Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document And Entity Information [Line Items] | ||
Entity Registrant Name | MGE Energy, Inc. | |
Entity Central Index Key | 0001161728 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2023 | |
Amendment Flag | false | |
Trading Symbol | MGEE | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 36,163,370 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Security Exchange Name | NASDAQ | |
Security 12(b) Title | Common Stock, $1 Par Value Per Share | |
Entity Tax Identification Number | 39-2040501 | |
Securities Act File Number | 000-49965 | |
Entity Incorporation, State or Country Code | WI | |
Entity Address, Address Line One | 133 South Blair Street | |
Entity Address, City or Town | Madison | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53788 | |
City Area Code | 608 | |
Local Phone Number | 252-7000 | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
MGE [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Registrant Name | Madison Gas and Electric Company | |
Entity Central Index Key | 0000061339 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,347,894 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Tax Identification Number | 39-0444025 | |
Securities Act File Number | 000-1125 | |
Entity Incorporation, State or Country Code | WI | |
Entity Address, Address Line One | 133 South Blair Street | |
Entity Address, City or Town | Madison | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53788 | |
City Area Code | 608 | |
Local Phone Number | 252-7000 | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Revenues: | ||||
Electric revenues | $ 121,707 | $ 112,164 | $ 238,998 | $ 222,291 |
Gas revenue | 26,291 | 40,184 | 126,253 | 138,995 |
Total Operating Revenues | 147,998 | 152,348 | 365,251 | 361,286 |
Operating Expenses: | ||||
Fuel for electric generation | 13,599 | 13,880 | 27,406 | 27,365 |
Purchased power | 5,845 | 13,621 | 21,231 | 26,164 |
Cost of gas sold | 7,289 | 21,313 | 75,136 | 86,115 |
Other operations and maintenance | 52,049 | 51,526 | 102,007 | 101,520 |
Depreciation and amortization | 25,119 | 21,287 | 49,730 | 42,333 |
Other general taxes | 5,707 | 5,263 | 11,317 | 10,468 |
Total Operating Expenses | 109,608 | 126,890 | 286,827 | 293,965 |
Operating Income | 38,390 | 25,458 | 78,424 | 67,321 |
Other income, net | 4,937 | 7,696 | 10,292 | 14,668 |
Interest expense, net | (7,760) | (6,463) | (15,247) | (13,034) |
Income before income taxes | 35,567 | 26,691 | 73,469 | 68,955 |
Income tax provision | (6,886) | (4,930) | (13,710) | (12,774) |
Net Income Including Noncontrolling Interest | 28,681 | 21,761 | 59,759 | 56,181 |
Net Income | $ 28,681 | $ 21,761 | $ 59,759 | $ 56,181 |
Earnings per share of Common Stock - Basic | $ 0.79 | $ 0.6 | $ 1.65 | $ 1.55 |
Earnings per share of Common Stock - Diluted | 0.79 | 0.6 | 1.65 | 1.55 |
Dividends per share of common stock | $ 0.408 | $ 0.388 | $ 0.815 | $ 0.775 |
Weighted Average Shares Outstanding - Basic | 36,163 | 36,163 | 36,163 | 36,163 |
Weighted Average Shares Outstanding - Diluted | 36,186 | 36,174 | 36,183 | 36,173 |
MGE [Member] | ||||
Operating Revenues: | ||||
Electric revenues | $ 121,707 | $ 112,164 | $ 238,998 | $ 222,291 |
Gas revenue | 26,291 | 40,184 | 126,253 | 138,995 |
Total Operating Revenues | 147,998 | 152,348 | 365,251 | 361,286 |
Operating Expenses: | ||||
Fuel for electric generation | 13,599 | 13,880 | 27,406 | 27,365 |
Purchased power | 5,845 | 13,621 | 21,231 | 26,164 |
Cost of gas sold | 7,289 | 21,313 | 75,136 | 86,115 |
Other operations and maintenance | 51,835 | 51,289 | 101,404 | 101,034 |
Depreciation and amortization | 25,119 | 21,287 | 49,730 | 42,333 |
Other general taxes | 5,707 | 5,263 | 11,317 | 10,468 |
Total Operating Expenses | 109,394 | 126,653 | 286,224 | 293,479 |
Operating Income | 38,604 | 25,695 | 79,027 | 67,807 |
Other income, net | 3,254 | 4,519 | 6,161 | 8,037 |
Interest expense, net | (7,815) | (6,470) | (15,335) | (13,047) |
Income before income taxes | 34,043 | 23,744 | 69,853 | 62,797 |
Income tax provision | (6,436) | (4,117) | (12,603) | (11,117) |
Net Income Including Noncontrolling Interest | 27,607 | 19,627 | 57,250 | 51,680 |
Less Net Income Attributable to Noncontrolling Interest, net of tax | (5,375) | (5,588) | (10,895) | (10,344) |
Net Income | $ 22,232 | $ 14,039 | $ 46,355 | $ 41,336 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Activities: | ||
Net Income | $ 59,759 | $ 56,181 |
Items not affecting cash: | ||
Depreciation and amortization | 49,730 | 42,333 |
Deferred income taxes | 12,713 | 11,990 |
Provision for doubtful receivables | 882 | 882 |
Employee benefit plan cost (credit) | (1,227) | (4,146) |
Equity earnings in investments | (5,240) | (5,127) |
Other items | (885) | (865) |
Changes in working capital items: | ||
Decrease in current assets | 34,098 | 4,800 |
Decrease in accounts payable | (20,508) | (610) |
(Decrease) increase in other current liabilities | (2,105) | 7,059 |
Dividends from investments | 4,248 | 3,959 |
Cash contributions to pension and other postretirement plans | (3,540) | (3,351) |
Other noncurrent items, net | (934) | (1,829) |
Cash Provided by Operating Activities | 126,991 | 111,276 |
Investing Activities: | ||
Capital expenditures | (107,701) | (65,959) |
Capital contributions to investments | (3,376) | (3,330) |
Other | (682) | 226 |
Cash Used for Investing Activities | (111,759) | (69,063) |
Financing Activities: | ||
Cash dividends paid on common stock | (29,473) | (28,027) |
Repayments of long-term debt | (21,791) | (2,429) |
Issuance of long-term debt | 69,300 | 0 |
Repayments of short-term debt | (28,500) | (5,500) |
Other | (1,479) | (612) |
Cash Used for Financing Activities | (11,943) | (36,568) |
Change in cash, cash equivalents, and restricted cash | 3,289 | 5,645 |
Cash, cash equivalents, and restricted cash at beginning of period | 17,968 | 18,835 |
Cash, cash equivalents, and restricted cash at end of period | 21,257 | 24,480 |
Significant noncash investing activities: | ||
Accrued capital expenditures | 6,446 | 40,434 |
MGE [Member] | ||
Operating Activities: | ||
Net Income | 57,250 | 51,680 |
Items not affecting cash: | ||
Depreciation and amortization | 49,730 | 42,333 |
Deferred income taxes | 11,955 | 11,248 |
Provision for doubtful receivables | 882 | 882 |
Employee benefit plan cost (credit) | (1,227) | (4,146) |
Other items | (1,344) | 851 |
Changes in working capital items: | ||
Decrease in current assets | 33,520 | 3,605 |
Decrease in accounts payable | (20,560) | (623) |
(Decrease) increase in other current liabilities | (188) | 9,303 |
Cash contributions to pension and other postretirement plans | (3,540) | (3,351) |
Other noncurrent items, net | (1,428) | (2,233) |
Cash Provided by Operating Activities | 125,050 | 109,549 |
Investing Activities: | ||
Capital expenditures | (107,701) | (65,959) |
Other | (805) | (341) |
Cash Used for Investing Activities | (108,506) | (66,300) |
Financing Activities: | ||
Cash dividends paid to parent by MGE | (21,000) | (12,000) |
Distributions to parent from noncontrolling interest | (10,250) | (13,250) |
Repayments of long-term debt | (21,791) | (2,429) |
Issuance of long-term debt | 69,300 | 0 |
Repayments of short-term debt | (28,500) | (5,500) |
Other | (1,479) | (612) |
Cash Used for Financing Activities | (13,720) | (33,791) |
Change in cash, cash equivalents, and restricted cash | 2,824 | 9,458 |
Cash, cash equivalents, and restricted cash at beginning of period | 10,500 | 7,798 |
Cash, cash equivalents, and restricted cash at end of period | 13,324 | 17,256 |
Significant noncash investing activities: | ||
Accrued capital expenditures | $ 6,446 | $ 40,434 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 16,507 | $ 11,604 |
Accounts receivable, less reserves | 41,025 | 55,407 |
Other accounts receivables, less reserves | 15,198 | 11,418 |
Unbilled revenues | 26,650 | 43,086 |
Materials and supplies, at average cost | 33,757 | 33,465 |
Fuel for electric generation, at average cost | 12,524 | 7,962 |
Stored natural gas, at average cost | 25,601 | 32,848 |
Prepaid taxes | 20,025 | 19,132 |
Regulatory assets - current | 16,347 | 9,541 |
Other current assets | 14,897 | 19,017 |
Total Current Assets | 222,531 | 243,480 |
Regulatory assets | 97,801 | 103,900 |
Pension benefit asset | 72,349 | 68,872 |
Other deferred assets and other | 22,326 | 24,365 |
Property, Plant, and Equipment: | ||
Property, plant, and equipment, net | 1,903,143 | 1,865,352 |
Construction work in progress | 132,980 | 105,748 |
Total Property, Plant, and Equipment | 2,036,123 | 1,971,100 |
Investments | 108,938 | 105,883 |
Total Assets | 2,560,068 | 2,517,600 |
Current Liabilities: | ||
Long-term debt due within one year | 35,079 | 54,314 |
Short-term debt | 42,000 | 70,500 |
Accounts payable | 38,571 | 59,334 |
Accrued interest and taxes | 8,750 | 7,868 |
Accrued payroll related items | 10,337 | 13,064 |
Regulatory liabilities - current | 15,831 | 11,925 |
Other current liabilities | 8,831 | 8,057 |
Total Current Liabilities | 159,399 | 225,062 |
Other Credits: | ||
Deferred income taxes | 266,807 | 252,190 |
Investment tax credit - deferred | 47,785 | 48,735 |
Regulatory liabilities | 153,549 | 156,988 |
Accrued pension and other postretirement benefits | 54,179 | 53,607 |
Finance lease liabilities | 17,860 | 17,108 |
Other deferred liabilities and other | 96,251 | 96,990 |
Total Other Credits | 636,431 | 625,618 |
Capitalization: | ||
Common shareholders equity | 1,112,584 | 1,081,674 |
Long-term debt | 651,654 | 585,246 |
Total Capitalization | 1,764,238 | 1,666,920 |
Commitments and contingencies (see Footnote 8) | ||
Total Liabilities and Capitalization | 2,560,068 | 2,517,600 |
MGE [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 8,574 | 4,136 |
Accounts receivable, less reserves | 41,025 | 55,407 |
Other accounts receivables, less reserves | 15,195 | 11,416 |
Unbilled revenues | 26,650 | 43,086 |
Materials and supplies, at average cost | 33,757 | 33,465 |
Fuel for electric generation, at average cost | 12,524 | 7,962 |
Stored natural gas, at average cost | 25,601 | 32,848 |
Prepaid taxes | 19,885 | 18,467 |
Regulatory assets - current | 16,347 | 9,541 |
Other current assets | 15,413 | 19,479 |
Total Current Assets | 214,971 | 235,807 |
Regulatory assets | 97,801 | 103,900 |
Pension benefit asset | 72,349 | 68,872 |
Other deferred assets and other | 22,528 | 24,817 |
Property, Plant, and Equipment: | ||
Property, plant, and equipment, net | 1,903,171 | 1,865,380 |
Construction work in progress | 132,980 | 105,748 |
Total Property, Plant, and Equipment | 2,036,151 | 1,971,128 |
Investments | 108 | 115 |
Total Assets | 2,443,908 | 2,404,639 |
Current Liabilities: | ||
Long-term debt due within one year | 35,079 | 54,314 |
Short-term debt | 42,000 | 70,500 |
Accounts payable | 38,501 | 59,317 |
Accrued interest and taxes | 8,705 | 7,912 |
Accrued payroll related items | 10,337 | 13,064 |
Regulatory liabilities - current | 15,831 | 11,925 |
Other current liabilities | 8,841 | 6,062 |
Total Current Liabilities | 159,294 | 223,094 |
Other Credits: | ||
Deferred income taxes | 233,117 | 219,258 |
Investment tax credit - deferred | 47,785 | 48,735 |
Regulatory liabilities | 153,549 | 156,988 |
Accrued pension and other postretirement benefits | 54,179 | 53,607 |
Finance lease liabilities | 17,860 | 17,108 |
Other deferred liabilities and other | 98,084 | 98,217 |
Total Other Credits | 604,574 | 593,913 |
Capitalization: | ||
Common shareholders equity | 879,578 | 854,223 |
Noncontrolling interest | 148,808 | 148,163 |
Total Equity | 1,028,386 | 1,002,386 |
Long-term debt | 651,654 | 585,246 |
Total Capitalization | 1,680,040 | 1,587,632 |
Commitments and contingencies (see Footnote 8) | ||
Total Liabilities and Capitalization | $ 2,443,908 | $ 2,404,639 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables, Net | ||
Reserve for uncollectible accounts receivable | $ 6,147 | $ 7,050 |
Reserve for uncollectible other accounts receivable | 1,472 | 1,323 |
MGE [Member] | ||
Receivables, Net | ||
Reserve for uncollectible accounts receivable | 6,147 | 7,050 |
Reserve for uncollectible other accounts receivable | $ 1,472 | $ 1,323 |
MGE Energy Inc Consolidated Sta
MGE Energy Inc Consolidated Statements of Common Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Beginning balance, shares at Dec. 31, 2021 | 36,163 | ||||
Beginning balance, value at Dec. 31, 2021 | $ 1,027,468 | $ 36,163 | $ 394,903 | $ 596,402 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 56,181 | 56,181 | |||
Common stock dividends declared | (28,027) | (28,027) | |||
Equity-based compensation plans and other | 435 | 435 | |||
Ending balance, shares at Jun. 30, 2022 | 36,163 | ||||
Ending balance, value at Jun. 30, 2022 | 1,056,057 | $ 36,163 | 395,338 | 624,556 | 0 |
Beginning balance, shares at Mar. 31, 2022 | 36,163 | ||||
Beginning balance, value at Mar. 31, 2022 | 1,048,153 | $ 36,163 | 395,181 | 616,809 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 21,761 | 21,761 | |||
Common stock dividends declared | (14,014) | (14,014) | |||
Equity-based compensation plans and other | 157 | 157 | |||
Ending balance, shares at Jun. 30, 2022 | 36,163 | ||||
Ending balance, value at Jun. 30, 2022 | 1,056,057 | $ 36,163 | 395,338 | 624,556 | 0 |
Beginning balance, shares at Dec. 31, 2022 | 36,163 | ||||
Beginning balance, value at Dec. 31, 2022 | 1,081,674 | $ 36,163 | 395,657 | 649,854 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 59,759 | 59,759 | |||
Common stock dividends declared | (29,473) | (29,473) | |||
Equity-based compensation plans and other | 624 | 624 | |||
Ending balance, shares at Jun. 30, 2023 | 36,163 | ||||
Ending balance, value at Jun. 30, 2023 | 1,112,584 | $ 36,163 | 396,281 | 680,140 | 0 |
Beginning balance, shares at Mar. 31, 2023 | 36,163 | ||||
Beginning balance, value at Mar. 31, 2023 | 1,098,370 | $ 36,163 | 396,011 | 666,196 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 28,681 | 28,681 | |||
Common stock dividends declared | (14,737) | (14,737) | |||
Equity-based compensation plans and other | 270 | 270 | |||
Ending balance, shares at Jun. 30, 2023 | 36,163 | ||||
Ending balance, value at Jun. 30, 2023 | $ 1,112,584 | $ 36,163 | $ 396,281 | $ 680,140 | $ 0 |
Consolidated Statements of Comm
Consolidated Statements of Common Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Dividends per share of common stock | $ 0.408 | $ 0.388 | $ 0.815 | $ 0.775 |
Madison Gas and Electric Compan
Madison Gas and Electric Company Consolidated Statements of Common Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | MGE [Member] | Common Stock [Member] | Common Stock [Member] MGE [Member] | Additional Paid-in Capital [Member] MGE [Member] | Retained Earnings [Member] MGE [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] MGE [Member] | Noncontrolling Interest [Member] MGE [Member] |
Beginning balance, shares at Dec. 31, 2021 | 36,163 | 17,348 | ||||||
Beginning balance, value at Dec. 31, 2021 | $ 952,394 | $ 17,348 | $ 252,917 | $ 533,542 | $ 0 | $ 148,587 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | $ 56,181 | 51,680 | 41,336 | 10,344 | ||||
Cash dividends paid to parent by MGE | (12,000) | (12,000) | ||||||
Distributions to parent from noncontrolling interest | (13,250) | (13,250) | ||||||
Ending balance, shares at Jun. 30, 2022 | 36,163 | 17,348 | ||||||
Ending balance, value at Jun. 30, 2022 | 978,824 | $ 17,348 | 252,917 | 562,878 | 0 | 145,681 | ||
Beginning balance, shares at Mar. 31, 2022 | 36,163 | 17,348 | ||||||
Beginning balance, value at Mar. 31, 2022 | 970,447 | $ 17,348 | 252,917 | 555,839 | 0 | 144,343 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 21,761 | 19,627 | 14,039 | 5,588 | ||||
Cash dividends paid to parent by MGE | (7,000) | (7,000) | ||||||
Distributions to parent from noncontrolling interest | (4,250) | (4,250) | ||||||
Ending balance, shares at Jun. 30, 2022 | 36,163 | 17,348 | ||||||
Ending balance, value at Jun. 30, 2022 | 978,824 | $ 17,348 | 252,917 | 562,878 | 0 | 145,681 | ||
Beginning balance, shares at Dec. 31, 2022 | 36,163 | 17,348 | ||||||
Beginning balance, value at Dec. 31, 2022 | 1,002,386 | $ 17,348 | 252,917 | 583,958 | 0 | 148,163 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 59,759 | 57,250 | 46,355 | 10,895 | ||||
Cash dividends paid to parent by MGE | (21,000) | (21,000) | ||||||
Distributions to parent from noncontrolling interest | (10,250) | (10,250) | ||||||
Ending balance, shares at Jun. 30, 2023 | 36,163 | 17,348 | ||||||
Ending balance, value at Jun. 30, 2023 | 1,028,386 | $ 17,348 | 252,917 | 609,313 | 0 | 148,808 | ||
Beginning balance, shares at Mar. 31, 2023 | 36,163 | 17,348 | ||||||
Beginning balance, value at Mar. 31, 2023 | 1,013,529 | $ 17,348 | 252,917 | 595,581 | 0 | 147,683 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | $ 28,681 | 27,607 | 22,232 | 5,375 | ||||
Cash dividends paid to parent by MGE | (8,500) | (8,500) | ||||||
Distributions to parent from noncontrolling interest | (4,250) | (4,250) | ||||||
