Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 01, 2017 | Jun. 30, 2016 | |
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, 2016 | ||
Amendment Flag | false | ||
Trading Symbol | MGEE | ||
Document Fiscal Year Focus | 2,016 | ||
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 | $ 1,954,670,687 | ||
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Revenues: | |||
Electric revenues | $ 410,202 | $ 420,291 | $ 398,132 |
Gas revenues | 134,543 | 143,737 | 221,720 |
Total Operating Revenues | 544,745 | 564,028 | 619,852 |
Operating Expenses: | |||
Fuel for electric generation | 60,736 | 53,858 | 42,828 |
Purchased power | 56,313 | 81,224 | 73,232 |
Cost of gas sold | 66,771 | 76,109 | 143,644 |
Other operations and maintenance | 167,989 | 164,478 | 161,703 |
Depreciation and amortization | 44,646 | 44,225 | 40,695 |
Other general taxes | 20,062 | 19,879 | 19,652 |
Total Operating Expenses | 416,517 | 439,773 | 481,754 |
Operating Income (Loss) | 128,228 | 124,255 | 138,098 |
Other income, net | 9,711 | 8,613 | 10,079 |
Interest expense, net | (19,866) | (20,162) | (19,673) |
Income before income taxes | 118,073 | 112,706 | 128,504 |
Income tax provision | (42,513) | (41,363) | (48,185) |
Net Income | $ 75,560 | $ 71,343 | $ 80,319 |
Earnings Per Share of Common Stock (basic and diluted) | $ 2.18 | $ 2.06 | $ 2.32 |
Dividends per share of common stock | $ 1.21 | $ 1.16 | $ 1.11 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Operating Revenues: | ||||
Electric revenues | $ 410,202 | $ 420,291 | $ 398,132 | |
Gas revenues | 134,543 | 143,737 | 221,720 | |
Total Operating Revenues | 544,745 | 564,028 | 619,852 | |
Operating Expenses: | ||||
Fuel for electric generation | 60,736 | 53,858 | 42,828 | |
Purchased power | 56,313 | 81,224 | 73,232 | |
Cost of gas sold | 66,771 | 76,109 | 143,644 | |
Other operations and maintenance | 167,989 | 164,478 | 161,703 | |
Depreciation and amortization | 44,646 | 44,225 | 40,695 | |
Other general taxes | 20,062 | 19,879 | 19,652 | |
Total Operating Expenses | 416,517 | 439,773 | 481,754 | |
Operating Income (Loss) | 128,228 | 124,255 | 138,098 | |
Other Income and Deductions: | ||||
Equity earnings in MGE Transco | 8,428 | 7,728 | 9,150 | |
Total Other Income and Deductions | 9,711 | 8,613 | 10,079 | |
Interest Expense: | ||||
Net Interest Expense | 19,866 | 20,162 | 19,673 | |
Net Income | 75,560 | 71,343 | 80,319 | |
MGE [Member] | ||||
Operating Revenues: | ||||
Electric revenues | 410,226 | 420,313 | 398,154 | |
Gas revenues | 134,572 | 143,752 | 221,741 | |
Total Operating Revenues | 544,798 | 564,065 | 619,895 | |
Operating Expenses: | ||||
Fuel for electric generation | 60,745 | 53,866 | 42,836 | |
Purchased power | 56,327 | 81,237 | 73,245 | |
Cost of gas sold | 66,800 | 76,124 | 143,665 | |
Other operations and maintenance | 167,077 | 163,622 | 160,831 | |
Depreciation and amortization | 44,622 | 44,178 | 40,648 | |
Other general taxes | 20,062 | 19,879 | 19,652 | |
Income tax provision | 39,616 | 38,159 | 45,090 | |
Total Operating Expenses | 455,249 | 477,065 | 525,967 | |
Operating Income (Loss) | [1] | 89,549 | 87,000 | 93,928 |
Other Income and Deductions: | ||||
AFUDC - equity funds | 1,207 | 712 | 3,466 | |
Equity earnings in MGE Transco | 6,366 | 7,728 | 9,150 | |
Income tax provision | (2,175) | (3,247) | (4,055) | |
Other deductions, net | (217) | (345) | (704) | |
Total Other Income and Deductions | [1] | 5,181 | 4,848 | 7,857 |
Income before interest expense | 94,730 | 91,848 | 101,785 | |
Interest Expense: | ||||
Interest on long-term debt | 20,351 | 20,520 | 20,927 | |
Other interest, net | 182 | 94 | 62 | |
AFUDC - borrowed funds | (395) | (231) | (1,142) | |
Net Interest Expense | 20,138 | 20,383 | 19,847 | |
Net Income Including Noncontrolling Interest | 74,592 | 71,465 | 81,938 | |
Less Net Income Attributable to Noncontrolling Interest, net of tax | (23,358) | (26,097) | (26,310) | |
Net Income | $ 51,234 | $ 45,368 | $ 55,628 | |
[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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Other Comprehensive Income [Abstract] | |||||||||||
Net Income | $ 14,502 | $ 27,880 | $ 16,150 | $ 17,028 | $ 11,232 | $ 28,354 | $ 13,479 | $ 18,278 | $ 75,560 | $ 71,343 | $ 80,319 |
Other comprehensive income, net of tax: | |||||||||||
Unrealized (loss) gain on available for sale securities, net of tax | (155) | (101) | 81 | ||||||||
Comprehensive Income | $ 75,405 | $ 71,242 | $ 80,400 |
Madison Gas and Electric Compa5
Madison Gas and Electric Company Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other comprehensive income, net of tax: | |||
Unrealized (loss) gain on available for sale securities, net of tax | $ (155) | $ (101) | $ 81 |
Comprehensive Income | 75,405 | 71,242 | 80,400 |
MGE [Member] | |||
Net Income | 74,592 | 71,465 | 81,938 |
Other comprehensive income, net of tax: | |||
Unrealized (loss) gain on available for sale securities, net of tax | (4) | (121) | (48) |
Comprehensive Income Including Noncontrolling Interest | 74,588 | 71,344 | 81,890 |
Less: Comprehensive Income Attributable to Noncontrolling Interest, net of tax | (23,358) | (26,097) | (26,310) |
Comprehensive Income | $ 51,230 | $ 45,247 | $ 55,580 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unrealized (loss) gain on available-for-sale securities, taxes | $ (104) | $ (67) | $ 54 |
MGE [Member] | |||
Unrealized (loss) gain on available-for-sale securities, taxes | $ (2) | $ (81) | $ (33) |
MGE Energy Inc Consolidated St7
MGE Energy Inc Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | |||
Net Income | $ 75,560 | $ 71,343 | $ 80,319 |
Items not affecting cash: | |||
Depreciation and amortization | 44,646 | 44,225 | 40,695 |
Deferred income taxes | 22,421 | 21,927 | 49,884 |
Provision for doubtful receivables | 1,196 | 596 | 1,898 |
Employee benefit plan expenses | 295 | 3,333 | (1,080) |
Equity earnings in ATC | (8,428) | (7,728) | (9,150) |
Other items | 1,426 | 721 | 729 |
Changes in working capital items: | |||
Trade and other receivables (change) | (5,666) | 4,508 | 2,115 |
Inventories (change) | 7,273 | (2,646) | (10,399) |
Unbilled revenues (change) | (4,838) | 6,254 | 720 |
Prepaid taxes (change) | 8,616 | 3,658 | (19,804) |
Other current assets (change) | 700 | 978 | (5,693) |
Accounts payable (change) | 9,881 | (3,499) | 2,756 |
Other current liabilities (change) | (1,738) | (597) | (4,195) |
Dividend income from ATC | 7,926 | 6,645 | 7,740 |
Cash contributions to pension and other postretirement plans | (14,452) | (13,676) | (3,321) |
Other noncurrent items, net | 2,695 | 5,143 | (4,452) |
Cash Provided by Operating Activities | 147,513 | 141,185 | 128,762 |
Investing Activities: | |||
Capital expenditures | (83,659) | (72,030) | (92,676) |
Capital contributions to investments | (2,958) | (1,053) | (2,185) |
Other investing | (209) | (230) | (1,297) |
Cash Used for Investing Activities | (86,826) | (73,313) | (96,158) |
Financing Activities: | |||
Cash dividends paid on common stock | (41,775) | (40,043) | (38,429) |
Repayment of long-term debt | (4,267) | (4,182) | (4,103) |
(Decrease) increase in short-term debt | 0 | (7,000) | 7,000 |
Other financing | (70) | (1,018) | (130) |
Cash Used for Financing Activities | (46,112) | (52,243) | (35,662) |
Change in cash and cash equivalents: | 14,575 | 15,629 | (3,058) |
Cash and cash equivalents at beginning of period | 81,384 | 65,755 | 68,813 |
Cash and cash equivalents at end of period | 95,959 | 81,384 | 65,755 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 19,415 | 19,636 | 20,478 |
Income taxes paid | 21,831 | 23,800 | 19,579 |
Income taxes received | (10,000) | (10,130) | (644) |
Significant noncash investing activities: | |||
Accrued capital expenditures | $ 16,376 | $ 3,963 | $ 1,569 |
Madison Gas and Electric Compa8
Madison Gas and Electric Company Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Items not affecting cash: | |||
Depreciation and amortization | $ 44,646 | $ 44,225 | $ 40,695 |
Deferred income taxes | 22,421 | 21,927 | 49,884 |
Provision for doubtful receivables | 1,196 | 596 | 1,898 |
Employee benefit plan expenses | 295 | 3,333 | (1,080) |
Equity earnings in MGE Transco | (8,428) | (7,728) | (9,150) |
Other items | 1,426 | 721 | 729 |
Changes in working capital items: | |||
Trade and other receivables (change) | (5,666) | 4,508 | 2,115 |
Inventories (change) | 7,273 | (2,646) | (10,399) |
Unbilled revenues (change) | (4,838) | 6,254 | 720 |
Prepaid taxes (change) | 8,616 | 3,658 | (19,804) |
Other current assets (change) | 700 | 978 | (5,693) |
Accounts payable (change) | 9,881 | (3,499) | 2,756 |
Other current liabilities (change) | (1,738) | (597) | (4,195) |
Dividend income from MGE Transco | 7,926 | 6,645 | 7,740 |
Cash contributions to pension and other postretirement plans | (14,452) | (13,676) | (3,321) |
Other noncurrent items, net | 2,695 | 5,143 | (4,452) |
Cash Provided by Operating Activities | 147,513 | 141,185 | 128,762 |
Investing Activities: | |||
Capital expenditures | (83,659) | (72,030) | (92,676) |
Capital contributions to MGE Transco | (2,958) | (1,053) | (2,185) |
Other investing | (209) | (230) | (1,297) |
Cash Used for Investing Activities | (86,826) | (73,313) | (96,158) |
Financing Activities: | |||
Repayment of long-term debt | (4,267) | (4,182) | (4,103) |
(Decrease) increase in short-term debt | 0 | (7,000) | 7,000 |
Other financing | (70) | (1,018) | (130) |
Cash Used for Financing Activities | (46,112) | (52,243) | (35,662) |
Change in cash and cash equivalents: | 14,575 | 15,629 | (3,058) |
Cash and cash equivalents at beginning of period | 81,384 | 65,755 | 68,813 |
Cash and cash equivalents at end of period | 95,959 | 81,384 | 65,755 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 19,415 | 19,636 | 20,478 |
Income taxes paid | 21,831 | 23,800 | 19,579 |
Income taxes received | (10,000) | (10,130) | (644) |
Significant noncash investing activities: | |||
Accrued capital expenditures | 16,376 | 3,963 | 1,569 |
MGE [Member] | |||
Operating Activities: | |||
Net Income | 74,592 | 71,465 | 81,938 |
Items not affecting cash: | |||
Depreciation and amortization | 44,622 | 44,178 | 40,648 |
Deferred income taxes | 20,876 | 18,843 | 49,603 |
Provision for doubtful receivables | 1,196 | 596 | 1,898 |
Employee benefit plan expenses | 295 | 3,333 | (1,080) |
Equity earnings in MGE Transco | (6,366) | (7,728) | (9,150) |
Other items | 1,954 | 1,223 | 1,280 |
Changes in working capital items: | |||
Trade and other receivables (change) | (3,583) | 11,079 | (4,455) |
Inventories (change) | 7,273 | (2,647) | (10,398) |
Unbilled revenues (change) | (4,838) | 6,254 | 720 |
Prepaid taxes (change) | 8,481 | 4,824 | (15,169) |
Other current assets (change) | 699 | 976 | (5,693) |
Accounts payable (change) | 9,941 | (3,587) | 2,741 |
Accrued interest and taxes (change) | 419 | (18) | (1,001) |
Other current liabilities (change) | (2,137) | 1,885 | (3,144) |
Dividend income from MGE Transco | 5,032 | 6,645 | 7,740 |
Cash contributions to pension and other postretirement plans | (14,452) | (13,677) | (3,321) |
Other noncurrent items, net | 2,497 | 4,816 | (4,619) |
Cash Provided by Operating Activities | 146,501 | 148,460 | 128,538 |
Investing Activities: | |||
Capital expenditures | (83,659) | (72,030) | (92,676) |
Capital contributions to MGE Transco | (1,598) | (710) | (1,775) |
Other investing | (391) | (180) | (1,146) |
Cash Used for Investing Activities | (85,648) | (72,920) | (95,597) |
Financing Activities: | |||
Cash dividends paid to parent by MGE | (50,000) | (30,000) | (26,500) |
Distributions to parent from noncontrolling interest | (24,113) | (14,708) | (21,359) |
Equity contribution received by noncontrolling interest | 1,598 | 3,230 | 1,775 |
Repayment of long-term debt | (4,267) | (4,182) | (4,103) |
(Decrease) increase in short-term debt | 0 | (7,000) | 7,000 |
Other financing | (63) | (682) | 0 |
Cash Used for Financing Activities | (76,845) | (53,342) | (43,187) |
Change in cash and cash equivalents: | (15,992) | 22,198 | (10,246) |
Cash and cash equivalents at beginning of period | 26,760 | 4,562 | 14,808 |
Cash and cash equivalents at end of period | 10,768 | 26,760 | 4,562 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 19,415 | 19,636 | 20,478 |
Income taxes paid | 29 | 29 | 67 |
Income taxes received | 0 | 0 | (644) |
Significant noncash investing activities: | |||
Accrued capital expenditures | 16,376 | 3,963 | 1,569 |
Dividend in kind to parent | $ 15,822 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Current Assets: | |||
Cash and cash equivalents | $ 95,959 | $ 81,384 | |
Accounts receivable, less reserves | 39,887 | 37,112 | |
Other accounts receivables, less reserves | 8,530 | 7,477 | |
Unbilled revenues | 29,846 | 25,008 | |
Materials and supplies, at average cost | 18,561 | 19,155 | |
Fossil fuel, at average cost | 9,757 | 13,110 | |
Stored natural gas, at average cost | 12,819 | 16,145 | |
Prepaid taxes | 26,636 | 35,252 | |
Regulatory assets - current | 6,414 | 9,538 | |
Assets held for sale | 14,813 | 0 | |
Other current assets | 12,293 | 10,570 | |
Total Current Assets | 275,515 | 254,751 | |
Other long-term receivables | 5,603 | 5,045 | |
Regulatory assets | 158,485 | 148,199 | |
Pension and other postretirement benefit asset | 2,020 | 0 | |
Other deferred assets and other | 1,088 | 1,332 | [1] |
Property, Plant, and Equipment: | |||
Property, plant, and equipment, net | 1,245,269 | 1,217,094 | |
Construction work in progress | 36,790 | 26,351 | |
Total Property, Plant, and Equipment | 1,282,059 | 1,243,445 | |
Investments | 76,290 | 73,631 | |
Total Assets | 1,801,060 | 1,726,403 | [1] |
Current Liabilities: | |||
Long-term debt due within one year | 4,333 | 4,266 | |
Accounts payable | 47,799 | 40,830 | |
Accrued interest and taxes | 5,495 | 5,067 | |
Accrued payroll related items | 11,892 | 11,215 | |
Regulatory liabilities - current | 6,910 | 9,515 | |
Derivative liabilities | 7,620 | 8,343 | |
Other current liabilities | 19,456 | 4,910 | |
Total Current Liabilities | 103,505 | 84,146 | |
Other Credits: | |||
Deferred income taxes | 383,813 | 360,785 | |
Investment tax credit - deferred | 947 | 1,050 | |
Regulatory liabilities | 22,173 | 20,785 | |
Accrued pension and other postretirement benefits | 74,347 | 75,680 | |
Derivative liabilities | 42,970 | 44,935 | |
Other deferred liabilities and other | 66,426 | 61,820 | |
Total Other Credits | 590,676 | 565,055 | |
Common shareholders' equity: | |||
Common stock | 34,668 | 34,668 | |
Additional paid-in capital | 316,268 | 316,268 | |
Retained earnings | 372,950 | 339,165 | |
Accumulated other comprehensive income, net of tax | 202 | 357 | |
Total Common Shareholders' Equity | 724,088 | 690,458 | |
Long-term debt | 382,791 | 386,744 | [1] |
Total Capitalization | 1,106,879 | 1,077,202 | |
Commitments and contingencies (see Footnote 17) | |||
Total Liabilities and Capitalization | 1,801,060 | 1,726,403 | [1] |
MGE [Member] | |||
Current Assets: | |||
Cash and cash equivalents | 10,768 | 26,760 | |
Accounts receivable, less reserves | 39,887 | 37,112 | |
Affiliate receivables | 539 | 542 | |
Other accounts receivables, less reserves | 6,363 | 7,390 | |
Unbilled revenues | 29,846 | 25,008 | |
Materials and supplies, at average cost | 18,561 | 19,155 | |
Fossil fuel, at average cost | 9,757 | 13,110 | |
Stored natural gas, at average cost | 12,819 | 16,145 | |
Prepaid taxes | 25,798 | 34,279 | |
Regulatory assets - current | 6,414 | 9,538 | |
Assets held for sale | 14,813 | 0 | |
Other current assets | 12,268 | 10,544 | |
Total Current Assets | 187,833 | 199,583 | |
Affiliate receivable long-term | 4,236 | 4,766 | |
Regulatory assets | 158,485 | 148,199 | |
Pension and other postretirement benefit asset | 2,020 | 0 | |
Other deferred assets and other | 4,353 | 4,216 | [1] |
Property, Plant, and Equipment: | |||
Property, plant, and equipment, net | 1,244,648 | 1,216,415 | |
Construction work in progress | 36,790 | 26,351 | |
Total Property, Plant, and Equipment | 1,281,438 | 1,242,766 | |
Investments | 487 | 69,984 | |
Total Assets | 1,638,852 | 1,669,514 | [1] |
Current Liabilities: | |||
Long-term debt due within one year | 4,333 | 4,266 | |
Accounts payable | 47,790 | 40,742 | |
Accrued interest and taxes | 5,440 | 5,021 | |
Accrued payroll related items | 11,892 | 11,215 | |
Regulatory liabilities - current | 6,910 | 9,515 | |
Derivative liabilities | 7,620 | 8,343 | |
Other current liabilities | 19,347 | 4,791 | |
Total Current Liabilities | 103,332 | 83,893 | |
Other Credits: | |||
Deferred income taxes | 343,117 | 352,626 | |
Investment tax credit - deferred | 947 | 1,050 | |
Regulatory liabilities | 22,173 | 20,785 | |
Accrued pension and other postretirement benefits | 74,347 | 75,680 | |
Derivative liabilities | 42,970 | 44,935 | |
Other deferred liabilities and other | 66,426 | 61,817 | |
Total Other Credits | 549,980 | 556,893 | |
Common shareholders' equity: | |||
Common stock | 17,348 | 17,348 | |
Additional paid-in capital | 192,417 | 192,417 | |
Retained earnings | 277,300 | 291,888 | |
Accumulated other comprehensive income, net of tax | 19 | 23 | |
Total Common Shareholders' Equity | 487,084 | 501,676 | |
Noncontrolling interest | 115,665 | 140,308 | |
Total Equity | 602,749 | 641,984 | |
Long-term debt | 382,791 | 386,744 | [1] |
Total Capitalization | 985,540 | 1,028,728 | |
Commitments and contingencies (see Footnote 17) | |||
Total Liabilities and Capitalization | $ 1,638,852 | $ 1,669,514 | [1] |
[1] | Reflects retrospective application of new accounting pronouncement. See Footnote 19 for additional information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables, Net | ||
Reserve for uncollectible accounts receivable | $ 3,017 | $ 3,052 |
Reserve for uncollectible other accounts receivable | $ 426 | $ 642 |
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 | $ 3,017 | $ 3,052 |
Reserve for uncollectible other accounts receivable | $ 426 | $ 642 |
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, 2013 | 34,668 | ||||
Beginning 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 |
Increase (Decrease) in Common Equity [Roll Forward] | |||||
Cumulative effect of new accounting principle | (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 |
Increase (Decrease) in Common Equity [Roll Forward] | |||||
Net Income | 75,560 | 75,560 | |||
Other comprehensive income (loss) | (155) | (155) | |||
Common stock dividends declared | (41,775) | (41,775) | |||
Ending balance, shares at Dec. 31, 2016 | 34,668 | ||||
Ending balance, value at Dec. 31, 2016 | $ 724,088 | $ 34,668 | $ 316,268 | $ 372,950 | $ 202 |
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, 2013 | 34,668 | 17,348 | |||||||||
Beginning 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 | (26,500) | (26,500) | |||||||||
Dividend in kind to parent | 0 | ||||||||||
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 | |||||
Increase (Decrease) in Common Equity [Roll Forward] | |||||||||||
Cumulative effect of new accounting principle | (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 | (30,000) | (30,000) | |||||||||
Dividend in kind to parent | 0 | ||||||||||
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 | |||||
Increase (Decrease) in Common Equity [Roll Forward] | |||||||||||
Net Income | 74,592 | 51,234 | 23,358 | ||||||||
Other comprehensive income (loss) | $ (155) | (4) | $ (155) | (4) | |||||||
Cash dividends paid to parent by MGE | (50,000) | [1] | (50,000) | ||||||||
Dividend in kind to parent | (15,822) | (15,822) | |||||||||
Equity contribution received by noncontrolling interest | 1,598 | 1,598 | |||||||||
Distributions to parent from noncontrolling interest | (24,113) | (24,113) | |||||||||
Deconsolidation of noncontrolling interest | (25,486) | (25,486) | |||||||||
Ending balance, shares at Dec. 31, 2016 | 34,668 | 17,348 | |||||||||
Ending balance, value at Dec. 31, 2016 | $ 602,749 | $ 17,348 | $ 192,417 | $ 277,300 | $ 19 | $ 115,665 | |||||
[1] | Excludes $15.8 million dividend in kind to MGE Energy from MGE. |
Consolidated Statements of Comm
Consolidated Statements of Common Equity (Parentheticals) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Dividends per share of common stock | $ 0.308 | $ 0.308 | $ 0.295 | $ 0.295 | $ 0.295 | $ 0.295 | $ 0.283 | $ 0.283 | $ 1.21 | $ 1.16 | $ 1.11 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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. Additional wholly owned subsidiaries of MGE Energy include CWDC, MAGAEL, MGE Power, MGE State Energy Services, MGE Services, MGE Transco, MGEE Transco, and NGV Fueling Services. MGE Power owns 100 % of MGE Power Elm Road and MGE Power West Campus. MGE Power and its subsidiaries are part of MGE Energy's nonregulated energy operations, which were formed to own and lease electric generation projects to assist MGE. MGE Transco and MGEE Transco are nonregu lated entities formed to manage the investments in ATC and ATC Holdco, respectively. On December 1, 2016, MGE ' s ownership interest in MGE Transco was transferred to MGE Energy. See Footnote 4 for further discussion of the transfer of MGE ' s investment in MG E Transco. MGE Energy and MGE consolidate variable interest entities (VIEs) for which it is the primary beneficiary. Variable interest entities are legal entities that possess any of the following characteristics: equity investors who have an insufficient amount of equity at risk to finance their activities, equity owners who do not have the power to direct the significant activities of the entity (or have voting rights that are disproportionate to their ownership interest), or equity holders who do not re ceive expected losses or returns significant to the VIE. If MGE Energy or MGE is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, all relevant facts and circumstances are considered, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the exp ected 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 en tities 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. Prior to December 1, 2016, MGE Transco was jointly owned by MGE Energy and MGE. MGE's ownership interest in MGE Transco declined below a majority in July 2016. As a result of the change in majority ownership, MGE deconsolidated MGE Energy's proportionate share of the equity in MGE Transco. See Footnote 8 for further discussion regarding th e deconsolidation of noncontrolling interest . The consolidated financial statements reflect the application of certain accounting policies described in this note. All significant intercompany accounts and transactions have been eliminated in consolidatio n. 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. Cash Equivalents MGE Energy and MGE consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Restricted Cash MGE has certain cash accounts that are restricted to uses other than current operations and designated for a specific purpose. MGE's restricted cash accounts include cash held by trustees for certain employee benefits and cash deposits held by third parties. As of December 31, 2016 and 2015 , there was $ 3.7 million and $ 2.9 million, respectively, of cash deposits held by third parties. These are included in "Other current assets" on the consolidated bal ance sheets. Receivable – Margin Account Cash amounts held by counterparties as margin for certain financial transactions are recorded as receivable – margin account in "Other current assets" on the consolidated balance sheets. As of December 31, 2016 and 2015 , the receivable – margin account balance of $ 1.3 million and $ 2.3 million, respectively, is shown net of any collateral posted against derivative positions. As of December 31, 2016 , no cash collateral was posted against derivative positions. As of December 31, 2015 , there was $ 1.0 million of collateral posted against derivative positions. Changes in this cash account are considered cash f l ows 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. e. 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 concentration and the related credit risk through its credit and collection pol icies, which are consistent with state regulatory requirements. f. 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 balance as of December 31, 2016 and 2015 , was $ 0.3 million. g. 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, 2017. 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, 2016 , approximate the fair value of the energy-related equipment acting as collateral. MGE accounts for these agreements as secured borrowings. As of December 31, 2016 , the remaining contractual maturities of the chattel paper agreements were as follows: (In thousands) 2017 2018 2019 2020 2021 Thereafter Repurchase-to-Maturity Transactions: Loans $ 559 $ 620 $ 595 $ 568 $ 432 $ 1,121 h . Regulatory Assets and Liabilities - MGE Energy and MGE. Regulatory assets and regulatory liabilities are recorded consistent with regulatory treatment. Regulatory assets represent costs which are deferred due to the probable future recovery from customers through regulated rates. Regulatory liabilities represent the excess recovery of costs or accrued credits which were deferred because MGE believes it is probable such amounts will be returned to customers through future regulated rates. 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. i. Debt Issuance Costs - MGE Energy and MGE. Premiums, discounts, and expenses incurred with the issuance of outstanding long-term debt are amortized over the life of the debt issue. Any call premiums or unamortized expenses associated with refinancing higher-cost debt obligations used to finance utility-regulated assets and operations are amortized consistent with regulatory treatment of those items. These costs are included as a direct deduction to the related debt liability on the consolidated balance sheets . j . Property, Plant, and Equipment - MGE Energy and MGE. Property, plant, and equipment is recorded at original cost. Cost includes indirect costs consisting of payroll taxes, pensions, postretirement benefits, other fringe benefits, and administrative and general costs. Also, included in the cost is AFUDC for utility property and capitalized interest for nonregulated property. Additions for significant replacements of property are charged to property, plant, and equipment at cost; and minor items are 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: 2016 2015 2014 Electric (a) 2.5 % 2.6 % 2.6 % Gas (a) 2.1 % 1.7 % 1.7 % Nonregulated 2.3 % 2.4 % 2.4 % (a ) In December 2015, the PSCW approved new depreciation rates, which were implemented and became effective as of January 1, 2016. k. Asset Retirement Obligations - MGE Energy and MGE. MGE Energy and MGE are required to record a liability for the fair value of an ARO to be recognized in the period in which it is incurred if it can be reasonably estimated. The offsetting associated asset retirement costs are capitalized as a long-lived asset and depreciated over the asset ' s useful life. The expected present value technique used to calculate the fair value of ARO liabilities includes assumptions about costs, probabilities, settlement dates, interest accretion, and inflation. Revisions to the assumptions, including the timing or amount of expected asset retirement costs, could result in increases or decreases to the AROs. All asset retirement obligations are recorded as "O ther long-term liabilities " on the 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 18 f or further information. l . Repairs and Maintenance Expense - MGE Energy and MGE. MGE utilizes the direct expensing method for planned major maintenance projects. Under this method, MGE expenses all costs associated with major planned maintenance activities as incurred. m. Purchased Gas Adjustment Clause - MGE Energy and MGE. MGE's natural gas rates are subject to a fuel adjustment clause designed to recover or refund the difference between the actual cost of purchased gas and the amount included in rates. Differences between the amounts billed to customers and the actual costs recoverable are deferred and recovered or refunded in future periods by means of prospective monthly adjustments to rates. At December 31, 2016 and 2015 , MGE had over collected $ 0.9 million and $ 0.8 million, res pectively. These amounts are included in "Regulatory liabilities - current" on the consolidated balance sheets. n . Revenue Recognition - MGE Energy and MGE. Operating revenues are recorded as service is rendered or energy is delivered to customers. Meters are read on a systematic basis throughout the month based on established meter-reading schedules. At the end of the month, MGE accrues an estimate for the unbilled amount of energy delivered to customers. The unbilled revenue estimate is based on daily system demand volumes, weather factors, estimated line losses, estimated customer usage by class, and applicable customer rates. o. Utility Cost Recovery - MGE Energy and MGE. MGE ' s rates include a provision for fuel costs. The PSCW allows Wisconsin utilities to defer electric fuel-related costs, less excess revenues, that fall outside a symmetrical cost tolerance band. Any over/under recovery of the actual costs in a year is determined in the following year and is then reflected 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 16.b. for further information regarding the regulatory rules applicable to the recovery of electric fuel costs. p. Regional Transmission Organizations - MGE Energy and MGE. MGE reports on a net basis transactions on the MISO markets in which it buys and sells power within the same hour to meet electric energy delivery requirements. This treatment resulted in a $ 77.2 million , a $ 68.6 million, and a $ 91.1 million reduction to sales to the market and purchase power expense for MISO markets for the years ended December 31, 2016 , 2015 , and 2014 , r espectively. 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 both 2016 and 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 2014 , MGE ca pitalized AFUDC-debt and equity on 50 % of applicable average construction work in progress at 8.21 % . For 2016 , 2015 , and 2014 , MGE received specific approval to recover 100 % AFUDC on certain environmental costs for Columbia. These amounts are recovered under the ratemaking process over the service lives of the related properties. 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 $ 12.3 million and $ 12.0 million at December 31, 2016 and 2015 , respectively. During 2016 , 2015 , and 2014 , MGE recorded $ 3.0 million, $ 2.2 million, and $ 1.6 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 recognize an impairment loss if the sum of the expected future cash flows (undiscounted and without interest charges) from an asset are less than the carrying amount of that asset. If an impairment loss is recognized, the amount that will be recorded will be measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. There is no impairment of lo ng-lived assets at December 31, 2016 , 2015 , and 2014 . 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 $ 14.5 million, $ 14.7 million, and $ 14.6 million for the years ended December 31, 2016 , 2015 , and 2014 , respectivel y. 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 plans. MGE Energy and MGE initially measure the cost of the employee or director services received in exchange for a performance unit award based on the current market value of MGE Energy common stock. The fair value of the award is subsequently re-measured at each reporting date through the settlement date. Changes in fair value 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, 2016 | |
Variable Interest Entities Disclosure [Abstract] | |
