost includes indirect costs consisting of payroll taxes, pensions, postretirement benefits, other fringe benefits, and administrative and general costs. Also, included in the cost is AFUDC for utility property and capitalized interest for nonregulated property. Additions for significant replacements of property are charged to property, plant, and equipment at cost; and minor items are charged to maintenance expense. Depreciation rates on utility property are approved by the PSCW, based on the estimated economic lives of property, and include estimates for salvage value and removal costs. Removal costs of utility property, less any salvage value, are adjusted through regulatory liabilities. Depreciation rates on nonregulated property are based on the estimated economic lives of the property. | |||||||||
2014 | 2013 | 2012 | |||||||
Electric | 2.60% | 2.70% | 2.90% | ||||||
Gas | 1.70% | 1.70% | 1.70% | ||||||
Nonregulated | 2.40% | 2.30% | 2.30% | ||||||
Asset Retirement Obligations Policy | Asset Retirement Obligations - MGE Energy and MGE. | ||||||||
MGE Energy and MGE are required to record a liability for the fair value of an ARO to be recognized in the period in which it is incurred if it can be reasonably estimated. The offsetting associated asset retirement costs are capitalized as a long-lived asset and depreciated over the asset’s useful life. The expected present value technique used to calculate the fair value of ARO liabilities includes assumptions about costs, probabilities, settlement dates, interest accretion, and inflation. Revisions to the assumptions, including the timing or amount of expected asset retirement costs, could result in increases or decreases to the AROs. All asset retirement obligations are recorded as other long-term liabilities on our balance sheets. MGE has regulatory treatment and recognizes regulatory assets or liabilities for the timing differences between when we recover legal AROs in rates and when we would recognize these costs. | |||||||||
Repairs and Maintenance Expense | Repairs and Maintenance Expense - MGE Energy and MGE. | ||||||||
MGE utilizes the direct expensing method for planned major maintenance projects. Under this method, MGE expenses all costs associated with major planned maintenance activities as incurred. | |||||||||
Purchased Gas Adjustment Clause | Purchased Gas Adjustment Clause - MGE Energy and MGE. | ||||||||
MGE's natural gas rates are subject to a fuel adjustment clause designed to recover or refund the difference between the actual cost of purchased gas and the amount included in rates. Differences between the amounts billed to customers and the actual costs recoverable are deferred and recovered or refunded in future periods by means of prospective monthly adjustments to rates. | |||||||||
These amounts are included in other current liabilities on the consolidated balance sheet. | |||||||||
Revenue Recognition | Revenue Recognition - MGE Energy and MGE. | ||||||||
Operating revenues are recorded as service is rendered or energy is delivered to customers. Meters are read on a systematic basis throughout the month based on established meter-reading schedules. At the end of the month, MGE accrues an estimate for the unbilled amount of energy delivered to customers. The unbilled revenue estimate is based on daily system demand volumes, weather factors, estimated line losses, estimated customer usage by class, and applicable customer rates. | |||||||||
Utility Cost Recovery | Utility Cost Recovery - MGE Energy and MGE. | ||||||||
MGE’s rates include a provision for fuel costs. The PSCW allows Wisconsin utilities to defer electric fuel-related costs, less excess revenues, that fall outside a symmetrical cost tolerance band. Any over/under recovery of the actual costs is determined on an annual basis and will be adjusted in future billings to electric retail customers. Such deferred amounts will be recognized in “Purchased Power Expense” in MGE Energy’s and MGE’s income statement each period. The cumulative effects of these deferred amounts will be recorded in “Regulatory assets” or “Regulatory liabilities” on MGE Energy’s and MGE’s consolidated balance sheets until they are reflected in future billings to customers. See Footnote 17.b. for further information regarding the regulatory rules applicable to the recovery of electric fuel costs. | |||||||||
Allowance for Funds Used During Construction Policy | Allowance for Funds Used During Construction - MGE Energy and MGE. | ||||||||
Allowance for funds used during construction is included in utility plant accounts and represents the cost of borrowed funds used during plant construction and a return on shareholders' capital used for construction purposes. In the consolidated income statements, the cost of borrowed funds (AFUDC-debt) is presented as an offset to interest expense and the return on shareholders' capital (AFUDC-equity funds) is shown as an item within other income. For both 2014 and 2013, as approved by the PSCW, MGE capitalized AFUDC-debt and equity on 50% of applicable average construction work in progress at 8.21%. For 2012, MGE capitalized AFUDC-debt and equity on 50% of applicable average construction work in progress at 8.36%. For both 2014 and 2012, MGE received specific approval to recover 100% AFUDC on certain environmental costs for Columbia and 50% in 2013. Although the allowance does not represent current cash income, it is recovered under the ratemaking process over the service lives of the related properties. See Footnote 20 for further information regarding Columbia AFUDC. | |||||||||
Investments | Investments - MGE Energy and MGE. | ||||||||
Investments in limited liability companies that have specific ownership accounts in which MGE Energy or MGE's ownership interest is more than minor and are considered to have significant influence are accounted for using the equity method. All other investments are carried at fair value or at cost, as appropriate. See Footnote 4 for further information. | |||||||||
Capitalized Software Costs | Capitalized Software Costs - MGE Energy and MGE. | ||||||||
Property, plant, and equipment includes the net book value of capitalized costs of internal use software totaling $8.4 million and $9.0 million at December 31, 2014 and 2013, respectively. During 2014, 2013, and 2012, MGE recorded $1.6 million, $1.5 million, and $1.3 million, respectively, of amortization expense related to these costs. These costs are amortized on a straight-line basis over the estimated useful lives of the assets. For internal use software, the useful lives range from five to ten years. | |||||||||
Impairment of Long-Lived Assets Policy | Impairment of Long-Lived Assets - MGE Energy and MGE. | ||||||||
MGE reviews plant and equipment and other property for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. MGE's policy for determining when long-lived assets are impaired is to recognize an impairment loss if the sum of the expected future cash flows (undiscounted and without interest charges) from an asset are less than the carrying amount of that asset. If an impairment loss is recognized, the amount that will be recorded will be measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. | |||||||||
Income Taxes and Excise Taxes | Income Taxes and Excise Taxes - MGE Energy and MGE. | ||||||||
Income taxes | |||||||||
Under the liability method, income taxes are deferred for all temporary differences between pretax financial and taxable income and between the book and tax basis of assets and liabilities using the tax rates scheduled by law to be in effect when the temporary differences reverse. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not. A valuation allowance is recorded for those benefits that do not meet this criterion. | |||||||||
Accounting for uncertainty in income taxes applies to all tax positions and requires a recognition threshold and measurement standard for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in an income tax return. The threshold is defined for recognizing tax return positions in the financial statements as "more likely than not" that the position is sustainable, based on its merits. Subsequent recognition, derecognition, and measurement is based on management's best judgment given the facts, circumstances, and information available at the reporting date. | |||||||||
Regulatory and accounting principles have resulted in a regulatory liability related to income taxes. Excess deferred income taxes result from past taxes provided at rates higher than current rates. The income tax regulatory liability and deferred investment tax credit reflect the revenue requirement associated with the return of these tax benefits to customers. | |||||||||
Investment tax credits from regulated operations are amortized over related property service lives. | |||||||||
Excise taxes | |||||||||
MGE Energy, through its utility operations, pays a state license fee tax in lieu of property taxes on property used in utility operations. License fee tax is calculated as a percentage of adjusted operating revenues of the prior year. The electric tax rate is 3.19% for retail sales and 1.59% for sales of electricity for resale by the purchaser. The tax rate on sales of natural gas is 0.97%. The tax is required to be estimated and prepaid in the year prior to its computation and expensing. License fee tax expense, included in other general taxes, was $14.6 million, $13.8 million, and $13.5 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
Operating income taxes, including tax credits and license fee tax, are included in rates for utility related items. | |||||||||
Share-based Compensation | Share-Based Compensation - MGE Energy and MGE. | ||||||||
Under two separate incentive plans, eligible participants, including employees and non-employee directors, may receive performance units that entitle the holder to receive a cash payment equal to the value of a designated number of shares of MGE Energy's common stock, plus dividend equivalent payments thereon, at the end of the set performance period. Under the plans, these awards are subject to a prescribed vesting schedule and must be settled in cash. Accordingly, no new shares of common stock are issued in connection with the plans. | |||||||||
MGE Energy and MGE initially measure the cost of the employee or director services received in exchange for a performance unit award based on the current market value of MGE Energy common stock. The fair value of the award is subsequently re-measured at each reporting date through the settlement date. Changes in fair value during the requisite period are recognized as compensation cost over that period. | |||||||||
See Footnote 14 for additional information regarding the plans. | |||||||||
Treasury Stock | Treasury Stock - MGE Energy. | ||||||||
Treasury shares are recorded at cost. Any shares of common stock repurchased are held as treasury shares unless cancelled or reissued. | |||||||||
Comprehensive Income (Loss) | Comprehensive Income - MGE Energy and MGE. | ||||||||
Total comprehensive income includes all changes in equity during a period except those resulting from investments by and distributions to shareholders. Comprehensive income is reflected in the consolidated statements of comprehensive income. | |||||||||
Derivative and Hedging Instruments | Derivative and Hedging Instruments - MGE Energy and MGE. | ||||||||
As part of regular operations, MGE enters into contracts, including options, swaps, futures, forwards, and other contractual commitments, to manage its exposure to commodity prices and gas revenues. MGE recognizes all derivatives in the consolidated balance sheets at fair value, with changes in the fair value of derivative instruments to be recorded in current earnings or deferred in accumulated other comprehensive income (loss), depending on whether a derivative is designated as, and is effective as, a hedge and on the type of hedge transaction. Derivative activities are in accordance with the company's risk management policy. | |||||||||
If the derivative qualifies for regulatory deferral, the derivatives are marked to fair value and any resulting loss or gain is offset with a corresponding regulatory asset or liability. Cash flows from such derivative instruments are classified on a basis consistent with the nature of the underlying hedged item. | |||||||||
Common Equity | |||||||||
Common Stock | MGE Energy sells shares of its common stock through its Stock Plan. Those shares may be newly issued shares or shares that MGE Energy has purchased in the open market for resale to participants in the Stock Plan. All sales under the stock plan are covered by a shelf registration statement that MGE Energy filed with the SEC. | ||||||||
MGE Energy purchases shares on the open market to provide shares to meet obligations to participants in the Stock Plan. The shares are purchased on the open market through a securities broker-dealer and then are reissued under the Stock Plan as needed to meet share delivery requirements. The volume and timing of share repurchases in the open market depends upon the level of dividend reinvestment and optional share purchases being made from time to time by plan participants. As a result, there is no specific maximum number of shares to be repurchased and no specified termination date for the repurchases. | |||||||||
Fair Value of Financial Instruments | |||||||||
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 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. | |||||||||
At December 31, 2014 and 2013, 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 MGE Energy's and MGE long-term debt is based on quoted market prices for similar financial instruments at December 31. Since long-term debt is not traded in an active market, it is classified as Level 2. | |||||||||
No transfers were made in or out of Level 1 or Level 2 for the year ended December 31, 2014. | |||||||||
Investments include exchange-traded investment securities valued using quoted prices on active exchanges and are therefore classified as Level 1. | |||||||||
Derivatives include exchange-traded derivative contracts, over-the-counter transactions, a ten-year purchased power agreement, 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 ten-year purchased power agreement (see Footnote 16) was valued using an internally-developed pricing model and therefore is classified as Level 3. The model projects future market energy prices and compares those prices to the projected power costs to be incurred under the contract. Inputs to the model require significant management judgment and estimation. Future energy prices are based on a forward power pricing curve using exchange-traded contracts in the electric futures market, where such exchange-traded contracts exist, and upon calculations based on forward gas prices, where such exchange-traded contracts do not exist. A basis adjustment is applied to the market energy price to reflect the price differential between the market price delivery point and the counterparty delivery point. The historical relationship between the delivery points is reviewed and a discount (below 100%) or premium (above 100%) is derived. This comparison is done for both peak times when demand is high and off peak times when demand is low. If the basis adjustment is lowered, the fair value measurement will decrease and if the basis adjustment is increased, the fair value measurement will increase. | |||||||||
The projected power costs anticipated to be incurred under the purchased power agreement are determined using many factors, including historical generating costs, future prices, and expected fuel mix of the counterparty. An increase in the projected fuel costs would result in a decrease in the fair value measurement of the purchased power agreement. A significant input that MGE estimates is the counterparty's fuel mix in determining the projected power cost. MGE also considers the assumptions that market participants would use in valuing the asset or liability. This consideration includes assumptions about market risk such as liquidity, volatility, and contract duration. The fair value model uses a discount rate that incorporates discounting, credit, and model risks. | |||||||||
This model is prepared by members of MGE’s Energy Accounting group. It is reviewed on a quarterly basis by management in Energy Supply and Finance to review the assumptions, inputs, and fair value measurements. | |||||||||
The following table presents the significant unobservable inputs used in the pricing model as of December 31: | |||||||||
Model Input | |||||||||
Significant Unobservable Inputs | 2014 | 2013 | |||||||
Basis adjustment: | |||||||||
On peak | 98.10% | 94.20% | |||||||
Off peak | 95.00% | 92.60% | |||||||
Counterparty fuel mix: | |||||||||
Internal generation | 50%-70% | 50%-70% | |||||||
Purchased power | 50%-30% | 50%-30% | |||||||
The deferred compensation plan allows participants to defer certain cash compensation into a notional investment account. These amounts are included within other deferred liabilities in the consolidated balance sheets of MGE Energy and MGE. The notional investments 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. | |||||||||
Income Taxes | |||||||||
Uncertainty in Income Taxes | MGE Energy and MGE account for the difference between the tax benefit amount taken on prior year tax returns, or expected to be taken on a current year tax return, and the tax benefit amount recognized in the financial statements as an unrecognized tax benefit. | ||||||||
Unrecognized tax benefits of $0.4 million and $2.4 million are liabilities shown with other deferred liabilities on the December 31, 2014 and December 31, 2013, consolidated balance sheets, respectively. At December 31, 2014, $2.0 of unrecognized tax benefits are netted with deferred tax assets on the consolidated balance sheet. The interest component is offset by a regulatory asset. | |||||||||
During 2013, the IRS issued guidance on the treatment of electric generation repairs. This guidance prompted the reversal of the unrecognized tax benefits for these repairs in 2013. With the adoption of this new guidance in 2014 unrecognized tax benefits related to electric generation were added. At December 31, 2014 and 2012, MGE Energy and MGE have an unrecognized tax benefit primarily related to temporary tax differences associated with the change in income tax method of accounting for electric generation and electric and gas distribution repairs. At December 31, 2013, MGE Energy and MGE had an unrecognized tax benefit primarily related to temporary tax differences associated with the change in income tax method of accounting for electric and gas distribution repairs. There were no unrecognized tax benefits at December 31, 2014, 2013, or 2012 related to federal permanent differences and tax credits. | |||||||||
The unrecognized tax benefits at December 31, 2014, are not expected to significantly increase or decrease within the next twelve months. In addition, statutes of limitations will expire for MGE Energy and MGE tax returns. The impact of the statutes of limitations expiring is not anticipated to be material. | |||||||||
Pension Plans and Other Postretirement Benefits | |||||||||
Fair Value of Pension and Other Postretirement Benefit Plan Assets | Pension and other postretirement benefit plan investments are recorded at fair value. See Footnote 11 for more information regarding the fair value hierarchy. | ||||||||
The following is a description of the valuation methodologies used for assets measured at fair value as of December 31, 2014: | |||||||||
Equity Securities – These securities consist of U.S. and international stock funds. The U.S. stock funds are primarily invested in domestic equities. Securities in these funds are typically priced using the closing price from the applicable exchange, NYSE, NASDAQ, etc. The international funds are composed of international equities. Securities are priced using the closing price from the appropriate local stock exchange. | |||||||||
Fixed Income Securities – These securities consist of U.S. bond funds and short-term funds. U.S. bond funds are priced by a pricing agent using inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. The short-term funds are valued initially at cost and adjusted for amortization of any discount or premium. | |||||||||
Real Estate – The fair value of real estate properties is determined through an external appraisal process. | |||||||||
Insurance Continuance Fund (ICF) – The fair value of the ICF is based on largely unobservable inputs, which are based on a commingled interest. | |||||||||
Fixed Rate Fund – The fair value of the Fixed Rate fund is determined based on the type of assets held. Public market data and GAAP reported market values are used when available. For all other assets, discounted cash flows are calculated using treasury rates and spreads based on the cash flow timing and quality of assets. | |||||||||
Derivative and Hedging Instruments | |||||||||
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 and gas revenues. 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, MGE Energy and MGE recognize such derivatives in the consolidated balance sheets at fair value. The majority of MGE's 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. 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 recoverable in gas rates through the 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, MGE Energy and MGE have netted instruments with the same counterparty under a master netting agreement as well as the netting of collateral. | ||||||||
Regional Transmission Organizations | |||||||||
Regional Transmission Organizations | MGE reports on a net basis transactions on the MISO and PJM markets in which it buys and sells power within the same hour to meet electric energy delivery requirements. | ||||||||
Commitments and Contingencies | |||||||||
Chattel PaperAgreement | MGE makes available to qualifying customers a financing program for the purchase and installation of energy-related equipment that will provide more efficient use of utility service at the customer's property. MGE is party to a chattel paper purchase agreement with a financial institution under which it can sell or finance an undivided interest with recourse, in up to $10.0 million of the financing program receivables, until July 31, 2015. | ||||||||
MGE retains the servicing responsibility for these receivables. | |||||||||
MGE accounts for servicing rights under the amortization method. Initial determination of the servicing asset fair value is based on the present value of the estimated future cash flows. The discount rate is based on the PSCW authorized weighted cost of capital. | |||||||||
MGE maintains responsibility for collecting and remitting loan payments from customers to the financial institution and does not retain any interest in the assets sold to the financial institution. | |||||||||
MGE would be required to perform under its guarantee if a customer defaulted on its loan. The energy-related equipment installed at the customer sites is used to secure the customer loans. The loan balances outstanding at December 31, 2014, approximate the fair value of the energy-related equipment acting as collateral. The length of the MGE guarantee to the financial institution varies from one to ten years depending on the term of the underlying customer loan. | |||||||||
Adoption of Accounting Principles and Recently Issued Accounting Pronouncements | |||||||||
New Accounting Pronouncements | Adoption of Accounting Principles and Recently Issued Accounting Pronouncements - MGE Energy and MGE. | ||||||||
a. Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. | |||||||||
In February 2013, the FASB issued authoritative guidance within the Codification's Balance Sheet topic that provides guidance on the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. This authoritative guidance became effective January 1, 2014. The authoritative guidance did not have a financial or disclosure impact. | |||||||||
b. Presentation of an Unrecognized Tax Benefit. | |||||||||
In July 2013, the FASB issued authoritative guidance within the Codification's Income Statement topic that provides guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The authoritative guidance was issued to eliminate diversity in practice by providing guidance on the presentation of unrecognized tax benefits. This authoritative guidance became effective January 1, 2014. The authoritative guidance will not have a financial statement or disclosure impact, unless MGE Energy or its subsidiaries are in a net operating loss position. MGE Energy or its subsidiaries are currently not in a net operating loss position. | |||||||||
c. Revenue from Contracts with Customers. | |||||||||
In May 2014, the FASB issued authoritative guidance within the Codification's Revenue Recognition topic that provides guidance on the recognition, measurement, and disclosure of revenue from contracts with customers. This authoritative guidance will become effective January 1, 2017. MGE Energy and MGE are currently assessing the impact this pronouncement will have on their financial statements. | |||||||||
d. Transfers and Servicing Assets. | |||||||||
In June 2014, the FASB issued authoritative guidance within the Codification's Transfers and Servicing topic that provides guidance on the accounting and disclosures for repurchase-to-maturity transactions, securities lending transactions, and repurchase financings. This authoritative guidance is effective January 1, 2015. The authoritative guidance will change the accounting for the Chattel Paper program. Prior to adoption of the standard, Chattel Paper was treated as an off-balance sheet arrangement. Upon adoption, assets and liabilities will increase approximately $4.4 million and additional disclosures will be required. The cumulative impact of this guidance on our financial statements is not expected to be material. | |||||||||
Segment Information | |||||||||
Segment Information | Segment Information - MGE Energy and MGE. | ||||||||
