For the years ended December 31
(in thousands)
2008 2007 2006
Operating Activities      
  Net income $    52,768 $    48,825 $    42,423
  Items not affecting cash:      
    Depreciation and amortization 39,273 32,199 31,342
    Deferred income taxes 8,583 750 5,241
    Amortization of investment tax credits (351) (410) (432)
    AFUDC - equity funds (858) (1,927) (554)
    Equity in earnings in ATC* (7,241) (6,047) (5,317)
    Employee benefit plan expenses 7,891 8,101 10,178
    Provision for doubtful accounts receivable 4,273 3,080 3,230
    Amortization of debt issuance costs and discount 545 543 595
    Reserve for fuel refund 5,506 2,312
    Gain on sale of investments (3,113) (778)
    Gain on sale of property (295)
    Other items 1,663 1,950 653
       
   Changes in working capital items:      
      (Increase) decrease in current assets (39,202) (12,312) 13,042
      Increase (decrease) in current liabilities 1,616 3,818 (4,299)
Proceeds from Congestion Cost and Line Loss Allocation Agreement 2,545
Dividend income from ATC*    5,272 4,441 4,003
Cash contributions to pension and other postretirement plans    (7,665) (6,346) (5,779)
Other noncurrent items, net    (6,047) (1,846) 4,401
    Cash Provided by Operating Activities 74,712 76,586 101,039
       
Investing Activities      
  Capital expenditures (105,777) (136,258) (92,575)
  Capital contributions to ATC* and other investments (3,678) (255) (1,974)
  Proceeds from sale of investments 3,612 910
  Proceeds from sale of property 304 724
  Advance to Wisconsin Electric Power Company
  for ATC* work related to Elm Road
(330) (138) (808)
  Other 1,587 226 916
    Cash Used for Investing Activities (104,282) (134,791) (94,441)
       
Financing Activities      
  Issuance of common stock, net 30,997 32,786 17,050
  Issuance (purchase) of treasury stock 119
  Cash dividends paid on common stock (31,780) (30,295) (28,513)
  Repayment of long-term debt (30,000) (15,000)
  Issuance of long-term debt 40,000 25,000 30,000
  Increase(decrease) in short-term debt 21,000 46,500 (25,500)
  Other (330) (82)
    Cash Provided by/(Used for) Financing Activities 29,887 58,991 (6,926)
       
  Change in Cash and Cash Equivalents 317 786 (328)
    Cash and cash equivalents at beginning of period 3,789 3,003 3,331
    Cash and cash equivalents at end of period $       4,106 $       3,789 $       3,003

* American Transmission Company

For detailed financial information, see the 2008 MGE Energy Form 10-K.