Variable Interest Entities | Variable Interest Entities - MGE Energy and MGE. a. MGE Power Elm Road. MGE Power Elm Road is not a subsidiary of MGE; however, it has been consolidated in the financial statements of MGE. MGE Power Elm Road was created for the purpose of owning new generating assets. Its sole principal assets are an undivided ownership interest in two coal-fired generating plants located in Oak Creek, Wisconsin, which it leases to MGE pursuant to long-term leases. Based on the nature and terms of the contractual agre ements, MGE is expected to absorb a majority of the expected losses, r esidual 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 Po wer Elm Road. MGE Energy and MGE consolidate VIEs for which they are the primary beneficiary. MGE has the power to direct the activities that most significantly impact the Elm Road Units ' economic performance and is also the party most closely associated w ith 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) 2016 2015 Property, plant, and equipment, net $ 175,502 $ 177,904 Construction work in progress 3,241 2,400 Deferred income taxes 42,525 40,865 Long-term debt 62,021 64,622 Noncontrolling interest 80,362 79,113 Long-term debt excluding debt issuance costs consists of $ 62.6 m illion at December 31, 2016 , 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 f or 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 f or use of the Elm Road Units pursuant to the related long-term lease s . As of December 31, 2016 , M GE 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 m illion. MGE collected 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. Th e 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, M GE has included the following significant ac counts on its consolidated balance sheets related to its interest in this VIE: (In thousands) 2016 2015 Property, plant, and equipment, net $ 81,588 $ 84,403 Affiliate receivables 4,769 5,295 Deferred income taxes 19,912 19,612 Long-term debt 44,932 46,510 Noncontrolling interest 35,303 37,603 Long-term debt excluding debt issuance costs consists of $ 45.1 million at December 31, 2016 , o f senior secured notes that require that MGE Power West Campus maintain a projected debt service coverage ratio of not less than 1.25 to 1.00 and debt to total capitalization ratio of not more than 0.65 to 1.00 . The debt is secured by a collateral assignment of lease payments that MGE is making to MGE Power West Campus for use of the cogeneration facility pursuant to the long-term lease. As of December 31, 2016 , MGE Power West Campus is in compliance with the covenant requirements. MGE has been and will continue to recover lease payments made to MGE Power West Campus in rates. Also, MGE received approval from t he 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 in 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 covered by the agreements. As of December 31, 2016 and 2015 , MGE had 51 megawatts and 61 megawatts , respectively, of capacity available under these agreements. MGE evaluated the variable interest entities for possible consolidation. The interest holder is considered the primary beneficiary of the entity and is required to consolidate the entity if the interest holder has the power to direct the activities that most significantly impact the economics of the variable interest entity. MGE examined qualitative factors such as the length of the remaining term of the contracts co mpared with the remaining lives of the plants, who has the power to direct the operations and maintenance of the facilities, and other factors, and determined MGE is not the primary beneficiary of the variable interest entities. There is not a significant potential exposure to loss as a result of involvement with these variable interest entities. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2016 2015 Utility: Electric (a) $ 1,171,004 $ 1,147,701 $ 1,171,021 $ 1,147,718 Gas 395,790 384,163 395,801 384,175 Total utility plant 1,566,794 1,531,864 1,566,822 1,531,893 Less: Accumulated depreciation and amortization (a) 579,965 578,410 579,965 578,410 In-service utility plant, net 986,829 953,454 986,857 953,483 Nonregulated: Nonregulated 317,810 315,589 317,014 314,750 Less: Accumulated depreciation and amortization 59,370 51,949 59,223 51,818 In-service nonregulated plant, net 258,440 263,640 257,791 262,932 Construction work in progress: Utility construction work in progress (a) 31,356 23,837 31,356 23,837 Nonregulated construction work in progress 5,434 2,514 5,434 2,514 Total property, plant, and equipment $ 1,282,059 $ 1,243,445 $ 1,281,438 $ 1,242,766 (a ) As of December 31, 2016 , MGE has classified $ 14.8 million of Columbia assets as held-for-sale on the consolidated balance sheets related to the partial sale of plant assets to WPL . See Footnote 5.a. for further discussion. MGE's utility plant is subject to the lien of its Indenture of Mortgage and Deed of Trust. As of December 31, 2016 and 2015 , there was $ 1.2 million of bonds outstanding under that indenture. See Footnote 9 for further disc us sion of the mortgage indenture. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2016 2015 Available for sale securities: Cost basis $ 2,216 $ 2,225 $ 455 $ 480 Gross unrealized gains 346 599 40 40 Gross unrealized losses (8) (2) (8) (2) Fair value 2,554 2,822 487 518 Equity method investments: ATC and ATC Holdco (a) 72,458 69,466 - 69,466 Other 1,158 1,184 - - Total equity method investments 73,616 70,650 - 69,466 Other investments 120 159 - - Total $ 76,290 $ 73,631 $ 487 $ 69,984 (a) MGE Transco holds an ownership interest in ATC, and MGEE Transco holds an ownership interest in ATC Holdco. In July 2016, MGE's ownership interest in MGE Transco declined below a majority, resulting in MGE Energy's investment in MGE Transco being deconsolidated from MGE's consolidated financial statements. See Footnote 8 for further discussion of noncontrolling interest. In December 2016, MGE's ownership interest in MGE Transco was transferred to MGE Energy, see "ATC and ATC Holdco" below f or additional information. 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, 2016 , 2015 , and 2014 , certain inves tments were liquidated. As a result of these liquidations, MGE Energy and MGE received the following: MGE Energy MGE (In thousands) 2016 2015 2014 2016 2015 2014 Cash proceeds $ 408 $ 19 $ 38 $ 16 $ 19 $ - Gain (loss) on sale 121 10 21 (8) 10 - b. ATC and ATC Holdco. 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 Wiscons in law. That interest is presently held by MGE Transco, which, as of December 1, 2016, is owned by MGE Energy. ATC Holdco was formed by several members of ATC, including MGE Energy, to pursue electric transmission development and investments outsid e of Wisconsin. The ownership interest in ATC Holdco is held by MGEE Transco, a wholly-owned subsidiary of MGE Energy. MGE Transco and MGEE Transco have accounted for their investment in ATC and ATC Holdco, respectively, under the equity method of account ing. For the years ended December 31, 2016 , 2015 , and 2014 , MGE Transco recorded the following: (In thousands) 2016 2015 2014 Equity earnings from investment in ATC $ 8,670 $ 7,728 $ 9,150 Dividends received from ATC (a) 7,926 6,645 7,740 Capital contributions to ATC 2,486 710 1,775 (a ) As of December 31, 2016, MGE Transco recorded a $2.1 million receivable from ATC for a cash dividend received in January 2017. ATC Holdco's activities commenced in late December 2016 and had an immaterial impact on results of operations, cash flows, and financial condition. At December 31, 2016 and 2015 , MGE Transco held a 3.6 % ownership interest in ATC. At December 31, 2016 , MGEE Transco held a 4.0 % ownership interest in ATC Holdco. On January 3 1, 2017 , MGE Transco made a $ 1.4 million capital contribution to ATC , and on January 10, 2017 , MGEE Transco made a $ 0.2 million capital contribution to ATC Holdco. In June 2016, the PSCW required M GE to transfer its interest in ATC to MGE Energy, which was to be completed by December 31, 2022. The re quirement arose in the context of requests for regulatory approvals by several owners of ATC in connection with a reorganization of ATC . MGE ' s ownership interest in ATC , held through MGE Transco, was transferred net of deferred tax liabilities to MGE Energy by way of a dividend in kind of $ 15.8 m illion as of December 1, 2016. As a result of the transfer, MGE's ownership interest in MGE Transco was completely eliminated in favor of MGE Energy. See Footnote 12 for further discussion of the transfer of deferred tax liabilities. The change had no effect on M GE Energy's consolidated financial statements. ATC's summarized financial data for the years ended December 31, 2016 , 2015 , and 2014 is as follows: (In thousands) Income statement data for the year ended December 31, 2016 2015 2014 Operating revenues $ 650,806 $ 615,836 $ 635,033 Operating expenses (322,517) (319,321) (307,451) Other income 3,225 1,176 117 Interest expense, net (98,758) (97,250) (88,970) Earnings before members' income taxes $ 232,756 $ 200,441 $ 238,729 Balance sheet data as of December 31, 2016 2015 Current assets $ 75,790 $ 80,520 Noncurrent assets 4,312,893 3,948,265 Total assets $ 4,388,683 $ 4,028,785 Current liabilities $ 495,126 $ 330,248 Long-term debt 1,865,302 1,790,718 Other noncurrent liabilities 271,495 244,991 Members' equity 1,756,760 1,662,828 Total members' equity and liabilities $ 4,388,683 $ 4,028,785 |
Joint Plant Ownership
Joint Plant Ownership | 12 Months Ended |
Dec. 31, 2016 | |
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, at December 31, 2016 , accounts for 30 % ( 225 MW) of MGE's net summer rated capacity. Power from this facility is shared in proportion to each company's ownership interest. At December 31, 2016 , MGE ha d a 22.0 % ownership interest in Columbia. The other o wners a re WPL , which operates Columbia, and WPSC. MGE's share of fuel, operating, and maintenanc e expenses for Columbia was $ 39.5 m illion, $ 38.2 million, and $ 28.1 million for the years ended December 31, 2016 , 2015 , and 2014 , 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' s gross utility plant in service, and the related accumulate d depreciation reserves at December 31 were as follows: (In thousands) 2016 2015 Utility plant $ 270,898 $ 273,762 Accumulated depreciation (81,935) (84,864) Property, plant, and equipment, net 188,963 188,898 Construction work in progress 21,120 17,110 Total property, plant, and equipment $ 210,083 $ 206,008 In 2016, MGE and WPL negotiated a n amendment to the existing Columbia joint operating agreement , that has been approved by the PSCW, under which MGE will have the option to reduce its obligation to pay certain capital expenditures (other than SCR-related expenditures) at Columbia in exchange for a proportional reduction in MGE's ownership in Columbia. On January 1 of each year, beginning in 2017 and ending June 1, 2020, the o wnership percentage will be adjusted , through a partial sale, based on the amount of capital expenditures foregone. In December 2016, MGE jointly filed a request with the co-owners of Columbia for FERC approval of the amendment to the Columbia joint operat ing agreement, effective January 1, 2017. MGE currently expects to receive FERC ' s decision on the amendment in 2017. During 2016, MGE accrued $ 14.8 million of 2016 capital expenditures that MGE has forgo ne as part of the ownership t ransfer agreement with WPL . As of December 31, 2016 , MGE classified $ 14.8 million of Columbia assets as held-for-sale on the consolidated balance sheets. In January 2017, MGE reduced its ownership interest in Columbia from 22.0 % to 20.4 % through the partial sale of plant assets to WPL . 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, at December 31, 2016 , accounts for 14 % ( 106 MW) of MGE ' s net summer rated capacity. Unit 1 entered commercial operation on February 2, 2010. Unit 2 entered commercial operation on January 12, 2011. MGE Power Elm Road's sole principal asset is that ownership interest in those generating units. MGE Power Elm Road ' s interest in the Elm Road Units is leased to MGE pursuant to long-term leases . The remainder of the ownership interest in the Elm Road Units is held by two other entities, one of which is also responsible for the Unit s ' operation. Each owner provides its own financing and reflects its respective portion of the facility and costs in its financial statements. MGE ' s share of fuel, operating, and maintenance expenses for the Elm Road Units was $ 21.2 million, $ 20.9 million, and $ 20.3 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. MGE Power Elm Road ' s interest in the portion of the Elm Road Units in-service and the related accumulated depreciation reserves at December 31 were as follows: (In thousands) 2016 2015 Nonregulated plant $ 204,292 $ 202,326 Accumulated depreciation (28,790) (24,422) Property, plant, and equipment, net 175,502 177,904 Construction work in progress 3,241 2,400 Total property, plant, and equipment $ 178,743 $ 180,304 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) 2016 2015 Nonregulated plant $ 111,330 $ 111,141 Accumulated depreciation (29,742) (26,738) Property, plant, and equipment, net 81,588 84,403 Construction work in progress 1,009 113 Total property, plant, and equipment $ 82,597 $ 84,516 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, 2016 , 2015 , and 2014 , the UW allocated share of fu el and operating costs was $ 5.5 million, $ 3.7 million, and $ 2.8 million, respectively . |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Regulatory Assets Asset retirement obligation $ 5,563 $ 4,849 Conservation costs 444 - Debt related costs 10,211 10,672 Derivatives 49,281 54,083 Environmental costs 55 368 Tax recovery related to AFUDC equity 9,403 8,950 Unfunded pension and other postretirement liability 86,475 78,181 Other 3,467 634 Total Regulatory Assets $ 164,899 $ 157,737 Regulatory Liabilities Conservation costs $ - $ 231 Deferred fuel savings 6,016 9,515 Elm Road 3,473 643 Income taxes 1,302 1,559 Non-ARO removal costs 16,415 17,137 Renewable energy credits 339 327 Other 1,538 888 Total Regulatory Liabilities $ 29,083 $ 30,300 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 18 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 rene wable resource program, to promote energy efficiency on the customer's premises. Costs for Focus on Energy programs are estimated in MGE's rates utilizing escrow accounting. The escrow accounting allows the utility to true-up its actual costs incurred and reflect the amount of the true-up in its next rate case filing. Debt Related Costs This balance includes debt issuance costs of extinguished debt and other debt related expenses, including make-whole premiums . The PSCW has allowed rate recovery on unamortized issuance costs for extingu ished debt facilities. When the facility replacing the old facility is deemed by the PSCW to be more favorable for the ratepayers, the PSCW will allow rate recovery of any unamortized issuance costs related to the old facility. These amounts are recovered over the term of the new facility. Derivatives MGE has physical and financial contracts that are defined as derivatives. The amounts recorded for the net mark-to-market value of th e commodity based contracts is offset with a corresponding regulatory asset or liability because these transactions are part of the PGA or fuel rules clause authorized by the PSCW. A significant portion of the recorded amount is related to a purchased powe r agreement that provides MGE with firm capacity and energy during a base term from June 1, 2012, through May 31, 2022. This agreement is accounted for as a derivative contract. See Footnote 15 for further discussion. Environmental Costs MGE has been allo wed to defer actual costs on certain environmental matters, including clean up of two landfill sites and legal expenditures pertaining to the response to the EPA Clean Air Act enforcement matter at Columbia. For further discussion of the Columbia Clean Air Act litigation, see Footnote 17.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. Tax recovery related to AFUDC equity represents the revenue requir ement related to recovery of these future taxes payable, calculated at current statutory tax rates. Unfunded Pension and Other Postretirement Liability MGE is required to recognize the unfunded status of defined benefit pension and other postretirement pe nsion plans as a net liability or asset on the balance sheet with an offset to a regulatory asset or liability. The unfunded status represents future expenses that are expected to be recovered in rates. See Footnote 13 for further discussion. Deferred Fue l 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. See Footnote 16.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 imp act mitigation, 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 require ment associated with the return of these tax benefits to customers. Non-ARO Removal Costs In connection with accounting for asset retirement obligations, companies are required to reclassify cumulative collections for non-ARO removal costs as a regulator y liability, with an offsetting entry to accumulated depreciation. Under the current rate structure, these removal costs are being recovered as a component of depreciation expense. Renewable Energy Credits MGE receives renewable energy credits from certai n purchase power agreements. The value of the credits are recorded as inventory and expensed when the credit is redeemed or expired. A regulatory liability has been established for the value of the renewable energy credits included in inventory. In Wiscons in, renewable energy credits expire four years after the year of acquisition. |
Common Equity
Common Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Common Equity | Common Equity. a. Common Stock - MGE Energy and MGE. On December 20, 2013, MGE Energy's Board of Directors declared a three-for-two stock split of MGE Energy's outstanding shares of common stock, effective in the form of a stock dividend. Shareholders of record at the close of business on January 24, 2014, received one additional share of MGE Energy common stock for every two shares of common stock owned on that date. The additional shares were distributed on February 7, 2014. Shareholders received cash in lieu of any fractional shares of common stock they otherwise would have received in connection with the dividend. All share and per share data provided in this report give effect to this stock split. MGE Energy sells shares of its common stock through its Stock Plan. Those shares may be newly issued shares or shares that MGE Energy has purchased in the open market for resale to participants in the Stock Plan. All sales under the Stock Plan are covered by a shelf registration statement that MGE Energy filed with the SEC. For the years ended December 31, 2016 and 2015 , MGE Energy did not issue any new shares of common stock under the Stock Plan. MGE Energy purchases shares on the open market to provide shares to meet obligations to p articipants 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 m arket 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 rep urchases. During the years ended December 31, 2016 and 2015 , MGE Energy paid $ 41.8 million (or $ 1.21 per share) and $ 40.0 million (or $ 1.16 per share), respectivel y, in cash dividends on its common stock. Dividend payments by MGE to MGE Energy are subject to restrictions arising under a PSCW rate order and, to a lesser degree, MGE's first mortgage bonds. The PSCW order restricts any dividends, above the PSCW authori zed amount that MGE may pay MGE Energy if its common equity ratio, calculated in the manner used in the rate proceeding, is less than 55 %. See Footnote 9 for further discussion of the mortgage indenture covenants. During the years ended December 31, 2016 and 2015 , MGE paid $ 50.0 million and $ 30.0 million, respectively, in cash dividends to MGE Energy. In 2016, MGE also transferred its ownership interest in MGE Transco to MGE Energy in the form of a dividend in kind of $15.8 million. See Footnote 4 for further information. b. Dilutive Shares Calculation - MGE Energy. MGE Energy does not hold any dilutive securities. |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 MGE Power Elm Road (a) $ 80,362 $ 79,113 MGE Power West Campus (a) 35,303 37,603 MGE Transco (b) - 23,592 Total Noncontrolling Interest $ 115,665 $ 140,308 The net income attributable to noncontrolling interest , net of tax, for the years ended December 31, 2016 , 2015 , and 2014 was as follows : (In thousands) 2016 2015 2014 MGE Power Elm Road (a) $ 14,748 $ 16,577 $ 16,160 MGE Power West Campus (a) 7,200 7,348 7,666 MGE Transco (b) 1,410 2,172 2,484 Net Income Attributable to Noncontrolling Interest, Net of Tax $ 23,358 $ 26,097 $ 26,310 (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 % o wned 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, 2016 , MGE Energy is the owner of MGE Transco. In July 2016, MGE's ownership interest in MGE Transco declined bel ow a majority as a result of continued funding of ATC capital contributions by MGE Energy. As a result of the change in majority owner ship in MGE Transco , MGE deconsolidated MGE Energy's proportionate share of the equity in MGE Transco. The change in conso lidation was applied prospectively by reducing its investment and noncontrolling interest on MGE's consolidated financial statements. The change had no effect on MGE Energy's consolidated financial statements; however, MGE Energy's proportionate share of t he equity and net income of MGE Transco classified as noncontrolling interest was deconsolidated from MGE ' s financial statements. No gain or loss was recognized in July 2016 due to MGE ceasing to have a controlling financial interest . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt - MGE Energy and MGE. a. Long-Term Debt . 2016 2015 (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 (c) 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: (d) 5.59%, due 2018 (e) 20,000 20,000 20,000 20,000 3.38%, due 2020 (e) 15,000 15,000 15,000 15,000 3.09%, due 2023 (e) 30,000 30,000 30,000 30,000 3.29%, due 2026 (e) 15,000 15,000 15,000 15,000 5.68%, due 2033 (f) 27,120 27,120 28,063 28,063 5.19%, due 2033 (f) 17,983 17,983 18,640 18,640 5.26%, due 2040 (e) 15,000 15,000 15,000 15,000 5.04%, due 2040 (g) 38,472 38,472 40,138 40,138 4.74%, due 2041 (g) 24,167 24,167 25,167 25,167 4.38%, due 2042 (e) 28,000 28,000 28,000 28,000 4.42%, due 2043 (e) 20,000 20,000 20,000 20,000 4.47%, due 2048 (e) 20,000 20,000 20,000 20,000 Total Other Long-Term Debt 270,742 270,742 275,008 275,008 Long-term debt due within one year (4,333) (4,333) (4,266) (4,266) Unamortized discount and debt issuance costs (4,118) (4,118) (4,498) (4,498) Total Long-Term Debt $ 382,791 $ 382,791 $ 386,744 $ 386,744 (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, 2016 , approximately $ 338.5 m illion 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 ) MGE had $30 million of medium-term no tes mature in January 2017. MGE issued $40 million of new long-term unsecured debt on January 13, 2017, to refinance the maturing $30 million medium-term notes and assist with the financing of addi tional capital expenditures. The new debt carr ies an interest rate of 3.76% per annum over its 35-year term. The covenants of this debt are substantially consistent with MGE's existing unsecured long-term debt. In accordance with applicable accounting guid ance, MGE has classified the $30 million of maturing medium-term notes as long-term debt on the consolidated balance sheets for the year ended December 3 1 , 2016. (d ) Unsecured notes issued pursuant to various Note Purchase Agreements with one or more purc hasers. 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. (e ) Issued by MGE. Under that Note Purchase Agreement: (i) note holders have the right to require MGE to repu rchase their notes at par in the event of an acquisition of beneficial ownership of 30 % or more of the outstanding voting stock of MGE Energy, (ii) MGE must maintain a ratio of its consolidated indebtedness to consolidated total capitalization not to exceed a maximum of 65 % , and (iii) MGE cannot issue "Priority Debt" in an amount exceeding 20 % of its consolidated assets. Priority Debt is defined as any indebtedness of MGE secured by liens other than specified liens permitted by the Note Purchase Agreement and certain unsecured indebtedness of certain subsidiaries. As of December 31, 2016 , MGE was in compliance with the covenant requirements. (f ) 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 rati o of not more tha n 0.65 to 1.00 . The notes are secured by a collateral assignment of lease payments that MGE is making to MGE Power West Campus for use of its ownership interest in the WCCF p ursuant to a long-term lease. As of December 31, 2016 , MGE Power West Campus was in compliance with the covenant requirements. (g ) 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, 2016 , 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 December 31, 2016 . MGE (In thousands) Energy MGE * 2017 $ 4,358 4,358 2018 24,452 24,452 2019 4,553 4,553 2020 19,659 19,659 2021 4,771 4,771 Future years 333,449 333,449 Total $ 391,242 $ 391,242 *Includes $ 45.1 million for MGE Power West Campus and $ 62.6 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, 2016 | |
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, 2016 , MGE Energy had an unsecured, committe d revolving line of credit of $ 50 million expiring June 1, 2020 . At December 31, 2016 , n o 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, 2016 , 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, 2016 , MGE had two unsecured, committed rev olving line s of credit for a total of $ 100 million expiring June 1, 2020 . At December 31, 2016 , 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 consolidated debt to consolidated total capitalization not to exceed a maximum of 65 %. The ratio calculation excludes assets, liabilities, revenues , and expenses included in MGE's financial statements as the result of the consolidation of VIEs, such as MGE Power West Campus and MGE Power Elm Road. A change in control constitute s a default under the agreements . 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 outstan ding voting stock of MG E Energy by one person or two or more persons acting in concert. As of December 31, 2016 , MGE was in compliance with the covenant requirements. c. MGE Energy and MGE. Information concerning short-term borrowings for the past two years is shown below: As of December 31, (In thousands) 2016 2015 MGE Energy (a) Available lines of credit $ 150,000 $ 150,000 Short-term debt outstanding $ - $ - Weighted-average interest rate - % - % During the year: Maximum short-term borrowings $ - $ 17,500 Average short-term borrowings $ - $ 1,511 Weighted-average interest rate - % 0.17 % MGE Available lines of credit $ 100,000 $ 100,000 Commercial paper outstanding $ - $ - Weighted-average interest rate - % - % During the year: Maximum short-term borrowings $ - $ 17,500 Average short-term borrowings $ - $ 1,511 Weighted-average interest rate - % 0.17 % (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, 2016 | |
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, 2016 and 2015 , 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 . Since long-term debt is not traded in an active market, it is classified as Level 2. The estimated fair market value of financial instruments are as follows: 2016 2015 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value MGE Energy Assets: Cash and cash equivalents $ 95,959 $ 95,959 $ 81,384 $ 81,384 Liabilities: Long-term debt (a) 391,242 430,122 395,508 435,767 MGE Assets: Cash and cash equivalents $ 10,768 $ 10,768 $ 26,760 $ 26,760 Liabilities: Long-term debt (a) 391,242 430,122 395,508 435,767 (a) Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $4.1 million and $4.5 million at December 31, 2016 and 2015, respectively. b. Recurring Fair Value Measurements. The following table presents the balances of assets and liabilities measured at fair value on a recurring basis . Fair Value as of December 31, 2016 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net $ 1,527 $ 1,041 $ - $ 486 Exchange-traded investments 500 500 - - Total Assets $ 2,027 $ 1,541 $ - $ 486 Liabilities: Derivatives, net $ 50,808 $ 16 $ - $ 50,792 Deferred compensation 3,039 - 3,039 - Total Liabilities $ 53,847 $ 16 $ 3,039 $ 50,792 MGE Assets: Derivatives, net $ 1,527 $ 1,041 $ - $ 486 Exchange-traded investments 143 143 - - Total Assets $ 1,670 $ 1,184 $ - $ 486 Liabilities: Derivatives, net $ 50,808 $ 16 $ - $ 50,792 Deferred compensation 3,039 - 3,039 - Total Liabilities $ 53,847 $ 16 $ 3,039 $ 50,792 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 (b) $ 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 (b) $ 54,316 $ 581 $ - $ 53,735 Deferred compensation 3,145 - 3,145 - Total Liabilities $ 57,461 $ 581 $ 3,145 $ 53,735 (b) These amounts are shown gross and exclude $1.0 million of collateral that was posted against derivative positions with counterparties as of December 31, 2015. No transfers were made in or out of Level 1 or Level 2 for the year ended December 31 , 2016 . 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 1 5 ) 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. The following table presents the significant unobservable inputs used in the pricing model as of December 31: Model Input Significant Unobservable Inputs 2016 2015 Basis adjustment: On peak 91.9 % 96.9 % Off peak 93.4 % 95.1 % Counterparty fuel mix: Internal generation 55%-75% 60%-75% Purchased power 45%-25% 40%-25% 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 minimu m 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 L evel 2 . The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis . (In thousands) 2016 2015 2014 Balance as of January 1, $ (53,501) $ (53,986) $ (64,628) Realized and unrealized gains (losses): Included in regulatory liabilities 3,195 484 10,642 Included in other comprehensive income - - - Included in earnings (5,347) (6,635) 5,129 Included in current assets (142) - - Purchases 23,346 23,052 26,382 Sales - - - Issuances - - - Settlements (17,857) (16,416) (31,511) Transfers in and/or out of Level 3 - - - Balance as of December 31, $ (50,306) $ (53,501) $ (53,986) Total gains (losses) included in earnings attributed to the change in unrealized gains (losses) related to assets and liabilities held at December 31, (c) $ - $ - $ - The following table presents total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis (c ) . (In thousands) Year Ended December 31, 2016 2015 2014 Purchased power expense $ (5,262) $ (6,663) $ 5,137 Cost of gas sold expense (85) 28 (8) Total $ (5,347) $ (6,635) $ 5,129 ( c ) 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, 2016 | |
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, the income tax provision consists of the following provision (benefit) components for the years ended December 31 : MGE Energy MGE (In thousands) 2016 2015 2014 2016 2015 2014 Current payable: Federal $ 16,908 $ 16,837 $ (891) $ 17,521 $ 19,295 $ 637 State 3,287 2,774 (589) 3,497 3,443 (451) Net-deferred: Federal 17,571 15,951 39,284 16,391 13,538 38,553 State 4,850 5,976 10,600 4,485 5,305 10,625 Amortized investment tax credits (103) (175) (219) (103) (175) (219) Total income tax provision $ 42,513 $ 41,363 $ 48,185 $ 41,791 $ 41,406 $ 49,145 The consolidated income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before income taxes, as follows: MGE Energy MGE 2016 2015 2014 2016 2015 2014 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 5.1 % 5.2 % 5.1 % 5.1 % 5.2 % 5.1 % Amortized investment tax credits (0.1) % (0.2) % (0.2) % (0.1) % (0.2) % (0.2) % Credit for electricity from wind energy (1.6) % (1.8) % (1.7) % (1.7) % (1.8) % (1.7) % Domestic manufacturing deduction (1.3) % (1.4) % - % (1.3) % (1.4) % - % AFUDC equity, net (0.2) % (0.1) % (0.8) % (0.2) % (0.1) % (0.8) % Other, net, individually insignificant (0.9) % - % 0.1 % (0.9) % - % 0.1 % Effective income tax rate 36.0 % 36.7 % 37.5 % 35.9 % 36.7 % 37.5 % The significant components of deferred tax liabilities (assets) that appear on the consolidated balance sheets as of December 31 are as follows: MGE Energy MGE (In thousands) 2016 2015 2016 2015 Property-related $ 344,721 $ 327,918 $ 344,630 $ 327,822 Investment in ATC (a) 71,898 38,213 - 30,382 Bond transactions 1,324 1,422 1,324 1,422 Pension and other postretirement benefits 63,516 57,697 63,516 57,697 Derivatives 20,304 21,660 20,304 21,660 Tax deductible prepayments 8,404 8,011 8,404 8,011 Other 16,606 14,997 16,571 14,831 Gross deferred income tax liabilities 526,773 469,918 454,749 461,825 Investment in ATC (a) (31,212) - - - Accrued expenses (22,410) (21,391) (22,410) (21,391) Pension and other postretirement benefits (48,860) (46,582) (48,860) (46,582) Deferred tax regulatory account (903) (1,047) (903) (1,047) Derivatives (20,304) (21,660) (20,304) (21,660) Other (19,340) (18,523) (19,224) (18,589) Gross deferred income tax assets (143,029) (109,203) (111,701) (109,269) Less valuation allowance 69 70 69 70 Net deferred income tax assets (142,960) (109,133) (111,632) (109,199) Deferred income taxes $ 383,813 $ 360,785 $ 343,117 $ 352,626 (a ) As of December 1, 2016, MGE transferred its ownership interest in ATC to MGE Energy, resulting in a deferred intercompany gain and a corresponding step-up in tax basis. 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, 2016 , 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 . 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 , 2014 to December 31, 2016 , is as follows: (In thousands) Unrecognized Tax Benefits: 2016 2015 2014 Unrecognized tax benefits, January 1, $ 2,528 $ 2,365 $ 2,363 Additions based on tax positions related to the current year 452 488 610 Additions based on tax positions related to the prior years 39 520 618 Reductions based on tax positions related to the prior years (532) (845) (1,226) Unrecognized tax benefits, December 31, $ 2,487 $ 2,528 $ 2,365 (In thousands) Interest on Unrecognized Tax Benefits: 2016 2015 2014 Accrued interest on unrecognized tax benefits, January 1, $ 311 $ 92 $ 101 Reduction in interest expense on uncertain tax positions (27) (102) (97) Interest expense on uncertain tax positions 104 321 88 Accrued interest on unrecognized tax benefits, December 31, $ 388 $ 311 $ 92 Unrecognized tax benefits ar e liabilities shown with " Other deferred l iabilities " on the consolidated balance sheets. The interest component is offset by a regulatory asset. At December 31, 2016 , 2015 , and 2014 , MGE Energy and MGE had unrecognized tax benefits primarily related to temporary tax differences associated with the change in income tax method of accounting for electric generation and electric and gas distribution repairs . In addition, at December 31, 2016 , MGE Energy and MGE had unrecognized tax benefits relating to permanent differences and tax credits of less than $0.1 million. There were no unrecognized tax benefits at December 31, 2015 or 2014 , related to federal permanent differences and tax credits. The unrecogniz ed tax benefits at December 31, 2016 , a re not expected to significantly increase or decrease within the next twelve months. In addition, statutes of limitations will expire for MGE Energy and MGE tax returns. The impact of the statutes of limitations expir ing 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 2013 through 2016 MGE Energy Wisconsin combined reporting corporation return 2012 through 2016 |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
