Cover Table of Contents 2007 Highlights To Our Shareholders To Our Shareholders (2) To Our Shareholders (3) To Our Shareholders (4) New Energy Solutions at Work New Energy Solutions at Work (2) Putting Our Economy to Work Putting Our Economy to Work (2) Environmental Commitments that Work Environmental Commitments that Work (2) Community Connections at Work Community Connections at Work (2) Income Statements Cash Flow Statements Balance Sheets Capitalization Statements Five—Year Total Return Directors Officers Shareholder Information Corporate Profile Back Cover

Solar lighting. MGE and the University of Wisconsin-Madison worked closely with the community to plan the West Campus Cogeneration Facility. This natural gas-fired plant provides electricity to MGE customers and heating/cooling to the campus. MGE and UW-Madison joined with others and made commitments to improve our local environment. Now, we are completing our final commitment with solar lighting along a new campus bike path. This $220,000 photovoltaic technology project draws attention to renewable energy while providing safe lighting at night. The bike path opens in 2008.

Bob Stoffs (left), an MGE community services manager, and Rob Kennedy, a UW- Madison transportation supervisor, check a solar panel during bike path construction.

Community ties. We continuously create opportunities for stakeholders to engage with us. MGE asked community members to serve on an advisory committee to help shape our Environmental Cooperative Agreement with the Wisconsin Department of Natural Resources. We recently renewed the voluntary five-year agreement that commits us to superior environmental performance at Blount Generating Station.

Several Community Environmental Advisory Group members meet at MGE including (left to right) John Shenot, DNR environmental assistance coordinator; Rich Bogovich, a local environmentalist; Michael Ricciardi, MGE’s environmental director; and Judy Olson, former Madison alderperson.

Power of working together. When we partner with others, we can reach customers more effectively. For example, we are working with the City of Madison on the city’s Clean Energy Challenge to reduce greenhouse gases. Some of our most rewarding collaborations involve teaching the next generation. MGE reaches thousands of students through classroom programs. Last summer, we took another step with the Boys and Girls Club and sponsored a series of energy education projects.

Jesse Shields (right), an MGE marketing representative, helps Anthony Washington cook a hot dog in a solar oven. Children at the Boys and Girls Club of Dane County constructed solar ovens to learn more about clean, renewable energy sources.

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