MGE Energy has raised dividends each year since 1976. Dividends increased from $0.55 to $1.43 per share during that time. MGE Energy is one of only six electric utilities to raise dividends annually for 30 or more consecutive years.
This record of dividend increases puts MGE Energy on Mergent's list of Dividend Achievers. Only 10% of dividend-paying common stocks are classified Dividend Achievers because they demonstrate the consistent ability to increase dividend payments over a substantial period of time.
MGE Energy also is a national leader in solid financial management. Madison Gas and Electric Co. (MGE), our main subsidiary, maintained the highest bond rating (AA-) of all investor-owned, combination utilities in the nation from Standard & Poor's in 2008.
Likewise, Moody's Investors Service gave MGE the highest mark among utilities (Aa2) for its sound business strategy and supportive regulatory environment. MGE Energy's financial performance earned one of Value Line's top ratings for financial strength and its highest ranking for a safe investment.
MGE Energy stock weathered Wall Street's extreme market volatility far better than the major stock indexes. Your company finished 2008 as the best-performing utility stock in Wisconsin and one of the top-performing stocks in the state.
Solid earnings, growing assets
MGE Energy produced earnings of $2.38 per share in 2008. Earnings benefited from colder winter weather and gains on local economic development investments.
MGE Energy's assets reached nearly $1.3 billion in 2008. This is a 1,000 fold increase over the last 100 years.
One of our recent investments is in We Energies' Oak Creek Power Plant expansion. MGE Energy's 8.33% ownership interest is approximately $172 million (excluding capitalized interest). The first of two 615-megawatt (MW) advanced technology, cleaner coal units will be ready to serve customers in early 2010. The second unit is planned for later that year. We also expanded our assets in renewable energy by bringing a new $59 million wind farm online in 2008.