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 $ 3.1 million, $ 2.8 million, and $ 2.5 million in 2016 , 2015 , and 2014 , respectively . A measurement date of December 31 is utilized for all pension and postretirement benefit plans. All employees hired aft er 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: 2016 2015 2016 2015 Net benefit obligation at beginning of year $ 332,565 $ 340,233 $ 74,935 $ 78,478 Service cost 5,365 7,263 1,271 1,559 Interest cost 12,393 13,766 2,681 3,075 Plan participants' contributions - - 767 741 Actuarial loss (gain) (a) 11,412 (17,576) 2,638 (5,828) Gross benefits paid (12,179) (11,121) (3,637) (3,280) Less: federal subsidy on benefits paid (b) - - 187 190 Benefit obligation at end of year $ 349,556 $ 332,565 $ 78,842 $ 74,935 Change in Plan Assets: Fair value of plan assets at beginning of year $ 290,716 $ 288,548 $ 40,170 $ 38,952 Actual return on plan assets 24,181 4,153 3,236 603 Employer contributions 9,215 9,136 2,641 3,154 Plan participants' contributions - - 767 741 Gross benefits paid (12,179) (11,121) (3,637) (3,280) Fair value of plan assets at end of year $ 311,933 $ 290,716 $ 43,177 $ 40,170 Funded Status at December 31 $ (37,623) $ (41,849) $ (35,665) $ (34,765) (a) In 2016, lower discount rates were the main driver of 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, 2016 and 2015 , the subsidy due to MGE was $ 0.2 million. The accumulated benefit obligation for the def ined benefit pension plans at the end of 2016 and 2015 was $ 319.9 million and $ 302.5 million , respectively . The amounts recognized in the consolidated balance sheets to reflect the funded status of the plans at December 31 are as follows: Pension Benefits Other Postretirement Benefits (In thousands) 2016 2015 2016 2015 Long-term asset $ 2,020 $ - $ - $ - Current liability (972) (966) - (52) Long-term liability (38,671) (40,883) (35,665) (34,713) Net liability $ (37,623) $ (41,849) $ (35,665) $ (34,765) 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) 2016 2015 2016 2015 Net actuarial loss $ 84,656 $ 80,660 $ 14,728 $ 13,086 Prior service benefit (446) (436) (12,489) (15,158) Transition obligation - - 26 29 Total $ 84,210 $ 80,224 $ 2,265 $ (2,043) 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 2016 2015 Projected benefit obligation, end of year $ 227,739 $ 332,565 Fair value of plan assets, end of year 188,096 290,716 The accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets were as follows: (In thousands) Pension Benefits Accumulated Benefit Obligation in Excess of Plan Assets 2016 2015 Accumulated benefit obligation, end of year $ 26,927 $ 24,606 Fair value of plan assets, end of year - - b . Net Periodic Cost. (In thousands) Pension Benefits Other Postretirement Benefits Components of Net Periodic Cost (Benefit): 2016 2015 2014 2016 2015 2014 Service cost $ 5,365 $ 7,263 $ 6,179 $ 1,271 $ 1,559 $ 1,339 Interest cost 12,393 13,766 13,574 2,681 3,075 3,166 Expected return on assets (22,365) (22,682) (22,051) (2,829) (2,812) (2,615) Amortization of: Transition obligation - - - 3 3 3 Prior service cost (benefit) 10 23 204 (2,669) (2,669) (2,669) Actuarial loss 5,600 5,395 703 589 953 252 Net periodic cost (benefit) $ 1,003 $ 3,765 $ (1,391) $ (954) $ 109 $ (524) 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 2016 2015 2016 2015 Discount rate (a) 4.29 % 4.51 % 4.11 % 4.32 % Rate of compensation increase 3.71 % 3.78 % N/A N/A Assumed health care cost trend rates: Health care cost trend rate assumed for next year N/A N/A 6.25 % 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 2022 (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 weighted-average assumptions used to determine the net periodic cost were as follows for the years ended December 31: Pension Benefits Other Postretirement Benefits 2016 2015 2014 2016 2015 2014 Discount rate 4.51 % 4.11 % 4.88 % 4.32 % 3.96 % 4.69 % Expected rate of return on plan assets 7.65 % 7.80 % 8.10 % 6.96 % 7.06 % 7.07 % Rate of compensation increase 3.76 % 3.84 % 3.93 % 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 2016 d ollars: (In thousands) 1% Increase 1% Decrease Effect on other postretirement benefit obligation $ 1,175 $ (1,479) Effect on total service and interest cost components 54 (67) 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 a re 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 2016 and 2015 , and the target al location for 2017 , by asset category, follows : Target Allocation Percentage of Plan Assets at Year End 2016 2015 Equity securities (a) 63.0 % 65.0 % 63.0 % Fixed income securities 30.0 % 27.0 % 29.0 % Real estate 7.0 % 8.0 % 8.0 % 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 $ 43.2 million and $ 40.2 million at the end of 2016 and 2015 , respectively. Of this amount, $ 37.0 million and $ 34.1 million at the end of 2016 and 2015 , 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 are held either in an insurance continuance fund for the payment of retiree life benefits or health benefit trusts for payment of retiree health premiums. The asset allocation for the insurance continuance fund is determined by the life insurer. The target asset allocation for the health benefit trusts are established based on a similar investment strategy as assets held in the master pension trust, with consideration for liquidity needs in the health benefit trusts. e. Concentrations of Credit Risk. MGE evaluated its pension and other postretirement benefit plans' asset portfolios for the existence of significant concentrations of credit risk as of December 31, 2016 . Types of con centrations 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, 2016 , there were no significant concentrations (defined as greater than 10 percent of plan assets) of risk in MGE pension and postretirement benefit plan assets. f. Fair Value Measurements of Plan Assets. Pension and other postretirement benefit plan investments are recorded at fair value. See Footnot e 11 for more information regarding the fair value hierarchy. The following descriptions are the categories of underlying plan assets held within the pension and other postretirement benefit plans as of December 31, 2016 : 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 invest ed 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 f rom the appropriate local stock exchange. Fixed Income Securities – These securities consist of U.S. bond funds and short-term funds. U.S. bond funds are priced by a pricing agent using inputs such as benchmark yields, reported trades, broker/dealer quote s, and issuer spreads. The short-term funds are valued initially at cost and adjusted for amortization of any discount or premium. Real Estate – The fair value of real estate properties is determined through an external appraisal process. Insurance Cont inuance Fund (ICF) – The ICF is a supplemental retirement plan that includes assets that have been segregated and restricted to pay retiree term life insurance premiums. Fixed Rate Fund – The Fixed Rate fund is supported by an underlying portfolio of fixe d income securities, including public bonds, commercial mortgages, and private placement bonds . Public market data and GAAP reported market values are used when available to determine fair value. All of the fair values of MGE's plan assets are measured us ing net asset value, except for cash and cash equivalents which are considered level 1 investments. The fair values of MGE ' s plan assets by asset category are as follows: (In thousands) 2016 2015 Cash and Cash Equivalents $ 284 $ 300 Equity Securities: U.S. Large Cap 107,406 98,949 U.S. Mid Cap 25,966 22,446 U.S. Small Cap 33,836 27,561 International Blend 59,054 55,948 Fixed Income Securities: Short-Term Fund 4,318 3,388 High Yield Bond 17,978 16,225 Long Duration Bond 71,512 73,112 Real Estate 29,441 27,231 Insurance Continuance Fund 1,514 1,518 Fixed Rate Fund 3,801 4,208 Total $ 355,110 $ 330,886 g . Expected Cash Flows. Contributions to the qualified plans for 2017 were $ 6.0 million, which was paid in January 2017 . MGE does not expect to make c ontributions to the plans for 2018 . The contributions for years after 2018 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 2016 , MGE made $ 14.5 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 2017 $ 13,468 $ 3,623 $ (232) $ 3,391 2018 14,618 3,998 (252) 3,746 2019 15,632 4,442 (274) 4,168 2020 16,429 4,932 (302) 4,630 2021 17,263 5,442 (326) 5,116 2022 - 2026 99,725 31,065 (2,122) 28,943 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation - MGE Energy and MGE. Under MGE Energy ' s Director Incentive Plan and Performance Unit Plan, non-employee directors and 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 plans ' provisions, these awards are subject to prescribed vesting schedule s and must be settled in cash. Accordingly, no shares of common stock will be issued in connection with the plan s . On the grant d ate, MGE Energy and MGE measure the cost of the director or 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, 2016 , as required by applicable accounting standards. Changes in fair value as well as the original grant are recognized as compensation cost. Since this amount is re-measured throughout the vesting period, the compensation co st is subject to variability. Units granted under the Director Incentive Plan are subject to a three- year vesting schedule. The most recent three years of units granted under this plan are as follows: Grant Date MGE Energy Units Granted January 20, 2017 4,032 January 15, 2016 3,773 January 16, 2015 3,794 Units granted under the Performance Unit Plan are subject to a five-year vesting schedule. The most recent units granted under this plan are as follows: 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 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 . During the years ended December 31, 2016 , 2015 , and 2014 , MGE recorded $ 3.1 million , $ 1.0 million , and $ 2.0 million , respectively, in compensation expense as a result of awards under t he plans . In January 2016 , cash payments of $ 1.2 million were distributed relating to awards that were granted in 2011. 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, 2016 and 2014 . At December 31, 2016 , $ 6.9 million of outstanding awards are vested , and of this amount, no cash settlements have occurred. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 12 Months Ended |
Dec. 31, 2016 | |
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 derivatives in the co nsolidated balance sheets at fair value . MGE's financial commodity derivative activities are conducted in accordance with its electric and gas risk management program, which is approved by the PSCW and limits the volume MGE can hedge with specific risk man agement 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 correspondin g regulatory asset or liability. The deferred gain or loss is recognized in earnings in the delivery month applicable to the instrument. Gains and losses related to hedges qualifying for regulatory treatment are recoverable in gas rates through the PGA or in electric rates as a component of the fuel rules mechanism. b. Notional Amounts. The gross notional volume of open derivatives is as follows: December 31, 2016 December 31, 2015 Commodity derivative contracts 393,395 MWh 355,580 MWh Commodity derivative contracts 4,195,000 Dth 5,037,500 Dth FTRs 2,251 MW 2,000 MW PPA 3,250 MW 3,850 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, 2016 , the fair value of exchange traded derivatives and FTRs exceeded their cost basis by $ 1.3 million. At December 31, 2015 , the cost basis of exchange traded deriv atives and FTRs exceeded their fair value by $ 0.8 million. 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 als o 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 regulatory deferral and is recognized with a corresponding regulatory asset or liability depending on whether the fair value is in a loss or gain position. The fair value of the contract at December 31, 2016 and 2015 , reflects a loss position of $ 50.6 million and $ 53.3 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 balance 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 statement purp oses, MGE Energy and MGE have netted instruments with the same counterparty under a master netting agreement as well as the netting of collateral. Derivative Assets Derivative Liabilities (In thousands) Balance Sheet Location December 31, 2016 Commodity derivative contracts (a) $ 1,227 $ 164 Other current assets Commodity derivative contracts (a) 157 54 Other deferred charges FTRs 143 - Other current assets PPA N/A 7,620 Derivative liability (current) PPA N/A 42,970 Derivative liability (long-term) December 31, 2015 Commodity derivative contracts (a) $ 146 $ 1,266 Derivative liability (current) Commodity derivative contracts (a) 144 70 Derivative liability (long-term) FTRs 234 - Other current assets PPA N/A 8,340 Derivative liability (current) PPA N/A 44,930 Derivative liability (long-term) (a ) As of December 31 , 2015 , collateral of $ 1.0 million was posted against and netted with derivative liability positions on the consolidated balance sheets. No collateral was posted against derivative positions as of December 31, 2016 . 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, 2016 Commodity derivative contracts $ 1,384 $ (218) $ - $ 1,166 FTRs 143 - - 143 December 31, 2015 Commodity derivative contracts $ 290 $ (290) $ - $ - FTRs 234 - - 234 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, 2016 Commodity derivative contracts $ 218 $ (218) $ - $ - PPA 50,590 - - 50,590 December 31, 2015 Commodity derivative contracts $ 1,336 $ (290) $ (1,038) $ 8 PPA 53,270 - - 53,270 The following tables summarize the unrealized and realized gains (losses) related to the derivative instruments on the consolidated balance sheets at December 31, 2016 and 2015 , and the consolidated income statements for the years ended December 31, 2016 and 2015 . 2016 2015 Current and Long-Term Regulatory Asset Other Current Assets Current and Long-Term Regulatory Asset Other Current Assets (In thousands) Balance at January 1, $ 54,082 $ 1,208 $ 54,998 $ 1,001 Unrealized loss 1,575 - 8,586 - Realized (loss) gain reclassified to a deferred account (1,060) 1,060 (2,953) 2,953 Realized loss reclassified to income statement (5,316) (2,038) (6,549) (2,746) Balance at December 31, $ 49,281 $ 230 $ 54,082 $ 1,208 Realized Losses (Gains) 2016 2015 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 $ 1,154 $ 2,064 $ 2,236 $ 2,548 FTRs (445) - (309) - PPA 4,581 - 4,820 - 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, 2016 , 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 post e d. As of December 31, 2016 , no counterparties were in a net liability position. As of December 31, 2015 , certain counterparties were in a net liability of less than $0.1 million. Nonperforman ce of counterparties to the non-exchange traded derivatives co uld expose MGE to credit loss. However, MGE enters into transactions only with companies that meet or exceed strict credit guidelines, and it monitors these counterparties on an ongoing basis to mitigate nonperformance risk in its portfolio. As of December 31, 2016 , n o counterparties have defaulted. |
Rate Matters
Rate Matters | 12 Months Ended |
Dec. 31, 2016 | |
Regulated Operations [Abstract] | |
Rate Matters | Rate Matters - MGE Energy and MGE. a. Rate P roceedings. On December 15, 2016, the PSCW authorized MGE to decrease 2017 rates for retail electric customers by 0.8 % or $ 3.3 million and to increase rates for retail gas customers by 1.9 % or $ 3.1 million. The decrease in retail electric rates is attributable to declining fuel and purchased power costs. The increase in retail gas rates c overs costs associated with MGE ' s natural gas system infrastructure improvements. The authorized return on common stock equity for 2017 is 9.8 % on 57.2% common equity . The PSCW also approved MGE's request to extend the curre nt accounting treatment for transmission related costs through 2018. 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 allows 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 e lectric 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 t he 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 was 10.2 %. The PSCW also approved changes to customer rates and rate design for gas service that became effective January 1, 2015. Ga s rate 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, re flecting 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 MG E 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 o f 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 cos t of capital. The authorized return on common stock equity was 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 in a year is determined in the following year and is then reflected in future billings to electric retail customers. The fuel rules bandwidth is currently set at plus or minus 2 %. Under fuel rules, MGE would defer costs, less any excess revenues, if its actual electric fuel costs exceeded 102 % of the electric fuel costs allowed in its latest rate order. Excess revenues are defined as revenues in the year in question that provide MGE with a g reater return on common equity than authorized by the PSCW in MGE's latest rate order. Conversely, MGE is required to defer the benefit of lower costs if actual electric fuel costs were less than 98 % of the electric fuel costs all owed in that order. In August 2015, the PSCW approved a $0.00256/kWh fuel credit that began on September 1, 2015, and continued throughout 2016. The fuel credit established a mechanism to return $ 10.9 million of fuel savings to electric customers as a bill credit. MGE returned $ 2.6 million of electric fuel-related savings to customers through bill credits during the period from September 1, 2015, through December 31, 2015. MGE returned $ 8.3 million of electric fuel-related savings during the year ended December 31, 2016 . In January 2016, the PSCW lowered MGE ' s 2016 fuel rules monitored costs by $ 14.8 million as a result of continu ed lower projected fuel costs in 2016. Also, in March 2016, MGE filed its 2015 fuel plan reconciliation application showing an overcollection of 2015 fuel rules monitored costs. In July 2016, the PSCW issued a final order stating that MGE shall refund the additional fuel savings incurred during 2015 and 2016 for a total of $ 15.7 million to its retail electric customers over a one-month period. In September 2016, MGE returned $ 15.5 million to customers through bill credits. As of December 31, 2016 , MGE has deferred $ 5.6 million of 2016 fuel savings that were in excess of the fuel savings included within the fuel credits referenced above. These cost s will be subject to the PSCW ' s annual review of 2016 fuel costs, expected to be completed in 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , the future minimum c ommitments related to these purchase contracts were as follows: (In thousands) 2017 2018 2019 2020 2021 Thereafter Coal (a) $ 21,246 $ 14,763 $ 7,281 $ - $ - $ - Natural gas Transportation and storage (b) 20,859 20,645 19,483 15,226 8,443 23,331 Supply (c) 17,783 - - - - - Purchase power (d) 48,056 46,563 33,670 32,577 33,266 66,231 Other 14,902 324 143 - - - $ 122,846 $ 82,295 $ 60,577 $ 47,803 $ 41,709 $ 89,562 (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. Management expects to recover these costs in future customer rates. (c) These commitments include market-based pricing. Management expects to recover these costs in future customer rates. (d) MGE has several purchase power agreements to help meet future electric supply requirements. Management expects to recover these costs in future customer rates. In October 2008, MGE entered into a purchase power agreement to help meet future electric supply requirements. Under this agreement, MGE has agreed to purchase 50 M W of wind power from Osceola Windpower II, LLC, which is located in Iowa. This facility became operational in October 2008. MGE does not have any capacity payment commitments under this agreement. However, MGE is obligated to purchase its ratable share of the energy produced by the project. MGE's commitment related to its ratable share of energy produced by the project has been estimated and is included in the above numbers. Management expects to recover these costs in future customer rates. 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, 2016 , u nder agreements classified as operating leases with noncancelable terms in excess of one year are a s follows: (In thousands) 2017 2018 2019 2020 2021 Thereafter Minimum lease payments $ 1,331 $ 959 $ 441 $ 310 $ 278 $ 8,020 Rental expense under operating leases totaled $ 2.0 million , $ 2.1 million, and $ 2.5 million for 2016 , 2015 , and 2014 , 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 require the use of effluent-treatment processes equivalent to categorical "best practicable" or "best available" technologies. The CWA regulates discharges from "point sources," such as power plants, through establishing discharge limits in water discharge permits. MGE's power plants operate under Wisconsin Pollution Discharge Elimination System (WPDES) permits issued by the WDNR to ensure compliance with these discharge limits. Permits are subject to periodic renewal. EPA's Effluent Limi tations 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 federal 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 s ystems and via wet ash handling systems at coal-burning power plants with units greater than 50 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 discharg e standards. The rule will be applied to Wisconsin-based power plants as they renew their WPDES permits, beginning in 2018 but no later than 2023. Management believes that any compliance costs will be recovered in future rates based on previous treatment o f 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 mortalit y 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 Wiscon sin through modifications to plants' WPDES permits, which govern plant wastewater discharges. The WDNR is currently developing guidance and 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 historical studies that will show that it will likely be in compliance with this rule when its WPDES permit is renewed in 2017. The operator o f our Columbia plant is conducting 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 C olumbia, however, will not 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 effect s on its existing plants. Energy Efficiency and Renewables The Wisconsin Energy Efficiency and Renewables Act requires that 10% of the state's electricity be generated from renewable sources . MGE is in compliance with the 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 various emissions including emissions of particulate matter (PM), s ulfur 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. Current EPA initiatives under the Clean Air Act, including a recent 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 Guidelines under the Clean Air Act 111(d) Rule In October 2015, the EPA finalized its Clean Power Plan (CPP) rule with an effective date of December 2015, setting guidelines and approval criteria for states to use in developing plans to con trol GHG emissions from existing fossil fuel-fired electric generating units (EGUs) and systems. 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, many states (including Wisconsin) and other litigants filed petitions with the U.S. Court of Appeals for the District of Columbia Circuit asking for a stay of the CPP rule, and seeking expedited review of t he petitioners' challenges to the CPP's legality. 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. On January 26, 2016, s everal parties filed a request for a stay of the CPP with the U.S. Supreme Court. On February 9, 2016, the U.S. Supreme Court issued a stay blocking implementation of the CPP pending the Court ' s own review. The CPP may not be implemented until the Supreme Court lifts the stay, presumably after the courts ultimately resolve the underlying legality of the rule. Oral arguments were held before the D.C. Circuit in September 2016 and a decision by the D.C. Circuit is expected in 2017. Given the pending legal proceedings, 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 Rule s 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 level s. The Clean Air Act requires that the EPA periodically review, and adjust as necessary, the NAAQS for these six air pollutants. The EPA's NAAQS review can result in a lowering of the allowed ambient levels of a pollutant, a change in how the pollutant is monitored, and/or a change in which sources of that pollutant are regulated. States implement any necessary monitoring and measurement changes and recommend areas for attainment (meets the ambient requirements) or nonattainment (does not meet these standar ds). The EPA makes the final attainment and nonattainment determinations. States must come up with a state implementation plan (SIP) to get nonattainment areas into attainment and maintain air quality in attainment areas. A company with facilities located in a nonattainment area will be most affected. Their facilities may be subject to additional data submissions and measurement during permitting renewals, their facilities may need to meet new emission limitations set by the SIP (which could result in signi ficant 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, lowering each to 70 ppb. The rule became effective in December 2015. In November 2016, the EPA introduced a proposed implementation rule for the revised standard. Based on current ozon e 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 (where our WCCF/Blount and Columbia Units are located, respectively) may attain them. F inal attainment designations for these three counties will be based upon air monitoring data for years 2014-2016. The EPA will finalize the designations by October 1, 2017 based on that data. Once these EPA designations are complete, the State of Wisconsin will need to develop implementation plans for each county designated as nonattainment, which could affect operations and emission control obligations for plants located within the nonattainment counties. The State of Wisconsin has joined a lawsuit filed by several 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 ozone attainment levels. Oral arguments in this case are scheduled to beg in in April 2017. MGE will continue to monitor the EPA's progress on attainment designations and related litigation to assess potential impacts at our facilities, particularly our Elm Road Units. Sulfur Dioxide (SO 2 ) NAAQS In March 2015, the EPA identifie d MGE's Columbia Plant in Columbia County as a large stationary source of SO 2 that may exceed the one hour SO 2 NAAQS standard and was subject to a State of Wisconsin proposed county attainment/nonattainment determination. In September 2015, Wisconsin sent a letter to the EPA proposing that Columbia County be designated as being in attainment for the SO 2 NAAQS based on recent modeling demonstrating that SO 2 pollution controls on the Columbia Plant had brought the county into attainment. In June 2016, the EPA issued a final rule classifying Columbia County as an unclassified/attainment area. MGE does not anticipate any material costs from this rule. Nitrogen Dioxide (NO 2 ) NAAQS The WDNR has revised its state rules to incorporate the EPA's one hour NO 2 NAAQS r ule that was finalized in 2010. The effective date of the state rule was August 1, 2016. The WDNR is currently seeking input from the public on ideas for implementing this one-hour standard. Wisconsin's NO 2 NAAQS rule will affect our stationary fossil-fuel generation sources by requiring that we demonstrate consistency with the NAAQS when applying for certain air permits. Sources that cannot demonstrate compliance with the NAAQS may be required to install emission controls or restrict operations. MGE will c ontinue to monitor developments while the WDNR implements guidance for compliance with the one-hour NAAQS. 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. This is accomplished in the CSAPR through a r eduction in SO 2 and NO x from qualifying fossil-fuel fired power plants in upwind or " contributing " states. NO x and SO 2 contribute to fine particulate pollution, and NO x contributes to ozone formation. Reductions are achieved through a cap and trade system. Individual plants can meet their caps through modifications and/or buying allowances on the market. In October 2016, the EPA finalized rulemaking for an update to CSAPR that incorporated 2008 Ozone NAAQS levels into the rule (the original CSAPR is based on 1997 Ozone NAAQS levels). The update affects 22 states, including Wisconsin, by further limiting statewide NO x allowances in each of those states. The rule also includes revisions to CSAPR that are designed to address issues remaining from the D.C. Circ uit remand of CSAPR, including Wisconsin's inclusion in the NO x ozone season portion of the rule. The State of Wisconsin filed a legal challenge to the CSAPR update rule asserting, among other things, that the rule over -controls NO x emissions in Wisconsin. The CSAPR Update rule will further reduce summertime (or Ozone Season) NO x emissions allocations from power plants starting in 2017. MGE intends to meet the rule requirements through a combination of owned, received, and purchased. Depending on the num ber of allocations MGE receives for ozone season, the number of allocations that MGE must purchase, and the cost of allocations, this requirement could be material for MGE. Clean Air Visibility Rule (CAVR) Columbia is subject to the best available retrofi t technology (BART) regulations, a subsection of the EPA's Clean Air Visibility Rule (CAVR), which may require pollution control retrofits. Columbia's existing pollution control upgrades, and the EPA's stance that compliance with the CSAPR equals complianc e with BART, should mean that Columbia will not need to do additional work to meet BART requirements. At this time, however, the BART regulatory obligations, compliance strategies, and costs remain uncertain due to the continued legal challenges surroundin g CSAPR and CAVR. In December 2016, the EPA introduced a final rule (posted online but not yet scheduled for publication in the Federal Register) extending state implementation plan deadlines by three years from 2018 to 2021 for the next implementation ph ase of the CAVR, which goes beyond BART and may affect utilities. This extension would allow for states to coordinate their CAVR compliance with other compliance efforts, which should lessen the burden to comply. It is too early to determine if the rule wi ll affect MGE. MGE will continue to monitor developments. 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. The rule also regulates landfills, ash ponds, and other surface impoundments for coal combustion residuals by regulating their design, location, monitoring, and operation. This portion of the rule is accomplished in phases to allow for sites with onsite storage and/or disposal to evaluate their compliance with the rule's design cri teria. Landfills and impoundments that cannot meet design criteria will need to close formally within defined timeframes. The Columbia and Elm Road Units co-owners and plant operators are working through the phased requirements to plan and implement chang es necessary at those facilities to meet design criteria. Review of our Elm Road Units has indicated that the costs to comply with this rule are not expected to be significant. Columbia's operator has developed a preliminary implementation schedule for mee ting the various deadlines spelled out in the rule. Costs at Columbia will be dependent on what is determined during the evaluation stage. Management believes compliance costs will be recovered in future rates based on previous treatment of environmental compliance projects. Columbia Based upon current available information, compliance with various environmental requirements and initiatives is expected to result in significant additional operating and capital expenditures at Columbia as noted below. Columbia Clean Air Act Litigation 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 the co-owners, including MGE. The NOV alleged that WPL, which is the plant operator, 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 requirements, Title V Ope rating Permit requirements of the CAA, and the Wisconsin SIP. In June 2013, the court approved and entered a consent decree entered by the EPA, Sierra Club, and the co-owners of Columbia. 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 and is currently under construction. MGE's share of the projected cost for the SCR system is estimated to be $22-$24 million, with expected comp letion in 2018 . d. Legal Matters - MGE Energy and MGE. MGE is involved in various legal matters that are being defended and handled in the normal course of business. MGE maintains accruals for such costs that are probable of being incurred and subject to reasonable estimation. The accrued amount for these matters is not material to the financial statements. MGE does not expect the resolution of these matters to have a material adverse effect on its consolidated results of operations, financial condition, or cash flow s. 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 $ 11.4 million in capital for such infusions. The timing of these infusions is dependent on the needs of the investee and is therefore uncertain at this time. In addition, MGE Energy has a three year agreement with a venture debt fund expiring in December 201 9 . MGE Ene rgy has committed to invest up to a t otal of $ 1.5 million into this fund. As of December 31, 2016 , MGE Energy has $ 0.4 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) 2017 2018 2019 2020 2021 Thereafter Other commitments $ 1,317 $ 1,175 $ 511 $ 497 $ 440 $ 5,646 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2016 | |
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 Units, electric substation s, combustion turbine generating unit s , wind generating facilities, and photovoltaic generating facilities, all of which are located on property not owned by MGE Energy and MGE and would need to be removed upon the ultimate end of the a ssociated 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 re moval of tanks , batteries, and underground cable . Changes in management ' s assumptions regarding settlement dates, settlement methods, or assig ned probabilities could have a material effect on the liabilities recorded by MGE at December 31, 2016 , as well as the regulatory asset recorded. MGE also may have AROs relating to the removal of various assets, such as certain electric and gas distribution facilities. These facilities are generally located on property owned by third parties, on which MGE is permitte d to operate by lease, permit, easement, license, or service agreement. The asset retirement obligations associated with these facilities cannot be reasonably determined due to the indeterminate life of the related agreements. The following table summariz es the change in AROs . Amounts include conditional AROs. (In thousands) 2016 2015 Balance at January 1, $ 24,360 $ 19,744 Liabilities incurred (a) 1,303 2,380 Accretion expense 1,269 1,131 Liabilities settled (110) (124) Revisions in estimated cash flows (a) 64 1,229 Balance at December 31, $ 26,886 $ 24,360 (a) In the second quarter of 2015 , M GE 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, 2016 | |
