Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 01, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Line Items] | |||
Entity Registrant Name | MGE Energy Inc | ||
Entity Central Index Key | 1,161,728 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Trading Symbol | MGEE | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,338,879,665 | ||
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 | 61,339 | ||
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 Sta
MGE Energy Inc Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Revenues: | |||
Regulated electric revenues | $ 412,528 | $ 394,849 | $ 403,957 |
Regulated gas revenues | 143,737 | 221,720 | 181,462 |
Nonregulated revenues | 7,763 | 3,283 | 5,468 |
Total Operating Revenues | 564,028 | 619,852 | 590,887 |
Operating Expenses: | |||
Fuel for electric generation | 53,858 | 42,828 | 46,062 |
Purchased power | 81,224 | 73,232 | 80,830 |
Cost of gas sold | 76,109 | 143,644 | 107,315 |
Other operations and maintenance | 164,478 | 161,703 | 171,248 |
Depreciation and amortization | 44,225 | 40,695 | 38,838 |
Other general taxes | 19,879 | 19,652 | 18,607 |
Total Operating Expenses | 439,773 | 481,754 | 462,900 |
Operating Income (Loss) | 124,255 | 138,098 | 127,987 |
Other income, net | 8,613 | 10,079 | 10,701 |
Interest expense, net | (20,162) | (19,673) | (18,924) |
Income before income taxes | 112,706 | 128,504 | 119,764 |
Income tax provision | (41,363) | (48,185) | (44,859) |
Net Income | $ 71,343 | $ 80,319 | $ 74,905 |
Earnings Per Share of Common Stock (basic and diluted) | $ 2.06 | $ 2.32 | $ 2.16 |
Dividends per share of common stock | $ 1.16 | $ 1.11 | $ 1.07 |
Weighted Average Shares Outstanding (basic and diluted) | 34,668 | 34,668 | 34,668 |
Madison Gas and Electric Compan
Madison Gas and Electric Company Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Operating Revenues: | ||||
Regulated electric revenues | $ 412,528 | $ 394,849 | $ 403,957 | |
Regulated gas revenues | 143,737 | 221,720 | 181,462 | |
Nonregulated revenues | 7,763 | 3,283 | 5,468 | |
Total Operating Revenues | 564,028 | 619,852 | 590,887 | |
Operating Expenses: | ||||
Fuel for electric generation | 53,858 | 42,828 | 46,062 | |
Purchased power | 81,224 | 73,232 | 80,830 | |
Cost of gas sold | 76,109 | 143,644 | 107,315 | |
Other operations and maintenance | 164,478 | 161,703 | 171,248 | |
Depreciation and amortization | 44,225 | 40,695 | 38,838 | |
Other general taxes | 19,879 | 19,652 | 18,607 | |
Total Operating Expenses | 439,773 | 481,754 | 462,900 | |
Operating Income (Loss) | 124,255 | 138,098 | 127,987 | |
Other Income and Deductions: | ||||
Equity in earnings in ATC | 7,728 | 9,150 | 9,434 | |
Total Other Income and Deductions | 8,613 | 10,079 | 10,701 | |
Interest Expense: | ||||
Net Interest Expense | 20,162 | 19,673 | 18,924 | |
Net Income | 71,343 | 80,319 | 74,905 | |
MGE [Member] | ||||
Operating Revenues: | ||||
Regulated electric revenues | 412,550 | 394,871 | 403,980 | |
Regulated gas revenues | 143,752 | 221,741 | 181,477 | |
Nonregulated revenues | 7,763 | 3,283 | 5,468 | |
Total Operating Revenues | 564,065 | 619,895 | 590,925 | |
Operating Expenses: | ||||
Fuel for electric generation | 53,866 | 42,836 | 46,070 | |
Purchased power | 81,237 | 73,245 | 80,844 | |
Cost of gas sold | 76,124 | 143,665 | 107,330 | |
Other operations and maintenance | 163,622 | 160,831 | 170,498 | |
Depreciation and amortization | 44,178 | 40,648 | 38,834 | |
Other general taxes | 19,879 | 19,652 | 18,607 | |
Income tax provision | 38,159 | 45,090 | 41,519 | |
Total Operating Expenses | 477,065 | 525,967 | 503,702 | |
Operating Income (Loss) | [1] | 87,000 | 93,928 | 87,223 |
Other Income and Deductions: | ||||
AFUDC - equity funds | 712 | 3,466 | 3,140 | |
Equity in earnings in ATC | 7,728 | 9,150 | 9,434 | |
Income tax provision | (3,247) | (4,055) | (4,303) | |
Other deductions, net | (345) | (704) | (18) | |
Total Other Income and Deductions | [1] | 4,848 | 7,857 | 8,253 |
Income before interest expense | 91,848 | 101,785 | 95,476 | |
Interest Expense: | ||||
Interest on long-term debt | 20,520 | 20,927 | 20,087 | |
Other interest, net | 94 | 62 | (21) | |
AFUDC - borrowed funds | (231) | (1,142) | (1,035) | |
Net Interest Expense | 20,383 | 19,847 | 19,031 | |
Net Income Including Noncontrolling Interest | 71,465 | 81,938 | 76,445 | |
Less Net Income Attributable to Noncontrolling Interest, net of tax | (26,097) | (26,310) | (27,438) | |
Net Income | $ 45,368 | $ 55,628 | $ 49,007 | |
[1] | *Amounts are shown net of the related tax expense, consistent with the presentation on the MGE Consolidated Statements of Income. |
MGE Energy Inc Consolidated St4
MGE Energy Inc Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Other Comprehensive Income [Abstract] | |||||||||||
Net Income | $ 11,232 | $ 28,354 | $ 13,479 | $ 18,278 | $ 15,186 | $ 23,329 | $ 14,087 | $ 27,717 | $ 71,343 | $ 80,319 | $ 74,905 |
Other comprehensive income/(loss), net of tax: | |||||||||||
Unrealized (loss) gain on available for sale securities, net of tax | (101) | 81 | 283 | ||||||||
Comprehensive Income | $ 71,242 | $ 80,400 | $ 75,188 |
Madison Gas and Electric Compa5
Madison Gas and Electric Company Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other comprehensive income (loss), net of tax: | |||
Unrealized (loss) gain on available for sale securities, net of tax | $ (101) | $ 81 | $ 283 |
Comprehensive Income | 71,242 | 80,400 | 75,188 |
MGE [Member] | |||
Net Income | 71,465 | 81,938 | 76,445 |
Other comprehensive income (loss), net of tax: | |||
Unrealized (loss) gain on available for sale securities, net of tax | (121) | (48) | 188 |
Comprehensive Income Including Noncontrolling Interest | 71,344 | 81,890 | 76,633 |
Less: Comprehensive Income Attributable to Noncontrolling Interest, net of tax | (26,097) | (26,310) | (27,438) |
Comprehensive Income | $ 45,247 | $ 55,580 | $ 49,195 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unrealized (loss) gain on available-for-sale securities, taxes | $ (67) | $ 54 | $ 189 |
MGE [Member] | |||
Unrealized (loss) gain on available-for-sale securities, taxes | $ (81) | $ (33) | $ 126 |
MGE Energy Inc Consolidated St7
MGE Energy Inc Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities: | |||
Net Income | $ 71,343 | $ 80,319 | $ 74,905 |
Items not affecting cash: | |||
Depreciation and amortization | 44,225 | 40,695 | 38,838 |
Deferred income taxes | 21,927 | 49,884 | 38,365 |
Provision for doubtful receivables | 596 | 1,898 | 2,448 |
Employee benefit plan expenses | 3,333 | (1,080) | 13,303 |
Equity earnings in ATC | (7,728) | (9,150) | (9,434) |
Other items | 721 | 729 | 117 |
Changes in working capital items: | |||
Trade and other receivables (change) | 4,508 | 2,115 | (3,827) |
Inventories (change) | (2,646) | (10,399) | 2,488 |
Unbilled revenues (change) | 6,254 | 720 | (3,720) |
Prepaid taxes (change) | 3,658 | (19,804) | 414 |
Other current assets (change) | 978 | (5,693) | 2,514 |
Accounts payable (change) | (3,499) | 2,756 | 858 |
Other current liabilities (change) | (597) | (4,195) | 6,271 |
Dividend income from ATC | 6,645 | 7,740 | 7,404 |
Cash contributions to pension and other postretirement plans | (13,676) | (3,321) | (34,765) |
Debt make-whole premium | 0 | 0 | (6,757) |
Other noncurrent items, net | 5,143 | (4,452) | 10,845 |
Cash Provided by (Used for) Operating Activities | 141,185 | 128,762 | 140,267 |
Investing Activities: | |||
Capital expenditures | (72,030) | (92,676) | (119,047) |
Capital contributions to investments | (1,053) | (2,185) | (1,660) |
Purchase of investment - land | 0 | 0 | (10) |
Other investing | (230) | (1,297) | (1,205) |
Cash Provided by (Used for) Investing Activities | (73,313) | (96,158) | (121,922) |
Financing Activities: | |||
Cash dividends paid on common stock | (40,043) | (38,429) | (37,107) |
Repayment of long-term debt | (4,182) | (4,103) | (43,012) |
Issuance of long-term debt | 0 | 0 | 85,000 |
(Decrease) increase in short-term debt | (7,000) | 7,000 | 0 |
Other financing | (1,018) | (130) | (770) |
Cash Provided by (Used for) Financing Activities | (52,243) | (35,662) | 4,111 |
Change in cash and cash equivalents: | 15,629 | (3,058) | 22,456 |
Cash and cash equivalents at beginning of period | 65,755 | 68,813 | 46,357 |
Cash and cash equivalents at end of period | 81,384 | 65,755 | 68,813 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 19,636 | 20,478 | 17,991 |
Income taxes paid | 23,800 | 19,579 | 8,046 |
Income taxes received | (10,130) | (644) | (1,339) |
Significant noncash investing activities: | |||
Accrued capital expenditures | $ 3,963 | $ 1,569 | $ 9,892 |
Madison Gas and Electric Compa8
Madison Gas and Electric Company Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Items not affecting cash: | |||
Depreciation and amortization | $ 44,225 | $ 40,695 | $ 38,838 |
Deferred income taxes | 21,927 | 49,884 | 38,365 |
Provision for doubtful receivables | 596 | 1,898 | 2,448 |
Employee benefit plan expenses | 3,333 | (1,080) | 13,303 |
Equity earnings in ATC | (7,728) | (9,150) | (9,434) |
Other items | 721 | 729 | 117 |
Changes in working capital items: | |||
Trade and other receivables (change) | 4,508 | 2,115 | (3,827) |
Inventories (change) | (2,646) | (10,399) | 2,488 |
Unbilled revenues (change) | 6,254 | 720 | (3,720) |
Prepaid taxes (change) | 3,658 | (19,804) | 414 |
Other current assets (change) | 978 | (5,693) | 2,514 |
Accounts payable (change) | (3,499) | 2,756 | 858 |
Other current liabilities (change) | (597) | (4,195) | 6,271 |
Dividend income from ATC | 6,645 | 7,740 | 7,404 |
Cash contributions to pension and other postretirement plans | (13,676) | (3,321) | (34,765) |
Debt make-whole premium | 0 | 0 | (6,757) |
Other noncurrent items, net | 5,143 | (4,452) | 10,845 |
Cash Provided by (Used for) Operating Activities | 141,185 | 128,762 | 140,267 |
Investing Activities: | |||
Capital expenditures | (72,030) | (92,676) | (119,047) |
Capital contributions to investments | (1,053) | (2,185) | (1,660) |
Other investing | (230) | (1,297) | (1,205) |
Cash Provided by (Used for) Investing Activities | (73,313) | (96,158) | (121,922) |
Financing Activities: | |||
Repayment of long-term debt | (4,182) | (4,103) | (43,012) |
Issuance of long-term debt | 0 | 0 | 85,000 |
(Decrease) increase in short-term debt | (7,000) | 7,000 | 0 |
Other financing | (1,018) | (130) | (770) |
Cash Provided by (Used for) Financing Activities | (52,243) | (35,662) | 4,111 |
Change in cash and cash equivalents: | 15,629 | (3,058) | 22,456 |
Cash and cash equivalents at beginning of period | 65,755 | 68,813 | 46,357 |
Cash and cash equivalents at end of period | 81,384 | 65,755 | 68,813 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 19,636 | 20,478 | 17,991 |
Income taxes paid | 23,800 | 19,579 | 8,046 |
Income taxes received | (10,130) | (644) | (1,339) |
Significant noncash investing activities: | |||
Accrued capital expenditures | 3,963 | 1,569 | 9,892 |
MGE [Member] | |||
Operating Activities: | |||
Net Income | 71,465 | 81,938 | 76,445 |
Items not affecting cash: | |||
Depreciation and amortization | 44,178 | 40,648 | 38,834 |
Deferred income taxes | 18,843 | 49,603 | 37,462 |
Provision for doubtful receivables | 596 | 1,898 | 2,448 |
Employee benefit plan expenses | 3,333 | (1,080) | 13,303 |
Equity earnings in ATC | (7,728) | (9,150) | (9,434) |
Other items | 1,223 | 1,280 | 651 |
Changes in working capital items: | |||
Trade and other receivables (change) | 11,079 | (4,455) | (3,699) |
Inventories (change) | (2,647) | (10,398) | 2,488 |
Unbilled revenues (change) | 6,254 | 720 | (3,720) |
Prepaid taxes (change) | 4,824 | (15,169) | (373) |
Other current assets (change) | 976 | (5,693) | 2,518 |
Accounts payable (change) | (3,587) | 2,741 | 126 |
Accrued interest and taxes (change) | (18) | (1,001) | 2,065 |
Other current liabilities (change) | 1,885 | (3,144) | 2,975 |
Dividend income from ATC | 6,645 | 7,740 | 7,404 |
Cash contributions to pension and other postretirement plans | (13,677) | (3,321) | (34,765) |
Debt make-whole premium | 0 | 0 | (6,757) |
Other noncurrent items, net | 4,816 | (4,619) | 10,713 |
Cash Provided by (Used for) Operating Activities | 148,460 | 128,538 | 138,684 |
Investing Activities: | |||
Capital expenditures | (72,030) | (92,676) | (119,047) |
Capital contributions to investments | (710) | (1,775) | (1,420) |
Other investing | (180) | (1,146) | (130) |
Cash Provided by (Used for) Investing Activities | (72,920) | (95,597) | (120,597) |
Financing Activities: | |||
Cash dividends paid to parent by MGE | (30,000) | (26,500) | (25,000) |
Distributions to parent from noncontrolling interest | (14,708) | (21,359) | (27,365) |
Equity contribution received by noncontrolling interest | 3,230 | 1,775 | 1,420 |
Repayment of long-term debt | (4,182) | (4,103) | (43,012) |
Issuance of long-term debt | 0 | 0 | 85,000 |
(Decrease) increase in short-term debt | (7,000) | 7,000 | 0 |
Other financing | (682) | 0 | (672) |
Cash Provided by (Used for) Financing Activities | (53,342) | (43,187) | (9,629) |
Change in cash and cash equivalents: | 22,198 | (10,246) | 8,458 |
Cash and cash equivalents at beginning of period | 4,562 | 14,808 | 6,350 |
Cash and cash equivalents at end of period | 26,760 | 4,562 | 14,808 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 19,636 | 20,478 | 17,991 |
Income taxes paid | 29 | 67 | 144 |
Income taxes received | 0 | (644) | 0 |
Significant noncash investing activities: | |||
Accrued capital expenditures | $ 3,963 | $ 1,569 | $ 9,892 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Current Assets: | ||||
Cash and cash equivalents | $ 81,384 | $ 65,755 | ||
Accounts receivable, less reserves | 37,112 | 41,614 | ||
Other accounts receivables, less reserves | 7,477 | 7,610 | ||
Unbilled revenues | 25,008 | 31,262 | ||
Materials and supplies, at average cost | 19,155 | 17,121 | ||
Fossil fuel | 13,110 | 8,098 | ||
Stored natural gas, at average cost | 16,145 | 21,036 | ||
Prepaid taxes | 35,252 | 38,910 | ||
Regulatory assets - current | 9,538 | 8,360 | ||
Other current assets | 10,570 | 10,711 | ||
Total Current Assets | 254,751 | 250,477 | ||
Other long-term receivables | 5,045 | 2,181 | ||
Regulatory assets | 148,199 | 156,823 | ||
Other deferred assets and other | 5,602 | 4,837 | ||
Property, Plant, and Equipment: | ||||
Property, plant, and equipment, net | 1,217,094 | 1,189,077 | ||
Construction work in progress | 26,351 | 19,029 | ||
Total Property, Plant, and Equipment | 1,243,445 | 1,208,106 | ||
Investments | 73,631 | 71,760 | ||
Total Assets | 1,730,673 | 1,694,184 | [1] | |
Current Liabilities: | ||||
Long-term debt due within one year | 4,266 | 4,182 | ||
Short-term debt | [2] | 0 | 7,000 | |
Accounts payable | 40,830 | 41,655 | ||
Accrued interest and taxes | 5,067 | 5,086 | ||
Accrued payroll related items | 11,215 | 11,241 | ||
Regulatory liabilities - current | 9,515 | 0 | ||
Derivative liabilities | 8,343 | 6,901 | ||
Other current liabilities | 4,910 | 13,931 | ||
Total Current Liabilities | 84,146 | 89,996 | ||
Other Credits: | ||||
Deferred income taxes | 360,785 | 338,563 | [1] | |
Investment tax credit - deferred | 1,050 | 1,223 | ||
Regulatory liabilities | 20,785 | 22,715 | ||
Accrued pension and other postretirement benefits | 75,680 | 90,201 | ||
Derivative liabilities | 44,935 | 46,560 | ||
Other deferred liabilities and other | 61,820 | 50,269 | ||
Total Other Credits | 565,055 | 549,531 | [1] | |
Common shareholders' equity: | ||||
Common stock | 34,668 | 34,668 | ||
Additional paid-in capital | 316,268 | 316,268 | ||
Retained earnings | 339,165 | 308,007 | ||
Accumulated other comprehensive income, net of tax | 357 | 458 | ||
Total Common Shareholders' Equity | 690,458 | 659,401 | ||
Long-term debt | 391,014 | 395,256 | ||
Total Capitalization | 1,081,472 | 1,054,657 | ||
Commitments and contingencies (see Footnote 18) | 0 | 0 | ||
Total Liabilities and Capitalization | 1,730,673 | 1,694,184 | [1] | |
MGE [Member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 26,760 | 4,562 | ||
Accounts receivable, less reserves | 37,112 | 41,614 | ||
Affiliate receivables | 542 | 7,112 | ||
Other accounts receivables, less reserves | 7,390 | 7,524 | ||
Unbilled revenues | 25,008 | 31,262 | ||
Materials and supplies, at average cost | 19,155 | 17,121 | ||
Fossil fuel | 13,110 | 8,098 | ||
Stored natural gas, at average cost | 16,145 | 21,035 | ||
Prepaid taxes | 34,279 | 39,103 | ||
Regulatory assets - current | 9,538 | 8,360 | ||
Other current assets | 10,544 | 10,683 | ||
Total Current Assets | 199,583 | 196,474 | ||
Affiliate receivable long-term | 4,766 | 5,295 | ||
Regulatory assets | 148,199 | 156,823 | ||
Other deferred assets and other | 8,486 | 4,977 | ||
Property, Plant, and Equipment: | ||||
Property, plant, and equipment, net | 1,216,415 | 1,188,351 | ||
Construction work in progress | 26,351 | 19,029 | ||
Total Property, Plant, and Equipment | 1,242,766 | 1,207,380 | ||
Investments | 69,984 | 68,402 | ||
Total Assets | 1,673,784 | 1,639,351 | [1] | |
Current Liabilities: | ||||
Long-term debt due within one year | 4,266 | 4,182 | ||
Short-term debt | 0 | 7,000 | ||
Accounts payable | 40,742 | 41,654 | ||
Accrued interest and taxes | 5,021 | 5,039 | ||
Accrued payroll related items | 11,215 | 11,241 | ||
Regulatory liabilities - current | 9,515 | 0 | ||
Derivative liabilities | 8,343 | 6,901 | ||
Other current liabilities | 4,791 | 11,350 | ||
Total Current Liabilities | 83,893 | 87,367 | ||
Other Credits: | ||||
Deferred income taxes | 352,626 | 333,502 | [1] | |
Investment tax credit - deferred | 1,050 | 1,223 | ||
Regulatory liabilities | 20,785 | 22,715 | ||
Accrued pension and other postretirement benefits | 75,680 | 90,201 | ||
Derivative liabilities | 44,935 | 46,560 | ||
Other deferred liabilities and other | 61,817 | 50,267 | ||
Total Other Credits | 556,893 | 544,468 | [1] | |
Common shareholders' equity: | ||||
Common stock | 17,348 | 17,348 | ||
Additional paid-in capital | 192,417 | 192,417 | ||
Retained earnings | 291,888 | 276,662 | ||
Accumulated other comprehensive income, net of tax | 23 | 144 | ||
Total Common Shareholders' Equity | 501,676 | 486,571 | ||
Noncontrolling interest | 140,308 | 125,689 | ||
Total Equity | 641,984 | 612,260 | ||
Long-term debt | 391,014 | 395,256 | ||
Total Capitalization | 1,032,998 | 1,007,516 | ||
Commitments and contingencies (see Footnote 18) | 0 | 0 | ||
Total Liabilities and Capitalization | $ 1,673,784 | $ 1,639,351 | [1] | |
[1] | Reflects retrospective application of new accounting pronouncement. See Footnote 12 for additional information. | |||
[2] | 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 ($) shares in Thousands, $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables, Net | ||
Reserve for uncollectible accounts receivable | $ 3,052 | $ 4,329 |
Reserve for uncollectible other accounts receivable | $ 642 | $ 420 |
Common shareholders' equity | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 75,000 | 75,000 |
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 | $ 3,052 | $ 4,329 |
Reserve for uncollectible other accounts receivable | $ 642 | $ 420 |
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 S11
MGE Energy Inc Consolidated Statements of Common Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss)/ Income [Member] |
Beginning balance, shares at Dec. 31, 2012 | 34,668 | ||||
Beginning balance, value at Dec. 31, 2012 | $ 579,429 | $ 34,668 | $ 316,268 | $ 228,399 | $ 94 |
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, shares at Dec. 31, 2013 | 34,668 | ||||
Ending balance, value at Dec. 31, 2013 | 617,510 | $ 34,668 | 316,268 | 266,197 | 377 |
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, shares at Dec. 31, 2014 | 34,668 | ||||
Ending balance, value at Dec. 31, 2014 | 659,401 | $ 34,668 | 316,268 | 308,007 | 458 |
Cumulative effect of new accounting principle (See Footnote 1) at Dec. 31, 2014 | (142) | (142) | |||
Beginning balance, value - Adjusted at Dec. 31, 2014 | 659,259 | 307,865 | |||
Increase (Decrease) in Common Equity [Roll Forward] | |||||
Net Income | 71,343 | 71,343 | |||
Other comprehensive income/(loss) | (101) | (101) | |||
Common stock dividends declared | (40,043) | (40,043) | |||
Ending balance, shares at Dec. 31, 2015 | 34,668 | ||||
Ending balance, value at Dec. 31, 2015 | $ 690,458 | $ 34,668 | $ 316,268 | $ 339,165 | $ 357 |
Madison Gas and Electric Comp12
Madison Gas and Electric Company Consolidated Statements of Common Equity - USD ($) shares in Thousands, $ in Thousands | Total | MGE [Member] | Common Stock [Member] | Common Stock [Member]MGE [Member] | Additional Paid-In Capital [Member]MGE [Member] | Retained Earnings [Member] | Retained Earnings [Member]MGE [Member] | Accumulated Other Comprehensive (Loss)/ Income [Member] | Accumulated Other Comprehensive (Loss)/ Income [Member]MGE [Member] | Noncontrolling Interest [Member]MGE [Member] |
Beginning balance, shares at Dec. 31, 2012 | 34,668 | 17,348 | ||||||||
Beginning balance, value at Dec. 31, 2012 | $ 550,766 | $ 17,348 | $ 192,417 | $ 223,527 | $ 4 | $ 117,470 | ||||
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, shares at Dec. 31, 2013 | 34,668 | 17,348 | ||||||||
Ending balance, value at Dec. 31, 2013 | 576,454 | $ 17,348 | 192,417 | 247,534 | 192 | 118,963 | ||||
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, shares at Dec. 31, 2014 | 34,668 | 17,348 | ||||||||
Ending balance, value at Dec. 31, 2014 | 612,260 | $ 17,348 | 192,417 | 276,662 | 144 | 125,689 | ||||
Cumulative effect of new accounting principle (See Footnote 1) at Dec. 31, 2014 | (142) | (142) | $ (142) | (142) | ||||||
Beginning balance, value - Adjusted at Dec. 31, 2014 | 612,118 | 276,520 | ||||||||
Increase (Decrease) in Common Equity [Roll Forward] | ||||||||||
Net Income | 71,465 | 45,368 | 26,097 | |||||||
Other comprehensive income/(loss) | (101) | (121) | $ (101) | (121) | ||||||
Cash dividends paid to parent by MGE | $ (44,708) | (30,000) | (30,000) | |||||||
Equity contribution received by noncontrolling interest | 3,230 | 3,230 | ||||||||
Distributions to parent from noncontrolling interest | (14,708) | (14,708) | ||||||||
Ending balance, shares at Dec. 31, 2015 | 34,668 | 17,348 | ||||||||
Ending balance, value at Dec. 31, 2015 | $ 641,984 | $ 17,348 | $ 192,417 | $ 291,888 | $ 23 | $ 140,308 |
Consolidated Statements of Comm
Consolidated Statements of Common Equity (Parentheticals) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends per share of common stock | $ 0.295 | $ 0.295 | $ 0.283 | $ 0.283 | $ 0.283 | $ 0.283 | $ 0.272 | $ 0.272 | $ 1.16 | $ 1.11 | $ 1.07 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 confor mity with accounting principles generally acce pted in the U nited 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 co nform to the FERC uniform system of acco unts . 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, MGE Services, and NGV Fuel ing 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 generatio n 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 holde rs 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 t o 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 cert ain 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" on the consolidated balance sheets . 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 " O ther current assets " on the consolidated balance sheets . As of December 31, 2015 and 2014 , the receivable – margin account balance of $ 2.3 million and $ 2.2 million, respectively, is shown net of any collateral posted against derivative positions. As of December 31, 2015 and 2014 , there was $ 1.0 million and $ 2.2 million, respectively, of collateral posted against derivative positions. Changes in this cash account are consi dered 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 manages this c oncentration 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, and renewable energy credits (R ECs). MGE values natural gas in storage, fossil fuels, and materials and supplies using average cost. REC allowances are included in "Materials and supplies" on the consolidated balance sheets and are recorded based on specific identification. These allo wances are charged to purchase power expense as they are used in operations. MGE's REC allowance balances as of December 31, 2015 and 2014 , were $ 0.3 million and $ 0.8 million, respectively. h. Chattel Paper Agreements - 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. The energy-related equipment installed at the customer sites is used to secure the customer loans. MGE is a party to a chattel paper purchase agreement with a financial institution under which it can sell or finance an undivided interest with rec ourse, in up to $ 10.0 million of the financing program receivables, until July 31, 2016. 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 . The loan balances outstanding at December 31, 2015 , approximate the fair value of the energy-related equipment acting as collateral. MGE accounts for these agreements as secured borrowings. Prior to the Transfers and Servicing Asset authoritative accou nting guidance that became effective in 2015, these agreements were treated as off-balance sheet arrangements. Beginning January 1, 2015, these agreements are included as assets and liabilities in the consolidated balance sheets. As of December 31, 2015 , a ssets ( " Other accounts receivable " and " Other deferred assets " ) and liabilities ( " Accounts payable " and "O ther deferred liabilities " ) increased approximately $ 3.7 million as a cumulative result of the guidance. In additi on, the cumulative effect of this guidance resulted in a $ 0.1 million reduction in retained earnings. As of December 31, 2015 , the remaining contractual maturities of the chattel paper agreements were as follows: (In thousands) 2016 2017 2018 2019 2020 Thereafter Repurchase-to-Maturity Transactions: Loans $ 706 $ 476 $ 508 $ 477 $ 445 $ 1,059 i . 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. Regulator y 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 re funded, respectively, in future rates. See Footnote 6 for further information. j . 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. k. 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 ch arged 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 ap proximate the following percentages for the cost of depreciable property: 2015 2014 2013 Electric 2.6 % 2.6 % 2.7 % Gas 1.7 % 1.7 % 1.7 % Nonregulated 2.4 % 2.4 % 2.3 % l. 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 "O ther long-term liabilities " on our consolidated 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 in formation. m . 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. n. 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, 2015 and 2014 , MGE had over collected $ 0.8 million and $ 1.2 million, respectively. These amounts are included in "Other current liabilities" on the consolidated balance sheets. o . 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. p. 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 consolidated inco me statements 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. q. 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 shareholder ' s 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 shareholder ' s capital (AFUDC-equity funds) is shown as an item within "Other income." For 2015 , as approved by the PSCW, MGE capitalized AFUDC-debt and equity on 50 % of applicable average construction work in progress at 7.93 %. For both 2014 and 2013 , MGE capitalized AFUDC-debt and equity on 50 % of applicable average construction work in progress at 8.21 %. For 2015 and 2014 , 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 propert ies. r. 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. s . Capitalized Software Costs - MGE Energy and MGE. Property, plant, and equipment includes the net book value of capitalized costs of internal use software totaling $ 12.0 million and $ 8.4 million at December 31, 2015 and 2014 , respectively. During 2015 , 2014 , and 2013 , MGE recorded $ 2.2 million, $ 1.6 million, and $ 1.5 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. t . 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 recogni ze 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 meas ured 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, 2015 , 2014 , and 2013 . u. 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 suc h 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 princip les 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 $ 14.7 million, $ 14.6 million, and $ 13.8 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Operating income taxes, includ ing tax credits and license fee tax, are included in rates for utility related items. v . 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 th e 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 plan s . 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 durin g the requisite period are recognized as compensation cost over that period. See Footnote 14 for additional information regarding the plans. 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. 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 de rivative 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 mark ed to fair value and are 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, 2015 | |
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 intere st 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 prima ry 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 sheets related to its interest in this VIE: (In thousands) 2015 2014 Property, plant, and equipment, net $ 177,904 $ 179,620 Construction work in progress 2,400 1,976 Affiliate receivables - 1,742 Deferred income taxes 40,865 40,044 Long-term debt 65,305 67,972 Noncontrolling interest 79,113 72,537 Long-term debt consists of $ 65.3 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 lease s . As of December 31, 2015 , 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 incur red 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 was recognized over the period allowed for recovery in rates which ended in 2015 . 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 di rect 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 ac counts on its consolidated balance sheets related to its interest in this VIE: (In thousands) 2015 2014 Property, plant, and equipment, net $ 84,403 $ 86,763 Affiliate receivables 5,295 5,862 Deferred income taxes 19,612 23,813 Long-term debt 46,703 48,218 Noncontrolling interest 37,603 30,755 Long-term debt consists of $ 46.7 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 cogenerati on facility pursuant to the long-term lease. As of December 31, 2015 , 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 rece ived 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 were recovered in rates over a 10 year period that started i n 2005 and ended in 2015 . 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, 2015 and 2014 , 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 consol idate 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 potent ial 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, 2015 | |