The electric utility business purchases, generates and distributes electricity, and contracts for transmission service. The gas utility business purchases and distributes natural gas and contracts for the transportation of natural gas. Both the electric and gas segments operate through MGE Energy's principal subsidiary, MGE. | |||||||||
The nonregulated energy operations are conducted through MGE Energy's subsidiaries: MGE Power, MGE Power Elm Road, and MGE Power West Campus. These subsidiaries own and lease electric generating capacity to assist MGE. MGE Power Elm Road has an ownership interest in two coal-fired generating units in Oak Creek, Wisconsin, which are leased to MGE, and MGE Power West Campus owns a controlling interest in the electric generation plant of a natural gas-fired cogeneration facility on the UW campus. MGE Power West Campus’s portion is also leased to MGE. | |||||||||
The transmission investment segment invests, through MGE Transco, in ATC, a company that provides electric transmission services primarily in Wisconsin. See Footnote 4 for further discussion of MGE Transco and the investment in ATC. | |||||||||
The "All Others" segment includes: corporate, CWDC, MAGAEL, MGE State Energy Services, and NGV Fueling Services. These entities' operations consist of investing in companies and property which relate to the regulated operations, financing the regulated operations, or owning and operating natural gas compression equipment. | |||||||||
General corporate expenses include the cost of executive management, corporate accounting and finance, information technology, risk management, human resources and legal functions, and employee benefits that are allocated to electric and gas segments based on formulas prescribed by the PSCW. Identifiable assets are those used in MGE's operations in each segment. Assets not allocated consist primarily of cash and cash equivalents, restricted cash, investments, other accounts receivable, and prepaid assets. | |||||||||
Sales between our electric and gas segments are based on PSCW approved tariffed rates. Additionally, intersegment operations related to the leasing arrangement between our electric segment and MGE Power Elm Road/MGE Power West Campus are based on terms previously approved by the PSCW. Consistent with internal reporting, management has presented the direct financing capital leases between MGE and MGE Power Elm Road/MGE Power West Campus based on actual lease payments included in rates. Lease payments made by MGE to MGE Power Elm Road and MGE Power West Campus are shown as operating expenses. The lease payments received by MGE Power Elm Road and MGE Power West Campus from MGE are shown as lease income in interdepartmental revenues. The depreciation expense associated with the Elm Road Units and WCCF is reflected in the nonregulated energy segment. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Straight-Line Depreciation Rates | Provisions at composite straight-line depreciation rates approximate the following percentages for the cost of depreciable property: | ||||||||
2014 | 2013 | 2012 | |||||||
Electric | 2.60% | 2.70% | 2.90% | ||||||
Gas | 1.70% | 1.70% | 1.70% | ||||||
Nonregulated | 2.40% | 2.30% | 2.30% |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
MGE Power Elm Road [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Variable interest entities significant balance sheet accounts | At December 31, MGE has included the following significant accounts on its consolidated balance sheet related to its interest in this VIE: | ||||||
(In thousands) | 2014 | 2013 | |||||
Property, plant, and equipment, net | $ | 179,620 | $ | 182,657 | |||
Construction work in progress | 1,976 | 1,115 | |||||
Affiliate receivables | 1,742 | - | |||||
Deferred income tax asset - current | - | 219 | |||||
Deferred income tax liability | 40,044 | 34,141 | |||||
Long-term debt | 67,972 | 70,639 | |||||
Noncontrolling interest | 72,537 | 69,876 | |||||
MGE Power West Campus [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Variable interest entities significant balance sheet accounts | At December 31, MGE has included the following significant accounts on its consolidated balance sheet related to its interest in this VIE: | ||||||
(In thousands) | 2014 | 2013 | |||||
Property, plant, and equipment, net | $ | 86,763 | $ | 89,564 | |||
Affiliate receivables | 5,862 | 6,767 | |||||
Accrued interest and taxes | 569 | 4,888 | |||||
Deferred income taxes | 23,813 | 23,154 | |||||
Long-term debt | 48,218 | 49,653 | |||||
Noncontrolling interest | 30,755 | 29,089 |
Property_Plant_and_Equipment_T
Property, Plant, and Equipment (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Schedule of Property, Plant, and Equipment | Property, plant, and equipment consisted of the following at December 31: | |||||||||||
MGE Energy | MGE | |||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||
Utility: | ||||||||||||
Electric | $ | 1,110,953 | $ | 953,290 | $ | 1,110,970 | $ | 953,307 | ||||
Gas | 369,975 | 351,694 | 369,987 | 351,705 | ||||||||
Total utility plant | 1,480,928 | 1,304,984 | 1,480,957 | 1,305,012 | ||||||||
Less: Accumulated depreciation and amortization | 559,615 | 560,066 | 559,615 | 560,066 | ||||||||
In-service utility plant, net | 921,313 | 744,918 | 921,342 | 744,946 | ||||||||
Nonregulated: | ||||||||||||
Nonregulated | 313,152 | 311,742 | 312,314 | 310,745 | ||||||||
Less: Accumulated depreciation and amortization | 45,388 | 37,851 | 45,305 | 37,814 | ||||||||
In-service nonregulated plant, net | 267,764 | 273,891 | 267,009 | 272,931 | ||||||||
Construction work in progress: | ||||||||||||
Utility construction work in progress | 16,988 | 140,301 | 16,988 | 140,301 | ||||||||
Nonregulated construction work in progress | 2,041 | 1,114 | 2,041 | 1,114 | ||||||||
Total property, plant, and equipment | $ | 1,208,106 | $ | 1,160,224 | $ | 1,207,380 | $ | 1,159,292 |
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Investments Disclosure [Abstract] | |||||||||||||||
Equity Method, Available for Sale Securities, and Other Investments | MGE Energy | MGE | |||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Available for sale securities: | |||||||||||||||
Cost basis | $ | 1,964 | $ | 1,736 | $ | 489 | $ | 490 | |||||||
Gross unrealized gains | 765 | 629 | 240 | 321 | |||||||||||
Fair value | $ | 2,729 | $ | 2,365 | $ | 729 | $ | 811 | |||||||
Equity method investments: | |||||||||||||||
ATC | $ | 67,673 | $ | 64,488 | $ | 67,673 | $ | 64,488 | |||||||
Other | 1,199 | 1,099 | - | - | |||||||||||
Total equity method investments | $ | 68,872 | $ | 65,587 | $ | 67,673 | $ | 64,488 | |||||||
Other investments | 159 | - | - | - | |||||||||||
Total | $ | 71,760 | $ | 67,952 | $ | 68,402 | $ | 65,299 | |||||||
During the years ended December 31, 2014 and 2013, certain investments were liquidated. As a result of these liquidations, MGE Energy and MGE received the following: | |||||||||||||||
MGE Energy | MGE | ||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||
Cash proceeds | $ | 38 | $ | 39 | $ | - | $ | - | $ | 16 | $ | - | |||
Gain (loss) on sale | 21 | 2 | - | - | -3 | - | |||||||||
ATC's Summarized Financial Data | For the years ended December 31, 2014, 2013, and 2012, MGE Transco recorded the following: | ||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||
Equity in earnings from investment in ATC | $ | 9,150 | $ | 9,434 | $ | 9,079 | |||||||||
Dividends received from ATC | 7,740 | 7,404 | 7,146 | ||||||||||||
Capital contributions to ATC | 1,775 | 1,420 | 2,131 | ||||||||||||
ATC's summarized financial data for the years ended December 31, 2013, 2012, and 2011 is as follows: | |||||||||||||||
(In thousands) | |||||||||||||||
Income statement data for the year ended December 31, | 2014 | 2013 | 2012 | ||||||||||||
Operating revenues | $ | 635,033 | $ | 626,336 | $ | 603,254 | |||||||||
Operating expenses | -307,451 | -295,069 | -280,999 | ||||||||||||
Other income (expense) | 117 | 831 | -2,533 | ||||||||||||
Interest expense, net | -88,970 | -84,484 | -82,296 | ||||||||||||
Earnings before members' income taxes | $ | 238,729 | $ | 247,614 | $ | 237,426 | |||||||||
Balance sheet data as of December 31, | 2014 | 2013 | 2012 | ||||||||||||
Current assets | $ | 66,410 | $ | 80,715 | $ | 63,134 | |||||||||
Noncurrent assets | 3,728,675 | 3,509,517 | 3,274,704 | ||||||||||||
Total assets | $ | 3,795,085 | $ | 3,590,232 | $ | 3,337,838 | |||||||||
Current liabilities | $ | 313,065 | $ | 381,467 | $ | 251,541 | |||||||||
Long-term debt | 1,701,000 | 1,550,000 | 1,550,000 | ||||||||||||
Other noncurrent liabilities | 163,818 | 126,167 | 95,829 | ||||||||||||
Members' equity | 1,617,202 | 1,532,598 | 1,440,468 | ||||||||||||
Total members' equity and liabilities | $ | 3,795,085 | $ | 3,590,232 | $ | 3,337,838 |
Joint_Plant_Ownership_Tables
Joint Plant Ownership (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Columbia Units [Member] | |||||||
Jointly Owned Utility Plant Interests [Line Items] | |||||||
Schedule of Joint Plant Ownership | MGE's interest in Columbia, included in its gross utility plant in service, and the related accumulated depreciation reserves at December 31 were as follows: | ||||||
(In thousands) | 2014 | 2013 | |||||
Utility plant | $ | 268,597 | $ | 123,097 | |||
Accumulated depreciation | -80,645 | -78,880 | |||||
Property, plant, and equipment, net | $ | 187,952 | $ | 44,217 | |||
Construction work in progress | 6,941 | 120,858 | |||||
Total property, plant, and equipment | $ | 194,893 | $ | 165,075 | |||
Elm Road Units [Member] | |||||||
Jointly Owned Utility Plant Interests [Line Items] | |||||||
Schedule of Joint Plant Ownership | MGE Power Elm Road’s interest in the portion of the Elm Road Units in-service and the related accumulated depreciation reserves at December 31 were as follows: | ||||||
(In thousands) | 2014 | 2013 | |||||
Nonregulated plant | $ | 199,582 | $ | 198,198 | |||
Accumulated depreciation | -19,962 | -15,541 | |||||
Property, plant, and equipment, net | $ | 179,620 | $ | 182,657 | |||
Construction work in progress | 1,976 | 1,115 | |||||
Total property, plant, and equipment | $ | 181,596 | $ | 183,772 | |||
West Campus [Member] | |||||||
Jointly Owned Utility Plant Interests [Line Items] | |||||||
Schedule of Joint Plant Ownership | MGE Power West Campus' interest in WCCF and the related accumulated depreciation reserves at December 31 were as follows: | ||||||
(In thousands) | 2014 | 2013 | |||||
Nonregulated plant | $ | 111,453 | $ | 111,268 | |||
Accumulated depreciation | -24,691 | -21,704 | |||||
Property, plant, and equipment, net | $ | 86,762 | $ | 89,564 |
Regulatory_Assets_and_Liabilit1
Regulatory Assets and Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||
Regulatory Assets and Liabilities | The following regulatory assets and liabilities are reflected in MGE's consolidated balance sheet as of December 31: | ||||||||
(In thousands) | 2014 | 2013 | |||||||
Regulatory Assets | |||||||||
Asset retirement obligation | $ | 4,532 | $ | 4,863 | |||||
Debt related costs | 11,133 | 11,786 | |||||||
Derivatives | 54,998 | 63,893 | |||||||
Environmental costs | 700 | 920 | |||||||
Tax recovery related to AFUDC equity | 8,821 | 6,956 | |||||||
Unfunded pension and other postretirement liability | 84,551 | 24,591 | |||||||
Other | 448 | 534 | |||||||
Total regulatory assets | $ | 165,183 | $ | 113,543 | |||||
Regulatory Liabilities | |||||||||
Conservation costs | $ | 680 | $ | 455 | |||||
Deferred fuel savings | 755 | 13,386 | |||||||
Elm Road | 1,497 | 607 | |||||||
Income taxes | 1,794 | 2,082 | |||||||
Non-ARO removal costs | 16,129 | 15,182 | |||||||
Renewable energy credits | 753 | 574 | |||||||
Other | 1,107 | 1,044 | |||||||
Total regulatory liabilities | $ | 22,715 | $ | 33,330 |
Noncontrolling_Interest_Tables
Noncontrolling Interest (Tables) (MGE [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
MGE [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Noncontrolling Interest in Balance Sheet | The noncontrolling interest on MGE’s balance sheet at December 31 was as follows: | ||||||||
(In thousands) | 2014 | 2013 | |||||||
MGE Power Elm Road (a) | $ | 72,537 | $ | 69,876 | |||||
MGE Power West Campus (a) | 30,755 | 29,089 | |||||||
MGE Transco (b) | 22,397 | 19,998 | |||||||
Total noncontrolling interest | $ | 125,689 | $ | 118,963 | |||||
Net Income Attributable to Noncontrolling Interest, Net of Tax | The net income attributable to noncontrolling interest, net of tax, for the years ended December 31, 2014, 2013, and 2012 was as follows: | ||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||
MGE Power Elm Road (a) | $ | 16,160 | $ | 17,373 | $ | 14,837 | |||
MGE Power West Campus (a) | 7,666 | 7,657 | 7,506 | ||||||
MGE Transco (b) | 2,484 | 2,408 | 2,146 | ||||||
Net income attributable to noncontrolling interest, net of tax | $ | 26,310 | $ | 27,438 | $ | 24,489 | |||
(a) MGE Power Elm Road and MGE Power West Campus are not subsidiaries of MGE; however, they have been consolidated in the consolidated financial statements of MGE (see Footnote 2). MGE Power Elm Road and MGE Power West Campus are 100% owned by MGE Power, and MGE Power is 100% owned by MGE Energy. MGE Energy's proportionate share of the equity and net income (through its wholly owned subsidiary MGE Power) of MGE Power Elm Road and MGE Power West Campus is classified within the MGE financial statements as noncontrolling interest. | |||||||||
(b) At December 31, 2014, MGE is the majority owner, and MGE Energy is the minority owner, of MGE Transco. MGE Energy's proportionate share of the equity and net income of MGE Transco is classified within the MGE financial statements as noncontrolling interest. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Schedule of Long-Term Debt | 2014 | 2013 | ||||||||||
(In thousands) | MGE Energy | MGE | MGE Energy | MGE | ||||||||
First Mortgage Bonds: (a) | ||||||||||||
7.70%, 2028 Series | $ | 1,200 | $ | 1,200 | $ | 1,200 | $ | 1,200 | ||||
Tax Exempt Debt: | ||||||||||||
3.45%, 2027 Series, | ||||||||||||
Industrial Development Revenue Bonds | 19,300 | 19,300 | 19,300 | 19,300 | ||||||||
Medium-Term Notes: (b) | ||||||||||||
5.25%, due 2017 | 30,000 | 30,000 | 30,000 | 30,000 | ||||||||
6.12%, due 2028 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||
7.12%, due 2032 | 25,000 | 25,000 | 25,000 | 25,000 | ||||||||
6.247%, due 2037 | 25,000 | 25,000 | 25,000 | 25,000 | ||||||||
Total Medium-Term Notes | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||
Other Long-Term Debt: (c) | ||||||||||||
5.59%, due 2018 (d) | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||
3.38%, due 2020 (d) | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||
3.09%, due 2023 (d) | 30,000 | 30,000 | 30,000 | 30,000 | ||||||||
3.29%, due 2026 (d) | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||
5.68%, due 2033 (e) | 28,954 | 28,954 | 29,797 | 29,797 | ||||||||
5.19%, due 2033 (e) | 19,264 | 19,264 | 19,857 | 19,857 | ||||||||
5.26%, due 2040 (d) | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||
5.04%, due 2040 (f) | 41,805 | 41,805 | 43,472 | 43,472 | ||||||||
4.74%, due 2041 (f) | 26,167 | 26,167 | 27,167 | 27,167 | ||||||||
4.38%, due 2042 (d) | 28,000 | 28,000 | 28,000 | 28,000 | ||||||||
4.42%, due 2043 (d) | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||
4.47%, due 2048 (d) | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||
Total Other Long-Term Debt | 279,190 | 279,190 | 283,293 | 283,293 | ||||||||
Long-term debt due within one year | -4,182 | -4,182 | -4,102 | -4,102 | ||||||||
Unamortized discount | -252 | -252 | -277 | -277 | ||||||||
Total Long-Term Debt | $ | 395,256 | $ | 395,256 | $ | 399,414 | $ | 399,414 | ||||
(a) MGE's utility plant is subject to the lien of its Indenture of Mortgage and Deed of Trust, under which its first mortgage bonds are issued. The Mortgage Indenture provides that dividends or any other distribution or purchase of shares may not be made if the aggregate amount thereof since December 31, 1945 would exceed the earned surplus (retained earnings) accumulated subsequent to December 31, 1945. As of December 31, 2014, approximately $334.8 million was available for the payment of dividends under this covenant. | ||||||||||||
(b) The indenture under which MGE's Medium-Term notes are issued provides that those notes will be entitled to be equally and ratably secured in the event that MGE issues any additional first mortgage bonds. | ||||||||||||
(c) Unsecured notes issued pursuant to various Note Purchase Agreements with one or more purchasers. The notes are not issued under, or governed by, MGE’s Indenture dated as of September 1, 1998, which governs MGE’s Medium-Term Notes. | ||||||||||||
(d) Issued by MGE. Under that Note Purchase Agreement: (i) note holders have the right to require MGE to repurchase their notes at par in the event of an acquisition of beneficial ownership of 30% or more of the outstanding voting stock of MGE Energy, (ii) MGE must maintain a ratio of its consolidated indebtedness to consolidated total capitalization not to exceed a maximum of 65%, and (iii) MGE cannot issue "Priority Debt" in an amount exceeding 20% of its consolidated assets. Priority Debt is defined as any indebtedness of MGE secured by liens other than specified liens permitted by the Note Purchase Agreement and certain unsecured indebtedness of certain subsidiaries. As of December 31, 2014, MGE is in compliance with the covenant requirements. | ||||||||||||
(e) Issued by MGE Power West Campus. The Note Purchase Agreements require it to maintain a projected debt service coverage ratio of not less than 1.25 to 1.00, and debt to total capitalization ratio of not more than 0.65 to 1.00. The notes are secured by a collateral assignment of lease payments that MGE is making to MGE Power West Campus for use of its ownership interest in the West Campus Cogeneration Facility pursuant to a long-term lease. As of December 31, 2014, MGE Power West Campus is in compliance with the covenant requirements. | ||||||||||||
(f) Issued by MGE Power Elm Road. The Note Purchase Agreement requires MGE Power Elm Road to maintain a projected and actual debt service coverage ratio at the end of any calendar quarter of not less than 1.25 to 1.00 for the trailing 12-month period. The notes are secured by a collateral assignment of lease payments that MGE is making to MGE Power Elm Road for use of its ownership interest in the Elm Road Units pursuant to long-term leases. As of December 31, 2014, MGE Power Elm Road is in compliance with the covenant requirements. | ||||||||||||
Schedule of Long-Term Debt Maturities | Below is MGE Energy's and MGE's aggregate maturities for all long-term debt for years following the December 31, 2014, consolidated balance sheets. | |||||||||||
MGE | ||||||||||||
(In thousands) | Energy | MGE * | ||||||||||
2015 | $ | 4,182 | $ | 4,182 | ||||||||
2016 | 4,268 | 4,268 | ||||||||||
2017 | 34,358 | 34,358 | ||||||||||
2018 | 24,452 | 24,452 | ||||||||||
2019 | 4,553 | 4,553 | ||||||||||
Future years | 327,877 | 327,877 | ||||||||||
Total | $ | 399,690 | $ | 399,690 | ||||||||
*Includes $48.2 million for MGE Power West Campus and $68.0 million for MGE Power Elm Road, all of which are consolidated with MGE's debt (see Footnote 2 for further information). |
Notes_Payable_to_Banks_Commerc1
Notes Payable to Banks, Commercial Paper, and Lines of Credit (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Short-Term Borrowings | Information concerning short-term borrowings for the past three years is shown below: | ||||||||
As of December 31, | |||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||
MGE Energy(a) | |||||||||
Available lines of credit | $ | 150,000 | $ | 150,000 | $ | 115,000 | |||
Short-term debt outstanding | $ | 7,000 | $ | - | $ | - | |||
Weighted-average interest rate | 0.20% | -% | -% | ||||||
During the year: | |||||||||
Maximum short-term borrowings | $ | 9,000 | $ | 32,000 | $ | 16,000 | |||
Average short-term borrowings | $ | 182 | $ | 6,992 | $ | 1,154 | |||
Weighted-average interest rate | 0.24% | 0.18% | 0.17% | ||||||
MGE | |||||||||
Available lines of credit | $ | 100,000 | $ | 100,000 | $ | 75,000 | |||
Commercial paper outstanding | $ | 7,000 | $ | - | $ | - | |||
Weighted-average interest rate | 0.20% | -% | -% | ||||||
During the year: | |||||||||
Maximum short-term borrowings | $ | 9,000 | $ | 32,000 | $ | 16,000 | |||
Average short-term borrowings | $ | 182 | $ | 6,992 | $ | 1,154 | |||
Weighted-average interest rate | 0.24% | 0.18% | 0.17% | ||||||
(a) MGE Energy short-term borrowings include MGE Energy and MGE lines of credit and MGE commercial paper. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Estimated Fair Market Value of Financial Instruments | The estimated fair market value of MGE Energy's and MGE's financial instruments are as follows: | |||||||||||
2014 | 2013 | |||||||||||
(In thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||
MGE Energy | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 65,755 | $ | 65,755 | $ | 68,813 | $ | 68,813 | ||||
Liabilities: | ||||||||||||
Short-term debt - commercial paper | 7,000 | 7,000 | - | - | ||||||||
Long-term debt* | 399,690 | 457,420 | 403,793 | 432,010 | ||||||||
MGE | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 4,562 | $ | 4,562 | $ | 14,808 | $ | 14,808 | ||||
Liabilities: | ||||||||||||
Short-term debt - commercial paper | 7,000 | 7,000 | - | - | ||||||||
Long-term debt* | 399,690 | 457,420 | 403,793 | 432,010 | ||||||||
*Includes long-term debt due within one year. | ||||||||||||
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 for MGE Energy and MGE. | |||||||||||
Fair Value as of December 31, 2014 | ||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||
MGE Energy | ||||||||||||
Assets: | ||||||||||||
Derivatives, net | $ | 642 | $ | - | $ | - | $ | 642 | ||||
Exchange-traded investments | 927 | 927 | - | - | ||||||||
Total Assets | $ | 1,569 | $ | 927 | $ | - | $ | 642 | ||||
Liabilities: | ||||||||||||
Derivatives, net(a) | $ | 55,640 | $ | 1,012 | $ | - | $ | 54,628 | ||||
Deferred compensation | 2,832 | - | 2,832 | - | ||||||||
Total Liabilities | $ | 58,472 | $ | 1,012 | $ | 2,832 | $ | 54,628 | ||||
MGE | ||||||||||||
Assets: | ||||||||||||
Derivatives, net | $ | 642 | $ | - | $ | - | $ | 642 | ||||
Exchange-traded investments | 350 | 350 | - | - | ||||||||
Total Assets | $ | 992 | $ | 350 | $ | - | $ | 642 | ||||
Liabilities: | ||||||||||||
Derivatives, net(a) | $ | 55,640 | $ | 1,012 | $ | - | $ | 54,628 | ||||
Deferred compensation | 2,832 | - | 2,832 | - | ||||||||
Total Liabilities | $ | 58,472 | $ | 1,012 | $ | 2,832 | $ | 54,628 | ||||
Fair Value as of December 31, 2013 | ||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||
MGE Energy | ||||||||||||
Assets: | ||||||||||||
Derivatives, net | $ | 1,787 | $ | 735 | $ | - | $ | 1,052 | ||||
Exchange-traded investments | 792 | 792 | - | - | ||||||||
Total Assets | $ | 2,579 | $ | 1,527 | $ | - | $ | 1,052 | ||||
Liabilities: | ||||||||||||
Derivatives, net | $ | 65,680 | $ | - | $ | - | $ | 65,680 | ||||
Deferred compensation | 2,364 | - | 2,364 | - | ||||||||
Total Liabilities | $ | 68,044 | $ | - | $ | 2,364 | $ | 65,680 | ||||
MGE | ||||||||||||
Assets: | ||||||||||||
Derivatives, net | $ | 1,787 | $ | 735 | $ | - | $ | 1,052 | ||||
Exchange-traded investments | 431 | 431 | - | - | ||||||||
Total Assets | $ | 2,218 | $ | 1,166 | $ | - | $ | 1,052 | ||||
Liabilities: | ||||||||||||
Derivatives, net | $ | 65,680 | $ | - | $ | - | $ | 65,680 | ||||
Deferred compensation | 2,364 | - | 2,364 | - | ||||||||
Total Liabilities | $ | 68,044 | $ | - | $ | 2,364 | $ | 65,680 | ||||
(a) These amounts are shown gross and exclude $2.2 million and $0.2 million of collateral that was | ||||||||||||
posted against derivative positions with counterparties as of December 31, 2014 and 2013, respectively. | ||||||||||||
Significant Unobservable Inputs | The following table presents the significant unobservable inputs used in the pricing model as of December 31: | |||||||||||
Model Input | ||||||||||||
Significant Unobservable Inputs | 2014 | 2013 | ||||||||||
Basis adjustment: | ||||||||||||
On peak | 98.10% | 94.20% | ||||||||||
Off peak | 95.00% | 92.60% | ||||||||||
Counterparty fuel mix: | ||||||||||||
Internal generation | 50%-70% | 50%-70% | ||||||||||
Purchased power | 50%-30% | 50%-30% | ||||||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for both MGE Energy and MGE. | |||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Balance as of January 1, | $ | -64,628 | $ | -72,346 | $ | -40,661 | ||||||
Realized and unrealized gains (losses): | ||||||||||||
Included in regulatory liabilities (assets) | 10,642 | 7,718 | -31,685 | |||||||||
Included in other comprehensive income | - | - | - | |||||||||
Included in earnings | 5,129 | -2,618 | -5,005 | |||||||||
Included in current assets | - | -108 | - | |||||||||
Purchases | 26,382 | 23,726 | 13,370 | |||||||||
Sales | -125 | -2 | 92 | |||||||||
Issuances | - | - | - | |||||||||
Settlements | -31,386 | -20,998 | -8,457 | |||||||||
Transfers in and/or out of Level 3 | - | - | - | |||||||||
Balance as of December 31, | $ | -53,986 | $ | -64,628 | $ | -72,346 | ||||||
Total gains (losses) included in earnings attributed to the | ||||||||||||
change in unrealized gains (losses) related to assets and | ||||||||||||
liabilities held at December 31,(b) | $ | - | $ | - | $ | - | ||||||
(b) MGE's exchange-traded derivative contracts, over-the-counter party transactions, ten-year purchased power agreement, 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. | ||||||||||||
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 for both MGE Energy and MGE (b). | |||||||||||
(In thousands) | ||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | |||||||||
Purchased power expense | $ | 5,137 | $ | -2,618 | $ | -5,005 | ||||||
Cost of gas sold expense | -8 | - | - | |||||||||
Total | $ | 5,129 | $ | -2,618 | $ | -5,005 | ||||||