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. R evenue from Contracts with Customers. In May 2014, the FASB issued authoritative guidance within the Codification's Revenue Recognition topic that provides guidance on the recognition, measurement, and disclosure of revenue from contracts with customers. The new standard establishes a five step model for recognizing and measuring revenue from contracts with customers and replaces existing guidan ce on revenue recognition. The objective of the new standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries and across capital markets. The unde rlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. MGE Energy and MGE have been assessing the i mpact of this guidance on revenue streams within the scope of the new standard. All retail electric and gas revenues are tariff rates approved by the PSCW. Based on our evaluation of the new standard, retail revenues will be recognized within the period in which utility service is provided to the customer and the performance obligation is fulfilled, consistent with our current revenue recognition model. Electric revenues for sales to the market represent wholesale sales made to third parties who are not ult imate users of the electricity. These sales may also include bilateral sales to other utilities or power marketers. Revenues for sales to the market will be recognized when the sale is completed within the market operated by MISO, similar to the recognitio n under our current revenue recognition model. In addition, revenues from the transportation of gas will continue to be recognized upon the performance of services for the respective customer. Based on our assessment of the new standard, revenue recognitio n for retail revenues, sales to the market, and transportation of gas will be consistent with our current revenue recognition model. However, additional disclosures regarding the nature, amount, timing, and uncertainty of these revenue streams and related cash flows arising from contracts with customers will be required as a result of the new standard. The Power and Utilities Task Force of the AICPA is formulating a utility industry-specific interpretation of the guidance regarding the collectability thres hold of probable within the new standard. The collectability criterion could impact the timing of revenue recognition for uncollectible accounts. The Power and Utilities Task Force of the AICPA is also requesting the FASB issue an industry-specific clarifi cation regarding the accounting treatment of upfront contributions in the aid of construction, also known as CIAC. The final clarification on this topic could result in a material impact on the consolidated financial statements. Management continues to ana lyze newly-released interpretative guidance and assess the related impacts to the current revenue recognition model. This authoritative guidance will become effective January 1, 2018, and MGE Energy and MGE anticipate adopting the standard upon the effec tive date. Adoption of this standard is permitted under one of two methods: the full retrospective method or the modified retrospective method. MGE Energy and MGE are continuing to assess the permitted implementation methods and the impact on our financia l statements. b. Consolidation. 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 guida nce became effective January 1, 2016. This guidance had no impact on our financial statements. c. Debt Issuance Costs. In April 2015, the FASB issued authoritative guidance within the Codification's Interest topic that provides guidance on the presentati on of debt issuance costs in financial statements. This authoritative guidance became effective January 1, 2016, and changed the presentation of debt issuance costs on the balance sheet. Prior to the authoritative guidance, debt issuance costs were treated as a deferred asset, and beginning January 1, 2016, these costs are included as a direct deduction to the related debt liability on the consolidated balance sheets. As of December 31, 2016, assets (other deferred assets and other) and liabilities (long-te rm debt) decreased approximately $3.9 million as a cumulative result of the guidance. In addition, this guidance was applied retrospectively to all prior periods presented, resulting in a decrease to assets and liabilities of $4.3 million for the year ende d December 31, 2015. d. Financial Instruments. In January 2016, the FASB issued authoritative guidance within the Codification's Financial Instruments topic that provides guidance on the recognition and measurement of financial instruments. This authoritative guidance will become effective January 1, 2018, and will require equity investments to be measured at fair value with changes in fair value recognized in net income rather than in other comprehensive income. As a result of this guidance, MGE Energy and MGE will no longer have any other comprehensive i ncome. This standard will be applied using a modified retrospective approach, with a cumulative effect adjustment recorded to opening retained earnings as of the beginning of all prior periods pre sented . e. Leases. In February 2016, the FASB issued authoritative guidance within the Codification ' s Leases topic that provides guidance on the classification, recognition, measurement, and disclosure of leases. The new leasing standard establishes that a lease conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Under the new guidance, lessees will be required to recognize all leases with terms greater than one year, includi ng operating leases, on the consolidated balance sheet by recording a right-of-use asset and lease liability. Prior to the authoritative guidance, only capital leases were recognized on the balance sheet by lessees. The new accounting guidance as applied b y lessors is materially consistent from that applied under current GAAP. Management has begun utilizing a bottoms-up approach to analyze the impact of the standard on our lease portfolio. MGE Energy and MGE have been reviewing current accounting policies and procedures to identify potential differences in accounting treatment that would result from applying the requirements of the new standard to our existing lease portfolio. In addition, we are identifying appropriate changes to our business processes, s ystems, and controls to support recognition and disclosure requirements under the new standard. This authoritative guidance will become effective January 1, 2019, with early adoption permitted. The new leasing standard requires entities to recognize and me asure leases at the beginning of the earliest comparative period presented using a modified retrospective approach. MGE Energy and MGE are currently assessing the impact this pronouncement will have on our financial statements . f. Restricted Cash. In Nov ember 2016, the FASB issued authoritative guidance within the Codification ' s Statement of Cash Flows topic that provides guidance on the classification and presentation of changes in restricted cash within the statement of cash flows. The new standard was issued to eliminate a current diversity in practice for the accounting treatment of restricted cash. Under the new guidance, reporting entities will be required to explain the changes in the total of restricted and unrestricted cash and cash equivalents wh en reconciling the beginning and ending balances on the statement of cash flows. Prior to the authoritative guidance, changes in restricted cash were presented as either cash flows from operating, investing, or financing activities within the statement of cash flows, as appropriate based on the nature of the restriction. Also under the new standard, reporting entities will be required to provide a reconciliation from the balance sheet to the statement of cash flows and disclose the nature of the restriction s of cash. This authoritative guidance will become effective January 1, 2018. Upon the effective date, MGE Energy and MGE will change the presentation of restricted cash to reflect this change in accounting guidance. MGE Energy and MGE will also retrospect ively apply the guidance to all prior periods presented. As of December 31, 2016, MGE Energy and MGE had $5.1 million of restricted cash classified within other current assets on the consolidated balance sheets. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
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 and MGEE Transco, in ATC Holdco, a company formed to pursue electric transmission development and i nvestments outside of Wisconsin . See Footnote 4 for further discussion . The "All O ther s" segment includes: co rporate, 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 ar e allocated to electric and gas segments based on formulas prescribed by the PSCW. Identifiable assets are those used in MGE ' s operations in each segment. Assets not allocated consist primarily of cash and cash equivalents, restricted cash, investments, ot her 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 Roa d /MGE Power West Campus are based on terms previously approved by the PSCW. Consistent with 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 paym ents 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, 2016 Operating revenues $ 409,006 $ 134,543 $ 1,196 $ - $ - $ - $ 544,745 Interdepartmental revenues 1,912 21,378 43,930 - - (67,220) - Total operating revenues 410,918 155,921 45,126 - - (67,220) 544,745 Depreciation and amortization (29,122) (8,128) (7,372) - (24) - (44,646) Other operating expenses (310,941) (127,083) (155) (17) (895) 67,220 (371,871) Operating income (loss) 70,855 20,710 37,599 (17) (919) - 128,228 Other income, net 960 30 - 8,429 292 - 9,711 Interest (expense) income, net (11,147) (3,223) (5,768) - 272 - (19,866) Income (loss) before taxes 60,668 17,517 31,831 8,412 (355) - 118,073 Income tax (provision) benefit (20,115) (6,894) (12,775) (2,836) 107 - (42,513) Net income (loss) $ 40,553 $ 10,623 $ 19,056 $ 5,576 $ (248) $ - $ 75,560 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 (In thousands) MGE Electric Gas Non-Regulated Energy Transmission Investment (b) Consolidation/ Elimination Entries Consolidated Total Year Ended December 31, 2016 Operating revenues $ 409,030 $ 134,572 $ 1,196 $ - $ - $ 544,798 Interdepartmental revenues 1,888 21,349 43,930 - (67,167) - Total operating revenues 410,918 155,921 45,126 - (67,167) 544,798 Depreciation and amortization (29,122) (8,128) (7,372) - - (44,622) Other operating expenses (a) (330,924) (133,940) (12,930) - 67,167 (410,627) Operating income (a) 50,872 13,853 24,824 - - 89,549 Other (deductions) income, net (a) 828 (7) - 4,360 - 5,181 Interest expense, net (11,147) (3,223) (5,768) - - (20,138) Net income 40,553 10,623 19,056 4,360 - 74,592 Less: Net income attributable to noncontrolling interest, net of tax - - - - (23,358) (23,358) Net income attributable to MGE $ 40,553 $ 10,623 $ 19,056 $ 4,360 $ (23,358) $ 51,234 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 (a) (335,803) (135,124) (13,632) (19) 51,691 (432,887) Operating income (loss) (a) 47,293 13,635 26,091 (19) - 87,000 Other (deductions) income, net (a) 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 (a) (319,175) (204,597) (13,071) - 51,524 (485,319) Operating income (a) 49,250 19,181 25,497 - - 93,928 Other (deductions) income, net (a) 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 (a) Amounts are shown net of the related tax expense, consistent with the presentation on the MGE Consolidated Statements of Income. (b) As of July 31, 2016, MGE no longer consolidates MGE Energy's proportionate share of equity earnings in MGE Transco. See Footnote 4 for additional information. 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, 2016 $ 1,021,905 $ 318,603 $ 27,338 $ 271,277 $ 74,535 $ 465,202 $ (377,800) $ 1,801,060 December 31, 2015 (c) 974,235 298,435 49,753 277,858 69,470 434,868 (378,216) 1,726,403 December 31, 2014 (c) 945,790 306,106 41,124 280,542 67,697 438,898 (390,636) 1,689,521 Capital Expenditures: Year ended Dec. 31, 2016 $ 50,699 $ 29,136 $ - $ 3,824 $ - $ - $ - $ 83,659 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 Utility Consolidated (In thousands) MGE Electric Gas Assets not Allocated Non-regulated Energy Transmission Investment (d) Consolidation/ Elimination Entries Total Assets: December 31, 2016 $ 1,021,905 $ 318,603 $ 27,338 $ 271,227 $ - $ (221) $ 1,638,852 December 31, 2015 (c) 974,235 298,435 49,753 277,808 69,470 (187) 1,669,514 December 31, 2014 (c) 945,790 306,106 41,124 280,492 67,697 (6,521) 1,634,688 Capital Expenditures: Year ended Dec. 31, 2016 $ 50,699 $ 29,136 $ - $ 3,824 $ - $ - $ 83,659 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 (c) Reflects retrospective application of new accounting pronouncement related to debt issuance costs, see Footnote 19 for additional information. (d) In December 2016, MGE's ownership interest in MGE Transco was transferred to MGE Energy, see Footnote 4 for additional information. |
Quarterly Summary of Operations
Quarterly Summary of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary of Operations | Quarterly Summary of Operations - MGE Energy (unaudited). (In thousands, except per share amounts) Quarters Ended 2016 March 31 June 30 September 30 December 31 Operating revenues: Electric revenues $ 93,690 $ 100,615 $ 119,147 $ 96,750 Gas revenues 53,837 20,961 17,570 42,175 Total Operating Revenues 147,527 121,576 136,717 138,925 Operating expenses 117,996 93,364 90,190 114,967 Operating income 29,531 28,212 46,527 23,958 Interest and other income, net (2,558) (2,778) (2,933) (1,886) Income tax provision (9,945) (9,284) (15,714) (7,570) Earnings on common stock $ 17,028 $ 16,150 $ 27,880 $ 14,502 Earnings per common share $ 0.49 $ 0.47 $ 0.80 $ 0.42 Dividends per share $ 0.295 $ 0.295 $ 0.308 $ 0.308 2015 Operating revenues: Electric revenues $ 100,206 $ 101,457 $ 123,364 $ 95,264 Gas revenues 69,928 20,669 17,431 35,709 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 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, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions - MGE Energy and MGE. ATC During 2016 , 2015 , and 2014 , MGE recorded $ 29.1 m illion, $ 28.2 million, and $ 26.8 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, 2016 and 2014 , MGE had a receivable due from ATC of $ 0.1 million. For the year ended December 31, 2015 , MGE had a receivable due from ATC of $ 0.2 million. For additional discussion on MGE's relationship with ATC, see Footnote 4. |
Condensed Parent Company Financ
Condensed Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 Operating Expenses: Other operations and maintenance $ 720 $ 690 $ 689 Total Operating Expenses 720 690 689 Operating Loss (720) (690) (689) Equity in earnings of investments 75,581 71,306 81,811 Other income (loss), net 435 526 (1,879) Other interest 176 136 93 Income before income taxes 75,472 71,278 79,336 Income tax provision 88 65 983 Net Income 75,560 71,343 80,319 Other Comprehensive Income, Net of Tax: Unrealized (loss) gain on available-for-sale securities, net of tax ($104, $67, and ($54)) (155) (101) 81 Comprehensive Income $ 75,405 $ 71,242 $ 80,400 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, 2016 2015 2014 Net Cash Flows Provided by Operating Activities $ 74,994 $ 37,085 $ 48,165 Investing Activities: Other investing (2,764) (3,690) (2,422) Cash Used for Investing Activities (2,764) (3,690) (2,422) Financing Activities: Cash dividends paid on common stock (41,775) (40,043) (38,429) Other financing (11) - (89) Cash Used for Financing Activities (41,786) (40,043) (38,518) Change in cash and cash equivalents: 30,444 (6,648) 7,225 Cash and cash equivalents at beginning of period 51,781 58,429 51,204 Cash and cash equivalents at end of period $ 82,225 $ 51,781 $ 58,429 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 2016 2015 Current Assets: Cash and cash equivalents $ 82,225 $ 51,781 Accounts receivable, net: Accounts receivable from affiliates 83 20 Other current assets 1,221 1,386 Total Current Assets 83,529 53,187 Other deferred assets and other 201 249 Investments: Investments in affiliates 684,968 649,276 Other investments 1,161 1,447 Total Investments 686,129 650,723 Total Assets $ 769,859 $ 704,159 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable to affiliates $ 530 $ 530 Accrued taxes 218 263 Other current liabilities 115 144 Total Current Liabilities 863 937 Other Credits: Deferred income taxes 40,672 7,998 Accounts payable to affiliates 4,236 4,766 Total Other Credits 44,908 12,764 Shareholders' Equity: Common shareholders' equity 350,936 350,936 Retained income 372,950 339,165 Other comprehensive income 202 357 Total Shareholders' Equity 724,088 690,458 Commitments and contingencies (see Footnote 3) - - Total Liabilities and Shareholders' Equity $ 769,859 $ 704,159 The accompanying notes are an integral part of the above consolidated financial statements. Schedule I Condensed Parent Company Financial Statements (continued) Notes to Condensed Financial Statements (Parent Company Only) 1. Basis of Presentation. MGE Energy is a holding company and conducts substantially all of its business operations through its subsidiaries. For Parent Company only presentation, investment in subsidiaries are accounted for using the equity method. These condensed Parent Company financial statements and related notes have been prepared in accordance with Rule 12-04, Sc hedule 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, 2016 . 2 . Credit Agreements. As of December 31, 2016 , MGE Energy had access to an unsecured , committed credit facility with ag gregate bank commitments of $ 50.0 million . At December 31, 2016 , 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 1 7 of the Notes to Consolidated Financial Statements for commitments and contin gencies. 4 . Dividend s from Affiliates. Dividends from Affiliates (In thousands) 2016 2015 2014 MGE (a) $ 50,000 $ 30,000 $ 26,500 MGE Power Elm Road 13,500 10,000 13,500 MGE Power West Campus 9,500 3,000 6,000 MGE Transco 1,107 1,708 1,859 Total $ 74,107 $ 44,708 $ 47,859 (a ) Excludes $15.8 million dividend in kind to MGE Energy from MGE. 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 pa y 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, 2016 , is 60.2 % as determ ined under the calculation used in the rate proceeding. MGE was not restricted from paying cash dividends in 2016 . Cash dividends of $ 50.0 million and $ 30.0 million were paid by MGE to MGE Energy in 2016 and 2015 , r espectively. In 2016, MGE also transferred its ownership interest in MGE Transco to MGE Energy in the form of a dividend in kind of $15.8 million. The rate proceeding calculation includes as indebtedness imputed amounts for MGE's outstanding purchase power capacity payments and other PSCW adjustments, but does not include the indebtedness associated with MGE Power Elm Road or MGE Power West Campus, which are consolidated into MGE's financial statements but are not direct obligations of MGE. MGE has covena nted 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 distributi ons 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, 2016 , approximately $ 338.5 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, 2016 | |
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 Charged to Costs and Expenses Charged to Other Accounts Net Accounts Written Off (a) Balance at End of Period 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 Fiscal Year 2016: Accumulated provision for uncollectibles $ 3,694,080 1,195,500 19,500 (1,465,784) $ 3,443,296 (a) Net of recovery of amounts previously written off. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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. Additional wholly owned subsidiaries of MGE Energy include CWDC, MAGAEL, MGE Power, MGE State Energy Services, MGE Services, MGE Transco, MGEE Transco, and NGV Fueling Services. MGE Power owns 100 % of MGE Power Elm Road and MGE Power West Campus. MGE Power and its subsidiaries are part of MGE Energy's nonregulated energy operations, which were formed to own and lease electric generation projects to assist MGE. MGE Transco and MGEE Transco are nonregu lated entities formed to manage the investments in ATC and ATC Holdco, respectively. On December 1, 2016, MGE ' s ownership interest in MGE Transco was transferred to MGE Energy. See Footnote 4 for further discussion of the transfer of MGE ' s investment in MG E Transco. MGE Energy and MGE consolidate variable interest entities (VIEs) for which it is the primary beneficiary. Variable interest entities are legal entities that possess any of the following characteristics: equity investors who have an insufficient amount of equity at risk to finance their activities, equity owners who do not have the power to direct the significant activities of the entity (or have voting rights that are disproportionate to their ownership interest), or equity holders who do not re ceive expected losses or returns significant to the VIE. If MGE Energy or MGE is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, all relevant facts and circumstances are considered, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the exp ected 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 en tities 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. Prior to December 1, 2016, MGE Transco was jointly owned by MGE Energy and MGE. MGE's ownership interest in MGE Transco declined below a majority in July 2016. As a result of the change in majority ownership, MGE deconsolidated MGE Energy's proportionate share of the equity in MGE Transco. See Footnote 8 for further discussion regarding th e deconsolidation of noncontrolling interest . The consolidated financial statements reflect the application of certain accounting policies described in this note. All significant intercompany accounts and transactions have been eliminated in consolidatio n. |
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 and Cash Equivalents | Cash Equivalents MGE Energy and MGE consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Restricted Cash | Restricted Cash MGE has certain cash accounts that are restricted to uses other than current operations and designated for a specific purpose. MGE's restricted cash accounts include cash held by trustees for certain employee benefits and cash deposits held by third parties. As of December 31, 2016 and 2015 , there was $ 3.7 million and $ 2.9 million, respectively, of cash deposits held by third parties. These are included in "Other current assets" on the consolidated bal ance sheets. |
Receivable Margin Account | Receivable – Margin Account Cash amounts held by counterparties as margin for certain financial transactions are recorded as receivable – margin account in "Other current assets" on the consolidated balance sheets. As of December 31, 2016 and 2015 , the receivable – margin account balance of $ 1.3 million and $ 2.3 million, respectively, is shown net of any collateral posted against derivative positions. As of December 31, 2016 , no cash collateral was posted against derivative positions. As of December 31, 2015 , there was $ 1.0 million of collateral posted against derivative positions. Changes in this cash account are considered cash f l ows 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 concentration and the related credit risk through its credit and collection pol icies, 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 | 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, 2017. 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, 2016 , approximate the fair value of the energy-related equipment acting as collateral. MGE accounts for these agreements as secured borrowings. |
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. These costs are included as a direct deduction to the related debt liability on the consolidated balance sheets . |
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: 2016 2015 2014 Electric (a) 2.5 % 2.6 % 2.6 % Gas (a) 2.1 % 1.7 % 1.7 % Nonregulated 2.3 % 2.4 % 2.4 % (a ) In December 2015, the PSCW approved new depreciation rates, which were implemented and became effective as of January 1, 2016. |
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 the 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 "Regulatory liabilities - current" 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 in a year is determined in the following year and is then reflected 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. |
Regional Transmission Organizations | Regional Transmission Organizations - MGE Energy and MGE. MGE reports on a net basis transactions on the MISO markets in which it buys and sells power within the same hour to meet electric energy delivery requirements. |
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 both 2016 and 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 2014 , MGE ca pitalized AFUDC-debt and equity on 50 % of applicable average construction work in progress at 8.21 % . For 2016 , 2015 , and 2014 , MGE received specific approval to recover 100 % AFUDC on certain environmental costs for Columbia. These amounts are recovered under the ratemaking process over the service lives of the related properties. |
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 $ 12.3 million and $ 12.0 million at December 31, 2016 and 2015 , respectively. During 2016 , 2015 , and 2014 , MGE recorded $ 3.0 million, $ 2.2 million, and $ 1.6 million, respectively, of amortization expense related to these costs. These costs are amortized on a straight-line basis over the estimated useful lives of the assets. For internal use software, the useful lives range from five to ten years. |
Impairment of Long-Lived Assets Policy | Impairment of Long-Lived Assets - MGE Energy and MGE. MGE reviews plant and equipment and other property for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. MGE's policy for determining when long-lived assets are impaired is to recognize an impairment loss if the sum of the expected future cash flows (undiscounted and without interest charges) from an asset are less than the carrying amount of that asset. If an impairment loss is recognized, the amount that will be recorded will be measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Income Taxes and Excise Taxes | Income Taxes and Excise Taxes - MGE Energy and MGE. Income taxes Under the liability method, income taxes are deferred for all temporary differences between pretax financial and taxable income and between the book and tax basis of assets and liabilities using the tax rates scheduled by law to be in effect when the temporary differences reverse. Future tax benefits are recognized to the extent that realization of 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 $ 14.5 million, $ 14.7 million, and $ 14.6 million for the years ended December 31, 2016 , 2015 , and 2014 , respectivel y. 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 plans. MGE Energy and MGE initially measure the cost of the employee or director services received in exchange for a performance unit award based on the current market value of MGE Energy common stock. The fair value of the award is subsequently re-measured at each reporting date through the settlement date. Changes in fair value durin g the requisite period are recognized as compensation cost over that period. |
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. All sales under the Stock Plan are covered by a shelf registration statement that MGE Energy filed with the SEC. MGE Energy purchases shares on the open market to provide shares to meet obligations to p articipants 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 m arket 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 rep urchases. |
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, 2016 and 2015 , 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 . Since long-term debt is not traded in an active market, it is classified as Level 2. No transfers were made in or out of Level 1 or Level 2 for the year ended December 31 , 2016 . 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 1 5 ) 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. The following table presents the significant unobservable inputs used in the pricing model as of December 31: Model Input Significant Unobservable Inputs 2016 2015 Basis adjustment: On peak 91.9 % 96.9 % Off peak 93.4 % 95.1 % Counterparty fuel mix: Internal generation 55%-75% 60%-75% Purchased power 45%-25% 40%-25% 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 minimu m 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 L evel 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 ar e liabilities shown with " Other deferred l iabilities " on the consolidated balance sheets. The interest component is offset by a regulatory asset. At December 31, 2016 , 2015 , and 2014 , MGE Energy and MGE had unrecognized tax benefits primarily related to temporary tax differences associated with the change in income tax method of accounting for electric generation and electric and gas distribution repairs . In addition, at December 31, 2016 , MGE Energy and MGE had unrecognized tax benefits relating to permanent differences and tax credits of less than $0.1 million. There were no unrecognized tax benefits at December 31, 2015 or 2014 , related to federal permanent differences and tax credits. The unrecogniz ed tax benefits at December 31, 2016 , a re not expected to significantly increase or decrease within the next twelve months. In addition, statutes of limitations will expire for MGE Energy and MGE tax returns. The impact of the statutes of limitations expir ing is not anticipated to be material. |
Pension Plans and Other Postretirement Benefits | |
Fair Value of Pension and Other Postretirement Benefit Plan Assets | Pension and other postretirement benefit plan investments are recorded at fair value. See Footnot e 11 for more information regarding the fair value hierarchy. The following descriptions are the categories of underlying plan assets held within the pension and other postretirement benefit plans as of December 31, 2016 : 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 invest ed 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 f rom the appropriate local stock exchange. Fixed Income Securities – These securities consist of U.S. bond funds and short-term funds. U.S. bond funds are priced by a pricing agent using inputs such as benchmark yields, reported trades, broker/dealer quote s, and issuer spreads. The short-term funds are valued initially at cost and adjusted for amortization of any discount or premium. Real Estate – The fair value of real estate properties is determined through an external appraisal process. Insurance Cont inuance Fund (ICF) – The ICF is a supplemental retirement plan that includes assets that have been segregated and restricted to pay retiree term life insurance premiums. Fixed Rate Fund – The Fixed Rate fund is supported by an underlying portfolio of fixe d income securities, including public bonds, commercial mortgages, and private placement bonds . Public market data and GAAP reported market values are used when available to determine fair value. All of the fair values of MGE's plan assets are measured us ing net asset value, except for cash and cash equivalents which are considered level 1 investments. |
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 derivatives in the co nsolidated balance sheets at fair value . MGE's financial commodity derivative activities are conducted in accordance with its electric and gas risk management program, which is approved by the PSCW and limits the volume MGE can hedge with specific risk man agement 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 correspondin g regulatory asset or liability. The deferred gain or loss is recognized in earnings in the delivery month applicable to the instrument. Gains and losses related to hedges qualifying for regulatory treatment are recoverable in gas rates through the PGA or in electric rates as a component of the fuel rules mechanism. |
Derivative Netting | All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purp oses, 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. R evenue from Contracts with Customers. In May 2014, the FASB issued authoritative guidance within the Codification's Revenue Recognition topic that provides guidance on the recognition, measurement, and disclosure of revenue from contracts with customers. The new standard establishes a five step model for recognizing and measuring revenue from contracts with customers and replaces existing guidan ce on revenue recognition. The objective of the new standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries and across capital markets. The unde rlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. MGE Energy and MGE have been assessing the i mpact of this guidance on revenue streams within the scope of the new standard. All retail electric and gas revenues are tariff rates approved by the PSCW. Based on our evaluation of the new standard, retail revenues will be recognized within the period in which utility service is provided to the customer and the performance obligation is fulfilled, consistent with our current revenue recognition model. Electric revenues for sales to the market represent wholesale sales made to third parties who are not ult imate users of the electricity. These sales may also include bilateral sales to other utilities or power marketers. Revenues for sales to the market will be recognized when the sale is completed within the market operated by MISO, similar to the recognitio n under our current revenue recognition model. In addition, revenues from the transportation of gas will continue to be recognized upon the performance of services for the respective customer. Based on our assessment of the new standard, revenue recognitio n for retail revenues, sales to the market, and transportation of gas will be consistent with our current revenue recognition model. However, additional disclosures regarding the nature, amount, timing, and uncertainty of these revenue streams and related cash flows arising from contracts with customers will be required as a result of the new standard. The Power and Utilities Task Force of the AICPA is formulating a utility industry-specific interpretation of the guidance regarding the collectability thres hold of probable within the new standard. The collectability criterion could impact the timing of revenue recognition for uncollectible accounts. The Power and Utilities Task Force of the AICPA is also requesting the FASB issue an industry-specific clarifi cation regarding the accounting treatment of upfront contributions in the aid of construction, also known as CIAC. The final clarification on this topic could result in a material impact on the consolidated financial statements. Management continues to ana lyze newly-released interpretative guidance and assess the related impacts to the current revenue recognition model. This authoritative guidance will become effective January 1, 2018, and MGE Energy and MGE anticipate adopting the standard upon the effec tive date. Adoption of this standard is permitted under one of two methods: the full retrospective method or the modified retrospective method. MGE Energy and MGE are continuing to assess the permitted implementation methods and the impact on our financia l statements. b. Consolidation. 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 guida nce became effective January 1, 2016. This guidance had no impact on our financial statements. c. Debt Issuance Costs. In April 2015, the FASB issued authoritative guidance within the Codification's Interest topic that provides guidance on the presentati on of debt issuance costs in financial statements. This authoritative guidance became effective January 1, 2016, and changed the presentation of debt issuance costs on the balance sheet. Prior to the authoritative guidance, debt issuance costs were treated as a deferred asset, and beginning January 1, 2016, these costs are included as a direct deduction to the related debt liability on the consolidated balance sheets. As of December 31, 2016, assets (other deferred assets and other) and liabilities (long-te rm debt) decreased approximately $3.9 million as a cumulative result of the guidance. In addition, this guidance was applied retrospectively to all prior periods presented, resulting in a decrease to assets and liabilities of $4.3 million for the year ende d December 31, 2015. d. Financial Instruments. In January 2016, the FASB issued authoritative guidance within the Codification's Financial Instruments topic that provides guidance on the recognition and measurement of financial instruments. This authoritative guidance will become effective January 1, 2018, and will require equity investments to be measured at fair value with changes in fair value recognized in net income rather than in other comprehensive income. As a result of this guidance, MGE Energy and MGE will no longer have any other comprehensive i ncome. This standard will be applied using a modified retrospective approach, with a cumulative effect adjustment recorded to opening retained earnings as of the beginning of all prior periods pre sented . e. Leases. In February 2016, the FASB issued authoritative guidance within the Codification ' s Leases topic that provides guidance on the classification, recognition, measurement, and disclosure of leases. The new leasing standard establishes that a lease conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Under the new guidance, lessees will be required to recognize all leases with terms greater than one year, includi ng operating leases, on the consolidated balance sheet by recording a right-of-use asset and lease liability. Prior to the authoritative guidance, only capital leases were recognized on the balance sheet by lessees. The new accounting guidance as applied b y lessors is materially consistent from that applied under current GAAP. Management has begun utilizing a bottoms-up approach to analyze the impact of the standard on our lease portfolio. MGE Energy and MGE have been reviewing current accounting policies and procedures to identify potential differences in accounting treatment that would result from applying the requirements of the new standard to our existing lease portfolio. In addition, we are identifying appropriate changes to our business processes, s ystems, and controls to support recognition and disclosure requirements under the new standard. This authoritative guidance will become effective January 1, 2019, with early adoption permitted. The new leasing standard requires entities to recognize and me asure leases at the beginning of the earliest comparative period presented using a modified retrospective approach. MGE Energy and MGE are currently assessing the impact this pronouncement will have on our financial statements . f. Restricted Cash. In Nov ember 2016, the FASB issued authoritative guidance within the Codification ' s Statement of Cash Flows topic that provides guidance on the classification and presentation of changes in restricted cash within the statement of cash flows. The new standard was issued to eliminate a current diversity in practice for the accounting treatment of restricted cash. Under the new guidance, reporting entities will be required to explain the changes in the total of restricted and unrestricted cash and cash equivalents wh en reconciling the beginning and ending balances on the statement of cash flows. Prior to the authoritative guidance, changes in restricted cash were presented as either cash flows from operating, investing, or financing activities within the statement of cash flows, as appropriate based on the nature of the restriction. Also under the new standard, reporting entities will be required to provide a reconciliation from the balance sheet to the statement of cash flows and disclose the nature of the restriction s of cash. This authoritative guidance will become effective January 1, 2018. Upon the effective date, MGE Energy and MGE will change the presentation of restricted cash to reflect this change in accounting guidance. MGE Energy and MGE will also retrospect ively apply the guidance to all prior periods presented. As of December 31, 2016, MGE Energy and MGE had $5.1 million of restricted cash classified within other current assets on the consolidated balance sheets. |