Ending balance, shares at Jun. 30, 2023 | 36,163 | 17,348 | ||||||
Ending balance, value at Jun. 30, 2023 | $ 1,028,386 | $ 17,348 | $ 252,917 | $ 609,313 | $ 0 | $ 148,808 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Principles | 1. Summary of Significa nt Accounting Policies – MGE Energy and MGE. a. Basis of Presentation. This report is a combined report of MGE Energy and MGE. References in this report to "MGE Energy" are to MGE Energy, Inc. and its subsidiaries. References in this report to "MGE" are to Madison Gas and Electric Company. MGE Power Elm Road and MGE Power West Campus own electric generating assets and lease those assets to MGE. Both entities are variable interest entities under applicable authoritative accounting guidance. MGE is considered the primary beneficiary of these entities as a result of contractual agreements. As a result, MGE has consolidated MGE Power Elm Road and MGE Power West Campus. See Footnote 3 of Notes to Consolidated Financial Statements under Item 8, Financial Statements and Supplementary Data, of MGE Energy's and MGE's 2022 Annual Report on Form 10-K (the 2022 Annual Report on Form 10-K ). The accompanying consolidated financial statements as of June 30, 2023, and during the three and six months ended, are unaudited but include all adjustments that MGE Energy and MGE management consider necessary for a fair statement of their respective financial statements. All adjustments are of a normal, recurring nature except as otherwise disclosed. The year-end consolidated balance sheet information was derived from the audited balance sheet appearing in the 2022 Annual Report on Form 10-K but does not include all disclosures required by accounting principles generally accepted in the United States of America. These notes should be read in conjunction with the financial statements and the notes on pages 57 through 107 of the 2022 Annual Report on Form 10-K . b. Cash, Cash Equivalents, and Restricted Cash. The following table presents the components of total cash, cash equivalents, and restricted cash on the consolidated balance sheets. MGE Energy MGE June 30, December 31, June 30, December 31, (In thousands) 2023 2022 2023 2022 Cash and cash equivalents $ 16,507 $ 11,604 $ 8,574 $ 4,136 Restricted cash 838 867 838 867 Receivable - margin account 3,912 5,497 3,912 5,497 Cash, cash equivalents, and restricted cash $ 21,257 $ 17,968 $ 13,324 $ 10,500 Cash Equivalents All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. Restricted Cash MGE has certain cash accounts that are restricted to uses other than current operations and designated for a specific purpose. MGE's restricted cash accounts include cash held by trustees for certain employee benefits and cash deposits held by third parties. These are included in "Other current assets" on the consolidated balance sheets. Receivable – Margin Account Cash amounts held by counterparties as margin collateral for certain financial transactions are recorded as Receivable – margin account in "Other current assets" on the consolidated balance sheets. The costs being hedged are fuel for electric generation, purchased power, and cost of gas sold. c. Property, Plant, and Equipment. Columbia. An asset that will be retired in the near future and substantially in advance of its previously expected retirement date is subject to abandonment accounting. In the second quarter of 2021, the operator of Columbia received approval from MISO to retire Columbia Units 1 and 2. The co-owners intend to retire Unit 1 and Unit 2 by June 2026. Final timing and retirement dates are subject to change depending on operational, regulatory, and other factors. As of June 30, 2023, early retirement of Columbia was probable. The net book value of our ownership share of this generating unit was $ 139.0 million as of June 30, 2023. This amount was classified as plant to be retired within "Property, plant, and equipment, net" on the consolidated balance sheets. Assets for Columbia Unit 1 and Unit 2 are currently included in rate base, and MGE continues to depreciate them on a straight-line basis using the composite depreciation rates approved by the PSCW that included retirement dates of 2029 for both Units. If it becomes probable that regulators will disallow full recovery or a return on the remaining net book value of a generating unit that is either abandoned or probable of being abandoned, an impairment loss would be required. An impairment loss would be recorded to the extent that the remaining net book value of the generating unit exceeds the present value of the amount expected to be recovered from ratepayers. No impairment was recorded as of June 30, 2023 . |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | 2. New Ac counti ng Standards - MGE Energy and MGE. MGE Energy and MGE reviewed FASB authoritative guidance recently issued, none of which are expected to have a material impact on their consolidated results of operations, financial condition, or cash flows. |
Investment in ATC and ATC Holdc
Investment in ATC and ATC Holdco | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in ATC and ATC Holdco | 3. Investme nt in ATC and ATC Holdco - MGE Energy and MGE. ATC owns and operates electric transmission facilities primarily in Wisconsin. MGE received an interest in ATC when it, like other Wisconsin electric utilities, contributed its electric transmission facilities to ATC as required by Wisconsin law. That interest is presently held by MGE Transco, a subsidiary of MGE Energy. ATC Holdco was formed by several members of ATC, including MGE Energy, to pursue electric transmission development and investments outside of Wisconsin. The ownership interest in ATC Holdco is held by MGEE Transco, a subsidiary of MGE Energy. MGE Transco and MGEE Transco have accounted for their investments in ATC and ATC Holdco, respectively, under the equity method of accounting. Equity earnings from investments are recorded as "Other income" on the consolidated statements of income of MGE Energy. MGE Transco recorded the following amounts related to its investment in ATC: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Equity earnings from investment in ATC $ 2,599 $ 2,592 $ 5,182 $ 5,070 Dividends received from ATC 2,042 1,958 4,248 3,959 Capital contributions to ATC 1,601 540 1,958 1,783 ATC Holdco was formed in December 2016. ATC Holdco's transmission development activities have been suspended for the near term. In July 2023, MGE Transco made a $ 1.1 million capital contribution to ATC. ATC's summarized financial data is as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Operating revenues $ 203,776 $ 191,605 $ 404,202 $ 382,604 Operating expenses ( 101,517 ) ( 95,256 ) ( 200,593 ) ( 190,747 ) Other income, net 565 344 956 748 Interest expense, net ( 33,504 ) ( 29,059 ) ( 66,414 ) ( 57,499 ) Earnings before members' income taxes $ 69,320 $ 67,634 $ 138,151 $ 135,106 MGE receives transmission and other related services from ATC. During the three and six months ended June 30, 2023, MGE recorded $ 8.5 million and $ 16.9 million, respectively, for transmission service compared to $ 7.8 million and $ 15.7 million for comparable periods in 2022. MGE also provides a variety of operational, maintenance, and project management work for ATC, which is reimbursed by ATC. As of June 30, 2023, and December 31, 2022, MGE had a receivable due from ATC of $ 5.2 million and $ 4.8 million, respectively. The receivable is primarily related to transmission interconnection activities at Badger Hollow and Paris solar generation sites. MGE will be reimbursed for these costs after the new generation assets are placed into service. |
Taxes
Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Taxes | 4. Taxes - MGE E nergy and MGE. Effective Tax Rate. The consolidated income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before income taxes, as follows: MGE Energy MGE Three Months Ended June 30, 2023 2022 2023 2022 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.2 6.2 6.2 Amortized investment tax credits ( 0.7 ) ( 0.7 ) ( 0.7 ) ( 0.7 ) Credit for electricity from renewable energy ( 5.2 ) ( 5.7 ) ( 5.6 ) ( 6.2 ) AFUDC equity, net ( 0.4 ) ( 0.4 ) ( 0.4 ) ( 0.4 ) Amortization of utility excess deferred tax - tax reform (a) ( 1.6 ) ( 1.9 ) ( 1.7 ) ( 2.6 ) Other, net, individually insignificant 0.1 — 0.1 — Effective income tax rate 19.4 % 18.5 % 18.9 % 17.3 % MGE Energy MGE Six Months Ended June 30, 2023 2022 2023 2022 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.2 6.2 6.2 Amortized investment tax credits ( 0.7 ) ( 0.7 ) ( 0.7 ) ( 0.8 ) Credit for electricity from renewable energy ( 5.6 ) ( 5.6 ) ( 6.1 ) ( 6.1 ) AFUDC equity, net ( 0.4 ) ( 0.4 ) ( 0.5 ) ( 0.5 ) Amortization of utility excess deferred tax - tax reform (a) ( 1.7 ) ( 1.9 ) ( 1.8 ) ( 2.0 ) Other, net, individually insignificant ( 0.1 ) ( 0.1 ) ( 0.1 ) ( 0.1 ) Effective income tax rate 18.7 % 18.5 % 18.0 % 17.7 % (a) Included are impacts of the 2017 Tax Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For both the three months ended June 30, 2023 and 2022, MGE recognized $ 0.9 million. For the six months ended June 30, 2023 and 2022, MGE recognized $ 1.8 million and $ 1.9 million, respectively. Included in the 2022 and 2023 rate settlement was a net collection from customers of the gas portion of deficient deferred taxes related to the 2017 Tax Act not restricted by IRS normalization rules. For both the three months ended June 30, 2023 and 2022, MGE recognized $ 0.4 million. For both the six months ended June 30, 2023 and 2022, MGE recognized $ 0.7 million. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Plans | 5. Pensi on and Other Postretirement Plans - MGE Energy and MGE. MGE maintains qualified and nonqualified pension plans, health care, and life insurance benefits and defined contribution 401(k) benefit plans for its employees and retirees. The components of net periodic benefit cost, other than the service cost component, are recorded in "Other income, net" on the consolidated statements of income. The service cost component is recorded in "Other operations and maintenance" on the consolidated statements of income. MGE has regulatory treatment and recognizes regulatory assets or liabilities for timing differences between when net periodic benefit costs are recovered and when costs are recognized. The following table presents the components of net periodic benefit costs recognized. Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Pension Benefits Components of net periodic benefit cost: Service cost $ 694 $ 1,195 $ 1,446 $ 2,532 Interest cost 4,337 2,784 8,659 5,580 Expected return on assets ( 6,302 ) ( 7,844 ) ( 12,624 ) ( 15,695 ) Amortization of: Prior service credit — ( 5 ) — ( 10 ) Actuarial loss 492 484 880 1,208 Net periodic benefit (credit) cost $ ( 779 ) $ ( 3,386 ) $ ( 1,639 ) $ ( 6,385 ) Postretirement Benefits Components of net periodic benefit cost: Service cost $ 190 $ 314 $ 390 $ 647 Interest cost 835 479 1,654 970 Expected return on assets ( 646 ) ( 839 ) ( 1,297 ) ( 1,682 ) Amortization of: Transition obligation — — 1 1 Prior service credit — ( 75 ) — ( 149 ) Actuarial (gain) loss ( 65 ) 24 ( 95 ) 72 Net periodic benefit (credit) cost $ 314 $ ( 97 ) $ 653 $ ( 141 ) As approved by the PSCW, MGE is allowed to defer differences between actual employee benefit plan costs and costs reflected in current rates. The deferred costs may be recovered or refunded in MGE's next rate filing. During the three and six months ended June 30, 2023, MGE deferred $ 0.4 million and $ 0.8 million, respectively, of pension and other postretirement costs. During the three and six months ended June 30, 2022, MGE recovered $ 0.3 million and $ 0.6 million, respectively, of pension and other postretirement costs previously deferred. These costs have not been reflected in the table above. |
Equity and Financing Arrangemen
Equity and Financing Arrangements | 6 Months Ended |
Jun. 30, 2023 | |
Equity and Financing Arrangements Disclosure [Abstract] | |
Equity and Financing Arrangements | 6. Equity and Fi nancing Arrangements. a. Common Stock - MGE Energy. Shares of MGE Energy common stock are sold through MGE Energy's Direct Stock Purchase and Dividend Reinvestment Plan (the Stock Plan). Those shares may be newly issued shares or shares that are purchased in the open market by an independent agent for participants in the Stock Plan. Sales of newly issued shares under the Stock Plan are covered by a shelf registration statement that MGE Energy filed with the SEC. During the three and six months ended June 30, 2023 and 2022 , MGE Energy issued no new shares of common stock under the Stock Plan. b. Dilutive Shares Calculation - MGE Energy. As of June 30, 2023, 19,290 shares were included in the calculation of diluted earnings per share related to nonvested equity awards. See Footnote 7 for additional information on share-based compensation awards. c. Long-Term Debt - MGE Energy and MGE. In March 2023, $ 19.3 million of City of Madison, Wisconsin Industrial Development Revenue Refunding Bonds (Madison Gas and Electric Company Project), Series 2020A were remarketed. As a result of the remarketing, the Series 2020A Bonds will carry an interest rate of 3.75 % per annum over its remaining 5-year life. The remarketed Series 2020A Bonds will not be subject to further remarketing or optional redemption prior to their maturity. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 7. Share-Based C ompensation - MGE Energy and MGE. During the three and six months ended June 30, 2023, MGE recorded $ 0.7 million and $ 1.8 million, respectively, in compensation expense related to share-based compensation awards compared to $ 0.3 million and $ 0.7 million for the comparable periods in 2022. In the first quarter of 2023, cash payments of $ 3.6 million were distributed related to awards that were granted in 2020 under the 2013 Director Incentive Plan, 2018 under the 2006 Performance Unit Plan, and 2020 under the 2020 Performance Unit Plan. In March 2023, MGE issued 11,320 performance units and 20,472 restricted stock units under the 2021 Plan to eligible employees and non-employee directors. MGE recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Awards classified as equity awards are measured based on their grant-date fair value. Awards classified as liability awards are recorded at fair value each reporting period. The performance units can be paid out in either cash, shares of common stock or a combination of cash and stock and are classified as a liability award. The restricted stock units will be paid out in shares of common stock, and therefore are classified as equity awards. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitmen ts and Contingencies - MGE Energy and MGE. a. Environmental. In February 2021, MGE and the other co-owners of Columbia announced plans to retire that facility. The co-owners intend to retire Unit 1 and Unit 2 by June 2026. Final timing and retirement dates are subject to change depending on operational, regulatory, and other factors. Effects of the environmental compliance requirements discussed below will depend upon the final retirement dates approved and compliance requirement dates. MGE Energy and MGE are subject to frequently changing local, state, and federal regulations concerning air quality, water quality, land use, threatened and endangered species, hazardous materials handling, and solid waste disposal. These regulations affect the manner in which operations are conducted, the costs of operations, as well as capital and operating expenditures. Several of these environmental rules are subject to legal challenges, reconsideration and/or other uncertainties. Regulatory initiatives, proposed rules, and court challenges to adopted rules could have a material effect on capital expenditures and operating costs. Management believes compliance costs will be recovered in future rates based on previous treatment of environmental compliance projects. These initiatives, proposed rules, and court challenges include: • The EPA's promulgated water Effluent Limitations Guidelines (ELG) and standards for steam electric power plants which focus on the reduction of metals and other pollutants in wastewater from new and existing power plants. With the closure of the wet pond system (as described in further detail in the CCR section below), Columbia will be in compliance with ELG requirements. The Elm Road Units must satisfy the ELG rule's requirements no later than December 2023, as determined by the permitting authority. In December 2021, the PSCW approved a CA application for installation of additional wastewater treatment equipment to comply with the ELG Rule. MGE's share of the costs to comply with the rule is estimated to be approximately $ 4 million. Construction began in March 2022 and is scheduled to be completed by the end of 2023. In March 2023, the EPA published a proposed update to this rule that further regulates the wastewater discharges associated with coal-fired power plants. The proposed rule focuses on wastewater discharges from flue gas desulfurization, bottom ash transport water, and combustion residual leachate. The proposed rule includes some flexibility for plants that have already installed pollution controls based on previous versions of the rule, and flexibility for plants that will be retiring or switching to natural gas by certain dates. MGE expects this rule, if finalized as proposed, to impact our Elm Road Units. However, we will not know the impact of this rule with any certainty until the rule is finalized. • The EPA's cooling water intake rules require cooling water intake structures at electric power plants to meet best technology available (BTA) standards to reduce the mortality from entrainment (drawing aquatic life into a plant's cooling system) and impingement (trapping aquatic life on screens). Blount's WPDES permit assumes that the plant meets BTA standards for the duration of its permit which expires in 2023. The Wisconsin Department of Natural Resources (WDNR) will include any BTA requirements in Blount's next permit renewal, which is expected to be completed and effective in 2023. Once the WDNR determines the BTA requirements at Blount, MGE will be able to determine any compliance costs of meeting Blount's permit requirements. Intakes at Columbia are subject to this rule. The Columbia operator's most recent permit requires that studies of intake structures be submitted to the WDNR by November 2023 to help determine BTA. Columbia's permit renewal application is due in 2024. BTA improvements may be limited or not required in the renewal permit given the owners' plan to retire both units by June of 2026. MGE will continue to work with Columbia's operator to evaluate regulatory requirements applicable to the planned retirements. MGE does not expect this rule to have a material effect on Columbia. • Greenhouse Gas (GHG) new source performance standards (NSPS) and emission guidelines established under the Clean Air Act for states to use in developing plans to control GHG emissions from fossil fuel-fired electric generating units (EGUs), including existing and proposed regulations governing existing, new, or modified fossil-fuel generating units. In May 2023, the EPA proposed a rule under section 111 of the Clean Air Act to establish NSPS and emission guidelines to limit GHG emissions from existing fossil fuel-fired EGUs and new, modified, and/or reconstructed fossil fuel-fired power plants. The EPA anticipates promulgating a final rule in 2024. MGE fossil fuel-fired generation units would be subject to the rule as proposed. MGE expects larger-sized units with long range retirement plans, West Riverside and the Elm Road units, may need to employ technology to achieve reduction. Columbia may not be impacted due to the owners' planned retirement of the existing fossil fuel fired units by 2026. However, we will not know the impact of this rule with any certainty until the rule is finalized. MGE will continue to evaluate greenhouse gas rule developments, including any new EPA actions towards final rule development. • The EPA's rule to regulate ambient levels of ozone through the 2015 Ozone National Ambient Air Quality Standards (NAAQS). The Elm Road Units are located in Milwaukee County, Wisconsin, a "moderate" nonattainment area. The deadline for moderate classified areas to meet attainment standards is August 2024. MGE will continue to monitor the WDNR State Implementation Plan development, summer Ozone levels in Milwaukee County, and the extent to which any requirements will impact the Elm Road Units. At this time, the operator of the Elm Road Units does not expect that the 2015 Ozone NAAQS will have a material effect on the Units based on final designations. • The EPA's proposed rule to regulate Fine Particulate Matter (PM2.5). In January 2023, the EPA published a proposed rule to lower the average annual PM2.5 NAAQS from its current level. The EPA has also solicited comments on whether to lower the annual standard further than the proposed level, and whether or not to also lower the maximum 24-hour limit to be consistent with recommendations from its Clean Air Scientific Advisory Committee (CASAC). Neither the proposed annual PM2.5 NAAQS or the 24-hour limit recommended by the CASAC are expected to impact the counties where Columbia and the Elm Road Units are located. However, if the annual PM2.5 NAAQS is lowered further than the EPA's currently proposed value, Milwaukee County may be in nonattainment with the standard. A nonattainment designation would require the State of Wisconsin to develop a plan to get into attainment, which may include additional emission limitations for the Elm Road units. However, we will not know the impact of this rule until it is finalized, the EPA determines the attainment status of Wisconsin counties, and the State of Wisconsin develops an attainment implementation plan. MGE will continue to follow the rule's developments. • Rules regulating nitrogen oxide (NO x ) and sulfur dioxide (SO 2 ) emissions, including the Cross State Air Pollution Rule (CSAPR) and Clean Air Visibility Rule. The EPA's CSAPR and its progeny are a suite of interstate air pollution transport rules designed to reduce ozone and PM2.5 ambient air levels in areas that the EPA has determined as being significantly impacted by pollution from upwind states. This is accomplished through a reduction in NO x and SO 2 from qualifying fossil-fuel fired power plants in upwind "contributing" states. NO x and SO 2 contribute to fine particulate pollution and NO x contributes to ozone formation in downwind areas. Reductions are generally achieved through a cap-and-trade system. Individual plants can meet their caps through reducing emissions and/or buying allowances on the market. In March 2023, the EPA finalized its Federal Implementation Plan (FIP) to address state obligations under the Clean Air Act "good neighbor" provisions for the 2015 Ozone NAAQS. The final rule impacts 23 states, including Wisconsin. For Wisconsin, the rule includes revisions to the current obligations for fossil-fuel power generation, which includes Blount, Columbia, the Elm Road Units, WCCF, West Riverside, and West Marinette. The final rule is effective partway through the 2023 ozone season on August 1, 2023. Emissions budgets can be met with planned retirements, fuel switching, and immediately available measures, including consistently operating emissions controls already installed at power plants. MGE expects to meet the emission reductions with immediately available measures. In 2026, additional obligations would go into effect, including a further reduction in emissions budgets. Wisconsin would need to submit a State Implementation Plan (SIP) to meet its obligations or accept the EPA's FIP. MGE is reviewing the final rule. Based on our current evaluation, the 2026 additional emission reductions may impact the Elm Road Units and additional upgrades may be needed to comply, however, we will not know the final impact until evaluations are completed. • The EPA's Coal Combustion Residuals (CCR) Rule. The CCR rule regulates the disposal of solid waste coal ash and defines what ash use activities would be considered generally exempt beneficial reuse of coal ash. The CCR rule also regulates landfills, ash ponds, and other surface impoundments used for coal combustion residuals by regulating their design, location, monitoring, and operation. The CCR rule requires owners or operators of coal-fired power plants to stop transporting CCR and non-CCR wastewater to unlined surface impoundments. In addition, regulated entities must initiate impoundment closure as soon as feasible and in no event later than April 2021, unless the EPA grants an extension. A site-specific extension to initiate closure of the primary ash pond at Columbia by March 31, 2023, was requested, and was met. The EPA has confirmed that Columbia met the required extension requirements, has documented that Columbia ceased the receipt of waste on March 23, 2023, and has noted that Columbia's obligations under this portion of the CCR Rule are now complete. In July 2021, the PSCW approved a CA application filed by MGE and the other owners of Columbia to install technology required to cease bottom ash transport water discharges rather than extend the longevity of the ash ponds. The coal combustion residuals system that replaced the unlined surface impoundment was placed in-service in March 2023. MGE's share of the costs of the project is approximately $ 4 million. Review of the Elm Road Units has indicated that the costs to comply with the CCR rule are not expected to be significant. b. Legal Matters. MGE is involved in various legal matters that are being defended and handled in the normal course of business. MGE accrues for costs that are probable of being incurred and subject to reasonable estimation. The accrued amount for these matters is not material to the financial statements. MGE does not expect the resolution of these matters to have a material adverse effect on its consolidated results of operations, financial condition, or cash flows. Certain environmental groups filed petitions against the PSCW regarding MGE's rate settlement and electric limited reopener. MGE has intervened in the petitions in cooperation with the PSCW. See Footnote 9.a. for more information regarding this matter. c. Pur chase Contracts. MGE Energy and MGE have entered into various commodity supply, transportation, and storage contracts to meet their obligations to deliver electricity and natural gas to customers. Management expects to recover these costs in future customer rates. The following table shows future commitments related to purchase contracts as of June 30, 2023: (In thousands) 2023 2024 2025 2026 2027 Thereafter Coal (a) $ 20,814 $ 23,039 $ 14,426 $ 2,868 $ — $ — Natural gas (b) 22,107 41,377 25,517 14,873 2,165 11,995 $ 42,921 $ 64,416 $ 39,943 $ 17,741 $ 2,165 $ 11,995 (a) Total coal commitments for MGE's share of 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. (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 approved by FERC but may be subject to change. MGE's natural gas supply commitments include market-based pricing. |
Rate Matters
Rate Matters | 6 Months Ended |
Jun. 30, 2023 | |
Regulated Operations [Abstract] | |
Rate Matters | 9. Rate Mat ters - MGE Energy and MGE. a. Rate Proceedings. Rate increase Return on Common Equity Common Equity Component of Regulatory Capital Structure Effective Date Approved 2022/2023 settlement (a) Electric 8.81 % 9.8 % 55.6 % 1/1/2022 Gas 2.15 % 9.8 % 55.6 % 1/1/2022 Gas 0.96 % 9.8 % 55.6 % 1/1/2023 Approved limited 2023 reopener (b) Electric 9.01 % 9.8 % 55.6 % 1/1/2023 Proposed 2024/2025 rate proceeding (c) Electric (d) 3.75 % 9.8 % 56.1 % 1/1/2024 Gas (d) 2.56 % 9.8 % 56.1 % 1/1/2024 Electric (e) 3.41 % 9.8 % 56.1 % 1/1/2025 Gas (e) 1.66 % 9.8 % 56.1 % 1/1/2025 (a) The electric and gas rate increases were driven by an increase in rate base including our investments in Badger Hollow I and a new customer information system. Also driving the requested electric increase were higher fuel and purchased power costs as well as the completion in 2021 of the one-time return of the electric excess deferred tax credit related to the 2017 Tax Act not restricted by IRS normalization rules. Included in the electric residential rate is a reduction in the customer charge. (b) The electric rate increase was driven by additions to generation assets including our investments in Badger Hollow II (solar), Paris (solar and battery), Red Barn (wind), and West Riverside (natural gas). In addition, the reopener request included an increase in fuel costs and the recovery of deferred 2021 fuel costs. The reopener also revised the depreciation schedule for Columbia Unit 2 and shared equipment to 2029 to align with the depreciation schedule for Unit 1. (c) In April 2023, MGE filed a proposed 2-year rate case and PSCW approval is pending. A final order is expected before the end of the year. (d) The proposed electric rate increase is driven by an increase in rate base including our investments made in West Riverside, local solar, and continued investment in grid modernization. Also driving the requested electric increase are higher costs for transmission, pension and OPEB, and uncollectible costs (including costs previously deferred from prior years). This increase in electric costs is offset by a decrease in fuel costs and benefit from lower tax expense (including impacts from the Inflation Reduction Act). The proposed gas rate increase is also attributable to our investment made in grid modernization and higher pension and OPEB and uncollectible costs (including costs previously deferred from prior years). The proposed gas increase is offset by a tax benefit related to excess deferred taxes. (e) The proposed electric and gas rate increases are driven by an increase in rate base for our continued investment in grid modernization projects and an increase in labor costs. Sierra Club and Vote Solar have filed petitions with the Dane County Circuit Court seeking review of the PSCW decisions approving MGE's electric and gas 2022/2023 rate settlement and 2023 electric limited reopener. The Dane County Circuit Court affirmed the PSCW's decision to approve the 2022/2023 rate settlement, and Sierra Club and Vote Solar have now appealed that decision to the Wisconsin Court of Appeals. The PSCW is named as the responding party; MGE is not named as a party. The Petitions challenge the amount of customer fixed charge that does not vary with usage. The requested relief is unclear. The revenue requirement approved by the PSCW in the settlement and limited reopener have not been challenged. The PSCW is expected to vigorously defend its approval of the rate case settlement and limited reopener. MGE has intervened in the proceedings to further defend the PSCW's decision. b. Fu el Rules. Fuel rules require Wisconsin utilities to defer electric fuel-related costs that fall outside a symmetrical cost tolerance band around the amount approved for a utility in its annual fuel proceedings. Any over- or under-recovery of the actual costs is determined in the following year and is then reflected in future billings to electric retail customers. The fuel rules bandwidth is set at plus or minus 2 % in 2023 and 1 % in 2022. The electric fuel-related costs are subject to an excess revenues test. Excess revenues are defined as revenues in the year in question that provide MGE with a greater return on common equity than authorized by the PSCW in MGE's latest rate order. The recovery of under-collected electric fuel-related costs would be reduced by the amount that exceeds the excess revenue test. These costs are subject to the PSCW's annual review of fuel costs completed in the year following the deferral. The following table summarizes deferred electric fuel-related costs: Fuel Costs ( in millions ) Refund or Recovery Period 2021 deferred fuel costs $ 3.3 (a) January 2023 through December 2023 (b) 2022 deferred fuel costs $ 8.8 (c) 2023 deferred fuel savings ($ 1.2 ) (d) (a) There was no change to the recovery in the fuel rules proceedings from the amount MGE deferred . (b) In August 2022, the PSCW issued a final decision in the 2021 fuel rules proceedings for MGE to include the recovery of these costs as part of the 2023 electric limited reopener. (c) These costs will be subject to the PSCW's annual review of 2022 fuel costs, expected to be completed in 2023. MGE has proposed to recover these costs over a 12-month period from October 2023 through September 2024. (d) These costs will be subject to the PSCW's annual review of 2023 fuel costs, expected to be completed in 2024. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Instruments | 10. Derivati ve and Hedging Instruments - MGE Energy and MGE. a. Purpose. As part of its regular operations, MGE enters into contracts, including options, swaps, futures, forwards, and other contractual commitments, to manage its exposure to commodity prices. To the extent that these contracts are derivatives, MGE assesses whether or not the normal purchases or normal sales exclusion applies. For contracts to which this exclusion cannot be applied, the derivatives are recognized in the consolidated balance sheets at fair value. MGE's financial commodity derivative activities are conducted in accordance with its electric and gas risk management program, which is approved by the PSCW and limits the volume MGE can hedge with specific risk management strategies. The maximum length of time over which cash flows related to energy commodities can be hedged is four years . If the derivative qualifies for regulatory deferral, the derivatives are marked to fair value and are offset with a corresponding regulatory asset or liability depending on whether the derivative is in a net loss or net gain position, respectively. The deferred gain or loss is recognized in earnings in the delivery month applicable to the instrument. Gains and losses related to hedges qualifying for regulatory treatment are refundable or recoverable in gas rates through the PGA or in electric rates as a component of the fuel rules mechanism. b. Notional Amounts. The gross notional volume of open derivatives is as follows: June 30, 2023 December 31, 2022 Commodity derivative contracts 391,760 MWh 353,600 MWh Commodity derivative contracts 6,960,000 Dth 8,070,000 Dth FTRs 4,018 MW 1,945 MW c. Financial Statement Presentation. MGE purchases and sells exchange-traded and over-the-counter options, swaps, and future contracts. These arrangements are primarily entered into to help stabilize the price risk associated with gas or power purchases. These transactions are employed by both MGE's gas and electric segments. Additionally, as a result of the firm transmission agreements that MGE holds on electricity transmission paths in the MISO market, MGE holds financial transmission rights (FTRs). An FTR is a financial instrument that entitles the holder to a stream of revenues or charges based on the differences in hourly day-ahead energy prices between two points on the transmission grid. The fair values of these instruments are offset with a corresponding regulatory asset/liability depending on whether they are in a net loss/gain position. Depending on the nature of the instrument, the gain or loss associated with these transactions will be reflected as cost of gas sold, fuel for electric generation, or purchased power expense in the delivery month applicable to the instrument. As of June 30, 2023, and December 31, 2022, the cost basis of exchange traded derivatives and FTRs exceeded their fair value by $ 5.0 million and $ 5.1 million, respectively. MGE was a party to a purchased power agreement that provided MGE with firm capacity and energy during a base term from June 1, 2012, through May 31, 2022. The agreement was accounted for as a derivative contract and was recognized at its fair value on the consolidated balance sheets. However, the derivative qualified for regulatory deferral and was recognized with a corresponding regulatory asset or liability depending on whether the fair value was in a loss or gain position. The actual cost was recognized in purchased power expense in the month of purchase. The following table summarizes the fair value of the derivative instruments on the consolidated balance sheets. All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, instruments are netted with the same counterparty under a master netting agreement as well as the netting of collateral. Derivative Derivative (In thousands) Assets Liabilities Balance Sheet Location June 30, 2023 Commodity derivative contracts (a) $ 1,016 $ 5,881 Other current liabilities Commodity derivative contracts (a) 28 581 Other deferred liabilities and other FTRs 401 — Other current assets December 31, 2022 Commodity derivative contracts (a) $ 2,164 $ 7,687 Other current liabilities Commodity derivative contracts (a) 802 476 Other deferred liabilities and other FTRs 103 — Other current assets (a) As of June 30, 2023, and December 31, 2022, collateral of $ 5.4 million and $ 5.2 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. The following 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 (In thousands) Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets June 30, 2023 Commodity derivative contracts $ 1,044 $ ( 1,044 ) $ — $ — FTRs 401 — — 401 December 31, 2022 Commodity derivative contracts $ 2,966 $ ( 2,966 ) $ — $ — FTRs 103 — — 103 Offsetting of Derivative Liabilities (In thousands) Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets June 30, 2023 Commodity derivative contracts $ 6,462 $ ( 1,044 ) $ ( 5,418 ) $ — December 31, 2022 Commodity derivative contracts $ 8,163 $ ( 2,966 ) $ ( 5,197 ) $ — The following tables summarize the unrealized and realized gains/losses related to the derivative instruments on the consolidated balance sheets and the consolidated statements of income. 2023 2022 (In thousands) Current and Long-Term Regulatory Asset (Liability) Other Current Assets Current and Long-Term Regulatory Asset (Liability) Other Current Assets Three Months Ended June 30: Balance as of April 1, $ 7,813 $ 455 $ ( 9,641 ) $ 267 Unrealized loss (gain) 92 — ( 5,988 ) — Realized (loss) gain reclassified to a deferred account ( 1,988 ) 1,988 1,551 ( 1,551 ) Realized (loss) gain reclassified to income statement ( 900 ) ( 1,369 ) 5,594 1,123 Balance as of June 30, $ 5,017 $ 1,074 $ ( 8,484 ) $ ( 161 ) Six Months Ended June 30: Balance as of January 1, $ 5,094 $ 2,747 $ ( 617 ) $ 770 Unrealized loss (gain) 14,395 — ( 17,321 ) — Realized (loss) gain reclassified to a deferred account ( 8,905 ) 8,905 2,830 ( 2,830 ) Realized (loss) gain reclassified to income statement ( 5,567 ) ( 10,578 ) 6,624 1,899 Balance as of June 30, $ 5,017 $ 1,074 $ ( 8,484 ) $ ( 161 ) Realized Losses (Gains) 2023 2022 (In thousands) Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Three Months Ended June 30: Commodity derivative contracts $ 2,942 $ — $ ( 5,333 ) $ 45 FTRs ( 673 ) — 597 — PPA — — ( 2,026 ) — Six Months Ended June 30: Commodity derivative contracts $ 10,387 $ 6,451 $ ( 5,645 ) $ ( 836 ) FTRs ( 693 ) — 600 — PPA — — ( 2,642 ) — 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 sheets and are recognized in earnings in the delivery month applicable to the instrument. As a result of the treatment described above, there are no unrealized gains or losses that flow through earnings. Certain counterparties extend MGE a credit limit. If MGE exceeds these limits, the counterparties may require collateral to be posted. As of June 30, 2023, and December 31, 2022 , no counterparties were in a net liability position. Nonperformance of counterparties to the non-exchange traded derivatives could expose MGE to credit loss. However, MGE enters into transactions only with companies that meet or exceed strict credit guidelines, and it monitors these counterparties on an ongoing basis to mitigate nonperformance risk in its portfolio. As of June 30, 2023 , no counterparties had defaulted. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 11. Fair Value of Fin ancial Instruments - MGE Energy and MGE. Fair value is defined as the price that would be received to sell an asset or would be paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting standard clarifies that fair value should be based on the assumptions market participants would use when pricing the asset or liability including assumptions about risk. The standard also establishes a three-level fair value hierarchy based upon the observability of the assumptions used and requires the use of observable market data when available. The levels are: Level 1 - Pricing inputs are quoted prices within active markets for identical assets or liabilities. Level 2 - Pricing inputs are quoted prices within active markets for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations that are correlated with or otherwise verifiable by observable market data. Level 3 - Pricing inputs are unobservable and reflect management's best estimate of what market participants would use in pricing the asset or liability. a. Fair Value of Financial Assets and Liabilities Recorded at the Carrying Amount. The carrying amount of cash, cash equivalents, and outstanding commercial paper approximates fair market value due to the short maturity of those investments and obligations. The estimated fair market value of long-term debt is based on quoted market prices for similar financial instruments. Since long-term debt is not traded in an active market, it is classified as Level 2. The estimated fair market value of financial instruments are as follows: June 30, 2023 December 31, 2022 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt (a) $ 691,069 $ 623,604 $ 643,560 $ 571,374 (a) Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.3 million and $ 4.0 million as of June 30, 2023, and December 31, 2022 , respectively. b. Recurring Fair Value Measurements. The following table presents the balances of assets and liabilities measured at fair value on a recurring basis. Fair Value as of June 30, 2023 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 1,445 $ 881 $ — $ 564 Exchange-traded investments 1,816 1,816 — — Total Assets $ 3,261 $ 2,697 $ — $ 564 Liabilities: Derivatives, net (b) $ 6,462 $ 3,006 $ — $ 3,456 Deferred compensation 5,050 — 5,050 — Total Liabilities $ 11,512 $ 3,006 $ 5,050 $ 3,456 MGE Assets: Derivatives, net (b) $ 1,445 $ 881 $ — $ 564 Exchange-traded investments 108 108 — — Total Assets $ 1,553 $ 989 $ — $ 564 Liabilities: Derivatives, net (b) $ 6,462 $ 3,006 $ — $ 3,456 Deferred compensation 5,050 — 5,050 — Total Liabilities $ 11,512 $ 3,006 $ 5,050 $ 3,456 Fair Value as of December 31, 2022 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 3,069 $ 1,353 $ — $ 1,716 Exchange-traded investments 1,516 1,516 — — Total Assets $ 4,585 $ 2,869 $ — $ 1,716 Liabilities: Derivatives, net (b) $ 8,163 $ 5,581 $ — $ 2,582 Deferred compensation 4,743 — 4,743 — Total Liabilities $ 12,906 $ 5,581 $ 4,743 $ 2,582 MGE Assets: Derivatives, net (b) $ 3,069 $ 1,353 $ — $ 1,716 Exchange-traded investments 115 115 — — Total Assets $ 3,184 $ 1,468 $ — $ 1,716 Liabilities: Derivatives, net (b) $ 8,163 $ 5,581 $ — $ 2,582 Deferred compensation 4,743 — 4,743 — Total Liabilities $ 12,906 $ 5,581 $ 4,743 $ 2,582 (b) As of June 30, 2023, and December 31, 2022, collateral of $ 5.4 million and $ 5.2 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. E xchange-traded Investments. Investments include exchange-traded investment securities valued using quoted prices on active exchanges and are therefore classified as Level 1. Deferred Compensation. The deferred compensation plans allow participants to defer certain cash compensation into notional investment accounts. These amounts are included within other deferred liabilities in the consolidated balance sheets. The value of certain deferred compensation obligations is based on the market value of the participants' notional investment accounts. The underlying notional investments are comprised primarily of equities, mutual funds, and fixed income securities which are based on directly and indirectly observable market prices. Since the deferred compensation obligations themselves are not exchanged in an active market, they are classified as Level 2. The value of legacy deferred compensation obligations are based on notional investments that earn interest based upon the semiannual rate of U.S. Treasury Bills having a 26 -week maturity increased by 1 % compounded monthly with a minimum annual rate of 7 %, compounded monthly. The notional investments are based upon observable market data, however, since the deferred compensation obligations themselves are not exchanged in an active market, they are classified as Level 2. Derivatives. Derivatives include exchange-traded derivative contracts, over-the-counter transactions, 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 Level 1. A small number of exchange-traded derivative contracts are valued using quoted market pricing in markets with insufficient volumes and are therefore considered unobservable and classified as Level 3. Transactions done with an over-the-counter party are on inactive markets and are therefore classified as Level 3. These transactions are valued based on quoted prices from markets with similar exchange-traded transactions. FTRs are priced based upon monthly auction results for identical or similar instruments in a closed market with limited data available and are therefore classified as Level 3. The purchased power agreement, with a term ended May 2022, (see Footnote 10 ) was valued using an internal pricing model and therefore was classified as Level 3. See the 2022 Annual Report on Form 10-K for details on the internal pricing model and significant unobservable inputs. The following table summarizes the changes in Level 3 commodity derivative assets and liabilities measured at fair value on a recurring basis. Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Beginning balance $ ( 3,740 ) $ 6,779 $ ( 866 ) $ 178 Realized and unrealized gains (losses): Included in regulatory assets 848 — ( 2,026 ) — Included in regulatory liability — 2,180 — 8,780 Included in other comprehensive income — — — — Included in earnings ( 903 ) 6,143 ( 5,574 ) 6,998 Included in current assets — 45 — 118 Purchases — 4,777 — 11,803 Sales — — — — Issuances — — — — Settlements 903 ( 10,965 ) 5,574 ( 18,918 ) Balance as of June 30, $ ( 2,892 ) $ 8,959 $ ( 2,892 ) $ 8,959 Total gains (losses) included in earnings attributed to (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) . Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Purchased power expense $ ( 903 ) $ 6,188 $ ( 5,574 ) $ 7,161 Cost of gas sold expense — ( 45 ) — ( 163 ) Total $ ( 903 ) $ 6,143 $ ( 5,574 ) $ 6,998 (c) MGE's exchange-traded derivative contracts, over-the-counter 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. |
Joint Plant Ownership
Joint Plant Ownership | 6 Months Ended |
Jun. 30, 2023 | |
Public Utilities, Property, Plant and Equipment [Abstract] | |
Jointly Owned Electric Utility Plant | 12. Joint Plant Constr uction Project Ownership - MGE Energy and MGE MGE has purchased, completed, or ongoing jointly-owned generation construction projects, as shown in the following table. Incurred costs are reflected in "Property, plant, and equipment, net" or "Construction work in progress" on the consolidated balance sheets. Project Ownership Interest Source Share of Share of Estimated (a) Costs incurred as (a) Date of Red Barn (b) 10 % Wind 9.16 MW $ 18 million $ 16.4 million April 2023 Badger Hollow II (c) 33 % Solar 50 MW $ 86 million (j) $ 53.3 million (f) Late 2023 or (g) Paris (d) 10 % Solar/Battery 20 MW/ 11 MW $ 61 million (j) $ 25.8 million 2024 (g)(h) Darien (e) 10 % Solar/Battery 25 MW/ 7.5 MW $ 50 million (j) $ 11.4 million 2024 (g)(h) West Riverside 3.4 % Natural Gas 25 MW $ 25 million $ 24.7 million (i) (a) Excluding AFUDC. (b) The Red Barn Wind Farm is located in the Towns of Wingville and Clifton in Grant County, Wisconsin. (c) The Badger Hollow II solar farm is located in southwestern Wisconsin in Iowa County, near the villages of Montfort and Cobb. (d) Paris Solar-Battery Park is located in the Town of Paris in Kenosha County, Wisconsin. (e) Darien Solar Energy Center is located in Walworth and Rock Counties in southern Wisconsin. (f) Includes an allocation of common facilities at Badger Hollow placed in service in November 2021. (g) Estimated date of commercial operation. (h) Battery storage timing to be determined. (i) In March 2023, MGE purchased an ownership interest in West Riverside, a natural gas-fired facility located in Beloit, WI, from WPL, operator and co-owner of the plant. West Riverside was placed in-service in 2020. (j) Estimated costs are expected to exceed PSCW previously approved CA levels. Notifications are provided to the PSCW when costs increase above CA levels. MGE has and will continue to request recovery of the updates in its rate case proceedings. MGE received specific approval to recover 100 % AFUDC on Badger Hollow II, Paris, and Darien. During the three and six months ended June 30, 2023, MGE recognized $ 1.5 million and $ 2.9 million, respectively, after tax, in AFUDC for these projects compared to $ 0.6 million and $ 1.0 million for the comparable periods in 2022. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 13. Reven ue - MGE Energy and MGE. Revenues disaggregated by revenue source were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, Electric revenues 2023 2022 2023 2022 Residential $ 40,324 $ 37,555 $ 81,544 $ 78,029 Commercial 63,428 57,960 122,965 112,409 Industrial 3,577 3,476 6,863 6,623 Other-retail/municipal 10,243 9,376 19,862 18,205 Total retail 117,572 108,367 231,234 215,266 Sales to the market 3,554 3,198 6,312 6,080 Other 366 385 1,190 693 Total electric revenues 121,492 111,950 238,736 222,039 Gas revenues Residential 16,688 23,648 72,412 80,331 Commercial/Industrial 8,207 15,172 49,710 55,423 Total retail 24,895 38,820 122,122 135,754 Gas transportation 1,235 1,340 3,767 3,216 Other 161 24 364 25 Total gas revenues 26,291 40,184 126,253 138,995 Non-regulated energy revenues 215 214 262 252 Total Operating Revenue $ 147,998 $ 152,348 $ 365,251 $ 361,286 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment Infor mation - MGE Energy and MGE. MGE Energy operates in the following business segments: electric utility, gas utility, nonregulated energy, transmission investment, and all other. See the 2022 Annual Report on Form 10-K for additional discussion of each of these segments. (In thousands) Electric Gas Non-Regulated Energy Transmission Investment All Others Consolidation/ Consolidated Total Three Months Ended June 30, 2023 Operating revenues $ 121,492 $ 26,291 $ 215 $ — $ — $ — $ 147,998 Interdepartmental revenues 193 2,770 10,195 — — ( 13,158 ) — Total operating revenues 121,685 29,061 10,410 — — ( 13,158 ) 147,998 Equity in earnings of investments — — — 2,629 — — 2,629 Net income (loss) 21,556 581 5,470 1,914 ( 840 ) — 28,681 Three Months Ended June 30, 2022 Operating revenues $ 111,950 $ 40,184 $ 214 $ — $ — $ — $ 152,348 Interdepartmental revenues ( 66 ) 8,058 10,353 — — ( 18,345 ) — Total operating revenues 111,884 48,242 10,567 — — ( 18,345 ) 152,348 Equity in earnings of investments — — — 2,623 — — 2,623 Net income 13,012 1,093 5,522 1,908 226 — 21,761 Six Months Ended June 30, 2023 Operating revenues $ 238,736 $ 126,253 $ 262 $ — $ — $ — $ 365,251 Interdepartmental revenues 141 9,431 20,745 — — ( 30,317 ) — Total operating revenues 238,877 135,684 21,007 — — ( 30,317 ) 365,251 Equity in earnings of investments — — — 5,240 — — 5,240 Net income (loss) 34,870 11,340 11,040 3,813 ( 1,304 ) — 59,759 Six Months Ended June 30, 2022 Operating revenues $ 222,039 $ 138,995 $ 252 $ — $ — $ — $ 361,286 Interdepartmental revenues 52 14,179 20,668 — — ( 34,899 ) — Total operating revenues 222,091 153,174 20,920 — — ( 34,899 ) 361,286 Equity in earnings of investments — — — 5,127 — — 5,127 Net income 27,629 13,177 10,874 3,730 771 — 56,181 (In thousands) Electric Gas Non-Regulated Energy Consolidation/ Consolidated Total Three Months Ended June 30, 2023 Operating revenues $ 121,492 $ 26,291 $ 215 $ — $ 147,998 Interdepartmental revenues 193 2,770 10,195 ( 13,158 ) — Total operating revenues 121,685 29,061 10,410 ( 13,158 ) 147,998 Net income attributable to MGE 21,556 581 5,470 ( 5,375 ) 22,232 Three Months Ended June 30, 2022 Operating revenues $ 111,950 $ 40,184 $ 214 $ — $ 152,348 Interdepartmental revenues ( 66 ) 8,058 10,353 ( 18,345 ) — Total operating revenues 111,884 48,242 10,567 ( 18,345 ) 152,348 Net income attributable to MGE 13,012 1,093 5,522 ( 5,588 ) 14,039 Six Months Ended June 30, 2023 Operating revenues $ 238,736 $ 126,253 $ 262 $ — $ 365,251 Interdepartmental revenues 141 9,431 20,745 ( 30,317 ) — Total operating revenues 238,877 135,684 21,007 ( 30,317 ) 365,251 Net income attributable to MGE 34,870 11,340 11,040 ( 10,895 ) 46,355 Six Months Ended June 30, 2022 Operating revenues $ 222,039 $ 138,995 $ 252 $ — $ 361,286 Interdepartmental revenues 52 14,179 20,668 ( 34,899 ) — Total operating revenues 222,091 153,174 20,920 ( 34,899 ) 361,286 Net income attributable to MGE 27,629 13,177 10,874 ( 10,344 ) 41,336 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Variable Interest Entities | MGE Power Elm Road and MGE Power West Campus own electric generating assets and lease those assets to MGE. Both entities are variable interest entities under applicable authoritative accounting guidance. MGE is considered the primary beneficiary of these entities as a result of contractual agreements. As a result, MGE has consolidated MGE Power Elm Road and MGE Power West Campus. |
Cash and Cash Equivalents | Cash Equivalents All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. |
Restricted Cash | Restricted Cash MGE has certain cash accounts that are restricted to uses other than current operations and designated for a specific purpose. MGE's restricted cash accounts include cash held by trustees for certain employee benefits and cash deposits held by third parties. These are included in "Other current assets" on the consolidated balance sheets. |
Receivable Margin Account | Receivable – Margin Account Cash amounts held by counterparties as margin collateral for certain financial transactions are recorded as Receivable – margin account in "Other current assets" on the consolidated balance sheets. The costs being hedged are fuel for electric generation, purchased power, and cost of gas sold. |
New Accounting Pronouncement Disclosure | MGE Energy and MGE reviewed FASB authoritative guidance recently issued, none of which are expected to have a material impact on their consolidated results of operations, financial condition, or cash flows. |
Investments - ATC and ATC Holdco | MGE Transco and MGEE Transco have accounted for their investments in ATC and ATC Holdco, respectively, under the equity method of accounting. |
Pension and Other Postretirement Benefit Plan Assets | MGE maintains qualified and nonqualified pension plans, health care, and life insurance benefits and defined contribution 401(k) benefit plans for its employees and retirees. The components of net periodic benefit cost, other than the service cost component, are recorded in "Other income, net" on the consolidated statements of income. The service cost component is recorded in "Other operations and maintenance" on the consolidated statements of income. MGE has regulatory treatment and recognizes regulatory assets or liabilities for timing differences between when net periodic benefit costs are recovered and when costs are recognized. |
Common Stock | MGE Energy common stock are sold through MGE Energy's Direct Stock Purchase and Dividend Reinvestment Plan (the Stock Plan). Those shares may be newly issued shares or shares that are purchased in the open market by an independent agent for participants in the Stock Plan. Sales of newly issued shares under the Stock Plan are covered by a shelf registration statement that MGE Energy filed with the SEC. |
Wisconsin Fuel Rules | Fuel rules require Wisconsin utilities to defer electric fuel-related costs that fall outside a symmetrical cost tolerance band around the amount approved for a utility in its annual fuel proceedings. Any over- or under-recovery of the actual costs is determined in the following year and is then reflected in future billings to electric retail customers. The fuel rules bandwidth is set at plus or minus 2 % in 2023 and 1 % in 2022. The electric fuel-related costs are subject to an excess revenues test. Excess revenues are defined as revenues in the year in question that provide MGE with a greater return on common equity than authorized by the PSCW in MGE's latest rate order. The recovery of under-collected electric fuel-related costs would be reduced by the amount that exceeds the excess revenue test. These costs are subject to the PSCW's annual review of fuel costs completed in the year following the deferral. |
Derivative Hedging | As part of its regular operations, MGE enters into contracts, including options, swaps, futures, forwards, and other contractual commitments, to manage its exposure to commodity prices. To the extent that these contracts are derivatives, MGE assesses whether or not the normal purchases or normal sales exclusion applies. For contracts to which this exclusion cannot be applied, the derivatives are recognized in the consolidated balance sheets at fair value. MGE's financial commodity derivative activities are conducted in accordance with its electric and gas risk management program, which is approved by the PSCW and limits the volume MGE can hedge with specific risk management strategies. The maximum length of time over which cash flows related to energy commodities can be hedged is four years . If the derivative qualifies for regulatory deferral, the derivatives are marked to fair value and are offset with a corresponding regulatory asset or liability depending on whether the derivative is in a net loss or net gain position, respectively. The deferred gain or loss is recognized in earnings in the delivery month applicable to the instrument. Gains and losses related to hedges qualifying for regulatory treatment are refundable or recoverable in gas rates through the PGA or in electric rates as a component of the fuel rules mechanism. |
Derivative Netting | All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, instruments are netted with the same counterparty under a master netting agreement as well as the netting of collateral. |
Recurring Fair Value Measurements | Fair value is defined as the price that would be received to sell an asset or would be paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting standard clarifies that fair value should be based on the assumptions market participants would use when pricing the asset or liability including assumptions about risk. The standard also establishes a three-level fair value hierarchy based upon the observability of the assumptions used and requires the use of observable market data when available. The levels are: Level 1 - Pricing inputs are quoted prices within active markets for identical assets or liabilities. Level 2 - Pricing inputs are quoted prices within active markets for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations that are correlated with or otherwise verifiable by observable market data. Level 3 - Pricing inputs are unobservable and reflect management's best estimate of what market participants would use in pricing the asset or liability. a. Fair Value of Financial Assets and Liabilities Recorded at the Carrying Amount. The carrying amount of cash, cash equivalents, and outstanding commercial paper approximates fair market value due to the short maturity of those investments and obligations. The estimated fair market value of long-term debt is based on quoted market prices for similar financial instruments. Since long-term debt is not traded in an active market, it is classified as Level 2. Investments include exchange-traded investment securities valued using quoted prices on active exchanges and are therefore classified as Level 1. Deferred Compensation. The deferred compensation plans allow participants to defer certain cash compensation into notional investment accounts. These amounts are included within other deferred liabilities in the consolidated balance sheets. The value of certain deferred compensation obligations is based on the market value of the participants' notional investment accounts. The underlying notional investments are comprised primarily of equities, mutual funds, and fixed income securities which are based on directly and indirectly observable market prices. Since the deferred compensation obligations themselves are not exchanged in an active market, they are classified as Level 2. The value of legacy deferred compensation obligations are based on notional investments that earn interest based upon the semiannual rate of U.S. Treasury Bills having a 26 -week maturity increased by 1 % compounded monthly with a minimum annual rate of 7 %, compounded monthly. The notional investments are based upon observable market data, however, since the deferred compensation obligations themselves are not exchanged in an active market, they are classified as Level 2. Derivatives. Derivatives include exchange-traded derivative contracts, over-the-counter transactions, 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 Level 1. A small number of exchange-traded derivative contracts are valued using quoted market pricing in markets with insufficient volumes and are therefore considered unobservable and classified as Level 3. Transactions done with an over-the-counter party are on inactive markets and are therefore classified as Level 3. These transactions are valued based on quoted prices from markets with similar exchange-traded transactions. FTRs are priced based upon monthly auction results for identical or similar instruments in a closed market with limited data available and are therefore classified as Level 3. The purchased power agreement, with a term ended May 2022, (see Footnote 10 ) was valued using an internal pricing model and therefore was classified as Level 3. See the 2022 Annual Report on Form 10-K for details on the internal pricing model and significant unobservable inputs. |
Summary of Significant Accoun_2
Summary of Significant Accounting Principles (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash, Cash Equivalents, And Restricted Cash [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | The following table presents the components of total cash, cash equivalents, and restricted cash on the consolidated balance sheets. MGE Energy MGE June 30, December 31, June 30, December 31, (In thousands) 2023 2022 2023 2022 Cash and cash equivalents $ 16,507 $ 11,604 $ 8,574 $ 4,136 Restricted cash 838 867 838 867 Receivable - margin account 3,912 5,497 3,912 5,497 Cash, cash equivalents, and restricted cash $ 21,257 $ 17,968 $ 13,324 $ 10,500 |
Investment in ATC and ATC Hol_2
Investment in ATC and ATC Holdco (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments Financial Data | MGE Transco recorded the following amounts related to its investment in ATC: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Equity earnings from investment in ATC $ 2,599 $ 2,592 $ 5,182 $ 5,070 Dividends received from ATC 2,042 1,958 4,248 3,959 Capital contributions to ATC 1,601 540 1,958 1,783 ATC's summarized financial data is as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Operating revenues $ 203,776 $ 191,605 $ 404,202 $ 382,604 Operating expenses ( 101,517 ) ( 95,256 ) ( 200,593 ) ( 190,747 ) Other income, net 565 344 956 748 Interest expense, net ( 33,504 ) ( 29,059 ) ( 66,414 ) ( 57,499 ) Earnings before members' income taxes $ 69,320 $ 67,634 $ 138,151 $ 135,106 |
Taxes (Tables)
Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Effective Tax Rate Reconciliation | The consolidated income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before income taxes, as follows: MGE Energy MGE Three Months Ended June 30, 2023 2022 2023 2022 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.2 6.2 6.2 Amortized investment tax credits ( 0.7 ) ( 0.7 ) ( 0.7 ) ( 0.7 ) Credit for electricity from renewable energy ( 5.2 ) ( 5.7 ) ( 5.6 ) ( 6.2 ) AFUDC equity, net ( 0.4 ) ( 0.4 ) ( 0.4 ) ( 0.4 ) Amortization of utility excess deferred tax - tax reform (a) ( 1.6 ) ( 1.9 ) ( 1.7 ) ( 2.6 ) Other, net, individually insignificant 0.1 — 0.1 — Effective income tax rate 19.4 % 18.5 % 18.9 % 17.3 % MGE Energy MGE Six Months Ended June 30, 2023 2022 2023 2022 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.2 6.2 6.2 Amortized investment tax credits ( 0.7 ) ( 0.7 ) ( 0.7 ) ( 0.8 ) Credit for electricity from renewable energy ( 5.6 ) ( 5.6 ) ( 6.1 ) ( 6.1 ) AFUDC equity, net ( 0.4 ) ( 0.4 ) ( 0.5 ) ( 0.5 ) Amortization of utility excess deferred tax - tax reform (a) ( 1.7 ) ( 1.9 ) ( 1.8 ) ( 2.0 ) Other, net, individually insignificant ( 0.1 ) ( 0.1 ) ( 0.1 ) ( 0.1 ) Effective income tax rate 18.7 % 18.5 % 18.0 % 17.7 % (a) Included are impacts of the 2017 Tax Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For both the three months ended June 30, 2023 and 2022, MGE recognized $ 0.9 million. For the six months ended June 30, 2023 and 2022, MGE recognized $ 1.8 million and $ 1.9 million, respectively. Included in the 2022 and 2023 rate settlement was a net collection from customers of the gas portion of deficient deferred taxes related to the 2017 Tax Act not restricted by IRS normalization rules. For both the three months ended June 30, 2023 and 2022, MGE recognized $ 0.4 million. For both the six months ended June 30, 2023 and 2022, MGE recognized $ 0.7 million. |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The following table presents the components of net periodic benefit costs recognized. Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Pension Benefits Components of net periodic benefit cost: Service cost $ 694 $ 1,195 $ 1,446 $ 2,532 Interest cost 4,337 2,784 8,659 5,580 Expected return on assets ( 6,302 ) ( 7,844 ) ( 12,624 ) ( 15,695 ) Amortization of: Prior service credit — ( 5 ) — ( 10 ) Actuarial loss 492 484 880 1,208 Net periodic benefit (credit) cost $ ( 779 ) $ ( 3,386 ) $ ( 1,639 ) $ ( 6,385 ) Postretirement Benefits Components of net periodic benefit cost: Service cost $ 190 $ 314 $ 390 $ 647 Interest cost 835 479 1,654 970 Expected return on assets ( 646 ) ( 839 ) ( 1,297 ) ( 1,682 ) Amortization of: Transition obligation — — 1 1 Prior service credit — ( 75 ) — ( 149 ) Actuarial (gain) loss ( 65 ) 24 ( 95 ) 72 Net periodic benefit (credit) cost $ 314 $ ( 97 ) $ 653 $ ( 141 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | The following table shows future commitments related to purchase contracts as of June 30, 2023: (In thousands) 2023 2024 2025 2026 2027 Thereafter Coal (a) $ 20,814 $ 23,039 $ 14,426 $ 2,868 $ — $ — Natural gas (b) 22,107 41,377 25,517 14,873 2,165 11,995 $ 42,921 $ 64,416 $ 39,943 $ 17,741 $ 2,165 $ 11,995 (a) Total coal commitments for MGE's share of 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. (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 approved by FERC but may be subject to change. MGE's natural gas supply commitments include market-based pricing. |
Rate Matters (Tables)
Rate Matters (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Regulated Operations [Abstract] | |