(b) MGE's exchange-traded derivative contracts, over-the-counter party transactions, ten-year purchased power agreement, 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. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Income Tax Provision | On a consolidated and separate company basis, MGE Energy’s and MGE’s income tax provision consists of the following provision (benefit) components for the years ended December 31: | |||||||||||||
MGE Energy | MGE | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||
Current payable: | ||||||||||||||
Federal | $ | -891 | $ | -1,508 | $ | -6,053 | $ | 637 | $ | -448 | $ | -5,030 | ||
State | -589 | 8,213 | 436 | -451 | 8,322 | 613 | ||||||||
Net-deferred: | ||||||||||||||
Federal | 39,284 | 37,203 | 37,178 | 38,553 | 36,937 | 36,589 | ||||||||
State | 10,600 | 1,163 | 7,618 | 10,625 | 1,223 | 7,523 | ||||||||
Amortized investment tax credits | -219 | -212 | -260 | -219 | -212 | -260 | ||||||||
Total income tax provision | $ | 48,185 | $ | 44,859 | $ | 38,919 | $ | 49,145 | $ | 45,822 | $ | 39,435 | ||
Effective Tax Rate Reconciliation | MGE Energy’s and MGE’s 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 | |||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | ||||||||
State income taxes, net of federal benefit | 5.10% | 5.10% | 5.00% | 5.10% | 5.10% | 5.00% | ||||||||
Amortized investment tax credits | -0.20% | -0.20% | -0.30% | -0.20% | -0.20% | -0.20% | ||||||||
Credit for electricity from wind energy | -1.70% | -1.50% | -1.60% | -1.70% | -1.50% | -1.50% | ||||||||
Domestic manufacturing deduction | -% | -0.20% | 0.30% | -% | -0.20% | 0.30% | ||||||||
AFUDC equity, net | -0.80% | -0.70% | -0.40% | -0.80% | -0.70% | -0.40% | ||||||||
Other, net, individually insignificant | 0.10% | -% | -0.30% | 0.10% | -% | -0.50% | ||||||||
Effective income tax rate | 37.50% | 37.50% | 37.70% | 37.50% | 37.50% | 37.70% | ||||||||
Deferred Tax Liabilities (Assets) | The significant components of deferred tax liabilities (assets) that appear on MGE Energy’s and MGE’s consolidated balance sheets as of December 31 as follows: | |||||||||||||
MGE Energy | MGE | |||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Property-related | $ | 312,903 | $ | 263,881 | $ | 312,807 | $ | 263,881 | ||||||
Investment in ATC | 36,140 | 32,696 | 29,156 | 27,073 | ||||||||||
Bond transactions | 1,420 | 1,553 | 1,420 | 1,553 | ||||||||||
Pension and other postretirement benefits | 57,847 | 34,478 | 57,847 | 34,478 | ||||||||||
Derivatives | 22,331 | 26,361 | 22,331 | 26,361 | ||||||||||
Tax deductible prepayments | 8,077 | 7,508 | 8,077 | 7,508 | ||||||||||
Other | 10,451 | 1,995 | 10,259 | 1,911 | ||||||||||
Gross deferred income tax liabilities | 449,169 | 368,472 | 441,897 | 362,765 | ||||||||||
Future tax benefit | -4,092 | - | -4,092 | - | ||||||||||
Accrued expenses | -32,091 | -17,195 | -32,091 | -17,195 | ||||||||||
Pension and other postretirement benefits | -44,994 | -26,838 | -44,994 | -26,838 | ||||||||||
Deferred tax regulatory account | -1,211 | -1,402 | -1,211 | -1,402 | ||||||||||
Derivatives | -22,331 | -26,361 | -22,331 | -26,361 | ||||||||||
Other | -5,957 | -10,369 | -3,746 | -9,356 | ||||||||||
Gross deferred income tax assets | -110,676 | -82,165 | -108,465 | -81,152 | ||||||||||
Less valuation allowance | 70 | 195 | 70 | 195 | ||||||||||
Net deferred income tax assets | -110,606 | -81,970 | -108,395 | -80,957 | ||||||||||
Deferred income taxes | $ | 338,563 | $ | 286,502 | $ | 333,502 | $ | 281,808 | ||||||
Unrecognized Tax Benefits and Interest | A tabular reconciliation of unrecognized tax benefits and interest from January 1, 2012 to December 31, 2014, is as follows: | |||||||||||||
(In thousands) | ||||||||||||||
Unrecognized tax benefits: | 2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits, January 1, | $ | 2,363 | $ | 3,204 | $ | 2,364 | ||||||||
Additions based on tax positions related to the current year | 610 | 377 | 401 | |||||||||||
Additions based on tax positions related to the prior years | 618 | 424 | 580 | |||||||||||
Reductions based on tax positions related to the current year | - | -40 | - | |||||||||||
Reductions based on tax positions related to the prior years | -1,226 | -1,602 | -141 | |||||||||||
Unrecognized tax benefits, December 31, | $ | 2,365 | $ | 2,363 | $ | 3,204 | ||||||||
(In thousands) | ||||||||||||||
Interest on unrecognized tax benefits: | 2014 | 2013 | 2012 | |||||||||||
Accrued interest on unrecognized tax benefits, January 1, | $ | 101 | $ | 314 | $ | 216 | ||||||||
Reduction in interest expense on uncertain tax positions | -97 | -275 | - | |||||||||||
Interest expense on uncertain tax positions | 88 | 62 | 98 | |||||||||||
Accrued interest on unrecognized tax benefits, December 31, | $ | 92 | $ | 101 | $ | 314 | ||||||||
Tax Years that Remain Subject to Examination | The following table shows tax years that remain subject to examination by major jurisdiction: | |||||||||||||
Taxpayer | Open Years | |||||||||||||
MGE Energy and consolidated subsidiaries in federal return | 2011 through 2014 | |||||||||||||
MGE Energy Wisconsin combined reporting corporation return | 2010 through 2014 |
Pension_Plans_and_Other_Postre1
Pension Plans and Other Postretirement Benefits (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||
Schedule of Benefit Obligations and Change in Plan Assets | (In thousands) | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Change in benefit obligations: | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net benefit obligation at beginning of year | $ | 283,958 | $ | 315,505 | $ | 66,100 | $ | 92,605 | |||||||
Service cost | 6,179 | 7,705 | 1,339 | 2,380 | |||||||||||
Interest cost | 13,574 | 12,656 | 3,166 | 3,871 | |||||||||||
Plan participants' contributions | - | - | 708 | 665 | |||||||||||
Plan amendments(a) | - | - | - | -20,915 | |||||||||||
Actuarial (gain) loss(b) | 48,162 | -40,335 | 10,090 | -9,687 | |||||||||||
Gross benefits paid | -11,640 | -11,573 | -3,113 | -2,998 | |||||||||||
Less: federal subsidy on benefits paid(c) | - | - | 188 | 179 | |||||||||||
Benefit obligation at end of year | $ | 340,233 | $ | 283,958 | $ | 78,478 | $ | 66,100 | |||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 277,398 | $ | 212,277 | $ | 37,602 | $ | 32,124 | |||||||
Actual return on plan assets | 21,907 | 45,816 | 2,558 | 5,000 | |||||||||||
Employer contributions | 883 | 30,878 | 1,197 | 2,811 | |||||||||||
Plan participants' contributions | - | - | 708 | 665 | |||||||||||
Gross benefits paid | -11,640 | -11,573 | -3,113 | -2,998 | |||||||||||
Fair value of plan assets at end of year | $ | 288,548 | $ | 277,398 | $ | 38,952 | $ | 37,602 | |||||||
Funded Status at December 31 | $ | -51,685 | $ | -6,560 | $ | -39,526 | $ | -28,498 | |||||||
(a) In 2013, MGE capped the amount it pays each year toward retiree medical premiums at 175% of the 2013 employer contribution for qualified employees. | |||||||||||||||
(b) In 2014, lower discount rates and mortality table updates were the main drivers to the actuarial loss. | |||||||||||||||
(c) In 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 was signed into law authorizing Medicare to provide prescription drug benefits to retirees. For the years ended December 31, 2014 and 2013, the subsidy due to MGE was $0.2 million. | |||||||||||||||
Schedule of Amounts Recognized in the Consolidated Balance Sheet | The amounts recognized in the consolidated balance sheets to reflect the funded status of the plans at December 31 are as follows: | ||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Long-term asset | $ | - | $ | 15,071 | $ | - | $ | - | |||||||
Current liability | -1,025 | -945 | -65 | -13 | |||||||||||
Long-term liability | -50,660 | -20,686 | -39,461 | -28,485 | |||||||||||
Net liability | $ | -51,685 | $ | -6,560 | $ | -39,526 | $ | -28,498 | |||||||
Amounts Recognized in Regulatory Asset | The following table shows the amounts that have not yet been recognized in our net periodic benefit cost as of December 31 and are recorded as regulatory assets in our consolidated balance sheets: | ||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net actuarial loss | $ | 85,102 | $ | 37,499 | $ | 17,657 | $ | 7,761 | |||||||
Prior service cost | -413 | -209 | -17,827 | -20,495 | |||||||||||
Transition obligation | - | - | 32 | 35 | |||||||||||
Total | $ | 84,689 | $ | 37,290 | $ | -138 | $ | -12,699 | |||||||
Scehdule of Projected Benefit Obligations in Excess of Plan Assets | The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets were as follows: | ||||||||||||||
(In thousands) | Pension Benefits | ||||||||||||||
Projected benefit obligation in excess of plan assets | 2014 | 2013 | |||||||||||||
Projected benefit obligation, end of year | $ | 340,233 | $ | 21,631 | |||||||||||
Fair value of plan assets, end of year | 288,548 | - | |||||||||||||
Schedule of Projected Benefit and Accumulated Benefit Obligations in Excess of Plan Assets | The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and an accumulated benefit obligation in excess of plan assets were as follows: | ||||||||||||||
(In thousands) | Pension Benefits | ||||||||||||||
Accumulated benefit obligation in excess of plan assets | 2014 | 2013 | |||||||||||||
Projected benefit obligation, end of year | $ | 340,233 | $ | 21,631 | |||||||||||
Accumulated benefit obligation, end of year | 304,023 | 19,795 | |||||||||||||
Fair value of plan assets, end of year | 288,548 | - | |||||||||||||
Net Periodic Benefit Costs | (In thousands) | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Components of net periodic (benefit) cost: | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||
Service cost | $ | 6,179 | $ | 7,705 | $ | 7,139 | $ | 1,339 | $ | 2,380 | $ | 2,528 | |||
Interest cost | 13,574 | 12,656 | 12,704 | 3,166 | 3,871 | 4,431 | |||||||||
Expected return on assets | -22,051 | -19,027 | -15,182 | -2,615 | -2,176 | -1,741 | |||||||||
Amortization of: | |||||||||||||||
Transition obligation | - | - | - | 3 | 3 | 425 | |||||||||
Prior service (benefit) cost | 204 | 314 | 430 | -2,669 | 110 | 110 | |||||||||
Actuarial loss | 703 | 8,014 | 8,288 | 252 | 1,236 | 2,346 | |||||||||
Net periodic (benefit) cost | $ | -1,391 | $ | 9,662 | $ | 13,379 | $ | -524 | $ | 5,424 | $ | 8,099 | |||
Plan Assumptions | The weighted-average assumptions used to determine the benefit obligations were as follows for the years ended December 31: | ||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Discount rate | 4.11% | 4.88% | 3.96% | 4.69% | |||||||||||
Rate of compensation increase | 3.85% | 3.90% | N/A | N/A | |||||||||||
Assumed health care cost trend rates: | |||||||||||||||
Health care cost trend rate assumed for next year | N/A | N/A | 6.50% | 7.00% | |||||||||||
Rate to which the cost trend rate is assumed to | |||||||||||||||
decline (the ultimate trend rate) | N/A | N/A | 5.00% | 5.00% | |||||||||||
Year that the rate reaches the ultimate trend rate | N/A | N/A | 2021 | 2018 | |||||||||||
The weighted-average assumptions used to determine the net periodic cost were as follows for the years ended December 31: | |||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||
Discount rate | 4.88% | 4.09% | 4.50% | 4.69% | 4.14% | 4.55% | |||||||||
Expected rate of return on plan assets | 8.10% | 8.10% | 8.10% | 7.07% | 6.79% | 7.26% | |||||||||
Rate of compensation increase | 3.93% | 4.60% | 4.59% | N/A | N/A | N/A | |||||||||
Effect of 1% Increase or Decrease in Health Care Costs | The following table shows how an assumed 1% increase or 1% decrease in health care cost trends could impact postretirement benefits in 2014 dollars: | ||||||||||||||
(In thousands) | 1% Increase | 1% Decrease | |||||||||||||
Effect on other postretirement benefit obligation | $ | 1,465 | $ | -1,852 | |||||||||||
Effect on total service and interest cost components | 75 | -101 | |||||||||||||
Fair Value of Plan Assets by Asset Category | The asset allocation for MGE's pension plans at the end of 2014 and 2013, and the target allocation for 2015, by asset category, follows: | ||||||||||||||
Target Allocation | Percentage of Plan Assets at Year End | ||||||||||||||
2014 | 2013 | ||||||||||||||
Equity securities(a) | 63.00% | 62.00% | 66.00% | ||||||||||||
Fixed income securities | 30.00% | 31.00% | 28.00% | ||||||||||||
Real estate | 7.00% | 7.00% | 6.00% | ||||||||||||
Total | 100.00% | 100.00% | 100.00% | ||||||||||||
(a) Target allocations for equity securities are broken out as follows: 45.5% United States equity, | |||||||||||||||
17.5% non-United States equity. | |||||||||||||||
The fair value of MGE's plan assets, by asset category are as follows: | |||||||||||||||
Fair Value as of December 31, 2014 | |||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Equity Securities: | |||||||||||||||
U.S. Large Cap | $ | 99,256 | $ | - | $ | 99,256 | $ | - | |||||||
U.S. Mid Cap | 22,926 | - | 22,926 | - | |||||||||||
U.S. Small Cap | 29,353 | - | 29,353 | - | |||||||||||
International Blend | 47,650 | - | 47,650 | - | |||||||||||
Fixed Income Securities: | |||||||||||||||
Short-Term Fund | 3,776 | - | 3,776 | - | |||||||||||
High Yield Bond | 15,492 | - | 15,492 | - | |||||||||||
Long Duration Bond | 79,603 | - | 79,603 | - | |||||||||||
Real Estate | 23,480 | - | - | 23,480 | |||||||||||
Insurance Continuance Fund | 1,518 | - | - | 1,518 | |||||||||||
Fixed Rate Fund | 4,446 | - | - | 4,446 | |||||||||||
Total | $ | 327,500 | $ | - | $ | 298,056 | $ | 29,444 | |||||||
Fair Value as of December 31, 2013 | |||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Cash and Cash Equivalents | $ | 5,109 | $ | 5,109 | $ | - | $ | - | |||||||
Equity Securities: | |||||||||||||||
U.S. Large Cap | 96,258 | - | 96,258 | - | |||||||||||
U.S. Mid Cap | 22,741 | - | 22,741 | - | |||||||||||
U.S. Small Cap | 28,854 | - | 28,854 | - | |||||||||||
International Blend | 54,873 | - | 54,873 | - | |||||||||||
Fixed Income Securities: | |||||||||||||||
Short-Term Fund | 4,789 | - | 4,789 | - | |||||||||||
High Yield Bond | 15,127 | - | 15,127 | - | |||||||||||
Long Duration Bond | 66,193 | - | 66,193 | - | |||||||||||
Real Estate | 19,628 | - | - | 19,628 | |||||||||||
Insurance Continuance Fund | 1,428 | - | - | 1,428 | |||||||||||
Total | $ | 315,000 | $ | 5,109 | $ | 288,835 | $ | 21,056 | |||||||
Change in Fair Value of Level 3 Plan Assets | The following table summarizes the changes in the fair value of the Level 3 plan assets. | ||||||||||||||
Level 3 Assets | |||||||||||||||
(In thousands) | Real Estate | Insurance Continuance Fund | Fixed Rate Fund | ||||||||||||
Balance as of January 1, 2013 | $ | 17,141 | $ | 1,466 | $ | - | |||||||||
Actual return on plan assets: | |||||||||||||||
Relating to assets still held at the reporting date | 1,565 | 42 | - | ||||||||||||
Purchases, sales, and settlements | 922 | -80 | - | ||||||||||||
Transfers in and/or out of Level 3 | - | - | - | ||||||||||||
Balance as of December 31, 2013 | $ | 19,628 | $ | 1,428 | $ | - | |||||||||
Actual return on plan assets: | |||||||||||||||
Relating to assets still held at the reporting date | 1,561 | 44 | 54 | ||||||||||||
Purchases, sales, and settlements | 2,291 | 46 | 4,392 | ||||||||||||
Transfers in and/or out of Level 3 | - | - | - | ||||||||||||
Balance as of December 31, 2014 | $ | 23,480 | $ | 1,518 | $ | 4,446 | |||||||||
Benefit Payments, Fiscal Year Maturity | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows: | ||||||||||||||
Pension | Other Postretirement Benefits | ||||||||||||||
(In thousands) | Pension Benefits | Gross Postretirement Benefits | Expected Medicare Part D Subsidy | Net Postretirement Benefits | |||||||||||
2015 | $ | 11,944 | 3,101 | -211 | 2,890 | ||||||||||
2016 | 12,631 | 3,338 | -237 | 3,101 | |||||||||||
2017 | 13,408 | 3,757 | -258 | 3,499 | |||||||||||
2018 | 14,613 | 4,272 | -282 | 3,990 | |||||||||||
2019 | 15,559 | 4,776 | -306 | 4,470 | |||||||||||
2020 - 2024 | 92,915 | 29,871 | -2,005 | 27,866 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) (Performance Units [Member]) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Performance Unit Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Unit Graded Vesting Schedule | Under MGE Energy’s Performance Unit Plan, eligible employees may receive performance units that entitle the holder to receive a cash payment equal to the value of a designated number of shares of MGE Energy's common stock, plus dividend equivalent payments thereon, at the end of the set performance period. In accordance with the plan’s provisions, these awards are subject to a prescribed vesting schedule and must be settled in cash. Accordingly, no shares of common stock will be issued in connection with the plan. | ||||
On the grant date, MGE Energy and MGE measure the cost of the employee services received in exchange for a performance unit award based on the current market value of MGE Energy common stock. The fair value of the awards is re-measured quarterly, including at December 31, 2014, as required by applicable accounting standards. Changes in fair value as well as the original grant are recognized as compensation cost. Since this amount is re-measured throughout the vesting period, the compensation cost is subject to variability. These units are subject to a five year graded vesting schedule. | |||||
Grant Date | MGE Energy Units Granted | ||||
20-Feb-15 | 18,948 | ||||
21-Feb-14 | 21,991 | ||||
15-Feb-13 | 22,884 | ||||
17-Feb-12 | 25,040 | ||||
21-Jan-11 | 23,483 | ||||
Director Incentive Agreement [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Unit Graded Vesting Schedule | In December 2013, a Director Incentive Plan was approved for the non-employee members of the Board of Directors. This plan is similar to MGE Energy’s Performance Unit Plan for eligible employees described above. Under the plan, a non-employee director can receive performance units that entitle the holder to receive a cash payment equal to the value of a designated number of shares of MGE Energy’s common stock, plus dividend payments, at the end of the set performance period. The units are subject to a three year graded vesting schedule. | ||||
Grant Date | MGE Energy Units Granted | ||||
16-Jan-15 | 3,794 | ||||
17-Jan-14 | 4,683 |
Derivative_and_Hedging_Instrum1
Derivative and Hedging Instruments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Gross Notional Volume of Open Derivatives | The gross notional volume of open derivatives is as follows: | ||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
Commodity derivative contracts | 448,000 MWh | 458,660 MWh | |||||||||
Commodity derivative contracts | 4,405,000 Dth | 3,750,000 Dth | |||||||||
FTRs | 1,854 MW | 1,984 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 sheet. 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, MGE Energy and MGE have netted instruments with the same counterparty under a master netting agreement as well as the netting of collateral. At December 31, 2014, MGE Energy and MGE had the right to reclaim collateral (a receivable) of $2.2 million. | ||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||
(In thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||
31-Dec-14 | |||||||||||
Commodity derivative contracts | Other current assets | $ | 130 | Derivative liability (current) | $ | 2,262 | |||||
Commodity derivative contracts | Other deferred charges | 93 | Derivative liability (long-term) | 171 | |||||||
FTRs | Other current assets | 642 | Derivative liability (current) | - | |||||||
Ten-year PPA | N/A | N/A | Derivative liability (current) | 6,870 | |||||||
Ten-year PPA | N/A | N/A | Derivative liability (long-term) | 46,560 | |||||||
31-Dec-13 | |||||||||||
Commodity derivative contracts | Other current assets | $ | 1,356 | Derivative liability (current) | $ | 51 | |||||
Commodity derivative contracts | Other deferred charges | 167 | Derivative liability (long-term) | 48 | |||||||
FTRs | Other current assets | 363 | Derivative liability (current) | - | |||||||
Ten-year PPA | N/A | N/A | Derivative liability (current) | 7,750 | |||||||
Ten-year PPA | N/A | N/A | Derivative liability (long-term) | 57,930 | |||||||
Offsetting Assets | The following tables show the effect of netting arrangements for recognized derivative assets and liabilities that are subject to a master netting arrangement or similar arrangement on the balance sheet. | ||||||||||
Offsetting of Derivative Assets | |||||||||||
Gross amounts | Gross amounts offset in balance sheet | Collateral posted against derivative positions | Net amount presented in balance sheet | ||||||||
(In thousands) | |||||||||||
31-Dec-14 | |||||||||||
Commodity derivative contracts | $ | 223 | $ | -223 | $ | - | $ | - | |||
FTRs | 642 | - | - | 642 | |||||||
31-Dec-13 | |||||||||||
Commodity derivative contracts | $ | 1,523 | $ | -99 | $ | -175 | $ | 1,249 | |||
FTRs | 363 | - | - | 363 | |||||||
Offsetting Liabilities | Offsetting of Derivative Liabilities | ||||||||||
Gross amounts | Gross amounts offset in balance sheet | Collateral posted against derivative positions | Net amount presented in balance sheet | ||||||||
(In thousands) | |||||||||||
31-Dec-14 | |||||||||||
Commodity derivative contracts | $ | 2,433 | $ | -223 | $ | -2,179 | $ | 31 | |||
Ten-year PPA | 53,430 | - | - | 53,430 | |||||||
31-Dec-13 | |||||||||||
Commodity derivative contracts | $ | 99 | $ | -99 | $ | - | $ | - | |||
Ten-year PPA | 65,680 | - | - | 65,680 | |||||||
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 sheet at December 31, 2014 and 2013, and the consolidated income statement for the year ended December 31, 2014 and 2013. | ||||||||||
2014 | 2013 | ||||||||||
(In thousands) | Current and Long-Term Regulatory Asset | Other Current Assets | Current and Long-Term Regulatory Asset | Other Current Assets | |||||||
Year Ended December 31: | |||||||||||
Balance at January 1, | $ | 63,893 | $ | 411 | $ | 72,329 | $ | 574 | |||
Change in unrealized loss | -14,518 | - | -5,069 | - | |||||||
Realized gain (loss) reclassified to a deferred account | 595 | -595 | -823 | 823 | |||||||
Realized gain (loss) reclassified to income statement | 5,028 | 1,185 | -2,544 | -986 | |||||||
Balance at December 31, | $ | 54,998 | $ | 1,001 | $ | 63,893 | $ | 411 | |||
Derivative Gains and Losses in Income Statement | Realized losses (gains) | ||||||||||
2014 | 2013 | ||||||||||
Fuel for electric generation/ purchased power | Cost of gas sold | Fuel for electric generation/ purchased power | Cost of gas sold | ||||||||
(In thousands) | |||||||||||
Year Ended December 31: | |||||||||||
Commodity derivative contracts | $ | -5,515 | $ | -1,103 | $ | -564 | $ | 868 | |||
FTRs | -1,110 | - | -983 | - | |||||||
Ten-year PPA | 1,515 | - | 4,209 | - |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule | As of December 31, 2014, the future minimum commitments related to these purchase contracts were as follows: | ||||||||||||||
(In thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||
Coal(a) | $ | 22,630 | $ | 16,436 | $ | 10,664 | $ | 6,560 | $ | 3,850 | |||||
Natural Gas | |||||||||||||||
Transportation and storage(b) | 18,074 | 9,938 | 273 | 192 | - | ||||||||||
Supply(c) | 14,971 | - | - | - | - | ||||||||||
Purchase Power(d) | 50,714 | 51,437 | 52,043 | 50,752 | 37,367 | ||||||||||
Other | 16,452 | 723 | 723 | 324 | 143 | ||||||||||
$ | 122,841 | $ | 78,534 | $ | 63,703 | $ | 57,828 | $ | 41,360 | ||||||
(a) Total coal commitments for the Columbia and Elm Road Units, including transportation. Fuel procurement for MGE's jointly owned Columbia and Elm Road Units are handled by WPL and WEPCO, respectively, who are the operators of those facilities. If any minimum purchase obligations must be paid under these contracts, management believes these obligations would be considered costs of service and recoverable in rates. | |||||||||||||||
(b) 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 established by FERC but may be subject to change. | |||||||||||||||
(c) These commitments include market-based pricing. Management expects to recover these costs in future customer rates. | |||||||||||||||
(d) MGE has several purchase power agreements to help meet future electric supply requirements. Management expects to recover these costs in future customer rates. In October 2008, MGE entered into a ten-year purchase power agreement to help meet future electric supply requirements. Under this agreement, MGE has agreed to purchase 50 MW of wind power from Osceola Windpower II, LLC, which is located in Iowa. This facility became operational in October 2008. MGE does not have any capacity payment commitments under this agreement. However, MGE is obligated to purchase its ratable share of the energy produced by the project. MGE's commitment related to its ratable share of energy produced by the project has been estimated and is included in the above numbers. | |||||||||||||||
Guarantor Obligations, Fiscal Year Maturity Schedule | Principal payments for the next five years on the loans are: | ||||||||||||||
(In thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||
Principal payments | $ | 906 | $ | 884 | $ | 482 | $ | 420 | $ | 410 | |||||
Operating Leases, Future Minimum Rental Payments | Future minimum rental payments at December 31, 2014, under agreements classified as operating leases with noncancelable terms in excess of one year are as follows: | ||||||||||||||
(In thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||
Minimum lease payments | $ | 1,553 | $ | 1,346 | $ | 872 | $ | 419 | $ | 258 | $ | 7,938 | |||
Other Commitments | MGE has several other commitments related to various projects. Payments for these commitments are expected to be as follows: | ||||||||||||||
(In thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||
Other Commitments | $ | 474 | $ | 475 | $ | 433 | $ | 435 | $ | 437 | $ | 6,524 |
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Asset Retirement Obligation Disclosure [Abstract] | |||||||
Change in Asset Retirement Obligations | The following table shows a rollforward of the AROs from January 1, 2013 to December 31, 2014. Amounts include conditional AROs. | ||||||
(In thousands) | 2014 | 2013 | |||||
Balance at January 1, | $ | 19,359 | $ | 18,768 | |||
Liabilities incurred | 68 | 296 | |||||
Accretion expense | 1,077 | 1,015 | |||||
Liabilities settled | -343 | -744 | |||||
