For the years ended December 31
(Thousands)
2007 2006 2005
Operating Activities      
  Net income $    48,825 $    42,423 $    32,091
  Items not affecting cash:      
    Depreciation and amortization 32,199 31,342 29,275
    Deferred income taxes 750 5,241 10,900
    Amortization of investment tax credits (410) (432) (460)
    AFUDC - equity funds (1,927) (554) (414)
    Equity in earnings in ATC* (6,047) (5,317) (4,871)
    Employee benefit plan expenses 8,101 10,178 9,665
    Provisions for doubtful accounts receivable 3,080 3,230 2,080
    Amortization of debt issuance costs and discount 543 595 493
    Reserve for fuel refund 2,312
    Gain on sale of investments (778)
    Other items 1,950 653 1,109
       
   Changes in working capital items:      
      (Increase) decrease in current assets (12,312) 13,042 (32,323)
      Increase (decrease) in current liabilities 3,818 (4,299) 8,515
Proceeds from Congestion Cost and Line Loss
Allocation Agreement
2,545
Dividend income from ATC*    4,441 4,003 3,550
Cash contributions to pension and other postretirement plans    (6,346) (5,779) (5,536)
Other noncurrent items, net           (1,846)        4,401        (697)
    Cash Provided by Operating Activities       76,586      101,039      53,377
       
Investing Activities      
  Capital expenditures (136,258) (92,575) (85,771)
  Capital contributions to ATC* and other investments (255) (1,974) (1,686)
  Repayment from ATC* related to WCCF ** 12,964
  Proceeds from sale of property to ATC* 724
  Advance to Wisconsin Electric Power Company
  for ATC* work related to Elm Road
(138) (808) (1,599)
  Other        1,136        916        359
    Cash Used for Investing Activities      (134,791)      (94,441)      (75,733)
       
Financing Activities      
  Issuance of common stock, net 32,786 17,050 2,259
  Issuance (purchase) of treasury stock 119 (119)
  Cash dividends paid on common stock (30,295) (28,513) (28,054)
  Repayment of long-term debt (15,000)
  Issuance of long-term debt 25,000 30,000 20,000
  Increase(decrease) in short-term debt 46,500 (25,500) 29,225
  Other        —          (82)          (1,128)
    Cash Provided by/(Used for) Financing Activities       58,991     (6,926)     22,183
       
  Change in Cash and Cash Equivalents 786 (328) (173)
    Cash and cash equivalents at beginning of period            3,003          3,331        3,504
    Cash and cash equivalents at end of period   $     3,789   $       3,003   $       3,331

* American Transmission Company
** West Campus CogenerationFacility

For detailed financial information, see the 2007 MGE Energy Form 10-K.