Rate Proceedings | Rate increase Return on Common Equity Common Equity Component of Regulatory Capital Structure Effective Date Approved 2022/2023 settlement (a) Electric 8.81 % 9.8 % 55.6 % 1/1/2022 Gas 2.15 % 9.8 % 55.6 % 1/1/2022 Gas 0.96 % 9.8 % 55.6 % 1/1/2023 Approved limited 2023 reopener (b) Electric 9.01 % 9.8 % 55.6 % 1/1/2023 Proposed 2024/2025 rate proceeding (c) Electric (d) 3.75 % 9.8 % 56.1 % 1/1/2024 Gas (d) 2.56 % 9.8 % 56.1 % 1/1/2024 Electric (e) 3.41 % 9.8 % 56.1 % 1/1/2025 Gas (e) 1.66 % 9.8 % 56.1 % 1/1/2025 (a) The electric and gas rate increases were driven by an increase in rate base including our investments in Badger Hollow I and a new customer information system. Also driving the requested electric increase were higher fuel and purchased power costs as well as the completion in 2021 of the one-time return of the electric excess deferred tax credit related to the 2017 Tax Act not restricted by IRS normalization rules. Included in the electric residential rate is a reduction in the customer charge. (b) The electric rate increase was driven by additions to generation assets including our investments in Badger Hollow II (solar), Paris (solar and battery), Red Barn (wind), and West Riverside (natural gas). In addition, the reopener request included an increase in fuel costs and the recovery of deferred 2021 fuel costs. The reopener also revised the depreciation schedule for Columbia Unit 2 and shared equipment to 2029 to align with the depreciation schedule for Unit 1. (c) In April 2023, MGE filed a proposed 2-year rate case and PSCW approval is pending. A final order is expected before the end of the year. (d) The proposed electric rate increase is driven by an increase in rate base including our investments made in West Riverside, local solar, and continued investment in grid modernization. Also driving the requested electric increase are higher costs for transmission, pension and OPEB, and uncollectible costs (including costs previously deferred from prior years). This increase in electric costs is offset by a decrease in fuel costs and benefit from lower tax expense (including impacts from the Inflation Reduction Act). The proposed gas rate increase is also attributable to our investment made in grid modernization and higher pension and OPEB and uncollectible costs (including costs previously deferred from prior years). The proposed gas increase is offset by a tax benefit related to excess deferred taxes. (e) The proposed electric and gas rate increases are driven by an increase in rate base for our continued investment in grid modernization projects and an increase in labor costs. |
Deferred Fuel Rules | The following table summarizes deferred electric fuel-related costs: Fuel Costs ( in millions ) Refund or Recovery Period 2021 deferred fuel costs $ 3.3 (a) January 2023 through December 2023 (b) 2022 deferred fuel costs $ 8.8 (c) 2023 deferred fuel savings ($ 1.2 ) (d) (a) There was no change to the recovery in the fuel rules proceedings from the amount MGE deferred . (b) In August 2022, the PSCW issued a final decision in the 2021 fuel rules proceedings for MGE to include the recovery of these costs as part of the 2023 electric limited reopener. (c) These costs will be subject to the PSCW's annual review of 2022 fuel costs, expected to be completed in 2023. MGE has proposed to recover these costs over a 12-month period from October 2023 through September 2024. (d) These costs will be subject to the PSCW's annual review of 2023 fuel costs, expected to be completed in 2024. |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gross Notional Volume of Open Derivatives | The gross notional volume of open derivatives is as follows: June 30, 2023 December 31, 2022 Commodity derivative contracts 391,760 MWh 353,600 MWh Commodity derivative contracts 6,960,000 Dth 8,070,000 Dth FTRs 4,018 MW 1,945 MW |
Fair Value of Derivative Instruments on the Balance Sheet | The following table summarizes the fair value of the derivative instruments on the consolidated balance sheets. All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, instruments are netted with the same counterparty under a master netting agreement as well as the netting of collateral. Derivative Derivative (In thousands) Assets Liabilities Balance Sheet Location June 30, 2023 Commodity derivative contracts (a) $ 1,016 $ 5,881 Other current liabilities Commodity derivative contracts (a) 28 581 Other deferred liabilities and other FTRs 401 — Other current assets December 31, 2022 Commodity derivative contracts (a) $ 2,164 $ 7,687 Other current liabilities Commodity derivative contracts (a) 802 476 Other deferred liabilities and other FTRs 103 — Other current assets (a) As of June 30, 2023, and December 31, 2022, collateral of $ 5.4 million and $ 5.2 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. |
Offsetting Assets | The following 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 (In thousands) Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets June 30, 2023 Commodity derivative contracts $ 1,044 $ ( 1,044 ) $ — $ — FTRs 401 — — 401 December 31, 2022 Commodity derivative contracts $ 2,966 $ ( 2,966 ) $ — $ — FTRs 103 — — 103 |
Offsetting Liabilities | Offsetting of Derivative Liabilities (In thousands) Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets June 30, 2023 Commodity derivative contracts $ 6,462 $ ( 1,044 ) $ ( 5,418 ) $ — December 31, 2022 Commodity derivative contracts $ 8,163 $ ( 2,966 ) $ ( 5,197 ) $ — |
Derivative Gains and Losses in Balance Sheet | The following tables summarize the unrealized and realized gains/losses related to the derivative instruments on the consolidated balance sheets and the consolidated statements of income. 2023 2022 (In thousands) Current and Long-Term Regulatory Asset (Liability) Other Current Assets Current and Long-Term Regulatory Asset (Liability) Other Current Assets Three Months Ended June 30: Balance as of April 1, $ 7,813 $ 455 $ ( 9,641 ) $ 267 Unrealized loss (gain) 92 — ( 5,988 ) — Realized (loss) gain reclassified to a deferred account ( 1,988 ) 1,988 1,551 ( 1,551 ) Realized (loss) gain reclassified to income statement ( 900 ) ( 1,369 ) 5,594 1,123 Balance as of June 30, $ 5,017 $ 1,074 $ ( 8,484 ) $ ( 161 ) Six Months Ended June 30: Balance as of January 1, $ 5,094 $ 2,747 $ ( 617 ) $ 770 Unrealized loss (gain) 14,395 — ( 17,321 ) — Realized (loss) gain reclassified to a deferred account ( 8,905 ) 8,905 2,830 ( 2,830 ) Realized (loss) gain reclassified to income statement ( 5,567 ) ( 10,578 ) 6,624 1,899 Balance as of June 30, $ 5,017 $ 1,074 $ ( 8,484 ) $ ( 161 ) |
Derivative Gains and Losses in Income Statement | Realized Losses (Gains) 2023 2022 (In thousands) Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Three Months Ended June 30: Commodity derivative contracts $ 2,942 $ — $ ( 5,333 ) $ 45 FTRs ( 673 ) — 597 — PPA — — ( 2,026 ) — Six Months Ended June 30: Commodity derivative contracts $ 10,387 $ 6,451 $ ( 5,645 ) $ ( 836 ) FTRs ( 693 ) — 600 — PPA — — ( 2,642 ) — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Market Value of Financial Instruments | The estimated fair market value of financial instruments are as follows: June 30, 2023 December 31, 2022 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt (a) $ 691,069 $ 623,604 $ 643,560 $ 571,374 (a) Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.3 million and $ 4.0 million as of June 30, 2023, and December 31, 2022 , respectively. |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis. Fair Value as of June 30, 2023 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 1,445 $ 881 $ — $ 564 Exchange-traded investments 1,816 1,816 — — Total Assets $ 3,261 $ 2,697 $ — $ 564 Liabilities: Derivatives, net (b) $ 6,462 $ 3,006 $ — $ 3,456 Deferred compensation 5,050 — 5,050 — Total Liabilities $ 11,512 $ 3,006 $ 5,050 $ 3,456 MGE Assets: Derivatives, net (b) $ 1,445 $ 881 $ — $ 564 Exchange-traded investments 108 108 — — Total Assets $ 1,553 $ 989 $ — $ 564 Liabilities: Derivatives, net (b) $ 6,462 $ 3,006 $ — $ 3,456 Deferred compensation 5,050 — 5,050 — Total Liabilities $ 11,512 $ 3,006 $ 5,050 $ 3,456 Fair Value as of December 31, 2022 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 3,069 $ 1,353 $ — $ 1,716 Exchange-traded investments 1,516 1,516 — — Total Assets $ 4,585 $ 2,869 $ — $ 1,716 Liabilities: Derivatives, net (b) $ 8,163 $ 5,581 $ — $ 2,582 Deferred compensation 4,743 — 4,743 — Total Liabilities $ 12,906 $ 5,581 $ 4,743 $ 2,582 MGE Assets: Derivatives, net (b) $ 3,069 $ 1,353 $ — $ 1,716 Exchange-traded investments 115 115 — — Total Assets $ 3,184 $ 1,468 $ — $ 1,716 Liabilities: Derivatives, net (b) $ 8,163 $ 5,581 $ — $ 2,582 Deferred compensation 4,743 — 4,743 — Total Liabilities $ 12,906 $ 5,581 $ 4,743 $ 2,582 (b) As of June 30, 2023, and December 31, 2022, collateral of $ 5.4 million and $ 5.2 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes the changes in Level 3 commodity derivative assets and liabilities measured at fair value on a recurring basis. Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Beginning balance $ ( 3,740 ) $ 6,779 $ ( 866 ) $ 178 Realized and unrealized gains (losses): Included in regulatory assets 848 — ( 2,026 ) — Included in regulatory liability — 2,180 — 8,780 Included in other comprehensive income — — — — Included in earnings ( 903 ) 6,143 ( 5,574 ) 6,998 Included in current assets — 45 — 118 Purchases — 4,777 — 11,803 Sales — — — — Issuances — — — — Settlements 903 ( 10,965 ) 5,574 ( 18,918 ) Balance as of June 30, $ ( 2,892 ) $ 8,959 $ ( 2,892 ) $ 8,959 Total gains (losses) included in earnings attributed to (c) $ — $ — $ — $ — |
Gains and Losses Included in Income for Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis (c) . Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2023 2022 2023 2022 Purchased power expense $ ( 903 ) $ 6,188 $ ( 5,574 ) $ 7,161 Cost of gas sold expense — ( 45 ) — ( 163 ) Total $ ( 903 ) $ 6,143 $ ( 5,574 ) $ 6,998 (c) MGE's exchange-traded derivative contracts, over-the-counter 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. |
Joint Plant (Tables)
Joint Plant (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Public Utilities, Property, Plant and Equipment [Abstract] | |
Schedule of Jointly Owned Utility Plants | MGE has purchased, completed, or ongoing jointly-owned generation construction projects, as shown in the following table. Incurred costs are reflected in "Property, plant, and equipment, net" or "Construction work in progress" on the consolidated balance sheets. Project Ownership Interest Source Share of Share of Estimated (a) Costs incurred as (a) Date of Red Barn (b) 10 % Wind 9.16 MW $ 18 million $ 16.4 million April 2023 Badger Hollow II (c) 33 % Solar 50 MW $ 86 million (j) $ 53.3 million (f) Late 2023 or (g) Paris (d) 10 % Solar/Battery 20 MW/ 11 MW $ 61 million (j) $ 25.8 million 2024 (g)(h) Darien (e) 10 % Solar/Battery 25 MW/ 7.5 MW $ 50 million (j) $ 11.4 million 2024 (g)(h) West Riverside 3.4 % Natural Gas 25 MW $ 25 million $ 24.7 million (i) (a) Excluding AFUDC. (b) The Red Barn Wind Farm is located in the Towns of Wingville and Clifton in Grant County, Wisconsin. (c) The Badger Hollow II solar farm is located in southwestern Wisconsin in Iowa County, near the villages of Montfort and Cobb. (d) Paris Solar-Battery Park is located in the Town of Paris in Kenosha County, Wisconsin. (e) Darien Solar Energy Center is located in Walworth and Rock Counties in southern Wisconsin. (f) Includes an allocation of common facilities at Badger Hollow placed in service in November 2021. (g) Estimated date of commercial operation. (h) Battery storage timing to be determined. (i) In March 2023, MGE purchased an ownership interest in West Riverside, a natural gas-fired facility located in Beloit, WI, from WPL, operator and co-owner of the plant. West Riverside was placed in-service in 2020. (j) Estimated costs are expected to exceed PSCW previously approved CA levels. Notifications are provided to the PSCW when costs increase above CA levels. MGE has and will continue to request recovery of the updates in its rate case proceedings. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenues disaggregated by revenue source were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, Electric revenues 2023 2022 2023 2022 Residential $ 40,324 $ 37,555 $ 81,544 $ 78,029 Commercial 63,428 57,960 122,965 112,409 Industrial 3,577 3,476 6,863 6,623 Other-retail/municipal 10,243 9,376 19,862 18,205 Total retail 117,572 108,367 231,234 215,266 Sales to the market 3,554 3,198 6,312 6,080 Other 366 385 1,190 693 Total electric revenues 121,492 111,950 238,736 222,039 Gas revenues Residential 16,688 23,648 72,412 80,331 Commercial/Industrial 8,207 15,172 49,710 55,423 Total retail 24,895 38,820 122,122 135,754 Gas transportation 1,235 1,340 3,767 3,216 Other 161 24 364 25 Total gas revenues 26,291 40,184 126,253 138,995 Non-regulated energy revenues 215 214 262 252 Total Operating Revenue $ 147,998 $ 152,348 $ 365,251 $ 361,286 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | MGE Energy operates in the following business segments: electric utility, gas utility, nonregulated energy, transmission investment, and all other. See the 2022 Annual Report on Form 10-K for additional discussion of each of these segments. (In thousands) Electric Gas Non-Regulated Energy Transmission Investment All Others Consolidation/ Consolidated Total Three Months Ended June 30, 2023 Operating revenues $ 121,492 $ 26,291 $ 215 $ — $ — $ — $ 147,998 Interdepartmental revenues 193 2,770 10,195 — — ( 13,158 ) — Total operating revenues 121,685 29,061 10,410 — — ( 13,158 ) 147,998 Equity in earnings of investments — — — 2,629 — — 2,629 Net income (loss) 21,556 581 5,470 1,914 ( 840 ) — 28,681 Three Months Ended June 30, 2022 Operating revenues $ 111,950 $ 40,184 $ 214 $ — $ — $ — $ 152,348 Interdepartmental revenues ( 66 ) 8,058 10,353 — — ( 18,345 ) — Total operating revenues 111,884 48,242 10,567 — — ( 18,345 ) 152,348 Equity in earnings of investments — — — 2,623 — — 2,623 Net income 13,012 1,093 5,522 1,908 226 — 21,761 Six Months Ended June 30, 2023 Operating revenues $ 238,736 $ 126,253 $ 262 $ — $ — $ — $ 365,251 Interdepartmental revenues 141 9,431 20,745 — — ( 30,317 ) — Total operating revenues 238,877 135,684 21,007 — — ( 30,317 ) 365,251 Equity in earnings of investments — — — 5,240 — — 5,240 Net income (loss) 34,870 11,340 11,040 3,813 ( 1,304 ) — 59,759 Six Months Ended June 30, 2022 Operating revenues $ 222,039 $ 138,995 $ 252 $ — $ — $ — $ 361,286 Interdepartmental revenues 52 14,179 20,668 — — ( 34,899 ) — Total operating revenues 222,091 153,174 20,920 — — ( 34,899 ) 361,286 Equity in earnings of investments — — — 5,127 — — 5,127 Net income 27,629 13,177 10,874 3,730 771 — 56,181 (In thousands) Electric Gas Non-Regulated Energy Consolidation/ Consolidated Total Three Months Ended June 30, 2023 Operating revenues $ 121,492 $ 26,291 $ 215 $ — $ 147,998 Interdepartmental revenues 193 2,770 10,195 ( 13,158 ) — Total operating revenues 121,685 29,061 10,410 ( 13,158 ) 147,998 Net income attributable to MGE 21,556 581 5,470 ( 5,375 ) 22,232 Three Months Ended June 30, 2022 Operating revenues $ 111,950 $ 40,184 $ 214 $ — $ 152,348 Interdepartmental revenues ( 66 ) 8,058 10,353 ( 18,345 ) — Total operating revenues 111,884 48,242 10,567 ( 18,345 ) 152,348 Net income attributable to MGE 13,012 1,093 5,522 ( 5,588 ) 14,039 Six Months Ended June 30, 2023 Operating revenues $ 238,736 $ 126,253 $ 262 $ — $ 365,251 Interdepartmental revenues 141 9,431 20,745 ( 30,317 ) — Total operating revenues 238,877 135,684 21,007 ( 30,317 ) 365,251 Net income attributable to MGE 34,870 11,340 11,040 ( 10,895 ) 46,355 Six Months Ended June 30, 2022 Operating revenues $ 222,039 $ 138,995 $ 252 $ — $ 361,286 Interdepartmental revenues 52 14,179 20,668 ( 34,899 ) — Total operating revenues 222,091 153,174 20,920 ( 34,899 ) 361,286 Net income attributable to MGE 27,629 13,177 10,874 ( 10,344 ) 41,336 |
Summary of Significant Accoun_3
Summary of Significant Accounting Principles (Details-1) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Cash Cash Equivalents And Restricted Cash [Line Items] | ||||
Cash and cash equivalents | $ 16,507 | $ 11,604 | ||
Restricted cash | 838 | 867 | ||
Receivable - margin account | 3,912 | 5,497 | ||
Cash, cash equivalents, and restricted cash | 21,257 | 17,968 | $ 24,480 | $ 18,835 |
MGE [Member] | ||||
Cash Cash Equivalents And Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 8,574 | 4,136 | ||
Restricted cash | 838 | 867 | ||
Receivable - margin account | 3,912 | 5,497 | ||
Cash, cash equivalents, and restricted cash | $ 13,324 | $ 10,500 | $ 17,256 | $ 7,798 |
Summary of Significant Accoun_4
Summary of Significant Accounting Principles (Details-2) - Columbia Units [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Jointly Owned Utility Plant Interests [Line Items] | |
Net book value of property, plant, and equipment | $ 139 |
Impairment of Long-Lived Assets | |
Impairment of long-lived assets | $ 0 |
Investment in ATC and ATC Hol_3
Investment in ATC and ATC Holdco (Details-1) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity earnings from investment | $ 5,240 | $ 5,127 | |||
Dividends from investments | 4,248 | 3,959 | |||
Capital contributions to investments | 3,376 | 3,330 | |||
MGE Transco [Member] | ATC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity earnings from investment | $ 2,599 | $ 2,592 | 5,182 | 5,070 | |
Dividends from investments | 2,042 | 1,958 | 4,248 | 3,959 | |
Capital contributions to investments | $ 1,601 | $ 540 | $ 1,958 | $ 1,783 | |