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 and MGEE Transco, in ATC Holdco, a company formed to pursue electric transmission development and i nvestments outside of Wisconsin . See Footnote 4 for further discussion . The "All O ther s" segment includes: co rporate, 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 ar e allocated to electric and gas segments based on formulas prescribed by the PSCW. Identifiable assets are those used in MGE ' s operations in each segment. Assets not allocated consist primarily of cash and cash equivalents, restricted cash, investments, ot her 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 Roa d /MGE Power West Campus are based on terms previously approved by the PSCW. Consistent with 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 paym ents 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 Accoun39
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Remaining Contractual Maturities for Chattel Paper Agreements | As of December 31, 2016 , the remaining contractual maturities of the chattel paper agreements were as follows: (In thousands) 2017 2018 2019 2020 2021 Thereafter Repurchase-to-Maturity Transactions: Loans $ 559 $ 620 $ 595 $ 568 $ 432 $ 1,121 |
Straight-Line Depreciation Rates | Provisions at composite straight-line depreciation rates ap proximate the following percentages for the cost of depreciable property: 2016 2015 2014 Electric (a) 2.5 % 2.6 % 2.6 % Gas (a) 2.1 % 1.7 % 1.7 % Nonregulated 2.3 % 2.4 % 2.4 % (a ) In December 2015, the PSCW approved new depreciation rates, which were implemented and became effective as of January 1, 2016. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Property, plant, and equipment, net $ 175,502 $ 177,904 Construction work in progress 3,241 2,400 Deferred income taxes 42,525 40,865 Long-term debt 62,021 64,622 Noncontrolling interest 80,362 79,113 |
MGE Power West Campus [Member] | |
Variable Interest Entity [Line Items] | |
Variable interest entities significant balance sheet accounts | At December 31, M GE has included the following significant ac counts on its consolidated balance sheets related to its interest in this VIE: (In thousands) 2016 2015 Property, plant, and equipment, net $ 81,588 $ 84,403 Affiliate receivables 4,769 5,295 Deferred income taxes 19,912 19,612 Long-term debt 44,932 46,510 Noncontrolling interest 35,303 37,603 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2016 2015 Utility: Electric (a) $ 1,171,004 $ 1,147,701 $ 1,171,021 $ 1,147,718 Gas 395,790 384,163 395,801 384,175 Total utility plant 1,566,794 1,531,864 1,566,822 1,531,893 Less: Accumulated depreciation and amortization (a) 579,965 578,410 579,965 578,410 In-service utility plant, net 986,829 953,454 986,857 953,483 Nonregulated: Nonregulated 317,810 315,589 317,014 314,750 Less: Accumulated depreciation and amortization 59,370 51,949 59,223 51,818 In-service nonregulated plant, net 258,440 263,640 257,791 262,932 Construction work in progress: Utility construction work in progress (a) 31,356 23,837 31,356 23,837 Nonregulated construction work in progress 5,434 2,514 5,434 2,514 Total property, plant, and equipment $ 1,282,059 $ 1,243,445 $ 1,281,438 $ 1,242,766 (a ) As of December 31, 2016 , MGE has classified $ 14.8 million of Columbia assets as held-for-sale on the consolidated balance sheets related to the partial sale of plant assets to WPL . See Footnote 5.a. for further discussion. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments Disclosure [Abstract] | |
Equity Method, Available for Sale Securities, and Other Investments | MGE Energy MGE (In thousands) 2016 2015 2016 2015 Available for sale securities: Cost basis $ 2,216 $ 2,225 $ 455 $ 480 Gross unrealized gains 346 599 40 40 Gross unrealized losses (8) (2) (8) (2) Fair value 2,554 2,822 487 518 Equity method investments: ATC and ATC Holdco (a) 72,458 69,466 - 69,466 Other 1,158 1,184 - - Total equity method investments 73,616 70,650 - 69,466 Other investments 120 159 - - Total $ 76,290 $ 73,631 $ 487 $ 69,984 (a) MGE Transco holds an ownership interest in ATC, and MGEE Transco holds an ownership interest in ATC Holdco. In July 2016, MGE's ownership interest in MGE Transco declined below a majority, resulting in MGE Energy's investment in MGE Transco being deconsolidated from MGE's consolidated financial statements. See Footnote 8 for further discussion of noncontrolling interest. In December 2016, MGE's ownership interest in MGE Transco was transferred to MGE Energy, see "ATC and ATC Holdco" below f or additional information. During the years ended December 31, 2016 , 2015 , and 2014 , certain inves tments were liquidated. As a result of these liquidations, MGE Energy and MGE received the following: MGE Energy MGE (In thousands) 2016 2015 2014 2016 2015 2014 Cash proceeds $ 408 $ 19 $ 38 $ 16 $ 19 $ - Gain (loss) on sale 121 10 21 (8) 10 - |
Equity Method Investments Summarized Financial Data | For the years ended December 31, 2016 , 2015 , and 2014 , MGE Transco recorded the following: (In thousands) 2016 2015 2014 Equity earnings from investment in ATC $ 8,670 $ 7,728 $ 9,150 Dividends received from ATC (a) 7,926 6,645 7,740 Capital contributions to ATC 2,486 710 1,775 (a ) As of December 31, 2016, MGE Transco recorded a $2.1 million receivable from ATC for a cash dividend received in January 2017. ATC's summarized financial data for the years ended December 31, 2016 , 2015 , and 2014 is as follows: (In thousands) Income statement data for the year ended December 31, 2016 2015 2014 Operating revenues $ 650,806 $ 615,836 $ 635,033 Operating expenses (322,517) (319,321) (307,451) Other income 3,225 1,176 117 Interest expense, net (98,758) (97,250) (88,970) Earnings before members' income taxes $ 232,756 $ 200,441 $ 238,729 Balance sheet data as of December 31, 2016 2015 Current assets $ 75,790 $ 80,520 Noncurrent assets 4,312,893 3,948,265 Total assets $ 4,388,683 $ 4,028,785 Current liabilities $ 495,126 $ 330,248 Long-term debt 1,865,302 1,790,718 Other noncurrent liabilities 271,495 244,991 Members' equity 1,756,760 1,662,828 Total members' equity and liabilities $ 4,388,683 $ 4,028,785 |
Joint Plant Ownership (Tables)
Joint Plant Ownership (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Columbia Units [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Schedule of Joint Plant Ownership | MGE's interest in Columbia' s gross utility plant in service, and the related accumulate d depreciation reserves at December 31 were as follows: (In thousands) 2016 2015 Utility plant $ 270,898 $ 273,762 Accumulated depreciation (81,935) (84,864) Property, plant, and equipment, net 188,963 188,898 Construction work in progress 21,120 17,110 Total property, plant, and equipment $ 210,083 $ 206,008 |
Elm Road Units [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Schedule of Joint Plant Ownership | MGE Power Elm Road ' s interest in the portion of the Elm Road Units in-service and the related accumulated depreciation reserves at December 31 were as follows: (In thousands) 2016 2015 Nonregulated plant $ 204,292 $ 202,326 Accumulated depreciation (28,790) (24,422) Property, plant, and equipment, net 175,502 177,904 Construction work in progress 3,241 2,400 Total property, plant, and equipment $ 178,743 $ 180,304 |
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) 2016 2015 Nonregulated plant $ 111,330 $ 111,141 Accumulated depreciation (29,742) (26,738) Property, plant, and equipment, net 81,588 84,403 Construction work in progress 1,009 113 Total property, plant, and equipment $ 82,597 $ 84,516 |
Regulatory Assets and Liabili44
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Regulatory Assets Asset retirement obligation $ 5,563 $ 4,849 Conservation costs 444 - Debt related costs 10,211 10,672 Derivatives 49,281 54,083 Environmental costs 55 368 Tax recovery related to AFUDC equity 9,403 8,950 Unfunded pension and other postretirement liability 86,475 78,181 Other 3,467 634 Total Regulatory Assets $ 164,899 $ 157,737 Regulatory Liabilities Conservation costs $ - $ 231 Deferred fuel savings 6,016 9,515 Elm Road 3,473 643 Income taxes 1,302 1,559 Non-ARO removal costs 16,415 17,137 Renewable energy credits 339 327 Other 1,538 888 Total Regulatory Liabilities $ 29,083 $ 30,300 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) - MGE [Member] | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 MGE Power Elm Road (a) $ 80,362 $ 79,113 MGE Power West Campus (a) 35,303 37,603 MGE Transco (b) - 23,592 Total Noncontrolling Interest $ 115,665 $ 140,308 |
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, 2016 , 2015 , and 2014 was as follows : (In thousands) 2016 2015 2014 MGE Power Elm Road (a) $ 14,748 $ 16,577 $ 16,160 MGE Power West Campus (a) 7,200 7,348 7,666 MGE Transco (b) 1,410 2,172 2,484 Net Income Attributable to Noncontrolling Interest, Net of Tax $ 23,358 $ 26,097 $ 26,310 (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 % o wned 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, 2016 , MGE Energy is the owner of MGE Transco. In July 2016, MGE's ownership interest in MGE Transco declined bel ow a majority as a result of continued funding of ATC capital contributions by MGE Energy. As a result of the change in majority owner ship in MGE Transco , MGE deconsolidated MGE Energy's proportionate share of the equity in MGE Transco. The change in conso lidation was applied prospectively by reducing its investment and noncontrolling interest on MGE's consolidated financial statements. The change had no effect on MGE Energy's consolidated financial statements; however, MGE Energy's proportionate share of t he equity and net income of MGE Transco classified as noncontrolling interest was deconsolidated from MGE ' s financial statements. No gain or loss was recognized in July 2016 due to MGE ceasing to have a controlling financial interest . |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | 2016 2015 (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 (c) 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: (d) 5.59%, due 2018 (e) 20,000 20,000 20,000 20,000 3.38%, due 2020 (e) 15,000 15,000 15,000 15,000 3.09%, due 2023 (e) 30,000 30,000 30,000 30,000 3.29%, due 2026 (e) 15,000 15,000 15,000 15,000 5.68%, due 2033 (f) 27,120 27,120 28,063 28,063 5.19%, due 2033 (f) 17,983 17,983 18,640 18,640 5.26%, due 2040 (e) 15,000 15,000 15,000 15,000 5.04%, due 2040 (g) 38,472 38,472 40,138 40,138 4.74%, due 2041 (g) 24,167 24,167 25,167 25,167 4.38%, due 2042 (e) 28,000 28,000 28,000 28,000 4.42%, due 2043 (e) 20,000 20,000 20,000 20,000 4.47%, due 2048 (e) 20,000 20,000 20,000 20,000 Total Other Long-Term Debt 270,742 270,742 275,008 275,008 Long-term debt due within one year (4,333) (4,333) (4,266) (4,266) Unamortized discount and debt issuance costs (4,118) (4,118) (4,498) (4,498) Total Long-Term Debt $ 382,791 $ 382,791 $ 386,744 $ 386,744 (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, 2016 , approximately $ 338.5 m illion 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 ) MGE had $30 million of medium-term no tes mature in January 2017. MGE issued $40 million of new long-term unsecured debt on January 13, 2017, to refinance the maturing $30 million medium-term notes and assist with the financing of addi tional capital expenditures. The new debt carr ies an interest rate of 3.76% per annum over its 35-year term. The covenants of this debt are substantially consistent with MGE's existing unsecured long-term debt. In accordance with applicable accounting guid ance, MGE has classified the $30 million of maturing medium-term notes as long-term debt on the consolidated balance sheets for the year ended December 3 1 , 2016. (d ) Unsecured notes issued pursuant to various Note Purchase Agreements with one or more purc hasers. 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. (e ) Issued by MGE. Under that Note Purchase Agreement: (i) note holders have the right to require MGE to repu rchase their notes at par in the event of an acquisition of beneficial ownership of 30 % or more of the outstanding voting stock of MGE Energy, (ii) MGE must maintain a ratio of its consolidated indebtedness to consolidated total capitalization not to exceed a maximum of 65 % , and (iii) MGE cannot issue "Priority Debt" in an amount exceeding 20 % of its consolidated assets. Priority Debt is defined as any indebtedness of MGE secured by liens other than specified liens permitted by the Note Purchase Agreement and certain unsecured indebtedness of certain subsidiaries. As of December 31, 2016 , MGE was in compliance with the covenant requirements. (f ) 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 rati o of not more tha n 0.65 to 1.00 . The notes are secured by a collateral assignment of lease payments that MGE is making to MGE Power West Campus for use of its ownership interest in the WCCF p ursuant to a long-term lease. As of December 31, 2016 , MGE Power West Campus was in compliance with the covenant requirements. (g ) 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, 2016 , 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 December 31, 2016 . MGE (In thousands) Energy MGE * 2017 $ 4,358 4,358 2018 24,452 24,452 2019 4,553 4,553 2020 19,659 19,659 2021 4,771 4,771 Future years 333,449 333,449 Total $ 391,242 $ 391,242 *Includes $ 45.1 million for MGE Power West Campus and $ 62.6 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, Comme47
Notes Payable to Banks, Commercial Paper, and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings | Information concerning short-term borrowings for the past two years is shown below: As of December 31, (In thousands) 2016 2015 MGE Energy (a) Available lines of credit $ 150,000 $ 150,000 Short-term debt outstanding $ - $ - Weighted-average interest rate - % - % During the year: Maximum short-term borrowings $ - $ 17,500 Average short-term borrowings $ - $ 1,511 Weighted-average interest rate - % 0.17 % MGE Available lines of credit $ 100,000 $ 100,000 Commercial paper outstanding $ - $ - Weighted-average interest rate - % - % During the year: Maximum short-term borrowings $ - $ 17,500 Average short-term borrowings $ - $ 1,511 Weighted-average interest rate - % 0.17 % (a) MGE Energy short-term borrowings include MGE Energy and MGE lines of credit and MGE commercial paper. |
Fair Value of Financial Instr48
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Market Value of Financial Instruments | The estimated fair market value of financial instruments are as follows: 2016 2015 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value MGE Energy Assets: Cash and cash equivalents $ 95,959 $ 95,959 $ 81,384 $ 81,384 Liabilities: Long-term debt (a) 391,242 430,122 395,508 435,767 MGE Assets: Cash and cash equivalents $ 10,768 $ 10,768 $ 26,760 $ 26,760 Liabilities: Long-term debt (a) 391,242 430,122 395,508 435,767 (a) Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $4.1 million and $4.5 million at December 31, 2016 and 2015, respectively. |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis . Fair Value as of December 31, 2016 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net $ 1,527 $ 1,041 $ - $ 486 Exchange-traded investments 500 500 - - Total Assets $ 2,027 $ 1,541 $ - $ 486 Liabilities: Derivatives, net $ 50,808 $ 16 $ - $ 50,792 Deferred compensation 3,039 - 3,039 - Total Liabilities $ 53,847 $ 16 $ 3,039 $ 50,792 MGE Assets: Derivatives, net $ 1,527 $ 1,041 $ - $ 486 Exchange-traded investments 143 143 - - Total Assets $ 1,670 $ 1,184 $ - $ 486 Liabilities: Derivatives, net $ 50,808 $ 16 $ - $ 50,792 Deferred compensation 3,039 - 3,039 - Total Liabilities $ 53,847 $ 16 $ 3,039 $ 50,792 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 (b) $ 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 (b) $ 54,316 $ 581 $ - $ 53,735 Deferred compensation 3,145 - 3,145 - Total Liabilities $ 57,461 $ 581 $ 3,145 $ 53,735 (b) These amounts are shown gross and exclude $1.0 million of collateral that was posted against derivative positions with counterparties as of December 31, 2015. |
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 2016 2015 Basis adjustment: On peak 91.9 % 96.9 % Off peak 93.4 % 95.1 % Counterparty fuel mix: Internal generation 55%-75% 60%-75% Purchased power 45%-25% 40%-25% |
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 . (In thousands) 2016 2015 2014 Balance as of January 1, $ (53,501) $ (53,986) $ (64,628) Realized and unrealized gains (losses): Included in regulatory liabilities 3,195 484 10,642 Included in other comprehensive income - - - Included in earnings (5,347) (6,635) 5,129 Included in current assets (142) - - Purchases 23,346 23,052 26,382 Sales - - - Issuances - - - Settlements (17,857) (16,416) (31,511) Transfers in and/or out of Level 3 - - - Balance as of December 31, $ (50,306) $ (53,501) $ (53,986) Total gains (losses) included in earnings attributed to the change in unrealized gains (losses) related to assets and liabilities held at December 31, (c) $ - $ - $ - ( c ) 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 (c ) . (In thousands) Year Ended December 31, 2016 2015 2014 Purchased power expense $ (5,262) $ (6,663) $ 5,137 Cost of gas sold expense (85) 28 (8) Total $ (5,347) $ (6,635) $ 5,129 ( c ) 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, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | On a consolidated and separate company basis, the income tax provision consists of the following provision (benefit) components for the years ended December 31 : MGE Energy MGE (In thousands) 2016 2015 2014 2016 2015 2014 Current payable: Federal $ 16,908 $ 16,837 $ (891) $ 17,521 $ 19,295 $ 637 State 3,287 2,774 (589) 3,497 3,443 (451) Net-deferred: Federal 17,571 15,951 39,284 16,391 13,538 38,553 State 4,850 5,976 10,600 4,485 5,305 10,625 Amortized investment tax credits (103) (175) (219) (103) (175) (219) Total income tax provision $ 42,513 $ 41,363 $ 48,185 $ 41,791 $ 41,406 $ 49,145 |
Effective Tax Rate Reconciliation | The consolidated income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before income taxes, as follows: MGE Energy MGE 2016 2015 2014 2016 2015 2014 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 5.1 % 5.2 % 5.1 % 5.1 % 5.2 % 5.1 % Amortized investment tax credits (0.1) % (0.2) % (0.2) % (0.1) % (0.2) % (0.2) % Credit for electricity from wind energy (1.6) % (1.8) % (1.7) % (1.7) % (1.8) % (1.7) % Domestic manufacturing deduction (1.3) % (1.4) % - % (1.3) % (1.4) % - % AFUDC equity, net (0.2) % (0.1) % (0.8) % (0.2) % (0.1) % (0.8) % Other, net, individually insignificant (0.9) % - % 0.1 % (0.9) % - % 0.1 % Effective income tax rate 36.0 % 36.7 % 37.5 % 35.9 % 36.7 % 37.5 % |
Deferred Tax Liabilities (Assets) | The significant components of deferred tax liabilities (assets) that appear on the consolidated balance sheets as of December 31 are as follows: MGE Energy MGE (In thousands) 2016 2015 2016 2015 Property-related $ 344,721 $ 327,918 $ 344,630 $ 327,822 Investment in ATC (a) 71,898 38,213 - 30,382 Bond transactions 1,324 1,422 1,324 1,422 Pension and other postretirement benefits 63,516 57,697 63,516 57,697 Derivatives 20,304 21,660 20,304 21,660 Tax deductible prepayments 8,404 8,011 8,404 8,011 Other 16,606 14,997 16,571 14,831 Gross deferred income tax liabilities 526,773 469,918 454,749 461,825 Investment in ATC (a) (31,212) - - - Accrued expenses (22,410) (21,391) (22,410) (21,391) Pension and other postretirement benefits (48,860) (46,582) (48,860) (46,582) Deferred tax regulatory account (903) (1,047) (903) (1,047) Derivatives (20,304) (21,660) (20,304) (21,660) Other (19,340) (18,523) (19,224) (18,589) Gross deferred income tax assets (143,029) (109,203) (111,701) (109,269) Less valuation allowance 69 70 69 70 Net deferred income tax assets (142,960) (109,133) (111,632) (109,199) Deferred income taxes $ 383,813 $ 360,785 $ 343,117 $ 352,626 (a ) As of December 1, 2016, MGE transferred its ownership interest in ATC to MGE Energy, resulting in a deferred intercompany gain and a corresponding step-up in tax basis. |
Unrecognized Tax Benefits and Interest | A tabular reconciliation of unrecognized tax benefits and interest from January 1 , 2014 to December 31, 2016 , is as follows: (In thousands) Unrecognized Tax Benefits: 2016 2015 2014 Unrecognized tax benefits, January 1, $ 2,528 $ 2,365 $ 2,363 Additions based on tax positions related to the current year 452 488 610 Additions based on tax positions related to the prior years 39 520 618 Reductions based on tax positions related to the prior years (532) (845) (1,226) Unrecognized tax benefits, December 31, $ 2,487 $ 2,528 $ 2,365 (In thousands) Interest on Unrecognized Tax Benefits: 2016 2015 2014 Accrued interest on unrecognized tax benefits, January 1, $ 311 $ 92 $ 101 Reduction in interest expense on uncertain tax positions (27) (102) (97) Interest expense on uncertain tax positions 104 321 88 Accrued interest on unrecognized tax benefits, December 31, $ 388 $ 311 $ 92 |
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 2013 through 2016 MGE Energy Wisconsin combined reporting corporation return 2012 through 2016 |
Pension Plans and Other Postr50
Pension Plans and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: 2016 2015 2016 2015 Net benefit obligation at beginning of year $ 332,565 $ 340,233 $ 74,935 $ 78,478 Service cost 5,365 7,263 1,271 1,559 Interest cost 12,393 13,766 2,681 3,075 Plan participants' contributions - - 767 741 Actuarial loss (gain) (a) 11,412 (17,576) 2,638 (5,828) Gross benefits paid (12,179) (11,121) (3,637) (3,280) Less: federal subsidy on benefits paid (b) - - 187 190 Benefit obligation at end of year $ 349,556 $ 332,565 $ 78,842 $ 74,935 Change in Plan Assets: Fair value of plan assets at beginning of year $ 290,716 $ 288,548 $ 40,170 $ 38,952 Actual return on plan assets 24,181 4,153 3,236 603 Employer contributions 9,215 9,136 2,641 3,154 Plan participants' contributions - - 767 741 Gross benefits paid (12,179) (11,121) (3,637) (3,280) Fair value of plan assets at end of year $ 311,933 $ 290,716 $ 43,177 $ 40,170 Funded Status at December 31 $ (37,623) $ (41,849) $ (35,665) $ (34,765) (a) In 2016, lower discount rates were the main driver of 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, 2016 and 2015 , 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) 2016 2015 2016 2015 Long-term asset $ 2,020 $ - $ - $ - Current liability (972) (966) - (52) Long-term liability (38,671) (40,883) (35,665) (34,713) Net liability $ (37,623) $ (41,849) $ (35,665) $ (34,765) |
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) 2016 2015 2016 2015 Net actuarial loss $ 84,656 $ 80,660 $ 14,728 $ 13,086 Prior service benefit (446) (436) (12,489) (15,158) Transition obligation - - 26 29 Total $ 84,210 $ 80,224 $ 2,265 $ (2,043) |
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 2016 2015 Projected benefit obligation, end of year $ 227,739 $ 332,565 Fair value of plan assets, end of year 188,096 290,716 |
Schedule of Accumulated Benefit Obligations in Excess of Plan Assets | The accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets were as follows: (In thousands) Pension Benefits Accumulated Benefit Obligation in Excess of Plan Assets 2016 2015 Accumulated benefit obligation, end of year $ 26,927 $ 24,606 Fair value of plan assets, end of year - - |
Net Periodic Benefit Costs | (In thousands) Pension Benefits Other Postretirement Benefits Components of Net Periodic Cost (Benefit): 2016 2015 2014 2016 2015 2014 Service cost $ 5,365 $ 7,263 $ 6,179 $ 1,271 $ 1,559 $ 1,339 Interest cost 12,393 13,766 13,574 2,681 3,075 3,166 Expected return on assets (22,365) (22,682) (22,051) (2,829) (2,812) (2,615) Amortization of: Transition obligation - - - 3 3 3 Prior service cost (benefit) 10 23 204 (2,669) (2,669) (2,669) Actuarial loss 5,600 5,395 703 589 953 252 Net periodic cost (benefit) $ 1,003 $ 3,765 $ (1,391) $ (954) $ 109 $ (524) |
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 2016 2015 2016 2015 Discount rate (a) 4.29 % 4.51 % 4.11 % 4.32 % Rate of compensation increase 3.71 % 3.78 % N/A N/A Assumed health care cost trend rates: Health care cost trend rate assumed for next year N/A N/A 6.25 % 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 2022 (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 weighted-average assumptions used to determine the net periodic cost were as follows for the years ended December 31: Pension Benefits Other Postretirement Benefits 2016 2015 2014 2016 2015 2014 Discount rate 4.51 % 4.11 % 4.88 % 4.32 % 3.96 % 4.69 % Expected rate of return on plan assets 7.65 % 7.80 % 8.10 % 6.96 % 7.06 % 7.07 % Rate of compensation increase 3.76 % 3.84 % 3.93 % 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 2016 d ollars: (In thousands) 1% Increase 1% Decrease Effect on other postretirement benefit obligation $ 1,175 $ (1,479) Effect on total service and interest cost components 54 (67) |
Fair Value of Plan Assets by Asset Category | The asset allocation for MGE's pension plans at the end of 2016 and 2015 , and the target al location for 2017 , by asset category, follows : Target Allocation Percentage of Plan Assets at Year End 2016 2015 Equity securities (a) 63.0 % 65.0 % 63.0 % Fixed income securities 30.0 % 27.0 % 29.0 % Real estate 7.0 % 8.0 % 8.0 % 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 . All of the fair values of MGE's plan assets are measured us ing net asset value, except for cash and cash equivalents which are considered level 1 investments. The fair values of MGE ' s plan assets by asset category are as follows: (In thousands) 2016 2015 Cash and Cash Equivalents $ 284 $ 300 Equity Securities: U.S. Large Cap 107,406 98,949 U.S. Mid Cap 25,966 22,446 U.S. Small Cap 33,836 27,561 International Blend 59,054 55,948 Fixed Income Securities: Short-Term Fund 4,318 3,388 High Yield Bond 17,978 16,225 Long Duration Bond 71,512 73,112 Real Estate 29,441 27,231 Insurance Continuance Fund 1,514 1,518 Fixed Rate Fund 3,801 4,208 Total $ 355,110 $ 330,886 |
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 2017 $ 13,468 $ 3,623 $ (232) $ 3,391 2018 14,618 3,998 (252) 3,746 2019 15,632 4,442 (274) 4,168 2020 16,429 4,932 (302) 4,630 2021 17,263 5,442 (326) 5,116 2022 - 2026 99,725 31,065 (2,122) 28,943 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) - Performance Units [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Director Incentive Agreement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Unit Graded Vesting Schedule | Units granted under the Director Incentive Plan are subject to a three- year vesting schedule. The most recent three years of units granted under this plan are as follows: Grant Date MGE Energy Units Granted January 20, 2017 4,032 January 15, 2016 3,773 January 16, 2015 3,794 |
Performance Unit Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Unit Graded Vesting Schedule | Units granted under the Performance Unit Plan are subject to a five-year vesting schedule. The most recent units granted under this plan are as follows: 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 |
Derivative and Hedging Instru52
Derivative and Hedging Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 December 31, 2015 Commodity derivative contracts 393,395 MWh 355,580 MWh Commodity derivative contracts 4,195,000 Dth 5,037,500 Dth FTRs 2,251 MW 2,000 MW PPA 3,250 MW 3,850 MW |
Fair Value of Derivative Instruments on the Balance Sheet | The following table summarizes the fair value of the derivative instruments on the consolidated balance sheet 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 statement purp oses, MGE Energy and MGE have netted instruments with the same counterparty under a master netting agreement as well as the netting of collateral. Derivative Assets Derivative Liabilities (In thousands) Balance Sheet Location December 31, 2016 Commodity derivative contracts (a) $ 1,227 $ 164 Other current assets Commodity derivative contracts (a) 157 54 Other deferred charges FTRs 143 - Other current assets PPA N/A 7,620 Derivative liability (current) PPA N/A 42,970 Derivative liability (long-term) December 31, 2015 Commodity derivative contracts (a) $ 146 $ 1,266 Derivative liability (current) Commodity derivative contracts (a) 144 70 Derivative liability (long-term) FTRs 234 - Other current assets PPA N/A 8,340 Derivative liability (current) PPA N/A 44,930 Derivative liability (long-term) (a ) As of December 31 , 2015 , collateral of $ 1.0 million was posted against and netted with derivative liability positions on the consolidated balance sheets. No collateral was posted against derivative positions as of December 31, 2016 . |
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, 2016 Commodity derivative contracts $ 1,384 $ (218) $ - $ 1,166 FTRs 143 - - 143 December 31, 2015 Commodity derivative contracts $ 290 $ (290) $ - $ - FTRs 234 - - 234 |
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, 2016 Commodity derivative contracts $ 218 $ (218) $ - $ - PPA 50,590 - - 50,590 December 31, 2015 Commodity derivative contracts $ 1,336 $ (290) $ (1,038) $ 8 PPA 53,270 - - 53,270 |
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, 2016 and 2015 , and the consolidated income statements for the years ended December 31, 2016 and 2015 . 2016 2015 Current and Long-Term Regulatory Asset Other Current Assets Current and Long-Term Regulatory Asset Other Current Assets (In thousands) Balance at January 1, $ 54,082 $ 1,208 $ 54,998 $ 1,001 Unrealized loss 1,575 - 8,586 - Realized (loss) gain reclassified to a deferred account (1,060) 1,060 (2,953) 2,953 Realized loss reclassified to income statement (5,316) (2,038) (6,549) (2,746) Balance at December 31, $ 49,281 $ 230 $ 54,082 $ 1,208 |
Derivative Gains and Losses in Income Statement | Realized Losses (Gains) 2016 2015 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 $ 1,154 $ 2,064 $ 2,236 $ 2,548 FTRs (445) - (309) - PPA 4,581 - 4,820 - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | As of December 31, 2016 , the future minimum c ommitments related to these purchase contracts were as follows: (In thousands) 2017 2018 2019 2020 2021 Thereafter Coal (a) $ 21,246 $ 14,763 $ 7,281 $ - $ - $ - Natural gas Transportation and storage (b) 20,859 20,645 19,483 15,226 8,443 23,331 Supply (c) 17,783 - - - - - Purchase power (d) 48,056 46,563 33,670 32,577 33,266 66,231 Other 14,902 324 143 - - - $ 122,846 $ 82,295 $ 60,577 $ 47,803 $ 41,709 $ 89,562 (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. Management expects to recover these costs in future customer rates. (c) These commitments include market-based pricing. Management expects to recover these costs in future customer rates. (d) MGE has several purchase power agreements to help meet future electric supply requirements. Management expects to recover these costs in future customer rates. In October 2008, MGE entered into a purchase power agreement to help meet future electric supply requirements. Under this agreement, MGE has agreed to purchase 50 M W of wind power from Osceola Windpower II, LLC, which is located in Iowa. This facility became operational in October 2008. MGE does not have any capacity payment commitments under this agreement. However, MGE is obligated to purchase its ratable share of the energy produced by the project. MGE's commitment related to its ratable share of energy produced by the project has been estimated and is included in the above numbers. Management expects to recover these costs in future customer rates. |
