Financial performance
Innovation turns creativity into success. Innovation drives business growth, increases the bottom line and produces results for our shareholders.MGE Energy reached a milestone when its assets topped $1 billion in 2007. In the last five years, assets have grown from $726 million to $1.1 billion.
This steady growth in assets helped produce record earnings of $2.27 per share in 2007. Sales growth in electric deliveries to the residential and commercial sectors also contributed to these earnings. Your company has produced record earnings for four of the last five years.
In 2007, your Board of Directors raised the regular quarterly dividend to $0.355 per share on the company’s common stock. The amount of the dividend increase was double 2006’s change and the largest increase in 15 years. Cash dividends paid in 2007 totaled $1.41 per share. MGE Energy is one of only 95 U.S. companies and one of six electric utilities to raise dividends annually for 30 or more consecutive years.
Independent rating agencies have taken note of our performance. 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. Likewise, Moody’s Investor Service gives MGE the high mark of 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.
Energy future
Technology is shaping the future of our industry. We are investing in new projects that provide reliable energy and environmental stewardship.I am proud that we recently commissioned a new 30-megawatt, MGE Energy wind farm. In the last year, our wind energy capacity increased from 11 to 87 megawatts with the new project and two other wind farms from which we purchase energy.