MGE Transco [Member] | ATC [Member] | Subsequent Event [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Capital contributions to investments | $ 1,100 |
Investment in ATC and ATC Hol_4
Investment in ATC and ATC Holdco (Details-2) - ATC [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Operating revenues | $ 203,776 | $ 191,605 | $ 404,202 | $ 382,604 |
Operating expenses | (101,517) | (95,256) | (200,593) | (190,747) |
Other income, net | 565 | 344 | 956 | 748 |
Interest expense, net | (33,504) | (29,059) | (66,414) | (57,499) |
Earnings before members' income taxes | $ 69,320 | $ 67,634 | $ 138,151 | $ 135,106 |
Investment in ATC and ATC Hol_5
Investment in ATC and ATC Holdco (Details-3) - ATC [Member] - Related Party [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Receivables [Abstract] | |||||
Other Receivables | $ 5.2 | $ 5.2 | $ 4.8 | ||
Operating Costs and Expenses [Abstract] | |||||
Operating Costs and Expenses, Total | $ 8.5 | $ 7.8 | $ 16.9 | $ 15.7 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||
Statutory federal income tax rate | 21% | 21% | 21% | 21% | |
State income taxes, net of federal benefit | 6.20% | 6.20% | 6.20% | 6.20% | |
Amortized investment tax credits | (0.70%) | (0.70%) | (0.70%) | (0.70%) | |
Credit for electricity from renewable energy | (5.20%) | (5.70%) | (5.60%) | (5.60%) | |
AFUDC equity, net | (0.40%) | (0.40%) | (0.40%) | (0.40%) | |
Amortization of utility excess deferred tax - tax reform | [1] | (1.60%) | (1.90%) | (1.70%) | (1.90%) |
Other, net, individually significant | 0.10% | 0% | (0.10%) | (0.10%) | |
Effective income tax rate | 19.40% | 18.50% | 18.70% | 18.50% | |
Excess Deferred Taxes, Tax Cuts And Jobs Act [Member] | |||||
Effects Of The Tax Cuts And Jobs Act [Abstract] | |||||
Excess deferred tax - Income statement effect | $ 0.9 | $ 0.9 | $ 1.8 | $ 1.9 | |
Deficient Deferred Taxes, Tax Cuts And Jobs Act [Member] | |||||
Effects Of The Tax Cuts And Jobs Act [Abstract] | |||||
Collection of unprotected deficient deferred taxes | $ 0.4 | $ 0.4 | $ 0.7 | $ 0.7 | |
MGE [Member] | |||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||
Statutory federal income tax rate | 21% | 21% | 21% | 21% | |
State income taxes, net of federal benefit | 6.20% | 6.20% | 6.20% | 6.20% | |
Amortized investment tax credits | (0.70%) | (0.70%) | (0.70%) | (0.80%) | |
Credit for electricity from renewable energy | (5.60%) | (6.20%) | (6.10%) | (6.10%) | |
AFUDC equity, net | (0.40%) | (0.40%) | (0.50%) | (0.50%) | |
Amortization of utility excess deferred tax - tax reform | [1] | (1.70%) | (2.60%) | (1.80%) | (2.00%) |
Other, net, individually significant | 0.10% | 0% | (0.10%) | (0.10%) | |
Effective income tax rate | 18.90% | 17.30% | 18% | 17.70% | |
[1] Included are impacts of the 2017 Tax Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For both the three months ended June 30, 2023 and 2022, MGE recognized $ 0.9 million. For the six months ended June 30, 2023 and 2022, MGE recognized $ 1.8 million and $ 1.9 million, respectively. Included in the 2022 and 2023 rate settlement was a net collection from customers of the gas portion of deficient deferred taxes related to the 2017 Tax Act not restricted by IRS normalization rules. For both the three months ended June 30, 2023 and 2022, MGE recognized $ 0.4 million. For both the six months ended June 30, 2023 and 2022, MGE recognized $ 0.7 million. |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Deferred Pension And Other Postretirement Benefit Plan Costs Recovered [Abstract] | ||||
Deferred (recognized) pension and OPEB costs | $ 400 | $ (300) | $ 800 | $ (600) |
Pension Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 694 | 1,195 | 1,446 | 2,532 |
Interest cost | 4,337 | 2,784 | 8,659 | 5,580 |
Expected return on assets | (6,302) | (7,844) | (12,624) | (15,695) |
Amortization of: | ||||
Prior service credit | 0 | (5) | 0 | (10) |
Actuarial (gain) loss | 492 | 484 | 880 | 1,208 |
Net periodic benefit (credit) cost | (779) | (3,386) | (1,639) | (6,385) |
Postretirement Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 190 | 314 | 390 | 647 |
Interest cost | 835 | 479 | 1,654 | 970 |
Expected return on assets | (646) | (839) | (1,297) | (1,682) |
Amortization of: | ||||
Transition obligation | 0 | 0 | 1 | 1 |
Prior service credit | 0 | (75) | 0 | (149) |
Actuarial (gain) loss | (65) | 24 | (95) | 72 |
Net periodic benefit (credit) cost | $ 314 | $ (97) | $ 653 | $ (141) |
Equity and Financing Arrangem_2
Equity and Financing Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 06, 2023 | |
Common Stock [Abstract] | |||||
Common stock issued during period under the stock plan | 0 | 0 | 0 | 0 | |
Dilutive Shares Calculation [Abstract] | |||||
Shares included in diluted earnings per share | 19,290 | ||||
3.75%, 2027 Series, Industrial Revenue Bonds | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 19.3 | ||||
Interest rate | 3.75% |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 01, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Compensation expense | $ 0.7 | $ 0.3 | $ 1.8 | $ 0.7 | |
2021 Long Term Incentive Plan [Member] | Performance Shares [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 11,320 | ||||
2021 Long Term Incentive Plan [Member] | Restricted Units [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 20,472 | ||||
2006 Performance Unit Plan, 2020 Performance Unit Plan, and 2013 Director Incentive Plan [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Cash payments distributed related to awards previously granted and now payable | $ 3.6 |
Commitments and Contingencies_2
Commitments and Contingencies (Details-1) $ in Millions | Jun. 30, 2023 USD ($) |
Columbia Units [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Approximate Costs For Environmental Regulation | $ 4 |
Elm Road Units [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Projected Costs For Environmental Regulation | $ 4 |
Commitments and Contingencies_3
Commitments and Contingencies (Details-2) $ in Thousands | Jun. 30, 2023 USD ($) | |
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2023 | $ 42,921 | |
Purchase obligation, 2024 | 64,416 | |
Purchase obligation, 2025 | 39,943 | |
Purchase obligation, 2026 | 17,741 | |
Purchase obligation, 2027 | 2,165 | |
Purchase obligation, Thereafter | 11,995 | |
Coal [Member] | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2023 | 20,814 | [1] |
Purchase obligation, 2024 | 23,039 | [1] |
Purchase obligation, 2025 | 14,426 | [1] |
Purchase obligation, 2026 | 2,868 | [1] |
Purchase obligation, 2027 | 0 | [1] |
Purchase obligation, Thereafter | 0 | [1] |
Natural Gas [Member] | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2023 | 22,107 | [2] |
Purchase obligation, 2024 | 41,377 | [2] |
Purchase obligation, 2025 | 25,517 | [2] |
Purchase obligation, 2026 | 14,873 | [2] |
Purchase obligation, 2027 | 2,165 | [2] |
Purchase obligation, Thereafter | $ 11,995 | [2] |
[1] Total coal commitments for MGE's share of 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. MGE's natural gas transportation and storage contracts require fixed monthly payments for firm supply pipeline transportation and storage capacity. The pricing components of the fixed monthly payments for the transportation and storage contracts are approved by FERC but may be subject to change. MGE's natural gas supply commitments include market-based pricing. |
Rate Matters (Details)
Rate Matters (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2023 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2022 | Dec. 31, 2021 | [3],[4] | ||||||
Fuel Rules [Abstract] | |||||||||||
Deferred fuel rules monitored costs | $ 1.2 | [1] | $ (8.8) | [2] | $ (3.3) | ||||||
Electric Rate Proceeding [Member] | PSCW [Member] | MGE [Member] | |||||||||||
Rate Proceedings [Abstract] | |||||||||||
Authorized rate increase (decrease), percentage | 9.01% | [5] | 8.81% | [6] | |||||||
Authorized return on equity, percentage | 9.80% | 9.80% | |||||||||
Approved equity capital structure, percentage | 55.60% | 55.60% | |||||||||
Fuel Rules [Abstract] | |||||||||||
Fuel rules, bandwidth | 2% | 1% | |||||||||
Electric Rate Proceeding [Member] | PSCW [Member] | Rate Matters For Future Periods [Member] | MGE [Member] | |||||||||||
Rate Proceedings [Abstract] | |||||||||||
Proposed rate increase (decrease), percentage | [7] | 3.41% | [8] | 3.75% | [9] | ||||||
Proposed return on equity, percentage | 9.80% | 9.80% | |||||||||
Proposed equity capital structure, percentage | 56.10% | 56.10% | |||||||||
Gas Rate Proceeding [Member] | PSCW [Member] | MGE [Member] | |||||||||||
Rate Proceedings [Abstract] | |||||||||||
Authorized rate increase (decrease), percentage | [6] | 0.96% | 2.15% | ||||||||
Authorized return on equity, percentage | 9.80% | 9.80% | |||||||||
Approved equity capital structure, percentage | 55.60% | 55.60% | |||||||||
Gas Rate Proceeding [Member] | PSCW [Member] | Rate Matters For Future Periods [Member] | MGE [Member] | |||||||||||
Rate Proceedings [Abstract] | |||||||||||
Proposed rate increase (decrease), percentage | [7] | 1.66% | [8] | 2.56% | [9] | ||||||
Proposed return on equity, percentage | 9.80% | 9.80% | |||||||||
Proposed equity capital structure, percentage | 56.10% | 56.10% | |||||||||
[1] These costs will be subject to the PSCW's annual review of 2023 fuel costs, expected to be completed in 2024. These costs will be subject to the PSCW's annual review of 2022 fuel costs, expected to be completed in 2023. MGE has proposed to recover these costs over a 12-month period from October 2023 through September 2024. In August 2022, the PSCW issued a final decision in the 2021 fuel rules proceedings for MGE to include the recovery of these costs as part of the 2023 electric limited reopener. There was no change to the recovery in the fuel rules proceedings from the amount MGE deferred . The electric rate increase was driven by additions to generation assets including our investments in Badger Hollow II (solar), Paris (solar and battery), Red Barn (wind), and West Riverside (natural gas). In addition, the reopener request included an increase in fuel costs and the recovery of deferred 2021 fuel costs. The reopener also revised the depreciation schedule for Columbia Unit 2 and shared equipment to 2029 to align with the depreciation schedule for Unit 1. The electric and gas rate increases were driven by an increase in rate base including our investments in Badger Hollow I and a new customer information system. Also driving the requested electric increase were higher fuel and purchased power costs as well as the completion in 2021 of the one-time return of the electric excess deferred tax credit related to the 2017 Tax Act not restricted by IRS normalization rules. Included in the electric residential rate is a reduction in the customer charge. In April 2023, MGE filed a proposed 2-year rate case and PSCW approval is pending. A final order is expected before the end of the year. The proposed electric and gas rate increases are driven by an increase in rate base for our continued investment in grid modernization projects and an increase in labor costs. The proposed electric rate increase is driven by an increase in rate base including our investments made in West Riverside, local solar, and continued investment in grid modernization. Also driving the requested electric increase are higher costs for transmission, pension and OPEB, and uncollectible costs (including costs previously deferred from prior years). This increase in electric costs is offset by a decrease in fuel costs and benefit from lower tax expense (including impacts from the Inflation Reduction Act). The proposed gas rate increase is also attributable to our investment made in grid modernization and higher pension and OPEB and uncollectible costs (including costs previously deferred from prior years). The proposed gas increase is offset by a tax benefit related to excess deferred taxes. |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments (Details-1) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 USD ($) Dth1 MWh MW | Dec. 31, 2022 USD ($) Dth1 MWh MW | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Other Current Assets [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative, Fair Value, Net | $ 1,074 | $ 2,747 | $ 455 | $ (161) | $ 267 | $ 770 | |
Commodity Contracts And Financial Transimission Rights [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative, Fair Value, Net | $ (5,000) | $ (5,100) | |||||
Commodity Contract [Member] | |||||||
Gross Notional Volume of Open Derivatives [Abstract] | |||||||
Notional amount, energy measures (in MWh) | MWh | 391,760 | 353,600 | |||||
Notional amount, decatherm measure (in Dth) | Dth1 | 6,960,000 | 8,070,000 | |||||
Derivative fair values [Abstract] | |||||||
Derivative Asset, Fair Value, Gross Asset | $ 1,044 | $ 2,966 | |||||
Derivative Liability, Fair Value, Gross Liability | 6,462 | 8,163 | |||||
Collateral posted against derivative positions | 0 | 0 | |||||
Commodity Contract [Member] | Other Current Liabilities [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative Asset, Fair Value, Gross Asset | [1] | 1,016 | 2,164 | ||||
Derivative Liability, Fair Value, Gross Liability | [1] | 5,881 | 7,687 | ||||
Commodity Contract [Member] | Other Deferred Liabilities and Other [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative Asset, Fair Value, Gross Asset | [1] | 28 | 802 | ||||
Derivative Liability, Fair Value, Gross Liability | [1] | 581 | 476 | ||||
Commodity Contract [Member] | Cash Flow Hedging [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative, right to reclaim collateral (receivable) | $ 5,400 | $ 5,200 | |||||
Energy Related Commodity Contract [Member] | Cash Flow Hedging [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Maximum term of derivative hedging contract | 4 years | ||||||
Financial Transmission Rights [Member] | |||||||
Gross Notional Volume of Open Derivatives [Abstract] | |||||||
Notional amount, power measure (in MW) | MW | 4,018 | 1,945 | |||||
Derivative fair values [Abstract] | |||||||
Derivative Asset, Fair Value, Gross Asset | $ 401 | $ 103 | |||||
Collateral posted against derivative positions | 0 | 0 | |||||
Financial Transmission Rights [Member] | Other Current Assets [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative Asset, Fair Value, Gross Asset | 401 | 103 | |||||
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 | |||||
[1] As of June 30, 2023, and December 31, 2022, collateral of $ 5.4 million and $ 5.2 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments (Details-2) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Commodity Contract [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,044 | $ 2,966 |
Gross amounts offset in balance sheet | (1,044) | (2,966) |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | 0 | 0 |
Financial Transmission Rights [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 401 | 103 |
Gross amounts offset in balance sheet | 0 | 0 |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | $ 401 | $ 103 |
Derivative and Hedging Instru_5
Derivative and Hedging Instruments (Details-3) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Offsetting Liabilities [Line Items] | ||
Collateral posted against derivative positions | $ (5,400) | $ (5,200) |
Commodity Contract [Member] | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 6,462 | 8,163 |
Gross amounts offset in balance sheet | (1,044) | (2,966) |
Collateral posted against derivative positions | (5,418) | (5,197) |
Net amount presented in balance sheet | $ 0 | $ 0 |
Derivative and Hedging Instru_6
Derivative and Hedging Instruments (Details-4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Current and Long-Term Regulatory Asset (Liability) [Member] | ||||
Change In Derivative Fair Value [Roll Forward] | ||||
Beginning balance, | $ 7,813 | $ (9,641) | $ 5,094 | $ (617) |
Unrealized loss (gain) | 92 | (5,988) | 14,395 | (17,321) |
Realized (loss) gain reclassified to a deferred account | (1,988) | 1,551 | (8,905) | 2,830 |
Realized (loss) gain reclassified to income statement | (900) | 5,594 | (5,567) | 6,624 |
Ending balance, | 5,017 | (8,484) | 5,017 | (8,484) |
Other Current Assets [Member] | ||||
Change In Derivative Fair Value [Roll Forward] | ||||
Beginning balance, | 455 | 267 | 2,747 | 770 |
Unrealized loss (gain) | 0 | 0 | 0 | 0 |
Realized (loss) gain reclassified to a deferred account | 1,988 | (1,551) | 8,905 | (2,830) |
Realized (loss) gain reclassified to income statement | (1,369) | 1,123 | (10,578) | 1,899 |
Ending balance, | $ 1,074 | $ (161) | $ 1,074 | $ (161) |
Derivative and Hedging Instru_7
Derivative and Hedging Instruments (Details-5) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) Counterparty | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Counterparty | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Counterparties in net liability position or default [Abstract] | |||||
Derivative, net liability position of counterparties | $ 0 | $ 0 | $ 0 | ||
