MGE Sells $40 Million of Notes

MGE Sells $40 Million of Notes

Madison, Wis., Sept. 15, 2008—Madison Gas and Electric (MGE) has completed the sale of $40 million of unsecured senior notes through a private placement. The notes are due in 2018 and bear an annual interest rate of 5.59 percent.

The net proceeds from the notes will be used to repay $30 million of 6.02 percent medium-term notes maturing on Sept. 15, 2008, and to repay short-term debt.

MGE offered and sold the notes pursuant to the exemption from securities registration provided by Section 4(2) of the Securities Act of 1933. MGE has not and does not intend to register the notes under the Securities Act.

J.P. Morgan Securities Inc. acted as placement agent for the notes.

MGE generates and distributes electricity to 136,000 customers in Dane County, Wis., and purchases and distributes natural gas to 140,000 customers in seven south-central and western Wisconsin counties. MGE's parent company is MGE Energy (Nasdaq: MGEE). MGE's roots in the Madison area date back more than 150 years.