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) 2015 2014 2015 2014 Utility: Electric $ 1,147,701 $ 1,110,953 $ 1,147,718 $ 1,110,970 Gas 384,163 369,975 384,175 369,987 Total utility plant 1,531,864 1,480,928 1,531,893 1,480,957 Less: Accumulated depreciation and amortization 578,410 559,615 578,410 559,615 In-service utility plant, net 953,454 921,313 953,483 921,342 Nonregulated: Nonregulated 315,589 313,152 314,750 312,314 Less: Accumulated depreciation and amortization 51,949 45,388 51,818 45,305 In-service nonregulated plant, net 263,640 267,764 262,932 267,009 Construction work in progress: Utility construction work in progress 23,837 16,988 23,837 16,988 Nonregulated construction work in progress 2,514 2,041 2,514 2,041 Total property, plant, and equipment $ 1,243,445 $ 1,208,106 $ 1,242,766 $ 1,207,380 MGE's utility plant is subject to the lien of its Indenture of Mortgage and Deed of Trust. As of December 31, 2015 and 2014 , there was $ 1.2 million of bonds outstanding under that indenture. See Footnote 9 for further discus sion of the mortgage indenture. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2015 2014 Available for sale securities: Cost basis $ 2,225 $ 1,964 $ 480 $ 489 Gross unrealized gains 599 765 40 240 Gross unrealized losses (2) - (2) - Fair value 2,822 2,729 518 729 Equity method investments: ATC 69,466 67,673 69,466 67,673 Other 1,184 1,199 - - Total equity method investments 70,650 68,872 69,466 67,673 Other investments 159 159 - - Total $ 73,631 $ 71,760 $ 69,984 $ 68,402 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, 2015 , 2014 , and 2013 , certain inves tments were liquidated. As a result of these liquidations, MGE Energy and MGE received the following: MGE Energy MGE (In thousands) 2015 2014 2013 2015 2014 2013 Cash proceeds $ 19 $ 38 $ 39 $ 19 $ - $ 16 Gain (loss) on sale 10 21 2 10 - (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, 2015 , 2014 , and 2013 , MGE Transco recorded the following: (In thousands) 2015 2014 2013 Equity in earnings from investment in ATC $ 7,728 $ 9,150 $ 9,434 Dividends received from ATC 6,645 7,740 7,404 Capital contributions to ATC 710 1,775 1,420 At December 31, 2015 and 2014 , 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. On January 29, 2016 , MGE Transco made a $ 0.5 million capital contribution to ATC . At December 31, 2015 and 2014 , 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 consolidated financial statements as noncontrolling interest. In mid-2016, MGE is no longer expected to be the majority owner of MGE Transco. The change will have no effect on MGE Energy ' s c onsolidated financial statements; however, MGE Energy ' s proportionate share of the equity and net income of MGE Transco will be deconsolidated fro m MGE’s financial stateme nts. See further discussion in F ootnote 8. ATC's summarized financial data for the years ended December 31, 2015 , 2014 , and 2013 is as follows: (In thousands) Income statement data for the year ended December 31, 2015 2014 2013 Operating revenues $ 615,836 $ 635,033 $ 626,336 Operating expenses (319,321) (307,451) (295,069) Other income 1,176 117 831 Interest expense, net (97,250) (88,970) (84,484) Earnings before members' income taxes $ 200,441 $ 238,729 $ 247,614 Balance sheet data as of December 31, 2015 2014 2013 Current assets $ 80,520 $ 66,410 $ 80,715 Noncurrent assets 3,957,576 3,728,675 3,509,517 Total assets $ 4,038,096 $ 3,795,085 $ 3,590,232 Current liabilities $ 330,248 $ 313,065 $ 381,467 Long-term debt 1,800,029 1,701,000 1,550,000 Other noncurrent liabilities 244,991 163,818 126,167 Members' equity 1,662,828 1,617,202 1,532,598 Total members' equity and liabilities $ 4,038,096 $ 3,795,085 $ 3,590,232 |
Joint Plant Ownership
Joint Plant Ownership | 12 Months Ended |
Dec. 31, 2015 | |
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 % ( 242 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 a re WPL , which operates Columbia, and WPSC. MGE's share of fuel, operating, and maintenanc e expenses for Columbia was $ 38.2 m illion, $ 28.1 million, and $ 37.5 million for the years ended December 31, 2015 , 2014 , and 2013 , res pectively. 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 dep reciation reserves at December 31 were as follows: (In thousands) 2015 2014 Utility plant $ 273,762 $ 268,597 Accumulated depreciation (84,864) (80,645) Property, plant, and equipment, net 188,898 187,952 Construction work in progress 17,110 6,941 Total property, plant, and equipment $ 206,008 $ 194,893 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 P ower 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 own er 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 was $ 20.9 million, $ 20.3 million, and $ 13.4 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. MGE Power Elm Road ' s interest in the portion of the Elm Road Units in-service and the related accumulated depreci ation reserves at December 31 were as follows: (In thousands) 2015 2014 Nonregulated plant $ 202,326 $ 199,582 Accumulated depreciation (24,422) (19,962) Property, plant, and equipment, net 177,904 179,620 Construction work in progress 2,400 1,976 Total property, plant, and equipment $ 180,304 $ 181,596 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 elect ric 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 a ccumulated depreciation reserves at December 31 were as follows: (In thousands) 2015 2014 Nonregulated plant $ 111,141 $ 111,453 Accumulated depreciation (26,738) (24,691) Property, plant, and equipment, net $ 84,403 $ 86,762 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 years ended December 31, 2015 , 2014 , and 2013 , the UW allocated share of fu el and operating costs was $ 3.7 million , $ 2.8 million , and $ 4.9 million, respectively . |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities - MGE Energy and MGE. The following regulatory assets and liab ilities are reflected in MGE's c onsolidated b alance s heet s as of December 31: (In thousands) 2015 2014 Regulatory Assets Asset retirement obligation $ 4,849 $ 4,532 Debt related costs 10,672 11,133 Derivatives 54,083 54,998 Environmental costs 368 700 Tax recovery related to AFUDC equity 8,950 8,821 Unfunded pension and other postretirement liability 78,181 84,551 Other 634 448 Total Regulatory Assets $ 157,737 $ 165,183 Regulatory Liabilities Conservation costs $ 231 $ 680 Deferred fuel savings 9,515 755 Elm Road 643 1,497 Income taxes 1,559 1,794 Non-ARO removal costs 17,137 16,129 Renewable energy credits 327 753 Other 888 1,107 Total Regulatory Liabilities $ 30,300 $ 22,715 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. Management believes it is probable that MGE will continue to recover from custome rs 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 Retireme nt 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 deb t 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 premium s 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 commod ity 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 purchased power agreem ent 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 d efer 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 lit igation, see Footnote 18.c. 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. T ax 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 unfun ded 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. S ee 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 amo unt of the true-up in its next rate case filing. 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 tha n 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 m itigation, and operating costs. Also, MGE has deferred payments made to MGE Power Elm Road for carrying costs during construction of the facility. MGE has collected the carrying costs in rates over a six year period that ended in 2015. 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 obligatio ns, 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 compon ent 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 liabil ity 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, 2015 | |
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. A ll 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, 2015 and 2014 , MGE Energy did not issue any new shares of common stock under the Stock Plan. MGE Energ y 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, 2015 and 2014 , MGE Energy paid $ 40.0 million (or $ 1.16 per share) and $ 38.4 million (or $ 1.11 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 mort gage bonds. See Footnote 9 for further discussion of these covenants. During the years ended December 31, 2015 and 2014 , MGE paid $ 30.0 million and $ 26.5 million, respectively, in cash dividends to MGE Energy. b. Di lutive Shares Calculation - MGE Energy. MGE Energy does not hold any dilutive securities. |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest | Noncontrolling Interest - MGE. The noncontrolling interest on MGE ' s consolidated balance sheets at December 31 was as follows: (In thousands) 2015 2014 MGE Power Elm Road (a) $ 79,113 $ 72,537 MGE Power West Campus (a) 37,603 30,755 MGE Transco (b) 23,592 22,397 Total Noncontrolling Interest $ 140,308 $ 125,689 The net income attributable to noncontrolling interest , net of tax, for the years ended December 31, 2015 , 2014 , and 2013 was as follows : (In thousands) 2015 2014 2013 MGE Power Elm Road (a) $ 16,577 $ 16,160 $ 17,373 MGE Power West Campus (a) 7,348 7,666 7,657 MGE Transco (b) 2,172 2,484 2,408 Net Income Attributable to Noncontrolling Interest, Net of Tax $ 26,097 $ 26,310 $ 27,438 (a) MGE Power Elm Road and MGE Power West Campus are not su bsidiaries 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 consolidated financial statements as noncontrolling interest. (b ) At December 31, 2015 , MGE is the majority owner, and MGE Energy is the minority owner, of MGE Transco. MGE Energy's proportionat e share of the equity and net income of MGE Transco is classified within the MGE consolidated financial statements as noncontrolling interest . In mid-2016, MGE is no longer expected to be the majority owner of MGE Transco. The change will have no effect on MGE Energy' s consolidated financial statements; however, MGE Energy ' s proportionate share of the equity and net income of MGE Transco will be deconsolidated from MGE’s financial statements. No gain or loss is expected to be recognized on the date MGE ceases to have a controlling financial interest . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt - MGE Energy and MGE. a. Long-Term Debt . 2015 2014 (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) 28,063 28,063 28,954 28,954 5.19%, due 2033 (e) 18,640 18,640 19,264 19,264 5.26%, due 2040 (d) 15,000 15,000 15,000 15,000 5.04%, due 2040 (f) 40,138 40,138 41,805 41,805 4.74%, due 2041 (f) 25,167 25,167 26,167 26,167 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 275,008 275,008 279,190 279,190 Long-term debt due within one year (4,266) (4,266) (4,182) (4,182) Unamortized discount (228) (228) (252) (252) Total Long-Term Debt $ 391,014 $ 391,014 $ 395,256 $ 395,256 (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, 2015 , approximately $ 353.0 million was available for the payment of dividends under this covenant. (b ) T he indenture under which MGE's Medium-T erm 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 v oting 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 subsidiarie s. As of December 31, 2015 , MGE was 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 tha n 0.65 to 1.00 . The notes are secured by a collateral assignment of lease payments th at 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, 2015 , MGE Power West Campus was 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 lease s . As of December 31, 2015 , MGE Power Elm Road was 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, 2015 , consolida ted balance sheet s . MGE (In thousands) Energy MGE * 2016 $ 4,266 $ 4,266 2017 34,358 34,358 2018 24,452 24,452 2019 4,553 4,553 2020 19,659 19,659 Future years 308,220 308,220 Total $ 395,508 $ 395,508 * Includes $ 46.7 million for MGE Power West Campus and $ 65.3 million for MGE Power Elm Road, all of which are consolidated wi th 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, 2015 | |
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, 2015 , MGE Energy had an unsecured, committe d revolving line of credit of $ 50 million expiring June 1, 2020 . At December 31, 2015 , no borrowings were outstanding under this facility. The agreement require s MGE Energy to maintain a ratio of its consolidated indebtedness to consolidated total capitalizati on not to exceed a maximum of 65 %. A chan ge in control constitute s 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 beneficia l 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, 2015 , MGE Energy was 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, 2015 , MGE had two unsecured, committed revolvi ng line s of credit for a total of $ 100 million expiring June 1, 2020 . At December 31, 2015 , no borrowings were outstanding under these f acilities, and MGE had no commercial paper outstanding. The agreement s require MGE to maintain a ratio of consol idated 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 constitute s 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, 2015 , MGE was 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) 2015 2014 2013 MGE Energy (a) Available lines of credit $ 150,000 $ 150,000 $ 150,000 Short-term debt outstanding $ - $ 7,000 $ - Weighted-average interest rate - % 0.20 % - % During the year: Maximum short-term borrowings $ 17,500 $ 9,000 $ 32,000 Average short-term borrowings $ 1,511 $ 182 $ 6,992 Weighted-average interest rate 0.17 % 0.24 % 0.18 % MGE Available lines of credit $ 100,000 $ 100,000 $ 100,000 Commercial paper outstanding $ - $ 7,000 $ - Weighted-average interest rate - % 0.20 % - % During the year: Maximum short-term borrowings $ 17,500 $ 9,000 $ 32,000 Average short-term borrowings $ 1,511 $ 182 $ 6,992 Weighted-average interest rate 0.17 % 0.24 % 0.18 % (a) MGE Energy short-term borrowings include MGE Energy and MGE lines of credit and MGE commercial paper. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
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 accounting standard clarifies that fair value should be based on the assumptions market participants would use when pricing the asset or liability including ass umptions 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 p rices 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 mod el-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, 2015 and 2014 , 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 's long-term debt is based on quoted market prices for similar financial instruments at December 31 . S ince 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: 2015 2014 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value MGE Energy Assets: Cash and cash equivalents $ 81,384 $ 81,384 $ 65,755 $ 65,755 Liabilities: Short-term debt - commercial paper - - 7,000 7,000 Long-term debt* 395,508 435,767 399,690 457,420 MGE Assets: Cash and cash equivalents $ 26,760 $ 26,760 $ 4,562 $ 4,562 Liabilities: Short-term debt - commercial paper - - 7,000 7,000 Long-term debt* 395,508 435,767 399,690 457,420 *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, 2015 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net $ 234 $ - $ - $ 234 Exchange-traded investments 759 759 - - Total Assets $ 993 $ 759 $ - $ 234 Liabilities: Derivatives, net (a) $ 54,316 $ 581 $ - $ 53,735 Deferred compensation 3,145 - 3,145 - Total Liabilities $ 57,461 $ 581 $ 3,145 $ 53,735 MGE Assets: Derivatives, net $ 234 $ - $ - $ 234 Exchange-traded investments 148 148 - - Total Assets $ 382 $ 148 $ - $ 234 Liabilities: Derivatives, net (a) $ 54,316 $ 581 $ - $ 53,735 Deferred compensation 3,145 - 3,145 - Total Liabilities $ 57,461 $ 581 $ 3,145 $ 53,735 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 (a) These amounts are shown gross and exclude $1.0 million and $2.2 million of collateral that was posted against derivative positions with counterparties as of December 31, 2015 and 2014, respectively. No transfers were made in or out of Level 1 or Level 2 for the year ended December 31, 2015 . I nvestments include exchange-traded investment securities valued using quoted prices on active exchanges and are therefore classified as Level 1. Derivatives include exchange-traded derivative c ontracts, over-the-counter transactions, a 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 Le vel 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 instru ments in a closed market with limited data available and are therefore classified as Level 3 . The purchased power agreement (see Footnote 16) was valued using an internally-developed pricing model and therefore is classified as Level 3. The model project s 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 cu rve 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 marke t 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 proj ected 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 th at 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, cre dit, and model risks. This model is prepared by members of MGE ' s Energy Accounting department . O n a quarterly basis , management in the Energy Supply and Finance departments 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 2015 2014 Basis adjustment: On peak 96.9 % 98.1 % Off peak 95.1 % 95.0 % Counterparty fuel mix: Internal generation 60%-75% 50%-70% Purchased power 40%-25% 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) 2015 2014 2013 Balance as of January 1, $ (53,986) $ (64,628) $ (72,346) Realized and unrealized gains (losses): Included in regulatory liabilities 484 10,642 7,718 Included in other comprehensive income - - - Included in earnings (6,635) 5,129 (2,618) Included in current assets - - (108) Purchases 23,052 26,382 23,726 Sales 35 (125) (2) Issuances - - - Settlements (16,451) (31,386) (20,998) Transfers in and/or out of Level 3 - - - Balance as of December 31, $ (53,501) $ (53,986) $ (64,628) 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, 2015 2014 2013 Purchased power expense $ (6,663) $ 5,137 $ (2,618) Cost of gas sold expense 28 (8) - Total $ (6,635) $ 5,129 $ (2,618) ( b ) MGE's exchange-traded derivative contracts, over-the-count er party transactions, 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, 2015 | |
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) c omponents for the years ended December 31 : MGE Energy MGE (In thousands) 2015 2014 2013 2015 2014 2013 Current payable: Federal $ 16,837 $ (891) $ (1,508) $ 19,295 $ 637 $ (448) State 2,774 (589) 8,213 3,443 (451) 8,322 Net-deferred: Federal 15,951 39,284 37,203 13,538 38,553 36,937 State 5,976 10,600 1,163 5,305 10,625 1,223 Amortized investment tax credits (175) (219) (212) (175) (219) (212) Total income tax provision $ 41,363 $ 48,185 $ 44,859 $ 41,406 $ 49,145 $ 45,822 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 2015 2014 2013 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 5.2 % 5.1 % 5.1 % 5.2 % 5.1 % 5.1 % Amortized investment tax credits (0.2) % (0.2) % (0.2) % (0.2) % (0.2) % (0.2) % Credit for electricity from wind energy (1.8) % (1.7) % (1.5) % (1.8) % (1.7) % (1.5) % Domestic manufacturing deduction (1.4) % - % (0.2) % (1.4) % - % (0.2) % AFUDC equity, net (0.1) % (0.8) % (0.7) % (0.1) % (0.8) % (0.7) % Other, net, individually insignificant - % 0.1 % - % - % 0.1 % - % Effective income tax rate 36.7 % 37.5 % 37.5 % 36.7 % 37.5 % 37.5 % The significant components of deferred tax liabilities (assets) that appear on MGE Energy ' s and MGE ' s consolidated balance sheets as of December 31 are as follows: MGE Energy MGE (In thousands) 2015 2014 2015 2014 Property-related $ 327,918 $ 312,903 $ 327,822 $ 312,807 Investment in ATC 38,213 36,140 30,382 29,156 Bond transactions 1,422 1,420 1,422 1,420 Pension and other postretirement benefits 57,697 57,847 57,697 57,847 Derivatives 21,660 22,331 21,660 22,331 Tax deductible prepayments 8,011 8,077 8,011 8,077 Other 14,997 10,451 14,831 10,259 Gross deferred income tax liabilities 469,918 449,169 461,825 441,897 Future tax benefit - (4,092) - (4,092) Accrued expenses (21,391) (32,091) (21,391) (32,091) Pension and other postretirement benefits (46,582) (44,994) (46,582) (44,994) Deferred tax regulatory account (1,047) (1,211) (1,047) (1,211) Derivatives (21,660) (22,331) (21,660) (22,331) Other (18,523) (5,957) (18,589) (3,746) Gross deferred income tax assets (109,203) (110,676) (109,269) (108,465) Less valuation allowance 70 70 70 70 Net deferred income tax assets (109,133) (110,606) (109,199) (108,395) Deferred income taxes $ 360,785 $ 338,563 $ 352,626 $ 333,502 As of December 31, 2015 , MGE Energy and MGE did not have federal net operating losses or federal tax credit carryforwards . As of December 31, 2014 , MGE Energy and MGE had approximately $ 16.5 million and $ 5.4 million of state net operating loss and federal tax credit 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 and reflected in deferred tax liabilities on the consolidated balance sheets. Our state valuati on 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, 2015 , both M GE Energy and MGE had approximately $ 1.4 million of state tax net operating loss ded uctions subject to a valuation allowance that expire between 2020 and 2023 if unused . In November 2015, the FASB issued authoritative accounting guidance on the presentation of deferred taxes in the financial statements. Prior to the authoritative guidance, deferred taxes were presented as a net current asset or liability and net noncurrent asset or liability. As a result of the Accounting Standard Update (ASU), all deferred tax assets and liabilities, along with any related valuation allowance, will be classified as noncurrent on the consolidated balance sheets. The authoritative guidance s tates that early adoption of the ASU is permitted using either prospective or retrospective application. MGE Energy and MGE have adopted this standard early by retrospectively applying the guidance to all prior periods presented in addition to the current year ended December 31, 2015. For MGE Energy and MGE , as of December 31, 2014, current assets ( " D eferred income tax es " ) decreased by approximately $ 3.5 million and $ 1.3 million, respectively, and noncurrent liabilities ( " Defe rred income tax es " ) decreased by approximately $ 3.5 million and $ 1.3 million, respectively, as a c umulative result of the guidance. 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, 2013 to December 31, 2015 , is as follows: (In thousands) Unrecognized Tax Benefits: 2015 2014 2013 Unrecognized tax benefits, January 1, $ 2,365 $ 2,363 $ 3,204 Additions based on tax positions related to the current year 488 610 377 Additions based on tax positions related to the prior years 520 618 424 Reductions based on tax positions related to the current year - - (40) Reductions based on tax positions related to the prior years (845) (1,226) (1,602) Unrecognized tax benefits, December 31, $ 2,528 $ 2,365 $ 2,363 (In thousands) Interest on Unrecognized Tax Benefits: 2015 2014 2013 Accrued interest on unrecognized tax benefits, January 1, $ 92 $ 101 $ 314 Reduction in interest expense on uncertain tax positions (102) (97) (275) Interest expense on uncertain tax positions 321 88 62 Accrued interest on unrecognized tax benefits, December 31, $ 311 $ 92 $ 101 Unrecognized tax benefits of $ 2.5 million and $ 0.4 million ar e liabilities shown with " Other deferred l iabilities " on the December 31, 2015 and 2014 , consolidated balance sheets , respectively . At December 31, 2014 , $ 2.0 mi llion of unrecognized tax benefits are netted with deferred tax liabilities 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 ad ded. At December 31, 2015 and 2014 , 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 distributio n 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 unrec ognized tax benefits at December 31, 2015 , 2014 , or 2013 related to federal permanent differences and tax credits. The unrecognized tax benefits at December 31, 2015 , are not expected to significantly increase or decrease within the next twelve mo nths. 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 2012 through 2015 MGE Energy Wisconsin combined reporting corporation return 2011 through 2015 |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2015 | |
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 $ 2.8 million, $ 2.5 million, and $ 2.3 million in 2015 , 2014 , and 2013 , 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: 2015 2014 2015 2014 Net benefit obligation at beginning of year $ 340,233 $ 283,958 $ 78,478 $ 66,100 Service cost 7,263 6,179 1,559 1,339 Interest cost 13,766 13,574 3,075 3,166 Plan participants' contributions - - 741 708 Actuarial (gain) loss (a) (17,576) 48,162 (5,828) 10,090 Gross benefits paid (11,121) (11,640) (3,280) (3,113) Less: federal subsidy on benefits paid (b) - - 190 188 Benefit obligation at end of year $ 332,565 $ 340,233 $ 74,935 $ 78,478 Change in Plan Assets: Fair value of plan assets at beginning of year $ 288,548 $ 277,398 $ 38,952 $ 37,602 Actual return on plan assets 4,153 21,907 603 2,558 Employer contributions 9,136 883 3,154 1,197 Plan participants' contributions - - 741 708 Gross benefits paid (11,121) (11,640) (3,280) (3,113) Fair value of plan assets at end of year $ 290,716 $ 288,548 $ 40,170 $ 38,952 Funded Status at December 31 $ (41,849) $ (51,685) $ (34,765) $ (39,526) (a) In 2014, lower discount rates and mortality table updates were the main drivers to the actuarial loss. (b) 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, 2015 and 2014 , the subsidy due to MGE was $ 0.2 million . The accumulated benefit obligation for the defined benefit pension plans at the end of 2015 and 2014 was $ 302.5 million and $ 304.0 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) 2015 2014 2015 2014 Current liability $ (966) $ (1,025) $ (52) $ (65) Long-term liability (40,883) (50,660) (34,713) (39,461) Net liability $ (41,849) $ (51,685) $ (34,765) $ (39,526) 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) 2015 2014 2015 2014 Net actuarial loss $ 80,660 $ 85,102 $ 13,086 $ 17,657 Prior service benefit (436) (413) (15,158) (17,827) Transition obligation - - 29 32 Total $ 80,224 $ 84,689 $ (2,043) $ (138) 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 2015 2014 Projected benefit obligation, end of year $ 332,565 $ 340,233 Fair value of plan assets, end of year 290,716 288,548 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 2015 2014 Projected benefit obligation, end of year $ 332,565 $ 340,233 Accumulated benefit obligation, end of year 302,471 304,023 Fair value of plan assets, end of year 290,716 288,548 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 Cost (Benefit): 2015 2014 2013 2015 2014 2013 Service cost $ 7,263 $ 6,179 $ 7,705 $ 1,559 $ 1,339 $ 2,380 Interest cost 13,766 13,574 12,656 3,075 3,166 3,871 Expected return on assets (22,682) (22,051) (19,027) (2,812) (2,615) (2,176) Amortization of: Transition obligation - - - 3 3 3 Prior service cost (benefit) 23 204 314 (2,669) (2,669) 110 Actuarial loss 5,395 703 8,014 953 252 1,236 Net periodic cost (benefit) $ 3,765 $ (1,391) $ 9,662 $ 109 $ (524) $ 5,424 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 2015 2014 2015 2014 Discount rate (a) 4.51 % 4.11 % 4.32 % 3.96 % Rate of compensation increase 3.78 % 3.85 % N/A N/A Assumed health care cost trend rates: Health care cost trend rate assumed for next year N/A N/A 6.5 % 6.5 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate N/A N/A 2022 2021 (a) In 2015, MGE refined its methodology for using discount rates to measure the components of net periodic benefit cost. The refined methodology uses individual spot rates, instead of a weighted average of the yield curve spot rates, for measuring the service cost and interest cost components. The change in methodology does not alter the measurement of the related benefit obl igation as of December 31, 2015 . 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 2015 2014 2013 2015 2014 2013 Discount rate 4.11 % 4.88 % 4.09 % 3.96 % 4.69 % 4.14 % Expected rate of return on plan assets 7.80 % 8.10 % 8.10 % 7.06 % 7.07 % 6.79 % Rate of compensation increase 3.84 % 3.93 % 4.60 % 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 2015 dollars: (In thousands) 1% Increase 1% Decrease Effect on other postretirement benefit obligation $ 1,391 $ (1,753) Effect on total service and interest cost components 80 (92) 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 expe cted 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 historica l 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 as sets 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 rea l 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 2015 and 2014 , and the target al location for 2016 , by asset category, follows : Target Allocation Percentage of Plan Assets at Year End 2015 2014 Equity securities (a) 63.0 % 63.0 % 62.0 % Fixed income securities 30.0 % 29.0 % 31.0 % Real estate 7.0 % 8.0 % 7.0 % Total 100.0 % 100.0 % 100.0 % (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 $ 40.2 million and $ 39.0 million at the end of 2015 and 2014 , respectively. Of this amount, $ 34.1 million and $ 32.8 million at the end of 2015 and 2014 , 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 explai ned 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 a sset 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 si gnificant concentrations of credit risk as of December 31, 2015 . 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, 2015 , ther e 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 po stretirement 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, 2015 : Cash and Cash Equivalents – This category includes highly liquid investments with maturities of less than three months which are traded in active markets. 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 fun ds 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 – Th e 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 b ased 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, 2015 (In thousands) Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 300 $ 300 $ - $ - Equity Securities: U.S. Large Cap 98,949 - 98,949 - U.S. Mid Cap 22,446 - 22,446 - U.S. Small Cap 27,561 - 27,561 - International Blend 55,948 - 55,948 - Fixed Income Securities: Short-Term Fund 3,388 - 3,388 - High Yield Bond 16,225 - 16,225 - Long Duration Bond 73,112 - 73,112 - Real Estate 27,231 - - 27,231 Insurance Continuance Fund 1,518 - - 1,518 Fixed Rate Fund 4,208 - - 4,208 Total $ 330,886 $ 300 $ 297,629 $ 32,957 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 No transfers were made in or out of Level 1 or Level 2 for the year ended December 31, 2015 . 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, 2014 $ 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 Actual return on plan assets: Relating to assets still held at the reporting date 2,749 46 103 Purchases, sales, and settlements 1,002 (46) (341) Transfers in and/or out of Level 3 - - - Balance as of December 31, 2015 $ 27,231 $ 1,518 $ 4,208 g . Expected Cash Flows. Contributions to the qualified plans for 2016 are expected to be $ 10.0 million, which was paid in January 2016 . MGE does not expect to make c ontributions to the plans for 2017 . The contributions for years after 2017 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 e conomic 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 2015 , MGE made $ 13.7 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 2016 $ 12,489 $ 3,119 $ (227) $ 2,892 2017 13,320 3,481 (249) 3,232 2018 14,506 3,947 (273) 3,674 2019 15,456 4,453 (296) 4,157 2020 16,381 4,910 (325) 4,585 2021 - 2025 95,167 30,364 (2,121) 28,243 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
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 accor dance 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 d ate, 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, 2015 , as required by applicable a ccounting 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 co st is subject to variability. Units are subject to a five - year graded vesting schedule. Grant Date MGE Energy Units Granted February 19, 2016 19,055 February 20, 2015 18,948 February 21, 2014 21,991 February 15, 2013 22,884 February 17, 2012 25,040 For nonretir ement 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 . Under the Director Incentive 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 o f the set performance period. The units are subject to a thre e- year graded vesting schedule. This plan is similar to MGE Energy’s Performance Unit Plan for eligi ble employees described above. Grant Date MGE Energy Units Granted January 15, 2016 3,773 January 16, 2015 3,794 January 17, 2014 4,683 During the years ended December 31, 2015 , 2014 , and 2013 , MGE recorded $ 1.0 million , $ 2.0 million , and $ 1.5 million , respectively, in compensation expense as a result of awards under t he plans . In January 2015 , cash payments of $ 1.3 million were distributed relating to awards that were granted in 2010. During the year ended December 31, 2015 , MGE recorded a $ 0.2 million gain on 4,676 units forfeited. No forfeiture s occurred during the years ended December 31, 2014 , and 2013 . At December 31, 2015 , $ 5.2 million of outstanding awards are vested , and of this amount, no cash settlements have occurred. |