Revisions in estimated cash flows | -417 | 24 | |||||
Balance at December 31, | $ | 19,744 | $ | 19,359 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||
Segment Information | The following table shows segment information for MGE Energy's and MGE's operations: | |||||||||||||||||
(In thousands)MGE Energy | Electric | Gas | Non-Regulated Energy | Transmission Investment | All Others | Consolidation/ Elimination Entries | Consolidated Total | |||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||
Operating revenues | $ | 394,849 | $ | 221,720 | $ | 3,283 | $ | - | $ | - | $ | - | $ | 619,852 | ||||
Interdepartmental revenues | 509 | 8,366 | 42,692 | - | - | -51,567 | - | |||||||||||
Total operating revenues | 395,358 | 230,086 | 45,975 | - | - | -51,567 | 619,852 | |||||||||||
Depreciation and amortization | -26,933 | -6,308 | -7,407 | - | -47 | - | -40,695 | |||||||||||
Other operating expenses | -297,409 | -194,203 | -139 | - | -875 | 51,567 | -441,059 | |||||||||||
Operating income (loss) | 71,016 | 29,575 | 38,429 | - | -922 | - | 138,098 | |||||||||||
Other (deductions) income, net | 2,847 | -86 | - | 9,150 | -1,832 | - | 10,079 | |||||||||||
Interest (expense) income, net | -10,410 | -3,229 | -6,208 | - | 174 | - | -19,673 | |||||||||||
Income (loss) before taxes | 63,453 | 26,260 | 32,221 | 9,150 | -2,580 | - | 128,504 | |||||||||||
Income tax (provision) benefit | -22,070 | -10,480 | -12,932 | -3,664 | 961 | - | -48,185 | |||||||||||
Net income (loss) | $ | 41,383 | $ | 15,780 | $ | 19,289 | $ | 5,486 | $ | -1,619 | $ | - | $ | 80,319 | ||||
Year Ended December 31, 2013 | ||||||||||||||||||
Operating revenues | $ | 403,957 | $ | 181,462 | $ | 5,468 | $ | - | $ | - | $ | - | $ | 590,887 | ||||
Interdepartmental revenues | 537 | 12,629 | 42,591 | - | - | -55,757 | - | |||||||||||
Total operating revenues | 404,494 | 194,091 | 48,059 | - | - | -55,757 | 590,887 | |||||||||||
Depreciation and amortization | -25,780 | -5,898 | -7,156 | - | -4 | - | -38,838 | |||||||||||
Other operating expenses | -316,277 | -162,661 | -128 | -1 | -752 | 55,757 | -424,062 | |||||||||||
Operating income (loss) | 62,437 | 25,532 | 40,775 | -1 | -756 | - | 127,987 | |||||||||||
Other (deductions) income, net | 3,062 | 59 | - | 9,434 | -1,854 | - | 10,701 | |||||||||||
Interest (expense) income, net | -9,645 | -2,986 | -6,400 | - | 107 | - | -18,924 | |||||||||||
Income (loss) before taxes | 55,854 | 22,605 | 34,375 | 9,433 | -2,503 | - | 119,764 | |||||||||||
Income tax (provision) benefit | -19,176 | -9,168 | -13,682 | -3,796 | 963 | - | -44,859 | |||||||||||
Net income (loss) | $ | 36,678 | $ | 13,437 | $ | 20,693 | $ | 5,637 | $ | -1,540 | $ | - | $ | 74,905 | ||||
Year Ended December 31, 2012 | ||||||||||||||||||
Operating revenues | $ | 392,365 | $ | 139,727 | $ | 9,231 | $ | - | $ | - | $ | - | $ | 541,323 | ||||
Interdepartmental revenues | 487 | 12,814 | 34,714 | - | - | -48,015 | - | |||||||||||
Total operating revenues | 392,852 | 152,541 | 43,945 | - | - | -48,015 | 541,323 | |||||||||||
Depreciation and amortization | -26,031 | -5,569 | -7,107 | - | - | - | -38,707 | |||||||||||
Other operating expenses | -300,149 | -136,567 | -121 | - | -1,031 | 48,015 | -389,853 | |||||||||||
Operating income (loss) | 66,672 | 10,405 | 36,717 | - | -1,031 | - | 112,763 | |||||||||||
Other (deductions) income, net | 1,145 | 323 | - | 9,080 | -479 | - | 10,069 | |||||||||||
Interest (expense) income, net | -10,189 | -2,874 | -6,537 | - | 133 | - | -19,467 | |||||||||||
Income (loss) before taxes | 57,628 | 7,854 | 30,180 | 9,080 | -1,377 | - | 103,365 | |||||||||||
Income tax (provision) benefit | -20,906 | -2,769 | -12,113 | -3,648 | 517 | - | -38,919 | |||||||||||
Net income (loss) | $ | 36,722 | $ | 5,085 | $ | 18,067 | $ | 5,432 | $ | -860 | $ | - | $ | 64,446 | ||||
(In thousands)MGE | Electric | Gas | Non-Regulated Energy | Transmission Investment | Consolidation/ Elimination Entries | Consolidated Total | ||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||
Operating revenues | $ | 394,871 | $ | 221,741 | $ | 3,283 | $ | - | $ | - | $ | 619,895 | ||||||
Interdepartmental revenues | 487 | 8,345 | 42,692 | - | -51,524 | - | ||||||||||||
Total operating revenues | 395,358 | 230,086 | 45,975 | - | -51,524 | 619,895 | ||||||||||||
Depreciation and amortization | -26,933 | -6,308 | -7,407 | - | - | -40,648 | ||||||||||||
Other operating expenses* | -319,175 | -204,597 | -13,071 | - | 51,524 | -485,319 | ||||||||||||
Operating income* | 49,250 | 19,181 | 25,497 | - | - | 93,928 | ||||||||||||
Other (deductions) income, net* | 2,543 | -172 | - | 5,486 | - | 7,857 | ||||||||||||
Interest expense, net | -10,410 | -3,229 | -6,208 | - | - | -19,847 | ||||||||||||
Net income | 41,383 | 15,780 | 19,289 | 5,486 | - | 81,938 | ||||||||||||
Less: Net income attributable to | ||||||||||||||||||
noncontrolling interest, net of tax | - | - | - | - | -26,310 | -26,310 | ||||||||||||
Net income attributable to MGE | $ | 41,383 | $ | 15,780 | $ | 19,289 | $ | 5,486 | $ | -26,310 | $ | 55,628 | ||||||
Year Ended December 31, 2013 | ||||||||||||||||||
Operating revenues | $ | 403,980 | $ | 181,477 | $ | 5,468 | $ | - | $ | - | $ | 590,925 | ||||||
Interdepartmental revenues | 514 | 12,614 | 42,591 | - | -55,719 | - | ||||||||||||
Total operating revenues | 404,494 | 194,091 | 48,059 | - | -55,719 | 590,925 | ||||||||||||
Depreciation and amortization | -25,780 | -5,898 | -7,156 | - | - | -38,834 | ||||||||||||
Other operating expenses* | -335,059 | -171,717 | -13,810 | -1 | 55,719 | -464,868 | ||||||||||||
Operating income (loss)* | 43,655 | 16,476 | 27,093 | -1 | - | 87,223 | ||||||||||||
Other (deductions) income, net* | 2,668 | -53 | - | 5,638 | - | 8,253 | ||||||||||||
Interest expense, net | -9,645 | -2,986 | -6,400 | - | - | -19,031 | ||||||||||||
Net income | 36,678 | 13,437 | 20,693 | 5,637 | - | 76,445 | ||||||||||||
Less: net income attributable to | ||||||||||||||||||
noncontrolling interest, net of tax | - | - | - | - | -27,438 | -27,438 | ||||||||||||
Net income attributable to MGE | $ | 36,678 | $ | 13,437 | $ | 20,693 | $ | 5,637 | $ | -27,438 | $ | 49,007 | ||||||
Year Ended December 31, 2012 | ||||||||||||||||||
Operating revenues | $ | 392,365 | $ | 139,727 | $ | 9,231 | $ | - | $ | - | $ | 541,323 | ||||||
Interdepartmental revenues | 487 | 12,814 | 34,714 | - | -48,015 | - | ||||||||||||
Total operating revenues | 392,852 | 152,541 | 43,945 | - | -48,015 | 541,323 | ||||||||||||
Depreciation and amortization | -26,031 | -5,569 | -7,107 | - | - | -38,707 | ||||||||||||
Other operating expenses* | -320,701 | -139,236 | -12,234 | - | 48,015 | -424,156 | ||||||||||||
Operating income* | 46,120 | 7,736 | 24,604 | - | - | 78,460 | ||||||||||||
Other income, net* | 791 | 223 | - | 5,432 | - | 6,446 | ||||||||||||
Interest expense, net | -10,189 | -2,874 | -6,537 | - | - | -19,600 | ||||||||||||
Net income | 36,722 | 5,085 | 18,067 | 5,432 | - | 65,306 | ||||||||||||
Less: Net income attributable to | ||||||||||||||||||
noncontrolling interest, net of tax | - | - | - | - | -24,489 | -24,489 | ||||||||||||
Net income attributable to MGE | $ | 36,722 | $ | 5,085 | $ | 18,067 | $ | 5,432 | $ | -24,489 | $ | 40,817 | ||||||
*Amounts are shown net of the related tax expense, consistent with the presentation on the consolidated MGE Income Statement. | ||||||||||||||||||
The following table shows segment information for MGE Energy's and MGE's assets and capital expenditures: | ||||||||||||||||||
Utility | Consolidated | |||||||||||||||||
(In thousands) MGE Energy | Electric | Gas | Assetsnot Allocated | Nonregulated Energy | Transmission Investment | All Others | Consolidation/ Elimination Entries | Total | ||||||||||
Assets: | ||||||||||||||||||
31-Dec-14 | $ | 948,241 | $ | 308,499 | $ | 41,346 | $ | 281,410 | $ | 67,697 | $ | 441,109 | $ | -390,636 | $ | 1,697,666 | ||
31-Dec-13 | 899,257 | 265,694 | 19,853 | 288,116 | 64,504 | 431,436 | -389,800 | 1,579,060 | ||||||||||
31-Dec-12 | 888,444 | 285,468 | 18,559 | 323,216 | 61,064 | 413,291 | -403,118 | 1,586,924 | ||||||||||
Capital Expenditures: | ||||||||||||||||||
Year ended Dec. 31, 2014 | $ | 68,067 | $ | 22,104 | $ | - | $ | 2,505 | $ | - | $ | - | $ | - | $ | 92,676 | ||
Year ended Dec. 31, 2013 | 100,146 | 15,554 | - | 3,347 | - | - | - | 119,047 | ||||||||||
Year ended Dec. 31, 2012 | 81,965 | 13,812 | - | 2,658 | - | - | - | 98,435 | ||||||||||
Utility | Consolidated | |||||||||||||||||
(In thousands)MGE | Electric | Gas | Assetsnot Allocated | Nonregulated Energy | Transmission Investment | Consolidation/ Elimination Entries | Total | |||||||||||
Assets: | ||||||||||||||||||
31-Dec-14 | $ | 948,241 | $ | 308,499 | $ | 41,346 | $ | 281,360 | $ | 67,697 | $ | -6,521 | $ | 1,640,622 | ||||
31-Dec-13 | 899,257 | 265,694 | 19,853 | 288,066 | 64,504 | -6,731 | 1,530,643 | |||||||||||
31-Dec-12 | 888,444 | 285,468 | 18,559 | 323,166 | 61,064 | -23,050 | 1,553,651 | |||||||||||
Capital Expenditures: | ||||||||||||||||||
Year ended Dec. 31, 2014 | $ | 68,067 | $ | 22,104 | $ | - | $ | 2,505 | $ | - | $ | - | $ | 92,676 | ||||
Year ended Dec. 31, 2013 | 100,146 | 15,554 | - | 3,347 | - | - | 119,047 | |||||||||||
Year ended Dec. 31, 2012 | 81,965 | 13,812 | - | 2,658 | - | - | 98,435 |
Quarterly_Summary_of_Operation1
Quarterly Summary of Operations (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Quarterly Summary of Operations | (In thousands, except per share amounts) | Quarters Ended | |||||||||
2014 | March 31 | June 30 | September 30 | December 31 | |||||||
Operating revenues: | |||||||||||
Regulated electric revenues | $ | 98,852 | $ | 96,697 | $ | 112,869 | $ | 86,431 | |||
Regulated gas revenues | 110,713 | 31,218 | 21,404 | 58,385 | |||||||
Nonregulated revenues | 680 | 850 | 862 | 891 | |||||||
Total Operating Revenues | 210,245 | 128,765 | 135,135 | 145,707 | |||||||
Operating expenses | 166,274 | 104,324 | 95,015 | 116,141 | |||||||
Operating income | 43,971 | 24,441 | 40,120 | 29,566 | |||||||
Interest and other income, net | 11 | -1,320 | -2,505 | -5,780 | |||||||
Income tax provision | -16,265 | -9,034 | -14,286 | -8,600 | |||||||
Earnings on common stock | $ | 27,717 | $ | 14,087 | $ | 23,329 | $ | 15,186 | |||
Earnings per common share | $ | 0.8 | $ | 0.41 | $ | 0.67 | $ | 0.44 | |||
Dividends per share | $ | 0.272 | $ | 0.272 | $ | 0.283 | $ | 0.283 | |||
2013 | |||||||||||
Operating revenues: | |||||||||||
Regulated electric revenues | $ | 93,494 | $ | 96,846 | $ | 119,836 | $ | 93,781 | |||
Regulated gas revenues | 72,467 | 30,042 | 18,864 | 60,089 | |||||||
Nonregulated revenues | 1,276 | 1,400 | 1,399 | 1,393 | |||||||
Total Operating Revenues | 167,237 | 128,288 | 140,099 | 155,263 | |||||||
Operating expenses | 129,609 | 103,791 | 100,199 | 129,301 | |||||||
Operating income | 37,628 | 24,497 | 39,900 | 25,962 | |||||||
Interest and other income, net | -1,366 | -1,946 | -855 | -4,056 | |||||||
Income tax provision | -13,678 | -8,660 | -14,692 | -7,829 | |||||||
Earnings on common stock | $ | 22,584 | $ | 13,891 | $ | 24,353 | $ | 14,077 | |||
Earnings per common share | $ | 0.65 | $ | 0.4 | $ | 0.7 | $ | 0.41 | |||
Dividends per share | $ | 0.263 | $ | 0.263 | $ | 0.272 | $ | 0.272 | |||
Notes: | |||||||||||
• The quarterly results of operations within a year may not be comparable because of seasonal and other factors. | |||||||||||
• The sum of earnings per share of common stock for any four quarters may vary slightly from the earnings per share of common stock for the equivalent twelve-month period due to rounding. | |||||||||||
• MGE Energy's operations are based primarily on its utility subsidiary MGE. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
sqmi | |||
Receivable - Margin Account [Abstract] | |||
Receivable, margin account balance, net of collateral posted against derivative positions | $2,200,000 | $500,000 | |
Derivative liability, collateral offset | 2,200,000 | ||
Derivative asset, collateral offset | 200,000 | ||
Trade Receivables, Allowance for Doubtful Accounts, and Concentration Risk | |||
Late payment charge on upaid receivables | 1.00% | ||
Electric territory (in square miles) | 316 | ||
Gas territory (in square miles) | 1,678 | ||
Inventories | |||
Emissions allowance included in inventory | 100,000 | 100,000 | |
Renewable energy credit allowance included in inventory | 800,000 | 600,000 | |
Purchased Gas Adjustment Clause | |||
Purchased gas adjustment, over (under) collected | 1,200,000 | 1,700,000 | |
Capitalized Software Costs | |||
Capitalized software | 8,400,000 | 9,000,000 | |
Capitalized software amortization | 1,600,000 | 1,500,000 | 1,300,000 |
Impairment of Long-Lived Assets | |||
Impairment of long-lived assets | 0 | 0 | 0 |
Excise taxes | |||
License fee tax rate, electric, retail sales | 3.19% | ||
License fee tax rate, electric, resale by purchaser | 1.59% | ||
License fee tax rate, natural gas | 0.97% | ||
License fee tax expense | $14,600,000 | $13,800,000 | $13,500,000 |
Treasury Stock | |||
Treasury stock outstanding (in shares) | 0 | 0 | |
Minimum [Member] | Capitalized Software [Member] | |||
Capitalized Software Costs | |||
Property, plant, and equipment, useful life | 5 years | ||
Maximum [Member] | Capitalized Software [Member] | |||
Capitalized Software Costs | |||
Property, plant, and equipment, useful life | 10 years | ||
PSCW [Member] | |||
Allowance for Funds Used During Construction | |||
Authorized AFUDC rate | 50.00% | 50.00% | 50.00% |
Rate at which AFUDC was capitalized | 8.21% | 8.21% | 8.36% |
Columbia Environmental Project [Member] | PSCW [Member] | |||
Allowance for Funds Used During Construction | |||
Authorized AFUDC rate | 100.00% | 50.00% | 100.00% |
Electric [Member] | |||
Property, Plant, and Equiptment | |||
Composite straight-line depreciation rates | 2.60% | 2.70% | 2.90% |
Gas [Member] | |||
Property, Plant, and Equiptment | |||
Composite straight-line depreciation rates | 1.70% | 1.70% | 1.70% |
Non Regulated Energy [Member] | |||
Property, Plant, and Equiptment | |||
Composite straight-line depreciation rates | 2.40% | 2.30% | 2.30% |
MGE Power Elm Road [Member] | |||
Principles of Consolidation | |||
Ownership percentage by parent | 100.00% | ||
MGE Power West Campus [Member] | |||
Principles of Consolidation | |||
Ownership percentage by parent | 100.00% |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Significant Balance Sheet Accounts Related to Interests in Variable Interest Entities | ||||
Property, plant, and equipment, net | $1,189,077,000 | $1,018,809,000 | ||
Construction work in progress | 19,029,000 | 141,415,000 | ||
Deferred income tax asset - current | 3,482,000 | 0 | ||
Accrued interest and taxes | 5,086,000 | 5,661,000 | ||
Other Variable Interest Entities | ||||
Other variable interest entities, purchase power agreement, plant capacity (in MW) | 61 | 61 | ||
MGE Power Elm Road [Member] | ||||
Significant Balance Sheet Accounts Related to Interests in Variable Interest Entities | ||||
Property, plant, and equipment, net | 179,620,000 | 182,657,000 | ||
Construction work in progress | 1,976,000 | 1,115,000 | ||
Affiliate receivables, current and noncurrent | 1,742,000 | 0 | ||
Deferred income tax asset - current | 0 | 219,000 | ||
Deferred income taxes | 40,044,000 | 34,141,000 | ||
Long-term debt, gross, current and noncurrent | 67,972,000 | 70,639,000 | ||
Noncontrolling interest | 72,537,000 | [1] | 69,876,000 | [1] |
Total carrying costs | 62,500,000 | |||
Total capitalized interest | 17,000,000 | |||
Total capitalized cost of equity | 45,500,000 | |||
Carrying cost rate recovery period | 6 years | |||
MGE Power Elm Road [Member] | Minimum [Member] | ||||
Significant Balance Sheet Accounts Related to Interests in Variable Interest Entities | ||||
Debt service coverage ratio | 1.25 | |||
MGE Power West Campus [Member] | ||||
Significant Balance Sheet Accounts Related to Interests in Variable Interest Entities | ||||
Property, plant, and equipment, net | 86,763,000 | 89,564,000 | ||
Affiliate receivables, current and noncurrent | 5,862,000 | 6,767,000 | ||
Accrued interest and taxes | 569,000 | 4,888,000 | ||
Deferred income taxes | 23,813,000 | 23,154,000 | ||
Long-term debt, gross, current and noncurrent | 48,218,000 | 49,653,000 | ||
Noncontrolling interest | 30,755,000 | [1] | 29,089,000 | [1] |
Carrying costs recovered | $12,100,000 | |||
Carrying cost rate recovery period | 10 years | |||
MGE Power West Campus [Member] | Minimum [Member] | ||||
Significant Balance Sheet Accounts Related to Interests in Variable Interest Entities | ||||
Debt service coverage ratio | 1.25 | |||
MGE Power West Campus [Member] | Maximum [Member] | ||||
Significant Balance Sheet Accounts Related to Interests in Variable Interest Entities | ||||
Debt to total capitalization ratio | 0.65 | |||
[1] | MGE Power Elm Road and MGE Power West Campus are not subsidiaries of MGE; however, they have been consolidated in the consolidated financial statements of MGE (see FootnoteB 2). MGE Power Elm Road and MGE Power West Campus are100% owned by MGE Power, and MGE Power is 100% owned by MGEB Energy. MGEB Energy's proportionate share of the equity and net income (through its wholly owned subsidiary MGE Power) of MGE Power Elm Road and MGE Power West Campus is classified within the MGE financial statements as noncontrolling interest. |
Property_Plant_and_Equipment_D
Property, Plant, and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, net | $1,189,077 | $1,018,809 | ||
Construction work in progress | 19,029 | 141,415 | ||
Total property, plant, and equipment | 1,208,106 | 1,160,224 | ||
First Mortgage Bonds [Member] | 7.70%, 2028 Series | ||||
Plant related debt items | ||||
Long-term debt, gross | 1,200 | [1] | 1,200 | [1] |
Regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 1,480,928 | 1,304,984 | ||
Less: Accumulated depreciation and amortization | 559,615 | 560,066 | ||
In-service utility plant, net | 921,313 | 744,918 | ||
Construction work in progress | 16,988 | 140,301 | ||
Electric [Member] | Regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 1,110,953 | 953,290 | ||
Gas [Member] | Regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 369,975 | 351,694 | ||
Non Regulated Energy [Member] | Non-regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 313,152 | 311,742 | ||
Less: Accumulated depreciation and amortization | 45,388 | 37,851 | ||
In-service utility plant, net | 267,764 | 273,891 | ||
Construction work in progress | 2,041 | 1,114 | ||
MGE [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, net | 1,188,351 | 1,017,877 | ||
Construction work in progress | 19,029 | 141,415 | ||
Total property, plant, and equipment | 1,207,380 | 1,159,292 | ||
MGE [Member] | First Mortgage Bonds [Member] | 7.70%, 2028 Series | ||||
Plant related debt items | ||||
Long-term debt, gross | 1,200 | [1] | 1,200 | [1] |
MGE [Member] | Regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 1,480,957 | 1,305,012 | ||
Less: Accumulated depreciation and amortization | 559,615 | 560,066 | ||
In-service utility plant, net | 921,342 | 744,946 | ||
Construction work in progress | 16,988 | 140,301 | ||
MGE [Member] | Electric [Member] | Regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 1,110,970 | 953,307 | ||
MGE [Member] | Gas [Member] | Regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 369,987 | 351,705 | ||
MGE [Member] | Non Regulated Energy [Member] | Non-regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 312,314 | 310,745 | ||
Less: Accumulated depreciation and amortization | 45,305 | 37,814 | ||
In-service utility plant, net | 267,009 | 272,931 | ||
Construction work in progress | $2,041 | $1,114 | ||
[1] | MGE's utility plant is subject to the lien of its Indenture of Mortgage and Deed of Trust, under which its first mortgage bonds are issued. The Mortgage Indenture provides that dividends or any other distribution or purchase of shares may not be made if the aggregate amount thereof since December 31, 1945 would exceed the earned surplus (retained earnings) accumulated subsequent to December 31, 1945. As of December 31,2014, approximately $334.8 million was available for the payment of dividends under this covenant. |
Investments_Details1
Investments (Details-1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale securities: | |||
Cost basis | $1,964 | $1,736 | |
Gross unrealized gains | 765 | 629 | |
Fair Value | 2,729 | 2,365 | |
Equity method investments: | |||
Equity method investments | 68,872 | 65,587 | |
Other Investments | 159 | 0 | |
Total investments | 71,760 | 67,952 | |
Results of Investment Liquidation [Abstract] | |||
Proceeds from sale of investments | 38 | 39 | 0 |
Gain (loss) on sale of investments | 21 | 2 | 0 |
ATC [Member] | |||
Equity method investments: | |||
Equity method investments | 67,673 | 64,488 | |
Other Equity Method Investments [Member] | |||
Equity method investments: | |||
Equity method investments | 1,199 | 1,099 | |
MGE [Member] | |||
Available-for-sale securities: | |||
Cost basis | 489 | 490 | |
Gross unrealized gains | 240 | 321 | |
Fair Value | 729 | 811 | |
Equity method investments: | |||
Equity method investments | 67,673 | 64,488 | |
Other Investments | 0 | 0 | |
Total investments | 68,402 | 65,299 | |
Results of Investment Liquidation [Abstract] | |||
Proceeds from sale of investments | 0 | 16 | 0 |
Gain (loss) on sale of investments | 0 | -3 | 0 |
MGE [Member] | ATC [Member] | |||
Equity method investments: | |||
Equity method investments | 67,673 | 64,488 | |
MGE [Member] | Other Equity Method Investments [Member] | |||
Equity method investments: | |||
Equity method investments | $0 | $0 |
Investments_Details2
Investments (Details-2) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 30, 2015 |
Schedule Of Equity Method Investments [Line Items] | ||||
Equity in earnings in ATC | $9,150 | $9,434 | $9,079 | |
Dividend income from ATC | 7,740 | 7,404 | 7,146 | |
Contributions to investments | 2,185 | 1,660 | 2,419 | |
MGE Transco [Member] | ATC [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity in earnings in ATC | 9,150 | 9,434 | 9,079 | |
Dividend income from ATC | 7,740 | 7,404 | 7,146 | |
Contributions to investments | 1,775 | 1,420 | 2,131 | |
MGE Transco ownership interest in ATC | 3.60% | 3.60% | ||
MGE Transco [Member] | ATC [Member] | Subsequent Event [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Contributions to investments | $200 |
Investments_Details3
Investments (Details-3) (ATC [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ATC [Member] | |||
Equity method investment summarized income statement [Abstract] | |||
Operating revenues | $635,033 | $626,336 | $603,254 |
Operating expenses | -307,451 | -295,069 | -280,999 |
Other income (expense) | 117 | 831 | -2,533 |
Interest expense, net | -88,970 | -84,484 | -82,296 |
Earnings before members' income taxes | 238,729 | 247,614 | 237,426 |
Equity method investment balance sheet assets [Abstract] | |||
Current assets | 66,410 | 80,715 | 63,134 |
Noncurrent assets | 3,728,675 | 3,509,517 | 3,274,704 |
Total assets | 3,795,085 | 3,590,232 | 3,337,838 |
Equity method investment balance sheet liabilities [Abstract] | |||
Current liabilities | 313,065 | 381,467 | 251,541 |
Long-term debt | 1,701,000 | 1,550,000 | 1,550,000 |
Other noncurrent liabilities | 163,818 | 126,167 | 95,829 |
Members' equity | 1,617,202 | 1,532,598 | 1,440,468 |
Total members' equity and liabilities | $3,795,085 | $3,590,232 | $3,337,838 |
Joint_Plant_Ownership_Details
Joint Plant Ownership (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
MW | |||
Columbia Units [Member] | |||
Jointly Owned Plants, Net Plant Ownership [Abstract] | |||
Plant | $268,597,000 | $123,097,000 | |
Accumulated depreciation | -80,645,000 | -78,880,000 | |
Property, plant, and equipment, net | 187,952,000 | 44,217,000 | |
Construction work in progress | 6,941,000 | 120,858,000 | |
Total property, plant, and equipment | 194,893,000 | 165,075,000 | |
Columbia Units [Member] | MGE [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Jointly owned utility plant, proportion of total net summer generating capability | 31.00% | ||
Jointly owned utility plant, plant capacity (in MW) | 239 | ||
Jointly owned utility plant, ownership interest | 22.00% | ||
Jointly owned utility plant, fuel, operating, and maintenance expense | 28,100,000 | 37,500,000 | 36,300,000 |
Elm Road Units [Member] | MGE [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Jointly owned utility plant, fuel, operating, and maintenance expense | 20,300,000 | 13,400,000 | 13,200,000 |
Elm Road Units [Member] | MGE Power Elm Road [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Jointly owned utility plant, proportion of total net summer generating capability | 14.00% | ||
Jointly owned utility plant, proportion of total net summer generating capability, plant capacity (in MW) | 106 | ||
Jointly owned utility plant, number of operating units | 2 | ||
Jointly Owned Plants, Net Plant Ownership [Abstract] | |||
Plant | 199,582,000 | 198,198,000 | |
Accumulated depreciation | -19,962,000 | -15,541,000 | |
Property, plant, and equipment, net | 179,620,000 | 182,657,000 | |
Construction work in progress | 1,976,000 | 1,115,000 | |
Total property, plant, and equipment | 181,596,000 | 183,772,000 | |
Elm Road Unit 1 [Member] | MGE Power Elm Road [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Jointly owned utility plant, plant capacity (in MW) | 615 | ||
Jointly owned utility plant, ownership interest | 8.33% | ||
Elm Road Unit 2 [Member] | MGE Power Elm Road [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Jointly owned utility plant, plant capacity (in MW) | 615 | ||
Jointly owned utility plant, ownership interest | 8.33% | ||
West Campus [Member] | UW [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Jointly owned utility plant, ownership interest | 45.00% | ||
Jointly owned utility plant, fuel, operating, and maintenance expense | 2,800,000 | 4,900,000 | 4,900,000 |
West Campus [Member] | MGE Power West Campus [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Jointly owned utility plant, ownership interest | 55.00% | ||
Jointly Owned Plants, Net Plant Ownership [Abstract] | |||