Number of counterparties in default | Counterparty | 0 | 0 | |||
Commodity Contract [Member] | Fuel For Electric Generation Purchased Power [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Realized losses (gains) on income statement | $ 2,942 | $ (5,333) | $ 10,387 | $ (5,645) | |
Commodity Contract [Member] | Cost Of Gas Sold Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Realized losses (gains) on income statement | 0 | 45 | 6,451 | (836) | |
Financial Transmission Rights [Member] | Fuel For Electric Generation Purchased Power [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Realized losses (gains) on income statement | (673) | 597 | (693) | 600 | |
Financial Transmission Rights [Member] | Cost Of Gas Sold Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Realized losses (gains) on income statement | 0 | 0 | 0 | 0 | |
Purchased Power Agreement [Member] | Fuel For Electric Generation Purchased Power [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Realized losses (gains) on income statement | 0 | (2,026) | 0 | (2,642) | |
Purchased Power Agreement [Member] | Cost Of Gas Sold Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Realized losses (gains) on income statement | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details-1) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Liabilities: | |||
Unamortized discount and debt issuance costs, net | $ 4,300 | $ 4,000 | |
Carrying Amount [Member] | |||
Liabilities: | |||
Long-term debt | [1] | 691,069 | 643,560 |
Fair Value [Member] | |||
Liabilities: | |||
Long-term debt | [1] | $ 623,604 | $ 571,374 |
[1] Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.3 million and $ 4.0 million as of June 30, 2023, and December 31, 2022 , respectively. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details-2) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Liabilities: | |||
Derivative, right to reclaim collateral | $ 5,400 | $ 5,200 | |
Recurring [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 1,445 | 3,069 |
Exchange-traded investments | 1,816 | 1,516 | |
Total Assets | 3,261 | 4,585 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 6,462 | 8,163 |
Deferred compensation | 5,050 | 4,743 | |
Total liabilities | 11,512 | 12,906 | |
Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 881 | 1,353 |
Exchange-traded investments | 1,816 | 1,516 | |
Total Assets | 2,697 | 2,869 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 3,006 | 5,581 |
Deferred compensation | 0 | 0 | |
Total liabilities | 3,006 | 5,581 | |
Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 0 | 0 |
Exchange-traded investments | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 0 | 0 |
Deferred compensation | 5,050 | 4,743 | |
Total liabilities | 5,050 | 4,743 | |
Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 564 | 1,716 |
Exchange-traded investments | 0 | 0 | |
Total Assets | 564 | 1,716 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 3,456 | 2,582 |
Deferred compensation | 0 | 0 | |
Total liabilities | 3,456 | 2,582 | |
MGE [Member] | Recurring [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 1,445 | 3,069 |
Exchange-traded investments | 108 | 115 | |
Total Assets | 1,553 | 3,184 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 6,462 | 8,163 |
Deferred compensation | 5,050 | 4,743 | |
Total liabilities | 11,512 | 12,906 | |
MGE [Member] | Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 881 | 1,353 |
Exchange-traded investments | 108 | 115 | |
Total Assets | 989 | 1,468 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 3,006 | 5,581 |
Deferred compensation | 0 | 0 | |
Total liabilities | 3,006 | 5,581 | |
MGE [Member] | Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 0 | 0 |
Exchange-traded investments | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 0 | 0 |
Deferred compensation | 5,050 | 4,743 | |
Total liabilities | 5,050 | 4,743 | |
MGE [Member] | Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative assets, net | [1] | 564 | 1,716 |
Exchange-traded investments | 0 | 0 | |
Total Assets | 564 | 1,716 | |
Liabilities: | |||
Derivative liabilities, net | [1] | 3,456 | 2,582 |
Deferred compensation | 0 | 0 | |
Total liabilities | $ 3,456 | $ 2,582 | |
[1] As of June 30, 2023, and December 31, 2022, collateral of $ 5.4 million and $ 5.2 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted. |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Details-3) - US Treasury Bills [Member] | 6 Months Ended |
Jun. 30, 2023 | |
Deferred compensation plan [Abstract] | |
Investment interest calculation, investment maturity period (26 weeks) | 182 days |
Investment interest calculation, monthly compounding rate | 1% |
Investment interest calculation, minimum annual rate compounded monthly | 7% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Details-4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance, | $ (3,740) | $ 6,779 | $ (866) | $ 178 | |
Realized and unrealized gains (losses): | |||||
Included in regulatory assets | 848 | 0 | (2,026) | 0 | |
Included in regulatory liability | 0 | 2,180 | 0 | 8,780 | |
Included in other comprehensive income | 0 | 0 | 0 | 0 | |
Included in earnings | [1] | (903) | 6,143 | (5,574) | 6,998 |
Included in current assets | 0 | 45 | 0 | 118 | |
Purchases | 0 | 4,777 | 0 | 11,803 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 903 | (10,965) | 5,574 | (18,918) | |
Ending balance, | $ (2,892) | $ 8,959 | $ (2,892) | $ 8,959 | |
[1] MGE's exchange-traded derivative contracts, over-the-counter 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. |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Details-5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Fair Value Disclosures [Abstract] | |||||
Total gains (losses) included in earnings attributed to the change in unrealized gains (losses) related to assets and liabilities | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Included in earnings | [1] | (903) | 6,143 | (5,574) | 6,998 |
Purchased Power Expense [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Included in earnings | (903) | 6,188 | (5,574) | 7,161 | |
Cost Of Gas Sold Expense [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Included in earnings | $ 0 | $ (45) | $ 0 | $ (163) | |
[1] MGE's exchange-traded derivative contracts, over-the-counter 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. |
Joint Plant Ownership (Details)
Joint Plant Ownership (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) MW | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) MW | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | ||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Property, plant, and equipment, net | $ 1,903,143 | $ 1,903,143 | $ 1,865,352 | |||
MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Property, plant, and equipment, net | 1,903,171 | 1,903,171 | $ 1,865,380 | |||
Red Barn Units [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Projected renewable project costs | [1],[2] | 18,000 | 18,000 | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | [1],[2] | $ 16,400 | $ 16,400 | |||
Red Barn Units [Member] | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, ownership interest | [2] | 10% | 10% | |||
Red Barn Units [Member] | Wind | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | [2] | 9.16 | 9.16 | |||
Badger Hollow II Units [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Projected renewable project costs | [1],[3],[4] | $ 86,000 | $ 86,000 | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | [1],[4],[5] | $ 53,300 | $ 53,300 | |||
Badger Hollow II Units [Member] | Public Service Commission of Wisconsin [Member] | ||||||
Allowance for Funds Used During Construction | ||||||
Authorized AFUDC rate - Signficiant projects (100%) | 100% | |||||
Badger Hollow II Units [Member] | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, ownership interest | [4] | 33% | 33% | |||
Badger Hollow II Units [Member] | Solar | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | [4] | 50 | 50 | |||
Paris Units [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Projected renewable project costs | [1],[3],[6] | $ 61,000 | $ 61,000 | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | [1],[6] | $ 25,800 | $ 25,800 | |||
Paris Units [Member] | Public Service Commission of Wisconsin [Member] | ||||||
Allowance for Funds Used During Construction | ||||||
Authorized AFUDC rate - Signficiant projects (100%) | 100% | |||||
Paris Units [Member] | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, ownership interest | [6] | 10% | 10% | |||
Paris Units [Member] | Solar | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | [6] | 20 | 20 | |||
Paris Units [Member] | Battery storage | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | [6] | 11 | 11 | |||
Darien Units [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Projected renewable project costs | [1],[3],[7] | $ 50,000 | $ 50,000 | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | [1],[7] | $ 11,400 | $ 11,400 | |||
Darien Units [Member] | Public Service Commission of Wisconsin [Member] | ||||||
Allowance for Funds Used During Construction | ||||||
Authorized AFUDC rate - Signficiant projects (100%) | 100% | |||||
Darien Units [Member] | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, ownership interest | [7] | 10% | 10% | |||
Darien Units [Member] | Solar | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | [7] | 25 | 25 | |||
Darien Units [Member] | Battery storage | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | [7] | 7.5 | 7.5 | |||
West Riverside Energy Center [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Projected renewable project costs | [1] | $ 25,000 | $ 25,000 | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | [1] | $ 24,700 | $ 24,700 | |||
West Riverside Energy Center [Member] | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, ownership interest | 3.40% | 3.40% | ||||
West Riverside Energy Center [Member] | Natural gas | MGE [Member] | ||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||
Jointly owned utility plant, plant capacity (in MW) | MW | 25 | 25 | ||||
Badger Hollow II, Paris, and Darien Units [Member] | ||||||
Allowance for Funds Used During Construction | ||||||
AFUDC | $ 1,500 | $ 600 | $ 2,900 | $ 1,000 | ||
[1] Excluding AFUDC. The Red Barn Wind Farm is located in the Towns of Wingville and Clifton in Grant County, Wisconsin. Estimated costs are expected to exceed PSCW previously approved CA levels. Notifications are provided to the PSCW when costs increase above CA levels. MGE has and will continue to request recovery of the updates in its rate case proceedings. The Badger Hollow II solar farm is located in southwestern Wisconsin in Iowa County, near the villages of Montfort and Cobb. Includes an allocation of common facilities at Badger Hollow placed in service in November 2021. Paris Solar-Battery Park is located in the Town of Paris in Kenosha County, Wisconsin. Darien Solar Energy Center is located in Walworth and Rock Counties in southern Wisconsin. |
Revenue (Details-1)
Revenue (Details-1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Total Operating Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | $ 147,998 | $ 152,348 | $ 365,251 | $ 361,286 |
Electric [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 121,492 | 111,950 | 238,736 | 222,039 |
Electric [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 40,324 | 37,555 | 81,544 | 78,029 |
Electric [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 63,428 | 57,960 | 122,965 | 112,409 |
Electric [Member] | Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 3,577 | 3,476 | 6,863 | 6,623 |
Electric [Member] | Other-retail/municipal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 10,243 | 9,376 | 19,862 | 18,205 |
Electric [Member] | Total Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 117,572 | 108,367 | 231,234 | 215,266 |
Electric [Member] | Sales To The Market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 3,554 | 3,198 | 6,312 | 6,080 |
Electric [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 366 | 385 | 1,190 | 693 |
Gas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 26,291 | 40,184 | 126,253 | 138,995 |
Gas [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 16,688 | 23,648 | 72,412 | 80,331 |
Gas [Member] | Commercial/Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 8,207 | 15,172 | 49,710 | 55,423 |
Gas [Member] | Total Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 24,895 | 38,820 | 122,122 | 135,754 |
Gas [Member] | Gas Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 1,235 | 1,340 | 3,767 | 3,216 |
Gas [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 161 | 24 | 364 | 25 |
Non Regulated Energy [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | $ 215 | $ 214 | $ 262 | $ 252 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 147,998 | $ 152,348 | $ 365,251 | $ 361,286 |
Equity in earnings of investment | 5,240 | 5,127 | ||
Net income (loss) | 28,681 | 21,761 | 59,759 | 56,181 |
Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 121,492 | 111,950 | 238,736 | 222,039 |
Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 26,291 | 40,184 | 126,253 | 138,995 |
Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 215 | 214 | 262 | 252 |
Transmission Investment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
All Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 147,998 | 152,348 | 365,251 | 361,286 |
Equity in earnings of investment | 2,629 | 2,623 | 5,240 | 5,127 |
Net income (loss) | 28,681 | 21,761 | 59,759 | 56,181 |
Operating Segments [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 121,685 | 111,884 | 238,877 | 222,091 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net income (loss) | 21,556 | 13,012 | 34,870 | 27,629 |
Operating Segments [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 29,061 | 48,242 | 135,684 | 153,174 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net income (loss) | 581 | 1,093 | 11,340 | 13,177 |
Operating Segments [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 10,410 | 10,567 | 21,007 | 20,920 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net income (loss) | 5,470 | 5,522 | 11,040 | 10,874 |
Operating Segments [Member] | Transmission Investment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Equity in earnings of investment | 2,629 | 2,623 | 5,240 | 5,127 |
Net income (loss) | 1,914 | 1,908 | 3,813 | 3,730 |
Operating Segments [Member] | All Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net income (loss) | (840) | 226 | (1,304) | 771 |
Consolidation Elimination Entries [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (13,158) | (18,345) | (30,317) | (34,899) |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 | 0 |
Consolidation Elimination Entries [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 193 | (66) | 141 | 52 |
Consolidation Elimination Entries [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,770 | 8,058 | 9,431 | 14,179 |
Consolidation Elimination Entries [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 10,195 | 10,353 | 20,745 | 20,668 |
Consolidation Elimination Entries [Member] | Transmission Investment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Consolidation Elimination Entries [Member] | All Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
MGE [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 147,998 | 152,348 | 365,251 | 361,286 |
Net income (loss) | 22,232 | 14,039 | 46,355 | 41,336 |
MGE [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 121,492 | 111,950 | 238,736 | 222,039 |
MGE [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 26,291 | 40,184 | 126,253 | 138,995 |
MGE [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 215 | 214 | 262 | 252 |
MGE [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 147,998 | 152,348 | 365,251 | 361,286 |
Net income (loss) | 22,232 | 14,039 | 46,355 | 41,336 |
MGE [Member] | Operating Segments [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 121,685 | 111,884 | 238,877 | 222,091 |
Net income (loss) | 21,556 | 13,012 | 34,870 | 27,629 |
MGE [Member] | Operating Segments [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 29,061 | 48,242 | 135,684 | 153,174 |
Net income (loss) | 581 | 1,093 | 11,340 | 13,177 |
MGE [Member] | Operating Segments [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 10,410 | 10,567 | 21,007 | 20,920 |
Net income (loss) | 5,470 | 5,522 | 11,040 | 10,874 |
MGE [Member] | Consolidation Elimination Entries [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (13,158) | (18,345) | (30,317) | (34,899) |
Net income (loss) | (5,375) | (5,588) | (10,895) | (10,344) |
MGE [Member] | Consolidation Elimination Entries [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 193 | (66) | 141 | 52 |
MGE [Member] | Consolidation Elimination Entries [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,770 | 8,058 | 9,431 | 14,179 |
MGE [Member] | Consolidation Elimination Entries [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 10,195 | $ 10,353 | $ 20,745 | $ 20,668 |