Regional Transmission Organizat
Regional Transmission Organizations | 12 Months Ended |
Dec. 31, 2015 | |
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 ma rkets in which it buys and sells power within the same hour to meet electric energy delivery requirements. T his treatment resulted in a $ 68.6 mi llion, a $ 91.1 million, and a $ 78.0 mi llion reduction to sales to the market and purchase power expense for MISO markets for the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 12 Months Ended |
Dec. 31, 2015 | |
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 . 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 deri vatives in the consolidated balance sheets at fair value . MGE's commodity derivative activities are conducted in accordance with its electric and gas risk management program, which is approved by the PSCW and limits the volume MGE can hedge with spec ific 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 throug h 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: December 31, 2015 December 31, 2014 Commodity derivative contracts 355,580 MWh 448,000 MWh Commodity derivative contracts 5,037,500 Dth 4,405,000 Dth FTRs 2,000 MW 1,854 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 th at 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/liabilit y 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 t he delivery month applicable to the instrument. At December 31, 2015 and 2014 , the cost basis of exchange- traded derivatives and FTRs exceeded their fair value by $ 0.8 million and $ 1.6 million, respectivel y. MGE is a party to a 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 s . However, the derivative qualifies for regula tory 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, 2015 and 2014 , reflects a loss position of $ 53.3 million and $ 53.4 million, respectively . The actual cost will be recognized in purchased power e xpense in the month of purchase. The following table summarizes the fair value of the derivative instruments on the consolidated balan ce sheet s . 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 statem ent 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, 2015 and 2014 , MGE Energy and MGE had the right to reclaim collateral (a receivabl e) of $ 1.0 million and $ 2.2 million, respectively . Asset Derivatives Liability Derivatives (In thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value December 31, 2015 Commodity derivative contracts Other current assets $ 146 Derivative liability (current) $ 1,266 Commodity derivative contracts Other deferred charges 144 Derivative liability (long-term) 70 FTRs Other current assets 234 Derivative liability (current) - PPA N/A N/A Derivative liability (current) 8,340 PPA N/A N/A Derivative liability (long-term) 44,930 December 31, 2014 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) - PPA N/A N/A Derivative liability (current) 6,870 PPA N/A N/A Derivative liability (long-term) 46,560 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 consolidated balance sheets . Offsetting of Derivative Assets Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets (In thousands) December 31, 2015 Commodity derivative contracts $ 290 $ (290) $ - $ - FTRs 234 - - 234 December 31, 2014 Commodity derivative contracts $ 223 $ (223) $ - $ - FTRs 642 - - 642 Offsetting of Derivative Liabilities Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets (In thousands) December 31, 2015 Commodity derivative contracts $ 1,336 $ (290) $ (1,038) $ 8 PPA 53,270 - - 53,270 December 31, 2014 Commodity derivative contracts $ 2,433 $ (223) $ (2,179) $ 31 PPA 53,430 - - 53,430 The following tables summarize the unrealized and realized gains (losses) related to the derivative instruments on the consolidated balance sheets at December 31, 2015 and 2014 , and the consolidated income statements for the years ended December 31, 2015 and 2014 . 2015 2014 Current and Long-Term Regulatory Asset Other Current Assets Current and Long-Term Regulatory Asset Other Current Assets (In thousands) Balance at January 1, $ 54,998 $ 1,001 $ 63,893 $ 411 Unrealized loss (gain) 8,586 - (14,518) - Realized (loss) gain reclassified to a deferred account (2,953) 2,953 595 (595) Realized (loss) gain reclassified to income statement (6,549) (2,746) 5,028 1,185 Balance at December 31, $ 54,082 $ 1,208 $ 54,998 $ 1,001 Realized Losses (Gains) 2015 2014 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 $ 2,236 $ 2,548 $ (5,515) $ (1,103) FTRs (309) - (1,110) - PPA 4,820 - 1,515 - MGE's commodity derivative contracts, FTRs, and 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 s 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 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, 2015 , no collateral is required to be, or has been, posted. Certain counterparties extend MGE a credit limit. If MGE exceeds these limits, the counterparties may require collateral to be poste d. As of December 31, 2015 and 2014 , certain counterparties were in a net liability of less than $0.1 million. Nonperforman ce of counterparties to the non-exchange traded derivatives could expose MGE to credit loss. However, MGE enters into transaction s 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, 2015 , no counterparties have defaulted. |
Rate Matters
Rate Matters | 12 Months Ended |
Dec. 31, 2015 | |
Regulated Operations [Abstract] | |
Rate Matters | Rate Matters - MGE Energy and MGE. a. Rate P roceedings. In July 2015, the PSCW approved MGE's request to extend the current accounting treatment for transmission related costs through 2016, conditioned upon MGE not filing a base rate case for 2016. This accounting treatment will allow MGE to reflect any differential between transmission costs reflected in rates and actual costs incurred in its next rate case filing. On December 23, 2014, the PSCW authorized MGE to increase 2015 rates for retail elec tric 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 postretirement benefit costs. The authorized return on common stock equity is 10.2 %. The PSCW also approved changes to customer rates and rate design for gas service that became effective January 1, 2015. Gas ra te design consists of a fixed monthly customer charge and a variable charge tied to actual usage, in addition to the separate charge through the PGA for natural gas commodity costs. The change shifted more of the rate recovery to the monthly charge, reflec ting the related fixed costs of providing gas services, and reduced the variable usage-based charge. Thus, gas net income is expected to be more evenly distributed during the year and less sensitive to weather. On July 26, 2013, the PSCW authorized MGE to freeze electric and natural gas rates at 2013 levels for 2014. The order authorized 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 amortized in 2014. The fuel credit accrued interest at MGE's weighted cost of capital. The authorized return on common stock equity was 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 cos ts for the Elm Road Units, transmission reliability enhancements, and purchased power costs. The authorized return on common stock equity remained unchanged at 10.3 %. b. Fuel R ules. 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 annual fuel proceedings. Any over/under recovery of the actual costs is determined on an annual basis and is 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 exc ess 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 co mmon 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. In August 2015, the PSCW approved a $0.00256/kWh fuel credit to begin on September 1, 2015, and continue throughout 2016. The fuel credit established a mechanism to return fuel savings to electric customers as a bill credit. MGE returned $ 2.6 million of electric fuel-related savings in customer bill credits during the period from September 1, 2015, through December 31, 2015. As of December 31, 2015 , MGE has deferred $9.5 million of 2015 electric fuel-related savings that are outside the range authorized by the PSCW. These costs are subject to PSCW ' s annual review, expected to be completed in 2016. In January 2016, the PSCW lowered MGE ' s 2016 fuel rules monitored costs by $14.8 million as a result of continued lower projected fuel costs in 2016. The PSCW will address the return of the 2016 fuel savings to customers as an update to the fuel credit or through another approved mechanism. The return of the fuel savings t o customers for 2016 will be addressed during the PSCW ' s annual review during 2016 of 2015 fuel costs. MGE will defer these fuel savings until a determination is made by the PSCW . As part of the rate freeze plan authorized by the PSCW for 2014, $ 6.3 million associated with the 2012 fuel rule credit wa s amortized against purchased power expense during the year ended December 31, 2014 . The 2013 fuel credit of $ 6.5 million was returned to customers in October 2014 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , the future minimum commitments related to these pur chase contracts were as follows: (In thousands) 2016 2017 2018 2019 2020 Coal (a) $ 38,028 $ 13,115 $ 12,736 $ 3,850 $ - Natural gas Transportation and storage (b) 18,500 18,551 18,482 17,562 14,254 Supply (c) 10,611 - - - - Purchase power (d) 47,901 48,398 46,855 35,023 33,883 Other 29,947 723 324 143 - $ 144,987 $ 80,787 $ 78,397 $ 56,578 $ 48,137 (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 is 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-bas ed 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 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 I owa. 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 r atable share of energy produced by the project has been estimated and is included in the above numbers. b . 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 maintenanc e and insurance, for its leases. Future minimum rental payments at December 31, 2015 , under agreements classified as operating leases with noncancelable terms in excess of one year are as follows: (In thousands) 2016 2017 2018 2019 2020 Thereafter Minimum lease payments $ 1,615 1,282 $ 674 $ 310 $ 277 $ 8,283 Rental expense under operating leases totaled $ 2.1 million , $ 2.5 million, and $ 2.7 million for 2015 , 2014 , and 2013 , respectively . c . 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 requir e 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 permi ts. MGE's power plants operate under Wisconsin Pollution Discharge Elimination System (WPDES) permits issued by the WDNR to ensure compliance with these discharge limits, which permits are subject to periodic renewal. EPA's Effluent Limitations Guidelines (ELG) and Standards for Steam Electric Power Generating Point Source Category In November 2015, the EPA published its final rule setting Effluent Limitations Guidelines (ELG) for the steam electric power generating industry. The ELG rule establishes feder al limits on the amount of metals and other pollutants that can be discharged in wastewater from new and existing steam electric generation plants. The ELG rule mostly covers pollutants that are captured by certain air pollution control systems and via wet ash handling systems at coal-burning power plants with units greater than 50 megawatt (MW) generation capacity. The operators of our Columbia and Elm Road Units have indicated that equipment upgrades may be necessary to comply with the new discharge stand ards. The rule will go into effect in 2018 and will be applied to Wisconsin-based power plants as they renew their WPDES permits, but no later than 2023. Management believes that any compliance costs will be recovered in future rates based on previous trea tment of environmental compliance projects. EPA Cooling Water Intake Rules (Section 316(b)) Section 316(b) of the Clean Water Act requires that the cooling water intake structures at electric power plants meet best available technology standards so that m ortality 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. Section 316(b) requirements are implemented in Wisconsin through modifications to plants' WPDES permits, which govern plant wastewater discharges. WDNR is currently developing rules to implement the EPA 316(b) rule. Our WCCF, Blount, and Columbia plants are considered existing plants under this rule . Our WCCF facility already employs a system that meets the 316(b) rule. Our Blount plant has conducted studies showing that it will likely be in compliance with this rule when its WPDES permit is renewed in 2017. The operator of our Columbia plant plans t o conduct an intake study to demonstrate compliance with the 316(b) rule and/or identify design criteria needed to meet the new rule requirements prior to Columbia's 2017 WPDES permit renewal. The exact requirements at Blount and Columbia, however, will no t be known until the WDNR finalizes its rule, approves the plant operators' approach, and those sites' 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 sources. As of December 31, 2015, 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 (SO 2 ), nitrogen oxides ( NO x ), 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 greenhouse gas regulations, the EPA's recent proposed update to the Cross-State Air Pollution Rule (CSAPR), and recently revised National Ambient Air Quality Standards (NAAQS) for ozone have the potential to result in additional operating and capital expenditure costs for MGE. EPA's Greenhouse Gas (GHG) Reduction G uidelines under the Clean Air Act 111(d) Rule In October 2015, the EPA published its Clean Power Plan (CPP) rule, which went into effect in December 2015, setting guidelines and approval criteria for states to use in developing plans to control GHG emissio ns from existing fossil fuel-fired electric generating units (EGUs) and systems. When fully implemented in 2030, the CPP is projected to reduce GHG emissions from this sector by 32% below 2005 levels. States are given up to three years to submit a plan to meet the reduction goals and are expected to meet interim goals starting in 2022 and the final goal in 2030. Implementation of the rule is expected to have a direct impact on existing coal and natural gas fired generating units, including possible changes in dispatch and additional operating costs. In October 2015, the EPA also published a proposed federal implementation plan under the CPP rule. The proposed federal implementation plan is designed to provide mass-based and rate-based emissions trading opti ons to serve as a model and/or resource for states that are adopting their own plans, or for use by the EPA in states that do not implement their own plans under the finalized CPP. In October 2015 , many states (including Wisconsin) and other litigants filed petitions with the U.S. Court of Appeals for the District of Columb ia Circuit asking for a stay of the CPP rule, which would otherwise become effective on December 22, 2015, and seeking expedited review of the petitioners' challenges to the CPP's leg ality. The parties' request to stay the rule was denied by the D . C . Circuit on January 20, 2016, but the D . C . Circuit issued an expedited schedule for resolving the merits of the litigation including oral arguments that will be held in early June 2016. However, on January 26, 2016, several parties filed a request for a stay of the CPP with the U.S. Supreme Cour t; and on February 9, 2016 , the U.S. Supre me Court granted that request. The CPP may not now be implemented until the courts ultimately resolve the un derlying legality of the rule. Oral arguments are scheduled before the D.C. Circuit for June 2, 2016. MGE is evaluating the CPP and related requirements. Given the pending legal proceedings and the need for a yet-to-be-developed state implementation plan or federal implementation plan, the nature and timing of any final requirements is subject to uncertainty. If the rule remains substantially in its present form, it is expected to have a material impact on MGE. National Ambient Air Quality Standards (NAAQS) and Related Rules The EPA ' s NAAQS regulations have been developed to set ambient levels of six pollutants to protect sensitive human populations (primary NAAQS) and the environment (secondary NAAQS) from the negative effects of exposure to these pollutants at higher levels. The Clean Air Act requires that the EPA periodically review, and adjust as n ecessary, 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. St ates 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. State s 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 emission limitations set by the SIP (which could result in significant capital expenditures), and the company may have additional expenses and/ or difficulties expanding existing facilities 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. In addition, the EPA has adopted interstate transport rules such as the CSAPR to address contributions to NAAQS nonattainment from upwind sources in neighboring states. In the following paragraphs we discuss specific NAAQS and transport rule developments that may affect MGE. Ozone NAAQS In October 2015, the EPA revised the primary and secondary ozone NAAQS, lowerin g each to 70 ppb. The rule became effective in December 2015. Based on current ozone monitoring data, it appears that Milwaukee County (where our Elm Road Units are located) will likely not attain the lowered standards, and Dane and Columbia Counties (wher e our WCCF/Blount and Columbia Units are located, respectively) may or may not attain them. It is too early to determine, however, as final attainment designations for these three counties will be based upon air monitoring data for years 2014-2016 and must be approved by the EPA. Once these designations are complete, the State of Wisconsin will develop implementation plans for each county designated as nonattainment, which could affect operations and emission control obligations for plants located within th e nonattainment counties. These implementation plans will be developed sometime after 2017. Because these implementation plans involve rule making by the State that has not yet started, it is unknown at this time when they will be finalized and implemented . The State of Wisconsin has requested to intervene in a lawsuit filed by five other states challenging the EPA's new ozone standard alleging that the new standard is not attainable and the EPA is not properly considering background levels in setting its o zone attainment levels. MGE will continue to monitor legal developments, attainment designations, and any state actions and implementation plans. Sulfur Dioxide (SO 2 ) NAAQS In March 2015, the EPA entered into a court-approved consent decree requiring 1-ho ur SO 2 attainment/nonattainment area designations to be completed in three phases extending out until 2020. In August 2015, the EPA published its data requirements rule that lays out expectations, designation process options, and timeframes for states and tribes to meet for the SO 2 NAAQS set in 2013. Under this new rule, states must submit their first designation proposals in July 2016 for those areas that contain large stationary sources of SO 2 (sources that emit over a threshold mass of SO 2 , and/or over a threshold emissions rate). These proposals must identify one of the following options for demonstrating attainment with the 1-hour SO 2 NAAQS: modeling of SO 2 emissions; monitoring of SO 2 emissions; or limiting large stationary sources to 2,000 ton per year of SO 2 emissions by January 13, 2017. The EPA must make final designation determinations for these areas between 2017 and 2020 depending on the area. In March 2015, MGE's Columbia plant was identified in the Federal Register as meeting the criteria o f a large stationary source of SO 2 (based on 2012 data). As such, the State of Wisconsin must submit an attainment/nonattainment area designation plan for Columbia County (the county in which the Columbia plant is located). Since the 2012 data was collecte d, Columbia has installed pollution control equipment that has lowered its total SO 2 emissions and its SO 2 emissions rate. We anticipate, based on recent SO 2 emissions modeling, that Columbia County will be recommended as an attainment area by the state. A n attainment recommendation, however, has not yet been submitted by the State of Wisconsin to the EPA. Once the state submits its recommendation, the EPA will make final designations. While the attainment designation seems likely for Columbia, a nonattain ment designation may have an adverse effect on the operation of the Columbia plant. MGE will continue to monitor the developments with the Columbia County designation process. Management believes compliance costs will be recovered in future rates based on previous treatment of environmental compliance projects. EPA's Cross-State Air Pollution Rule: Proposed Ozone Season Update based on 2008 Ozone NAAQS 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. CS APR aims to achieve ozone and PM2.5 reductions by reducing NO x and/or SO 2 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 NO x and SO 2 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 w ell as its precursor rules, the Clean Air Interstate Rule (CAIR) and the NO x SIP Call, have been subject to litigation. The EPA rule adjustments and several court rulings, including recent court and EPA actions, continue to impart a level of uncertainty he ading into 2016. In December 2015, the EPA published a proposed rule to amend the existing CSAPR. The proposed rule is designed to incorporate 2008 Ozone NAAQS attainment levels (current CSAPR is based on 1997 Ozone NAAQS levels) in 23 states, including Wisconsin, by establishing a federal implementation plan (FIP) to identify and limit summertime nitrogen oxide ( NO x ) levels, a precursor to ozone that contributes to ozone transport. The proposed rule also includes revisions to CSAPR that are designed to a ddress issues remaining from the D.C. Circuit remand of CSAPR, including Wisconsin's inclusion in the NO x ozone season portion of the rule. The proposed rule's FIP goes into effect in 2017, which coincides with Phase II of the existing CSAPR, and will replace the Phase II ozone season NO x allowances with updated NO x allowances designed to meet 2008 Ozone NAAQS attainment. The rule as proposed would reduce ozone season NO x emissions by about half as compared to existing Phase II numbers. We are currently evaluating the rule for its impact to MGE and thus do not know with certainty the exact impact. Initial reviews, however, indicate that the pro posed CSAPR update as written could have material effects on MGE. We will continue to monitor the rule developments and the D.C. Circuit Court remand completion to help determine how this rule will ultimately affect MGE. Clean Air Visibility Rule (CAVR) C olumbia may 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. Columbia's pollution control upgrades and the EPA's stance that compliance with the CSAPR equals compliance with BART should mean that Columbia will not need to do additional work to meet BART requirements. In addition, the EPA has indicated that they intend to extend deadlines in this rule. At this time, however, the BART regulatory obligations, compliance strategies, and costs remain uncertain due to the continued legal uncertainty surrounding CSAPR. Solid Waste EPA's Coal Combustion Residuals Rule In December 2014, the EPA finalized its Disposal of Coal Combustion Residuals from Electric Utilities (CCR) rule. The rule became effective in October 2015. It provides that coal ash will be regulated as a solid waste, and defines what ash use activities would be considered generally exempt beneficial reuse of coal ash. T he rule also regulates landfills, ash ponds, and other surface impoundments for coal combustion residuals by regulating their design, location, monitoring, and operation. Landfills and impoundments that cannot meet design criteria will need to formally clo se within defined timeframes. 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 oper ational changes may need to be made at these facilities. Review of our Elm Road facility has indicated that the costs to comply with this rule are not expected to be significant. We are still evaluating the rule's full effects at Columbia. Columbia's opera tor has developed a preliminary implementation schedule for meeting the various deadlines spelled out in the rule. Management believes compliance costs will be recovered in future rates based on previous treatment of environmental compliance projects. Col umbia 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 Liti gation Columbia is a coal-fired generating station operated by WPL in which WPL, WPSC, and MGE have ownership interests. In December 2009, the EPA sent a Notice of Violation (NOV) to MGE as one of the co-owners of Columbia. The NOV alleged that WPL and the Columbia co-owners failed to comply with appropriate pre-construction review and permitting requirements and, as a result, violated the Prevention of Significant Deterioration program requ irements, Title V Operating Permit requirements of the CAA, and the Wisconsin SIP. In April 2013, the EPA filed a lawsuit against the co-owners of Columbia asserting similar allegations. In September 2010 and April 2013, the Sierra Club filed civil lawsuit s against WPL alleging violations of the CAA at Columbia and other Wisconsin facilities operated by WPL. In June 2013, the court approved and entered a consent decree entered by the EPA, Sierra Club, and the co-owners of Columbia to resolve these claims, w hile admitting no liability. One of the requirements of the consent decree requires installation of an SCR system at Columbia Unit 2 by December 31, 2018. Installation of the SCR has been approved by the PSCW. MGE's share of the projected cost for the SCR system is approximately $19-$29 million. In addition, the consent decree establishes emission rate limits for SO 2 , NO x , and particulate matter and annual plant-wide emission caps for SO 2 and NO x . MGE intends to seek recovery in future rates of the costs as sociated with its compliance with the terms of the final consent decree and currently expects to recover any material compliance costs. d . Legal Matters - MGE Energy and MGE. M GE 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 . e . Other Commitments. MGE Energy holds investment s in nonpublic entities. From time to time, these entities require additional capital infusions from their investors. MGE Energy has committed to contribute $ 1.6 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 201 6 . MGE Ene rgy has committed to invest up to a t otal of $ 1.5 million into this fund. As of December 31, 2015 , MGE Energy has $ 0.7 million remaining in commitments. The timing of infusions is dependent on the need s 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) 2016 2017 2018 2019 2020 Thereafter Other commitments $ 612 $ 523 $ 509 $ 511 $ 497 $ 6,086 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2015 | |
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 U nits, electric substation s, combustion turbine generating unit s , wind generating facilities, and photovoltaic generating facilities, all of which are loca ted on property not owned by MGE Energy and MGE and would need to be removed upon the ultimate end of the associated lease s . 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 PCB s, and the proper disposal and removal of tanks , batteries, and underground cable . Changes in management ' s assumptions regarding settlement dates, settlement methods, or assig ned pro babilities could have a material effect on the liabilities recorded by MGE at December 31, 2015 , 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 faci lities. 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 r easonably determined due to the indeterminate life of the related agreements. The following table shows a rollforward of the AROs from January 1, 2014 , to December 31, 2015 . Amounts include conditional AROs. (In thousands) 2015 2014 Balance at January 1, $ 19,744 $ 19,359 Liabilities incurred (a) 2,380 68 Accretion expense 1,131 1,077 Liabilities settled (124) (343) Revisions in estimated cash flows (a) 1,229 (417) Balance at December 31, $ 24,360 $ 19,744 (a) In the second quarter of 2015 , MGE recorded an obligation of $2.3 million for the fair value of its legal liability for AROs associated with the effect of the final Coal Combustion Residual Rule at Columbia. An additional $1.3 million was recorded in the fourth quarter, associated with this ARO, based on revised estimates. |
Adoption of Accounting Principl
Adoption of Accounting Principles and Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
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. 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 became effective January 1, 2015. The authoritative guidance ch anged the accounting for the Chattel Paper program and required additional disclosures. Prior to adoption of the standard, Chattel Paper was treated as an off-balance sheet arrangement. See Footnote 1.h for additional information. b. Revenue from Contract s 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 g uidance was scheduled to become effective January 1, 2017. In July 2015, the FASB deferred the effective date to January 1, 2018. MGE Energy and MGE are currently assessing the impact this pronouncement will have on their financial statements. c. Consolid ations. In February 2015, the FASB issued authoritative guidance within the Codification ' s Consolidation topic that provides guidance on the evaluation of certain legal entities for consolidation purposes. This authoritative guidance is effective January 1, 2016. The impact of this guidance on our financial statements is not expected to be material. d. Debt Issuance Costs. In April 2015, the FASB issued authoritative guidance within the Codification ' s Interest topic that provides guidance on the presenta tion of debt issuance costs in financial statements. This authoritative guidance is effective January 1, 2016. The authoritative guidance changes the presentation of debt issuance costs on the balance sheet from an asset to a direct deduction from the rela ted debt liability. The impact of this guidance on our financial statements is not expected to be material. e. Cloud Computing Arrangements. In April 2015, the FASB issued authoritative guidance within the Codification ' s Software topic that provides guid ance on the accounting treatment of cloud computer arrangements. This authoritative guidance is effective January 1, 2016. The authoritative guidance provides criteria for determining whether a cloud computing arrangement contains a software license that s hould be accounted for as internal-use software. The impact of this guidance on our financial statements is not expected to be material. f. Inventory Measurement . In July 2015, the FASB issued authoritative guidance within the Codification ' s Inventory topic that provides guidance on the subsequent measurement of inventory. This authoritative guidance will become effective January 1, 2017. The authoritative guidance changes the subsequent measurement of inventory from the lower of cost or market to the l ower of cost or net realizable value. MGE Energy and MGE are currently assessing the impact this pronouncement will have on their financial statements. g. Deferred Income Taxes . In November 2015, the FASB issued authoritative guidance within the Codification's Income Taxes topic that provides guidance on the presentation of deferred taxes in financial statements. This authoritative guidance will become effective January 1, 2017, a nd changes the presentation of deferred taxes on the consolidated balance sheets. The authoritative guidance states that earlier adoption of the ASU is permitted using either prospective or retrospective application. Prior to the authoritative guidance, de ferred taxes were presented as a net current asset or liability and net noncurrent asset or liability. As a result of the adoption of this standard, all deferred tax assets and liabilities, along with any related valuation allowance, will be classified as noncurrent on the consolidated balance sheets. MGE Energy and MGE have early adopted this standard for the year ended December 31, 2015, and retrospectively applied the guidance to all prior periods presented. See Footnote 12 for additional information . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