Operating Leases, Future Minimum Rental Payments | Future minimum rental payments at December 31, 2016 , u nder agreements classified as operating leases with noncancelable terms in excess of one year are a s follows: (In thousands) 2017 2018 2019 2020 2021 Thereafter Minimum lease payments $ 1,331 $ 959 $ 441 $ 310 $ 278 $ 8,020 |
Other Commitments | MGE has several other commitments related to various projects. Payments for these commitments are expected to be as follows: (In thousands) 2017 2018 2019 2020 2021 Thereafter Other commitments $ 1,317 $ 1,175 $ 511 $ 497 $ 440 $ 5,646 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Change in Asset Retirement Obligations | The following table summariz es the change in AROs . Amounts include conditional AROs. (In thousands) 2016 2015 Balance at January 1, $ 24,360 $ 19,744 Liabilities incurred (a) 1,303 2,380 Accretion expense 1,269 1,131 Liabilities settled (110) (124) Revisions in estimated cash flows (a) 64 1,229 Balance at December 31, $ 26,886 $ 24,360 (a) In the second quarter of 2015 , M GE 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, 2016 | |
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, 2016 Operating revenues $ 409,006 $ 134,543 $ 1,196 $ - $ - $ - $ 544,745 Interdepartmental revenues 1,912 21,378 43,930 - - (67,220) - Total operating revenues 410,918 155,921 45,126 - - (67,220) 544,745 Depreciation and amortization (29,122) (8,128) (7,372) - (24) - (44,646) Other operating expenses (310,941) (127,083) (155) (17) (895) 67,220 (371,871) Operating income (loss) 70,855 20,710 37,599 (17) (919) - 128,228 Other income, net 960 30 - 8,429 292 - 9,711 Interest (expense) income, net (11,147) (3,223) (5,768) - 272 - (19,866) Income (loss) before taxes 60,668 17,517 31,831 8,412 (355) - 118,073 Income tax (provision) benefit (20,115) (6,894) (12,775) (2,836) 107 - (42,513) Net income (loss) $ 40,553 $ 10,623 $ 19,056 $ 5,576 $ (248) $ - $ 75,560 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 (In thousands) MGE Electric Gas Non-Regulated Energy Transmission Investment (b) Consolidation/ Elimination Entries Consolidated Total Year Ended December 31, 2016 Operating revenues $ 409,030 $ 134,572 $ 1,196 $ - $ - $ 544,798 Interdepartmental revenues 1,888 21,349 43,930 - (67,167) - Total operating revenues 410,918 155,921 45,126 - (67,167) 544,798 Depreciation and amortization (29,122) (8,128) (7,372) - - (44,622) Other operating expenses (a) (330,924) (133,940) (12,930) - 67,167 (410,627) Operating income (a) 50,872 13,853 24,824 - - 89,549 Other (deductions) income, net (a) 828 (7) - 4,360 - 5,181 Interest expense, net (11,147) (3,223) (5,768) - - (20,138) Net income 40,553 10,623 19,056 4,360 - 74,592 Less: Net income attributable to noncontrolling interest, net of tax - - - - (23,358) (23,358) Net income attributable to MGE $ 40,553 $ 10,623 $ 19,056 $ 4,360 $ (23,358) $ 51,234 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 (a) (335,803) (135,124) (13,632) (19) 51,691 (432,887) Operating income (loss) (a) 47,293 13,635 26,091 (19) - 87,000 Other (deductions) income, net (a) 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 (a) (319,175) (204,597) (13,071) - 51,524 (485,319) Operating income (a) 49,250 19,181 25,497 - - 93,928 Other (deductions) income, net (a) 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 (a) Amounts are shown net of the related tax expense, consistent with the presentation on the MGE Consolidated Statements of Income. (b) As of July 31, 2016, MGE no longer consolidates MGE Energy's proportionate share of equity earnings in MGE Transco. See Footnote 4 for additional information. 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, 2016 $ 1,021,905 $ 318,603 $ 27,338 $ 271,277 $ 74,535 $ 465,202 $ (377,800) $ 1,801,060 December 31, 2015 (c) 974,235 298,435 49,753 277,858 69,470 434,868 (378,216) 1,726,403 December 31, 2014 (c) 945,790 306,106 41,124 280,542 67,697 438,898 (390,636) 1,689,521 Capital Expenditures: Year ended Dec. 31, 2016 $ 50,699 $ 29,136 $ - $ 3,824 $ - $ - $ - $ 83,659 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 Utility Consolidated (In thousands) MGE Electric Gas Assets not Allocated Non-regulated Energy Transmission Investment (d) Consolidation/ Elimination Entries Total Assets: December 31, 2016 $ 1,021,905 $ 318,603 $ 27,338 $ 271,227 $ - $ (221) $ 1,638,852 December 31, 2015 (c) 974,235 298,435 49,753 277,808 69,470 (187) 1,669,514 December 31, 2014 (c) 945,790 306,106 41,124 280,492 67,697 (6,521) 1,634,688 Capital Expenditures: Year ended Dec. 31, 2016 $ 50,699 $ 29,136 $ - $ 3,824 $ - $ - $ 83,659 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 (c) Reflects retrospective application of new accounting pronouncement related to debt issuance costs, see Footnote 19 for additional information. (d) In December 2016, MGE's ownership interest in MGE Transco was transferred to MGE Energy, see Footnote 4 for additional information. |
Quarterly Summary of Operatio56
Quarterly Summary of Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary of Operations | (In thousands, except per share amounts) Quarters Ended 2016 March 31 June 30 September 30 December 31 Operating revenues: Electric revenues $ 93,690 $ 100,615 $ 119,147 $ 96,750 Gas revenues 53,837 20,961 17,570 42,175 Total Operating Revenues 147,527 121,576 136,717 138,925 Operating expenses 117,996 93,364 90,190 114,967 Operating income 29,531 28,212 46,527 23,958 Interest and other income, net (2,558) (2,778) (2,933) (1,886) Income tax provision (9,945) (9,284) (15,714) (7,570) Earnings on common stock $ 17,028 $ 16,150 $ 27,880 $ 14,502 Earnings per common share $ 0.49 $ 0.47 $ 0.80 $ 0.42 Dividends per share $ 0.295 $ 0.295 $ 0.308 $ 0.308 2015 Operating revenues: Electric revenues $ 100,206 $ 101,457 $ 123,364 $ 95,264 Gas revenues 69,928 20,669 17,431 35,709 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 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 Accoun57
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Restricted Cash [Abstract] | ||||
Restricted cash | $ 3,700,000 | $ 2,900,000 | ||
Receivable - Margin Account [Abstract] | ||||
Receivable, margin account balance, net of collateral posted against derivative positions | 1,300,000 | 2,300,000 | ||
Derivative liability, collateral offset | $ 0 | 1,000,000 | ||
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 | 300,000 | ||
Purchased Gas Adjustment Clause | ||||
Purchased gas adjustment, over (under) collected | 900,000 | 800,000 | ||
Regional Transmission Organizations | ||||
Reduction to sales and purchased power expense from reporting RTO transactions from net basis reporting | 77,200,000 | 68,600,000 | $ 91,100,000 | |
Capitalized Software Costs | ||||
Capitalized software | 12,300,000 | 12,000,000 | ||
Capitalized software amortization | 3,000,000 | 2,200,000 | 1,600,000 | |
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 | $ 14,500,000 | $ 14,700,000 | $ 14,600,000 | |
Chattel Paper Agreements [Member] | ||||
Transfers and Servicing | ||||
Repurchase agreement, maximum exposure | 10,000,000 | |||
2017 [Member] | Chattel Paper Agreements [Member] | ||||
Transfers and Servicing | ||||
Repurchase-to-Maturity Transactions, loans due | 559,000 | |||
2018 [Member] | Chattel Paper Agreements [Member] | ||||
Transfers and Servicing | ||||
Repurchase-to-Maturity Transactions, loans due | 620,000 | |||
2019 [Member] | Chattel Paper Agreements [Member] | ||||
Transfers and Servicing | ||||
Repurchase-to-Maturity Transactions, loans due | 595,000 | |||
2020 [Member] | Chattel Paper Agreements [Member] | ||||
Transfers and Servicing | ||||
Repurchase-to-Maturity Transactions, loans due | 568,000 | |||
2021 [Member] | Chattel Paper Agreements [Member] | ||||
Transfers and Servicing | ||||
Repurchase-to-Maturity Transactions, loans due | 432,000 | |||
Thereafter [Member] | Chattel Paper Agreements [Member] | ||||
Transfers and Servicing | ||||
Repurchase-to-Maturity Transactions, loans due | $ 1,121,000 | |||
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% | 7.93% | 8.21% | |
Columbia Environmental Project, SCR [Member] | PSCW [Member] | ||||
Allowance for Funds Used During Construction | ||||
Authorized AFUDC rate | 100.00% | 100.00% | 100.00% | |
Electric [Member] | ||||
Property, Plant, and Equiptment | ||||
Composite straight-line depreciation rates | 2.50% | [1] | 2.60% | 2.60% |
Gas [Member] | ||||
Property, Plant, and Equiptment | ||||
Composite straight-line depreciation rates | 2.10% | [1] | 1.70% | 1.70% |
Non Regulated Energy [Member] | ||||
Property, Plant, and Equiptment | ||||
Composite straight-line depreciation rates | 2.30% | 2.40% | 2.40% | |
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% | |||
[1] | In December 2015, the PSCW approved new depreciation rates, which were implemented and became effective as of January 1, 2016. |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)MW | Dec. 31, 2015USD ($)MW | ||
Significant Balance Sheet Accounts Related to Interests in Variable Interest Entities | |||
Property, plant, and equipment, net | $ 1,245,269 | $ 1,217,094 | |
Construction work in progress | 36,790 | 26,351 | |
Accrued interest and taxes | 5,495 | 5,067 | |
Deferred income taxes | 383,813 | $ 360,785 | |
Long-term debt, gross, current and noncurrent | $ 391,242 | ||
Other Variable Interest Entities | |||
Other variable interest entities, purchase power agreement, plant capacity (in MW) | MW | 51 | 61 | |
MGE Power Elm Road [Member] | |||
Significant Balance Sheet Accounts Related to Interests in Variable Interest Entities | |||
Property, plant, and equipment, net | $ 175,502 | $ 177,904 | |
Construction work in progress | 3,241 | 2,400 | |
Deferred income taxes | 42,525 | 40,865 | |
Long-term debt | 62,021 | 64,622 | |
Noncontrolling interest | [1] | 80,362 | 79,113 |
Long-term debt, gross, current and noncurrent | 62,600 | ||
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 | $ 81,588 | 84,403 | |
Affiliate receivables, current and noncurrent | 4,769 | 5,295 | |
Deferred income taxes | 19,912 | 19,612 | |
Long-term debt | 44,932 | 46,510 | |
Noncontrolling interest | [1] | 35,303 | $ 37,603 |
Long-term debt, gross, current and noncurrent | 45,100 | ||
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 % o wned 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 Equipmen59
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | ||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, net | $ 1,245,269 | $ 1,217,094 | ||
Construction work in progress | 36,790 | 26,351 | ||
Total property, plant, and equipment | 1,282,059 | 1,243,445 | ||
Assets held for sale | 14,813 | 0 | ||
Plant related debt items | ||||
Long-term debt, gross | 391,242 | |||
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 | 1,566,794 | 1,531,864 | ||
Less: Accumulated depreciation and amortization | 579,965 | [2] | 578,410 | |
In-service utility plant, net | 986,829 | 953,454 | ||
Construction work in progress | 31,356 | [2] | 23,837 | |
Electric [Member] | Regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 1,171,004 | [2] | 1,147,701 | |
Gas [Member] | Regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 395,790 | 384,163 | ||
Non Regulated Energy [Member] | Non-regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 317,810 | 315,589 | ||
Less: Accumulated depreciation and amortization | 59,370 | 51,949 | ||
In-service utility plant, net | 258,440 | 263,640 | ||
Construction work in progress | 5,434 | 2,514 | ||
MGE [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, net | 1,244,648 | 1,216,415 | ||
Construction work in progress | 36,790 | 26,351 | ||
Total property, plant, and equipment | 1,281,438 | 1,242,766 | ||
Assets held for sale | 14,813 | 0 | ||
Plant related debt items | ||||
Long-term debt, gross | [3] | 391,242 | ||
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 | 1,566,822 | 1,531,893 | ||
Less: Accumulated depreciation and amortization | 579,965 | [2] | 578,410 | |
In-service utility plant, net | 986,857 | 953,483 | ||
Construction work in progress | 31,356 | [2] | 23,837 | |
MGE [Member] | Electric [Member] | Regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 1,171,021 | [2] | 1,147,718 | |
MGE [Member] | Gas [Member] | Regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 395,801 | 384,175 | ||
MGE [Member] | Non Regulated Energy [Member] | Non-regulated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
In-service utility plant, gross | 317,014 | 314,750 | ||
Less: Accumulated depreciation and amortization | 59,223 | 51,818 | ||
In-service utility plant, net | 257,791 | 262,932 | ||
Construction work in progress | $ 5,434 | $ 2,514 | ||
[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, 2016 , approximately $ 338.5 m illion was available for the payment of dividends under this covenant. | |||
[2] | As of December 31, 2016 , MGE has classified $ 14.8 million of Columbia assets as held-for-sale on the consolidated balance sheets related to the partial sale of plant assets to WPL . See Footnote 5.a. for further discussion. | |||
[3] | *Includes $ 45.1 million for MGE Power West Campus and $ 62.6 million for MGE Power Elm Road, all of which are consolidated wi th MGE's debt (see Footnote 2 for further information) . |
Investments (Details-1)
Investments (Details-1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Available-for-sale securities: | ||||
Cost basis | $ 2,216 | $ 2,225 | ||
Gross unrealized gains | 346 | 599 | ||
Gross unrealized losses | (8) | (2) | ||
Fair Value | 2,554 | 2,822 | ||
Equity method investments: | ||||
Equity method investments | 73,616 | 70,650 | ||
Other Investments | 120 | 159 | ||
Total investments | 76,290 | 73,631 | ||
Results of Investment Liquidation [Abstract] | ||||
Proceeds from sale of investments | 408 | 19 | $ 38 | |
Gain (loss) on sale of investments | 121 | 10 | 21 | |
ATC and ATC Holdco [Member] | ||||
Equity method investments: | ||||
Equity method investments | [1] | 72,458 | 69,466 | |
Other Equity Method Investments [Member] | ||||
Equity method investments: | ||||
Equity method investments | 1,158 | 1,184 | ||
MGE [Member] | ||||
Available-for-sale securities: | ||||
Cost basis | 455 | 480 | ||
Gross unrealized gains | 40 | 40 | ||
Gross unrealized losses | (8) | (2) | ||
Fair Value | 487 | 518 | ||
Equity method investments: | ||||
Equity method investments | 0 | 69,466 | ||
Other Investments | 0 | 0 | ||
Total investments | 487 | 69,984 | ||
Results of Investment Liquidation [Abstract] | ||||
Proceeds from sale of investments | 16 | 19 | 0 | |
Gain (loss) on sale of investments | (8) | 10 | $ 0 | |
MGE [Member] | ATC and ATC Holdco [Member] | ||||
Equity method investments: | ||||
Equity method investments | [1] | 0 | 69,466 | |
MGE [Member] | Other Equity Method Investments [Member] | ||||
Equity method investments: | ||||
Equity method investments | $ 0 | $ 0 | ||
[1] | MGE Transco holds an ownership interest in ATC, and MGEE Transco holds an ownership interest in ATC Holdco. In July 2016, MGE's ownership interest in MGE Transco declined below a majority, resulting in MGE Energy's investment in MGE Transco being deconsolidated from MGE's consolidated financial statements. See Footnote 8 for further discussion of noncontrolling interest. In December 2016, MGE's ownership interest in MGE Transco was transferred to MGE Energy, see "ATC and ATC Holdco" below f or additional information. |
Investments (Details-2)
Investments (Details-2) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 10, 2017 | Dec. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity earnings from investment in ATC | $ 8,428 | $ 7,728 | $ 9,150 | ||||
Dividend income from ATC | 7,926 | 6,645 | 7,740 | ||||
Capital contributions to investments | 2,958 | 1,053 | 2,185 | ||||
MGE Transco [Member] | ATC [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity earnings from investment in ATC | 8,670 | 7,728 | 9,150 | ||||
Dividend income from ATC | 7,926 | [1] | 6,645 | 7,740 | |||
Capital contributions to investments | $ 2,486 | $ 710 | 1,775 | ||||
Ownership interest in equity-method investee | 3.60% | 3.60% | |||||
Dividend receivable from ATC | $ 2,100 | ||||||
MGE Transco [Member] | ATC [Member] | Subsequent Event [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Capital contributions to investments | $ 1,400 | ||||||
MGEE Transco [Member] | ATC Holdco [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Ownership interest in equity-method investee | 4.00% | ||||||
MGEE Transco [Member] | ATC Holdco [Member] | Subsequent Event [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Capital contributions to investments | $ 200 | ||||||
MGE [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity earnings from investment in ATC | $ 6,366 | $ 7,728 | 9,150 | ||||
Dividend income from ATC | 5,032 | 6,645 | 7,740 | ||||
Capital contributions to investments | 1,598 | 710 | 1,775 | ||||
Dividend in kind to parent | $ 15,800 | 15,822 | 0 | 0 | |||
MGE Energy [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity earnings from investment in ATC | $ 75,581 | $ 71,306 | $ 81,811 | ||||
Dividend in kind to parent | $ (15,800) | ||||||
[1] | As of December 31, 2016, MGE Transco recorded a $2.1 million receivable from ATC for a cash dividend received in January 2017. |
Investments (Details-3)
Investments (Details-3) - ATC [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity method investment summarized income statement [Abstract] | |||
Operating revenues | $ 650,806 | $ 615,836 | $ 635,033 |
Operating expenses | (322,517) | (319,321) | (307,451) |
Other income, net | 3,225 | 1,176 | 117 |
Interest expense, net | (98,758) | (97,250) | (88,970) |
Earnings before members' income taxes | 232,756 | 200,441 | $ 238,729 |
Equity method investment balance sheet assets [Abstract] | |||
Current assets | 75,790 | 80,520 | |
Noncurrent assets | 4,312,893 | 3,948,265 | |
Total assets | 4,388,683 | 4,028,785 | |
Equity method investment balance sheet liabilities [Abstract] | |||
Current liabilities | 495,126 | 330,248 | |
Long-term debt | 1,865,302 | 1,790,718 | |
Other noncurrent liabilities | 271,495 | 244,991 | |
Members' equity | 1,756,760 | 1,662,828 | |
Total members' equity and liabilities | $ 4,388,683 | $ 4,028,785 |
Joint Plant Ownership (Details)
Joint Plant Ownership (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)operatingunitMW | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 01, 2017 | |
Jointly Owned Utility Plant Interests [Line Items] | ||||
Assets held for sale | $ 14,813 | $ 0 | ||
MGE [Member] | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Assets held for sale | 14,813 | 0 | ||
Columbia Units [Member] | ||||
Jointly Owned Plants, Net Plant Ownership [Abstract] | ||||
Plant | 270,898 | 273,762 | ||
Accumulated depreciation | (81,935) | (84,864) | ||
Property, plant, and equipment, net | 188,963 | 188,898 | ||
Construction work in progress | 21,120 | 17,110 | ||
Total property, plant, and equipment | $ 210,083 | 206,008 | ||
Columbia Units [Member] | MGE [Member] | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Jointly owned utility plant, proportion of total net summer generating capability | 30.00% | |||
Jointly owned utility plant, plant capacity (in MW) | MW | 225 | |||
Jointly owned utility plant, ownership interest | 22.00% | |||
Assets held for sale | $ 14,800 | |||
Jointly owned utility plant, fuel, operating, and maintenance expense | 39,500 | 38,200 | $ 28,100 | |
Columbia Units [Member] | MGE [Member] | Subsequent Event [Member] | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Jointly owned utility plant, ownership interest | 20.40% | |||
Elm Road Units [Member] | MGE [Member] | ||||
Jointly Owned Utility Plant Interests [Line Items] | ||||
Jointly owned utility plant, fuel, operating, and maintenance expense | $ 21,200 | 20,900 | 20,300 | |
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 | $ 204,292 | 202,326 | ||
Accumulated depreciation | (28,790) | (24,422) | ||
Property, plant, and equipment, net | 175,502 | 177,904 | ||
Construction work in progress | 3,241 | 2,400 | ||
Total property, plant, and equipment | $ 178,743 | 180,304 | ||
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 | $ 5,500 | 3,700 | $ 2,800 | |
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 | $ 111,330 | 111,141 | ||
Accumulated depreciation | (29,742) | (26,738) | ||
Property, plant, and equipment, net | 81,588 | 84,403 | ||
Construction work in progress | 1,009 | 113 | ||
Total property, plant, and equipment | $ 82,597 | $ 84,516 |
Regulatory Assets and Liabili64
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Regulatory Assets [Line Items] | ||
Regulatory Assets | $ 164,899 | $ 157,737 |
Regulatory Liabilities [Line Items] | ||
Regulatory Liabilities | 29,083 | 30,300 |
Conservation Costs Regulatory Liability [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liabilities | 0 | 231 |
Deferred Fuel Savings [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liabilities | 6,016 | 9,515 |
Elm Road Regulatory Liability [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liabilities | 3,473 | 643 |
Income Taxes [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liabilities | 1,302 | 1,559 |
Non-ARO Removal Cost [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liabilities | 16,415 | 17,137 |
Renewable Energy Credits [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liabilities | 339 | 327 |
Other Regulatory Liability [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liabilities | 1,538 | 888 |
Asset Retirement Obligation [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 5,563 | 4,849 |
Conservation Costs Regulatory Asset [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 444 | 0 |
Debt Related Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 10,211 | 10,672 |
Derivatives [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 49,281 | 54,083 |
Environmental Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 55 | 368 |
Tax Recovery AFUDC Equity [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 9,403 | 8,950 |
Unfunded Pension and Other Postretirement Plans Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | 86,475 | 78,181 |
Other Regulatory Asset [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | $ 3,467 | $ 634 |
Common Equity (Details)
Common Equity (Details) $ / shares in Units, $ in Thousands | Dec. 01, 2016USD ($) | Dec. 20, 2013 | Dec. 31, 2016$ / shares | Sep. 30, 2016$ / shares | Jun. 30, 2016$ / shares | Mar. 31, 2016$ / shares | Dec. 31, 2015$ / shares | Sep. 30, 2015$ / shares | Jun. 30, 2015$ / shares | Mar. 31, 2015$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares |
Class of Stock [Line Items] | |||||||||||||
Stock split declared December 20, 2013, ratio (3:2) | 1.5 | ||||||||||||
Common stock dividends declared | $ 41,775 | $ 40,043 | $ 38,429 | ||||||||||
Common stock dividends declared (in dollars per share) | $ / shares | $ 0.308 | $ 0.308 | $ 0.295 | $ 0.295 | $ 0.295 | $ 0.295 | $ 0.283 | $ 0.283 | $ 1.21 | $ 1.16 | $ 1.11 | ||
MGE [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Cash dividends paid to parent by MGE | $ 50,000 | $ 30,000 | $ 26,500 | ||||||||||
Dividend in kind to parent | $ 15,800 | $ 15,822 | $ 0 | $ 0 | |||||||||
MGE [Member] | Minimum [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividend restrictions, common equity ratio | 0.55 | ||||||||||||
MGE Energy [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividend in kind to parent | $ (15,800) |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
MGE [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest on balance sheet | $ 115,665 | $ 140,308 | ||
Net income attributable to noncontrolling interest, net of tax | 23,358 | 26,097 | $ 26,310 | |
MGE Transco [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest on balance sheet | [1] | 0 | 23,592 | |
Net income attributable to noncontrolling interest, net of tax | [1] | $ 1,410 | 2,172 | 2,484 |
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] | $ 35,303 | 37,603 | |
Net income attributable to noncontrolling interest, net of tax | [2] | $ 7,200 | 7,348 | 7,666 |
MGE Power Elm Road [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage by parent | 100.00% | |||
Noncontrolling interest on balance sheet | [2] | $ 80,362 | 79,113 | |
Net income attributable to noncontrolling interest, net of tax | [2] | $ 14,748 | $ 16,577 | $ 16,160 |
[1] | At December 31, 2016 , MGE Energy is the owner of MGE Transco. In July 2016, MGE's ownership interest in MGE Transco declined bel ow a majority as a result of continued funding of ATC capital contributions by MGE Energy. As a result of the change in majority owner ship in MGE Transco , MGE deconsolidated MGE Energy's proportionate share of the equity in MGE Transco. The change in conso lidation was applied prospectively by reducing its investment and noncontrolling interest on MGE's consolidated financial statements. The change had no effect on MGE Energy's consolidated financial statements; however, MGE Energy's proportionate share of t he equity and net income of MGE Transco classified as noncontrolling interest was deconsolidated from MGE ' s financial statements. No gain or loss was recognized in July 2016 due to MGE ceasing 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 % o wned 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 | Jan. 13, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 391,242 | ||||
Long-term debt due within one year | (4,333) | $ (4,266) | |||
Unamortized discount and debt issuance costs | (4,118) | (4,498) | |||
Total Long-Term Debt | 382,791 | 386,744 | [1] | ||
Long-Term Debt Maturities [Abstract] | |||||
Long term debt maturities in 2017 | 4,358 | ||||
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 2021 | 4,771 | ||||
Long term debt maturities in future years | 333,449 | ||||
Total | 391,242 | ||||
First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [2] | $ 1,200 | $ 1,200 | ||
Interest rate | 7.70% | 7.70% | |||
Debt covenant, allowable amount available for payment of dividends | $ 338,500 | ||||
Long-Term Debt Maturities [Abstract] | |||||
Total | [2] | 1,200 | $ 1,200 | ||
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% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | $ 19,300 | $ 19,300 | |||
Medium-Term Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 100,000 | 100,000 | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | 100,000 | 100,000 | |||
Medium-Term Notes [Member] | 5.25%, due 2017 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [3],[4] | $ 30,000 | $ 30,000 | ||
Interest rate | 5.25% | 5.25% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [3],[4] | $ 30,000 | $ 30,000 | ||
Medium-Term Notes [Member] | 6.12%, due 2028 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [4] | $ 20,000 | $ 20,000 | ||
Interest rate | 6.12% | 6.12% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [4] | $ 20,000 | $ 20,000 | ||
Medium-Term Notes [Member] | 7.12%, due 2032 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [4] | $ 25,000 | $ 25,000 | ||
Interest rate | 7.12% | 7.12% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [4] | $ 25,000 | $ 25,000 | ||
Medium-Term Notes [Member] | 6.247%, due 2037 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [4] | $ 25,000 | $ 25,000 | ||
Interest rate | 6.247% | 6.247% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [4] | $ 25,000 | $ 25,000 | ||
Other Long-Term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 270,742 | 275,008 | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | 270,742 | 275,008 | |||
Other Long-Term Debt [Member] | 5.59%, due 2018 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [5],[6] | $ 20,000 | $ 20,000 | ||
Interest rate | 5.59% | 5.59% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 20,000 | $ 20,000 | ||
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 | [5],[6] | $ 15,000 | $ 15,000 | ||
Interest rate | 3.38% | 3.38% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 15,000 | $ 15,000 | ||
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 | [5],[6] | $ 30,000 | $ 30,000 | ||
Interest rate | 3.09% | 3.09% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 30,000 | $ 30,000 | ||
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 | [5],[6] | $ 15,000 | $ 15,000 | ||
Interest rate | 3.29% | 3.29% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 15,000 | $ 15,000 | ||
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 | [5],[7] | $ 27,120 | $ 28,063 | ||
Interest rate | 5.68% | 5.68% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[7] | $ 27,120 | $ 28,063 | ||
Other Long-Term Debt [Member] | 5.19%, due 2033 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [5],[7] | $ 17,983 | $ 18,640 | ||
Interest rate | 5.19% | 5.19% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[7] | $ 17,983 | $ 18,640 | ||
Other Long-Term Debt [Member] | 5.26%, due 2040 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [5],[6] | $ 15,000 | $ 15,000 | ||
Interest rate | 5.26% | 5.26% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 15,000 | $ 15,000 | ||
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 | [5],[8] | $ 38,472 | $ 40,138 | ||
Interest rate | 5.04% | 5.04% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[8] | $ 38,472 | $ 40,138 | ||
Other Long-Term Debt [Member] | 4.74%, due 2041 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [5],[8] | $ 24,167 | $ 25,167 | ||
Interest rate | 4.74% | 4.74% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[8] | $ 24,167 | $ 25,167 | ||
Other Long-Term Debt [Member] | 4.38%, due 2042 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [5],[6] | $ 28,000 | $ 28,000 | ||
Interest rate | 4.38% | 4.38% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 28,000 | $ 28,000 | ||
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 | [5],[6] | $ 20,000 | $ 20,000 | ||
Interest rate | 4.42% | 4.42% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 20,000 | $ 20,000 | ||
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 | [5],[6] | $ 20,000 | $ 20,000 | ||
Interest rate | 4.47% | 4.47% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 20,000 | $ 20,000 | ||
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 | ||||
Other Long-Term Debt [Member] | Future Debt Issuance, 3.76% due 2052 | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 40,000 | ||||
Interest rate | 3.76% | ||||
Term | 35 years | ||||
Long-Term Debt Maturities [Abstract] | |||||
Total | $ 40,000 | ||||
MGE [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [9] | $ 391,242 | |||
Long-term debt due within one year | (4,333) | (4,266) | |||
Unamortized discount and debt issuance costs | (4,118) | (4,498) | |||
Total Long-Term Debt | 382,791 | 386,744 | [1] | ||
Long-Term Debt Maturities [Abstract] | |||||
Long term debt maturities in 2017 | [9] | 4,358 | |||
Long term debt maturities in 2018 | [9] | 24,452 | |||
Long term debt maturities in 2019 | [9] | 4,553 | |||
Long term debt maturities in 2020 | [9] | 19,659 | |||
Long term debt maturities in 2021 | [9] | 4,771 | |||
Long term debt maturities in future years | [9] | 333,449 | |||
Total | [9] | 391,242 | |||
MGE [Member] | First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [2] | $ 1,200 | $ 1,200 | ||
Interest rate | 7.70% | 7.70% | |||
Debt covenant, allowable amount available for payment of dividends | $ 338,500 | ||||
Long-Term Debt Maturities [Abstract] | |||||
Total | [2] | 1,200 | $ 1,200 | ||
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% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | $ 19,300 | $ 19,300 | |||
MGE [Member] | Medium-Term Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 100,000 | 100,000 | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | 100,000 | 100,000 | |||
MGE [Member] | Medium-Term Notes [Member] | 5.25%, due 2017 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [3],[4] | $ 30,000 | $ 30,000 | ||
Interest rate | 5.25% | 5.25% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [3],[4] | $ 30,000 | $ 30,000 | ||
MGE [Member] | Medium-Term Notes [Member] | 6.12%, due 2028 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [4] | $ 20,000 | $ 20,000 | ||
Interest rate | 6.12% | 6.12% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [4] | $ 20,000 | $ 20,000 | ||
MGE [Member] | Medium-Term Notes [Member] | 7.12%, due 2032 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [4] | $ 25,000 | $ 25,000 | ||
Interest rate | 7.12% | 7.12% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [4] | $ 25,000 | $ 25,000 | ||
MGE [Member] | Medium-Term Notes [Member] | 6.247%, due 2037 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [4] | $ 25,000 | $ 25,000 | ||
Interest rate | 6.247% | 6.247% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [4] | $ 25,000 | $ 25,000 | ||
MGE [Member] | Other Long-Term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 270,742 | 275,008 | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | 270,742 | 275,008 | |||
MGE [Member] | Other Long-Term Debt [Member] | 5.59%, due 2018 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [5],[6] | $ 20,000 | $ 20,000 | ||
Interest rate | 5.59% | 5.59% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 20,000 | $ 20,000 | ||
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 | [5],[6] | $ 15,000 | $ 15,000 | ||
Interest rate | 3.38% | 3.38% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 15,000 | $ 15,000 | ||
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 | [5],[6] | $ 30,000 | $ 30,000 | ||
Interest rate | 3.09% | 3.09% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 30,000 | $ 30,000 | ||
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 | [5],[6] | $ 15,000 | $ 15,000 | ||
Interest rate | 3.29% | 3.29% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 15,000 | $ 15,000 | ||
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 | [5],[7] | $ 27,120 | $ 28,063 | ||
Interest rate | 5.68% | 5.68% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[7] | $ 27,120 | $ 28,063 | ||
MGE [Member] | Other Long-Term Debt [Member] | 5.19%, due 2033 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [5],[7] | $ 17,983 | $ 18,640 | ||
Interest rate | 5.19% | 5.19% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[7] | $ 17,983 | $ 18,640 | ||
MGE [Member] | Other Long-Term Debt [Member] | 5.26%, due 2040 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [5],[6] | $ 15,000 | $ 15,000 | ||
Interest rate | 5.26% | 5.26% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 15,000 | $ 15,000 | ||
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 | [5],[8] | $ 38,472 | $ 40,138 | ||
Interest rate | 5.04% | 5.04% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[8] | $ 38,472 | $ 40,138 | ||
MGE [Member] | Other Long-Term Debt [Member] | 4.74%, due 2041 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [5],[8] | $ 24,167 | $ 25,167 | ||
Interest rate | 4.74% | 4.74% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[8] | $ 24,167 | $ 25,167 | ||