Plant | 111,453,000 | 111,268,000 | |
Accumulated depreciation | -24,691,000 | -21,704,000 | |
Property, plant, and equipment, net | $86,762,000 | $89,564,000 |
Regulatory_Assets_and_Liabilit2
Regulatory Assets and Liabilities (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Regulatory Assets [Line Items] | |||
Regulatory Assets | $165,183 | $113,543 | |
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 22,715 | 33,330 | |
Debt make-whole premium | 0 | 6,757 | 0 |
Conservation Costs Regulatory Liability [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 680 | 455 | |
Deferred Fuel Savings [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 755 | 13,386 | |
Elm Road Regulatory Liability [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 1,497 | 607 | |
Income Taxes [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 1,794 | 2,082 | |
Non-ARO Removal Cost [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 16,129 | 15,182 | |
Renewable Energy Credits [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 753 | 574 | |
Other Regulatory Liability [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 1,107 | 1,044 | |
Asset Retirement Obligation [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 4,532 | 4,863 | |
Debt Related Costs [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 11,133 | 11,786 | |
Derivatives [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 54,998 | 63,893 | |
Environmental Costs [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 700 | 920 | |
Tax Recovery AFUDC Equity [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 8,821 | 6,956 | |
Unfunded Pension and Other Postretirement Plans Costs [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 84,551 | 24,591 | |
Other Regulatory Asset [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | $448 | $534 |
Common_Equity_Details
Common Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 20, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Class of Stock [Line Items] | ||||||||||||
Stock split declared December 20, 2013, ratio (3:2) | 1.5 | |||||||||||
Common stock dividends declared | $38,429 | $37,107 | $35,951 | |||||||||
Common stock dividends declared (in dollars per share) | $0.28 | $0.28 | $0.27 | $0.27 | $0.27 | $0.27 | $0.26 | $0.26 | $1.11 | $1.07 | $1.04 | |
MGE [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Cash dividends paid to parent by MGE | $26,500 | $25,000 | $20,404 |
Noncontrolling_Interest_Detail
Noncontrolling Interest (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
MGE [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interest on balance sheet | $125,689 | $118,963 | ||||
Net income attributable to noncontrolling interest, net of tax | 26,310 | 27,438 | 24,489 | |||
MGE Transco [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interest on balance sheet | 22,397 | [1] | 19,998 | [1] | ||
Net income attributable to noncontrolling interest, net of tax | 2,484 | [1] | 2,408 | [1] | 2,146 | [1] |
MGE Power [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Ownership percentage by parent | 100.00% | |||||
MGE Power West Campus [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Ownership percentage by parent | 100.00% | |||||
Noncontrolling interest on balance sheet | 30,755 | [2] | 29,089 | [2] | ||
Net income attributable to noncontrolling interest, net of tax | 7,666 | [2] | 7,657 | [2] | 7,506 | [2] |
MGE Power Elm Road [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Ownership percentage by parent | 100.00% | |||||
Noncontrolling interest on balance sheet | 72,537 | [2] | 69,876 | [2] | ||
Net income attributable to noncontrolling interest, net of tax | $16,160 | [2] | $17,373 | [2] | $14,837 | [2] |
[1] | At December 31,2014, MGE is the majority owner, and MGEB Energy is the minority owner, of MGE Transco. MGEB Energy's proportionate share of the equity and net income of MGE Transco is classified within the MGE financial statements as noncontrolling interest. | |||||
[2] | MGE Power Elm Road and MGE Power West Campus are not subsidiaries of MGE; however, they have been consolidated in the consolidated financial statements of MGE (see FootnoteB 2). MGE Power Elm Road and MGE Power West Campus are100% owned by MGE Power, and MGE Power is 100% owned by MGEB Energy. MGEB Energy's proportionate share of the equity and net income (through its wholly owned subsidiary MGE Power) of MGE Power Elm Road and MGE Power West Campus is classified within the MGE financial statements as noncontrolling interest. |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Debt Instrument [Line Items] | ||||
Long-term debt due within one year | ($4,182,000) | ($4,102,000) | ||
Unamortized discount | -252,000 | -277,000 | ||
Total Long-Term Debt | 395,256,000 | 399,414,000 | ||
Long-Term Debt Maturities [Abstract] | ||||
Long term debt maturities in 2015 | 4,182,000 | |||
Long term debt maturities in 2016 | 4,268,000 | |||
Long term debt maturities in 2017 | 34,358,000 | |||
Long term debt maturities in 2018 | 24,452,000 | |||
Long term debt maturities in 2019 | 4,553,000 | |||
Long term debt maturities in future years | 327,877,000 | |||
Total | 399,690,000 | |||
First Mortgage Bonds [Member] | 7.70%, 2028 Series | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 1,200,000 | [1] | 1,200,000 | [1] |
Interest rate | 7.70% | [1] | 7.70% | [1] |
Debt covenant, allowable amount available for payment of dividends | 334,800,000 | |||
Tax Exempt Debt [Member] | 3.45%, 2027 Series, Industrial Development Revenue Bonds | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 19,300,000 | 19,300,000 | ||
Interest rate | 3.45% | 3.45% | ||
Medium-Term Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 100,000,000 | [2] | 100,000,000 | [2] |
Medium-Term Notes [Member] | 5.25%, due 2017 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 30,000,000 | [2] | 30,000,000 | [2] |
Interest rate | 5.25% | [2] | 5.25% | [2] |
Medium-Term Notes [Member] | 6.12%, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 20,000,000 | [2] | 20,000,000 | [2] |
Interest rate | 6.12% | [2] | 6.12% | [2] |
Medium-Term Notes [Member] | 7.12%, due 2032 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 25,000,000 | [2] | 25,000,000 | [2] |
Interest rate | 7.12% | [2] | 7.12% | [2] |
Medium-Term Notes [Member] | 6.247%, due 2037 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 25,000,000 | [2] | 25,000,000 | [2] |
Interest rate | 6.25% | [2] | 6.25% | [2] |
Other Long-Term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 279,190,000 | [3] | 283,293,000 | [3] |
Other Long-Term Debt [Member] | 5.59%, due 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 20,000,000 | [3],[4] | 20,000,000 | [3],[4] |
Interest rate | 5.59% | [3],[4] | 5.59% | [3],[4] |
Other Long-Term Debt [Member] | 5.59%, due 2018 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
Other Long-Term Debt [Member] | 5.59%, due 2018 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
Other Long-Term Debt [Member] | 3.38%, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 15,000,000 | [3],[4] | 15,000,000 | [3],[4] |
Interest rate | 3.38% | [3],[4] | 3.38% | [3],[4] |
Other Long-Term Debt [Member] | 3.38%, due 2020 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
Other Long-Term Debt [Member] | 3.38%, due 2020 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
Other Long-Term Debt [Member] | 3.09%, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 30,000,000 | [3],[4] | 30,000,000 | [3],[4] |
Interest rate | 3.09% | [3],[4] | 3.09% | [3],[4] |
Other Long-Term Debt [Member] | 3.09%, due 2023 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
Other Long-Term Debt [Member] | 3.09%, due 2023 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
Other Long-Term Debt [Member] | 3.29%, due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 15,000,000 | [3],[4] | 15,000,000 | [3],[4] |
Interest rate | 3.29% | [3],[4] | 3.29% | [3],[4] |
Other Long-Term Debt [Member] | 3.29%, due 2026 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
Other Long-Term Debt [Member] | 3.29%, due 2026 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
Other Long-Term Debt [Member] | 5.68%, due 2033 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 28,954,000 | [3],[5] | 29,797,000 | [3],[5] |
Interest rate | 5.68% | [3],[5] | 5.68% | [3],[5] |
Other Long-Term Debt [Member] | 5.19%, due 2033 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 19,264,000 | [3],[5] | 19,857,000 | [3],[5] |
Interest rate | 5.19% | [3],[5] | 5.19% | [3],[5] |
Other Long-Term Debt [Member] | 5.26%, due 2040 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 15,000,000 | [3],[4] | 15,000,000 | [3],[4] |
Interest rate | 5.26% | [3],[4] | 5.26% | [3],[4] |
Other Long-Term Debt [Member] | 5.26%, due 2040 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
Other Long-Term Debt [Member] | 5.26%, due 2040 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
Other Long-Term Debt [Member] | 5.04%, due 2040 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 41,805,000 | [3],[6] | 43,472,000 | [3],[6] |
Interest rate | 5.04% | [3],[6] | 5.04% | [3],[6] |
Other Long-Term Debt [Member] | 4.74%, due 2041 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 26,167,000 | [3],[6] | 27,167,000 | [3],[6] |
Interest rate | 4.74% | [3],[6] | 4.74% | [3],[6] |
Other Long-Term Debt [Member] | 4.38%, due 2042 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 28,000,000 | [3],[4] | 28,000,000 | [3],[4] |
Interest rate | 4.38% | [3],[4] | 4.38% | [3],[4] |
Other Long-Term Debt [Member] | 4.38%, due 2042 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
Other Long-Term Debt [Member] | 4.38%, due 2042 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
Other Long-Term Debt [Member] | 4.42%, due 2043 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 20,000,000 | [3],[4] | 20,000,000 | [3],[4] |
Interest rate | 4.42% | [3],[4] | 4.42% | [3],[4] |
Other Long-Term Debt [Member] | 4.42%, due 2043 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
Other Long-Term Debt [Member] | 4.42%, due 2043 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
Other Long-Term Debt [Member] | 4.47%, due 2048 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 20,000,000 | [3],[4] | 20,000,000 | [3],[4] |
Interest rate | 4.47% | [3],[4] | 4.47% | [3],[4] |
Other Long-Term Debt [Member] | 4.47%, due 2048 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
Other Long-Term Debt [Member] | 4.47%, due 2048 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt due within one year | -4,182,000 | -4,102,000 | ||
Unamortized discount | -252,000 | -277,000 | ||
Total Long-Term Debt | 395,256,000 | 399,414,000 | ||
Long-Term Debt Maturities [Abstract] | ||||
Long term debt maturities in 2015 | 4,182,000 | [7] | ||
Long term debt maturities in 2016 | 4,268,000 | [7] | ||
Long term debt maturities in 2017 | 34,358,000 | [7] | ||
Long term debt maturities in 2018 | 24,452,000 | [7] | ||
Long term debt maturities in 2019 | 4,553,000 | [7] | ||
Long term debt maturities in future years | 327,877,000 | [7] | ||
Total | 399,690,000 | [7] | ||
MGE [Member] | First Mortgage Bonds [Member] | 7.70%, 2028 Series | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 1,200,000 | [1] | 1,200,000 | [1] |
Interest rate | 7.70% | [1] | 7.70% | [1] |
Debt covenant, allowable amount available for payment of dividends | 334,800,000 | |||
MGE [Member] | Tax Exempt Debt [Member] | 3.45%, 2027 Series, Industrial Development Revenue Bonds | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 19,300,000 | 19,300,000 | ||
Interest rate | 3.45% | 3.45% | ||
MGE [Member] | Medium-Term Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 100,000,000 | [2] | 100,000,000 | [2] |
MGE [Member] | Medium-Term Notes [Member] | 5.25%, due 2017 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 30,000,000 | [2] | 30,000,000 | [2] |
Interest rate | 5.25% | [2] | 5.25% | [2] |
MGE [Member] | Medium-Term Notes [Member] | 6.12%, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 20,000,000 | [2] | 20,000,000 | [2] |
Interest rate | 6.12% | [2] | 6.12% | [2] |
MGE [Member] | Medium-Term Notes [Member] | 7.12%, due 2032 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 25,000,000 | [2] | 25,000,000 | [2] |
Interest rate | 7.12% | [2] | 7.12% | [2] |
MGE [Member] | Medium-Term Notes [Member] | 6.247%, due 2037 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 25,000,000 | [2] | 25,000,000 | [2] |
Interest rate | 6.25% | [2] | 6.25% | [2] |
MGE [Member] | Other Long-Term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 279,190,000 | [3] | 283,293,000 | [3] |
MGE [Member] | Other Long-Term Debt [Member] | 5.59%, due 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 20,000,000 | [3],[4] | 20,000,000 | [3],[4] |
Interest rate | 5.59% | [3],[4] | 5.59% | [3],[4] |
MGE [Member] | Other Long-Term Debt [Member] | 5.59%, due 2018 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
MGE [Member] | Other Long-Term Debt [Member] | 5.59%, due 2018 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE [Member] | Other Long-Term Debt [Member] | 3.38%, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 15,000,000 | [3],[4] | 15,000,000 | [3],[4] |
Interest rate | 3.38% | [3],[4] | 3.38% | [3],[4] |
MGE [Member] | Other Long-Term Debt [Member] | 3.38%, due 2020 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
MGE [Member] | Other Long-Term Debt [Member] | 3.38%, due 2020 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE [Member] | Other Long-Term Debt [Member] | 3.09%, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 30,000,000 | [3],[4] | 30,000,000 | [3],[4] |
Interest rate | 3.09% | [3],[4] | 3.09% | [3],[4] |
MGE [Member] | Other Long-Term Debt [Member] | 3.09%, due 2023 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
MGE [Member] | Other Long-Term Debt [Member] | 3.09%, due 2023 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE [Member] | Other Long-Term Debt [Member] | 3.29%, due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 15,000,000 | [3],[4] | 15,000,000 | [3],[4] |
Interest rate | 3.29% | [3],[4] | 3.29% | [3],[4] |
MGE [Member] | Other Long-Term Debt [Member] | 3.29%, due 2026 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
MGE [Member] | Other Long-Term Debt [Member] | 3.29%, due 2026 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE [Member] | Other Long-Term Debt [Member] | 5.68%, due 2033 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 28,954,000 | [3],[5] | 29,797,000 | [3],[5] |
Interest rate | 5.68% | [3],[5] | 5.68% | [3],[5] |
MGE [Member] | Other Long-Term Debt [Member] | 5.19%, due 2033 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 19,264,000 | [3],[5] | 19,857,000 | [3],[5] |
Interest rate | 5.19% | [3],[5] | 5.19% | [3],[5] |
MGE [Member] | Other Long-Term Debt [Member] | 5.26%, due 2040 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 15,000,000 | [3],[4] | 15,000,000 | [3],[4] |
Interest rate | 5.26% | [3],[4] | 5.26% | [3],[4] |
MGE [Member] | Other Long-Term Debt [Member] | 5.26%, due 2040 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
MGE [Member] | Other Long-Term Debt [Member] | 5.26%, due 2040 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE [Member] | Other Long-Term Debt [Member] | 5.04%, due 2040 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 41,805,000 | [3],[6] | 43,472,000 | [3],[6] |
Interest rate | 5.04% | [3],[6] | 5.04% | [3],[6] |
MGE [Member] | Other Long-Term Debt [Member] | 4.74%, due 2041 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 26,167,000 | [3],[6] | 27,167,000 | [3],[6] |
Interest rate | 4.74% | [3],[6] | 4.74% | [3],[6] |
MGE [Member] | Other Long-Term Debt [Member] | 4.38%, due 2042 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 28,000,000 | [3],[4] | 28,000,000 | [3],[4] |
Interest rate | 4.38% | [3],[4] | 4.38% | [3],[4] |
MGE [Member] | Other Long-Term Debt [Member] | 4.38%, due 2042 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
MGE [Member] | Other Long-Term Debt [Member] | 4.38%, due 2042 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE [Member] | Other Long-Term Debt [Member] | 4.42%, due 2043 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 20,000,000 | [3],[4] | 20,000,000 | [3],[4] |
Interest rate | 4.42% | [3],[4] | 4.42% | [3],[4] |
MGE [Member] | Other Long-Term Debt [Member] | 4.42%, due 2043 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
MGE [Member] | Other Long-Term Debt [Member] | 4.42%, due 2043 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE [Member] | Other Long-Term Debt [Member] | 4.47%, due 2048 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 20,000,000 | [3],[4] | 20,000,000 | [3],[4] |
Interest rate | 4.47% | [3],[4] | 4.47% | [3],[4] |
MGE [Member] | Other Long-Term Debt [Member] | 4.47%, due 2048 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||
Priority debt to assets ratio | 0.2 | |||
MGE [Member] | Other Long-Term Debt [Member] | 4.47%, due 2048 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE Power Elm Road [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 67,972,000 | 70,639,000 | ||
MGE Power Elm Road [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt service coverage ratio | 1.25 | |||
MGE Power Elm Road [Member] | Other Long-Term Debt [Member] | 5.04%, due 2040 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt service coverage ratio | 1.25 | |||
MGE Power Elm Road [Member] | Other Long-Term Debt [Member] | 4.74%, due 2041 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt service coverage ratio | 1.25 | |||
MGE Power West Campus [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $48,218,000 | $49,653,000 | ||
MGE Power West Campus [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt service coverage ratio | 1.25 | |||
MGE Power West Campus [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE Power West Campus [Member] | Other Long-Term Debt [Member] | 5.68%, due 2033 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt service coverage ratio | 1.25 | |||
MGE Power West Campus [Member] | Other Long-Term Debt [Member] | 5.68%, due 2033 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE Power West Campus [Member] | Other Long-Term Debt [Member] | 5.19%, due 2033 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt service coverage ratio | 1.25 | |||
MGE Power West Campus [Member] | Other Long-Term Debt [Member] | 5.19%, due 2033 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
[1] | MGE's utility plant is subject to the lien of its Indenture of Mortgage and Deed of Trust, under which its first mortgage bonds are issued. The Mortgage Indenture provides that dividends or any other distribution or purchase of shares may not be made if the aggregate amount thereof since December 31, 1945 would exceed the earned surplus (retained earnings) accumulated subsequent to December 31, 1945. As of December 31,2014, approximately $334.8 million was available for the payment of dividends under this covenant. | |||
[2] | The indenture under which MGE's Medium-Term notes are issued provides that those notes will be entitled to be equally and ratably secured in the event that MGE issues any additional first mortgage bonds. | |||
[3] | Unsecured notes issued pursuant to various Note Purchase Agreements with one or more purchasers. The notes are not issued under, or governed by, MGEbs Indenture dated as of September 1, 1998, which governs MGEbs Medium-Term Notes. | |||
[4] | Issued by MGE. Under that Note Purchase Agreement: (i) note holders have the right to require MGE to repurchase their notes at par in the event of an acquisition of beneficial ownership of 30% or more of the outstanding voting stock of MGEB Energy, (ii) MGE must maintain a ratio of its consolidated indebtedness to consolidated total capitalization not to exceed a maximum of 65%, and (iii) MGE cannot issue "Priority Debt" in an amount exceeding 20% of its consolidated assets. Priority Debt is defined as any indebtedness of MGE secured by liens other than specified liens permitted by the Note Purchase Agreement and certain unsecured indebtedness of certain subsidiaries. As of December 31, 2014, MGE is in compliance with the covenant requirements. | |||
[5] | Issued by MGE Power West Campus. The Note Purchase Agreements require it to maintain a projected debt service coverage ratio of not less than 1.25 to 1.00, and debt to total capitalization ratio of not more than 0.65 to 1.00. The notes are secured by a collateral assignment of lease payments that MGE is making to MGE Power West Campus for use of its ownership interest in the West Campus Cogeneration Facility pursuant to a long-term lease.As of December 31, 2014, MGE Power West Campus is in compliance with the covenant requirements. | |||
[6] | Issued by MGE Power Elm Road. The Note Purchase Agreement requires MGE Power Elm Road to maintain a projected and actual debt service coverage ratio at the end of any calendar quarter of not less than 1.25 to 1.00 for the trailing 12-month period. The notes are secured by a collateral assignment of lease payments that MGE is making to MGE Power Elm Road for use of its ownership interest in the Elm Road Units pursuant to long-term leases.As of December 31, 2014, MGE Power Elm Road is in compliance with the covenant requirements. | |||
[7] | Includes $48.2 million for MGE Power West Campusand $68.0 million for MGE Power Elm Road, all of which are consolidated with MGE's debt (see FootnoteB 2 for further information). |
Notes_Payable_to_Banks_Commerc2
Notes Payable to Banks, Commercial Paper, and Lines of Credit (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Short-term Debt [Line Items] | ||||||
Short-term debt outstanding | $7,000,000 | [1] | $0 | [1] | $0 | [1] |
Weighted-average interest rate | 0.20% | [1] | 0.00% | [1] | 0.00% | [1] |
Maximum short-term borrowings | 9,000,000 | [1] | 32,000,000 | [1] | 16,000,000 | [1] |
Average short-term borrowings | 182,000 | [1] | 6,992,000 | [1] | 1,154,000 | [1] |
Weighted-average interest rate during the year | 0.24% | [1] | 0.18% | [1] | 0.17% | [1] |
Line of Credit [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Available lines of credit | 150,000,000 | [1] | 150,000,000 | [1] | 115,000,000 | [1] |
MGE [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Short-term debt outstanding | 7,000,000 | 0 | 0 | |||
Weighted-average interest rate | 0.20% | 0.00% | 0.00% | |||
Maximum short-term borrowings | 9,000,000 | 32,000,000 | 16,000,000 | |||
Average short-term borrowings | 182,000 | 6,992,000 | 1,154,000 | |||
Weighted-average interest rate during the year | 0.24% | 0.18% | 0.17% | |||
MGE [Member] | Line of Credit [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Available lines of credit | 100,000,000 | 100,000,000 | 75,000,000 | |||
MGE [Member] | Line of Credit [Member] | MGE $100 million unsecured committed revolving line of credit | ||||||
Short-term Debt [Line Items] | ||||||
Available lines of credit | 100,000,000 | |||||
Line of credit, borrowings outstanding | 0 | |||||
Debt covenant, required parent company ownership of MGE | 100.00% | |||||
MGE [Member] | Line of Credit [Member] | MGE $100 million unsecured committed revolving line of credit | Minimum [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||||
MGE [Member] | Line of Credit [Member] | MGE $100 million unsecured committed revolving line of credit | Maximum [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Debt to total capitalization ratio | 0.65 | |||||
MGE Energy [Member] | Line of Credit [Member] | MGE Energy $50 million unsecured commiteed revolving line of credit | ||||||
Short-term Debt [Line Items] | ||||||
Available lines of credit | 50,000,000 | |||||
Line of credit, borrowings outstanding | $0 | |||||
Debt covenant, required parent company ownership of MGE | 100.00% | |||||
MGE Energy [Member] | Line of Credit [Member] | MGE Energy $50 million unsecured commiteed revolving line of credit | Minimum [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Debt covenant, ownership interest by outside party resulting in repurchase of notes at par value | 30.00% | |||||
MGE Energy [Member] | Line of Credit [Member] | MGE Energy $50 million unsecured commiteed revolving line of credit | Maximum [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Debt to total capitalization ratio | 0.65 | |||||
[1] | MGE Energy short-term borrowings include MGE Energy and MGE lines of credit and MGE commercial paper. |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details-1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Carrying Amount [Member] | ||||
Assets: | ||||
Cash and cash equivalents | $65,755 | $68,813 | ||
Liabilities: | ||||
Short-term debt - commercial paper | 7,000 | 0 | ||
Long-Term debt | 399,690 | [1] | 403,793 | [1] |
Fair Value [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 65,755 | 68,813 | ||
Liabilities: | ||||
Short-term debt - commercial paper | 7,000 | 0 | ||
Long-Term debt | 457,420 | [1] | 432,010 | [1] |
MGE [Member] | Carrying Amount [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 4,562 | 14,808 | ||
Liabilities: | ||||
Short-term debt - commercial paper | 7,000 | 0 | ||
Long-Term debt | 399,690 | [1] | 403,793 | [1] |
MGE [Member] | Fair Value [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 4,562 | 14,808 | ||
Liabilities: | ||||
Short-term debt - commercial paper | 7,000 | 0 | ||
Long-Term debt | $457,420 | [1] | $432,010 | [1] |
[1] | *Includes long-term debt due within one year. |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details-2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Available-for-sale securities | $2,729 | $2,365 | ||
Derivative asset, collateral offset | 200 | |||
Liabilities: | ||||
Derivative liability, collateral offset | 2,200 | |||
Recurring [Member] | ||||
Assets: | ||||
Derivative assets, net | 642 | 1,787 | [1] | |
Total Assets | 1,569 | 2,579 | ||
Liabilities: | ||||
Derivative liabilities, net | 55,640 | [1] | 65,680 | |
Deferred compensation | 2,832 | 2,364 | ||
Total Liabilities | 58,472 | 68,044 | ||