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 control ling 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 p rovides electric transmission services primarily in Wisconsin. See Footnote 4 for further discussion of MGE Transco and the investment in ATC. The "All O ther s" segment includes: corporate, CWDC, MAGAEL, MGE State Energy Services, MGE 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. Identi fiable 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 el ectric segment and MGE Power Elm Road /MGE Power West Campus are based on terms previously approved by the PSCW. Consistent wi th internal reporting, management has presented the direct financing capital lease s 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, 2015 Operating revenues $ 412,528 $ 143,737 $ 7,763 $ - $ - $ - $ 564,028 Interdepartmental revenues 513 11,780 39,435 - - (51,728) - Total operating revenues 413,041 155,517 47,198 - - (51,728) 564,028 Depreciation and amortization (29,945) (6,758) (7,475) - (47) - (44,225) Other operating expenses (318,001) (128,241) (158) (19) (857) 51,728 (395,548) Operating income (loss) 65,095 20,518 39,565 (19) (904) - 124,255 Other (deductions) income, net 400 (33) - 7,728 518 - 8,613 Interest (expense) income, net (11,187) (3,203) (5,993) - 221 - (20,162) Income (loss) before taxes 54,308 17,282 33,572 7,709 (165) - 112,706 Income tax (provision) benefit (17,915) (6,915) (13,474) (3,102) 43 - (41,363) Net income (loss) $ 36,393 $ 10,367 $ 20,098 $ 4,607 $ (122) $ - $ 71,343 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 (In thousands) MGE Electric Gas Non-Regulated Energy Transmission Investment Consolidation/ Elimination Entries Consolidated Total Year Ended December 31, 2015 Operating revenues $ 412,550 $ 143,752 $ 7,763 $ - $ - $ 564,065 Interdepartmental revenues 491 11,765 39,435 - (51,691) - Total operating revenues 413,041 155,517 47,198 - (51,691) 564,065 Depreciation and amortization (29,945) (6,758) (7,475) - - (44,178) Other operating expenses* (335,803) (135,124) (13,632) (19) 51,691 (432,887) Operating income (loss)* 47,293 13,635 26,091 (19) - 87,000 Other (deductions) income, net* 287 (65) - 4,626 - 4,848 Interest expense, net (11,187) (3,203) (5,993) - - (20,383) Net income 36,393 10,367 20,098 4,607 - 71,465 Less: Net income attributable to noncontrolling interest, net of tax - - - - (26,097) (26,097) Net income attributable to MGE $ 36,393 $ 10,367 $ 20,098 $ 4,607 $ (26,097) $ 45,368 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 *Amounts are shown net of the related tax expense, consistent with the presentation on the MGE Consolidated Statements of Income. 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 Assets not Allocated Non-regulated Energy Transmission Investment All Others Consolidation/ Elimination Entries Total Assets: December 31, 2015 $ 976,271 $ 299,792 $ 49,753 $ 278,735 $ 69,470 $ 434,868 $ (378,216) $ 1,730,673 December 31, 2014 (a) 948,005 307,582 41,124 281,514 67,697 438,898 (390,636) 1,694,184 December 31, 2013 899,257 265,694 19,853 288,116 64,504 431,436 (389,800) 1,579,060 Capital Expenditures: Year ended Dec. 31, 2015 $ 49,370 $ 18,787 $ - $ 3,873 $ - $ - $ - $ 72,030 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 Utility Consolidated (In thousands) MGE Electric Gas Assets not Allocated Non-regulated Energy Transmission Investment Consolidation/ Elimination Entries Total Assets: December 31, 2015 $ 976,271 $ 299,792 $ 49,753 $ 278,685 $ 69,470 $ (187) $ 1,673,784 December 31, 2014 (a) 948,005 307,582 41,124 281,464 67,697 (6,521) 1,639,351 December 31, 2013 899,257 265,694 19,853 288,066 64,504 (6,731) 1,530,643 Capital Expenditures: Year ended Dec. 31, 2015 $ 49,370 $ 18,787 $ - $ 3,873 $ - $ - $ 72,030 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 (a) Reflects retrospective application of new accounting pronouncement. See Footnote 12 for additional information. |
Quarterly Summary of Operations
Quarterly Summary of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary of Operations | Qu arterly Summary of Operations - MGE Energy (unaudited). (In thousands, except per share amounts) Quarters Ended 2015 March 31 June 30 September 30 December 31 Operating revenues: Regulated electric revenues $ 98,240 99,481 121,453 $ 93,354 Regulated gas revenues 69,928 20,669 17,431 35,709 Nonregulated revenues 1,966 1,976 1,911 1,910 Total Operating Revenues 170,134 122,126 140,795 130,973 Operating expenses 138,283 98,077 94,618 108,795 Operating income 31,851 24,049 46,177 22,178 Interest and other income, net (2,986) (2,562) (2,472) (3,529) Income tax provision (10,587) (8,008) (15,351) (7,417) Earnings on common stock $ 18,278 $ 13,479 $ 28,354 $ 11,232 Earnings per common share $ 0.53 $ 0.39 $ 0.82 $ 0.32 Dividends per share $ 0.283 $ 0.283 $ 0.295 $ 0.295 2014 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 $ 0.80 $ 0.41 $ 0.67 $ 0.44 Dividends per share $ 0.272 $ 0.272 $ 0.283 $ 0.283 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, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions - MGE Energy and MGE. ATC During 2015 , 2014 , and 2013 , MGE recorded $ 28.2 million, $ 26.8 million, and $ 27.7 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 years ended December 31, 2015 and 2013 , MGE had a receivable due from ATC of $ 0.2 million. For the year ended December 31, 2014 , MGE had a receivable due from ATC of $ 0.1 million . For additional discussion on MGE's relationship with ATC, see Footnote 4. |
Condensed Parent Company Financ
Condensed Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Operating Expenses: Other operations and maintenance $ 690 $ 689 $ 613 Total Operating Expenses 690 689 613 Operating Loss (690) (689) (613) Equity in earnings of investments 71,306 81,811 76,362 Other income/(loss), net 526 (1,879) (1,863) Other interest 136 93 55 Income before income taxes 71,278 79,336 73,941 Income tax provision 65 983 964 Net Income 71,343 80,319 74,905 Other Comprehensive Income, Net of Tax: Unrealized (loss) gain on available-for-sale securities, net of tax ($67, ($54), and ($189)) (101) 81 283 Comprehensive Income $ 71,242 $ 80,400 $ 75,188 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, 2015 2014 2013 Net Cash Flows Provided by Operating Activities $ 37,085 $ 48,165 $ 53,952 Investing Activities: Other investing (3,690) (2,422) (2,425) Cash Used for Investing Activities (3,690) (2,422) (2,425) Financing Activities: Cash dividends paid on common stock (40,043) (38,429) (37,107) Other financing - (89) (97) Cash Used for Financing Activities (40,043) (38,518) (37,204) Change in cash and cash equivalents: (6,648) 7,225 14,323 Cash and cash equivalents at beginning of period 58,429 51,204 36,881 Cash and cash equivalents at end of period $ 51,781 $ 58,429 $ 51,204 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 2015 2014 Current Assets: Cash and cash equivalents $ 51,781 $ 58,429 Accounts receivable, net: Accounts receivable from affiliates 20 64 Other current assets 1,386 2,809 Total Current Assets 53,187 61,302 Other deferred assets and other 249 140 Investments: Investments in affiliates 649,276 619,563 Other investments 1,447 1,177 Total Investments 650,723 620,740 Total Assets $ 704,159 $ 682,182 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable to affiliates $ 530 $ 7,096 Accrued taxes 263 663 Other current liabilities 144 2,601 Total Current Liabilities 937 10,360 Other Credits: Deferred income taxes 7,998 7,125 Accounts payable to affiliates 4,766 5,296 Total Other Credits 12,764 12,421 Shareholders' Equity: Common shareholders' equity 350,936 350,936 Retained income 339,165 308,007 Other comprehensive income 357 458 Total Shareholders' Equity 690,458 659,401 Commitments and contingencies (see Footnote 3) - - Total Liabilities and Shareholders' Equity $ 704,159 $ 682,182 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 Co mpany 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, 2015 . 2. Credit Agreements. As of December 31, 2015 , MGE Energy had access to an unsecured , committed credit facility with ag gregate bank commitments of $ 50.0 million . At December 31, 2015 , 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. Dividend s from Affiliates. Dividends from Affiliates (In thousands) 2015 2014 2013 MGE $ 30,000 $ 26,500 $ 25,000 MGE Power Elm Road 10,000 13,500 17,300 MGE Power West Campus 3,000 6,000 9,250 MGE Transco 1,708 1,859 816 Total $ 44,708 $ 47,859 $ 52,366 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 dividen ds , above the PSCW authorized amount of $43 million , 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, 2015 is 59.7 % as determined under the calculation used in the rate proceeding. MGE paid cash dividends of $ 30.0 million to MGE Energy in 2015 . The rate proceeding calculation includes as indebtedness imputed amounts for MGE's outstanding purcha se 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 ha s 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 di stributions 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, 2015 , approximately $ 353.0 million was available for the payment of dividends under this covenant. See Footnotes 9 and 10 of the Notes to Consolidated Financial Statements for long-term debt and lines of credit dividend restrictions. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
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 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 Fiscal Year 2015: Accumulated provision for uncollectibles $ 4,748,657 595,500 25,500 (1,675,577) $ 3,694,080 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - MGE Energy and MGE. The consolidated financial statements are prepared in confor mity with accounting principles generally acce pted in the U nited 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 co nform to the FERC uniform system of acco unts . |
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, MGE Services, and NGV Fuel ing 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 generatio n 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 holde rs 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 t o 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 cert ain 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" on the consolidated balance sheets . |
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 " O ther current assets " on the consolidated balance sheets . As of December 31, 2015 and 2014 , the receivable – margin account balance of $ 2.3 million and $ 2.2 million, respectively, is shown net of any collateral posted against derivative positions. As of December 31, 2015 and 2014 , there was $ 1.0 million and $ 2.2 million, respectively, of collateral posted against derivative positions. Changes in this cash account are consi dered 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 manages this c oncentration 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, and renewable energy credits (R ECs). MGE values natural gas in storage, fossil fuels, and materials and supplies using average cost. REC allowances are included in "Materials and supplies" on the consolidated balance sheets and are recorded based on specific identification. These allo wances are charged to purchase power expense as they are used in operations. |
Chattel Paper Agreement | 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. The energy-related equipment installed at the customer sites is used to secure the customer loans. MGE is a party to a chattel paper purchase agreement with a financial institution under which it can sell or finance an undivided interest with rec ourse, in up to $ 10.0 million of the financing program receivables, until July 31, 2016. 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 . The loan balances outstanding at December 31, 2015 , approximate the fair value of the energy-related equipment acting as collateral. MGE accounts for these agreements as secured borrowings. Prior to the Transfers and Servicing Asset authoritative accou nting guidance that became effective in 2015, these agreements were treated as off-balance sheet arrangements. Beginning January 1, 2015, these agreements are included as assets and liabilities in the consolidated balance sheets. As of December 31, 2015 , a ssets ( " Other accounts receivable " and " Other deferred assets " ) and liabilities ( " Accounts payable " and "O ther deferred liabilities " ) increased approximately $ 3.7 million as a cumulative result of the guidance. In additi on, the cumulative effect of this guidance resulted in a $ 0.1 million reduction in retained earnings. |
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. Regulator y 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 re funded, respectively, in future rates. |
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 ch arged 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. Provisions at composite straight-line depreciation rates ap proximate the following percentages for the cost of depreciable property: 2015 2014 2013 Electric 2.6 % 2.6 % 2.7 % Gas 1.7 % 1.7 % 1.7 % Nonregulated 2.4 % 2.4 % 2.3 % |
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 "O ther long-term liabilities " on our consolidated 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 sheets. |
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 consolidated inco me statements 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. |
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 shareholder ' s 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 shareholder ' s capital (AFUDC-equity funds) is shown as an item within "Other income." For 2015 , as approved by the PSCW, MGE capitalized AFUDC-debt and equity on 50 % of applicable average construction work in progress at 7.93 %. For both 2014 and 2013 , MGE capitalized AFUDC-debt and equity on 50 % of applicable average construction work in progress at 8.21 %. For 2015 and 2014 , 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 propert ies. |
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. |
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 $ 12.0 million and $ 8.4 million at December 31, 2015 and 2014 , respectively. During 2015 , 2014 , and 2013 , MGE recorded $ 2.2 million, $ 1.6 million, and $ 1.5 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 recogni ze 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 meas ured 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 suc h 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 princip les 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. In November 2015, the FASB issued authoritative accounting guidance on the presentation of deferred taxes in the financial statements. Prior to the authoritative guidance, deferred taxes were presented as a net current asset or liability and net noncurrent asset or liability. As a result of the Accounting Standard Update (ASU), all deferred tax assets and liabilities, along with any related valuation allowance, will be classified as noncurrent on the consolidated balance sheets. The authoritative guidance s tates that early adoption of the ASU is permitted using either prospective or retrospective application. MGE Energy and MGE have adopted this standard early by retrospectively applying the guidance to all prior periods presented in addition to the current year ended December 31, 2015. For MGE Energy and MGE , as of December 31, 2014, current assets ( " D eferred income tax es " ) decreased by approximately $ 3.5 million and $ 1.3 million, respectively, and noncurrent liabilities ( " Defe rred income tax es " ) decreased by approximately $ 3.5 million and $ 1.3 million, respectively, as a c umulative result of the guidance. 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 $ 14.7 million, $ 14.6 million, and $ 13.8 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Operating income taxes, includ ing 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 th e 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 plan s . 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 durin g the requisite period are recognized as compensation cost over that period. See Footnote 14 for additional information regarding the plans. |
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. 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 de rivative 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 mark ed to fair value and are 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. A ll sales under the Stock Plan are covered by a shelf registration statement that MGE Energy filed with the SEC. MGE Energ y 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 accounting standard clarifies that fair value should be based on the assumptions market participants would use when pricing the asset or liability including ass umptions 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 p rices 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 mod el-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, 2015 and 2014 , 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 's long-term debt is based on quoted market prices for similar financial instruments at December 31 . S ince 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, 2015 . I nvestments include exchange-traded investment securities valued using quoted prices on active exchanges and are therefore classified as Level 1. Derivatives include exchange-traded derivative c ontracts, over-the-counter transactions, a 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 Le vel 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 instru ments in a closed market with limited data available and are therefore classified as Level 3 . The purchased power agreement (see Footnote 16) was valued using an internally-developed pricing model and therefore is classified as Level 3. The model project s 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 cu rve 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 marke t 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 proj ected 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 th at 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, cre dit, and model risks. This model is prepared by members of MGE ' s Energy Accounting department . O n a quarterly basis , management in the Energy Supply and Finance departments 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 2015 2014 Basis adjustment: On peak 96.9 % 98.1 % Off peak 95.1 % 95.0 % Counterparty fuel mix: Internal generation 60%-75% 50%-70% Purchased power 40%-25% 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 $ 2.5 million and $ 0.4 million ar e liabilities shown with " Other deferred l iabilities " on the December 31, 2015 and 2014 , consolidated balance sheets , respectively . At December 31, 2014 , $ 2.0 mi llion of unrecognized tax benefits are netted with deferred tax liabilities 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 ad ded. At December 31, 2015 and 2014 , 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 distributio n 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 unrec ognized tax benefits at December 31, 2015 , 2014 , or 2013 related to federal permanent differences and tax credits. The unrecognized tax benefits at December 31, 2015 , are not expected to significantly increase or decrease within the next twelve mo nths. 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 po stretirement 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, 2015 : Cash and Cash Equivalents – This category includes highly liquid investments with maturities of less than three months which are traded in active markets. 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 fun ds 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 – Th e 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 b ased on the cash flow timing and quality of assets. |
Regional Transmission Organizations | |
Regional Transmission Organizations | MGE reports on a net basis transactions on the MISO ma rkets in which it buys and sells power within the same hour to meet electric energy delivery requirements. |
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 . 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 deri vatives in the consolidated balance sheets at fair value . MGE's commodity derivative activities are conducted in accordance with its electric and gas risk management program, which is approved by the PSCW and limits the volume MGE can hedge with spec ific 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 throug h 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 statem ent purposes, MGE Energy and MGE have netted instruments with the same counterparty under a master netting agreement as well as the netting of collateral. |
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. 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 became effective January 1, 2015. The authoritative guidance ch anged the accounting for the Chattel Paper program and required additional disclosures. Prior to adoption of the standard, Chattel Paper was treated as an off-balance sheet arrangement. See Footnote 1.h for additional information. b. Revenue from Contract s 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 g uidance was scheduled to become effective January 1, 2017. In July 2015, the FASB deferred the effective date to January 1, 2018. MGE Energy and MGE are currently assessing the impact this pronouncement will have on their financial statements. c. Consolid ations. In February 2015, the FASB issued authoritative guidance within the Codification ' s Consolidation topic that provides guidance on the evaluation of certain legal entities for consolidation purposes. This authoritative guidance is effective January 1, 2016. The impact of this guidance on our financial statements is not expected to be material. d. Debt Issuance Costs. In April 2015, the FASB issued authoritative guidance within the Codification ' s Interest topic that provides guidance on the presenta tion of debt issuance costs in financial statements. This authoritative guidance is effective January 1, 2016. The authoritative guidance changes the presentation of debt issuance costs on the balance sheet from an asset to a direct deduction from the rela ted debt liability. The impact of this guidance on our financial statements is not expected to be material. e. Cloud Computing Arrangements. In April 2015, the FASB issued authoritative guidance within the Codification ' s Software topic that provides guid ance on the accounting treatment of cloud computer arrangements. This authoritative guidance is effective January 1, 2016. The authoritative guidance provides criteria for determining whether a cloud computing arrangement contains a software license that s hould be accounted for as internal-use software. The impact of this guidance on our financial statements is not expected to be material. f. Inventory Measurement . In July 2015, the FASB issued authoritative guidance within the Codification ' s Inventory topic that provides guidance on the subsequent measurement of inventory. This authoritative guidance will become effective January 1, 2017. The authoritative guidance changes the subsequent measurement of inventory from the lower of cost or market to the l ower of cost or net realizable value. MGE Energy and MGE are currently assessing the impact this pronouncement will have on their financial statements. g. Deferred Income Taxes . In November 2015, the FASB issued authoritative guidance within the Codification's Income Taxes topic that provides guidance on the presentation of deferred taxes in financial statements. This authoritative guidance will become effective January 1, 2017, a nd changes the presentation of deferred taxes on the consolidated balance sheets. The authoritative guidance states that earlier adoption of the ASU is permitted using either prospective or retrospective application. Prior to the authoritative guidance, de ferred taxes were presented as a net current asset or liability and net noncurrent asset or liability. As a result of the adoption of this standard, all deferred tax assets and liabilities, along with any related valuation allowance, will be classified as noncurrent on the consolidated balance sheets. MGE Energy and MGE have early adopted this standard for the year ended December 31, 2015, and retrospectively applied the guidance to all prior periods presented. See Footnote 12 for additional information . |
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 control ling 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 p rovides electric transmission services primarily in Wisconsin. See Footnote 4 for further discussion of MGE Transco and the investment in ATC. The "All O ther s" segment includes: corporate, CWDC, MAGAEL, MGE State Energy Services, MGE 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. Identi fiable 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 el ectric segment and MGE Power Elm Road /MGE Power West Campus are based on terms previously approved by the PSCW. Consistent wi th internal reporting, management has presented the direct financing capital lease s 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 Accoun40
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Remaining Contractual Maturities for Chattel Paper Agreements | As of December 31, 2015 , the remaining contractual maturities of the chattel paper agreements were as follows: (In thousands) 2016 2017 2018 2019 2020 Thereafter Repurchase-to-Maturity Transactions: Loans $ 706 $ 476 $ 508 $ 477 $ 445 $ 1,059 |
Straight-Line Depreciation Rates | Provisions at composite straight-line depreciation rates ap proximate the following percentages for the cost of depreciable property: 2015 2014 2013 Electric 2.6 % 2.6 % 2.7 % Gas 1.7 % 1.7 % 1.7 % Nonregulated 2.4 % 2.4 % 2.3 % |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 sheets related to its interest in this VIE: (In thousands) 2015 2014 Property, plant, and equipment, net $ 177,904 $ 179,620 Construction work in progress 2,400 1,976 Affiliate receivables - 1,742 Deferred income taxes 40,865 40,044 Long-term debt 65,305 67,972 Noncontrolling interest 79,113 72,537 |
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 ac counts on its consolidated balance sheets related to its interest in this VIE: (In thousands) 2015 2014 Property, plant, and equipment, net $ 84,403 $ 86,763 Affiliate receivables 5,295 5,862 Deferred income taxes 19,612 23,813 Long-term debt 46,703 48,218 Noncontrolling interest 37,603 30,755 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2015 2014 Utility: Electric $ 1,147,701 $ 1,110,953 $ 1,147,718 $ 1,110,970 Gas 384,163 369,975 384,175 369,987 Total utility plant 1,531,864 1,480,928 1,531,893 1,480,957 Less: Accumulated depreciation and amortization 578,410 559,615 578,410 559,615 In-service utility plant, net 953,454 921,313 953,483 921,342 Nonregulated: Nonregulated 315,589 313,152 314,750 312,314 Less: Accumulated depreciation and amortization 51,949 45,388 51,818 45,305 In-service nonregulated plant, net 263,640 267,764 262,932 267,009 Construction work in progress: Utility construction work in progress 23,837 16,988 23,837 16,988 Nonregulated construction work in progress 2,514 2,041 2,514 2,041 Total property, plant, and equipment $ 1,243,445 $ 1,208,106 $ 1,242,766 $ 1,207,380 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments Disclosure [Abstract] | |
Equity Method, Available for Sale Securities, and Other Investments | MGE Energy MGE (In thousands) 2015 2014 2015 2014 Available for sale securities: Cost basis $ 2,225 $ 1,964 $ 480 $ 489 Gross unrealized gains 599 765 40 240 Gross unrealized losses (2) - (2) - Fair value 2,822 2,729 518 729 Equity method investments: ATC 69,466 67,673 69,466 67,673 Other 1,184 1,199 - - Total equity method investments 70,650 68,872 69,466 67,673 Other investments 159 159 - - Total $ 73,631 $ 71,760 $ 69,984 $ 68,402 During the years ended December 31, 2015 , 2014 , and 2013 , certain inves tments were liquidated. As a result of these liquidations, MGE Energy and MGE received the following: MGE Energy MGE (In thousands) 2015 2014 2013 2015 2014 2013 Cash proceeds $ 19 $ 38 $ 39 $ 19 $ - $ 16 Gain (loss) on sale 10 21 2 10 - (3) |
ATC's Summarized Financial Data | For the years ended December 31, 2015 , 2014 , and 2013 , MGE Transco recorded the following: (In thousands) 2015 2014 2013 Equity in earnings from investment in ATC $ 7,728 $ 9,150 $ 9,434 Dividends received from ATC 6,645 7,740 7,404 Capital contributions to ATC 710 1,775 1,420 ATC's summarized financial data for the years ended December 31, 2015 , 2014 , and 2013 is as follows: (In thousands) Income statement data for the year ended December 31, 2015 2014 2013 Operating revenues $ 615,836 $ 635,033 $ 626,336 Operating expenses (319,321) (307,451) (295,069) Other income 1,176 117 831 Interest expense, net (97,250) (88,970) (84,484) Earnings before members' income taxes $ 200,441 $ 238,729 $ 247,614 Balance sheet data as of December 31, 2015 2014 2013 Current assets $ 80,520 $ 66,410 $ 80,715 Noncurrent assets 3,957,576 3,728,675 3,509,517 Total assets $ 4,038,096 $ 3,795,085 $ 3,590,232 Current liabilities $ 330,248 $ 313,065 $ 381,467 Long-term debt 1,800,029 1,701,000 1,550,000 Other noncurrent liabilities 244,991 163,818 126,167 Members' equity 1,662,828 1,617,202 1,532,598 Total members' equity and liabilities $ 4,038,096 $ 3,795,085 $ 3,590,232 |
Joint Plant Ownership (Tables)
Joint Plant Ownership (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 dep reciation reserves at December 31 were as follows: (In thousands) 2015 2014 Utility plant $ 273,762 $ 268,597 Accumulated depreciation (84,864) (80,645) Property, plant, and equipment, net 188,898 187,952 Construction work in progress 17,110 6,941 Total property, plant, and equipment $ 206,008 $ 194,893 |
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 depreci ation reserves at December 31 were as follows: (In thousands) 2015 2014 Nonregulated plant $ 202,326 $ 199,582 Accumulated depreciation (24,422) (19,962) Property, plant, and equipment, net 177,904 179,620 Construction work in progress 2,400 1,976 Total property, plant, and equipment $ 180,304 $ 181,596 |
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 a ccumulated depreciation reserves at December 31 were as follows: (In thousands) 2015 2014 Nonregulated plant $ 111,141 $ 111,453 Accumulated depreciation (26,738) (24,691) Property, plant, and equipment, net $ 84,403 $ 86,762 |
Regulatory Assets and Liabili45
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | The following regulatory assets and liab ilities are reflected in MGE's c onsolidated b alance s heet s as of December 31: (In thousands) 2015 2014 Regulatory Assets Asset retirement obligation $ 4,849 $ 4,532 Debt related costs 10,672 11,133 Derivatives 54,083 54,998 Environmental costs 368 700 Tax recovery related to AFUDC equity 8,950 8,821 Unfunded pension and other postretirement liability 78,181 84,551 Other 634 448 Total Regulatory Assets $ 157,737 $ 165,183 Regulatory Liabilities Conservation costs $ 231 $ 680 Deferred fuel savings 9,515 755 Elm Road 643 1,497 Income taxes 1,559 1,794 Non-ARO removal costs 17,137 16,129 Renewable energy credits 327 753 Other 888 1,107 Total Regulatory Liabilities $ 30,300 $ 22,715 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) - MGE [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest in Balance Sheet | The noncontrolling interest on MGE ' s consolidated balance sheets at December 31 was as follows: (In thousands) 2015 2014 MGE Power Elm Road (a) $ 79,113 $ 72,537 MGE Power West Campus (a) 37,603 30,755 MGE Transco (b) 23,592 22,397 Total Noncontrolling Interest $ 140,308 $ 125,689 |