MGE [Member] | Other Long-Term Debt [Member] | 4.38%, due 2042 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | [5],[6] | $ 28,000 | $ 28,000 | ||
Interest rate | 4.38% | 4.38% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 28,000 | $ 28,000 | ||
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 | [5],[6] | $ 20,000 | $ 20,000 | ||
Interest rate | 4.42% | 4.42% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 20,000 | $ 20,000 | ||
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 | [5],[6] | $ 20,000 | $ 20,000 | ||
Interest rate | 4.47% | 4.47% | |||
Long-Term Debt Maturities [Abstract] | |||||
Total | [5],[6] | $ 20,000 | $ 20,000 | ||
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 [Member] | Other Long-Term Debt [Member] | Future Debt Issuance, 3.76% due 2052 | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 40,000 | ||||
Interest rate | 3.76% | ||||
Term | 35 years | ||||
Long-Term Debt Maturities [Abstract] | |||||
Total | $ 40,000 | ||||
MGE Power Elm Road [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 62,600 | ||||
Long-Term Debt Maturities [Abstract] | |||||
Total | $ 62,600 | ||||
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 | $ 45,100 | ||||
Long-Term Debt Maturities [Abstract] | |||||
Total | $ 45,100 | ||||
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] | Reflects retrospective application of new accounting pronouncement. See Footnote 19 for additional information. | ||||
[2] | 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, 2016 , approximately $ 338.5 m illion was available for the payment of dividends under this covenant. | ||||
[3] | MGE had $30 million of medium-term no tes mature in January 2017. MGE issued $40 million of new long-term unsecured debt on January 13, 2017, to refinance the maturing $30 million medium-term notes and assist with the financing of addi tional capital expenditures. The new debt carr ies an interest rate of 3.76% per annum over its 35-year term. The covenants of this debt are substantially consistent with MGE's existing unsecured long-term debt. In accordance with applicable accounting guid ance, MGE has classified the $30 million of maturing medium-term notes as long-term debt on the consolidated balance sheets for the year ended December 3 1 , 2016. | ||||
[4] | 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. | ||||
[5] | Unsecured notes issued pursuant to various Note Purchase Agreements with one or more purc hasers. 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. | ||||
[6] | Issued by MGE. Under that Note Purchase Agreement: (i) note holders have the right to require MGE to repu rchase their notes at par in the event of an acquisition of beneficial ownership of 30 % or more of the outstanding voting stock of MGE Energy, (ii) MGE must maintain a ratio of its consolidated indebtedness to consolidated total capitalization not to exceed a maximum of 65 % , and (iii) MGE cannot issue "Priority Debt" in an amount exceeding 20 % of its consolidated assets. Priority Debt is defined as any indebtedness of MGE secured by liens other than specified liens permitted by the Note Purchase Agreement and certain unsecured indebtedness of certain subsidiaries. As of December 31, 2016 , MGE was in compliance with the covenant requirements. | ||||
[7] | 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 rati o of not more tha n 0.65 to 1.00 . The notes are secured by a collateral assignment of lease payments that MGE is making to MGE Power West Campus for use of its ownership interest in the WCCF p ursuant to a long-term lease. As of December 31, 2016 , MGE Power West Campus was in compliance with the covenant requirements. | ||||
[8] | 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, 2016 , MGE Power Elm Road was in compliance with the covenant requirements. | ||||
[9] | *Includes $ 45.1 million for MGE Power West Campus and $ 62.6 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, Comme68
Notes Payable to Banks, Commercial Paper, and Lines of Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Short-term Debt [Line Items] | |||
Short-term debt outstanding | [1] | $ 0 | $ 0 |
Weighted-average interest rate | [1] | 0.00% | 0.00% |
Maximum short-term borrowings | [1] | $ 0 | $ 17,500 |
Average short-term borrowings | [1] | $ 0 | $ 1,511 |
Weighted-average interest rate during the year | [1] | 0.00% | 0.17% |
Line of Credit [Member] | |||
Short-term Debt [Line Items] | |||
Available lines of credit | [1] | $ 150,000 | $ 150,000 |
MGE [Member] | |||
Short-term Debt [Line Items] | |||
Short-term debt outstanding | $ 0 | $ 0 | |
Weighted-average interest rate | 0.00% | 0.00% | |
Maximum short-term borrowings | $ 0 | $ 17,500 | |
Average short-term borrowings | $ 0 | $ 1,511 | |
Weighted-average interest rate during the year | 0.00% | 0.17% | |
MGE [Member] | Line of Credit [Member] | |||
Short-term Debt [Line Items] | |||
Available lines of credit | $ 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 $50 million | Maximum [Member] | |||
Short-term Debt [Line Items] | |||
Debt to total capitalization ratio | 0.65 | ||
[1] | MGE Energy short-term borrowings include MGE Energy and MGE lines of credit and MGE commercial paper. |
Fair Value of Financial Instr69
Fair Value of Financial Instruments (Details-1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Liabilities: | |||
Unamortized discount and debt issuance costs, net | $ 4,118 | $ 4,498 | |
Carrying Amount [Member] | |||
Assets: | |||
Cash and cash equivalents | 95,959 | 81,384 | |
Liabilities: | |||
Long-Term debt | [1] | 391,242 | 395,508 |
Fair Value [Member] | |||
Assets: | |||
Cash and cash equivalents | 95,959 | 81,384 | |
Liabilities: | |||
Long-Term debt | [1] | 430,122 | 435,767 |
MGE [Member] | |||
Liabilities: | |||
Unamortized discount and debt issuance costs, net | 4,118 | 4,498 | |
MGE [Member] | Carrying Amount [Member] | |||
Assets: | |||
Cash and cash equivalents | 10,768 | 26,760 | |
Liabilities: | |||
Long-Term debt | [1] | 391,242 | 395,508 |
MGE [Member] | Fair Value [Member] | |||
Assets: | |||
Cash and cash equivalents | 10,768 | 26,760 | |
Liabilities: | |||
Long-Term debt | [1] | $ 430,122 | $ 435,767 |
[1] | Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $4.1 million and $4.5 million at December 31, 2016 and 2015, respectively. |
Fair Value of Financial Instr70
Fair Value of Financial Instruments (Details-2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets: | |||
Available-for-sale securities | $ 2,554 | $ 2,822 | |
Liabilities: | |||
Derivative liability, collateral offset | 0 | 1,000 | |
Recurring [Member] | |||
Assets: | |||
Derivative assets, net | 1,527 | 234 | |
Total Assets | 2,027 | 993 | |
Liabilities: | |||
Derivative liabilities, net | 50,808 | 54,316 | [1] |
Deferred compensation | 3,039 | 3,145 | |
Total Liabilities | 53,847 | 57,461 | |
Recurring [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 500 | 759 | |
Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative assets, net | 1,041 | 0 | |
Total Assets | 1,541 | 759 | |
Liabilities: | |||
Derivative liabilities, net | 16 | 581 | [1] |
Deferred compensation | 0 | 0 | |
Total Liabilities | 16 | 581 | |
Recurring [Member] | Level 1 [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 500 | 759 | |
Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative assets, net | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities, net | 0 | 0 | [1] |
Deferred compensation | 3,039 | 3,145 | |
Total Liabilities | 3,039 | 3,145 | |
Recurring [Member] | Level 2 [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative assets, net | 486 | 234 | |
Total Assets | 486 | 234 | |
Liabilities: | |||
Derivative liabilities, net | 50,792 | 53,735 | [1] |
Deferred compensation | 0 | 0 | |
Total Liabilities | 50,792 | 53,735 | |
Recurring [Member] | Level 3 [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 0 | 0 | |
MGE [Member] | |||
Assets: | |||
Available-for-sale securities | 487 | 518 | |
Liabilities: | |||
Derivative liability, collateral offset | 0 | 1,000 | |
MGE [Member] | Recurring [Member] | |||
Assets: | |||
Derivative assets, net | 1,527 | 234 | |
Total Assets | 1,670 | 382 | |
Liabilities: | |||
Derivative liabilities, net | 50,808 | 54,316 | [1] |
Deferred compensation | 3,039 | 3,145 | |
Total Liabilities | 53,847 | 57,461 | |
MGE [Member] | Recurring [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 143 | 148 | |
MGE [Member] | Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative assets, net | 1,041 | 0 | |
Total Assets | 1,184 | 148 | |
Liabilities: | |||
Derivative liabilities, net | 16 | 581 | [1] |
Deferred compensation | 0 | 0 | |
Total Liabilities | 16 | 581 | |
MGE [Member] | Recurring [Member] | Level 1 [Member] | Exchange-traded investments | |||
Assets: | |||
Available-for-sale securities | 143 | 148 | |
MGE [Member] | Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative assets, net | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities, net | 0 | 0 | [1] |
Deferred compensation | 3,039 | 3,145 | |
Total Liabilities | 3,039 | 3,145 | |
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 | 486 | 234 | |
Total Assets | 486 | 234 | |
Liabilities: | |||
Derivative liabilities, net | 50,792 | 53,735 | [1] |
Deferred compensation | 0 | 0 | |
Total Liabilities | 50,792 | 53,735 | |
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 $1.0 million of collateral that was posted against derivative positions with counterparties as of December 31, 2015. |
Fair Value of Financial Instr71
Fair Value of Financial Instruments (Details-3) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Basis adjustment: | ||
Basis adjustment - on peak | 91.90% | 96.90% |
Basis adjustment - off peak | 93.40% | 95.10% |
US Treasury Bills [Member] | ||
Deferred compensation plan | ||
Investment interest calculation, investment maturity period (26 weeks) | 182 days | |
Investment interest calculation, monthly compounding rate | 1.00% | |
Investment interest calculation, minimum annual rate compounded monthly | 7.00% | |
Minimum [Member] | ||
Counterparty fuel mix: | ||
Internal generation | 55.00% | 60.00% |
Purchased power | 25.00% | 25.00% |
Maximum [Member] | ||
Counterparty fuel mix: | ||
Internal generation | 75.00% | 75.00% |
Purchased power | 45.00% | 40.00% |
Fair Value of Financial Instr72
Fair Value of Financial Instruments (Details-4) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | $ (53,501) | $ (53,986) | $ (64,628) | |
Realized and unrealized gains (losses): | ||||
Included in regulatory liabilities | 3,195 | 484 | 10,642 | |
Included in other comprehensive income | 0 | 0 | 0 | |
Included in earnings | [1] | (5,347) | (6,635) | 5,129 |
Included in current assets | (142) | 0 | 0 | |
Purchases | 23,346 | 23,052 | 26,382 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (17,857) | (16,416) | (31,511) | |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | |
Ending balance | (50,306) | (53,501) | (53,986) | |
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] | (5,262) | (6,663) | 5,137 |
Cost Of Gas Sold Expense [Member] | ||||
Realized and unrealized gains (losses): | ||||
Included in earnings | [1] | $ (85) | $ 28 | $ (8) |
[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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income tax provision components [Abstract] | |||||||||||||||
Current payable: Federal | $ 16,908 | $ 16,837 | $ (891) | ||||||||||||
Current payable: State | 3,287 | 2,774 | (589) | ||||||||||||
Net-deferred: Federal | 17,571 | 15,951 | 39,284 | ||||||||||||
Net-deferred: State | 4,850 | 5,976 | 10,600 | ||||||||||||
Amortized investment tax credits | (103) | (175) | (219) | ||||||||||||
Total income tax provision | $ 7,570 | $ 15,714 | $ 9,284 | $ 9,945 | $ 7,417 | $ 15,351 | $ 8,008 | $ 10,587 | $ 42,513 | $ 41,363 | $ 48,185 | ||||
Reconciliation of tax provision to statutory federal income tax rate [Abstract] | |||||||||||||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||||||
State income taxes, net of federal benefit | 5.10% | 5.20% | 5.10% | ||||||||||||
Amortized investment tax credits | (0.10%) | (0.20%) | (0.20%) | ||||||||||||
Credit for electricity from wind energy | (1.60%) | (1.80%) | (1.70%) | ||||||||||||
Domestic manufacturing deduction | (1.30%) | (1.40%) | 0.00% | ||||||||||||
AFUDC equity, net | (0.20%) | (0.10%) | (0.80%) | ||||||||||||
Other, net, individually significant | (0.90%) | 0.00% | 0.10% | ||||||||||||
Effective income tax rate | 36.00% | 36.70% | 37.50% | ||||||||||||
Deferred tax liabilities (assets) on balance sheet [Abstract] | |||||||||||||||
Property-related | $ 344,721 | $ 327,918 | |||||||||||||
Investment in ATC | [1] | 71,898 | 38,213 | ||||||||||||
Bond transactions | 1,324 | 1,422 | |||||||||||||
Pension and other postretirement benefits | 63,516 | 57,697 | |||||||||||||
Derivatives | 20,304 | 21,660 | |||||||||||||
Tax deductible prepayments | 8,404 | 8,011 | |||||||||||||
Other deferred tax liabilities | 16,606 | 14,997 | |||||||||||||
Gross deferred income tax liabilities | 526,773 | 469,918 | |||||||||||||
Investment in ATC | [1] | (31,212) | 0 | ||||||||||||
Accrued expenses | (22,410) | (21,391) | |||||||||||||
Pension and other postretirement benefits | (48,860) | (46,582) | |||||||||||||
Deferred tax regulatory account | (903) | (1,047) | |||||||||||||
Derivatives | (20,304) | (21,660) | |||||||||||||
Other deferred tax assets | (19,340) | (18,523) | |||||||||||||
Gross deferred income tax assets | (143,029) | (109,203) | |||||||||||||
Less valuation allowance | 69 | 70 | |||||||||||||
Net deferred income tax assets | (142,960) | (109,133) | |||||||||||||
Deferred income taxes | 383,813 | 360,785 | |||||||||||||
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 | 2,528 | 2,365 | $ 2,528 | $ 2,365 | $ 2,363 | ||||||||||
Additions based on tax positions related to current year | 452 | 488 | 610 | ||||||||||||
Additions based on tax positions related to prior year | 39 | 520 | 618 | ||||||||||||
Reductions based on tax positions related to prior years | (532) | (845) | (1,226) | ||||||||||||
Unrecognized tax benefits, ending balance | 2,487 | 2,528 | 2,487 | 2,528 | 2,365 | ||||||||||
Interest on unrecognized tax benefits [Roll Forward] | |||||||||||||||
Accrued interest on unrecognized tax benefits, beginning balance | 311 | 92 | 311 | 92 | 101 | ||||||||||
Reduction in interest expense on uncertain tax positions | (27) | (102) | (97) | ||||||||||||
Interest expense on uncertain tax positions | 104 | 321 | 88 | ||||||||||||
Accrued interest on unrecognized tax benefits, ending balance | 388 | 311 | 388 | 311 | 92 | ||||||||||
Unrecognized Tax Benefits | |||||||||||||||
Unrecognized tax benefits | $ 2,487 | $ 2,528 | $ 2,528 | $ 2,365 | 2,528 | 2,528 | 2,365 | 2,487 | 2,528 | $ 2,365 | |||||
Unrecognized tax benefits permanent differences | 100 | 0 | $ 0 | ||||||||||||
MGE [Member] | |||||||||||||||
Income tax provision components [Abstract] | |||||||||||||||
Current payable: Federal | 17,521 | 19,295 | 637 | ||||||||||||
Current payable: State | 3,497 | 3,443 | (451) | ||||||||||||
Net-deferred: Federal | 16,391 | 13,538 | 38,553 | ||||||||||||
Net-deferred: State | 4,485 | 5,305 | 10,625 | ||||||||||||
Amortized investment tax credits | (103) | (175) | (219) | ||||||||||||
Total income tax provision | $ 41,791 | $ 41,406 | $ 49,145 | ||||||||||||
Reconciliation of tax provision to statutory federal income tax rate [Abstract] | |||||||||||||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||||||
State income taxes, net of federal benefit | 5.10% | 5.20% | 5.10% | ||||||||||||
Amortized investment tax credits | (0.10%) | (0.20%) | (0.20%) | ||||||||||||
Credit for electricity from wind energy | (1.70%) | (1.80%) | (1.70%) | ||||||||||||
Domestic manufacturing deduction | (1.30%) | (1.40%) | 0.00% | ||||||||||||
AFUDC equity, net | (0.20%) | (0.10%) | (0.80%) | ||||||||||||
Other, net, individually significant | (0.90%) | 0.00% | 0.10% | ||||||||||||
Effective income tax rate | 35.90% | 36.70% | 37.50% | ||||||||||||
Deferred tax liabilities (assets) on balance sheet [Abstract] | |||||||||||||||
Property-related | 344,630 | 327,822 | |||||||||||||
Investment in ATC | [1] | 0 | 30,382 | ||||||||||||
Bond transactions | 1,324 | 1,422 | |||||||||||||
Pension and other postretirement benefits | 63,516 | 57,697 | |||||||||||||
Derivatives | 20,304 | 21,660 | |||||||||||||
Tax deductible prepayments | 8,404 | 8,011 | |||||||||||||
Other deferred tax liabilities | 16,571 | 14,831 | |||||||||||||
Gross deferred income tax liabilities | 454,749 | 461,825 | |||||||||||||
Investment in ATC | [1] | 0 | 0 | ||||||||||||
Accrued expenses | (22,410) | (21,391) | |||||||||||||
Pension and other postretirement benefits | (48,860) | (46,582) | |||||||||||||
Deferred tax regulatory account | (903) | (1,047) | |||||||||||||
Derivatives | (20,304) | (21,660) | |||||||||||||
Other deferred tax assets | (19,224) | (18,589) | |||||||||||||
Gross deferred income tax assets | (111,701) | (109,269) | |||||||||||||
Less valuation allowance | 69 | 70 | |||||||||||||
Net deferred income tax assets | (111,632) | (109,199) | |||||||||||||
Deferred income taxes | 343,117 | $ 352,626 | |||||||||||||
Operating loss deductions and tax credit carryforwards [Abstract] | |||||||||||||||
State net tax operating loss deductions | $ 1,400 | ||||||||||||||
[1] | As of December 1, 2016, MGE transferred its ownership interest in ATC to MGE Energy, resulting in a deferred intercompany gain and a corresponding step-up in tax basis. |
Pension Plans and Other Postr74
Pension Plans and Other Postretirement Benefits (Details-1) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Defined contribution plans [Abstract] | |||||
Defined contribution costs | $ 3,100 | $ 2,800 | $ 2,500 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 330,886 | ||||
Fair value of plan assets at end of year | 355,110 | 330,886 | |||
Amounts recognized in the consolidated balance sheets to reflect funded status of plans [Abstract] | |||||
Long-term asset | 2,020 | 0 | |||
Long-term liability | (74,347) | (75,680) | |||
Pension Benefits [Member] | |||||
Change in benefit obligations [Roll Forward] | |||||
Net benefit obligation at beginning of year | 332,565 | 340,233 | |||
Service cost | 5,365 | 7,263 | 6,179 | ||
Interest cost | 12,393 | 13,766 | 13,574 | ||
Plan participants' contributions | 0 | 0 | |||
Actuarial loss (gain) | 11,412 | [1] | (17,576) | ||
Gross benefits paid | (12,179) | (11,121) | |||
Less: federal subsidy on benefits paid | 0 | 0 | |||
Benefit obligation at end of year | 349,556 | 332,565 | 340,233 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 290,716 | 288,548 | |||
Actual return on plan assets | 24,181 | 4,153 | |||
Employer contributions | 9,215 | 9,136 | |||
Plan participants' contributions | 0 | 0 | |||
Gross benefits paid | (12,179) | (11,121) | |||
Fair value of plan assets at end of year | 311,933 | 290,716 | 288,548 | ||
Funded Status at December 31 | (37,623) | (41,849) | |||
Accumulated benefit obligation | 319,900 | 302,500 | |||
Amounts recognized in the consolidated balance sheets to reflect funded status of plans [Abstract] | |||||
Long-term asset | 2,020 | 0 | |||
Current liability | (972) | (966) | |||
Long-term liability | (38,671) | (40,883) | |||
Net liability | (37,623) | (41,849) | |||
Amounts recognized in the consolidated balance sheets as regulatory asset [Abstract] | |||||
Net actuarial loss | 84,656 | 80,660 | |||
Prior service (credit) cost | (446) | (436) | |||
Transition obligation | 0 | 0 | |||
Total | 84,210 | 80,224 | |||
Projected benefit obligation in excess of plan assets [Abstract] | |||||
Projected benefit obligation with projected benefit obligation in excess of plan assets, end of year | 227,739 | 332,565 | |||
Fair value of plan assets with projected benefit obligation in excess of plan assets, end of year | 188,096 | 290,716 | |||
Accumulated benefit obligation in excess of plan assets [Abstract] | |||||
Accumulated benefit obligation with accumulated benefit obligation in excess of plan assets, end of year | 26,927 | 24,606 | |||
Fair value of plan assets with accumulated benefit obligation in excess of plan assets, end of year | 0 | 0 | |||
Postretirement Benefits [Member] | |||||
Change in benefit obligations [Roll Forward] | |||||
Net benefit obligation at beginning of year | 74,935 | 78,478 | |||
Service cost | 1,271 | 1,559 | 1,339 | ||
Interest cost | 2,681 | 3,075 | 3,166 | ||
Plan participants' contributions | 767 | 741 | |||
Actuarial loss (gain) | 2,638 | [1] | (5,828) | ||
Gross benefits paid | (3,637) | (3,280) | |||
Less: federal subsidy on benefits paid | [2] | 187 | 190 | ||
Benefit obligation at end of year | 78,842 | 74,935 | 78,478 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 40,170 | 38,952 | |||
Actual return on plan assets | 3,236 | 603 | |||
Employer contributions | 2,641 | 3,154 | |||
Plan participants' contributions | 767 | 741 | |||
Gross benefits paid | (3,637) | (3,280) | |||
Fair value of plan assets at end of year | 43,177 | 40,170 | $ 38,952 | ||
Funded Status at December 31 | (35,665) | (34,765) | |||
Medicare subsidy due to MGE | 200 | 200 | |||
Amounts recognized in the consolidated balance sheets to reflect funded status of plans [Abstract] | |||||
Long-term asset | 0 | 0 | |||
Current liability | 0 | (52) | |||
Long-term liability | (35,665) | (34,713) | |||
Net liability | (35,665) | (34,765) | |||
Amounts recognized in the consolidated balance sheets as regulatory asset [Abstract] | |||||
Net actuarial loss | 14,728 | 13,086 | |||
Prior service (credit) cost | (12,489) | (15,158) | |||
Transition obligation | 26 | 29 | |||
Total | $ 2,265 | $ (2,043) | |||
[1] | In 2016, lower discount rates were the main driver of 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, 2016 and 2015 , the subsidy due to MGE was $ 0.2 million. |
Pension Plans and Other Postr75
Pension Plans and Other Postretirement Benefits (Details-2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits [Member] | |||
Components of Net Periodic Cost (Benefit) | |||
Service cost | $ 5,365 | $ 7,263 | $ 6,179 |
Interest cost | 12,393 | 13,766 | 13,574 |
Expected return on assets | (22,365) | (22,682) | (22,051) |
Amortization of: | |||
Transition obligation | 0 | 0 | 0 |
Prior service cost (benefit) | 10 | 23 | 204 |
Actuarial loss | 5,600 | 5,395 | 703 |
Net periodic cost (benefit) | 1,003 | 3,765 | (1,391) |
Postretirement Benefits [Member] | |||
Components of Net Periodic Cost (Benefit) | |||
Service cost | 1,271 | 1,559 | 1,339 |
Interest cost | 2,681 | 3,075 | 3,166 |
Expected return on assets | (2,829) | (2,812) | (2,615) |
Amortization of: | |||
Transition obligation | 3 | 3 | 3 |
Prior service cost (benefit) | (2,669) | (2,669) | (2,669) |
Actuarial loss | 589 | 953 | 252 |
Net periodic cost (benefit) | $ (954) | $ 109 | $ (524) |
Pension Plans and Other Postr76
Pension Plans and Other Postretirement Benefits (Details-3) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Pension Benefits [Member] | ||||
Weighted-average assumptions used to determine benefit obligations: | ||||
Discount rate | [1] | 4.29% | 4.51% | |
Rate of compensation increase | 3.71% | 3.78% | ||
Weighted-average assumptions used to determine net periodic cost: | ||||
Discount rate | 4.51% | 4.11% | 4.88% | |
Long-term rate of return | 7.65% | 7.80% | 8.10% | |
Rate of compensation increase | 3.76% | 3.84% | 3.93% | |
Postretirement Benefits [Member] | ||||
Weighted-average assumptions used to determine benefit obligations: | ||||
Discount rate | [1] | 4.11% | 4.32% | |
Assumed health care cost trend rates: | ||||
Health care cost trend rate assumed for next year | 6.25% | 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 | 2,022 | ||
Weighted-average assumptions used to determine net periodic cost: | ||||
Discount rate | 4.32% | 3.96% | 4.69% | |
Long-term rate of return | 6.96% | 7.06% | 7.07% | |
How assumed 1% increase or decrease in health care cost trends could impact postretirement benefits [Abstract] | ||||
Effect on other postretirement benefit obligation - 1% increase | $ 1,175 | |||
Effect on other postretirement benefit obligation - 1% decrease | (1,479) | |||
Effect on total service and interest cost components - 1% increase | 54 | |||
Effect on total service and interest cost components - 1% decrease | $ (67) | |||
[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 Postr77
Pension Plans and Other Postretirement Benefits (Details-4) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)concentration | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | $ 355,110 | $ 330,886 | ||
Real Estate [Member] | ||||
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | $ 29,441 | $ 27,231 | ||
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 | $ 311,933 | $ 290,716 | $ 288,548 | |
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 | 65.00% | 63.00% | ||
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 | 27.00% | 29.00% | ||
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% | 8.00% | ||
Postretirement Benefits [Member] | ||||
Other postretirement benefits [Abstract] | ||||
Fair value of plan assets | $ 43,177 | $ 40,170 | $ 38,952 | |
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 | $ 37,000 | $ 34,100 | ||
[1] | Target allocations for equity securities are broken out as follows: 45.5 % United States equity, 17.5 % non- United States equity . |
Pension Plans and Other Postr78
Pension Plans and Other Postretirement Benefits (Details-5) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 355,110 | $ 330,886 |
Cash and Cash Equivalents [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 284 | 300 |
Equity Securities [Member] | U.S. Large Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 107,406 | 98,949 |
Equity Securities [Member] | U.S. Mid Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 25,966 | 22,446 |
Equity Securities [Member] | U.S. Small Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 33,836 | 27,561 |
Equity Securities [Member] | International Blend [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 59,054 | 55,948 |
Fixed Income Securities [Member] | Short-Term Fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,318 | 3,388 |
Fixed Income Securities [Member] | High Yield Bond [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 17,978 | 16,225 |
Fixed Income Securities [Member] | Long Duration Bond [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 71,512 | 73,112 |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29,441 | 27,231 |
Insurance Continuance Fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,514 | 1,518 |
Fixed Rate Fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 3,801 | $ 4,208 |
Pension Plans and Other Postr79
Pension Plans and Other Postretirement Benefits (Details-6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Expected Cash Flows | |||
Expected employer contributions, 2017 | $ 6,000 | ||
Expected employer contributions, 2018 | 0 | ||
Cash contributions to pension and other postretirement plans | 14,452 | $ 13,676 | $ 3,321 |
Pension Benefits [Member] | |||
Benefit Payments, Gross | |||
Defined benefit plan expected gross future benefit payments, 2017 | 13,468 | ||
Defined benefit plan expected gross future benefit payments, 2018 | 14,618 | ||
Defined benefit plan expected gross future benefit payments, 2019 | 15,632 | ||
Defined benefit plan expected gross future benefit payments, 2020 | 16,429 | ||
Defined benefit plan expected gross future benefit payments, 2021 | 17,263 | ||
Defined benefit plan expected gross future benefit payments, 2022-2026 | 99,725 | ||
Postretirement Benefits [Member] | |||
Benefit Payments, Gross | |||
Defined benefit plan expected gross future benefit payments, 2017 | 3,623 | ||
Defined benefit plan expected gross future benefit payments, 2018 | 3,998 | ||
Defined benefit plan expected gross future benefit payments, 2019 | 4,442 | ||
Defined benefit plan expected gross future benefit payments, 2020 | 4,932 | ||
Defined benefit plan expected gross future benefit payments, 2021 | 5,442 | ||
Defined benefit plan expected gross future benefit payments, 2022-2026 | 31,065 | ||
Medicare Part D Subsidies | |||
Expected Medicare Part D Subsidies, 2017 | (232) | ||
Expected Medicare Part D Subsidies, 2018 | (252) | ||
Expected Medicare Part D Subsidies, 2019 | (274) | ||
Expected Medicare Part D Subsidies, 2020 | (302) | ||
Expected Medicare Part D Subsidies, 2021 | (326) | ||
Expected Medicare Part D Subsidies, 2022-2026 | (2,122) | ||
Benefit Payments, Net | |||
Defined benefit plan expected net future benefit payments, 2017 | 3,391 | ||
Defined benefit plan expected net future benefit payments, 2018 | 3,746 | ||
Defined benefit plan expected net future benefit payments, 2019 | 4,168 | ||
Defined benefit plan expected net future benefit payments, 2020 | 4,630 | ||
Defined benefit plan expected net future benefit payments, 2021 | 5,116 | ||
Defined benefit plan expected net future benefit payments, 2022-2026 | $ 28,943 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | Jan. 20, 2017 | Feb. 19, 2016 | Jan. 15, 2016 | Feb. 20, 2015 | Jan. 16, 2015 | Feb. 21, 2014 | Feb. 15, 2013 | Jan. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense | $ 3.1 | $ 1 | $ 2 | ||||||||
Awards forfeited during period, value | $ 0 | $ 0.2 | $ 0 | ||||||||
Awards forfeited during period, units | 0 | 4,676 | 0 | ||||||||
Outstanding awards vested during period | $ 6.9 | ||||||||||
Performance Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Cash payments distributed related to awards previously granted and now payable | $ 1.2 | ||||||||||
Performance Unit Plan [Member] | Performance Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period | 5 years | ||||||||||
Awards granted (in units) | 19,055 | 18,948 | 21,991 | 22,884 | |||||||
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) | 3,773 | 3,794 | |||||||||
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) | 4,032 |
Derivative and Hedging Instru81
Derivative and Hedging Instruments (Details-1) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)DthMWhMW | Dec. 31, 2015USD ($)DthMWhMW | Dec. 31, 2014USD ($) | ||
Derivative Fair Values [Abstract] | ||||
Derivative, right to reclaim collateral (receivable) | $ 0 | $ 1,000 | ||
Other Current Assets [Member] | ||||
Derivative Fair Values [Abstract] | ||||
Derivative fair value, net | 230 | 1,208 | $ 1,001 | |
Commodity Contracts and Financial Transimission Rights [Member] | ||||
Derivative Fair Values [Abstract] | ||||
Derivative fair value, net | $ 1,300 | $ (800) | ||
Commodity Derivative Contracts [Member] | ||||
Gross Notional Volume of Open Derivatives | ||||
Notional amount, energy measure (in MWh) | MWh | 393,395 | 355,580 | ||
Notional amount, decatherm measure (in Dth) | Dth | 4,195,000 | 5,037,500 | ||
Derivative Fair Values [Abstract] | ||||
Asset Derivatives, fair value, gross basis | $ 1,384 | $ 290 | ||
Liability Derivatives, fair value, gross basis | 218 | 1,336 | ||
Commodity Derivative Contracts [Member] | Other Current Assets [Member] | ||||
Derivative Fair Values [Abstract] | ||||
Asset Derivatives, fair value, gross basis | [1] | 1,227 | ||
Liability Derivatives, fair value, gross basis | [1] | 164 | ||
Commodity Derivative Contracts [Member] | Other Deferred Charges [Member] | ||||
Derivative Fair Values [Abstract] | ||||
Asset Derivatives, fair value, gross basis | [1] | 157 | ||
Liability Derivatives, fair value, gross basis | [1] | $ 54 | ||
Commodity Derivative Contracts [Member] | Derivative Liability (Current) [Member] | ||||
Derivative Fair Values [Abstract] | ||||
Asset Derivatives, fair value, gross basis | [1] | 146 | ||
Liability Derivatives, fair value, gross basis | [1] | 1,266 | ||
Commodity Derivative Contracts [Member] | Derivative Liability (Long-term) [Member] | ||||
Derivative Fair Values [Abstract] | ||||
Asset Derivatives, fair value, gross basis | [1] | 144 | ||
Liability Derivatives, fair value, gross basis | [1] | $ 70 | ||
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 | 2,251 | 2,000 | ||
Derivative Fair Values [Abstract] | ||||
Asset Derivatives, fair value, gross basis | $ 143 | $ 234 | ||
Financial Transmission Rights [Member] | Other Current Assets [Member] | ||||
Derivative Fair Values [Abstract] | ||||
Asset Derivatives, fair value, gross basis | 143 | 234 | ||
Liability Derivatives, fair value, gross basis | $ 0 | $ 0 | ||
PPA [Member] | ||||
Gross Notional Volume of Open Derivatives | ||||
Notional amount, power measure (in MW) | MW | 3,250 | 3,850 | ||
Derivative Fair Values [Abstract] | ||||
Derivative fair value, net | $ (50,600) | $ (53,300) | ||
Liability Derivatives, fair value, gross basis | 50,590 | 53,270 | ||
PPA [Member] | Derivative Liability (Current) [Member] | ||||
Derivative Fair Values [Abstract] | ||||
Liability Derivatives, fair value, gross basis | 7,620 | 8,340 | ||
PPA [Member] | Derivative Liability (Long-term) [Member] | ||||
Derivative Fair Values [Abstract] | ||||
Liability Derivatives, fair value, gross basis | $ 42,970 | $ 44,930 | ||
[1] | As of December 31 , 2015 , collateral of $ 1.0 million was posted against and netted with derivative liability positions on the consolidated balance sheets. No collateral was posted against derivative positions as of December 31, 2016 . |
Derivative and Hedging Instru82
Derivative and Hedging Instruments (Details-2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Commodity Derivative Contracts [Member] | ||
Offsetting Assets [Line Items] | ||
Gross amounts | $ 1,384 | $ 290 |
Gross amounts offset in balance sheet | (218) | (290) |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | 1,166 | 0 |
Financial Transmission Rights [Member] | ||
Offsetting Assets [Line Items] | ||
Gross amounts | 143 | 234 |
Gross amounts offset in balance sheet | 0 | 0 |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | $ 143 | $ 234 |
Derivative and Hedging Instru83
Derivative and Hedging Instruments (Details-3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Collateral posted against derivative positions | $ 0 | $ (1,000) |
Commodity Derivative Contracts [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts | 218 | 1,336 |
Gross amounts offset in balance sheet | (218) | (290) |
Collateral posted against derivative positions | 0 | (1,038) |
Net amount presented in the balance sheet | 0 | 8 |
PPA [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts | 50,590 | 53,270 |
Gross amounts offset in balance sheet | 0 | 0 |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in the balance sheet | $ 50,590 | $ 53,270 |
Derivative and Hedging Instru84
Derivative and Hedging Instruments (Details-4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Current and Long-Term Regulatory Asset [Member] | ||
Change in Derivative Fair Value [Roll Forward] | ||
Beginning balance | $ 54,082 | $ 54,998 |
Unrealized loss | 1,575 | 8,586 |
Realized (loss) gain reclassified to a deferred account | (1,060) | (2,953) |