Recurring [Member] | Exchange-traded investments | ||||
Assets: | ||||
Available-for-sale securities | 927 | 792 | ||
Recurring [Member] | Level 1 [Member] | ||||
Assets: | ||||
Derivative assets, net | 0 | 735 | [1] | |
Total Assets | 927 | 1,527 | ||
Liabilities: | ||||
Derivative liabilities, net | 1,012 | [1] | 0 | |
Deferred compensation | 0 | 0 | ||
Total Liabilities | 1,012 | 0 | ||
Recurring [Member] | Level 1 [Member] | Exchange-traded investments | ||||
Assets: | ||||
Available-for-sale securities | 927 | 792 | ||
Recurring [Member] | Level 2 [Member] | ||||
Assets: | ||||
Derivative assets, net | 0 | 0 | [1] | |
Total Assets | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities, net | 0 | [1] | 0 | |
Deferred compensation | 2,832 | 2,364 | ||
Total Liabilities | 2,832 | 2,364 | ||
Recurring [Member] | Level 2 [Member] | Exchange-traded investments | ||||
Assets: | ||||
Available-for-sale securities | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | ||||
Assets: | ||||
Derivative assets, net | 642 | 1,052 | [1] | |
Total Assets | 642 | 1,052 | ||
Liabilities: | ||||
Derivative liabilities, net | 54,628 | [1] | 65,680 | |
Deferred compensation | 0 | 0 | ||
Total Liabilities | 54,628 | 65,680 | ||
Recurring [Member] | Level 3 [Member] | Exchange-traded investments | ||||
Assets: | ||||
Available-for-sale securities | 0 | 0 | ||
MGE [Member] | ||||
Assets: | ||||
Available-for-sale securities | 729 | 811 | ||
Derivative asset, collateral offset | 200 | |||
Liabilities: | ||||
Derivative liability, collateral offset | 2,200 | |||
MGE [Member] | Recurring [Member] | ||||
Assets: | ||||
Derivative assets, net | 642 | 1,787 | [1] | |
Total Assets | 992 | 2,218 | ||
Liabilities: | ||||
Derivative liabilities, net | 55,640 | [1] | 65,680 | |
Deferred compensation | 2,832 | 2,364 | ||
Total Liabilities | 58,472 | 68,044 | ||
MGE [Member] | Recurring [Member] | Exchange-traded investments | ||||
Assets: | ||||
Available-for-sale securities | 350 | 431 | ||
MGE [Member] | Recurring [Member] | Level 1 [Member] | ||||
Assets: | ||||
Derivative assets, net | 0 | 735 | [1] | |
Total Assets | 350 | 1,166 | ||
Liabilities: | ||||
Derivative liabilities, net | 1,012 | [1] | 0 | |
Deferred compensation | 0 | 0 | ||
Total Liabilities | 1,012 | 0 | ||
MGE [Member] | Recurring [Member] | Level 1 [Member] | Exchange-traded investments | ||||
Assets: | ||||
Available-for-sale securities | 350 | 431 | ||
MGE [Member] | Recurring [Member] | Level 2 [Member] | ||||
Assets: | ||||
Derivative assets, net | 0 | 0 | [1] | |
Total Assets | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities, net | 0 | [1] | 0 | |
Deferred compensation | 2,832 | 2,364 | ||
Total Liabilities | 2,832 | 2,364 | ||
MGE [Member] | Recurring [Member] | Level 2 [Member] | Exchange-traded investments | ||||
Assets: | ||||
Available-for-sale securities | 0 | 0 | ||
MGE [Member] | Recurring [Member] | Level 3 [Member] | ||||
Assets: | ||||
Derivative assets, net | 642 | 1,052 | [1] | |
Total Assets | 642 | 1,052 | ||
Liabilities: | ||||
Derivative liabilities, net | 54,628 | [1] | 65,680 | |
Deferred compensation | 0 | 0 | ||
Total Liabilities | 54,628 | 65,680 | ||
MGE [Member] | Recurring [Member] | Level 3 [Member] | Exchange-traded investments | ||||
Assets: | ||||
Available-for-sale securities | $0 | $0 | ||
[1] | These amounts are shown gross and exclude $2.2 and $0.2 million of collateral that was posted against derivative positions with counterparties as of December 31, 2014 and 2013, respectively. |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details-3) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Basis adjustment: | ||
Basis adjustment - on peak | 98.10% | 94.20% |
Basis adjustment - off peak | 95.00% | 92.60% |
US Treasury Bills [Member] | ||
Deferred compensation plan | ||
Investment interest calculation, investment maturity period (26 weeks) | 182 days | |
Investment interest calculation, monthly compounding rate | 1.00% | |
Investment interest calculation, minimum annual rate compounded monthly | 7.00% | |
Minimum [Member] | ||
Counterparty fuel mix: | ||
Internal generation | 50.00% | 50.00% |
Purchased power | 30.00% | 30.00% |
Maximum [Member] | ||
Counterparty fuel mix: | ||
Internal generation | 70.00% | 70.00% |
Purchased power | 50.00% | 50.00% |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Details-4) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Beginning balance | ($64,628) | ($72,346) | ($40,661) | |||
Realized and unrealized gains (losses): | ||||||
Included in regulatory liabilities (assets) | 10,642 | 7,718 | -31,685 | |||
Included in other comprehensive income | 0 | 0 | 0 | |||
Included in earnings | 5,129 | [1] | -2,618 | [1] | -5,005 | [1] |
Included in current assets | 0 | -108 | 0 | |||
Purchases | 26,382 | 23,726 | 13,370 | |||
Sales | -125 | -2 | 92 | |||
Issuances | 0 | 0 | 0 | |||
Settlements | -31,386 | -20,998 | -8,457 | |||
Transfers in and/or out of Level 3 | 0 | 0 | 0 | |||
Ending balance | -53,986 | -64,628 | -72,346 | |||
Total gains (losses) included in earnings attributed to the change in unrealized gains (losses) related to assets and liabilities | 0 | [1] | 0 | [1] | 0 | [1] |
Purchased Power Expense [Member] | ||||||
Realized and unrealized gains (losses): | ||||||
Included in earnings | 5,137 | [1] | -2,618 | [1] | -5,005 | [1] |
Cost Of Gas Sold Expense [Member] | ||||||
Realized and unrealized gains (losses): | ||||||
Included in earnings | ($8) | [1] | $0 | [1] | $0 | [1] |
[1] | MGE's exchange-traded derivative contracts, over-the-counter party transactions, ten-year purchased power agreement, 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. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income tax provision components [Abstract] | |||||||||||
Current payable: Federal | ($891,000) | ($1,508,000) | ($6,053,000) | ||||||||
Current payable: State | -589,000 | 8,213,000 | 436,000 | ||||||||
Net-deferred: Federal | 39,284,000 | 37,203,000 | 37,178,000 | ||||||||
Net-deferred: State | 10,600,000 | 1,163,000 | 7,618,000 | ||||||||
Amortized investment tax credits | -219,000 | -212,000 | -260,000 | ||||||||
Total income tax provision | 8,600,000 | 14,286,000 | 9,034,000 | 16,265,000 | 7,829,000 | 14,692,000 | 8,660,000 | 13,678,000 | 48,185,000 | 44,859,000 | 38,919,000 |
Reconciliation of tax provision to statutory federal income tax rate [Abstract] | |||||||||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||
State income taxes, net of federal benefit | 5.10% | 5.10% | 5.00% | ||||||||
Amortized investment tax credits | -0.20% | -0.20% | -0.30% | ||||||||
Credit for electricity from wind energy | -1.70% | -1.50% | -1.60% | ||||||||
Domestic manufacturing deduction | 0.00% | -0.20% | 0.30% | ||||||||
AFUDC Equity, net | -0.80% | -0.70% | -0.40% | ||||||||
Other, net, individually significant | 0.10% | 0.00% | -0.30% | ||||||||
Effective income tax rate | 37.50% | 37.50% | 37.70% | ||||||||
Deferred tax liabilities (assets) on balance sheet [Abstract] | |||||||||||
Property-related | 312,903,000 | 263,881,000 | 312,903,000 | 263,881,000 | |||||||
Investment in ATC | 36,140,000 | 32,696,000 | 36,140,000 | 32,696,000 | |||||||
Bond transactions | 1,420,000 | 1,553,000 | 1,420,000 | 1,553,000 | |||||||
Pension and other postretirement benefits | 57,847,000 | 34,478,000 | 57,847,000 | 34,478,000 | |||||||
Derivatives | 22,331,000 | 26,361,000 | 22,331,000 | 26,361,000 | |||||||
Tax deductible prepayments | 8,077,000 | 7,508,000 | 8,077,000 | 7,508,000 | |||||||
Other deferred tax liabilities | 10,451,000 | 1,995,000 | 10,451,000 | 1,995,000 | |||||||
Gross deferred income tax liabilities | 449,169,000 | 368,472,000 | 449,169,000 | 368,472,000 | |||||||
Future tax benefit | -4,092,000 | 0 | -4,092,000 | 0 | |||||||
Accrued expenses | -32,091,000 | -17,195,000 | -32,091,000 | -17,195,000 | |||||||
Pension and other postretirement benefits | -44,994,000 | -26,838,000 | -44,994,000 | -26,838,000 | |||||||
Deferred tax regulatory account | -1,211,000 | -1,402,000 | -1,211,000 | -1,402,000 | |||||||
Derivatives | -22,331,000 | -26,361,000 | -22,331,000 | -26,361,000 | |||||||
Other deferred tax assets | -5,957,000 | -10,369,000 | -5,957,000 | -10,369,000 | |||||||
Gross deferred income tax assets | -110,676,000 | -82,165,000 | -110,676,000 | -82,165,000 | |||||||
Less valuation allowance | 70,000 | 195,000 | 70,000 | 195,000 | |||||||
Net deferred income tax assets | -110,606,000 | -81,970,000 | -110,606,000 | -81,970,000 | |||||||
Deferred income taxes | 338,563,000 | 286,502,000 | 338,563,000 | 286,502,000 | |||||||
Operating loss deductions and tax credit carryforwards [Abstract] | |||||||||||
State net tax operating loss deductions | 1,400,000 | 1,400,000 | |||||||||
Unrecognized tax benefits [Roll Forward] | |||||||||||
Unrecognized tax benefits, beginning balance | 2,363,000 | 3,204,000 | 2,363,000 | 3,204,000 | 2,364,000 | ||||||
Additions based on tax positions related to current year | 610,000 | 377,000 | 401,000 | ||||||||
Additions based on tax positions related to prior year | 618,000 | 424,000 | 580,000 | ||||||||
Reductions based on tax positions related to the current year | 0 | -40,000 | 0 | ||||||||
Reductions based on tax positions related to prior years | -1,226,000 | -1,602,000 | -141,000 | ||||||||
Unrecognized tax benefits, ending balance | 2,365,000 | 2,363,000 | 2,365,000 | 2,363,000 | 3,204,000 | ||||||
Interest on unrecognized tax benefits [Roll Forward] | |||||||||||
Accrued interest on unrecognized tax benefits, beginning balance | 101,000 | 314,000 | 101,000 | 314,000 | 216,000 | ||||||
Reduction in interest expense on uncertain tax positions | -97,000 | -275,000 | 0 | ||||||||
Interest expense on uncertain tax positions | 88,000 | 62,000 | 98,000 | ||||||||
Accrued interest on unrecognized tax benefits, ending balance | 92,000 | 101,000 | 92,000 | 101,000 | 314,000 | ||||||
Unrecognized Tax Benefits | |||||||||||
Unrecognized tax benefits | 2,365,000 | 2,363,000 | 2,365,000 | 2,363,000 | 3,204,000 | ||||||
Unrecognized tax benefits permanent differences | 0 | 0 | 0 | 0 | 0 | ||||||
Other deferred liabilities [Member] | |||||||||||
Unrecognized tax benefits [Roll Forward] | |||||||||||
Unrecognized tax benefits, ending balance | 400,000 | 2,400,000 | 400,000 | 2,400,000 | |||||||
Unrecognized Tax Benefits | |||||||||||
Unrecognized tax benefits | 400,000 | 2,400,000 | 400,000 | 2,400,000 | |||||||
Deferred tax assets [Member] | |||||||||||
Unrecognized tax benefits [Roll Forward] | |||||||||||
Unrecognized tax benefits, ending balance | 2,000,000 | 2,000,000 | |||||||||
Unrecognized Tax Benefits | |||||||||||
Unrecognized tax benefits | 2,000,000 | 2,000,000 | |||||||||
State [Member] | |||||||||||
Operating loss deductions and tax credit carryforwards [Abstract] | |||||||||||
Operating loss carryforward | 16,500,000 | 16,500,000 | |||||||||
Operating loss carryforward, deferred tax asset | 800,000 | 800,000 | |||||||||
Federal [Member] | |||||||||||
Operating loss deductions and tax credit carryforwards [Abstract] | |||||||||||
Tax credit carryforward, amount | 5,400,000 | 5,400,000 | |||||||||
Tax credit carryforward, deferred tax asset | 5,400,000 | 5,400,000 | |||||||||
MGE [Member] | |||||||||||
Income tax provision components [Abstract] | |||||||||||
Current payable: Federal | 637,000 | -448,000 | -5,030,000 | ||||||||
Current payable: State | -451,000 | 8,322,000 | 613,000 | ||||||||
Net-deferred: Federal | 38,553,000 | 36,937,000 | 36,589,000 | ||||||||
Net-deferred: State | 10,625,000 | 1,223,000 | 7,523,000 | ||||||||
Amortized investment tax credits | -219,000 | -212,000 | -260,000 | ||||||||
Total income tax provision | 49,145,000 | 45,822,000 | 39,435,000 | ||||||||
Reconciliation of tax provision to statutory federal income tax rate [Abstract] | |||||||||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||
State income taxes, net of federal benefit | 5.10% | 5.10% | 5.00% | ||||||||
Amortized investment tax credits | -0.20% | -0.20% | -0.20% | ||||||||
Credit for electricity from wind energy | -1.70% | -1.50% | -1.50% | ||||||||
Domestic manufacturing deduction | 0.00% | -0.20% | 0.30% | ||||||||
AFUDC Equity, net | -0.80% | -0.70% | -0.40% | ||||||||
Other, net, individually significant | 0.10% | 0.00% | -0.50% | ||||||||
Effective income tax rate | 37.50% | 37.50% | 37.70% | ||||||||
Deferred tax liabilities (assets) on balance sheet [Abstract] | |||||||||||
Property-related | 312,807,000 | 263,881,000 | 312,807,000 | 263,881,000 | |||||||
Investment in ATC | 29,156,000 | 27,073,000 | 29,156,000 | 27,073,000 | |||||||
Bond transactions | 1,420,000 | 1,553,000 | 1,420,000 | 1,553,000 | |||||||
Pension and other postretirement benefits | 57,847,000 | 34,478,000 | 57,847,000 | 34,478,000 | |||||||
Derivatives | 22,331,000 | 26,361,000 | 22,331,000 | 26,361,000 | |||||||
Tax deductible prepayments | 8,077,000 | 7,508,000 | 8,077,000 | 7,508,000 | |||||||
Other deferred tax liabilities | 10,259,000 | 1,911,000 | 10,259,000 | 1,911,000 | |||||||
Gross deferred income tax liabilities | 441,897,000 | 362,765,000 | 441,897,000 | 362,765,000 | |||||||
Future tax benefit | -4,092,000 | 0 | -4,092,000 | 0 | |||||||
Accrued expenses | -32,091,000 | -17,195,000 | -32,091,000 | -17,195,000 | |||||||
Pension and other postretirement benefits | -44,994,000 | -26,838,000 | -44,994,000 | -26,838,000 | |||||||
Deferred tax regulatory account | -1,211,000 | -1,402,000 | -1,211,000 | -1,402,000 | |||||||
Derivatives | -22,331,000 | -26,361,000 | -22,331,000 | -26,361,000 | |||||||
Other deferred tax assets | -3,746,000 | -9,356,000 | -3,746,000 | -9,356,000 | |||||||
Gross deferred income tax assets | -108,465,000 | -81,152,000 | -108,465,000 | -81,152,000 | |||||||
Less valuation allowance | 70,000 | 195,000 | 70,000 | 195,000 | |||||||
Net deferred income tax assets | -108,395,000 | -80,957,000 | -108,395,000 | -80,957,000 | |||||||
Deferred income taxes | 333,502,000 | 281,808,000 | 333,502,000 | 281,808,000 | |||||||
Operating loss deductions and tax credit carryforwards [Abstract] | |||||||||||
State net tax operating loss deductions | 1,400,000 | 1,400,000 | |||||||||
MGE [Member] | State [Member] | |||||||||||
Operating loss deductions and tax credit carryforwards [Abstract] | |||||||||||
Operating loss carryforward | 16,500,000 | 16,500,000 | |||||||||
Operating loss carryforward, deferred tax asset | 800,000 | 800,000 | |||||||||
MGE [Member] | Federal [Member] | |||||||||||
Operating loss deductions and tax credit carryforwards [Abstract] | |||||||||||
Tax credit carryforward, amount | 5,400,000 | 5,400,000 | |||||||||
Tax credit carryforward, deferred tax asset | $5,400,000 | $5,400,000 |
Pension_Plans_and_Other_Postre2
Pension Plans and Other Postretirement Benefits (Details-1) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Defined contribution plans [Abstract] | |||||
Defined contribution costs | $2,500,000 | $2,300,000 | $2,100,000 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 315,000,000 | ||||
Fair value of plan assets at end of year | 327,500,000 | 315,000,000 | |||
Amounts recognized in the consolidated balance sheets to reflect funded status of plans [Abstract] | |||||
Long-term asset | 0 | 15,071,000 | |||
Long-term liability | -90,201,000 | -49,184,000 | |||
Pension Benefits [Member] | |||||
Change in benefit obligations [Roll Forward] | |||||
Net benefit obligation at beginning of year | 283,958,000 | 315,505,000 | |||
Service cost | 6,179,000 | 7,705,000 | 7,139,000 | ||
Interest cost | 13,574,000 | 12,656,000 | 12,704,000 | ||
Plan participants' contributions | 0 | 0 | |||
Plan amendments | 0 | 0 | |||
Actuarial (gain) loss | 48,162,000 | [1] | -40,335,000 | [1] | |
Gross benefits paid | -11,640,000 | -11,573,000 | |||
Less: federal subsidy on benefits paid | 0 | 0 | |||
Benefit obligation at end of year | 340,233,000 | 283,958,000 | 315,505,000 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 277,398,000 | 212,277,000 | |||
Actual return on plan assets | 21,907,000 | 45,816,000 | |||
Employer contributions | 883,000 | 30,878,000 | |||
Plan participants' contributions | 0 | 0 | |||
Gross benefits paid | -11,640,000 | -11,573,000 | |||
Fair value of plan assets at end of year | 288,548,000 | 277,398,000 | 212,277,000 | ||
Funded Status at December 31 | -51,685,000 | -6,560,000 | |||
Accumulated benefit obligation | 304,000,000 | 254,500,000 | |||
Amounts recognized in the consolidated balance sheets to reflect funded status of plans [Abstract] | |||||
Long-term asset | 0 | 15,071,000 | |||
Current liability | -1,025,000 | -945,000 | |||
Long-term liability | -50,660,000 | -20,686,000 | |||
Net asset (liability) | -51,685,000 | -6,560,000 | |||
Amounts recognized in the consolidated balance sheets as regulatory asset [Abstract] | |||||
Net actuarial loss | 85,102,000 | 37,499,000 | |||
Prior service (credit) cost | -413,000 | -209,000 | |||
Transition obligation | 0 | 0 | |||
Total | 84,689,000 | 37,290,000 | |||
Projected benefit obligation in excess of plan assets [Abstract] | |||||
Projected benefit obligation with projected benefit obligation in excess of plan assets, end of year | 340,233,000 | 21,631,000 | |||
Fair value of plan assets with projected benefit obligation in excess of plan assets, end of year | 288,548,000 | 0 | |||
Accumulated benefit obligation in excess of plan assets [Abstract] | |||||
Projected benefit obligation with accumulated benefit obligation in excess of plan assets, end of year | 340,233,000 | 21,631,000 | |||
Accumulated benefit obligation with accumulated benefit obligation in excess of plan assets, end of year | 304,023,000 | 19,795,000 | |||
Fair value of plan assets with accumulated benefit obligation in excess of plan assets, end of year | 288,548,000 | 0 | |||
Postretirement Benefits [Member] | |||||
Change in benefit obligations [Roll Forward] | |||||
Net benefit obligation at beginning of year | 66,100,000 | 92,605,000 | |||
Service cost | 1,339,000 | 2,380,000 | 2,528,000 | ||
Interest cost | 3,166,000 | 3,871,000 | 4,431,000 | ||
Plan participants' contributions | 708,000 | 665,000 | |||
Plan amendments | 0 | -20,915,000 | [2] | ||
Actuarial (gain) loss | 10,090,000 | [1] | -9,687,000 | [1] | |
Gross benefits paid | -3,113,000 | -2,998,000 | |||
Less: federal subsidy on benefits paid | 188,000 | [3] | 179,000 | [3] | |
Benefit obligation at end of year | 78,478,000 | 66,100,000 | 92,605,000 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 37,602,000 | 32,124,000 | |||
Actual return on plan assets | 2,558,000 | 5,000,000 | |||
Employer contributions | 1,197,000 | 2,811,000 | |||
Plan participants' contributions | 708,000 | 665,000 | |||
Gross benefits paid | -3,113,000 | -2,998,000 | |||
Fair value of plan assets at end of year | 38,952,000 | 37,602,000 | 32,124,000 | ||
Funded Status at December 31 | -39,526,000 | -28,498,000 | |||
Plan amendment, maximum percentage of 2013 employer contributions to be paid toward retiree medical premiums | 175.00% | ||||
Medicare subsidy due to MGE | 200,000 | 200,000 | |||
Amounts recognized in the consolidated balance sheets to reflect funded status of plans [Abstract] | |||||
Long-term asset | 0 | 0 | |||
Current liability | -65,000 | -13,000 | |||
Long-term liability | -39,461,000 | -28,485,000 | |||
Net asset (liability) | -39,526,000 | -28,498,000 | |||
Amounts recognized in the consolidated balance sheets as regulatory asset [Abstract] | |||||
Net actuarial loss | 17,657,000 | 7,761,000 | |||
Prior service (credit) cost | -17,827,000 | -20,495,000 | |||
Transition obligation | 32,000 | 35,000 | |||
Total | ($138,000) | ($12,699,000) | |||
[1] | In 2014, lower discount rates and mortality table updates were the main drivers to the actuarial loss. | ||||
[2] | In 2013, MGE capped the amount it pays each year toward retiree medical premiums at 175%of the 2013 employer contribution for qualified employees. | ||||
[3] | In 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 was signed into law authorizing Medicare to provide prescription drug benefits to retirees. For the years ended DecemberB 31, 2014 and 2013, the subsidy due to MGE was $0.2 million. |
Pension_Plans_and_Other_Postre3
Pension Plans and Other Postretirement Benefits (Details-2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Net Periodic Benefit Cost | |||
Transition obligation straight-line amortization period | 20 years | ||
Pension Benefits [Member] | |||
Components of Net Periodic Benefit Cost | |||
Service cost | $6,179 | $7,705 | $7,139 |
Interest cost | 13,574 | 12,656 | 12,704 |
Expected return on assets | -22,051 | -19,027 | -15,182 |
Amortization of: | |||
Transition obligation | 0 | 0 | 0 |
Prior service cost | 204 | 314 | 430 |
Actuarial loss | 703 | 8,014 | 8,288 |
Net periodic benefit cost | -1,391 | 9,662 | 13,379 |
Postretirement Benefits [Member] | |||
Components of Net Periodic Benefit Cost | |||
Service cost | 1,339 | 2,380 | 2,528 |
Interest cost | 3,166 | 3,871 | 4,431 |
Expected return on assets | -2,615 | -2,176 | -1,741 |
Amortization of: | |||
Transition obligation | 3 | 3 | 425 |
Prior service cost | -2,669 | 110 | 110 |
Actuarial loss | 252 | 1,236 | 2,346 |
Net periodic benefit cost | ($524) | $5,424 | $8,099 |
Pension_Plans_and_Other_Postre4
Pension Plans and Other Postretirement Benefits (Details-3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 4.11% | 4.88% | |
Rate of compensation increase | 3.85% | 3.90% | |
Weighted-average assumptions used to determine net periodic cost: | |||
Discount rate | 4.88% | 4.09% | 4.50% |
Long-term rate of return | 8.10% | 8.10% | 8.10% |
Rate of compensation increase | 3.93% | 4.60% | 4.59% |
Postretirement Benefits [Member] | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 3.96% | 4.69% | |
Assumed health care cost trend rates: | |||
Health care cost trend rate assumed for next year | 6.50% | 7.00% | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% | |
Year that the rate reaches the ultimate trend rate | 2021 | 2018 | |
Weighted-average assumptions used to determine net periodic cost: | |||
Discount rate | 4.69% | 4.14% | 4.55% |
Long-term rate of return | 7.07% | 6.79% | 7.26% |
How assumed 1% increase or decrease in health care cost trends could impact postretirement benefits [Abstract] | |||
Effect on other postretirement benefit obligation - 1% increase | 1,465 | ||
Effect on other postretirement benefit obligation - 1% decrease | -1,852 | ||
Effect on total service and interest cost components - 1% increase | 75 | ||
Effect on total service and interest cost components - 1% decrease | -101 |
Pension_Plans_and_Other_Postre5
Pension Plans and Other Postretirement Benefits (Details-4) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | $327,500 | $315,000 | ||
Real Estate [Member] | ||||
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | 23,480 | 19,628 | ||
Pension Benefits [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target Plan Asset Allocation | 100.00% | |||
Actual Plan Asset Allocation | 100.00% | 100.00% | ||
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | 288,548 | 277,398 | 212,277 | |
Pension Benefits [Member] | Plan Assets [Member] | ||||
Concentration of Credit Risk [Abstract] | ||||
Concentration risk, percentage | 10.00% | |||
Concentration risk, number of significant concentrations | 0 | |||
Pension Benefits [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target Plan Asset Allocation | 63.00% | [1] | ||
Actual Plan Asset Allocation | 62.00% | 66.00% | ||
Pension Benefits [Member] | United States Equity Securities [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target Plan Asset Allocation | 45.50% | |||
Pension Benefits [Member] | Non-United States Equity Securities [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target Plan Asset Allocation | 17.50% | |||
Pension Benefits [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target Plan Asset Allocation | 30.00% | |||
Actual Plan Asset Allocation | 31.00% | 28.00% | ||
Pension Benefits [Member] | Real Estate [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target Plan Asset Allocation | 7.00% | |||
Actual Plan Asset Allocation | 7.00% | 6.00% | ||
Postretirement Benefits [Member] | ||||
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | 38,952 | 37,602 | 32,124 | |
Postretirement Benefits [Member] | Plan Assets [Member] | ||||
Concentration of Credit Risk [Abstract] | ||||
Concentration risk, percentage | 10.00% | |||
Concentration risk, number of significant concentrations | 0 | |||
Master Pension Trust [Member] | ||||
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | $32,800 | $31,100 | ||
[1] | Target allocations for equity securities are broken out as follows: 45.5% United States equity, | |||
17.5% non-United States equity. | ||||
Pension_Plans_and_Other_Postre6
Pension Plans and Other Postretirement Benefits (Details-5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $327,500 | $315,000 | |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,109 | ||
Equity Securities [Member] | U.S. Large Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 99,256 | 96,258 | |
Equity Securities [Member] | U.S. Mid Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22,926 | 22,741 | |
Equity Securities [Member] | U.S. Small Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29,353 | 28,854 | |
Equity Securities [Member] | International Blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47,650 | 54,873 | |
Fixed Income Securities [Member] | Short-Term Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,776 | 4,789 | |
Fixed Income Securities [Member] | High Yield Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15,492 | 15,127 | |
Fixed Income Securities [Member] | Long Duration Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 79,603 | 66,193 | |
Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23,480 | 19,628 | |
Insurance Continuance Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,518 | 1,428 | |
Fixed Rate Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,446 | ||
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 5,109 | |
Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,109 | ||