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, 2015 , 2014 , and 2013 was as follows : (In thousands) 2015 2014 2013 MGE Power Elm Road (a) $ 16,577 $ 16,160 $ 17,373 MGE Power West Campus (a) 7,348 7,666 7,657 MGE Transco (b) 2,172 2,484 2,408 Net Income Attributable to Noncontrolling Interest, Net of Tax $ 26,097 $ 26,310 $ 27,438 (a) MGE Power Elm Road and MGE Power West Campus are not su bsidiaries 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 consolidated financial statements as noncontrolling interest. (b ) At December 31, 2015 , MGE is the majority owner, and MGE Energy is the minority owner, of MGE Transco. MGE Energy's proportionat e share of the equity and net income of MGE Transco is classified within the MGE consolidated financial statements as noncontrolling interest . In mid-2016, MGE is no longer expected to be the majority owner of MGE Transco. The change will have no effect on MGE Energy' s consolidated financial statements; however, MGE Energy ' s proportionate share of the equity and net income of MGE Transco will be deconsolidated from MGE’s financial statements. No gain or loss is expected to be recognized on the date MGE ceases to have a controlling financial interest . |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | 2015 2014 (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) 28,063 28,063 28,954 28,954 5.19%, due 2033 (e) 18,640 18,640 19,264 19,264 5.26%, due 2040 (d) 15,000 15,000 15,000 15,000 5.04%, due 2040 (f) 40,138 40,138 41,805 41,805 4.74%, due 2041 (f) 25,167 25,167 26,167 26,167 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 275,008 275,008 279,190 279,190 Long-term debt due within one year (4,266) (4,266) (4,182) (4,182) Unamortized discount (228) (228) (252) (252) Total Long-Term Debt $ 391,014 $ 391,014 $ 395,256 $ 395,256 (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, 2015 , approximately $ 353.0 million was available for the payment of dividends under this covenant. (b ) T he indenture under which MGE's Medium-T erm 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 v oting 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 subsidiarie s. As of December 31, 2015 , MGE was 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 tha n 0.65 to 1.00 . The notes are secured by a collateral assignment of lease payments th at 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, 2015 , MGE Power West Campus was 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 lease s . As of December 31, 2015 , MGE Power Elm Road was 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, 2015 , consolida ted balance sheet s . MGE (In thousands) Energy MGE * 2016 $ 4,266 $ 4,266 2017 34,358 34,358 2018 24,452 24,452 2019 4,553 4,553 2020 19,659 19,659 Future years 308,220 308,220 Total $ 395,508 $ 395,508 * Includes $ 46.7 million for MGE Power West Campus and $ 65.3 million for MGE Power Elm Road, all of which are consolidated wi th MGE's debt (see Footnote 2 for further information) . |
Notes Payable to Banks, Comme48
Notes Payable to Banks, Commercial Paper, and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 MGE Energy (a) Available lines of credit $ 150,000 $ 150,000 $ 150,000 Short-term debt outstanding $ - $ 7,000 $ - Weighted-average interest rate - % 0.20 % - % During the year: Maximum short-term borrowings $ 17,500 $ 9,000 $ 32,000 Average short-term borrowings $ 1,511 $ 182 $ 6,992 Weighted-average interest rate 0.17 % 0.24 % 0.18 % MGE Available lines of credit $ 100,000 $ 100,000 $ 100,000 Commercial paper outstanding $ - $ 7,000 $ - Weighted-average interest rate - % 0.20 % - % During the year: Maximum short-term borrowings $ 17,500 $ 9,000 $ 32,000 Average short-term borrowings $ 1,511 $ 182 $ 6,992 Weighted-average interest rate 0.17 % 0.24 % 0.18 % (a) MGE Energy short-term borrowings include MGE Energy and MGE lines of credit and MGE commercial paper. |
Fair Value of Financial Instr49
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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: 2015 2014 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value MGE Energy Assets: Cash and cash equivalents $ 81,384 $ 81,384 $ 65,755 $ 65,755 Liabilities: Short-term debt - commercial paper - - 7,000 7,000 Long-term debt* 395,508 435,767 399,690 457,420 MGE Assets: Cash and cash equivalents $ 26,760 $ 26,760 $ 4,562 $ 4,562 Liabilities: Short-term debt - commercial paper - - 7,000 7,000 Long-term debt* 395,508 435,767 399,690 457,420 *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, 2015 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net $ 234 $ - $ - $ 234 Exchange-traded investments 759 759 - - Total Assets $ 993 $ 759 $ - $ 234 Liabilities: Derivatives, net (a) $ 54,316 $ 581 $ - $ 53,735 Deferred compensation 3,145 - 3,145 - Total Liabilities $ 57,461 $ 581 $ 3,145 $ 53,735 MGE Assets: Derivatives, net $ 234 $ - $ - $ 234 Exchange-traded investments 148 148 - - Total Assets $ 382 $ 148 $ - $ 234 Liabilities: Derivatives, net (a) $ 54,316 $ 581 $ - $ 53,735 Deferred compensation 3,145 - 3,145 - Total Liabilities $ 57,461 $ 581 $ 3,145 $ 53,735 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 (a) These amounts are shown gross and exclude $1.0 million and $2.2 million of collateral that was posted against derivative positions with counterparties as of December 31, 2015 and 2014, 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 2015 2014 Basis adjustment: On peak 96.9 % 98.1 % Off peak 95.1 % 95.0 % Counterparty fuel mix: Internal generation 60%-75% 50%-70% Purchased power 40%-25% 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) 2015 2014 2013 Balance as of January 1, $ (53,986) $ (64,628) $ (72,346) Realized and unrealized gains (losses): Included in regulatory liabilities 484 10,642 7,718 Included in other comprehensive income - - - Included in earnings (6,635) 5,129 (2,618) Included in current assets - - (108) Purchases 23,052 26,382 23,726 Sales 35 (125) (2) Issuances - - - Settlements (16,451) (31,386) (20,998) Transfers in and/or out of Level 3 - - - Balance as of December 31, $ (53,501) $ (53,986) $ (64,628) 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-count er party transactions, 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, 2015 2014 2013 Purchased power expense $ (6,663) $ 5,137 $ (2,618) Cost of gas sold expense 28 (8) - Total $ (6,635) $ 5,129 $ (2,618) ( b ) MGE's exchange-traded derivative contracts, over-the-count er party transactions, 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, 2015 | |
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) c omponents for the years ended December 31 : MGE Energy MGE (In thousands) 2015 2014 2013 2015 2014 2013 Current payable: Federal $ 16,837 $ (891) $ (1,508) $ 19,295 $ 637 $ (448) State 2,774 (589) 8,213 3,443 (451) 8,322 Net-deferred: Federal 15,951 39,284 37,203 13,538 38,553 36,937 State 5,976 10,600 1,163 5,305 10,625 1,223 Amortized investment tax credits (175) (219) (212) (175) (219) (212) Total income tax provision $ 41,363 $ 48,185 $ 44,859 $ 41,406 $ 49,145 $ 45,822 |
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 2015 2014 2013 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 5.2 % 5.1 % 5.1 % 5.2 % 5.1 % 5.1 % Amortized investment tax credits (0.2) % (0.2) % (0.2) % (0.2) % (0.2) % (0.2) % Credit for electricity from wind energy (1.8) % (1.7) % (1.5) % (1.8) % (1.7) % (1.5) % Domestic manufacturing deduction (1.4) % - % (0.2) % (1.4) % - % (0.2) % AFUDC equity, net (0.1) % (0.8) % (0.7) % (0.1) % (0.8) % (0.7) % Other, net, individually insignificant - % 0.1 % - % - % 0.1 % - % Effective income tax rate 36.7 % 37.5 % 37.5 % 36.7 % 37.5 % 37.5 % |
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 are as follows: MGE Energy MGE (In thousands) 2015 2014 2015 2014 Property-related $ 327,918 $ 312,903 $ 327,822 $ 312,807 Investment in ATC 38,213 36,140 30,382 29,156 Bond transactions 1,422 1,420 1,422 1,420 Pension and other postretirement benefits 57,697 57,847 57,697 57,847 Derivatives 21,660 22,331 21,660 22,331 Tax deductible prepayments 8,011 8,077 8,011 8,077 Other 14,997 10,451 14,831 10,259 Gross deferred income tax liabilities 469,918 449,169 461,825 441,897 Future tax benefit - (4,092) - (4,092) Accrued expenses (21,391) (32,091) (21,391) (32,091) Pension and other postretirement benefits (46,582) (44,994) (46,582) (44,994) Deferred tax regulatory account (1,047) (1,211) (1,047) (1,211) Derivatives (21,660) (22,331) (21,660) (22,331) Other (18,523) (5,957) (18,589) (3,746) Gross deferred income tax assets (109,203) (110,676) (109,269) (108,465) Less valuation allowance 70 70 70 70 Net deferred income tax assets (109,133) (110,606) (109,199) (108,395) Deferred income taxes $ 360,785 $ 338,563 $ 352,626 $ 333,502 |
Unrecognized Tax Benefits and Interest | A tabular reconciliation of unrecognized tax benefits and interest from January 1, 2013 to December 31, 2015 , is as follows: (In thousands) Unrecognized Tax Benefits: 2015 2014 2013 Unrecognized tax benefits, January 1, $ 2,365 $ 2,363 $ 3,204 Additions based on tax positions related to the current year 488 610 377 Additions based on tax positions related to the prior years 520 618 424 Reductions based on tax positions related to the current year - - (40) Reductions based on tax positions related to the prior years (845) (1,226) (1,602) Unrecognized tax benefits, December 31, $ 2,528 $ 2,365 $ 2,363 (In thousands) Interest on Unrecognized Tax Benefits: 2015 2014 2013 Accrued interest on unrecognized tax benefits, January 1, $ 92 $ 101 $ 314 Reduction in interest expense on uncertain tax positions (102) (97) (275) Interest expense on uncertain tax positions 321 88 62 Accrued interest on unrecognized tax benefits, December 31, $ 311 $ 92 $ 101 |
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 2012 through 2015 MGE Energy Wisconsin combined reporting corporation return 2011 through 2015 |
Pension Plans and Other Postr51
Pension Plans and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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: 2015 2014 2015 2014 Net benefit obligation at beginning of year $ 340,233 $ 283,958 $ 78,478 $ 66,100 Service cost 7,263 6,179 1,559 1,339 Interest cost 13,766 13,574 3,075 3,166 Plan participants' contributions - - 741 708 Actuarial (gain) loss (a) (17,576) 48,162 (5,828) 10,090 Gross benefits paid (11,121) (11,640) (3,280) (3,113) Less: federal subsidy on benefits paid (b) - - 190 188 Benefit obligation at end of year $ 332,565 $ 340,233 $ 74,935 $ 78,478 Change in Plan Assets: Fair value of plan assets at beginning of year $ 288,548 $ 277,398 $ 38,952 $ 37,602 Actual return on plan assets 4,153 21,907 603 2,558 Employer contributions 9,136 883 3,154 1,197 Plan participants' contributions - - 741 708 Gross benefits paid (11,121) (11,640) (3,280) (3,113) Fair value of plan assets at end of year $ 290,716 $ 288,548 $ 40,170 $ 38,952 Funded Status at December 31 $ (41,849) $ (51,685) $ (34,765) $ (39,526) (a) In 2014, lower discount rates and mortality table updates were the main drivers to the actuarial loss. (b) 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, 2015 and 2014 , 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) 2015 2014 2015 2014 Current liability $ (966) $ (1,025) $ (52) $ (65) Long-term liability (40,883) (50,660) (34,713) (39,461) Net liability $ (41,849) $ (51,685) $ (34,765) $ (39,526) |
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) 2015 2014 2015 2014 Net actuarial loss $ 80,660 $ 85,102 $ 13,086 $ 17,657 Prior service benefit (436) (413) (15,158) (17,827) Transition obligation - - 29 32 Total $ 80,224 $ 84,689 $ (2,043) $ (138) |
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 2015 2014 Projected benefit obligation, end of year $ 332,565 $ 340,233 Fair value of plan assets, end of year 290,716 288,548 |
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 2015 2014 Projected benefit obligation, end of year $ 332,565 $ 340,233 Accumulated benefit obligation, end of year 302,471 304,023 Fair value of plan assets, end of year 290,716 288,548 |
Net Periodic Benefit Costs | (In thousands) Pension Benefits Other Postretirement Benefits Components of Net Periodic Cost (Benefit): 2015 2014 2013 2015 2014 2013 Service cost $ 7,263 $ 6,179 $ 7,705 $ 1,559 $ 1,339 $ 2,380 Interest cost 13,766 13,574 12,656 3,075 3,166 3,871 Expected return on assets (22,682) (22,051) (19,027) (2,812) (2,615) (2,176) Amortization of: Transition obligation - - - 3 3 3 Prior service cost (benefit) 23 204 314 (2,669) (2,669) 110 Actuarial loss 5,395 703 8,014 953 252 1,236 Net periodic cost (benefit) $ 3,765 $ (1,391) $ 9,662 $ 109 $ (524) $ 5,424 |
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 2015 2014 2015 2014 Discount rate (a) 4.51 % 4.11 % 4.32 % 3.96 % Rate of compensation increase 3.78 % 3.85 % N/A N/A Assumed health care cost trend rates: Health care cost trend rate assumed for next year N/A N/A 6.5 % 6.5 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate N/A N/A 2022 2021 (a) In 2015, MGE refined its methodology for using discount rates to measure the components of net periodic benefit cost. The refined methodology uses individual spot rates, instead of a weighted average of the yield curve spot rates, for measuring the service cost and interest cost components. The change in methodology does not alter the measurement of the related benefit obl igation as of December 31, 2015 . 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 2015 2014 2013 2015 2014 2013 Discount rate 4.11 % 4.88 % 4.09 % 3.96 % 4.69 % 4.14 % Expected rate of return on plan assets 7.80 % 8.10 % 8.10 % 7.06 % 7.07 % 6.79 % Rate of compensation increase 3.84 % 3.93 % 4.60 % 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 2015 dollars: (In thousands) 1% Increase 1% Decrease Effect on other postretirement benefit obligation $ 1,391 $ (1,753) Effect on total service and interest cost components 80 (92) |
Fair Value of Plan Assets by Asset Category | The asset allocation for MGE's pension plans at the end of 2015 and 2014 , and the target al location for 2016 , by asset category, follows : Target Allocation Percentage of Plan Assets at Year End 2015 2014 Equity securities (a) 63.0 % 63.0 % 62.0 % Fixed income securities 30.0 % 29.0 % 31.0 % Real estate 7.0 % 8.0 % 7.0 % Total 100.0 % 100.0 % 100.0 % (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, 2015 (In thousands) Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 300 $ 300 $ - $ - Equity Securities: U.S. Large Cap 98,949 - 98,949 - U.S. Mid Cap 22,446 - 22,446 - U.S. Small Cap 27,561 - 27,561 - International Blend 55,948 - 55,948 - Fixed Income Securities: Short-Term Fund 3,388 - 3,388 - High Yield Bond 16,225 - 16,225 - Long Duration Bond 73,112 - 73,112 - Real Estate 27,231 - - 27,231 Insurance Continuance Fund 1,518 - - 1,518 Fixed Rate Fund 4,208 - - 4,208 Total $ 330,886 $ 300 $ 297,629 $ 32,957 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 |
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, 2014 $ 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 Actual return on plan assets: Relating to assets still held at the reporting date 2,749 46 103 Purchases, sales, and settlements 1,002 (46) (341) Transfers in and/or out of Level 3 - - - Balance as of December 31, 2015 $ 27,231 $ 1,518 $ 4,208 |
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 2016 $ 12,489 $ 3,119 $ (227) $ 2,892 2017 13,320 3,481 (249) 3,232 2018 14,506 3,947 (273) 3,674 2019 15,456 4,453 (296) 4,157 2020 16,381 4,910 (325) 4,585 2021 - 2025 95,167 30,364 (2,121) 28,243 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) - Performance Units [Member] | 12 Months Ended |
Dec. 31, 2015 | |
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 accor dance 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 d ate, 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, 2015 , as required by applicable a ccounting 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 co st is subject to variability. Units are subject to a five - year graded vesting schedule. Grant Date MGE Energy Units Granted February 19, 2016 19,055 February 20, 2015 18,948 February 21, 2014 21,991 February 15, 2013 22,884 February 17, 2012 25,040 |
Director Incentive Agreement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Unit Graded Vesting Schedule | Under the Director Incentive 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 o f the set performance period. The units are subject to a thre e- year graded vesting schedule. This plan is similar to MGE Energy’s Performance Unit Plan for eligi ble employees described above. Grant Date MGE Energy Units Granted January 15, 2016 3,773 January 16, 2015 3,794 January 17, 2014 4,683 |
Derivative and Hedging Instru53
Derivative and Hedging Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gross Notional Volume of Open Derivatives | The gross notional volume of open derivatives is as follows: December 31, 2015 December 31, 2014 Commodity derivative contracts 355,580 MWh 448,000 MWh Commodity derivative contracts 5,037,500 Dth 4,405,000 Dth FTRs 2,000 MW 1,854 MW |
Fair Value of Derivative Instruments on the Balance Sheet | The following table summarizes the fair value of the derivative instruments on the consolidated balan ce sheet s . 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 statem ent 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, 2015 and 2014 , MGE Energy and MGE had the right to reclaim collateral (a receivabl e) of $ 1.0 million and $ 2.2 million, respectively . Asset Derivatives Liability Derivatives (In thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value December 31, 2015 Commodity derivative contracts Other current assets $ 146 Derivative liability (current) $ 1,266 Commodity derivative contracts Other deferred charges 144 Derivative liability (long-term) 70 FTRs Other current assets 234 Derivative liability (current) - PPA N/A N/A Derivative liability (current) 8,340 PPA N/A N/A Derivative liability (long-term) 44,930 December 31, 2014 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) - PPA N/A N/A Derivative liability (current) 6,870 PPA N/A N/A Derivative liability (long-term) 46,560 |
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 consolidated balance sheets . Offsetting of Derivative Assets Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets (In thousands) December 31, 2015 Commodity derivative contracts $ 290 $ (290) $ - $ - FTRs 234 - - 234 December 31, 2014 Commodity derivative contracts $ 223 $ (223) $ - $ - FTRs 642 - - 642 |
Offsetting Liabilities | Offsetting of Derivative Liabilities Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets (In thousands) December 31, 2015 Commodity derivative contracts $ 1,336 $ (290) $ (1,038) $ 8 PPA 53,270 - - 53,270 December 31, 2014 Commodity derivative contracts $ 2,433 $ (223) $ (2,179) $ 31 PPA 53,430 - - 53,430 |
Derivative Gains and Losses in Balance Sheet | The following tables summarize the unrealized and realized gains (losses) related to the derivative instruments on the consolidated balance sheets at December 31, 2015 and 2014 , and the consolidated income statements for the years ended December 31, 2015 and 2014 . 2015 2014 Current and Long-Term Regulatory Asset Other Current Assets Current and Long-Term Regulatory Asset Other Current Assets (In thousands) Balance at January 1, $ 54,998 $ 1,001 $ 63,893 $ 411 Unrealized loss (gain) 8,586 - (14,518) - Realized (loss) gain reclassified to a deferred account (2,953) 2,953 595 (595) Realized (loss) gain reclassified to income statement (6,549) (2,746) 5,028 1,185 Balance at December 31, $ 54,082 $ 1,208 $ 54,998 $ 1,001 |
Derivative Gains and Losses in Income Statement | Realized Losses (Gains) 2015 2014 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 $ 2,236 $ 2,548 $ (5,515) $ (1,103) FTRs (309) - (1,110) - PPA 4,820 - 1,515 - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | As of December 31, 2015 , the future minimum commitments related to these pur chase contracts were as follows: (In thousands) 2016 2017 2018 2019 2020 Coal (a) $ 38,028 $ 13,115 $ 12,736 $ 3,850 $ - Natural gas Transportation and storage (b) 18,500 18,551 18,482 17,562 14,254 Supply (c) 10,611 - - - - Purchase power (d) 47,901 48,398 46,855 35,023 33,883 Other 29,947 723 324 143 - $ 144,987 $ 80,787 $ 78,397 $ 56,578 $ 48,137 (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 is 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-bas ed 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 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 I owa. 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 r atable share of energy produced by the project has been estimated and is included in the above numbers. |
Operating Leases, Future Minimum Rental Payments | Future minimum rental payments at December 31, 2015 , under agreements classified as operating leases with noncancelable terms in excess of one year are as follows: (In thousands) 2016 2017 2018 2019 2020 Thereafter Minimum lease payments $ 1,615 1,282 $ 674 $ 310 $ 277 $ 8,283 |
Other Commitments | MGE has several other commitments related to various projects. Payments for these commitments are expected to be as follows: (In thousands) 2016 2017 2018 2019 2020 Thereafter Other commitments $ 612 $ 523 $ 509 $ 511 $ 497 $ 6,086 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Change in Asset Retirement Obligations | The following table shows a rollforward of the AROs from January 1, 2014 , to December 31, 2015 . Amounts include conditional AROs. (In thousands) 2015 2014 Balance at January 1, $ 19,744 $ 19,359 Liabilities incurred (a) 2,380 68 Accretion expense 1,131 1,077 Liabilities settled (124) (343) Revisions in estimated cash flows (a) 1,229 (417) Balance at December 31, $ 24,360 $ 19,744 (a) In the second quarter of 2015 , MGE recorded an obligation of $2.3 million for the fair value of its legal liability for AROs associated with the effect of the final Coal Combustion Residual Rule at Columbia. An additional $1.3 million was recorded in the fourth quarter, associated with this ARO, based on revised estimates. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Operating revenues $ 412,528 $ 143,737 $ 7,763 $ - $ - $ - $ 564,028 Interdepartmental revenues 513 11,780 39,435 - - (51,728) - Total operating revenues 413,041 155,517 47,198 - - (51,728) 564,028 Depreciation and amortization (29,945) (6,758) (7,475) - (47) - (44,225) Other operating expenses (318,001) (128,241) (158) (19) (857) 51,728 (395,548) Operating income (loss) 65,095 20,518 39,565 (19) (904) - 124,255 Other (deductions) income, net 400 (33) - 7,728 518 - 8,613 Interest (expense) income, net (11,187) (3,203) (5,993) - 221 - (20,162) Income (loss) before taxes 54,308 17,282 33,572 7,709 (165) - 112,706 Income tax (provision) benefit (17,915) (6,915) (13,474) (3,102) 43 - (41,363) Net income (loss) $ 36,393 $ 10,367 $ 20,098 $ 4,607 $ (122) $ - $ 71,343 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 (In thousands) MGE Electric Gas Non-Regulated Energy Transmission Investment Consolidation/ Elimination Entries Consolidated Total Year Ended December 31, 2015 Operating revenues $ 412,550 $ 143,752 $ 7,763 $ - $ - $ 564,065 Interdepartmental revenues 491 11,765 39,435 - (51,691) - Total operating revenues 413,041 155,517 47,198 - (51,691) 564,065 Depreciation and amortization (29,945) (6,758) (7,475) - - (44,178) Other operating expenses* (335,803) (135,124) (13,632) (19) 51,691 (432,887) Operating income (loss)* 47,293 13,635 26,091 (19) - 87,000 Other (deductions) income, net* 287 (65) - 4,626 - 4,848 Interest expense, net (11,187) (3,203) (5,993) - - (20,383) Net income 36,393 10,367 20,098 4,607 - 71,465 Less: Net income attributable to noncontrolling interest, net of tax - - - - (26,097) (26,097) Net income attributable to MGE $ 36,393 $ 10,367 $ 20,098 $ 4,607 $ (26,097) $ 45,368 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 *Amounts are shown net of the related tax expense, consistent with the presentation on the MGE Consolidated Statements of Income. 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 Assets not Allocated Non-regulated Energy Transmission Investment All Others Consolidation/ Elimination Entries Total Assets: December 31, 2015 $ 976,271 $ 299,792 $ 49,753 $ 278,735 $ 69,470 $ 434,868 $ (378,216) $ 1,730,673 December 31, 2014 (a) 948,005 307,582 41,124 281,514 67,697 438,898 (390,636) 1,694,184 December 31, 2013 899,257 265,694 19,853 288,116 64,504 431,436 (389,800) 1,579,060 Capital Expenditures: Year ended Dec. 31, 2015 $ 49,370 $ 18,787 $ - $ 3,873 $ - $ - $ - $ 72,030 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 Utility Consolidated (In thousands) MGE Electric Gas Assets not Allocated Non-regulated Energy Transmission Investment Consolidation/ Elimination Entries Total Assets: December 31, 2015 $ 976,271 $ 299,792 $ 49,753 $ 278,685 $ 69,470 $ (187) $ 1,673,784 December 31, 2014 (a) 948,005 307,582 41,124 281,464 67,697 (6,521) 1,639,351 December 31, 2013 899,257 265,694 19,853 288,066 64,504 (6,731) 1,530,643 Capital Expenditures: Year ended Dec. 31, 2015 $ 49,370 $ 18,787 $ - $ 3,873 $ - $ - $ 72,030 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 (a) Reflects retrospective application of new accounting pronouncement. See Footnote 12 for additional information. |
Quarterly Summary of Operatio57
Quarterly Summary of Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary of Operations | (In thousands, except per share amounts) Quarters Ended 2015 March 31 June 30 September 30 December 31 Operating revenues: Regulated electric revenues $ 98,240 99,481 121,453 $ 93,354 Regulated gas revenues 69,928 20,669 17,431 35,709 Nonregulated revenues 1,966 1,976 1,911 1,910 Total Operating Revenues 170,134 122,126 140,795 130,973 Operating expenses 138,283 98,077 94,618 108,795 Operating income 31,851 24,049 46,177 22,178 Interest and other income, net (2,986) (2,562) (2,472) (3,529) Income tax provision (10,587) (8,008) (15,351) (7,417) Earnings on common stock $ 18,278 $ 13,479 $ 28,354 $ 11,232 Earnings per common share $ 0.53 $ 0.39 $ 0.82 $ 0.32 Dividends per share $ 0.283 $ 0.283 $ 0.295 $ 0.295 2014 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 $ 0.80 $ 0.41 $ 0.67 $ 0.44 Dividends per share $ 0.272 $ 0.272 $ 0.283 $ 0.283 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 Accoun58
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivable - Margin Account [Abstract] | |||
Receivable, margin account balance, net of collateral posted against derivative positions | $ 2,300,000 | $ 2,200,000 | |
Derivative liability, collateral offset | $ 1,000,000 | 2,200,000 | |
Trade Receivables, Allowance for Doubtful Accounts, and Concentration Risk | |||
Late payment charge on upaid receivables | 1.00% | ||
Inventories | |||
Renewable energy credit allowance included in inventory | $ 300,000 | 800,000 | |
Transfers and Servicing | |||
Cumulative effect of new accounting guidance, retained earnings | (142,000) | ||
Purchased Gas Adjustment Clause | |||
Purchased gas adjustment, over (under) collected | 800,000 | 1,200,000 | |
Capitalized Software Costs | |||
Capitalized software | 12,000,000 | 8,400,000 | |
Capitalized software amortization | 2,200,000 | 1,600,000 | $ 1,500,000 |
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 | $ 14,700,000 | $ 14,600,000 | $ 13,800,000 |
Chattel Paper Agreements [Member] | |||
Transfers and Servicing | |||
Repurchase agreement, maximum exposure | 10,000,000 | ||
Repurchase-to-Maturity Transactions, loans due | 3,700,000 | ||
2016 [Member] | Chattel Paper Agreements [Member] | |||
Transfers and Servicing | |||
Repurchase-to-Maturity Transactions, loans due | 706,000 | ||
2017 [Member] | Chattel Paper Agreements [Member] | |||
Transfers and Servicing | |||
Repurchase-to-Maturity Transactions, loans due | 476,000 | ||
2018 [Member] | Chattel Paper Agreements [Member] | |||
Transfers and Servicing | |||
Repurchase-to-Maturity Transactions, loans due | 508,000 | ||
2019 [Member] | Chattel Paper Agreements [Member] | |||
Transfers and Servicing | |||
Repurchase-to-Maturity Transactions, loans due | 477,000 | ||
2020 [Member] | Chattel Paper Agreements [Member] | |||
Transfers and Servicing | |||
Repurchase-to-Maturity Transactions, loans due | 445,000 | ||
Thereafter [Member] | Chattel Paper Agreements [Member] | |||
Transfers and Servicing | |||
Repurchase-to-Maturity Transactions, loans due | $ 1,059,000 | ||
Minimum [Member] | Chattel Paper Agreements [Member] | |||
Transfers and Servicing | |||
MGE guarantee to the financial institution, term | 1 year | ||
Minimum [Member] | Capitalized Software [Member] | |||
Capitalized Software Costs | |||
Property, plant, and equipment, useful life | 5 years | ||
Maximum [Member] | Chattel Paper Agreements [Member] | |||
Transfers and Servicing | |||
MGE guarantee to the financial institution, term | 10 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 | 7.93% | 8.21% | 8.21% |
Columbia Environmental Project, SCR [Member] | PSCW [Member] | |||
Allowance for Funds Used During Construction | |||
Authorized AFUDC rate | 100.00% | 100.00% | 50.00% |
Electric [Member] | |||
Property, Plant, and Equiptment | |||
Composite straight-line depreciation rates | 2.60% | 2.60% | 2.70% |
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% | 2.40% | 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) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)MW | Dec. 31, 2014USD ($)MW | ||
Significant Balance Sheet Accounts Related to Interests in Variable Interest Entities | |||
Property, plant, and equipment, net | $ 1,217,094 | $ 1,189,077 | |
Construction work in progress | 26,351 | 19,029 | |
Accrued interest and taxes | $ 5,067 | $ 5,086 | |
Other Variable Interest Entities | |||
Other variable interest entities, purchase power agreement, plant capacity (in MW) | MW | 61 | 61 | |
MGE Power Elm Road [Member] | |||
Significant Balance Sheet Accounts Related to Interests in Variable Interest Entities | |||
Property, plant, and equipment, net | $ 177,904 | $ 179,620 | |
Construction work in progress | 2,400 | 1,976 | |
Affiliate receivables, current and noncurrent | 0 | 1,742 | |
Deferred income taxes | 40,865 | 40,044 | |
Long-term debt, gross, current and noncurrent | 65,305 | 67,972 | |
Noncontrolling interest | [1] | 79,113 | 72,537 |
Total carrying costs | 62,500 | ||
Total capitalized interest | 17,000 | ||
Total capitalized cost of equity | $ 45,500 | ||
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 | $ 84,403 | 86,763 | |
Affiliate receivables, current and noncurrent | 5,295 | 5,862 | |
Deferred income taxes | 19,612 | 23,813 | |
Long-term debt, gross, current and noncurrent | 46,703 | 48,218 | |
Noncontrolling interest | [1] | 37,603 | $ 30,755 |
Carrying costs recovered | $ 12,100 | ||
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 su bsidiaries 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 consolidated financial statements as noncontrolling interest. |
Property, Plant, and Equipmen60
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
In-service utility plant, net | $ 1,217,094 | $ 1,189,077 | |
Construction work in progress | 26,351 | 19,029 | |
Total property, plant, and equipment | 1,243,445 | 1,208,106 | |
First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||
Plant related debt items | |||
Long-term debt, gross | [1] | 1,200 | 1,200 |
Regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
In-service utility plant, gross | 1,531,864 | 1,480,928 | |
Less: Accumulated depreciation and amortization | 578,410 | 559,615 | |
In-service utility plant, net | 953,454 | 921,313 | |
Construction work in progress | 23,837 | 16,988 | |
Electric [Member] | Regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
In-service utility plant, gross | 1,147,701 | 1,110,953 | |
Gas [Member] | Regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
In-service utility plant, gross | 384,163 | 369,975 | |
Non Regulated Energy [Member] | Non-regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