Realized loss reclassified to income statement | (5,316) | (6,549) |
Ending balance | 49,281 | 54,082 |
Other Current Assets [Member] | ||
Change in Derivative Fair Value [Roll Forward] | ||
Beginning balance | 1,208 | 1,001 |
Unrealized loss | 0 | 0 |
Realized (loss) gain reclassified to a deferred account | 1,060 | 2,953 |
Realized loss reclassified to income statement | (2,038) | (2,746) |
Ending balance | $ 230 | $ 1,208 |
Derivative and Hedging Instru85
Derivative and Hedging Instruments (Details-5) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)counterparty | Dec. 31, 2015USD ($) | |
Counterparties in net liability position or default [Abstract] | ||
Derivative, net liability position of counterparties | $ 0 | $ 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 | $ 1,154 | 2,236 |
Commodity Derivative Contracts [Member] | Cost Of Gas Sold Expense [Member] | ||
Realized losses (gains) on income statement [Line Items] | ||
Realized losses (gains) on income statement | 2,064 | 2,548 |
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 | (445) | (309) |
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 | 4,581 | 4,820 |
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 ($) | 1 Months Ended | 4 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2016 | Jan. 31, 2016 | Aug. 31, 2015 | |
Rate Proceedings [Abstract] | |||||||||
Authorized return on equity, percentage | 10.20% | 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% | ||||||||
Electric Fuel Monitored Costs, 2016 [Member] | |||||||||
Fuel Rules [Abstract] | |||||||||
Change in fuel rules monitored costs | $ (14,800,000) | ||||||||
Deferred fuel rules monitored costs | $ 5,600,000 | ||||||||
Fuel Rules Credit ($0.00256/kWh), 2015/2016 [Member] | |||||||||
Fuel Rules [Abstract] | |||||||||
Electric fuel credit (per kWh) | $ 0.00256 | 0.00256 | |||||||
Electric fuel credit ($) | $ 10,900,000 | ||||||||
Return of electric fuel credit, total | $ 2,600,000 | $ 8,300,000 | |||||||
Fuel Rules Refund, 2015/2016 [Member] | Electric Fuel Monitored Costs, 2016 [Member] | |||||||||
Fuel Rules [Abstract] | |||||||||
Electric fuel credit ($) | $ 15,700,000 | ||||||||
Return of electric fuel credit, total | $ 15,500,000 | ||||||||
Fuel Rules Credit, 2012 [Member] | |||||||||
Fuel Rules [Abstract] | |||||||||
Return of electric fuel credit, total | $ 6,300,000 | ||||||||
Approved Future Rate Matters [Member] | |||||||||
Rate Proceedings [Abstract] | |||||||||
Approved equity capital structure, percentage | 57.20% | ||||||||
Authorized return on equity, percentage | 9.80% | ||||||||
Columbia Environmental Projects [Member] | |||||||||
Rate Proceedings [Abstract] | |||||||||
Authorized AFUDC rate | 100.00% | 100.00% | |||||||
Electric Rate Proceeding [Member] | |||||||||
Rate Proceedings [Abstract] | |||||||||
Authorized rate increase (decrease), percentage | 0.00% | 3.80% | 0.00% | ||||||
Authorized rate increase (decrease), amount | $ 0 | $ 15,400,000 | $ 0 | ||||||
Electric Rate Proceeding [Member] | Approved Future Rate Matters [Member] | |||||||||
Rate Proceedings [Abstract] | |||||||||
Authorized rate increase (decrease), percentage | (0.80%) | ||||||||
Authorized rate increase (decrease), amount | $ (3,300,000) | ||||||||
Gas Rate Proceeding [Member] | |||||||||
Rate Proceedings [Abstract] | |||||||||
Authorized rate increase (decrease), percentage | 0.00% | (2.00%) | 0.00% | ||||||
Authorized rate increase (decrease), amount | $ 0 | $ (3,800,000) | $ 0 | ||||||
Gas Rate Proceeding [Member] | Approved Future Rate Matters [Member] | |||||||||
Rate Proceedings [Abstract] | |||||||||
Authorized rate increase (decrease), percentage | 1.90% | ||||||||
Authorized rate increase (decrease), amount | $ 3,100,000 |
Commitments and Contingencies87
Commitments and Contingencies (Details-1) $ in Thousands | Dec. 31, 2016USD ($)MW | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | $ 122,846 | |
Purchase obligation due in second year | 82,295 | |
Purchase obligation due in third year | 60,577 | |
Purchase obligation due in fourth year | 47,803 | |
Purchase obligation due in fifth year | 41,709 | |
Purchase obligation due thereafter | 89,562 | |
Coal [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 21,246 | [1] |
Purchase obligation due in second year | 14,763 | [1] |
Purchase obligation due in third year | 7,281 | [1] |
Purchase obligation due in fourth year | 0 | [1] |
Purchase obligation due in fifth year | 0 | [1] |
Purchase obligation due thereafter | 0 | [1] |
Natural Gas, Transportation and Storage [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 20,859 | [2] |
Purchase obligation due in second year | 20,645 | [2] |
Purchase obligation due in third year | 19,483 | [2] |
Purchase obligation due in fourth year | 15,226 | [2] |
Purchase obligation due in fifth year | 8,443 | [2] |
Purchase obligation due thereafter | 23,331 | [2] |
Natural Gas, Supply [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 17,783 | [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 obligation due thereafter | 0 | [3] |
Purchase Power [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Purchase obligation due in next twelve months | 48,056 | [4] |
Purchase obligation due in second year | 46,563 | [4] |
Purchase obligation due in third year | 33,670 | [4] |
Purchase obligation due in fourth year | 32,577 | [4] |
Purchase obligation due in fifth year | 33,266 | [4] |
Purchase obligation due thereafter | $ 66,231 | [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 | $ 14,902 | |
Purchase obligation due in second year | 324 | |
Purchase obligation due in third year | 143 | |
Purchase obligation due in fourth year | 0 | |
Purchase obligation due in fifth year | 0 | |
Purchase obligation due thereafter | $ 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. Management expects to recover these costs in future customer rates. | |
[3] | These commitments include market-based pricing. Management expects to recover these costs in future customer rates. | |
[4] | MGE has several purchase power agreements to help meet future electric supply requirements. Management expects to recover these costs in future customer rates. In 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 M W of wind power from Osceola Windpower II, LLC, which is located in Iowa. This facility became operational in October 2008. MGE does not have any capacity payment commitments under this agreement. However, MGE is obligated to purchase its ratable share of the energy produced by the project. MGE's commitment related to its ratable share of energy produced by the project has been estimated and is included in the above numbers. Management expects to recover these costs in future customer rates. |
Commitments and Contingencies88
Commitments and Contingencies (Details-2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases, Future Minimum Rental Payments [Abstract] | |||
Minimum lease payments, 2017 | $ 1,331 | ||
Minimum lease payments, 2018 | 959 | ||
Minimum lease payments, 2019 | 441 | ||
Minimum lease payments, 2020 | 310 | ||
Minimum lease payments, 2021 | 278 | ||
Minimum lease payments, Thereafter | 8,020 | ||
Rental expense under operating leases | $ 2,000 | $ 2,100 | $ 2,500 |
Operating leases, renewal option term (one year or less) | 1 year |
Commitments and Contingencies89
Commitments and Contingencies (Details-3) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)ppbpollutantstateMW | |
Columbia Environmental Project, SCR [Member] | MGE [Member] | Minimum [Member] | |
Columbia | |
Share of projected SCR project cost | $ | $ 22 |
Columbia Environmental Project, SCR [Member] | MGE [Member] | Maximum [Member] | |
Columbia | |
Share of projected SCR project cost | $ | $ 24 |
Wisconsin Energy Efficiency and Renewables Act [Member] | |
Energy Efficiency and Renewables | |
Minimum electricity generated from renewable resources | 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 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 Cross State Air Pollution Rule | |
Number of states incorporating 2008 ozone NAAQS attainment levels | state | 22 |
Commitments and Contingencies90
Commitments and Contingencies (Details-4) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
MGE [Member] | |
Other Commitments [Line Items] | |
Other commitments, due in 2017 | $ 1,317 |
Other commitments, due in 2018 | 1,175 |
Other commitments, due in 2019 | 511 |
Other commitments, due in 2020 | 497 |
Other commitments, due in 2021 | 440 |
Other commitment, due thereafter | 5,646 |
MGE Energy [Member] | Investments in Non Public Entities, Capital Infusions [Member] | |
Other Commitments [Line Items] | |
Other commitment, initial agreed upon commitment total | $ 11,400 |
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 | $ 400 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Asset Retirement Obligations [Roll Forward] | ||||
Asset retirement obligation, beginning balance | $ 24,360 | $ 19,744 | ||
Liabilities incurred | 1,303 | 2,380 | [1] | |
Accretion expense | 1,269 | 1,131 | ||
Liabilities settled | (110) | (124) | ||
Revisions in estimated cash flows | 64 | 1,229 | [1] | |
Asset retirement obligation, ending balance | $ 26,886 | 24,360 | ||
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 , M GE 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 $1.3 million was recorded in the fourth quarter, associated with this ARO, based on revised estimates. |
Adoption of Accounting Princi92
Adoption of Accounting Principles and Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Restricted cash | $ 3.7 | $ 2.9 |
Accounting Standards Update 2015-03 - Simplifying the Presentation of Debt Issuance Costs [Member] | Other Deferred Charges [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New accounting pronouncement, effect of adoption, decrease in assets and liabilities (debt issuance costs) | 3.9 | 4.3 |
Accounting Standards Update 2015-03 - Simplifying the Presentation of Debt Issuance Costs [Member] | Long-term Debt [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New accounting pronouncement, effect of adoption, decrease in assets and liabilities (debt issuance costs) | 3.9 | $ 4.3 |
Accounting Standards Update 2016-18 - Restricted Cash [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Restricted cash | $ 5.1 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | $ 138,925 | $ 136,717 | $ 121,576 | $ 147,527 | $ 130,973 | $ 140,795 | $ 122,126 | $ 170,134 | $ 544,745 | $ 564,028 | $ 619,852 | ||||||
Depreciation and amortization | (44,646) | (44,225) | (40,695) | ||||||||||||||
Other operating expenses | (371,871) | (395,548) | (441,059) | ||||||||||||||
Operating Income (Loss) | 23,958 | 46,527 | 28,212 | 29,531 | 22,178 | 46,177 | 24,049 | 31,851 | 128,228 | 124,255 | 138,098 | ||||||
Other (deductions) income, net | 9,711 | 8,613 | 10,079 | ||||||||||||||
Interest (expense) income, net | (19,866) | (20,162) | (19,673) | ||||||||||||||
Income before income taxes | 118,073 | 112,706 | 128,504 | ||||||||||||||
Income tax (provision) benefit | (7,570) | (15,714) | (9,284) | (9,945) | (7,417) | (15,351) | (8,008) | (10,587) | (42,513) | (41,363) | (48,185) | ||||||
Net Income | 14,502 | $ 27,880 | $ 16,150 | $ 17,028 | 11,232 | $ 28,354 | $ 13,479 | $ 18,278 | 75,560 | 71,343 | 80,319 | ||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 1,801,060 | 1,726,403 | [1] | 1,801,060 | 1,726,403 | [1] | 1,689,521 | [1] | |||||||||
Capital expenditures | 83,659 | 72,030 | 92,676 | ||||||||||||||
Electric [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 409,006 | 412,528 | 394,849 | ||||||||||||||
Gas [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 134,543 | 143,737 | 221,720 | ||||||||||||||
Non Regulated Energy [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 1,196 | 7,763 | 3,283 | ||||||||||||||
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 | 544,745 | 564,028 | 619,852 | ||||||||||||||
Operating Segments [Member] | Electric [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 410,918 | 413,041 | 395,358 | ||||||||||||||
Depreciation and amortization | (29,122) | (29,945) | (26,933) | ||||||||||||||
Other operating expenses | (310,941) | (318,001) | (297,409) | ||||||||||||||
Operating Income (Loss) | 70,855 | 65,095 | 71,016 | ||||||||||||||
Other (deductions) income, net | 960 | 400 | 2,847 | ||||||||||||||
Interest (expense) income, net | (11,147) | (11,187) | (10,410) | ||||||||||||||
Income before income taxes | 60,668 | 54,308 | 63,453 | ||||||||||||||
Income tax (provision) benefit | (20,115) | (17,915) | (22,070) | ||||||||||||||
Net Income | 40,553 | 36,393 | 41,383 | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 1,021,905 | 974,235 | [1] | 1,021,905 | 974,235 | [1] | 945,790 | [1] | |||||||||
Capital expenditures | 50,699 | 49,370 | 68,067 | ||||||||||||||
Operating Segments [Member] | Gas [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 155,921 | 155,517 | 230,086 | ||||||||||||||
Depreciation and amortization | (8,128) | (6,758) | (6,308) | ||||||||||||||
Other operating expenses | (127,083) | (128,241) | (194,203) | ||||||||||||||
Operating Income (Loss) | 20,710 | 20,518 | 29,575 | ||||||||||||||
Other (deductions) income, net | 30 | (33) | (86) | ||||||||||||||
Interest (expense) income, net | (3,223) | (3,203) | (3,229) | ||||||||||||||
Income before income taxes | 17,517 | 17,282 | 26,260 | ||||||||||||||
Income tax (provision) benefit | (6,894) | (6,915) | (10,480) | ||||||||||||||
Net Income | 10,623 | 10,367 | 15,780 | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 318,603 | 298,435 | [1] | 318,603 | 298,435 | [1] | 306,106 | [1] | |||||||||
Capital expenditures | 29,136 | 18,787 | 22,104 | ||||||||||||||
Operating Segments [Member] | Non Regulated Energy [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 45,126 | 47,198 | 45,975 | ||||||||||||||
Depreciation and amortization | (7,372) | (7,475) | (7,407) | ||||||||||||||
Other operating expenses | (155) | (158) | (139) | ||||||||||||||
Operating Income (Loss) | 37,599 | 39,565 | 38,429 | ||||||||||||||
Other (deductions) income, net | 0 | 0 | 0 | ||||||||||||||
Interest (expense) income, net | (5,768) | (5,993) | (6,208) | ||||||||||||||
Income before income taxes | 31,831 | 33,572 | 32,221 | ||||||||||||||
Income tax (provision) benefit | (12,775) | (13,474) | (12,932) | ||||||||||||||
Net Income | 19,056 | 20,098 | 19,289 | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 271,277 | 277,858 | [1] | 271,277 | 277,858 | [1] | 280,542 | [1] | |||||||||
Capital expenditures | 3,824 | 3,873 | 2,505 | ||||||||||||||
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 | (17) | (19) | 0 | ||||||||||||||
Operating Income (Loss) | (17) | (19) | 0 | ||||||||||||||
Other (deductions) income, net | 8,429 | 7,728 | 9,150 | ||||||||||||||
Interest (expense) income, net | 0 | 0 | 0 | ||||||||||||||
Income before income taxes | 8,412 | 7,709 | 9,150 | ||||||||||||||
Income tax (provision) benefit | (2,836) | (3,102) | (3,664) | ||||||||||||||
Net Income | 5,576 | 4,607 | 5,486 | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 74,535 | 69,470 | [1] | 74,535 | 69,470 | [1] | 67,697 | [1] | |||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||||||||
Operating Segments [Member] | All Others [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 0 | 0 | 0 | ||||||||||||||
Depreciation and amortization | (24) | (47) | (47) | ||||||||||||||
Other operating expenses | (895) | (857) | (875) | ||||||||||||||
Operating Income (Loss) | (919) | (904) | (922) | ||||||||||||||
Other (deductions) income, net | 292 | 518 | (1,832) | ||||||||||||||
Interest (expense) income, net | 272 | 221 | 174 | ||||||||||||||
Income before income taxes | (355) | (165) | (2,580) | ||||||||||||||
Income tax (provision) benefit | 107 | 43 | 961 | ||||||||||||||
Net Income | (248) | (122) | (1,619) | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 465,202 | 434,868 | [1] | 465,202 | 434,868 | [1] | 438,898 | [1] | |||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||||||||
Operating Segments [Member] | Assets Not Allocated [Member] | |||||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 27,338 | 49,753 | [1] | 27,338 | 49,753 | [1] | 41,124 | [1] | |||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||||||||
Consolidation/Elimination Entries [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | (67,220) | (51,728) | (51,567) | ||||||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||||||||
Other operating expenses | 67,220 | 51,728 | 51,567 | ||||||||||||||
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 | (377,800) | (378,216) | [1] | (377,800) | (378,216) | [1] | (390,636) | [1] | |||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||||||||
Consolidation/Elimination Entries [Member] | Electric [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 1,912 | 513 | 509 | ||||||||||||||
Consolidation/Elimination Entries [Member] | Gas [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 21,378 | 11,780 | 8,366 | ||||||||||||||
Consolidation/Elimination Entries [Member] | Non Regulated Energy [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 43,930 | 39,435 | 42,692 | ||||||||||||||
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 | 544,798 | 564,065 | 619,895 | ||||||||||||||
Depreciation and amortization | (44,622) | (44,178) | (40,648) | ||||||||||||||
Other operating expenses | [2] | (410,627) | (432,887) | (485,319) | |||||||||||||
Operating Income (Loss) | [2] | 89,549 | 87,000 | 93,928 | |||||||||||||
Other (deductions) income, net | [2] | 5,181 | 4,848 | 7,857 | |||||||||||||
Interest (expense) income, net | (20,138) | (20,383) | (19,847) | ||||||||||||||
Income tax (provision) benefit | (41,791) | (41,406) | (49,145) | ||||||||||||||
Net Income Including Noncontrolling Interest | 74,592 | 71,465 | 81,938 | ||||||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | (23,358) | (26,097) | (26,310) | ||||||||||||||
Net Income | 51,234 | 45,368 | 55,628 | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 1,638,852 | 1,669,514 | [1] | 1,638,852 | 1,669,514 | [1] | 1,634,688 | [1] | |||||||||
Capital expenditures | 83,659 | 72,030 | 92,676 | ||||||||||||||
MGE [Member] | Electric [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 409,030 | 412,550 | 394,871 | ||||||||||||||
MGE [Member] | Gas [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 134,572 | 143,752 | 221,741 | ||||||||||||||
MGE [Member] | Non Regulated Energy [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 1,196 | 7,763 | 3,283 | ||||||||||||||
MGE [Member] | Transmission Investment [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 0 | [3] | 0 | 0 | |||||||||||||
MGE [Member] | Operating Segments [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 544,798 | 564,065 | 619,895 | ||||||||||||||
MGE [Member] | Operating Segments [Member] | Electric [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 410,918 | 413,041 | 395,358 | ||||||||||||||
Depreciation and amortization | (29,122) | (29,945) | (26,933) | ||||||||||||||
Other operating expenses | [2] | (330,924) | (335,803) | (319,175) | |||||||||||||
Operating Income (Loss) | [2] | 50,872 | 47,293 | 49,250 | |||||||||||||
Other (deductions) income, net | [2] | 828 | 287 | 2,543 | |||||||||||||
Interest (expense) income, net | (11,147) | (11,187) | (10,410) | ||||||||||||||
Net Income Including Noncontrolling Interest | 40,553 | 36,393 | 41,383 | ||||||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | ||||||||||||||
Net Income | 40,553 | 36,393 | 41,383 | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 1,021,905 | 974,235 | [1] | 1,021,905 | 974,235 | [1] | 945,790 | [1] | |||||||||
Capital expenditures | 50,699 | 49,370 | 68,067 | ||||||||||||||
MGE [Member] | Operating Segments [Member] | Gas [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 155,921 | 155,517 | 230,086 | ||||||||||||||
Depreciation and amortization | (8,128) | (6,758) | (6,308) | ||||||||||||||
Other operating expenses | [2] | (133,940) | (135,124) | (204,597) | |||||||||||||
Operating Income (Loss) | [2] | 13,853 | 13,635 | 19,181 | |||||||||||||
Other (deductions) income, net | [2] | (7) | (65) | (172) | |||||||||||||
Interest (expense) income, net | (3,223) | (3,203) | (3,229) | ||||||||||||||
Net Income Including Noncontrolling Interest | 10,623 | 10,367 | 15,780 | ||||||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | ||||||||||||||
Net Income | 10,623 | 10,367 | 15,780 | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 318,603 | 298,435 | [1] | 318,603 | 298,435 | [1] | 306,106 | [1] | |||||||||
Capital expenditures | 29,136 | 18,787 | 22,104 | ||||||||||||||
MGE [Member] | Operating Segments [Member] | Non Regulated Energy [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 45,126 | 47,198 | 45,975 | ||||||||||||||
Depreciation and amortization | (7,372) | (7,475) | (7,407) | ||||||||||||||
Other operating expenses | [2] | (12,930) | (13,632) | (13,071) | |||||||||||||
Operating Income (Loss) | [2] | 24,824 | 26,091 | 25,497 | |||||||||||||
Other (deductions) income, net | [2] | 0 | 0 | 0 | |||||||||||||
Interest (expense) income, net | (5,768) | (5,993) | (6,208) | ||||||||||||||
Net Income Including Noncontrolling Interest | 19,056 | 20,098 | 19,289 | ||||||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | ||||||||||||||
Net Income | 19,056 | 20,098 | 19,289 | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 271,227 | 277,808 | [1] | 271,227 | 277,808 | [1] | 280,492 | [1] | |||||||||
Capital expenditures | 3,824 | 3,873 | 2,505 | ||||||||||||||
MGE [Member] | Operating Segments [Member] | Transmission Investment [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 0 | [3] | 0 | 0 | |||||||||||||
Depreciation and amortization | 0 | [3] | 0 | 0 | |||||||||||||
Other operating expenses | [2] | 0 | [3] | (19) | 0 | ||||||||||||
Operating Income (Loss) | [2] | 0 | [3] | (19) | 0 | ||||||||||||
Other (deductions) income, net | [2] | 4,360 | [3] | 4,626 | 5,486 | ||||||||||||
Interest (expense) income, net | 0 | [3] | 0 | 0 | |||||||||||||
Net Income Including Noncontrolling Interest | 4,360 | [3] | 4,607 | 5,486 | |||||||||||||
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | [3] | 0 | 0 | |||||||||||||
Net Income | 4,360 | [3] | 4,607 | 5,486 | |||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 0 | [4] | 69,470 | [1] | 0 | [4] | 69,470 | [1] | 67,697 | [1] | |||||||
Capital expenditures | 0 | 0 | 0 | ||||||||||||||
MGE [Member] | Operating Segments [Member] | Assets Not Allocated [Member] | |||||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | 27,338 | 49,753 | [1] | 27,338 | 49,753 | [1] | 41,124 | [1] | |||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | (67,167) | (51,691) | (51,524) | ||||||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||||||||
Other operating expenses | [2] | 67,167 | 51,691 | 51,524 | |||||||||||||
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 | (23,358) | (26,097) | (26,310) | ||||||||||||||
Net Income | (23,358) | (26,097) | (26,310) | ||||||||||||||
Segment Reporting Information Assets And Capital Expenditures [Abstract] | |||||||||||||||||
Assets | $ (221) | $ (187) | [1] | (221) | (187) | [1] | (6,521) | [1] | |||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Electric [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 1,888 | 491 | 487 | ||||||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Gas [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 21,349 | 11,765 | 8,345 | ||||||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Non Regulated Energy [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | 43,930 | 39,435 | 42,692 | ||||||||||||||
MGE [Member] | Consolidation/Elimination Entries [Member] | Transmission Investment [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating revenues | $ 0 | [3] | $ 0 | $ 0 | |||||||||||||
[1] | Reflects retrospective application of new accounting pronouncement. See Footnote 19 for additional information. | ||||||||||||||||
[2] | Amounts are shown net of the related tax expense, consistent with the presentation on the MGE Consolidated Statements of Income. | ||||||||||||||||
[3] | As of July 31, 2016, MGE no longer consolidates MGE Energy's proportionate share of equity earnings in MGE Transco. See Footnote 4 for additional information. | ||||||||||||||||
[4] | In December 2016, MGE’s ownership interest in MGE Transco was transferred to MGE Energy, see Footnote 4 for additional information. |
Quarterly Summary of Operatio94
Quarterly Summary of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Revenues: | |||||||||||
Electric revenues | $ 96,750 | $ 119,147 | $ 100,615 | $ 93,690 | $ 95,264 | $ 123,364 | $ 101,457 | $ 100,206 | $ 410,202 | $ 420,291 | $ 398,132 |
Gas revenues | 42,175 | 17,570 | 20,961 | 53,837 | 35,709 | 17,431 | 20,669 | 69,928 | 134,543 | 143,737 | 221,720 |
Total Operating Revenues | 138,925 | 136,717 | 121,576 | 147,527 | 130,973 | 140,795 | 122,126 | 170,134 | 544,745 | 564,028 | 619,852 |
Operating expenses | 114,967 | 90,190 | 93,364 | 117,996 | 108,795 | 94,618 | 98,077 | 138,283 | 416,517 | 439,773 | 481,754 |
Operating Income (Loss) | 23,958 | 46,527 | 28,212 | 29,531 | 22,178 | 46,177 | 24,049 | 31,851 | 128,228 | 124,255 | 138,098 |
Interest and other income, net | (1,886) | (2,933) | (2,778) | (2,558) | (3,529) | (2,472) | (2,562) | (2,986) | |||
Income tax provision | (7,570) | (15,714) | (9,284) | (9,945) | (7,417) | (15,351) | (8,008) | (10,587) | (42,513) | (41,363) | (48,185) |
Net Income | $ 14,502 | $ 27,880 | $ 16,150 | $ 17,028 | $ 11,232 | $ 28,354 | $ 13,479 | $ 18,278 | $ 75,560 | $ 71,343 | $ 80,319 |
Earnings per common share | $ 0.42 | $ 0.8 | $ 0.47 | $ 0.49 | $ 0.32 | $ 0.82 | $ 0.39 | $ 0.53 | $ 2.18 | $ 2.06 | $ 2.32 |
Dividends per share | $ 0.308 | $ 0.308 | $ 0.295 | $ 0.295 | $ 0.295 | $ 0.295 | $ 0.283 | $ 0.283 | $ 1.21 | $ 1.16 | $ 1.11 |
Related Party Transactions (Det
Related Party Transactions (Details) - ATC [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related party transaction [Line Items] | |||
Related party expenses | $ 29.1 | $ 28.2 | $ 26.8 |
Due from Related Parties | $ 0.1 | $ 0.2 | $ 0.1 |
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Expenses: | |||||||||||
Other operations and maintenance | $ 167,989 | $ 164,478 | $ 161,703 | ||||||||
Total Operating Expenses | $ 114,967 | $ 90,190 | $ 93,364 | $ 117,996 | $ 108,795 | $ 94,618 | $ 98,077 | $ 138,283 | 416,517 | 439,773 | 481,754 |
Operating Income (Loss) | 23,958 | 46,527 | 28,212 | 29,531 | 22,178 | 46,177 | 24,049 | 31,851 | 128,228 | 124,255 | 138,098 |
Equity earnings from investment in ATC | 8,428 | 7,728 | 9,150 | ||||||||
Income before income taxes | 118,073 | 112,706 | 128,504 | ||||||||
Income tax provision | (7,570) | (15,714) | (9,284) | (9,945) | (7,417) | (15,351) | (8,008) | (10,587) | (42,513) | (41,363) | (48,185) |
Net Income | $ 14,502 | $ 27,880 | $ 16,150 | $ 17,028 | $ 11,232 | $ 28,354 | $ 13,479 | $ 18,278 | 75,560 | 71,343 | 80,319 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||||||||||
Unrealized (loss) gain on available for sale securities, net of tax | (155) | (101) | 81 | ||||||||
Comprehensive Income | 75,405 | 71,242 | 80,400 | ||||||||
MGE Energy [Member] | |||||||||||
Operating Expenses: | |||||||||||
Other operations and maintenance | 720 | 690 | 689 | ||||||||
Total Operating Expenses | 720 | 690 | 689 | ||||||||
Operating Income (Loss) | (720) | (690) | (689) | ||||||||
Equity earnings from investment in ATC | 75,581 | 71,306 | 81,811 | ||||||||
Other income/(loss), net | 435 | 526 | (1,879) | ||||||||
Other interest | 176 | 136 | 93 | ||||||||
Income before income taxes | 75,472 | 71,278 | 79,336 | ||||||||
Net Income | 75,560 | 71,343 | 80,319 | ||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||||||||||
Unrealized (loss) gain on available for sale securities, net of tax | (155) | (101) | 81 | ||||||||
Comprehensive Income | $ 75,405 | $ 71,242 | $ 80,400 |
Schedule I - Condensed Parent97
Schedule I - Condensed Parent Company Finanical Statements (Details-Comprehensive Income Statement Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||
Unrealized (loss) gain on available-for-sale securities, taxes | $ (104) | $ (67) | $ 54 |
MGE Energy [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Unrealized (loss) gain on available-for-sale securities, taxes | $ (104) | $ (67) | $ 54 |
Schedule I - Condensed Parent98
Schedule I - Condensed Parent Company Finanical Statements (Details-Cash Flow Statement) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Flows Provided by Operating Activities | $ 147,513 | $ 141,185 | $ 128,762 |
Investing Activities: | |||
Other investing | (209) | (230) | (1,297) |
Cash Used for Investing Activities | (86,826) | (73,313) | (96,158) |
Financing Activities: | |||
Cash dividends paid on common stock | (41,775) | (40,043) | (38,429) |
Change in short-term debt | 0 | (7,000) | 7,000 |
Other financing | (70) | (1,018) | (130) |
Cash Used for Financing Activities | (46,112) | (52,243) | (35,662) |
Change in cash and cash equivalents: | 14,575 | 15,629 | (3,058) |
Cash and cash equivalents at beginning of period | 81,384 | 65,755 | 68,813 |
Cash and cash equivalents at end of period | 95,959 | 81,384 | 65,755 |
MGE Energy [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Flows Provided by Operating Activities | 74,994 | 37,085 | 48,165 |
Investing Activities: | |||
Other investing | (2,764) | (3,690) | (2,422) |
Cash Used for Investing Activities | (2,764) | (3,690) | (2,422) |
Financing Activities: | |||
Cash dividends paid on common stock | (41,775) | (40,043) | (38,429) |
Other financing | (11) | 0 | (89) |
Cash Used for Financing Activities | (41,786) | (40,043) | (38,518) |
Change in cash and cash equivalents: | 30,444 | (6,648) | 7,225 |
Cash and cash equivalents at beginning of period | 51,781 | 58,429 | 51,204 |
Cash and cash equivalents at end of period | $ 82,225 | $ 51,781 | $ 58,429 |
Schedule I - Condensed Parent99
Schedule I - Condensed Parent Company Finanical Statements (Details-Balance Sheet) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Current Assets: | ||||||
Cash and cash equivalents | $ 95,959 | $ 81,384 | $ 65,755 | $ 68,813 | ||
Accounts receivable, net: | ||||||
Other current assets | 12,293 | 10,570 | ||||
Total Current Assets | 275,515 | 254,751 | ||||
Other deferred assets and other | 1,088 | 1,332 | [1] | |||
Investments: | ||||||
Other investments | 120 | 159 | ||||
Total investments | 76,290 | 73,631 | ||||
Total Assets | 1,801,060 | 1,726,403 | [1] | 1,689,521 | [1] | |
Current Liabilities: | ||||||
Other current liabilities | 19,456 | 4,910 | ||||
Total Current Liabilities | 103,505 | 84,146 | ||||
Other Credits: | ||||||
Deferred income taxes | 383,813 | 360,785 | ||||
Total Other Credits | 590,676 | 565,055 | ||||
Shareholders' Equity: | ||||||
Retained income | 372,950 | 339,165 | ||||
Other comprehensive income | 202 | 357 | ||||
Total Common Shareholders' Equity | 724,088 | 690,458 | 659,401 | 617,510 | ||
Commitments and contingencies (see Footnote 3) | ||||||
Total Liabilities and Capitalization | 1,801,060 | 1,726,403 | [1] | |||
MGE Energy [Member] | ||||||
Current Assets: | ||||||
Cash and cash equivalents | 82,225 | 51,781 | $ 58,429 | $ 51,204 | ||
Accounts receivable, net: | ||||||
Accounts receivable from affiliates | 83 | 20 | ||||
Other current assets | 1,221 | 1,386 | ||||
Total Current Assets | 83,529 | 53,187 | ||||
Other deferred assets and other | 201 | 249 | ||||
Investments: | ||||||
Investments in affiliates | 684,968 | 649,276 | ||||
Other investments | 1,161 | 1,447 | ||||
Total investments | 686,129 | 650,723 | ||||
Total Assets | 769,859 | 704,159 | ||||
Current Liabilities: | ||||||
Accounts payable to affiliates | 530 | 530 | ||||
Accrued taxes | 218 | 263 | ||||
Other current liabilities | 115 | 144 | ||||
Total Current Liabilities | 863 | 937 | ||||
Other Credits: | ||||||
Deferred income taxes | 40,672 | 7,998 | ||||
Accounts payable to affiliates | 4,236 | 4,766 | ||||
Total Other Credits | 44,908 | 12,764 | ||||
Shareholders' Equity: | ||||||
Common shareholders' equity | 350,936 | 350,936 | ||||
Retained income | 372,950 | 339,165 | ||||
Other comprehensive income | 202 | 357 | ||||
Total Common Shareholders' Equity | 724,088 | 690,458 | ||||
Commitments and contingencies (see Footnote 3) | ||||||
Total Liabilities and Capitalization | $ 769,859 | $ 704,159 | ||||
[1] | Reflects retrospective application of new accounting pronouncement. See Footnote 19 for additional information. |
Schedule I - Condensed Paren100
Schedule I - Condensed Parent Company Finanical Statements (Details-Notes 1) - Line of Credit [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Credit facilities [Line Items] | |||
Available lines of credit | [1] | $ 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 Paren101
Schedule I - Condensed Parent Company Finanical Statements (Details-Notes 2) $ in Thousands | Dec. 01, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||||
Dividend Restrictions | |||||
Debt covenant, allowable amount available for payment of dividends | $ 338,500 | ||||
MGE [Member] | |||||
Dividends from Affiliates [Line Items] | |||||
Dividends from affiliates | 50,000 | [1] | $ 30,000 | $ 26,500 | |
Dividend in kind from affiliate | $ 15,800 | $ 15,822 | 0 | 0 | |
Dividend Restrictions | |||||
Common equity ratio | 0.602 | ||||
Amount available for dividend payments without regulatory approval | $ 43,000 | ||||
MGE [Member] | Minimum [Member] | |||||
Dividend Restrictions | |||||
Dividend restrictions, common equity ratio | 0.55 | ||||
MGE [Member] | First Mortgage Bonds [Member] | 7.70%, 2028 Series | |||||
Dividend Restrictions | |||||
Debt covenant, allowable amount available for payment of dividends | $ 338,500 | ||||
MGE Power Elm Road [Member] | |||||
Dividends from Affiliates [Line Items] | |||||
Dividends from affiliates | 13,500 | 10,000 | 13,500 | ||
MGE Power West Campus [Member] | |||||
Dividends from Affiliates [Line Items] | |||||
Dividends from affiliates | 9,500 | 3,000 | 6,000 | ||
MGE Transco [Member] | |||||
Dividends from Affiliates [Line Items] | |||||
Dividends from affiliates | 1,107 | 1,708 | 1,859 | ||
MGE Energy [Member] | |||||
Dividends from Affiliates [Line Items] | |||||
Dividends from affiliates | $ 74,107 | $ 44,708 | $ 47,859 | ||
Dividend in kind from affiliate | $ (15,800) | ||||
[1] | Excludes $15.8 million dividend in kind to MGE Energy from MGE. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Valuation and Qualifying Accounts [Roll Forward] | ||||
Balance at beginning of period | $ 3,694,080 | $ 4,748,657 | $ 4,969,711 | |
Charged to costs and expenses | 1,195,500 | 595,500 | 1,898,300 | |
Charged to other accounts | 19,500 | 25,500 | 15,092 | |
Net accounts written off | [1] | (1,465,784) | (1,675,577) | (2,134,446) |
Balance at end of period | $ 3,443,296 | $ 3,694,080 | $ 4,748,657 | |
[1] | Net of recovery of amounts previously written off. |