Level 1 [Member] | Equity Securities [Member] | U.S. Large Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Equity Securities [Member] | U.S. Mid Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Equity Securities [Member] | U.S. Small Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Equity Securities [Member] | International Blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Fixed Income Securities [Member] | Short-Term Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Fixed Income Securities [Member] | High Yield Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Fixed Income Securities [Member] | Long Duration Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Insurance Continuance Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Fixed Rate Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 298,056 | 288,835 | |
Level 2 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 2 [Member] | Equity Securities [Member] | U.S. Large Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 99,256 | 96,258 | |
Level 2 [Member] | Equity Securities [Member] | U.S. Mid Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22,926 | 22,741 | |
Level 2 [Member] | Equity Securities [Member] | U.S. Small Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29,353 | 28,854 | |
Level 2 [Member] | Equity Securities [Member] | International Blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47,650 | 54,873 | |
Level 2 [Member] | Fixed Income Securities [Member] | Short-Term Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,776 | 4,789 | |
Level 2 [Member] | Fixed Income Securities [Member] | High Yield Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15,492 | 15,127 | |
Level 2 [Member] | Fixed Income Securities [Member] | Long Duration Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 79,603 | 66,193 | |
Level 2 [Member] | Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 [Member] | Insurance Continuance Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 [Member] | Fixed Rate Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29,444 | 21,056 | |
Level 3 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 3 [Member] | Equity Securities [Member] | U.S. Large Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 [Member] | Equity Securities [Member] | U.S. Mid Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 [Member] | Equity Securities [Member] | U.S. Small Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 [Member] | Equity Securities [Member] | International Blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 [Member] | Fixed Income Securities [Member] | Short-Term Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 [Member] | Fixed Income Securities [Member] | High Yield Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 [Member] | Fixed Income Securities [Member] | Long Duration Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 [Member] | Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23,480 | 19,628 | 17,141 |
Level 3 [Member] | Insurance Continuance Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,518 | 1,428 | 1,466 |
Level 3 [Member] | Fixed Rate Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $4,446 | $0 | $0 |
Pension_Plans_and_Other_Postre7
Pension Plans and Other Postretirement Benefits (Details-6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at end of year | $327,500 | $315,000 |
Real Estate [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at end of year | 23,480 | 19,628 |
Insurance Continuance Fund [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at end of year | 1,518 | 1,428 |
Fixed Rate Fund [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at end of year | 4,446 | |
Level 3 [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at end of year | 29,444 | 21,056 |
Level 3 [Member] | Real Estate [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 19,628 | 17,141 |
Actual return on plan assets still held | 1,561 | 1,565 |
Purchases, sales, and settlements | 2,291 | 922 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | 23,480 | 19,628 |
Level 3 [Member] | Insurance Continuance Fund [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 1,428 | 1,466 |
Actual return on plan assets still held | 44 | 42 |
Purchases, sales, and settlements | 46 | -80 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | 1,518 | 1,428 |
Level 3 [Member] | Fixed Rate Fund [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on plan assets still held | 54 | 0 |
Purchases, sales, and settlements | 4,392 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | $4,446 | $0 |
Pension_Plans_and_Other_Postre8
Pension Plans and Other Postretirement Benefits (Details-7) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Expected Cash Flows | |||
Expected employer contributions, 2015 | $10,000,000 | ||
Expected employer contributions, 2016 | 0 | ||
Cash contributions to pension and other postretirement plans | 3,321,000 | 34,765,000 | 28,857,000 |
Pension Benefits [Member] | |||
Benefit Payments | |||
Defined benefit plan expected future benefit payments, 2015 | 11,944,000 | ||
Defined benefit plan expected future benefit payments, 2016 | 12,631,000 | ||
Defined benefit plan expected future benefit payments, 2017 | 13,408,000 | ||
Defined benefit plan expected future benefit payments, 2018 | 14,613,000 | ||
Defined benefit plan expected future benefit payments, 2019 | 15,559,000 | ||
Defined benefit plan expected future benefit payments, 2020-2024 | 92,915,000 | ||
Postretirement Benefits [Member] | |||
Benefit Payments | |||
Defined benefit plan expected future benefit payments, 2015 | 2,890,000 | ||
Defined benefit plan expected future benefit payments, 2016 | 3,101,000 | ||
Defined benefit plan expected future benefit payments, 2017 | 3,499,000 | ||
Defined benefit plan expected future benefit payments, 2018 | 3,990,000 | ||
Defined benefit plan expected future benefit payments, 2019 | 4,470,000 | ||
Defined benefit plan expected future benefit payments, 2020-2024 | 27,866,000 | ||
Gross Postretirement Benefits [Member] | |||
Benefit Payments | |||
Defined benefit plan expected future benefit payments, 2015 | 3,101,000 | ||
Defined benefit plan expected future benefit payments, 2016 | 3,338,000 | ||
Defined benefit plan expected future benefit payments, 2017 | 3,757,000 | ||
Defined benefit plan expected future benefit payments, 2018 | 4,272,000 | ||
Defined benefit plan expected future benefit payments, 2019 | 4,776,000 | ||
Defined benefit plan expected future benefit payments, 2020-2024 | 29,871,000 | ||
Expected Medicare Part D Subsidy [Member] | |||
Benefit Payments | |||
Defined benefit plan expected future benefit payments, 2015 | -211,000 | ||
Defined benefit plan expected future benefit payments, 2016 | -237,000 | ||
Defined benefit plan expected future benefit payments, 2017 | -258,000 | ||
Defined benefit plan expected future benefit payments, 2018 | -282,000 | ||
Defined benefit plan expected future benefit payments, 2019 | -306,000 | ||
Defined benefit plan expected future benefit payments, 2020-2024 | ($2,005,000) |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Feb. 21, 2014 | Feb. 15, 2013 | Feb. 17, 2012 | Jan. 21, 2011 | Feb. 20, 2015 | Jan. 17, 2014 | Jan. 16, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense | $2 | $1.50 | $1.40 | ||||||||
Performance Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Cash payments distributed related to awards previously granted and now payable | 1.2 | ||||||||||
Performance Unit Plan [Member] | Performance Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period | 5 years | ||||||||||
Awards granted (in units) | 21,991 | 22,884 | 25,040 | 23,483 | |||||||
Awards forfeited during period | 0 | 0 | 0 | ||||||||
Outstanding awards vested during period | $5.20 | ||||||||||
Performance Unit Plan [Member] | Performance Units [Member] | Subsequent Event [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Awards granted (in units) | 18,948 | ||||||||||
Director Incentive Agreement [Member] | Performance Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period | 3 years | ||||||||||
Awards granted (in units) | 4,683 | ||||||||||
Director Incentive Agreement [Member] | Performance Units [Member] | Subsequent Event [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Awards granted (in units) | 3,794 |
Regional_Transmission_Organiza1
Regional Transmission Organizations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Regional Transmission Organizations Disclosure [Abstract] | |||
Reduction to sales and purchased power expense from reporting RTO transactions from net basis reporting | $91.10 | $78 | $75.90 |
Derivative_and_Hedging_Instrum2
Derivative and Hedging Instruments (Details-1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dth | MWh | ||
MWh | Dth | ||
Gross Notional Volume of Open Derivatives | |||
Derivative, right to reclaim collateral (receivable) | $2,200,000 | ||
Other Current Assets [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, net | 1,001,000 | 411,000 | 574,000 |
Commodity Contracts and Financial Transimission Rights [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, net | -1,600,000 | 1,800,000 | |
Commodity Derivative Contracts [Member] | |||
Gross Notional Volume of Open Derivatives | |||
Notional amount, energy measure (in MWh) | 448,000 | 458,660 | |
Notional amount, decatherm measure (in Dth) | 4,405,000 | 3,750,000 | |
Derivative Fair Values [Abstract] | |||
Derivative fair value, gross asset | 223,000 | 1,523,000 | |
Derivative fair value, gross liability | 2,433,000 | 99,000 | |
Commodity Derivative Contracts [Member] | Other Current Assets [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, gross asset | 130,000 | 1,356,000 | |
Commodity Derivative Contracts [Member] | Other Deferred Charges [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, gross asset | 93,000 | 167,000 | |
Commodity Derivative Contracts [Member] | Derivative Liability (Current) [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, gross liability | 2,262,000 | 51,000 | |
Commodity Derivative Contracts [Member] | Derivative Liability (Long-term) [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, gross liability | 171,000 | 48,000 | |
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 | |||
Notional amount, power measure (in MW) | 1,854 | 1,984 | |
Derivative Fair Values [Abstract] | |||
Derivative fair value, gross asset | 642,000 | 363,000 | |
Financial Transmission Rights [Member] | Other Current Assets [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, gross asset | 642,000 | 363,000 | |
Financial Transmission Rights [Member] | Derivative Liability (Current) [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, gross liability | 0 | 0 | |
Ten-year PPA [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, net | -53,400,000 | -65,700,000 | |
Derivative fair value, gross liability | 53,430,000 | 65,680,000 | |
Ten-year PPA [Member] | Derivative Liability (Current) [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, gross liability | 6,870,000 | 7,750,000 | |
Ten-year PPA [Member] | Derivative Liability (Long-term) [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, gross liability | $46,560,000 | $57,930,000 |
Derivative_and_Hedging_Instrum3
Derivative and Hedging Instruments (Details-2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting Assets [Line Items] | ||
Collateral posted against derivative positions | ($200) | |
Commodity Derivative Contracts [Member] | ||
Offsetting Assets [Line Items] | ||
Gross asset | 223 | 1,523 |
Gross amounts offset in balance sheet | -223 | -99 |
Collateral posted against derivative positions | 0 | -175 |
Net amount presented in balance sheet | 0 | 1,249 |
Financial Transmission Rights [Member] | ||
Offsetting Assets [Line Items] | ||
Gross asset | 642 | 363 |
Gross amounts offset in balance sheet | 0 | 0 |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | $642 | $363 |
Derivative_and_Hedging_Instrum4
Derivative and Hedging Instruments (Details-3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting Liabilities [Line Items] | ||
Collateral posted against derivative positions | ($2,200) | |
Commodity Derivative Contracts [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross liability | 2,433 | 99 |
Gross amounts offset in balance sheet | -223 | -99 |
Collateral posted against derivative positions | -2,179 | 0 |
Net amount presented in the balance sheet | 31 | 0 |
Ten-year PPA [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross liability | 53,430 | 65,680 |
Gross amounts offset in balance sheet | 0 | 0 |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in the balance sheet | $53,430 | $65,680 |
Derivative_and_Hedging_Instrum5
Derivative and Hedging Instruments (Details-4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Current and Long-Term Regulatory Asset [Member] | ||
Change in Derivative Fair Value [Roll Forward] | ||
Beginning balance | $63,893 | $72,329 |
Change in unrealized loss | -14,518 | -5,069 |
Realized gain (loss) reclassified to a deferred account | 595 | -823 |
Realized gain (loss) reclassified to income statement | 5,028 | -2,544 |
Ending balance | 54,998 | 63,893 |
Other Current Assets [Member] | ||
Change in Derivative Fair Value [Roll Forward] | ||
Beginning balance | 411 | 574 |
Change in unrealized loss | 0 | 0 |
Realized gain (loss) reclassified to a deferred account | -595 | 823 |
Realized gain (loss) reclassified to income statement | 1,185 | -986 |
Ending balance | $1,001 | $411 |
Derivative_and_Hedging_Instrum6
Derivative and Hedging Instruments (Details-5) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Counterparties in net liability position or default [Abstract] | ||
Net liability position of counterparites (less than $0.1 million as of December 31, 2014, $0 as of December 31, 2013) | $100,000 | $0 |
Number of counterparties in default | 0 | |
Commodity Derivative Contracts [Member] | Fuel For Electric Generation Purchased Power [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized losses (gains) | -5,515,000 | -564,000 |
Commodity Derivative Contracts [Member] | Cost Of Gas Sold Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized losses (gains) | -1,103,000 | 868,000 |
Financial Transmission Rights [Member] | Fuel For Electric Generation Purchased Power [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized losses (gains) | -1,110,000 | -983,000 |
Financial Transmission Rights [Member] | Cost Of Gas Sold Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized losses (gains) | 0 | 0 |
Ten-year PPA [Member] | ||
Derivative collateral required to be posted for ten-year PPA [Abstract] | ||
Minimum collateral that may be required to be posted | 20,000,000 | |
Maximum collateral that may be required to be posted | 40,000,000 | |
Collateral posted | 0 | |
Ten-year PPA [Member] | Fuel For Electric Generation Purchased Power [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized losses (gains) | 1,515,000 | 4,209,000 |
Ten-year PPA [Member] | Cost Of Gas Sold Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized losses (gains) | $0 | $0 |
Rate_Matters_Details
Rate Matters (Details) (PSCW [Member], USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | Oct. 31, 2014 |
Public Utilities, Rate Matters [Abstract] | |||||
Authorized AFUDC rate | 50.00% | 50.00% | 50.00% | ||
MGE [Member] | |||||
Public Utilities, Rate Matters [Abstract] | |||||
Authorized return on common stock | 10.30% | 10.30% | |||
Fuel Rules [Abstract] | |||||
Fuel rules, bandwidth | 2.00% | ||||
Fuel rules, electric fuel costs, deferral, upper threshold | 102.00% | ||||
Fuel rules, electric fuel costs, deferral, lower threshold | 98.00% | ||||
Fuel Rules Credit, 2012 [Member] | MGE [Member] | |||||
Public Utilities, Rate Matters [Abstract] | |||||
Return of electric fuel credit, total | 6.3 | ||||
Fuel Rules Credit, 2013 [Member] | MGE [Member] | |||||
Public Utilities, Rate Matters [Abstract] | |||||
Return of electric fuel credit, total | 6.5 | ||||
Approved Future Rate Matters [Member] | MGE [Member] | |||||
Public Utilities, Rate Matters [Abstract] | |||||
Authorized return on common stock | 10.20% | ||||
Columbia Environmental Project [Member] | |||||
Public Utilities, Rate Matters [Abstract] | |||||
Authorized AFUDC rate | 100.00% | 50.00% | 100.00% | ||
Columbia Environmental Project [Member] | MGE [Member] | |||||
Public Utilities, Rate Matters [Abstract] | |||||
Authorized AFUDC rate | 100.00% | 50.00% | |||
Electric Rate Proceeding [Member] | MGE [Member] | |||||
Public Utilities, Rate Matters [Abstract] | |||||
Authorized rate increase (decrease), percentage | 0.00% | 3.80% | 4.30% | ||
Authorized rate increase (decrease), amount | 0 | 14.9 | 15.7 | ||
Electric Rate Proceeding [Member] | Approved Future Rate Matters [Member] | MGE [Member] | |||||
Public Utilities, Rate Matters [Abstract] | |||||
Authorized rate increase (decrease), percentage | 3.80% | ||||
Authorized rate increase (decrease), amount | 15.4 | ||||
Gas Rate Proceeding [Member] | MGE [Member] | |||||
Public Utilities, Rate Matters [Abstract] | |||||
Authorized rate increase (decrease), percentage | 0.00% | 1.00% | 0.30% | ||
Authorized rate increase (decrease), amount | 0 | 1.6 | 0.6 | ||
Gas Rate Proceeding [Member] | Approved Future Rate Matters [Member] | MGE [Member] | |||||
Public Utilities, Rate Matters [Abstract] | |||||
Authorized rate increase (decrease), percentage | -2.00% | ||||
Authorized rate increase (decrease), amount | -3.8 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details-1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | |
MW | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 122,841 | |
Purchase obligation due in second year | 78,534 | |
Purchase obligation due in third year | 63,703 | |
Purchase obligation due in fourth year | 57,828 | |
Purchase obligation due in fifth year | 41,360 | |
Coal [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 22,630 | [1] |
Purchase obligation due in second year | 16,436 | [1] |
Purchase obligation due in third year | 10,664 | [1] |
Purchase obligation due in fourth year | 6,560 | [1] |
Purchase obligation due in fifth year | 3,850 | [1] |
Natural Gas, Transportation and Storage [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 18,074 | [2] |
Purchase obligation due in second year | 9,938 | [2] |
Purchase obligation due in third year | 273 | [2] |
Purchase obligation due in fourth year | 192 | [2] |
Purchase obligation due in fifth year | 0 | [2] |
Natural Gas, Supply [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 14,971 | [3] |
Purchase obligation due in second year | 0 | [3] |
Purchase obligation due in third year | 0 | [3] |
Purchase obligation due in fourth year | 0 | [3] |
Purchase obligation due in fifth year | 0 | [3] |
Purchase Power [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 50,714 | [4] |
Purchase obligation due in second year | 51,437 | [4] |
Purchase obligation due in third year | 52,043 | [4] |
Purchase obligation due in fourth year | 50,752 | [4] |
Purchase obligation due in fifth year | 37,367 | [4] |
Ten-year Purchase Power Agreement, Osceola Windpower II, LLC [Member] | ||
Purchase Power Agreement [Abstract] | ||
Long-term purchase commitment, term | 10 years | |
Long-term purchase commitment, minimum power required (in MW) | 50 | |
Other [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 16,452 | |
Purchase obligation due in second year | 723 | |
Purchase obligation due in third year | 723 | |
Purchase obligation due in fourth year | 324 | |
Purchase obligation due in fifth year | 143 | |
[1] | Total coal commitments for the Columbia and Elm Road Units, including transportation. Fuel procurement for MGE's jointly owned Columbia and Elm Road Units are handled by WPL and WEPCO, respectively, who are the operators of those facilities. If any minimum purchase obligations must be paid under these contracts, management believes these obligations would be considered costs of service and recoverable in rates. | |
[2] | 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 established by FERC but may be subject to change. | |
[3] | These commitments include market-based pricing. Management expects to recover these costs in future customer rates. | |
[4] | MGE has several purchase power agreements to help meet future electric supply requirements. Management expects to recover these costs in future customer rates. In OctoberB 2008, MGE entered into a ten-year purchase power agreement to help meet future electric supply requirements. Under this agreement, MGE has agreed to purchase 50B MW of wind power from Osceola Windpower II, LLC, which is located in Iowa. This facility became operational in OctoberB 2008. MGE does not have any capacity payment commitments under this agreement. However, MGE is obligated to purchase its ratable share of the energy produced by the project. MGE's commitment related to its ratable share of energy produced by the project has been estimated and is included in the above numbers. |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details-2) (Chattel Paper Agreement [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Guarantor Obligations [Line Items] | |||
Guarantor obligation, maximum financing receivable | $10,000,000 | ||
Guarantor obligation, current carrying value | 4,400,000 | 5,400,000 | 4,500,000 |
Servicing asset, amount recognized at period end | 200,000 | 300,000 | 200,000 |
Servicing asset, gain recognized during the year in connection with sale of new loan assets | 100,000 | 200,000 | 100,000 |
Servicing asset, amortization | 100,000 | ||
Guarantor obligation, proceeds received from financial institution for sale of loan assets | 500,000 | 1,600,000 | 1,200,000 |
Guarantor obligation, payments to financial institution for loan assets | 1,500,000 | 800,000 | 1,200,000 |
Guarantor Obligation, Fiscal Year Maturity [Abstract] | |||
Guarantor obligation, 2015 | 906,000 | ||
Guarantor obligation, 2016 | 884,000 | ||
Guarantor obligation, 2017 | 482,000 | ||
Guarantor obligation, 2018 | 420,000 | ||
Guarantor obligation, 2019 | $410,000 | ||
Minimum [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor obligation, term | 1 year | ||
Maximum [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor obligation, term | 10 years |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details-3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Leases, Future Minimum Rental Payments [Abstract] | |||
Minimum lease payments, 2015 | $1,553,000 | ||
Minimum lease payments, 2016 | 1,346,000 | ||
Minimum lease payments, 2017 | 872,000 | ||
Minimum lease payments, 2018 | 419,000 | ||
Minimum lease payments, 2019 | 258,000 | ||
Minimum lease payments, Thereafter | 7,938,000 | ||
Rental expense under operating leases | $2,500,000 | $2,700,000 | $2,600,000 |
Operating leases, renewal option term (one year or less) | 1 year |
Commitments_and_Contingencies_4
Commitments and Contingencies (Details-4) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Columbia Units [Member] | |
Columbia | |
Envrionmental civil penalty expense | $0.20 |
Accrual for future environmental mitigation projects | $0.60 |
Wisconsin Energy Efficiency and Renewables Act [Member] | |
Energy Efficiency and Renewables | |
Minimum electricity generated from renewable resources by 2015 | 10.00% |
Environmental Protection Agency [Member] | |
EPA's Greenhouse Gas Reduction Guidelines | |
National average reduction of greenhouse gas emissions by the year 2030, percentage | 30.00% |
Wisconsin state average reduction goal of greenhouse gas emissions by the year 2030, percentage | 34.00% |
Compliance plan preparation term related to the greenhouse gas emissions reduction guidelines once the final rule is approved in 2015 | 2 years |
EPA's National Ambient Air Quality Standards | |
Number of pollutants monitored by the National Ambient Air Quality Standards | 6 |
Proposed lowered regulated level of Ozone NAAQS, minimum (in parts per billion) | 65 |
Proposed lowered regulated level of Ozone NAAQS, maximum (in parts per billion) | 70 |
Current regulated level of Ozone NAAQS (in parts per billion) | 75 |
Proposed lowered regulated level of Ozone NAAQS, potential additional minimum (in parts per billion) | 60 |
EPA's Cross State Air Pollution Rule | |
Number of eastern states identified contributing to pollution in other states | 27 |
Number of phases for allocation of NOx and SO2 allowances to qualifying power plants under the rule | 2 |
EPA's Coal Combustion Residuals Rule | |
Timeframe allowed to meet various compliance parameters, minimum | 18 months |
Timeframe allowed to meet various compliance parameters, maximum | 5 years |
Commitments_and_Contingencies_5
Commitments and Contingencies (Details-5) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
MGE [Member] | |
Other Commitments [Line Items] | |
Other commitments, due in 2015 | $474,000 |
Other commitments, due in 2016 | 475,000 |
Other commitments, due in 2017 | 433,000 |
Other commitments, due in 2018 | 435,000 |
Other commitments, due in 2019 | 437,000 |
Other commitment, due thereafter | 6,524,000 |
MGE Energy [Member] | Investments in Non Public Entities, Capital Infusions [Member] | |
Other Commitments [Line Items] | |
Other commitment, initial agreed upon commitment total | 1,400,000 |
MGE Energy [Member] | Venture Debt Fund [Member] | |
Other Commitments [Line Items] | |
Other commitment, contract term, expiring in 2016 | 3 years |
Other commitment, initial agreed upon commitment total | 1,000,000 |
Other commitments, total as of balance sheet date | $200,000 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligations [Roll Forward] | ||
Asset retirement obligation, beginning balance | $19,359 | $18,768 |
Liabilities incurred | 68 | 296 |
Accretion expense | 1,077 | 1,015 |
Liabilities settled | -343 | -744 |
Revisions in estimated cash flows | -417 | 24 |
Asset retirement obligation, ending balance | $19,744 | $19,359 |
Columbia_Environmental_Project1
Columbia Environmental Project Construction (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Jointly Owned Utility Plant Interests [Line Items] | |||
