0000061339--12-310001161728falseQ30001161728mgee:OtherretailandmunicipalMembermgee:ElectricMember2021-07-012021-09-3000011617282020-06-300001161728us-gaap:OperatingSegmentsMember2020-01-012020-09-300001161728us-gaap:RetainedEarningsMembermgee:MgeMember2019-12-310001161728us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2021-09-300001161728mgee:GasMembermgee:MgeMember2020-07-012020-09-300001161728us-gaap:OperatingSegmentsMembermgee:ElectricMembermgee:MgeMember2020-01-012020-09-300001161728mgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2020-12-310001161728mgee:GasMembermgee:ResidentialMember2020-07-012020-09-300001161728mgee:MgeMemberus-gaap:NoncontrollingInterestMember2021-01-012021-09-300001161728us-gaap:CommonStockMembermgee:MgeMember2019-12-310001161728mgee:PurchasedPowerAgreementMember2021-01-012021-09-300001161728us-gaap:FairValueInputsLevel1Memberus-gaap:ExchangeTradedMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001161728mgee:PurchasedPowerAgreementMembermgee:FuelForElectricGenerationPurchasedPowerMember2021-01-012021-09-300001161728mgee:ElectricMembermgee:OtherrevenuesMember2021-07-012021-09-300001161728us-gaap:OtherCurrentAssetsMember2021-07-012021-09-300001161728us-gaap:FairValueInputsLevel1Membermgee:MgeMemberus-gaap:ExchangeTradedMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-3100011617282021-01-012021-09-300001161728us-gaap:RetainedEarningsMembermgee:MgeMember2020-12-310001161728mgee:MgeMemberus-gaap:IntersegmentEliminationMember2020-07-012020-09-300001161728mgee:GasMembermgee:MgeMember2021-07-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:ElectricMember2020-07-012020-09-300001161728mgee:RegulatoryAssetMember2020-09-300001161728mgee:CostOfGasSoldExpenseMember2020-07-012020-09-300001161728us-gaap:AdditionalPaidInCapitalMembermgee:MgeMember2020-12-310001161728us-gaap:IntersegmentEliminationMember2021-01-012021-09-300001161728mgee:CompletedRenewableProjectsMember2021-01-012021-09-300001161728mgee:PurchasedPowerExpenseMember2020-07-012020-09-300001161728mgee:CostOfGasSoldExpenseMemberus-gaap:CommodityContractMember2020-07-012020-09-300001161728us-gaap:AccumulatedOtherComprehensiveIncomeMembermgee:MgeMember2019-12-3100011617282021-10-310001161728mgee:MgeMember2021-01-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:MgeMember2021-01-012021-09-300001161728mgee:CostOfGasSoldExpenseMemberus-gaap:CommodityContractMember2020-01-012020-09-300001161728us-gaap:OperatingSegmentsMembermgee:TransmissionInvestmentMember2021-01-012021-09-300001161728us-gaap:AdditionalPaidInCapitalMember2021-09-300001161728us-gaap:FairValueInputsLevel3Membermgee:MgeMemberus-gaap:ExchangeTradedMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728mgee:NonRegulatedEnergyMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2020-07-012020-09-300001161728us-gaap:RetainedEarningsMembermgee:MgeMember2020-07-012020-09-300001161728mgee:MgeMember2021-10-310001161728us-gaap:AccumulatedOtherComprehensiveIncomeMembermgee:MgeMember2020-09-300001161728us-gaap:OperatingSegmentsMembermgee:NonRegulatedEnergyMember2020-01-012020-09-300001161728mgee:FuelForElectricGenerationPurchasedPowerMemberus-gaap:CommodityContractMember2020-07-012020-09-300001161728mgee:CostOfGasSoldExpenseMember2021-07-012021-09-300001161728us-gaap:CommodityContractMemberus-gaap:OtherCurrentAssetsMember2020-12-310001161728srt:WeightedAverageMember2020-01-012020-12-310001161728us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001161728mgee:GasMembermgee:TotalretailMember2021-07-012021-09-300001161728us-gaap:CommodityContractMember2020-12-310001161728mgee:NonRegulatedEnergyMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2020-01-012020-09-300001161728mgee:MgeMemberus-gaap:ExchangeTradedMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728us-gaap:CarryingReportedAmountFairValueDisclosureMembermgee:MgeMember2020-12-310001161728us-gaap:RetainedEarningsMember2020-01-012020-09-300001161728us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2021-01-012021-09-300001161728mgee:TotalretailMembermgee:ElectricMember2021-07-012021-09-300001161728mgee:GasMembermgee:OtherrevenuesMember2021-07-012021-09-300001161728mgee:TransmissionInvestmentMember2020-01-012020-09-3000011617282021-06-300001161728us-gaap:CommonStockMember2020-12-310001161728us-gaap:CommodityContractMember2021-09-300001161728mgee:ElectricMember2020-01-012020-09-300001161728mgee:CostOfGasSoldExpenseMemberus-gaap:CommodityContractMember2021-01-012021-09-300001161728mgee:PurchasedPowerExpenseMember2021-01-012021-09-300001161728mgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001161728mgee:GasMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:TransmissionInvestmentMember2020-07-012020-09-300001161728mgee:ElectricMembermgee:OtherretailandmunicipalMember2020-01-012020-09-300001161728us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001161728mgee:ExcessDeferredTaxesTaxCutsAndJobsActMember2021-07-012021-09-300001161728us-gaap:CommodityContractMember2021-01-012021-09-300001161728mgee:ElectricMembermgee:MgeMember2021-01-012021-09-300001161728mgee:ElectricMembermgee:OtherretailandmunicipalMember2020-07-012020-09-300001161728us-gaap:OperatingSegmentsMembermgee:NonRegulatedEnergyMembermgee:MgeMember2020-01-012020-09-300001161728mgee:RegulatoryAssetMember2019-12-310001161728mgee:BadgerHollowIIUnitsMember2021-09-300001161728mgee:NonRegulatedEnergyMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300001161728mgee:ExcessDeferredTaxesTaxCutsAndJobsActMember2021-01-012021-09-300001161728mgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728mgee:ElectricMembermgee:OtherrevenuesMember2020-01-012020-09-300001161728mgee:MgeMemberus-gaap:NoncontrollingInterestMember2020-09-300001161728mgee:BadgerHollowIIUnitsMembermgee:MgeMember2021-09-300001161728us-gaap:OtherNoncurrentAssetsMemberus-gaap:CommodityContractMember2020-12-310001161728us-gaap:AccumulatedOtherComprehensiveIncomeMembermgee:MgeMember2021-09-300001161728mgee:PurchasedPowerAgreementMember2021-09-300001161728mgee:GasMembermgee:TotalretailMember2020-01-012020-09-300001161728mgee:CommodityContractsAndFinancialTransimissionRightsMember2020-12-310001161728mgee:ElectricMemberus-gaap:IntersegmentEliminationMember2020-01-012020-09-300001161728us-gaap:AdditionalPaidInCapitalMember2020-12-310001161728mgee:PublicServiceCommissionOfWisconsinMembermgee:MgeMember2021-01-012021-09-300001161728us-gaap:FairValueInputsLevel3Membermgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-3100011617282020-01-012020-12-310001161728us-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728mgee:SalestothemarketMembermgee:ElectricMember2021-07-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:ElectricMember2021-01-012021-09-300001161728mgee:MgeMember2020-06-300001161728mgee:MgeMemberus-gaap:NoncontrollingInterestMember2020-01-012020-09-300001161728us-gaap:CorporateAndOtherMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300001161728mgee:ElmRoadUnitsMember2021-09-300001161728mgee:OtherretailandmunicipalMembermgee:ElectricMember2021-01-012021-09-300001161728us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001161728mgee:FuelForElectricGenerationPurchasedPowerMemberus-gaap:CommodityContractMember2021-01-012021-09-300001161728mgee:ATCequitymethodinvesteememberMembermgee:MgeTranscoMember2020-07-012020-09-300001161728mgee:NonRegulatedEnergyMember2020-07-012020-09-300001161728mgee:ElectricMembermgee:MgeMember2020-07-012020-09