In-service utility plant, gross | 315,589 | 313,152 | |
Less: Accumulated depreciation and amortization | 51,949 | 45,388 | |
In-service utility plant, net | 263,640 | 267,764 | |
Construction work in progress | 2,514 | 2,041 | |
MGE [Member] | |||
Property, Plant and Equipment [Line Items] | |||
In-service utility plant, net | 1,216,415 | 1,188,351 | |
Construction work in progress | 26,351 | 19,029 | |
Total property, plant, and equipment | 1,242,766 | 1,207,380 | |
MGE [Member] | First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||
Plant related debt items | |||
Long-term debt, gross | [1] | 1,200 | 1,200 |
MGE [Member] | Regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
In-service utility plant, gross | 1,531,893 | 1,480,957 | |
Less: Accumulated depreciation and amortization | 578,410 | 559,615 | |
In-service utility plant, net | 953,483 | 921,342 | |
Construction work in progress | 23,837 | 16,988 | |
MGE [Member] | Electric [Member] | Regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
In-service utility plant, gross | 1,147,718 | 1,110,970 | |
MGE [Member] | Gas [Member] | Regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
In-service utility plant, gross | 384,175 | 369,987 | |
MGE [Member] | Non Regulated Energy [Member] | Non-regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
In-service utility plant, gross | 314,750 | 312,314 | |
Less: Accumulated depreciation and amortization | 51,818 | 45,305 | |
In-service utility plant, net | 262,932 | 267,009 | |
Construction work in progress | $ 2,514 | $ 2,041 | |
[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, 2015 , approximately $ 353.0 million was available for the payment of dividends under this covenant. |
Investments (Details-1)
Investments (Details-1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Available-for-sale securities: | |||
Cost basis | $ 2,225 | $ 1,964 | |
Gross unrealized gains | 599 | 765 | |
Gross unrealized losses | (2) | 0 | |
Fair Value | 2,822 | 2,729 | |
Equity method investments: | |||
Equity method investments | 70,650 | 68,872 | |
Other Investments | 159 | 159 | |
Total investments | 73,631 | 71,760 | |
Results of Investment Liquidation [Abstract] | |||
Proceeds from sale of investments | 19 | 38 | $ 39 |
Gain (loss) on sale of investments | 10 | 21 | 2 |
ATC [Member] | |||
Equity method investments: | |||
Equity method investments | 69,466 | 67,673 | |
Other Equity Method Investments [Member] | |||
Equity method investments: | |||
Equity method investments | 1,184 | 1,199 | |
MGE [Member] | |||
Available-for-sale securities: | |||
Cost basis | 480 | 489 | |
Gross unrealized gains | 40 | 240 | |
Gross unrealized losses | (2) | 0 | |
Fair Value | 518 | 729 | |
Equity method investments: | |||
Equity method investments | 69,466 | 67,673 | |
Other Investments | 0 | 0 | |
Total investments | 69,984 | 68,402 | |
Results of Investment Liquidation [Abstract] | |||
Proceeds from sale of investments | 19 | 0 | 16 |
Gain (loss) on sale of investments | 10 | 0 | $ (3) |
MGE [Member] | ATC [Member] | |||
Equity method investments: | |||
Equity method investments | 69,466 | 67,673 | |
MGE [Member] | Other Equity Method Investments [Member] | |||
Equity method investments: | |||
Equity method investments | $ 0 | $ 0 |
Investments (Details-2)
Investments (Details-2) - USD ($) $ in Thousands | Jan. 29, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Equity Method Investments [Line Items] | ||||
Equity in earnings in ATC | $ 7,728 | $ 9,150 | $ 9,434 | |
Dividend income from ATC | 6,645 | 7,740 | 7,404 | |
Contributions to investments | 1,053 | 2,185 | 1,660 | |
MGE Transco [Member] | ATC [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity in earnings in ATC | 7,728 | 9,150 | 9,434 | |
Dividend income from ATC | 6,645 | 7,740 | 7,404 | |
Contributions to investments | $ 710 | $ 1,775 | $ 1,420 | |
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 | $ 500 |
Investments (Details-3)
Investments (Details-3) - ATC [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity method investment summarized income statement [Abstract] | |||
Operating revenues | $ 615,836 | $ 635,033 | $ 626,336 |
Operating expenses | (319,321) | (307,451) | (295,069) |
Other income, net | 1,176 | 117 | 831 |
Interest expense, net | (97,250) | (88,970) | (84,484) |
Earnings before members' income taxes | 200,441 | 238,729 | 247,614 |
Equity method investment balance sheet assets [Abstract] | |||
Current assets | 80,520 | 66,410 | 80,715 |
Noncurrent assets | 3,957,576 | 3,728,675 | 3,509,517 |
Total assets | 4,038,096 | 3,795,085 | 3,590,232 |
Equity method investment balance sheet liabilities [Abstract] | |||
Current liabilities | 330,248 | 313,065 | 381,467 |
Long-term debt | 1,800,029 | 1,701,000 | 1,550,000 |
Other noncurrent liabilities | 244,991 | 163,818 | 126,167 |
Members' equity | 1,662,828 | 1,617,202 | 1,532,598 |
Total members' equity and liabilities | $ 4,038,096 | $ 3,795,085 | $ 3,590,232 |
Joint Plant Ownership (Details)
Joint Plant Ownership (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)operatingunitMW | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Columbia Units [Member] | |||
Jointly Owned Plants, Net Plant Ownership [Abstract] | |||
Plant | $ 273,762 | $ 268,597 | |
Accumulated depreciation | (84,864) | (80,645) | |
Property, plant, and equipment, net | 188,898 | 187,952 | |
Construction work in progress | 17,110 | 6,941 | |
Total property, plant, and equipment | $ 206,008 | 194,893 | |
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) | MW | 242 | ||
Jointly owned utility plant, ownership interest | 22.00% | ||
Jointly owned utility plant, fuel, operating, and maintenance expense | $ 38,200 | 28,100 | $ 37,500 |
Elm Road Units [Member] | MGE [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Jointly owned utility plant, fuel, operating, and maintenance expense | $ 20,900 | 20,300 | 13,400 |
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) | MW | 106 | ||
Jointly owned utility plant, number of operating units | operatingunit | 2 | ||
Jointly Owned Plants, Net Plant Ownership [Abstract] | |||
Plant | $ 202,326 | 199,582 | |
Accumulated depreciation | (24,422) | (19,962) | |
Property, plant, and equipment, net | 177,904 | 179,620 | |
Construction work in progress | 2,400 | 1,976 | |
Total property, plant, and equipment | $ 180,304 | 181,596 | |
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) | 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) | 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 | $ 3,700 | 2,800 | $ 4,900 |
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 | $ 111,141 | 111,453 | |
Accumulated depreciation | (26,738) | (24,691) | |
Property, plant, and equipment, net | $ 84,403 | $ 86,762 |
Regulatory Assets and Liabili65
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Regulatory Assets [Line Items] | |||
Regulatory Assets | $ 157,737 | $ 165,183 | |
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 30,300 | 22,715 | |
Debt make-whole premium | 0 | 0 | $ 6,757 |
Conservation Costs Regulatory Liability [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 231 | 680 | |
Deferred Fuel Savings [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 9,515 | 755 | |
Elm Road Regulatory Liability [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 643 | 1,497 | |
Income Taxes [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 1,559 | 1,794 | |
Non-ARO Removal Cost [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 17,137 | 16,129 | |
Renewable Energy Credits [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 327 | 753 | |
Other Regulatory Liability [Member] | |||
Regulatory Liabilities [Line Items] | |||
Regulatory Liabilities | 888 | 1,107 | |
Asset Retirement Obligation [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 4,849 | 4,532 | |
Debt Related Costs [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 10,672 | 11,133 | |
Derivatives [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 54,083 | 54,998 | |
Environmental Costs [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 368 | 700 | |
Tax Recovery AFUDC Equity [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 8,950 | 8,821 | |
Unfunded Pension and Other Postretirement Plans Costs [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | 78,181 | 84,551 | |
Other Regulatory Asset [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Assets | $ 634 | $ 448 |
Common Equity (Details)
Common Equity (Details) $ / shares in Units, $ in Thousands | Dec. 20, 2013 | Dec. 31, 2015$ / shares | Sep. 30, 2015$ / shares | Jun. 30, 2015$ / shares | Mar. 31, 2015$ / shares | Dec. 31, 2014$ / shares | Sep. 30, 2014$ / shares | Jun. 30, 2014$ / shares | Mar. 31, 2014$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares |
Class of Stock [Line Items] | ||||||||||||
Stock split declared December 20, 2013, ratio (3:2) | 1.5 | |||||||||||
Common stock dividends declared | $ 40,043 | $ 38,429 | $ 37,107 | |||||||||
Common stock dividends declared (in dollars per share) | $ / shares | $ 0.295 | $ 0.295 | $ 0.283 | $ 0.283 | $ 0.283 | $ 0.283 | $ 0.272 | $ 0.272 | $ 1.16 | $ 1.11 | $ 1.07 | |
MGE [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Cash dividends paid to parent by MGE | $ 30,000 | $ 26,500 | $ 25,000 |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
MGE [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest on balance sheet | $ 140,308 | $ 125,689 | ||
Net income attributable to noncontrolling interest, net of tax | 26,097 | 26,310 | $ 27,438 | |
MGE Transco [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest on balance sheet | [1] | 23,592 | 22,397 | |
Net income attributable to noncontrolling interest, net of tax | [1] | $ 2,172 | 2,484 | 2,408 |
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 | [2] | $ 37,603 | 30,755 | |
Net income attributable to noncontrolling interest, net of tax | [2] | $ 7,348 | 7,666 | 7,657 |
MGE Power Elm Road [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage by parent | 100.00% | |||
Noncontrolling interest on balance sheet | [2] | $ 79,113 | 72,537 | |
Net income attributable to noncontrolling interest, net of tax | [2] | $ 16,577 | $ 16,160 | $ 17,373 |
[1] | At December 31, 2015 , MGE is the majority owner, and MGE Energy is the minority owner, of MGE Transco. MGE Energy's proportionat e share of the equity and net income of MGE Transco is classified within the MGE consolidated financial statements as noncontrolling interest . In mid-2016, MGE is no longer expected to be the majority owner of MGE Transco. The change will have no effect on MGE Energy' s consolidated financial statements; however, MGE Energy ' s proportionate share of the equity and net income of MGE Transco will be deconsolidated from MGE’s financial statements. No gain or loss is expected to be recognized on the date MGE ceases to have a controlling financial interest . | |||
[2] | MGE Power Elm Road and MGE Power West Campus are not su bsidiaries 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 consolidated financial statements as noncontrolling interest. |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||
Long-term debt due within one year | $ (4,266) | $ (4,182) | |
Unamortized discount | (228) | (252) | |
Total Long-Term Debt | 391,014 | 395,256 | |
Long-Term Debt Maturities [Abstract] | |||
Long term debt maturities in 2016 | 4,266 | ||
Long term debt maturities in 2017 | 34,358 | ||
Long term debt maturities in 2018 | 24,452 | ||
Long term debt maturities in 2019 | 4,553 | ||
Long term debt maturities in 2020 | 19,659 | ||
Long term debt maturities in future years | 308,220 | ||
Total | 395,508 | ||
First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | $ 1,200 | $ 1,200 |
Interest rate | [1] | 7.70% | 7.70% |
Debt covenant, allowable amount available for payment of dividends | $ 353,000 | ||
Tax Exempt Debt [Member] | 3.45%, 2027 Series, Industrial Development Revenue Bonds | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 19,300 | $ 19,300 | |
Interest rate | 3.45% | 3.45% | |
Medium-Term Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 100,000 | $ 100,000 |
Medium-Term Notes [Member] | 5.25%, due 2017 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 30,000 | $ 30,000 |
Interest rate | [2] | 5.25% | 5.25% |
Medium-Term Notes [Member] | 6.12%, due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 20,000 | $ 20,000 |
Interest rate | [2] | 6.12% | 6.12% |
Medium-Term Notes [Member] | 7.12%, due 2032 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 25,000 | $ 25,000 |
Interest rate | [2] | 7.12% | 7.12% |
Medium-Term Notes [Member] | 6.247%, due 2037 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 25,000 | $ 25,000 |
Interest rate | [2] | 6.247% | 6.247% |
Other Long-Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3] | $ 275,008 | $ 279,190 |
Other Long-Term Debt [Member] | 5.59%, due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 20,000 | $ 20,000 |
Interest rate | [3],[4] | 5.59% | 5.59% |
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% | ||
Other Long-Term Debt [Member] | 5.59%, due 2018 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
Other Long-Term Debt [Member] | 3.38%, due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 15,000 | $ 15,000 |
Interest rate | [3],[4] | 3.38% | 3.38% |
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% | ||
Other Long-Term Debt [Member] | 3.38%, due 2020 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
Other Long-Term Debt [Member] | 3.09%, due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 30,000 | $ 30,000 |
Interest rate | [3],[4] | 3.09% | 3.09% |
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% | ||
Other Long-Term Debt [Member] | 3.09%, due 2023 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
Other Long-Term Debt [Member] | 3.29%, due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 15,000 | $ 15,000 |
Interest rate | [3],[4] | 3.29% | 3.29% |
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% | ||
Other Long-Term Debt [Member] | 3.29%, due 2026 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
Other Long-Term Debt [Member] | 5.68%, due 2033 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[5] | $ 28,063 | $ 28,954 |
Interest rate | [3],[5] | 5.68% | 5.68% |
Other Long-Term Debt [Member] | 5.19%, due 2033 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[5] | $ 18,640 | $ 19,264 |
Interest rate | [3],[5] | 5.19% | 5.19% |
Other Long-Term Debt [Member] | 5.26%, due 2040 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 15,000 | $ 15,000 |
Interest rate | [3],[4] | 5.26% | 5.26% |
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% | ||
Other Long-Term Debt [Member] | 5.26%, due 2040 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
Other Long-Term Debt [Member] | 5.04%, due 2040 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[6] | $ 40,138 | $ 41,805 |
Interest rate | [3],[6] | 5.04% | 5.04% |
Other Long-Term Debt [Member] | 4.74%, due 2041 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[6] | $ 25,167 | $ 26,167 |
Interest rate | [3],[6] | 4.74% | 4.74% |
Other Long-Term Debt [Member] | 4.38%, due 2042 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 28,000 | $ 28,000 |
Interest rate | [3],[4] | 4.38% | 4.38% |
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% | ||
Other Long-Term Debt [Member] | 4.38%, due 2042 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
Other Long-Term Debt [Member] | 4.42%, due 2043 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 20,000 | $ 20,000 |
Interest rate | [3],[4] | 4.42% | 4.42% |
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% | ||
Other Long-Term Debt [Member] | 4.42%, due 2043 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
Other Long-Term Debt [Member] | 4.47%, due 2048 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 20,000 | $ 20,000 |
Interest rate | [3],[4] | 4.47% | 4.47% |
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% | ||
Other Long-Term Debt [Member] | 4.47%, due 2048 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
MGE [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt due within one year | $ (4,266) | $ (4,182) | |
Unamortized discount | (228) | (252) | |
Total Long-Term Debt | 391,014 | 395,256 | |
Long-Term Debt Maturities [Abstract] | |||
Long term debt maturities in 2016 | [7] | 4,266 | |
Long term debt maturities in 2017 | [7] | 34,358 | |
Long term debt maturities in 2018 | [7] | 24,452 | |
Long term debt maturities in 2019 | [7] | 4,553 | |
Long term debt maturities in 2020 | [7] | 19,659 | |
Long term debt maturities in future years | [7] | 308,220 | |
Total | [7] | 395,508 | |
MGE [Member] | First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | $ 1,200 | $ 1,200 |
Interest rate | [1] | 7.70% | 7.70% |
Debt covenant, allowable amount available for payment of dividends | $ 353,000 | ||
MGE [Member] | Tax Exempt Debt [Member] | 3.45%, 2027 Series, Industrial Development Revenue Bonds | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 19,300 | $ 19,300 | |
Interest rate | 3.45% | 3.45% | |
MGE [Member] | Medium-Term Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 100,000 | $ 100,000 |
MGE [Member] | Medium-Term Notes [Member] | 5.25%, due 2017 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 30,000 | $ 30,000 |
Interest rate | [2] | 5.25% | 5.25% |
MGE [Member] | Medium-Term Notes [Member] | 6.12%, due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 20,000 | $ 20,000 |
Interest rate | [2] | 6.12% | 6.12% |
MGE [Member] | Medium-Term Notes [Member] | 7.12%, due 2032 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 25,000 | $ 25,000 |
Interest rate | [2] | 7.12% | 7.12% |
MGE [Member] | Medium-Term Notes [Member] | 6.247%, due 2037 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 25,000 | $ 25,000 |
Interest rate | [2] | 6.247% | 6.247% |
MGE [Member] | Other Long-Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3] | $ 275,008 | $ 279,190 |
MGE [Member] | Other Long-Term Debt [Member] | 5.59%, due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 20,000 | $ 20,000 |
Interest rate | [3],[4] | 5.59% | 5.59% |
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% | ||
MGE [Member] | Other Long-Term Debt [Member] | 5.59%, due 2018 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
MGE [Member] | Other Long-Term Debt [Member] | 3.38%, due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 15,000 | $ 15,000 |
Interest rate | [3],[4] | 3.38% | 3.38% |
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% | ||
MGE [Member] | Other Long-Term Debt [Member] | 3.38%, due 2020 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
MGE [Member] | Other Long-Term Debt [Member] | 3.09%, due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 30,000 | $ 30,000 |
Interest rate | [3],[4] | 3.09% | 3.09% |
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% | ||
MGE [Member] | Other Long-Term Debt [Member] | 3.09%, due 2023 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
MGE [Member] | Other Long-Term Debt [Member] | 3.29%, due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 15,000 | $ 15,000 |
Interest rate | [3],[4] | 3.29% | 3.29% |
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% | ||
MGE [Member] | Other Long-Term Debt [Member] | 3.29%, due 2026 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
MGE [Member] | Other Long-Term Debt [Member] | 5.68%, due 2033 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[5] | $ 28,063 | $ 28,954 |
Interest rate | [3],[5] | 5.68% | 5.68% |
MGE [Member] | Other Long-Term Debt [Member] | 5.19%, due 2033 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[5] | $ 18,640 | $ 19,264 |
Interest rate | [3],[5] | 5.19% | 5.19% |
MGE [Member] | Other Long-Term Debt [Member] | 5.26%, due 2040 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 15,000 | $ 15,000 |
Interest rate | [3],[4] | 5.26% | 5.26% |
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% | ||
MGE [Member] | Other Long-Term Debt [Member] | 5.26%, due 2040 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
MGE [Member] | Other Long-Term Debt [Member] | 5.04%, due 2040 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[6] | $ 40,138 | $ 41,805 |
Interest rate | [3],[6] | 5.04% | 5.04% |
MGE [Member] | Other Long-Term Debt [Member] | 4.74%, due 2041 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[6] | $ 25,167 | $ 26,167 |
Interest rate | [3],[6] | 4.74% | 4.74% |
MGE [Member] | Other Long-Term Debt [Member] | 4.38%, due 2042 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 28,000 | $ 28,000 |
Interest rate | [3],[4] | 4.38% | 4.38% |
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% | ||
MGE [Member] | Other Long-Term Debt [Member] | 4.38%, due 2042 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
MGE [Member] | Other Long-Term Debt [Member] | 4.42%, due 2043 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 20,000 | $ 20,000 |
Interest rate | [3],[4] | 4.42% | 4.42% |
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% | ||
MGE [Member] | Other Long-Term Debt [Member] | 4.42%, due 2043 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
MGE [Member] | Other Long-Term Debt [Member] | 4.47%, due 2048 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3],[4] | $ 20,000 | $ 20,000 |
Interest rate | [3],[4] | 4.47% | 4.47% |
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% | ||
MGE [Member] | Other Long-Term Debt [Member] | 4.47%, due 2048 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
Priority debt to assets ratio | 0.2 | ||
MGE Power Elm Road [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 65,305 | $ 67,972 | |
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 | $ 46,703 | $ 48,218 | |
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, 2015 , approximately $ 353.0 million was available for the payment of dividends under this covenant. | ||
[2] | T he indenture under which MGE's Medium-T erm 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, MGE ' s Indenture dated as of September 1, 1998, which governs MGE ' s 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 v oting stock of MGEÂ 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 subsidiarie s. As of December 31, 2015 , MGE was 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 tha n 0.65 to 1.00 . The notes are secured by a collateral assignment of lease payments th at 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, 2015 , MGE Power West Campus was 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 lease s . As of December 31, 2015 , MGE Power Elm Road was in compliance with the covenant requirements. | ||
[7] | Includes $ 46.7 million for MGE Power West Campus and $ 65.3 million for MGE Power Elm Road, all of which are consolidated wi th MGE's debt (see Footnote 2 for further information) . |
Notes Payable to Banks, Comme69
Notes Payable to Banks, Commercial Paper, and Lines of Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Short-term Debt [Line Items] | ||||
Short-term debt outstanding | [1] | $ 0 | $ 7,000 | $ 0 |
Weighted-average interest rate | [1] | 0.00% | 0.20% | 0.00% |
Maximum short-term borrowings | [1] | $ 17,500 | $ 9,000 | $ 32,000 |
Average short-term borrowings | [1] | $ 1,511 | $ 182 | $ 6,992 |
Weighted-average interest rate during the year | [1] | 0.17% | 0.24% | 0.18% |
Line of Credit [Member] | ||||
Short-term Debt [Line Items] | ||||
Available lines of credit | [1] | $ 150,000 | $ 150,000 | $ 150,000 |
MGE [Member] | ||||
Short-term Debt [Line Items] | ||||
Short-term debt outstanding | $ 0 | $ 7,000 | $ 0 | |
Weighted-average interest rate | 0.00% | 0.20% | 0.00% | |
Maximum short-term borrowings | $ 17,500 | $ 9,000 | $ 32,000 | |
Average short-term borrowings | $ 1,511 | $ 182 | $ 6,992 | |
Weighted-average interest rate during the year | 0.17% | 0.24% | 0.18% | |
MGE [Member] | Line of Credit [Member] | ||||
Short-term Debt [Line Items] | ||||
Available lines of credit | $ 100,000 | $ 100,000 | $ 100,000 | |
MGE [Member] | Line of Credit [Member] | MGE unsecured committed revolving lines of credit totaling $100 million | ||||
Short-term Debt [Line Items] | ||||
Available lines of credit | 100,000 | |||
Line of credit, borrowings outstanding | $ 0 | |||
Debt covenant, required parent company ownership of MGE | 100.00% | |||
MGE [Member] | Line of Credit [Member] | MGE unsecured committed revolving lines of credit totaling $100 million | 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 unsecured committed revolving lines of credit totaling $100 million | Maximum [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
MGE Energy [Member] | Line of Credit [Member] | MGE Energy unsecured committed revolving line of credit totaling $50 million | ||||
Short-term Debt [Line Items] | ||||
Available lines of credit | $ 50,000 | |||
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 unsecured committed revolving line of credit totaling $50 million | 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 unsecured committed revolving line of credit totaling $50 million | Maximum [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt to total capitalization ratio | 0.65 | |||
[1] | MGE Energy short-term borrowings include MGE Energy and MGE lines of credit and MGE commercial paper. |
Fair Value of Financial Instr70
Fair Value of Financial Instruments (Details-1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Carrying Amount [Member] | |||
Assets: | |||
Cash and cash equivalents | $ 81,384 | $ 65,755 | |
Liabilities: | |||
Short-term debt - commercial paper | 0 | 7,000 | |
Long-Term debt | [1] | 395,508 | 399,690 |
Fair Value [Member] | |||
Assets: | |||
Cash and cash equivalents | 81,384 | 65,755 | |
Liabilities: | |||
Short-term debt - commercial paper | 0 | 7,000 | |
Long-Term debt | [1] | 435,767 | 457,420 |
MGE [Member] | Carrying Amount [Member] | |||
Assets: | |||
Cash and cash equivalents | 26,760 | 4,562 | |
Liabilities: | |||
Short-term debt - commercial paper | 0 | 7,000 | |
Long-Term debt | [1] | 395,508 | 399,690 |
MGE [Member] | Fair Value [Member] | |||
Assets: | |||
Cash and cash equivalents | 26,760 | 4,562 | |
Liabilities: | |||
Short-term debt - commercial paper | 0 | 7,000 | |
Long-Term debt | [1] | $ 435,767 | $ 457,420 |
[1] | *Includes long-term debt due within one year. |
Fair Value of Financial Instr71
Fair Value of Financial Instruments (Details-2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets: | |||
Available-for-sale securities | $ 2,822 | $ 2,729 | |
Liabilities: | |||
Derivative liability, collateral offset | 1,000 | 2,200 | |
Recurring [Member] | |||
Assets: | |||
Derivative assets, net | 234 | 642 | |
Total Assets | 993 | 1,569 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 54,316 | 55,640 |
Deferred compensation | 3,145 | 2,832 | |
Total Liabilities | 57,461 | 58,472 | |
Recurring [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 759 | 927 | |
Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative assets, net | 0 | 0 | |
Total Assets | 759 | 927 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 581 | 1,012 |
Deferred compensation | 0 | 0 | |
Total Liabilities | 581 | 1,012 | |
Recurring [Member] | Level 1 [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 759 | 927 | |
Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative assets, net | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 0 | 0 |
Deferred compensation | 3,145 | 2,832 | |
Total Liabilities | 3,145 | 2,832 | |
Recurring [Member] | Level 2 [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative assets, net | 234 | 642 | |
Total Assets | 234 | 642 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 53,735 | 54,628 |
Deferred compensation | 0 | 0 | |
Total Liabilities | 53,735 | 54,628 | |
Recurring [Member] | Level 3 [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 0 | 0 | |
MGE [Member] | |||
Assets: | |||
Available-for-sale securities | 518 | 729 | |
Liabilities: | |||
Derivative liability, collateral offset | 1,000 | 2,200 | |
MGE [Member] | Recurring [Member] | |||
Assets: | |||
Derivative assets, net | 234 | 642 | |
Total Assets | 382 | 992 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 54,316 | 55,640 |
Deferred compensation | 3,145 | 2,832 | |
Total Liabilities | 57,461 | 58,472 | |
MGE [Member] | Recurring [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 148 | 350 | |
MGE [Member] | Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative assets, net | 0 | 0 | |
Total Assets | 148 | 350 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 581 | 1,012 |
Deferred compensation | 0 | 0 | |
Total Liabilities | 581 | 1,012 | |
MGE [Member] | Recurring [Member] | Level 1 [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 148 | 350 | |
MGE [Member] | Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative assets, net | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 0 | 0 |
Deferred compensation | 3,145 | 2,832 | |
Total Liabilities | 3,145 | 2,832 | |
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 | 234 | 642 | |
Total Assets | 234 | 642 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 53,735 | 54,628 |
Deferred compensation | 0 | 0 | |
Total Liabilities | 53,735 | 54,628 | |
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 $1.0 and $2.2 million of collateral that was posted against derivative positions with counterparties as of December 31, 2015 and 2014, respectively. |
Fair Value of Financial Instr72
Fair Value of Financial Instruments (Details-3) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Basis adjustment: | ||
Basis adjustment - on peak | 96.90% | 98.10% |
Basis adjustment - off peak | 95.10% | 95.00% |
US Treasury Bills [Member] | ||
Deferred compensation plan | ||
Investment interest calculation, investment maturity period (26 weeks) | 182 days | |
Investment interest calculation, monthly compounding rate | 1.00% | |
Investment interest calculation, minimum annual rate compounded monthly | 7.00% | |
Minimum [Member] | ||
Counterparty fuel mix: | ||
Internal generation | 60.00% | 50.00% |
Purchased power | 25.00% | 30.00% |
Maximum [Member] | ||
Counterparty fuel mix: | ||
Internal generation | 75.00% | 70.00% |
Purchased power | 40.00% | 50.00% |
Fair Value of Financial Instr73
Fair Value of Financial Instruments (Details-4) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ (53,986) | $ (64,628) | $ (72,346) | |
Realized and unrealized gains (losses): | ||||
Included in regulatory liabilities | 484 | 10,642 | 7,718 | |
Included in other comprehensive income | 0 | 0 | 0 | |
Included in earnings | [1] | (6,635) | 5,129 | (2,618) |
Included in current assets | 0 | 0 | (108) | |
Purchases | 23,052 | 26,382 | 23,726 | |
Sales | 35 | (125) | (2) | |
Issuances | 0 | 0 | 0 | |
Settlements | (16,451) | (31,386) | (20,998) | |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | |
Ending balance | (53,501) | (53,986) | (64,628) | |
Total gains (losses) included in earnings attributed to the change in unrealized gains (losses) related to assets and liabilities | [1] | 0 | 0 | 0 |
Purchased Power Expense [Member] | ||||
Realized and unrealized gains (losses): | ||||
Included in earnings | [1] | (6,663) | 5,137 | (2,618) |
Cost Of Gas Sold Expense [Member] | ||||
Realized and unrealized gains (losses): | ||||
Included in earnings | [1] | $ 28 | $ (8) | $ 0 |
[1] | MGE's exchange-traded derivative contracts, over-the-count er party transactions, 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 ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income tax provision components [Abstract] | ||||||||||||||
Current payable: Federal | $ 16,837 | $ (891) | $ (1,508) | |||||||||||
Current payable: State | 2,774 | (589) | 8,213 | |||||||||||
Net-deferred: Federal | 15,951 | 39,284 | 37,203 | |||||||||||
Net-deferred: State | 5,976 | 10,600 | 1,163 | |||||||||||
Amortized investment tax credits | (175) | (219) | (212) | |||||||||||
Total income tax provision | $ 7,417 | $ 15,351 | $ 8,008 | $ 10,587 | $ 8,600 | $ 14,286 | $ 9,034 | $ 16,265 | $ 41,363 | $ 48,185 | $ 44,859 | |||
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 | 5.20% | 5.10% | 5.10% | |||||||||||
Amortized investment tax credits | (0.20%) | (0.20%) | (0.20%) | |||||||||||