Property, plant and equipment, total | 1,189,077,000 | 1,018,809,000 | |
PSCW [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Authorized AFUDC rate | 50.00% | 50.00% | 50.00% |
Columbia Environmental Project [Member] | PSCW [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Authorized AFUDC rate | 100.00% | 50.00% | 100.00% |
Columbia Units [Member] | WPL [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Jointly owned utility plant, ownership interest | 46.20% | ||
Columbia Units [Member] | WPSC [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Jointly owned utility plant, ownership interest | 31.80% | ||
MGE [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Property, plant and equipment, total | 1,188,351,000 | 1,017,877,000 | |
AFUDC - equity funds | 3,466,000 | 3,140,000 | 1,731,000 |
MGE [Member] | Columbia Environmental Project [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Property, plant and equipment, total | 138,800,000 | ||
Property, plant, and equipment, portion related to capital expenditures | 129,000,000 | ||
Property, plant, and equipment, portion related to AFUDC | 9,800,000 | ||
Contractual commitments | 500,000 | ||
AFUDC - equity funds | 3,000,000 | 2,700,000 | |
MGE [Member] | Columbia Environmental Project [Member] | PSCW [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Authorized AFUDC rate | 100.00% | 50.00% | |
Authorized rate of return | 50.00% | ||
MGE [Member] | Columbia Units [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Jointly owned utility plant, ownership interest | 22.00% |
Adoption_of_Accounting_Princip1
Adoption of Accounting Principles and Recently Issued Accounting Pronouncements (Details) (Accounting Standards Update 2014-11 [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Accounting Standards Update 2014-11 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New accounting pronouncement, effect of adoption, increase in assets and liabilities (secured borrowings) | $4.40 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | $145,707 | $135,135 | $128,765 | $210,245 | $155,263 | $140,099 | $128,288 | $167,237 | $619,852 | $590,887 | $541,323 | |||
Depreciation and amortization | -40,695 | -38,838 | -38,707 | |||||||||||
Other operating expenses | -441,059 | -424,062 | -389,853 | |||||||||||
Operating Income (Loss) | 29,566 | 40,120 | 24,441 | 43,971 | 25,962 | 39,900 | 24,497 | 37,628 | 138,098 | 127,987 | 112,763 | |||
Other (deductions) income, net | 10,079 | 10,701 | 10,069 | |||||||||||
Interest (expense) income, net | -19,673 | -18,924 | -19,467 | |||||||||||
Income before income taxes | 128,504 | 119,764 | 103,365 | |||||||||||
Income tax (provision) benefit | -8,600 | -14,286 | -9,034 | -16,265 | -7,829 | -14,692 | -8,660 | -13,678 | -48,185 | -44,859 | -38,919 | |||
Net Income | 15,186 | 23,329 | 14,087 | 27,717 | 14,077 | 24,353 | 13,891 | 22,584 | 80,319 | 74,905 | 64,446 | |||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 1,697,666 | 1,579,060 | 1,697,666 | 1,579,060 | 1,586,924 | |||||||||
Capital expenditures | 92,676 | 119,047 | 98,435 | |||||||||||
Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 394,849 | 403,957 | 392,365 | |||||||||||
Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 221,720 | 181,462 | 139,727 | |||||||||||
Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 3,283 | 5,468 | 9,231 | |||||||||||
Transmission Investment [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 0 | 0 | 0 | |||||||||||
All Others [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 0 | 0 | 0 | |||||||||||
Operating Segments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 619,852 | 590,887 | 541,323 | |||||||||||
Operating Segments [Member] | Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 395,358 | 404,494 | 392,852 | |||||||||||
Depreciation and amortization | -26,933 | -25,780 | -26,031 | |||||||||||
Other operating expenses | -297,409 | -316,277 | -300,149 | |||||||||||
Operating Income (Loss) | 71,016 | 62,437 | 66,672 | |||||||||||
Other (deductions) income, net | 2,847 | 3,062 | 1,145 | |||||||||||
Interest (expense) income, net | -10,410 | -9,645 | -10,189 | |||||||||||
Income before income taxes | 63,453 | 55,854 | 57,628 | |||||||||||
Income tax (provision) benefit | -22,070 | -19,176 | -20,906 | |||||||||||
Net Income | 41,383 | 36,678 | 36,722 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 948,241 | 899,257 | 948,241 | 899,257 | 888,444 | |||||||||
Capital expenditures | 68,067 | 100,146 | 81,965 | |||||||||||
Operating Segments [Member] | Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 230,086 | 194,091 | 152,541 | |||||||||||
Depreciation and amortization | -6,308 | -5,898 | -5,569 | |||||||||||
Other operating expenses | -194,203 | -162,661 | -136,567 | |||||||||||
Operating Income (Loss) | 29,575 | 25,532 | 10,405 | |||||||||||
Other (deductions) income, net | -86 | 59 | 323 | |||||||||||
Interest (expense) income, net | -3,229 | -2,986 | -2,874 | |||||||||||
Income before income taxes | 26,260 | 22,605 | 7,854 | |||||||||||
Income tax (provision) benefit | -10,480 | -9,168 | -2,769 | |||||||||||
Net Income | 15,780 | 13,437 | 5,085 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 308,499 | 265,694 | 308,499 | 265,694 | 285,468 | |||||||||
Capital expenditures | 22,104 | 15,554 | 13,812 | |||||||||||
Operating Segments [Member] | Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 45,975 | 48,059 | 43,945 | |||||||||||
Depreciation and amortization | -7,407 | -7,156 | -7,107 | |||||||||||
Other operating expenses | -139 | -128 | -121 | |||||||||||
Operating Income (Loss) | 38,429 | 40,775 | 36,717 | |||||||||||
Other (deductions) income, net | 0 | 0 | 0 | |||||||||||
Interest (expense) income, net | -6,208 | -6,400 | -6,537 | |||||||||||
Income before income taxes | 32,221 | 34,375 | 30,180 | |||||||||||
Income tax (provision) benefit | -12,932 | -13,682 | -12,113 | |||||||||||
Net Income | 19,289 | 20,693 | 18,067 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 281,410 | 288,116 | 281,410 | 288,116 | 323,216 | |||||||||
Capital expenditures | 2,505 | 3,347 | 2,658 | |||||||||||
Operating Segments [Member] | Transmission Investment [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 0 | 0 | 0 | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||
Other operating expenses | 0 | -1 | 0 | |||||||||||
Operating Income (Loss) | 0 | -1 | 0 | |||||||||||
Other (deductions) income, net | 9,150 | 9,434 | 9,080 | |||||||||||
Interest (expense) income, net | 0 | 0 | 0 | |||||||||||
Income before income taxes | 9,150 | 9,433 | 9,080 | |||||||||||
Income tax (provision) benefit | -3,664 | -3,796 | -3,648 | |||||||||||
Net Income | 5,486 | 5,637 | 5,432 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 67,697 | 64,504 | 67,697 | 64,504 | 61,064 | |||||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
Operating Segments [Member] | All Others [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 0 | 0 | 0 | |||||||||||
Depreciation and amortization | -47 | -4 | 0 | |||||||||||
Other operating expenses | -875 | -752 | -1,031 | |||||||||||
Operating Income (Loss) | -922 | -756 | -1,031 | |||||||||||
Other (deductions) income, net | -1,832 | -1,854 | -479 | |||||||||||
Interest (expense) income, net | 174 | 107 | 133 | |||||||||||
Income before income taxes | -2,580 | -2,503 | -1,377 | |||||||||||
Income tax (provision) benefit | 961 | 963 | 517 | |||||||||||
Net Income | -1,619 | -1,540 | -860 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 441,109 | 431,436 | 441,109 | 431,436 | 413,291 | |||||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
Operating Segments [Member] | Assets Not Allocated [Member] | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 41,346 | 19,853 | 41,346 | 19,853 | 18,559 | |||||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
Consolidation/Elimination Entries [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | -51,567 | -55,757 | -48,015 | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||
Other operating expenses | 51,567 | 55,757 | 48,015 | |||||||||||
Operating Income (Loss) | 0 | 0 | 0 | |||||||||||
Other (deductions) income, net | 0 | 0 | 0 | |||||||||||
Interest (expense) income, net | 0 | 0 | 0 | |||||||||||
Income before income taxes | 0 | 0 | 0 | |||||||||||
Income tax (provision) benefit | 0 | 0 | 0 | |||||||||||
Net Income | 0 | 0 | 0 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | -390,636 | -389,800 | -390,636 | -389,800 | -403,118 | |||||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
Consolidation/Elimination Entries [Member] | Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 509 | 537 | 487 | |||||||||||
Consolidation/Elimination Entries [Member] | Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 8,366 | 12,629 | 12,814 | |||||||||||
Consolidation/Elimination Entries [Member] | Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 42,692 | 42,591 | 34,714 | |||||||||||
Consolidation/Elimination Entries [Member] | Transmission Investment [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 0 | 0 | 0 | |||||||||||
Consolidation/Elimination Entries [Member] | All Others [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 0 | 0 | 0 | |||||||||||
MGE [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 619,895 | 590,925 | 541,323 | |||||||||||
Depreciation and amortization | -40,648 | -38,834 | -38,707 | |||||||||||
Other operating expenses | -485,319 | [1] | -464,868 | [1] | -424,156 | [1] | ||||||||
Operating Income (Loss) | 93,928 | [1] | 87,223 | [1] | 78,460 | [1] | ||||||||
Other (deductions) income, net | 7,857 | [1] | 8,253 | [1] | 6,446 | [1] | ||||||||
Interest (expense) income, net | -19,847 | -19,031 | -19,600 | |||||||||||
Income tax (provision) benefit | -49,145 | -45,822 | -39,435 | |||||||||||
Net Income Including Noncontrolling Interest | 81,938 | 76,445 | 65,306 | |||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | -26,310 | -27,438 | -24,489 | |||||||||||
Net Income | 55,628 | 49,007 | 40,817 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 1,640,622 | 1,530,643 | 1,640,622 | 1,530,643 | 1,553,651 | |||||||||
Capital expenditures | 92,676 | 119,047 | 98,435 | |||||||||||
MGE [Member] | Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 394,871 | 403,980 | 392,365 | |||||||||||
MGE [Member] | Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 221,741 | 181,477 | 139,727 | |||||||||||
MGE [Member] | Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 3,283 | 5,468 | 9,231 | |||||||||||
MGE [Member] | Transmission Investment [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 0 | 0 | 0 | |||||||||||
MGE [Member] | Operating Segments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 619,895 | 590,925 | 541,323 | |||||||||||
MGE [Member] | Operating Segments [Member] | Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 395,358 | 404,494 | 392,852 | |||||||||||
Depreciation and amortization | -26,933 | -25,780 | -26,031 | |||||||||||
Other operating expenses | -319,175 | [1] | -335,059 | [1] | -320,701 | [1] | ||||||||
Operating Income (Loss) | 49,250 | [1] | 43,655 | [1] | 46,120 | [1] | ||||||||
Other (deductions) income, net | 2,543 | [1] | 2,668 | [1] | 791 | [1] | ||||||||
Interest (expense) income, net | -10,410 | -9,645 | -10,189 | |||||||||||
Net Income Including Noncontrolling Interest | 41,383 | 36,678 | 36,722 | |||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | |||||||||||
Net Income | 41,383 | 36,678 | 36,722 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 948,241 | 899,257 | 948,241 | 899,257 | 888,444 | |||||||||
Capital expenditures | 68,067 | 100,146 | 81,965 | |||||||||||
MGE [Member] | Operating Segments [Member] | Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 230,086 | 194,091 | 152,541 | |||||||||||
Depreciation and amortization | -6,308 | -5,898 | -5,569 | |||||||||||
Other operating expenses | -204,597 | [1] | -171,717 | [1] | -139,236 | [1] | ||||||||
Operating Income (Loss) | 19,181 | [1] | 16,476 | [1] | 7,736 | [1] | ||||||||
Other (deductions) income, net | -172 | [1] | -53 | [1] | 223 | [1] | ||||||||
Interest (expense) income, net | -3,229 | -2,986 | -2,874 | |||||||||||
Net Income Including Noncontrolling Interest | 15,780 | 13,437 | 5,085 | |||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | |||||||||||
Net Income | 15,780 | 13,437 | 5,085 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 308,499 | 265,694 | 308,499 | 265,694 | 285,468 | |||||||||
Capital expenditures | 22,104 | 15,554 | 13,812 | |||||||||||
MGE [Member] | Operating Segments [Member] | Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 45,975 | 48,059 | 43,945 | |||||||||||
Depreciation and amortization | -7,407 | -7,156 | -7,107 | |||||||||||
Other operating expenses | -13,071 | [1] | -13,810 | [1] | -12,234 | [1] | ||||||||
Operating Income (Loss) | 25,497 | [1] | 27,093 | [1] | 24,604 | [1] | ||||||||
Other (deductions) income, net | 0 | [1] | 0 | [1] | 0 | [1] | ||||||||
Interest (expense) income, net | -6,208 | -6,400 | -6,537 | |||||||||||
Net Income Including Noncontrolling Interest | 19,289 | 20,693 | 18,067 | |||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | |||||||||||
Net Income | 19,289 | 20,693 | 18,067 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 281,360 | 288,066 | 281,360 | 288,066 | 323,166 | |||||||||
Capital expenditures | 2,505 | 3,347 | 2,658 | |||||||||||
MGE [Member] | Operating Segments [Member] | Transmission Investment [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 0 | 0 | 0 | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||
Other operating expenses | 0 | [1] | -1 | [1] | 0 | [1] | ||||||||
Operating Income (Loss) | 0 | [1] | -1 | [1] | 0 | [1] | ||||||||
Other (deductions) income, net | 5,486 | [1] | 5,638 | [1] | 5,432 | [1] | ||||||||
Interest (expense) income, net | 0 | 0 | 0 | |||||||||||
Net Income Including Noncontrolling Interest | 5,486 | 5,637 | 5,432 | |||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | |||||||||||
Net Income | 5,486 | 5,637 | 5,432 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 67,697 | 64,504 | 67,697 | 64,504 | 61,064 | |||||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
MGE [Member] | Operating Segments [Member] | Assets Not Allocated [Member] | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 41,346 | 19,853 | 41,346 | 19,853 | 18,559 | |||||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | -51,524 | -55,719 | -48,015 | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||
Other operating expenses | 51,524 | [1] | 55,719 | [1] | 48,015 | [1] | ||||||||
Operating Income (Loss) | 0 | [1] | 0 | [1] | 0 | [1] | ||||||||
Other (deductions) income, net | 0 | [1] | 0 | [1] | 0 | [1] | ||||||||
Interest (expense) income, net | 0 | 0 | 0 | |||||||||||
Net Income Including Noncontrolling Interest | 0 | 0 | 0 | |||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | -26,310 | -27,438 | -24,489 | |||||||||||
Net Income | -26,310 | -27,438 | -24,489 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | -6,521 | -6,731 | -6,521 | -6,731 | -23,050 | |||||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | -487 | 514 | 487 | |||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 8,345 | 12,614 | 12,814 | |||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 42,692 | 42,591 | 34,714 | |||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Transmission Investment [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | $0 | $0 | $0 | |||||||||||
[1] | *Amounts are shown net of the related tax expense, consistent with the presentation on the consolidated MGE Income Statement. |
Quarterly_Summary_of_Operation2
Quarterly Summary of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Revenues: | |||||||||||
Regulated electric revenues | $86,431 | $112,869 | $96,697 | $98,852 | $93,781 | $119,836 | $96,846 | $93,494 | $394,849 | $403,957 | $392,365 |
Regulated gas revenues | 58,385 | 21,404 | 31,218 | 110,713 | 60,089 | 18,864 | 30,042 | 72,467 | 221,720 | 181,462 | 139,727 |
Nonregulated revenues | 891 | 862 | 850 | 680 | 1,393 | 1,399 | 1,400 | 1,276 | 3,283 | 5,468 | 9,231 |
Total Operating Revenues | 145,707 | 135,135 | 128,765 | 210,245 | 155,263 | 140,099 | 128,288 | 167,237 | 619,852 | 590,887 | 541,323 |
Operating expenses | 116,141 | 95,015 | 104,324 | 166,274 | 129,301 | 100,199 | 103,791 | 129,609 | 481,754 | 462,900 | 428,560 |
Operating Income (Loss) | 29,566 | 40,120 | 24,441 | 43,971 | 25,962 | 39,900 | 24,497 | 37,628 | 138,098 | 127,987 | 112,763 |
Interest and other income, net | -5,780 | -2,505 | -1,320 | 11 | -4,056 | -855 | -1,946 | -1,366 | |||
Income tax provision | -8,600 | -14,286 | -9,034 | -16,265 | -7,829 | -14,692 | -8,660 | -13,678 | -48,185 | -44,859 | -38,919 |
Net Income | $15,186 | $23,329 | $14,087 | $27,717 | $14,077 | $24,353 | $13,891 | $22,584 | $80,319 | $74,905 | $64,446 |
Earnings per common share | $0.44 | $0.67 | $0.41 | $0.80 | $0.41 | $0.70 | $0.40 | $0.65 | $2.32 | $2.16 | $1.86 |
Dividends per share | $0.28 | $0.28 | $0.27 | $0.27 | $0.27 | $0.27 | $0.26 | $0.26 | $1.11 | $1.07 | $1.04 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (ATC [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ATC [Member] | |||
Related party transaction [Line Items] | |||
Related party expenses | $26.80 | $27.70 | $25.30 |
Due from Related Parties | $0.10 | $0.20 | $0.20 |
Schedule_I_Condensed_Parent_Co
Schedule I - Condensed Parent Company Finanical Statements (Details-Comprehensive Income Statement) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Expenses: | |||||||||||
Other operations and maintenance | $161,703 | $171,248 | $172,996 | ||||||||
Total Operating Expenses | 116,141 | 95,015 | 104,324 | 166,274 | 129,301 | 100,199 | 103,791 | 129,609 | 481,754 | 462,900 | 428,560 |
Operating Income (Loss) | 29,566 | 40,120 | 24,441 | 43,971 | 25,962 | 39,900 | 24,497 | 37,628 | 138,098 | 127,987 | 112,763 |
Equity in earnings of investments | 9,150 | 9,434 | 9,079 | ||||||||
Income before income taxes | 128,504 | 119,764 | 103,365 | ||||||||
Income tax provision | -8,600 | -14,286 | -9,034 | -16,265 | -7,829 | -14,692 | -8,660 | -13,678 | -48,185 | -44,859 | -38,919 |
Net Income | 15,186 | 23,329 | 14,087 | 27,717 | 14,077 | 24,353 | 13,891 | 22,584 | 80,319 | 74,905 | 64,446 |
Other comprehensive income/(loss), net of tax: | |||||||||||
Unrealized gain (loss) on available for sale securities, net of tax | 81 | 283 | -18 | ||||||||
Comprehensive Income | 80,400 | 75,188 | 64,428 | ||||||||
MGE Energy [Member] | |||||||||||
Operating Expenses: | |||||||||||
Other operations and maintenance | 689 | 613 | 649 | ||||||||
Total Operating Expenses | 689 | 613 | 649 | ||||||||
Operating Income (Loss) | -689 | -613 | -649 | ||||||||
Equity in earnings of investments | 81,811 | 76,362 | 65,132 | ||||||||
Other income/(loss), net | -1,879 | -1,863 | -496 | ||||||||
Other interest | 93 | 55 | 45 | ||||||||
Income before income taxes | 79,336 | 73,941 | 64,032 | ||||||||
Income tax provision | 983 | 964 | 414 | ||||||||
Net Income | 80,319 | 74,905 | 64,446 | ||||||||
Other comprehensive income/(loss), net of tax: | |||||||||||
Unrealized gain (loss) on available for sale securities, net of tax | 81 | 283 | -18 | ||||||||
Comprehensive Income | $80,400 | $75,188 | $64,428 |
Schedule_I_Condensed_Parent_Co1
Schedule I - Condensed Parent Company Finanical Statements (Details-Comprehensive Income Statement Parentheticals) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Income Statements, Captions [Line Items] | |||
Unrealized gain (loss) on available-for-sale securities, taxes | $54 | $189 | ($12) |
MGE Energy [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Unrealized gain (loss) on available-for-sale securities, taxes | $54 | $189 | ($12) |
Schedule_I_Condensed_Parent_Co2
Schedule I - Condensed Parent Company Finanical Statements (Details-Cash Flow Statement) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Flows Provided by (Used for) Operating Activities | $128,762 | $140,267 | $146,004 |
Investing Activities: | |||
Other investing | -1,297 | -1,205 | -496 |
Cash Provided by (Used for) Investing Activities | -96,158 | -121,922 | -101,353 |
Financing Activities: | |||
Cash dividends paid on common stock | -38,429 | -37,107 | -35,951 |
Change in short-term debt | 7,000 | 0 | 0 |
Other financing | -130 | -770 | -844 |
Cash Provided by (Used for) Financing Activities | -35,662 | 4,111 | -39,463 |
Change in Cash and Cash Equivalents: | -3,058 | 22,456 | 5,188 |
Cash and cash equivalents at beginning of period | 68,813 | 46,357 | 41,169 |
Cash and cash equivalents at end of period | 65,755 | 68,813 | 46,357 |
MGE Energy [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Flows Provided by (Used for) Operating Activities | 48,165 | 53,952 | 49,819 |
Investing Activities: | |||
Other investing | -2,422 | -2,425 | -1,558 |
Cash Provided by (Used for) Investing Activities | -2,422 | -2,425 | -1,558 |
Financing Activities: | |||
Cash dividends paid on common stock | -38,429 | -37,107 | -35,951 |
Other financing | -89 | -97 | -49 |
Cash Provided by (Used for) Financing Activities | -38,518 | -37,204 | -36,000 |
Change in Cash and Cash Equivalents: | 7,225 | 14,323 | 12,261 |
Cash and cash equivalents at beginning of period | 51,204 | 36,881 | 24,620 |
Cash and cash equivalents at end of period | $58,429 | $51,204 | $36,881 |
Schedule_I_Condensed_Parent_Co3
Schedule I - Condensed Parent Company Finanical Statements (Details-Balance Sheet) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Current Assets: | ||||
Cash and cash equivalents | $65,755 | $68,813 | $46,357 | $41,169 |
Accounts receivable, net: | ||||
Other current assets | 10,711 | 8,225 | ||
Total Current Assets | 253,959 | 220,601 | ||
Other deferred assets and other | 4,837 | 5,853 | ||
Investments: | ||||
Other investments | 159 | 0 | ||
Total investments | 71,760 | 67,952 | ||
Total Assets | 1,697,666 | 1,579,060 | 1,586,924 | |
Current Liabilities: | ||||
Other current liabilities | 13,931 | 9,489 | ||
Total Current Liabilities | 89,996 | 96,666 | ||
Other Credits: | ||||
Deferred income taxes | 342,045 | 284,791 | ||
Total Other Credits | 553,013 | 465,470 | ||
Shareholders' Equity: | ||||
Retained income | 308,007 | 266,197 | ||
Other comprehensive income (loss) | 458 | 377 | ||
Total Common Shareholders' Equity | 659,401 | 617,510 | 579,429 | 550,952 |
Commitments and contingencies (see Footnote 3) | 0 | 0 | ||
Total Liabilities and Capitalization | 1,697,666 | 1,579,060 | ||
MGE Energy [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 58,429 | 51,204 | 36,881 | 24,620 |
Accounts receivable, net: | ||||
Accounts receivable from affiliates | 64 | 125 | ||
Other current assets | 2,809 | 1,015 | ||
Total Current Assets | 61,302 | 52,344 | ||
Other deferred assets and other | 140 | 157 | ||
Investments: | ||||
Investments in affiliates | 619,563 | 583,435 | ||
Other investments | 1,177 | 948 | ||
Total investments | 620,740 | 584,383 | ||
Total Assets | 682,182 | 636,884 | ||
Current Liabilities: | ||||
Accounts payable to affiliates | 7,096 | 530 | ||
Accrued taxes | 663 | 4,297 | ||
Other current liabilities | 2,601 | 3,076 | ||
Total Current Liabilities | 10,360 | 7,903 | ||
Other Credits: | ||||
Deferred income taxes | 7,125 | 5,646 | ||
Accounts payable to affiliates | 5,296 | 5,825 | ||
Total Other Credits | 12,421 | 11,471 | ||
Shareholders' Equity: | ||||
Common shareholders' equity | 350,936 | 350,936 | ||
Retained income | 308,007 | 266,197 | ||
Other comprehensive income (loss) | 458 | 377 | ||
Total Common Shareholders' Equity | 659,401 | 617,510 | ||
Commitments and contingencies (see Footnote 3) | 0 | 0 | ||
Total Liabilities and Capitalization | $682,182 | $636,884 |
Schedule_I_Condensed_Parent_Co4
Schedule I - Condensed Parent Company Finanical Statements (Details-Notes 1) (Line of Credit [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Credit facilities [Line Items] | ||||||
Available lines of credit | $150,000,000 | [1] | $150,000,000 | [1] | $115,000,000 | [1] |
MGE Energy [Member] | MGE Energy $50 million unsecured commiteed revolving line of credit | ||||||
Credit facilities [Line Items] | ||||||
Available lines of credit | 50,000,000 | |||||
Line of credit, borrowings outstanding | $0 | |||||
[1] | MGE Energy short-term borrowings include MGE Energy and MGE lines of credit and MGE commercial paper. |
Schedule_I_Condensed_Parent_Co5
Schedule I - Condensed Parent Company Finanical Statements (Details-Notes 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | $47,859,000 | $52,366,000 | $44,343,000 |
First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||
Dividend Restrictions | |||
Debt covenant, allowable amount available for payment of dividends | 334,800,000 | ||
MGE [Member] | |||
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | 26,500,000 | 25,000,000 | 20,404,000 |
Dividend Restrictions | |||
Dividend restrictions, minimum common equity ratio | 0.55 | ||
Common equity ratio | 0.569 | ||
MGE [Member] | First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||
Dividend Restrictions | |||
Debt covenant, allowable amount available for payment of dividends | 334,800,000 | ||
MGE Construct [Member] | |||
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | 0 | 0 | 239,000 |
MGE Power Elm Road [Member] | |||
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | 13,500,000 | 17,300,000 | 16,000,000 |
MGE Power [Member] | |||
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | 0 | 0 | 200,000 |
MGE Power West Campus [Member] | |||
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | 6,000,000 | 9,250,000 | 7,500,000 |
MGE Transco [Member] | |||
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | $1,859,000 | $816,000 | $0 |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Valuation and Qualifying Accounts [Roll Forward] | |||
Balance at beginning of period | $4,969,711 | $4,816,118 | $4,100,333 |
Charged to costs and expenses | 1,898,300 | 2,373,342 | 2,825,300 |
Charged to other accounts | 15,092 | 37,200 | 44,400 |
Net accounts written off | -2,134,446 | -2,256,949 | -2,153,915 |
Balance at end of period | $4,748,657 | $4,969,711 | $4,816,118 |