-300001161728us-gaap:OperatingSegmentsMembermgee:NonRegulatedEnergyMembermgee:MgeMember2021-07-012021-09-300001161728mgee:TransmissionInvestmentMember2021-01-012021-09-300001161728mgee:ATCequitymethodinvesteememberMember2020-01-012020-09-300001161728mgee:ElectricMember2020-07-012020-09-300001161728us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001161728us-gaap:OperatingSegmentsMembermgee:TransmissionInvestmentMember2021-07-012021-09-300001161728us-gaap:FairValueInputsLevel2Membermgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001161728mgee:GasMembermgee:ResidentialMember2021-07-012021-09-300001161728us-gaap:FairValueInputsLevel3Membermgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728mgee:ATCequitymethodinvesteememberMember2021-09-300001161728mgee:NonRegulatedEnergyMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300001161728us-gaap:CorporateAndOtherMember2021-07-012021-09-300001161728us-gaap:FairValueInputsLevel2Membermgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2020-12-310001161728mgee:CommercialandindustrialMembermgee:GasMember2020-07-012020-09-300001161728us-gaap:CorporateAndOtherMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300001161728mgee:GasMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2020-07-012020-09-300001161728us-gaap:CommonStockMember2020-06-300001161728us-gaap:RetainedEarningsMembermgee:MgeMember2021-01-012021-09-300001161728mgee:FuelForElectricGenerationPurchasedPowerMemberus-gaap:CommodityContractMember2021-07-012021-09-300001161728us-gaap:PensionPlansDefinedBenefitMember2021-07-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:NonRegulatedEnergyMember2020-07-012020-09-300001161728mgee:BadgerHollowIUnitsMembermgee:MgeMember2021-09-300001161728mgee:PurchasedPowerAgreementMembermgee:DerivativeLiabilitiesCurrentMember2021-09-300001161728us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2021-09-300001161728mgee:ElectricMembermgee:ResidentialMember2020-01-012020-09-300001161728srt:MinimumMember2020-01-012020-12-310001161728mgee:TransmissionInvestmentMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300001161728mgee:GasMembermgee:OtherrevenuesMember2021-01-012021-09-300001161728mgee:ElectricMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2020-07-012020-09-300001161728us-gaap:OperatingSegmentsMembermgee:NonRegulatedEnergyMember2021-01-012021-09-300001161728mgee:CostOfGasSoldExpenseMembermgee:FinancialTransmissionRightsMember2021-01-012021-09-300001161728srt:MaximumMember2020-01-012020-12-310001161728mgee:TwoPointFortyEightSeniorNotesDue2031Membermgee:OtherLongTermDebtMember2021-08-270001161728us-gaap:PerformanceSharesMembermgee:Longtermincentiveplan2021Member2021-02-192021-02-190001161728us-gaap:CommodityContractMemberus-gaap:OtherCurrentAssetsMember2021-09-300001161728mgee:TransmissionInvestmentMember2020-07-012020-09-300001161728us-gaap:AdditionalPaidInCapitalMembermgee:MgeMember2021-09-300001161728mgee:ElectricMembermgee:OtherrevenuesMember2021-01-012021-09-300001161728us-gaap:ExchangeTradedMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728mgee:ColumbiaUnitsMember2021-01-012021-09-300001161728mgee:CommodityContractsAndFinancialTransimissionRightsMember2021-09-300001161728mgee:CommercialMembermgee:ElectricMember2021-01-012021-09-300001161728mgee:RegulatoryAssetMember2021-01-012021-09-300001161728mgee:PurchasedPowerAgreementMembermgee:FuelForElectricGenerationPurchasedPowerMember2021-07-012021-09-300001161728mgee:ElectricMembermgee:IndustrialMember2020-01-012020-09-300001161728mgee:GasMembermgee:TotalretailMember2020-07-012020-09-300001161728us-gaap:OperatingSegmentsMember2020-07-012020-09-300001161728us-gaap:OperatingSegmentsMembermgee:TransmissionInvestmentMember2