Credit for electricity from wind energy | (1.80%) | (1.70%) | (1.50%) | |||||||||||
Domestic manufacturing deduction | (1.40%) | 0.00% | (0.20%) | |||||||||||
AFUDC Equity, net | (0.10%) | (0.80%) | (0.70%) | |||||||||||
Other, net, individually significant | 0.00% | 0.10% | 0.00% | |||||||||||
Effective income tax rate | 36.70% | 37.50% | 37.50% | |||||||||||
Deferred tax liabilities (assets) on balance sheet [Abstract] | ||||||||||||||
Property-related | $ 327,918 | $ 312,903 | ||||||||||||
Investment in ATC | 38,213 | 36,140 | ||||||||||||
Bond transactions | 1,422 | 1,420 | ||||||||||||
Pension and other postretirement benefits | 57,697 | 57,847 | ||||||||||||
Derivatives | 21,660 | 22,331 | ||||||||||||
Tax deductible prepayments | 8,011 | 8,077 | ||||||||||||
Other deferred tax liabilities | 14,997 | 10,451 | ||||||||||||
Gross deferred income tax liabilities | 469,918 | 449,169 | ||||||||||||
Future tax benefit | 0 | (4,092) | ||||||||||||
Accrued expenses | (21,391) | (32,091) | ||||||||||||
Pension and other postretirement benefits | (46,582) | (44,994) | ||||||||||||
Deferred tax regulatory account | (1,047) | (1,211) | ||||||||||||
Derivatives | (21,660) | (22,331) | ||||||||||||
Other deferred tax assets | (18,523) | (5,957) | ||||||||||||
Gross deferred income tax assets | (109,203) | (110,676) | ||||||||||||
Less valuation allowance | 70 | 70 | ||||||||||||
Net deferred income tax assets | (109,133) | (110,606) | ||||||||||||
Deferred income taxes | 360,785 | 338,563 | ||||||||||||
Operating loss deductions and tax credit carryforwards [Abstract] | ||||||||||||||
State net tax operating loss deductions | 1,400 | |||||||||||||
Unrecognized tax benefits [Roll Forward] | ||||||||||||||
Unrecognized tax benefits, beginning balance | 2,365 | 2,363 | $ 2,365 | $ 2,363 | $ 3,204 | |||||||||
Additions based on tax positions related to current year | 488 | 610 | 377 | |||||||||||
Additions based on tax positions related to prior year | 520 | 618 | 424 | |||||||||||
Reductions based on tax positions related to the current year | 0 | 0 | (40) | |||||||||||
Reductions based on tax positions related to prior years | (845) | (1,226) | (1,602) | |||||||||||
Unrecognized tax benefits, ending balance | 2,528 | 2,365 | 2,528 | 2,365 | 2,363 | |||||||||
Interest on unrecognized tax benefits [Roll Forward] | ||||||||||||||
Accrued interest on unrecognized tax benefits, beginning balance | 92 | 101 | 92 | 101 | 314 | |||||||||
Reduction in interest expense on uncertain tax positions | (102) | (97) | (275) | |||||||||||
Interest expense on uncertain tax positions | 321 | 88 | 62 | |||||||||||
Accrued interest on unrecognized tax benefits, ending balance | 311 | 92 | 311 | 92 | 101 | |||||||||
Unrecognized Tax Benefits | ||||||||||||||
Unrecognized tax benefits | 2,528 | 2,365 | 2,365 | $ 2,363 | 2,365 | 2,365 | 2,363 | 2,528 | 2,365 | $ 2,363 | ||||
Unrecognized tax benefits permanent differences | 0 | 0 | $ 0 | |||||||||||
Other deferred liabilities [Member] | ||||||||||||||
Unrecognized tax benefits [Roll Forward] | ||||||||||||||
Unrecognized tax benefits, beginning balance | 400 | 400 | ||||||||||||
Unrecognized tax benefits, ending balance | 2,500 | 400 | 2,500 | 400 | ||||||||||
Unrecognized Tax Benefits | ||||||||||||||
Unrecognized tax benefits | $ 2,500 | 400 | 400 | 2,500 | 400 | 2,500 | 400 | |||||||
Deferred tax assets [Member] | ||||||||||||||
Unrecognized tax benefits [Roll Forward] | ||||||||||||||
Unrecognized tax benefits, beginning balance | 2,000 | 2,000 | ||||||||||||
Unrecognized tax benefits, ending balance | 2,000 | 2,000 | ||||||||||||
Unrecognized Tax Benefits | ||||||||||||||
Unrecognized tax benefits | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | |||||||||
Current assets [Member] | Accounting Standards Update 2015-17 - Deferred Income Taxes [Member] | ||||||||||||||
New Accounting Pronouncement Or Change In Accounting Principle Retrospective Adjustments [Abstract] | ||||||||||||||
New accounting pronouncement, effect of adoption, change in assets (deferred income taxes) | (3,500) | |||||||||||||
Deferred liabilities [Member] | Accounting Standards Update 2015-17 - Deferred Income Taxes [Member] | ||||||||||||||
New Accounting Pronouncement Or Change In Accounting Principle Retrospective Adjustments [Abstract] | ||||||||||||||
New accounting pronouncement, effect of adoption, change in liabilities (deferred income taxes) | (3,500) | |||||||||||||
State [Member] | ||||||||||||||
Operating loss deductions and tax credit carryforwards [Abstract] | ||||||||||||||
Operating loss carryforward | 0 | 16,500 | ||||||||||||
Operating loss carryforward, deferred tax asset | 0 | 800 | ||||||||||||
Federal [Member] | ||||||||||||||
Operating loss deductions and tax credit carryforwards [Abstract] | ||||||||||||||
Tax credit carryforward, amount | 0 | 5,400 | ||||||||||||
Tax credit carryforward, deferred tax asset | 0 | 5,400 | ||||||||||||
MGE [Member] | ||||||||||||||
Income tax provision components [Abstract] | ||||||||||||||
Current payable: Federal | 19,295 | 637 | (448) | |||||||||||
Current payable: State | 3,443 | (451) | 8,322 | |||||||||||
Net-deferred: Federal | 13,538 | 38,553 | 36,937 | |||||||||||
Net-deferred: State | 5,305 | 10,625 | 1,223 | |||||||||||
Amortized investment tax credits | (175) | (219) | (212) | |||||||||||
Total income tax provision | $ 41,406 | $ 49,145 | $ 45,822 | |||||||||||
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 | 5.20% | 5.10% | 5.10% | |||||||||||
Amortized investment tax credits | (0.20%) | (0.20%) | (0.20%) | |||||||||||
Credit for electricity from wind energy | (1.80%) | (1.70%) | (1.50%) | |||||||||||
Domestic manufacturing deduction | (1.40%) | 0.00% | (0.20%) | |||||||||||
AFUDC Equity, net | (0.10%) | (0.80%) | (0.70%) | |||||||||||
Other, net, individually significant | 0.00% | 0.10% | 0.00% | |||||||||||
Effective income tax rate | 36.70% | 37.50% | 37.50% | |||||||||||
Deferred tax liabilities (assets) on balance sheet [Abstract] | ||||||||||||||
Property-related | 327,822 | 312,807 | ||||||||||||
Investment in ATC | 30,382 | 29,156 | ||||||||||||
Bond transactions | 1,422 | 1,420 | ||||||||||||
Pension and other postretirement benefits | 57,697 | 57,847 | ||||||||||||
Derivatives | 21,660 | 22,331 | ||||||||||||
Tax deductible prepayments | 8,011 | 8,077 | ||||||||||||
Other deferred tax liabilities | 14,831 | 10,259 | ||||||||||||
Gross deferred income tax liabilities | 461,825 | 441,897 | ||||||||||||
Future tax benefit | 0 | (4,092) | ||||||||||||
Accrued expenses | (21,391) | (32,091) | ||||||||||||
Pension and other postretirement benefits | (46,582) | (44,994) | ||||||||||||
Deferred tax regulatory account | (1,047) | (1,211) | ||||||||||||
Derivatives | (21,660) | (22,331) | ||||||||||||
Other deferred tax assets | (18,589) | (3,746) | ||||||||||||
Gross deferred income tax assets | (109,269) | (108,465) | ||||||||||||
Less valuation allowance | 70 | 70 | ||||||||||||
Net deferred income tax assets | (109,199) | (108,395) | ||||||||||||
Deferred income taxes | 352,626 | 333,502 | ||||||||||||
Operating loss deductions and tax credit carryforwards [Abstract] | ||||||||||||||
State net tax operating loss deductions | 1,400 | |||||||||||||
MGE [Member] | Deferred tax assets [Member] | ||||||||||||||
Unrecognized tax benefits [Roll Forward] | ||||||||||||||
Unrecognized tax benefits, beginning balance | 2,000 | $ 2,000 | ||||||||||||
Unrecognized tax benefits, ending balance | 2,000 | $ 2,000 | ||||||||||||
Unrecognized Tax Benefits | ||||||||||||||
Unrecognized tax benefits | $ 2,000 | $ 2,000 | $ 2,000 | 2,000 | 2,000 | |||||||||
MGE [Member] | Current assets [Member] | Accounting Standards Update 2015-17 - Deferred Income Taxes [Member] | ||||||||||||||
New Accounting Pronouncement Or Change In Accounting Principle Retrospective Adjustments [Abstract] | ||||||||||||||
New accounting pronouncement, effect of adoption, change in assets (deferred income taxes) | (1,300) | |||||||||||||
MGE [Member] | Deferred liabilities [Member] | Accounting Standards Update 2015-17 - Deferred Income Taxes [Member] | ||||||||||||||
New Accounting Pronouncement Or Change In Accounting Principle Retrospective Adjustments [Abstract] | ||||||||||||||
New accounting pronouncement, effect of adoption, change in liabilities (deferred income taxes) | $ (1,300) | |||||||||||||
MGE [Member] | State [Member] | ||||||||||||||
Operating loss deductions and tax credit carryforwards [Abstract] | ||||||||||||||
Operating loss carryforward | 0 | 16,500 | ||||||||||||
Operating loss carryforward, deferred tax asset | 0 | 800 | ||||||||||||
MGE [Member] | Federal [Member] | ||||||||||||||
Operating loss deductions and tax credit carryforwards [Abstract] | ||||||||||||||
Tax credit carryforward, amount | 0 | 5,400 | ||||||||||||
Tax credit carryforward, deferred tax asset | $ 0 | $ 5,400 |
Pension Plans and Other Postr75
Pension Plans and Other Postretirement Benefits (Details-1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Defined contribution plans [Abstract] | ||||
Defined contribution costs | $ 2,800 | $ 2,500 | $ 2,300 | |
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 327,500 | |||
Fair value of plan assets at end of year | 330,886 | 327,500 | ||
Amounts recognized in the consolidated balance sheets to reflect funded status of plans [Abstract] | ||||
Long-term liability | (75,680) | (90,201) | ||
Pension Benefits [Member] | ||||
Change in benefit obligations [Roll Forward] | ||||
Net benefit obligation at beginning of year | 340,233 | 283,958 | ||
Service cost | 7,263 | 6,179 | 7,705 | |
Interest cost | 13,766 | 13,574 | 12,656 | |
Plan participants' contributions | 0 | 0 | ||
Actuarial (gain) loss | [1] | (17,576) | 48,162 | |
Gross benefits paid | (11,121) | (11,640) | ||
Less: federal subsidy on benefits paid | 0 | 0 | ||
Benefit obligation at end of year | 332,565 | 340,233 | 283,958 | |
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 288,548 | 277,398 | ||
Actual return on plan assets | 4,153 | 21,907 | ||
Employer contributions | 9,136 | 883 | ||
Plan participants' contributions | 0 | 0 | ||
Gross benefits paid | (11,121) | (11,640) | ||
Fair value of plan assets at end of year | 290,716 | 288,548 | 277,398 | |
Funded Status at December 31 | (41,849) | (51,685) | ||
Accumulated benefit obligation | 302,500 | 304,000 | ||
Amounts recognized in the consolidated balance sheets to reflect funded status of plans [Abstract] | ||||
Current liability | (966) | (1,025) | ||
Long-term liability | (40,883) | (50,660) | ||
Net liability | (41,849) | (51,685) | ||
Amounts recognized in the consolidated balance sheets as regulatory asset [Abstract] | ||||
Net actuarial loss | 80,660 | 85,102 | ||
Prior service (credit) cost | (436) | (413) | ||
Transition obligation | 0 | 0 | ||
Total | 80,224 | 84,689 | ||
Projected benefit obligation in excess of plan assets [Abstract] | ||||
Projected benefit obligation with projected benefit obligation in excess of plan assets, end of year | 332,565 | 340,233 | ||
Fair value of plan assets with projected benefit obligation in excess of plan assets, end of year | 290,716 | 288,548 | ||
Accumulated benefit obligation in excess of plan assets [Abstract] | ||||
Projected benefit obligation with accumulated benefit obligation in excess of plan assets, end of year | 332,565 | 340,233 | ||
Accumulated benefit obligation with accumulated benefit obligation in excess of plan assets, end of year | 302,471 | 304,023 | ||
Fair value of plan assets with accumulated benefit obligation in excess of plan assets, end of year | 290,716 | 288,548 | ||
Postretirement Benefits [Member] | ||||
Change in benefit obligations [Roll Forward] | ||||
Net benefit obligation at beginning of year | 78,478 | 66,100 | ||
Service cost | 1,559 | 1,339 | 2,380 | |
Interest cost | 3,075 | 3,166 | 3,871 | |
Plan participants' contributions | 741 | 708 | ||
Actuarial (gain) loss | [1] | (5,828) | 10,090 | |
Gross benefits paid | (3,280) | (3,113) | ||
Less: federal subsidy on benefits paid | [2] | 190 | 188 | |
Benefit obligation at end of year | 74,935 | 78,478 | 66,100 | |
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 38,952 | 37,602 | ||
Actual return on plan assets | 603 | 2,558 | ||
Employer contributions | 3,154 | 1,197 | ||
Plan participants' contributions | 741 | 708 | ||
Gross benefits paid | (3,280) | (3,113) | ||
Fair value of plan assets at end of year | 40,170 | 38,952 | $ 37,602 | |
Funded Status at December 31 | (34,765) | (39,526) | ||
Medicare subsidy due to MGE | 200 | 200 | ||
Amounts recognized in the consolidated balance sheets to reflect funded status of plans [Abstract] | ||||
Current liability | (52) | (65) | ||
Long-term liability | (34,713) | (39,461) | ||
Net liability | (34,765) | (39,526) | ||
Amounts recognized in the consolidated balance sheets as regulatory asset [Abstract] | ||||
Net actuarial loss | 13,086 | 17,657 | ||
Prior service (credit) cost | (15,158) | (17,827) | ||
Transition obligation | 29 | 32 | ||
Total | $ (2,043) | $ (138) | ||
[1] | In 2014, lower discount rates and mortality table updates were the main drivers to the actuarial loss. | |||
[2] | 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, 2015 and 2014 , the subsidy due to MGE was $ 0.2 million . |
Pension Plans and Other Postr76
Pension Plans and Other Postretirement Benefits (Details-2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of Net Periodic Cost (Benefit) | |||
Transition obligation straight-line amortization period | 20 years | ||
Pension Benefits [Member] | |||
Components of Net Periodic Cost (Benefit) | |||
Service cost | $ 7,263 | $ 6,179 | $ 7,705 |
Interest cost | 13,766 | 13,574 | 12,656 |
Expected return on assets | (22,682) | (22,051) | (19,027) |
Amortization of: | |||
Transition obligation | 0 | 0 | 0 |
Prior service cost (benefit) | 23 | 204 | 314 |
Actuarial loss | 5,395 | 703 | 8,014 |
Net periodic cost (benefit) | 3,765 | (1,391) | 9,662 |
Postretirement Benefits [Member] | |||
Components of Net Periodic Cost (Benefit) | |||
Service cost | 1,559 | 1,339 | 2,380 |
Interest cost | 3,075 | 3,166 | 3,871 |
Expected return on assets | (2,812) | (2,615) | (2,176) |
Amortization of: | |||
Transition obligation | 3 | 3 | 3 |
Prior service cost (benefit) | (2,669) | (2,669) | 110 |
Actuarial loss | 953 | 252 | 1,236 |
Net periodic cost (benefit) | $ 109 | $ (524) | $ 5,424 |
Pension Plans and Other Postr77
Pension Plans and Other Postretirement Benefits (Details-3) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Pension Benefits [Member] | ||||
Weighted-average assumptions used to determine benefit obligations: | ||||
Discount rate | [1] | 4.51% | 4.11% | |
Rate of compensation increase | 3.78% | 3.85% | ||
Weighted-average assumptions used to determine net periodic cost: | ||||
Discount rate | 4.11% | 4.88% | 4.09% | |
Long-term rate of return | 7.80% | 8.10% | 8.10% | |
Rate of compensation increase | 3.84% | 3.93% | 4.60% | |
Postretirement Benefits [Member] | ||||
Weighted-average assumptions used to determine benefit obligations: | ||||
Discount rate | [1] | 4.32% | 3.96% | |
Assumed health care cost trend rates: | ||||
Health care cost trend rate assumed for next year | 6.50% | 6.50% | ||
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 | 2,022 | 2,021 | ||
Weighted-average assumptions used to determine net periodic cost: | ||||
Discount rate | 3.96% | 4.69% | 4.14% | |
Long-term rate of return | 7.06% | 7.07% | 6.79% | |
How assumed 1% increase or decrease in health care cost trends could impact postretirement benefits [Abstract] | ||||
Effect on other postretirement benefit obligation - 1% increase | $ 1,391 | |||
Effect on other postretirement benefit obligation - 1% decrease | (1,753) | |||
Effect on total service and interest cost components - 1% increase | 80 | |||
Effect on total service and interest cost components - 1% decrease | $ (92) | |||
[1] | In 2015, MGE refined its methodology for using discount rates to measure the components of net periodic benefit cost. The refined methodology uses individual spot rates, instead of a weighted average of the yield curve spot rates, for measuring the service cost and interest cost components. The change in methodology does not alter the measurement of the related benefit obligation as of December 31, 2015. |
Pension Plans and Other Postr78
Pension Plans and Other Postretirement Benefits (Details-4) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)concentration | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | $ 330,886 | $ 327,500 | ||
Real Estate [Member] | ||||
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | $ 27,231 | $ 23,480 | ||
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 | $ 290,716 | $ 288,548 | $ 277,398 | |
Pension Benefits [Member] | Plan Assets [Member] | ||||
Concentration of Credit Risk [Abstract] | ||||
Concentration risk, percentage | 10.00% | |||
Concentration risk, number of significant concentrations | concentration | 0 | |||
Pension Benefits [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target Plan Asset Allocation | [1] | 63.00% | ||
Actual Plan Asset Allocation | 63.00% | 62.00% | ||
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 | 29.00% | 31.00% | ||
Pension Benefits [Member] | Real Estate [Member] | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Target Plan Asset Allocation | 7.00% | |||
Actual Plan Asset Allocation | 8.00% | 7.00% | ||
Postretirement Benefits [Member] | ||||
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | $ 40,170 | $ 38,952 | $ 37,602 | |
Postretirement Benefits [Member] | Plan Assets [Member] | ||||
Concentration of Credit Risk [Abstract] | ||||
Concentration risk, percentage | 10.00% | |||
Concentration risk, number of significant concentrations | concentration | 0 | |||
Master Pension Trust [Member] | ||||
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | $ 34,100 | $ 32,800 | ||
[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 Postr79
Pension Plans and Other Postretirement Benefits (Details-5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 330,886 | $ 327,500 | |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 300 | ||
Equity Securities [Member] | U.S. Large Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 98,949 | 99,256 | |
Equity Securities [Member] | U.S. Mid Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22,446 | 22,926 | |
Equity Securities [Member] | U.S. Small Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27,561 | 29,353 | |
Equity Securities [Member] | International Blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55,948 | 47,650 | |
Fixed Income Securities [Member] | Short-Term Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,388 | 3,776 | |
Fixed Income Securities [Member] | High Yield Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16,225 | 15,492 | |
Fixed Income Securities [Member] | Long Duration Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 73,112 | 79,603 | |
Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27,231 | 23,480 | |
Insurance Continuance Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,518 | 1,518 | |
Fixed Rate Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,208 | 4,446 | |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 300 | 0 | |
Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 300 | ||
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 | 0 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 297,629 | 298,056 | |
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 | 98,949 | 99,256 | |
Level 2 [Member] | Equity Securities [Member] | U.S. Mid Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22,446 | 22,926 | |
Level 2 [Member] | Equity Securities [Member] | U.S. Small Cap [Memeber] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27,561 | 29,353 | |
Level 2 [Member] | Equity Securities [Member] | International Blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55,948 | 47,650 | |
Level 2 [Member] | Fixed Income Securities [Member] | Short-Term Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,388 | 3,776 | |
Level 2 [Member] | Fixed Income Securities [Member] | High Yield Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16,225 | 15,492 | |
Level 2 [Member] | Fixed Income Securities [Member] | Long Duration Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 73,112 | 79,603 | |
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 | 0 | |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 32,957 | 29,444 | |
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 | 27,231 | 23,480 | $ 19,628 |
Level 3 [Member] | Insurance Continuance Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,518 | 1,518 | 1,428 |
Level 3 [Member] | Fixed Rate Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 4,208 | $ 4,446 | $ 0 |
Pension Plans and Other Postr80
Pension Plans and Other Postretirement Benefits (Details-6) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 327,500 | |
Fair value of plan assets at end of year | 330,886 | $ 327,500 |
Real Estate [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 23,480 | |
Fair value of plan assets at end of year | 27,231 | 23,480 |
Insurance Continuance Fund [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 1,518 | |
Fair value of plan assets at end of year | 1,518 | 1,518 |
Fixed Rate Fund [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 4,446 | |
Fair value of plan assets at end of year | 4,208 | 4,446 |
Level 3 [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 29,444 | |
Fair value of plan assets at end of year | 32,957 | 29,444 |
Level 3 [Member] | Real Estate [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 23,480 | 19,628 |
Actual return on plan assets still held | 2,749 | 1,561 |
Purchases, sales, and settlements | 1,002 | 2,291 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | 27,231 | 23,480 |
Level 3 [Member] | Insurance Continuance Fund [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 1,518 | 1,428 |
Actual return on plan assets still held | 46 | 44 |
Purchases, sales, and settlements | (46) | 46 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | 1,518 | 1,518 |
Level 3 [Member] | Fixed Rate Fund [Member] | ||
Change in plan assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 4,446 | 0 |
Actual return on plan assets still held | 103 | 54 |
Purchases, sales, and settlements | (341) | 4,392 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | $ 4,208 | $ 4,446 |
Pension Plans and Other Postr81
Pension Plans and Other Postretirement Benefits (Details-7) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Expected Cash Flows | |||
Expected employer contributions, 2016 | $ 10,000 | ||
Expected employer contributions, 2017 | 0 | ||
Cash contributions to pension and other postretirement plans | 13,676 | $ 3,321 | $ 34,765 |
Pension Benefits [Member] | |||
Benefit Payments | |||
Defined benefit plan expected future benefit payments, 2016 | 12,489 | ||
Defined benefit plan expected future benefit payments, 2017 | 13,320 | ||
Defined benefit plan expected future benefit payments, 2018 | 14,506 | ||
Defined benefit plan expected future benefit payments, 2019 | 15,456 | ||
Defined benefit plan expected future benefit payments, 2020 | 16,381 | ||
Defined benefit plan expected future benefit payments, 2021-2025 | 95,167 | ||
Postretirement Benefits [Member] | |||
Benefit Payments | |||
Defined benefit plan expected future benefit payments, 2016 | 2,892 | ||
Defined benefit plan expected future benefit payments, 2017 | 3,232 | ||
Defined benefit plan expected future benefit payments, 2018 | 3,674 | ||
Defined benefit plan expected future benefit payments, 2019 | 4,157 | ||
Defined benefit plan expected future benefit payments, 2020 | 4,585 | ||
Defined benefit plan expected future benefit payments, 2021-2025 | 28,243 | ||
Gross Postretirement Benefits [Member] | |||
Benefit Payments | |||
Defined benefit plan expected future benefit payments, 2016 | 3,119 | ||
Defined benefit plan expected future benefit payments, 2017 | 3,481 | ||
Defined benefit plan expected future benefit payments, 2018 | 3,947 | ||
Defined benefit plan expected future benefit payments, 2019 | 4,453 | ||
Defined benefit plan expected future benefit payments, 2020 | 4,910 | ||
Defined benefit plan expected future benefit payments, 2021-2025 | 30,364 | ||
Expected Medicare Part D Subsidy [Member] | |||
Benefit Payments | |||
Defined benefit plan expected future benefit payments, 2016 | (227) | ||
Defined benefit plan expected future benefit payments, 2017 | (249) | ||
Defined benefit plan expected future benefit payments, 2018 | (273) | ||
Defined benefit plan expected future benefit payments, 2019 | (296) | ||
Defined benefit plan expected future benefit payments, 2020 | (325) | ||
Defined benefit plan expected future benefit payments, 2021-2025 | $ (2,121) |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | Feb. 19, 2016 | Jan. 15, 2016 | Feb. 20, 2015 | Jan. 16, 2015 | Feb. 21, 2014 | Jan. 17, 2014 | Feb. 15, 2013 | Feb. 17, 2012 | Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense | $ 1 | $ 2 | $ 1.5 | |||||||||
Awards forfeited during period, value | $ 0.2 | $ 0 | $ 0 | |||||||||
Awards forfeited during period, units | 4,676 | 0 | 0 | |||||||||
Outstanding awards vested during period | $ 5.2 | |||||||||||
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 | $ 1.3 | |||||||||||
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) | 18,948 | 21,991 | 22,884 | 25,040 | ||||||||
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) | 19,055 | |||||||||||
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) | 3,794 | 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) | 3,773 |
Regional Transmission Organiz83
Regional Transmission Organizations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Regional Transmission Organizations Disclosure [Abstract] | |||
Reduction to sales and purchased power expense from reporting RTO transactions from net basis reporting | $ 68.6 | $ 91.1 | $ 78 |
Derivative and Hedging Instru84
Derivative and Hedging Instruments (Details-1) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)DthMWhMW | Dec. 31, 2014USD ($)DthMWhMW | Dec. 31, 2013USD ($) | |
Gross Notional Volume of Open Derivatives | |||
Derivative, right to reclaim collateral (receivable) | $ 1,000 | $ 2,200 | |
Other Current Assets [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, net | 1,208 | 1,001 | $ 411 |
Commodity Contracts and Financial Transimission Rights [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, net | $ (800) | $ (1,600) | |
Commodity Derivative Contracts [Member] | |||
Gross Notional Volume of Open Derivatives | |||
Notional amount, energy measure (in MWh) | MWh | 355,580 | 448,000 | |
Notional amount, decatherm measure (in Dth) | Dth | 5,037,500 | 4,405,000 | |
Derivative Fair Values [Abstract] | |||
Asset Derivatives, fair value, gross basis | $ 290 | $ 223 | |
Liability Derivatives, fair value, gross basis | 1,336 | 2,433 | |
Commodity Derivative Contracts [Member] | Other Current Assets [Member] | |||
Derivative Fair Values [Abstract] | |||
Asset Derivatives, fair value, gross basis | 146 | 130 | |
Commodity Derivative Contracts [Member] | Other Deferred Charges [Member] | |||
Derivative Fair Values [Abstract] | |||
Asset Derivatives, fair value, gross basis | 144 | 93 | |
Commodity Derivative Contracts [Member] | Derivative Liability (Current) [Member] | |||
Derivative Fair Values [Abstract] | |||
Liability Derivatives, fair value, gross basis | 1,266 | 2,262 | |
Commodity Derivative Contracts [Member] | Derivative Liability (Long-term) [Member] | |||
Derivative Fair Values [Abstract] | |||
Liability Derivatives, fair value, gross basis | $ 70 | $ 171 | |
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) | MW | 2,000 | 1,854 | |
Derivative Fair Values [Abstract] | |||
Asset Derivatives, fair value, gross basis | $ 234 | $ 642 | |
Financial Transmission Rights [Member] | Other Current Assets [Member] | |||
Derivative Fair Values [Abstract] | |||
Asset Derivatives, fair value, gross basis | 234 | 642 | |
Financial Transmission Rights [Member] | Derivative Liability (Current) [Member] | |||
Derivative Fair Values [Abstract] | |||
Liability Derivatives, fair value, gross basis | 0 | 0 | |
PPA [Member] | |||
Derivative Fair Values [Abstract] | |||
Derivative fair value, net | (53,300) | (53,400) | |
Liability Derivatives, fair value, gross basis | 53,270 | 53,430 | |
PPA [Member] | Derivative Liability (Current) [Member] | |||
Derivative Fair Values [Abstract] | |||
Liability Derivatives, fair value, gross basis | 8,340 | 6,870 | |
PPA [Member] | Derivative Liability (Long-term) [Member] | |||
Derivative Fair Values [Abstract] | |||
Liability Derivatives, fair value, gross basis | $ 44,930 | $ 46,560 |
Derivative and Hedging Instru85
Derivative and Hedging Instruments (Details-2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commodity Derivative Contracts [Member] | ||
Offsetting Assets [Line Items] | ||
Gross amounts | $ 290 | $ 223 |
Gross amounts offset in balance sheet | (290) | (223) |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | 0 | 0 |
Financial Transmission Rights [Member] | ||
Offsetting Assets [Line Items] | ||
Gross amounts | 234 | 642 |
Gross amounts offset in balance sheet | 0 | 0 |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | $ 234 | $ 642 |
Derivative and Hedging Instru86
Derivative and Hedging Instruments (Details-3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting Liabilities [Line Items] | ||
Collateral posted against derivative positions | $ (1,000) | $ (2,200) |
Commodity Derivative Contracts [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts | 1,336 | 2,433 |
Gross amounts offset in balance sheet | (290) | (223) |
Collateral posted against derivative positions | (1,038) | (2,179) |
Net amount presented in the balance sheet | 8 | 31 |
PPA [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts | 53,270 | 53,430 |
Gross amounts offset in balance sheet | 0 | 0 |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in the balance sheet | $ 53,270 | $ 53,430 |
Derivative and Hedging Instru87
Derivative and Hedging Instruments (Details-4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current and Long-Term Regulatory Asset [Member] | ||
Change in Derivative Fair Value [Roll Forward] | ||
Beginning balance | $ 54,998 | $ 63,893 |
Unrealized loss (gain) | 8,586 | (14,518) |
Realized (loss) gain reclassified to a deferred account | (2,953) | 595 |
Realized (loss) gain reclassified to income statement | (6,549) | 5,028 |
Ending balance | 54,082 | 54,998 |
Other Current Assets [Member] | ||
Change in Derivative Fair Value [Roll Forward] | ||
Beginning balance | 1,001 | 411 |
Unrealized loss (gain) | 0 | 0 |
Realized (loss) gain reclassified to a deferred account | 2,953 | (595) |
Realized (loss) gain reclassified to income statement | (2,746) | 1,185 |
Ending balance | $ 1,208 | $ 1,001 |
Derivative and Hedging Instru88
Derivative and Hedging Instruments (Details-5) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)counterparty | Dec. 31, 2014USD ($) | |
Counterparties in net liability position or default [Abstract] | ||
Derivative, net liability position of counterparties (less than $0.1 million) | $ 100 | $ 100 |
Number of counterparties in default | counterparty | 0 | |
Commodity Derivative Contracts [Member] | Fuel For Electric Generation Purchased Power [Member] | ||
Realized losses (gains) on income statement [Line Items] | ||
Realized losses (gains) on income statement | $ 2,236 | (5,515) |
Commodity Derivative Contracts [Member] | Cost Of Gas Sold Expense [Member] | ||
Realized losses (gains) on income statement [Line Items] | ||
Realized losses (gains) on income statement | 2,548 | (1,103) |
Financial Transmission Rights [Member] | Fuel For Electric Generation Purchased Power [Member] | ||
Realized losses (gains) on income statement [Line Items] | ||
Realized losses (gains) on income statement | (309) | (1,110) |
Financial Transmission Rights [Member] | Cost Of Gas Sold Expense [Member] | ||
Realized losses (gains) on income statement [Line Items] | ||
Realized losses (gains) on income statement | 0 | 0 |
PPA [Member] | ||
Derivative collateral required to be posted for ten-year PPA [Abstract] | ||