020-01-012020-09-3000011617282021-09-300001161728mgee:GasMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:GasMember2021-07-012021-09-300001161728mgee:BadgerHollowIandIIMember2020-07-012020-09-300001161728us-gaap:OtherCurrentAssetsMember2020-09-300001161728mgee:ElectricMembermgee:ResidentialMember2021-01-012021-09-300001161728mgee:RegulatoryAssetMember2020-07-012020-09-300001161728mgee:NonRegulatedEnergyMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300001161728us-gaap:CommonStockMember2021-09-300001161728mgee:ElectricMemberus-gaap:IntersegmentEliminationMember2020-07-012020-09-300001161728mgee:GasMembermgee:ResidentialMember2020-01-012020-09-300001161728us-gaap:RetainedEarningsMember2020-07-012020-09-300001161728mgee:MgeMember2020-01-012020-09-300001161728us-gaap:OtherCurrentAssetsMember2021-01-012021-09-300001161728mgee:ATCequitymethodinvesteememberMembermgee:MgeTranscoMember2021-01-012021-09-300001161728mgee:GasMembermgee:GastransportationMember2020-07-012020-09-300001161728mgee:MgeMemberus-gaap:NoncontrollingInterestMember2019-12-310001161728mgee:FuelForElectricGenerationPurchasedPowerMembermgee:FinancialTransmissionRightsMember2020-07-012020-09-300001161728us-gaap:OtherCurrentAssetsMember2020-07-012020-09-300001161728mgee:GasMemberus-gaap:IntersegmentEliminationMember2020-07-012020-09-300001161728srt:MinimumMember2021-01-012021-09-300001161728us-gaap:AdditionalPaidInCapitalMembermgee:MgeMember2020-01-012020-09-300001161728mgee:ElectricMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300001161728mgee:NonRegulatedEnergyMember2021-01-012021-09-300001161728mgee:PurchasedPowerAgreementMembermgee:CostOfGasSoldExpenseMember2021-01-012021-09-300001161728mgee:MgeMemberus-gaap:IntersegmentEliminationMember2020-01-012020-09-300001161728mgee:NatualGasSupplyMember2021-09-300001161728us-gaap:CommonStockMember2020-01-012020-09-300001161728us-gaap:CommodityContractMember2020-01-012020-12-310001161728mgee:PurchasedPowerAgreementMembermgee:DerivativeLiabilitiesCurrentMember2020-12-310001161728mgee:ElectricMember2021-07-012021-09-300001161728us-gaap:PublicUtilitiesInventoryCoalMember2021-09-300001161728mgee:ElectricMembermgee:IndustrialMember2021-01-012021-09-300001161728us-gaap:RetainedEarningsMember2021-07-012021-09-300001161728mgee:FuelForElectricGenerationPurchasedPowerMembermgee:FinancialTransmissionRightsMember2020-01-012020-09-300001161728mgee:GasMember2020-01-012020-09-300001161728us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001161728mgee:ElectricMembermgee:IndustrialMember2020-07-012020-09-300001161728mgee:OtherLongTermDebtMembermgee:TwoPointSixtyThreeSeniorNotesDue2033Member2021-01-012021-09-300001161728us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001161728us-gaap:FairValueInputsLevel2Membermgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728mgee:GasMember2020-07-012020-09-300001161728mgee:FinancialTransmissionRightsMember2020-01-012020-12-310001161728mgee:BadgerHollowIIUnitsMembermgee:PublicServiceCommissionOfWisconsinMember2021-01-012021-09-300001161728srt:MaximumMember2021-01-012021-09-300001161728mgee:GasRateProceedingMembermgee:PublicServiceCommissionOfWisconsinMembermgee:MgeMember2019-01-012019-12-310001161728mgee:CostOfGasSoldExpenseMemberus-gaap:CommodityContractMember2021-07-012021-09-300001161728mgee:TransmissionInvestmentMemberus-gaap:IntersegmentEliminationMember2020-07-012020-09-300001161728us-gaap:AdditionalPaidInCapitalMember2019-12-310001161728mgee:MgeMemberus-gaap:NoncontrollingInterestMember2020-07-012020-09-300001161728mgee:MgeMemberus-gaap:NoncontrollingInterestMember2021-07-012021-09-300001161728us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-07-012020-09-300001161728us-gaap:OperatingSegmentsMembermgee:NonRegulatedEnergyMember2021-07-012021-09-300001161728mgee:ElectricMembermgee:ResidentialMember2021-07-012021-09-300001161728us-gaap:AdditionalPaidInCapitalMembermgee:MgeMember2019-12-310001161728mgee:MgeMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-3000011617282020-12-310001161728us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001161728mgee:MgeMemberus-gaap:NoncontrollingInterestMember2021-09-300001161728mgee:CostOfGasSoldExpenseMembermgee:FinancialTransmissionRightsMember2020-01-012020-09-300001161728mgee:ATCequitymethodinvesteememberMember2020-07-012020-09-300001161728mgee:TotaloperatingrevenueMember2020-07-012020-09-300001161728mgee:GasMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2020-01-012020-09-300001161728mgee:ElectricRateProceedingMembermgee:PublicServiceCommissionOfWisconsinMembermgee:MgeMember2021-01-012021-09-3000011617282020-07-012020-09-300001161728us-gaap:FairValueMeasurementsRecurringMember2020-12-310001161728us-gaap:OtherCurrentAssetsMember2021-09-300001161728us-gaap:FairValueInputsLevel1Membermgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728mgee:MgeMember2021-06-300001161728us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-09-300001161728mgee:PublicServiceCommissionOfWisconsinMembermgee:MgeMember2019-01-012019-12-310001161728mgee:ElectricRateProceedingMembermgee:PublicServiceCommissionOfWisconsinMembermgee:MgeMember2019-01-012019-12-310001161728mgee:SalestothemarketMembermgee:ElectricMember2021-01-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:ElectricMembermgee:MgeMember2021-07-012021-09-300001161728mgee:NonRegulatedEnergyMember2020-01-012020-09-300001161728mgee:PurchasedPowerAgreementMembermgee:CostOfGasSoldExpenseMember2020-01-012020-09-300001161728us-gaap:AdditionalPaidInCapitalMember2020-06-300001161728us-gaap:CommonStockMembermgee:MgeMember2020-09-300001161728us-gaap:AdditionalPaidInCapitalMembermgee:MgeMember2021-06-300001161728us-gaap:AdditionalPaidInCapitalMember2021-06-300001161728mgee:CostOfGasSoldExpenseMembermgee:FinancialTransmissionRightsMember2020-07-012020-09-300001161728mgee:FuelForElectricGenerationPurchasedPowerMembermgee:FinancialTransmissionRightsMember2021-07-012021-09-300001161728us-gaap:IntersegmentEliminationMember2020-01-012020-09-300001161728mgee:RegulatoryAssetMember2021-09-300001161728us-gaap:OperatingSegmentsMembermgee:GasMember2021-01-012021-09-300001161728mgee:RegulatoryAssetMember2021-06-300001161728mgee:GasMembermgee:ResidentialMember2021-01-012021-09-300001161728us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-07-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:NonRegulatedEnergyMembermgee:MgeMember2020-07-012020-09-300001161728mgee:TotalretailMembermgee:ElectricMember2020-07-012020-09-300001161728mgee:TotalretailMembermgee:ElectricMember2021-01-012021-09-300001161728us-gaap:RetainedEarningsMembermgee:MgeMember2020-09-300001161728mgee:FuelForElectricGenerationPurchasedPowerMemberus-gaap:CommodityContractMember2020-01-012020-09-300001161728mgee:CommercialMembermgee:ElectricMember2021-07-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:MgeMember2020-01-012020-09-300001161728us-gaap:OperatingSegmentsMembermgee:ElectricMembermgee:MgeMember2020-07-012020-09-300001161728us-gaap:CommonStockMember2019-12-310001161728mgee:MgeMember2021-09-300001161728us-gaap:CorporateAndOtherMember2020-01-012020-09-300001161728us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001161728mgee:BadgerHollowIandIIMember2021-01-012021-09-300001161728mgee:FinancialTransmissionRightsMember2021-01-012021-09-300001161728mgee:GasRateProceedingMemberus-gaap:SubsequentEventMembersrt:ScenarioForecastMember2022-01-012022-12-3100011617282020-01-012020-09-300001161