Minimum collateral that may be required to be posted | 20,000 | |
Maximum collateral that may be required to be posted | 40,000 | |
Collateral posted | 0 | |
PPA [Member] | Fuel For Electric Generation Purchased Power [Member] | ||
Realized losses (gains) on income statement [Line Items] | ||
Realized losses (gains) on income statement | 4,820 | 1,515 |
PPA [Member] | Cost Of Gas Sold Expense [Member] | ||
Realized losses (gains) on income statement [Line Items] | ||
Realized losses (gains) on income statement | $ 0 | $ 0 |
Rate Matters (Details)
Rate Matters (Details) - PSCW [Member] - MGE [Member] - USD ($) | Oct. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Rate Proceedings [Abstract] | ||||||
Authorized return on equity, percentage | 10.20% | 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] | ||||||
Fuel Rules [Abstract] | ||||||
Return of electric fuel credit, total | $ 6,300,000 | |||||
Fuel Rules Credit, 2013 [Member] | ||||||
Fuel Rules [Abstract] | ||||||
Return of electric fuel credit, total | $ 6,500,000 | |||||
Fuel Rules Credit, 2015 [Member] | ||||||
Fuel Rules [Abstract] | ||||||
Fuel rules, deferred electric cost | $ 9,500,000 | |||||
Return of electric fuel credit, total | $ 2,600,000 | |||||
Electric fuel credit (per kWh) | $ 0.00256 | |||||
Approved Future Rate Matters [Member] | ||||||
Fuel Rules [Abstract] | ||||||
Electric fuel credit (per kWh) | $ 0.00256 | |||||
Approved Future Rate Matters [Member] | Subsequent Event [Member] | ||||||
Fuel Rules [Abstract] | ||||||
Change in fuel rules monitored costs, 2016 | $ (14,800,000) | |||||
Columbia Environmental Projects [Member] | ||||||
Rate Proceedings [Abstract] | ||||||
Authorized AFUDC rate | 100.00% | 100.00% | 50.00% | |||
Electric Rate Proceeding [Member] | ||||||
Rate Proceedings [Abstract] | ||||||
Authorized rate increase (decrease), percentage | 3.80% | 0.00% | 3.80% | |||
Authorized rate increase (decrease), amount | $ 15,400,000 | $ 0 | $ 14,900,000 | |||
Electric Rate Proceeding [Member] | Approved Future Rate Matters [Member] | ||||||
Rate Proceedings [Abstract] | ||||||
Authorized rate increase (decrease), percentage | 0.00% | |||||
Authorized rate increase (decrease), amount | $ 0 | |||||
Gas Rate Proceeding [Member] | ||||||
Rate Proceedings [Abstract] | ||||||
Authorized rate increase (decrease), percentage | (2.00%) | 0.00% | 1.00% | |||
Authorized rate increase (decrease), amount | $ (3,800,000) | $ 0 | $ 1,600,000 | |||
Gas Rate Proceeding [Member] | Approved Future Rate Matters [Member] | ||||||
Rate Proceedings [Abstract] | ||||||
Authorized rate increase (decrease), percentage | 0.00% | |||||
Authorized rate increase (decrease), amount | $ 0 |
Commitments and Contingencies90
Commitments and Contingencies (Details-1) $ in Thousands | Dec. 31, 2015USD ($)MW | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | $ 144,987 | |
Purchase obligation due in second year | 80,787 | |
Purchase obligation due in third year | 78,397 | |
Purchase obligation due in fourth year | 56,578 | |
Purchase obligation due in fifth year | 48,137 | |
Coal [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 38,028 | [1] |
Purchase obligation due in second year | 13,115 | [1] |
Purchase obligation due in third year | 12,736 | [1] |
Purchase obligation due in fourth year | 3,850 | [1] |
Purchase obligation due in fifth year | 0 | [1] |
Natural Gas, Transportation and Storage [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 18,500 | [2] |
Purchase obligation due in second year | 18,551 | [2] |
Purchase obligation due in third year | 18,482 | [2] |
Purchase obligation due in fourth year | 17,562 | [2] |
Purchase obligation due in fifth year | 14,254 | [2] |
Natural Gas, Supply [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 10,611 | [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 | 47,901 | [4] |
Purchase obligation due in second year | 48,398 | [4] |
Purchase obligation due in third year | 46,855 | [4] |
Purchase obligation due in fourth year | 35,023 | [4] |
Purchase obligation due in fifth year | $ 33,883 | [4] |
Purchase Power Agreement, Osceola Windpower II, LLC [Member] | ||
Purchase Power Agreement [Abstract] | ||
Long-term purchase commitment, minimum power required (in MW) | MW | 50 | |
Other [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | $ 29,947 | |
Purchase obligation due in second year | 723 | |
Purchase obligation due in third year | 324 | |
Purchase obligation due in fourth year | 143 | |
Purchase obligation due in fifth year | $ 0 | |
[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 is 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-bas ed 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 October 2008, MGE entered into a 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 I owa. 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 r atable share of energy produced by the project has been estimated and is included in the above numbers. |
Commitments and Contingencies91
Commitments and Contingencies (Details-2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases, Future Minimum Rental Payments [Abstract] | |||
Minimum lease payments, 2016 | $ 1,615 | ||
Minimum lease payments, 2017 | 1,282 | ||
Minimum lease payments, 2018 | 674 | ||
Minimum lease payments, 2019 | 310 | ||
Minimum lease payments, 2020 | 277 | ||
Minimum lease payments, Thereafter | 8,283 | ||
Rental expense under operating leases | $ 2,100 | $ 2,500 | $ 2,700 |
Operating leases, renewal option term (one year or less) | 1 year |
Commitments and Contingencies92
Commitments and Contingencies (Details-3) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)TonsppbpollutantphasestateMW | |
Columbia Environmental Project, SCR [Member] | MGE [Member] | |
Columbia | |
Share of projected SCR project cost, minimum | $ | $ 19 |
Share of projected SCR project cost, maximum | $ | $ 29 |
Wisconsin Energy Efficiency and Renewables Act [Member] | |
Energy Efficiency and Renewables | |
Minimum electricity generated from renewable resources by 2015 | 10.00% |
EPA [Member] | |
Effluent Limitations Guidelines and Standards for Steam Electric Power Generating Source Category [Abstract] | |
Air pollution control and ash handling systems capacity at coal burning power plants, minimum (in MW) | MW | 50 |
EPA's Greenhouse Gas Reduction Guidelines | |
National average reduction of greenhouse gas emissions by the year 2030, percentage | 32.00% |
Compliance plan preparation term related to the greenhouse gas emissions reduction guidelines | 3 years |
EPA's National Ambient Air Quality Standards | |
Number of pollutants monitored by the National Ambient Air Quality Standards | pollutant | 6 |
EPA's Ozone NAAQS | |
Current primary regulated level of Ozone NAAQS (in parts per billion) | ppb | 70 |
Current secondary regulated level of Ozone NAAQS (in parts per billion) | ppb | 70 |
EPA's Sulfur Dioxide NAAQS | |
Annual maximum level of sulfur dioxide for large stationary sources | Tons | 2,000 |
Number of phases for for attainment and nonattainment area designation | phase | 3 |
EPA's Cross State Air Pollution Rule | |
Number of eastern states identified contributing to pollution in other states | state | 27 |
Number of phases for allocation of NOx and SO2 allowances to qualifying power plants under the rule | phase | 2 |
Number of states incorporating 2008 ozone NAAQS attainment levels | state | 23 |
Commitments and Contingencies93
Commitments and Contingencies (Details-4) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
MGE [Member] | |
Other Commitments [Line Items] | |
Other commitments, due in 2016 | $ 612 |
Other commitments, due in 2017 | 523 |
Other commitments, due in 2018 | 509 |
Other commitments, due in 2019 | 511 |
Other commitments, due in 2020 | 497 |
Other commitment, due thereafter | 6,086 |
MGE Energy [Member] | Investments in Non Public Entities, Capital Infusions [Member] | |
Other Commitments [Line Items] | |
Other commitment, initial agreed upon commitment total | $ 1,600 |
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 | $ 1,500 |
Other commitments, total as of balance sheet date | $ 700 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Asset Retirement Obligations [Roll Forward] | ||||
Asset retirement obligation, beginning balance | $ 19,744 | $ 19,359 | ||
Liabilities incurred | 2,380 | [1] | 68 | |
Accretion expense | 1,131 | 1,077 | ||
Liabilities settled | (124) | (343) | ||
Revisions in estimated cash flows | 1,229 | [1] | (417) | |
Asset retirement obligation, ending balance | 24,360 | $ 19,744 | ||
Columbia Units [Member] | ||||
Asset Retirement Obligations [Roll Forward] | ||||
Liabilities incurred | [1] | 2,300 | ||
Revisions in estimated cash flows | [1] | $ 1,300 | ||
[1] | In the second quarter of 2015 , MGE recorded an obligation of $2.3 million for the fair value of its legal liability for AROs associated with the effect of the final Coal Combustion Residual Rule at Columbia. An additional $1.3 million was recorded in the fourth quarter, associated with this ARO, based on revised estimates. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | $ 130,973 | $ 140,795 | $ 122,126 | $ 170,134 | $ 145,707 | $ 135,135 | $ 128,765 | $ 210,245 | $ 564,028 | $ 619,852 | $ 590,887 | |||
Depreciation and amortization | (44,225) | (40,695) | (38,838) | |||||||||||
Other operating expenses | (395,548) | (441,059) | (424,062) | |||||||||||
Operating Income (Loss) | 22,178 | 46,177 | 24,049 | 31,851 | 29,566 | 40,120 | 24,441 | 43,971 | 124,255 | 138,098 | 127,987 | |||
Other (deductions) income, net | 8,613 | 10,079 | 10,701 | |||||||||||
Interest (expense) income, net | (20,162) | (19,673) | (18,924) | |||||||||||
Income before income taxes | 112,706 | 128,504 | 119,764 | |||||||||||
Income tax (provision) benefit | (7,417) | (15,351) | (8,008) | (10,587) | (8,600) | (14,286) | (9,034) | (16,265) | (41,363) | (48,185) | (44,859) | |||
Net Income | 11,232 | $ 28,354 | $ 13,479 | $ 18,278 | 15,186 | $ 23,329 | $ 14,087 | $ 27,717 | 71,343 | 80,319 | 74,905 | |||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 1,730,673 | 1,694,184 | [1] | 1,730,673 | 1,694,184 | [1] | 1,579,060 | |||||||
Capital expenditures | 72,030 | 92,676 | 119,047 | |||||||||||
Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 412,528 | 394,849 | 403,957 | |||||||||||
Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 143,737 | 221,720 | 181,462 | |||||||||||
Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 7,763 | 3,283 | 5,468 | |||||||||||
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 | 564,028 | 619,852 | 590,887 | |||||||||||
Operating Segments [Member] | Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 413,041 | 395,358 | 404,494 | |||||||||||
Depreciation and amortization | (29,945) | (26,933) | (25,780) | |||||||||||
Other operating expenses | (318,001) | (297,409) | (316,277) | |||||||||||
Operating Income (Loss) | 65,095 | 71,016 | 62,437 | |||||||||||
Other (deductions) income, net | 400 | 2,847 | 3,062 | |||||||||||
Interest (expense) income, net | (11,187) | (10,410) | (9,645) | |||||||||||
Income before income taxes | 54,308 | 63,453 | 55,854 | |||||||||||
Income tax (provision) benefit | (17,915) | (22,070) | (19,176) | |||||||||||
Net Income | 36,393 | 41,383 | 36,678 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 976,271 | 948,005 | [1] | 976,271 | 948,005 | [1] | 899,257 | |||||||
Capital expenditures | 49,370 | 68,067 | 100,146 | |||||||||||
Operating Segments [Member] | Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 155,517 | 230,086 | 194,091 | |||||||||||
Depreciation and amortization | (6,758) | (6,308) | (5,898) | |||||||||||
Other operating expenses | (128,241) | (194,203) | (162,661) | |||||||||||
Operating Income (Loss) | 20,518 | 29,575 | 25,532 | |||||||||||
Other (deductions) income, net | (33) | (86) | 59 | |||||||||||
Interest (expense) income, net | (3,203) | (3,229) | (2,986) | |||||||||||
Income before income taxes | 17,282 | 26,260 | 22,605 | |||||||||||
Income tax (provision) benefit | (6,915) | (10,480) | (9,168) | |||||||||||
Net Income | 10,367 | 15,780 | 13,437 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 299,792 | 307,582 | [1] | 299,792 | 307,582 | [1] | 265,694 | |||||||
Capital expenditures | 18,787 | 22,104 | 15,554 | |||||||||||
Operating Segments [Member] | Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 47,198 | 45,975 | 48,059 | |||||||||||
Depreciation and amortization | (7,475) | (7,407) | (7,156) | |||||||||||
Other operating expenses | (158) | (139) | (128) | |||||||||||
Operating Income (Loss) | 39,565 | 38,429 | 40,775 | |||||||||||
Other (deductions) income, net | 0 | 0 | 0 | |||||||||||
Interest (expense) income, net | (5,993) | (6,208) | (6,400) | |||||||||||
Income before income taxes | 33,572 | 32,221 | 34,375 | |||||||||||
Income tax (provision) benefit | (13,474) | (12,932) | (13,682) | |||||||||||
Net Income | 20,098 | 19,289 | 20,693 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 278,735 | 281,514 | [1] | 278,735 | 281,514 | [1] | 288,116 | |||||||
Capital expenditures | 3,873 | 2,505 | 3,347 | |||||||||||
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 | (19) | 0 | (1) | |||||||||||
Operating Income (Loss) | (19) | 0 | (1) | |||||||||||
Other (deductions) income, net | 7,728 | 9,150 | 9,434 | |||||||||||
Interest (expense) income, net | 0 | 0 | 0 | |||||||||||
Income before income taxes | 7,709 | 9,150 | 9,433 | |||||||||||
Income tax (provision) benefit | (3,102) | (3,664) | (3,796) | |||||||||||
Net Income | 4,607 | 5,486 | 5,637 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 69,470 | 67,697 | [1] | 69,470 | 67,697 | [1] | 64,504 | |||||||
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) | (47) | (4) | |||||||||||
Other operating expenses | (857) | (875) | (752) | |||||||||||
Operating Income (Loss) | (904) | (922) | (756) | |||||||||||
Other (deductions) income, net | 518 | (1,832) | (1,854) | |||||||||||
Interest (expense) income, net | 221 | 174 | 107 | |||||||||||
Income before income taxes | (165) | (2,580) | (2,503) | |||||||||||
Income tax (provision) benefit | 43 | 961 | 963 | |||||||||||
Net Income | (122) | (1,619) | (1,540) | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 434,868 | 438,898 | [1] | 434,868 | 438,898 | [1] | 431,436 | |||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
Operating Segments [Member] | Assets Not Allocated [Member] | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 49,753 | 41,124 | [1] | 49,753 | 41,124 | [1] | 19,853 | |||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
Consolidation/Elimination Entries [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | (51,728) | (51,567) | (55,757) | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||
Other operating expenses | 51,728 | 51,567 | 55,757 | |||||||||||
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 | (378,216) | (390,636) | [1] | (378,216) | (390,636) | [1] | (389,800) | |||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
Consolidation/Elimination Entries [Member] | Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 513 | 509 | 537 | |||||||||||
Consolidation/Elimination Entries [Member] | Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 11,780 | 8,366 | 12,629 | |||||||||||
Consolidation/Elimination Entries [Member] | Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 39,435 | 42,692 | 42,591 | |||||||||||
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 | 564,065 | 619,895 | 590,925 | |||||||||||
Depreciation and amortization | (44,178) | (40,648) | (38,834) | |||||||||||
Other operating expenses | [2] | (432,887) | (485,319) | (464,868) | ||||||||||
Operating Income (Loss) | [2] | 87,000 | 93,928 | 87,223 | ||||||||||
Other (deductions) income, net | [2] | 4,848 | 7,857 | 8,253 | ||||||||||
Interest (expense) income, net | (20,383) | (19,847) | (19,031) | |||||||||||
Income tax (provision) benefit | (41,406) | (49,145) | (45,822) | |||||||||||
Net Income Including Noncontrolling Interest | 71,465 | 81,938 | 76,445 | |||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | (26,097) | (26,310) | (27,438) | |||||||||||
Net Income | 45,368 | 55,628 | 49,007 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 1,673,784 | 1,639,351 | [1] | 1,673,784 | 1,639,351 | [1] | 1,530,643 | |||||||
Capital expenditures | 72,030 | 92,676 | 119,047 | |||||||||||
MGE [Member] | Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 412,550 | 394,871 | 403,980 | |||||||||||
MGE [Member] | Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 143,752 | 221,741 | 181,477 | |||||||||||
MGE [Member] | Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 7,763 | 3,283 | 5,468 | |||||||||||
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 | 564,065 | 619,895 | 590,925 | |||||||||||
MGE [Member] | Operating Segments [Member] | Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 413,041 | 395,358 | 404,494 | |||||||||||
Depreciation and amortization | (29,945) | (26,933) | (25,780) | |||||||||||
Other operating expenses | [2] | (335,803) | (319,175) | (335,059) | ||||||||||
Operating Income (Loss) | [2] | 47,293 | 49,250 | 43,655 | ||||||||||
Other (deductions) income, net | [2] | 287 | 2,543 | 2,668 | ||||||||||
Interest (expense) income, net | (11,187) | (10,410) | (9,645) | |||||||||||
Net Income Including Noncontrolling Interest | 36,393 | 41,383 | 36,678 | |||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | |||||||||||
Net Income | 36,393 | 41,383 | 36,678 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 976,271 | 948,005 | [1] | 976,271 | 948,005 | [1] | 899,257 | |||||||
Capital expenditures | 49,370 | 68,067 | 100,146 | |||||||||||
MGE [Member] | Operating Segments [Member] | Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 155,517 | 230,086 | 194,091 | |||||||||||
Depreciation and amortization | (6,758) | (6,308) | (5,898) | |||||||||||
Other operating expenses | [2] | (135,124) | (204,597) | (171,717) | ||||||||||
Operating Income (Loss) | [2] | 13,635 | 19,181 | 16,476 | ||||||||||
Other (deductions) income, net | [2] | (65) | (172) | (53) | ||||||||||
Interest (expense) income, net | (3,203) | (3,229) | (2,986) | |||||||||||
Net Income Including Noncontrolling Interest | 10,367 | 15,780 | 13,437 | |||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | |||||||||||
Net Income | 10,367 | 15,780 | 13,437 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 299,792 | 307,582 | [1] | 299,792 | 307,582 | [1] | 265,694 | |||||||
Capital expenditures | 18,787 | 22,104 | 15,554 | |||||||||||
MGE [Member] | Operating Segments [Member] | Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 47,198 | 45,975 | 48,059 | |||||||||||
Depreciation and amortization | (7,475) | (7,407) | (7,156) | |||||||||||
Other operating expenses | [2] | (13,632) | (13,071) | (13,810) | ||||||||||
Operating Income (Loss) | [2] | 26,091 | 25,497 | 27,093 | ||||||||||
Other (deductions) income, net | [2] | 0 | 0 | 0 | ||||||||||
Interest (expense) income, net | (5,993) | (6,208) | (6,400) | |||||||||||
Net Income Including Noncontrolling Interest | 20,098 | 19,289 | 20,693 | |||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | |||||||||||
Net Income | 20,098 | 19,289 | 20,693 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 278,685 | 281,464 | [1] | 278,685 | 281,464 | [1] | 288,066 | |||||||
Capital expenditures | 3,873 | 2,505 | 3,347 | |||||||||||
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 | [2] | (19) | 0 | (1) | ||||||||||
Operating Income (Loss) | [2] | (19) | 0 | (1) | ||||||||||
Other (deductions) income, net | [2] | 4,626 | 5,486 | 5,638 | ||||||||||
Interest (expense) income, net | 0 | 0 | 0 | |||||||||||
Net Income Including Noncontrolling Interest | 4,607 | 5,486 | 5,637 | |||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | |||||||||||
Net Income | 4,607 | 5,486 | 5,637 | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 69,470 | 67,697 | [1] | 69,470 | 67,697 | [1] | 64,504 | |||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
MGE [Member] | Operating Segments [Member] | Assets Not Allocated [Member] | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | 49,753 | 41,124 | [1] | 49,753 | 41,124 | [1] | 19,853 | |||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | (51,691) | (51,524) | (55,719) | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||
Other operating expenses | [2] | 51,691 | 51,524 | 55,719 | ||||||||||
Operating Income (Loss) | [2] | 0 | 0 | 0 | ||||||||||
Other (deductions) income, net | [2] | 0 | 0 | 0 | ||||||||||
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 | (26,097) | (26,310) | (27,438) | |||||||||||
Net Income | (26,097) | (26,310) | (27,438) | |||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | ||||||||||||||
Assets | $ (187) | $ (6,521) | [1] | (187) | (6,521) | [1] | (6,731) | |||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Electric [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 491 | 487 | 514 | |||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Gas [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 11,765 | 8,345 | 12,614 | |||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Non Regulated Energy [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 39,435 | 42,692 | 42,591 | |||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Transmission Investment [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | $ 0 | $ 0 | $ 0 | |||||||||||
[1] | Reflects retrospective application of new accounting pronouncement. See Footnote 12 for additional information. | |||||||||||||
[2] | *Amounts are shown net of the related tax expense, consistent with the presentation on the MGE Consolidated Statements of Income. |
Quarterly Summary of Operatio96
Quarterly Summary of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Revenues: | |||||||||||
Regulated electric revenues | $ 93,354 | $ 121,453 | $ 99,481 | $ 98,240 | $ 86,431 | $ 112,869 | $ 96,697 | $ 98,852 | $ 412,528 | $ 394,849 | $ 403,957 |
Regulated gas revenues | 35,709 | 17,431 | 20,669 | 69,928 | 58,385 | 21,404 | 31,218 | 110,713 | 143,737 | 221,720 | 181,462 |
Nonregulated revenues | 1,910 | 1,911 | 1,976 | 1,966 | 891 | 862 | 850 | 680 | 7,763 | 3,283 | 5,468 |
Total Operating Revenues | 130,973 | 140,795 | 122,126 | 170,134 | 145,707 | 135,135 | 128,765 | 210,245 | 564,028 | 619,852 | 590,887 |
Operating expenses | 108,795 | 94,618 | 98,077 | 138,283 | 116,141 | 95,015 | 104,324 | 166,274 | 439,773 | 481,754 | 462,900 |
Operating Income (Loss) | 22,178 | 46,177 | 24,049 | 31,851 | 29,566 | 40,120 | 24,441 | 43,971 | 124,255 | 138,098 | 127,987 |
Interest and other income, net | (3,529) | (2,472) | (2,562) | (2,986) | (5,780) | (2,505) | (1,320) | 11 | |||
Income tax provision | (7,417) | (15,351) | (8,008) | (10,587) | (8,600) | (14,286) | (9,034) | (16,265) | (41,363) | (48,185) | (44,859) |
Net Income | $ 11,232 | $ 28,354 | $ 13,479 | $ 18,278 | $ 15,186 | $ 23,329 | $ 14,087 | $ 27,717 | $ 71,343 | $ 80,319 | $ 74,905 |
Earnings per common share | $ 0.32 | $ 0.82 | $ 0.39 | $ 0.53 | $ 0.44 | $ 0.67 | $ 0.41 | $ 0.8 | $ 2.06 | $ 2.32 | $ 2.16 |
Dividends per share | $ 0.295 | $ 0.295 | $ 0.283 | $ 0.283 | $ 0.283 | $ 0.283 | $ 0.272 | $ 0.272 | $ 1.16 | $ 1.11 | $ 1.07 |
Related Party Transactions (Det
Related Party Transactions (Details) - ATC [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related party transaction [Line Items] | |||
Related party expenses | $ 28.2 | $ 26.8 | $ 27.7 |
Due from Related Parties | $ 0.2 | $ 0.1 | $ 0.2 |
Schedule I - Condensed Parent C
Schedule I - Condensed Parent Company Finanical Statements (Details-Comprehensive Income Statement) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Expenses: | |||||||||||
Other operations and maintenance | $ 164,478 | $ 161,703 | $ 171,248 | ||||||||
Total Operating Expenses | $ 108,795 | $ 94,618 | $ 98,077 | $ 138,283 | $ 116,141 | $ 95,015 | $ 104,324 | $ 166,274 | 439,773 | 481,754 | 462,900 |
Operating Income (Loss) | 22,178 | 46,177 | 24,049 | 31,851 | 29,566 | 40,120 | 24,441 | 43,971 | 124,255 | 138,098 | 127,987 |
Equity in earnings of investments | 7,728 | 9,150 | 9,434 | ||||||||
Income before income taxes | 112,706 | 128,504 | 119,764 | ||||||||
Income tax provision | (7,417) | (15,351) | (8,008) | (10,587) | (8,600) | (14,286) | (9,034) | (16,265) | (41,363) | (48,185) | (44,859) |
Net Income | $ 11,232 | $ 28,354 | $ 13,479 | $ 18,278 | $ 15,186 | $ 23,329 | $ 14,087 | $ 27,717 | 71,343 | 80,319 | 74,905 |
Other comprehensive income/(loss), net of tax: | |||||||||||
Unrealized (loss) gain on available for sale securities, net of tax | (101) | 81 | 283 | ||||||||
Comprehensive Income | 71,242 | 80,400 | 75,188 | ||||||||
MGE Energy [Member] | |||||||||||
Operating Expenses: | |||||||||||
Other operations and maintenance | 690 | 689 | 613 | ||||||||
Total Operating Expenses | 690 | 689 | 613 | ||||||||
Operating Income (Loss) | (690) | (689) | (613) | ||||||||
Equity in earnings of investments | 71,306 | 81,811 | 76,362 | ||||||||
Other income/(loss), net | 526 | (1,879) | (1,863) | ||||||||
Other interest | 136 | 93 | 55 | ||||||||
Income before income taxes | 71,278 | 79,336 | 73,941 | ||||||||
Income tax provision | 65 | 983 | 964 | ||||||||
Net Income | 71,343 | 80,319 | 74,905 | ||||||||
Other comprehensive income/(loss), net of tax: | |||||||||||
Unrealized (loss) gain on available for sale securities, net of tax | (101) | 81 | 283 | ||||||||
Comprehensive Income | $ 71,242 | $ 80,400 | $ 75,188 |
Schedule I - Condensed Parent99
Schedule I - Condensed Parent Company Finanical Statements (Details-Comprehensive Income Statement Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||
Unrealized (loss) gain on available-for-sale securities, taxes | $ (67) | $ 54 | $ 189 |
MGE Energy [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Unrealized (loss) gain on available-for-sale securities, taxes | $ (67) | $ 54 | $ 189 |
Schedule I - Condensed Paren100
Schedule I - Condensed Parent Company Finanical Statements (Details-Cash Flow Statement) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Flows Provided by (Used for) Operating Activities | $ 141,185 | $ 128,762 | $ 140,267 |
Investing Activities: | |||
Other investing | (230) | (1,297) | (1,205) |
Cash Provided by (Used for) Investing Activities | (73,313) | (96,158) | (121,922) |
Financing Activities: | |||
Cash dividends paid on common stock | (40,043) | (38,429) | (37,107) |
Change in short-term debt | (7,000) | 7,000 | 0 |
Other financing | (1,018) | (130) | (770) |
Cash Provided by (Used for) Financing Activities | (52,243) | (35,662) | 4,111 |
Change in cash and cash equivalents: | 15,629 | (3,058) | 22,456 |
Cash and cash equivalents at beginning of period | 65,755 | 68,813 | 46,357 |
Cash and cash equivalents at end of period | 81,384 | 65,755 | 68,813 |
MGE Energy [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Flows Provided by (Used for) Operating Activities | 37,085 | 48,165 | 53,952 |
Investing Activities: | |||
Other investing | (3,690) | (2,422) | (2,425) |
Cash Provided by (Used for) Investing Activities | (3,690) | (2,422) | (2,425) |
Financing Activities: | |||
Cash dividends paid on common stock | (40,043) | (38,429) | (37,107) |
Other financing | 0 | (89) | (97) |
Cash Provided by (Used for) Financing Activities | (40,043) | (38,518) | (37,204) |
Change in cash and cash equivalents: | (6,648) | 7,225 | 14,323 |
Cash and cash equivalents at beginning of period | 58,429 | 51,204 | 36,881 |
Cash and cash equivalents at end of period | $ 51,781 | $ 58,429 | $ 51,204 |
Schedule I - Condensed Paren101
Schedule I - Condensed Parent Company Finanical Statements (Details-Balance Sheet) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current Assets: | |||||
Cash and cash equivalents | $ 81,384 | $ 65,755 | $ 68,813 | $ 46,357 | |
Accounts receivable, net: | |||||
Other current assets | 10,570 | 10,711 | |||
Total Current Assets | 254,751 | 250,477 | |||
Other deferred assets and other | 5,602 | 4,837 | |||
Investments: | |||||
Other investments | 159 | 159 | |||
Total investments | 73,631 | 71,760 | |||
Total Assets | 1,730,673 | 1,694,184 | [1] | 1,579,060 | |
Current Liabilities: | |||||
Other current liabilities | 4,910 | 13,931 | |||
Total Current Liabilities | 84,146 | 89,996 | |||
Other Credits: | |||||
Deferred income taxes | 360,785 | 338,563 | [1] | ||
Total Other Credits | 565,055 | 549,531 | [1] | ||
Shareholders' Equity: | |||||
Retained income | 339,165 | 308,007 | |||
Other comprehensive income (loss) | 357 | 458 | |||
Total Common Shareholders' Equity | 690,458 | 659,401 | 617,510 | 579,429 | |
Commitments and contingencies (see Footnote 3) | 0 | 0 | |||
Total Liabilities and Capitalization | 1,730,673 | 1,694,184 | [1] | ||
MGE Energy [Member] | |||||
Current Assets: | |||||
Cash and cash equivalents | 51,781 | 58,429 | $ 51,204 | $ 36,881 | |
Accounts receivable, net: | |||||
Accounts receivable from affiliates | 20 | 64 | |||
Other current assets | 1,386 | 2,809 | |||
Total Current Assets | 53,187 | 61,302 | |||
Other deferred assets and other | 249 | 140 | |||
Investments: | |||||
Investments in affiliates | 649,276 | 619,563 | |||
Other investments | 1,447 | 1,177 | |||
Total investments | 650,723 | 620,740 | |||
Total Assets | 704,159 | 682,182 | [1] | ||
Current Liabilities: | |||||
Accounts payable to affiliates | 530 | 7,096 | |||
Accrued taxes | 263 | 663 | |||
Other current liabilities | 144 | 2,601 | |||
Total Current Liabilities | 937 | 10,360 | |||
Other Credits: | |||||
Deferred income taxes | 7,998 | 7,125 | [1] | ||
Accounts payable to affiliates | 4,766 | 5,296 | |||
Total Other Credits | 12,764 | 12,421 | [1] | ||
Shareholders' Equity: | |||||
Common shareholders' equity | 350,936 | 350,936 | |||
Retained income | 339,165 | 308,007 | |||
Other comprehensive income (loss) | 357 | 458 | |||
Total Common Shareholders' Equity | 690,458 | 659,401 | |||
Commitments and contingencies (see Footnote 3) | 0 | 0 | |||
Total Liabilities and Capitalization | $ 704,159 | $ 682,182 | [1] | ||
[1] | Reflects retrospective application of new accounting pronouncement. See Footnote 12 for additional information. |
Schedule I - Condensed Paren102
Schedule I - Condensed Parent Company Finanical Statements (Details-Notes 1) - Line of Credit [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Credit facilities [Line Items] | ||||
Available lines of credit | [1] | $ 150,000 | $ 150,000 | $ 150,000 |
MGE Energy [Member] | MGE Energy unsecured committed revolving line of credit totaling $50 million | ||||
Credit facilities [Line Items] | ||||
Available lines of credit | 50,000 | |||
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 Paren103
Schedule I - Condensed Parent Company Finanical Statements (Details-Notes 2) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | $ 44,708 | $ 47,859 | $ 52,366 |
First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||
Dividend Restrictions | |||
Debt covenant, allowable amount available for payment of dividends | 353,000 | ||
MGE [Member] | |||
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | $ 30,000 | 26,500 | 25,000 |
Dividend Restrictions | |||
Dividend restrictions, minimum common equity ratio | 0.55 | ||
Common equity ratio | 0.597 | ||
Amount available for dividend payments without regulatory approval | $ 43,000 | ||
MGE [Member] | First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||
Dividend Restrictions | |||
Debt covenant, allowable amount available for payment of dividends | 353,000 | ||
MGE Power Elm Road [Member] | |||
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | 10,000 | 13,500 | 17,300 |
MGE Power West Campus [Member] | |||
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | 3,000 | 6,000 | 9,250 |
MGE Transco [Member] | |||
Dividends from Affiliates [Line Items] | |||
Dividends from affiliates | $ 1,708 | $ 1,859 | $ 816 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts [Roll Forward] | |||
Balance at beginning of period | $ 4,748,657 | $ 4,969,711 | $ 4,816,118 |
Charged to costs and expenses | 595,500 | 1,898,300 | 2,373,342 |
Charged to other accounts | 25,500 | 15,092 | 37,200 |
Net accounts written off | (1,675,577) | (2,134,446) | (2,256,949) |
Balance at end of period | $ 3,694,080 | $ 4,748,657 | $ 4,969,711 |