728us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728mgee:MgeMember2021-07-012021-09-300001161728mgee:ATCequitymethodinvesteememberMembermgee:MgeTranscoMember2020-01-012020-09-300001161728us-gaap:OtherCurrentAssetsMember2021-06-300001161728mgee:MgeMember2020-07-012020-09-3000011617282021-07-012021-09-300001161728mgee:ElectricMembermgee:OtherrevenuesMember2020-07-012020-09-300001161728us-gaap:RetainedEarningsMember2019-12-310001161728us-gaap:FairValueInputsLevel1Membermgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001161728us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-09-300001161728mgee:ElectricMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:GasMember2020-07-012020-09-300001161728us-gaap:IntersegmentEliminationMember2020-07-012020-09-300001161728us-gaap:FairValueInputsLevel2Membermgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2021-09-300001161728mgee:TotaloperatingrevenueMember2021-07-012021-09-300001161728us-gaap:AdditionalPaidInCapitalMembermgee:MgeMember2020-09-300001161728us-gaap:RetainedEarningsMembermgee:MgeMember2021-07-012021-09-300001161728mgee:FinancialTransmissionRightsMember2021-09-300001161728us-gaap:PensionPlansDefinedBenefitMember2020-07-012020-09-300001161728mgee:MgeMemberus-gaap:NoncontrollingInterestMember2021-06-300001161728mgee:NonRegulatedEnergyMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300001161728us-gaap:RetainedEarningsMembermgee:MgeMember2020-01-012020-09-300001161728us-gaap:OtherNoncurrentAssetsMemberus-gaap:CommodityContractMember2021-09-300001161728us-gaap:OtherCurrentLiabilitiesMembermgee:FinancialTransmissionRightsMember2020-12-310001161728mgee:GasMembermgee:GastransportationMember2021-07-012021-09-300001161728mgee:GasMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:GasMembermgee:MgeMember2021-01-012021-09-300001161728mgee:PerformanceunitplananddirectorincentiveplanMember2021-01-012021-01-310001161728mgee:ElectricMembermgee:IndustrialMember2021-07-012021-09-300001161728mgee:SalestothemarketMembermgee:ElectricMember2020-07-012020-09-300001161728mgee:ColumbiaEnergyCenterMember2021-01-012021-09-300001161728us-gaap:OperatingSegmentsMember2021-07-012021-09-3000011617282020-09-300001161728mgee:SalestothemarketMembermgee:ElectricMember2020-01-012020-09-300001161728us-gaap:USTreasuryBillSecuritiesMember2021-01-012021-09-300001161728us-gaap:AccumulatedOtherComprehensiveIncomeMembermgee:MgeMember2020-12-310001161728mgee:PurchasedPowerExpenseMember2020-01-012020-09-300001161728mgee:NonRegulatedEnergyMemberus-gaap:IntersegmentEliminationMember2020-01-012020-09-300001161728mgee:GasMemberus-gaap:IntersegmentEliminationMember2020-01-012020-09-300001161728us-gaap:FairValueInputsLevel2Memberus-gaap:ExchangeTradedMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728mgee:CommercialandindustrialMembermgee:GasMember2021-01-012021-09-300001161728us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2021-07-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:NonRegulatedEnergyMembermgee:MgeMember2021-01-012021-09-300001161728mgee:ElectricMembermgee:MgeMember2020-01-012020-09-300001161728us-gaap:CommonStockMembermgee:MgeMember2021-06-300001161728mgee:GasMembermgee:GastransportationMember2020-01-012020-09-300001161728us-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMember2021-09-300001161728mgee:PurchasedPowerAgreementMembermgee:DerivativeLiabilitiesNoncurrentMember2021-09-300001161728mgee:ATCequitymethodinvesteememberMember2020-12-310001161728us-gaap:CommonStockMembermgee:MgeMember2020-12-310001161728mgee:ColumbiaUnitsMember2021-09-300001161728mgee:EnergyRelatedCommodityContractMemberus-gaap:CashFlowHedgingMember2021-01-012021-09-300001161728mgee:ATCequitymethodinvesteememberMember2021-01-012021-09-300001161728us-gaap:CorporateAndOtherMemberus-gaap:IntersegmentEliminationMember2020-07-012020-09-300001161728mgee:BadgerHollowIandIIMember2021-07-012021-09-300001161728mgee:MgeMember2020-12-310001161728us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2020-07-012020-09-300001161728mgee:NonRegulatedEnergyMembermgee:MgeMember2020-01-012020-09-300001161728mgee:PurchasedPowerAgreementMembermgee:CostOfGasSoldExpenseMember2021-07-012021-09-300001161728us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300001161728mgee:ATCequitymethodinvesteememberMembermgee:MgeTranscoMember2021-07-012021-09-300001161728us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001161728mgee:ElectricRateProceedingMemberus-gaap:SubsequentEventMembersrt:ScenarioForecastMember2022-01-012022-12-310001161728mgee:MgeMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300001161728mgee:FinancialTransmissionRightsMember2020-12-310001161728us-gaap:OtherCurrentAssetsMember2020-06-300001161728mgee:GasMembermgee:OtherrevenuesMember2020-01-012020-09-300001161728mgee:GasRateProceedingMembermgee:PublicServiceCommissionOfWisconsinMembermgee:MgeMember2021-01-012021-09-300001161728mgee:CommercialMembermgee:ElectricMember2020-07-012020-09-300001161728us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2020-12-310001161728mgee:ElectricMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2020-01-012020-09-300001161728us-gaap:OperatingSegmentsMembermgee:ElectricMembermgee:MgeMember2021-01-012021-09-300001161728us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:GasMembermgee:MgeMember2021-07-012021-09-300001161728mgee:GasMembermgee:MgeMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300001161728mgee:CostOfGasSoldExpenseMember2020-01-012020-09-300001161728us-gaap:CorporateAndOtherMemberus-gaap:IntersegmentEliminationMember2020-01-012020-09-300001161728mgee:ExcessDeferredTaxesTaxCutsAndJobsActMember2020-07-012020-09-300001161728mgee:NonRegulatedEnergyMembermgee:MgeMember2020-07-012020-09-300001161728mgee:MgeMember2019-12-310001161728us-gaap:FairValueInputsLevel3Membermgee:MgeMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2020-12-310001161728us-gaap:CarryingReportedAmountFairValueDisclosureMembermgee:MgeMember2021-09-300001161728mgee:GasMembermgee:OtherrevenuesMember2020-07-012020-09-300001161728mgee:RegulatoryAssetMember2021-07-012021-09-300001161728mgee:ElectricMembermgee:ResidentialMember2020-07-012020-09-300001161728us-gaap:CommonStockMembermgee:MgeMember2020-06-300001161728us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ExchangeTradedMember2020-12-310001161728us-gaap:RetainedEarningsMembermgee:MgeMember2021-06-300001161728mgee:TransmissionInvestmentMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300001161728us-gaap:OtherCurrentAssetsMember2020-01-012020-09-300001161728us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:GasMember2020-01-012020-09-300001161728mgee:OtherLongTermPurchaseCommitmentsMember2021-09-300001161728mgee:PurchasedPowerAgreementMembermgee:CostOfGasSoldExpenseMember2020-07-012020-09-300001161728us-gaap:CorporateAndOtherMember2020-07-012020-09-300001161728us-gaap:FairValueInputsLevel1Membermgee:MgeMemberus-gaap:ExchangeTradedMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728us-gaap:RetainedEarningsMember2020-12-310001161728mgee:CostOfGasSoldExpenseMember2021-01-012021-09-300001161728us-gaap:OtherCurrentAssetsMember2019-12-310001161728mgee:MgeMember2020-09-300001161728mgee:MgeMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001161728us-gaap:OtherCurrentAssetsMembermgee:FinancialTransmissionRightsMember2021-09-300001161728mgee:ExcessDeferredTaxesTaxCutsAndJobsActMember2020-01-012020-09-300001161728us-gaap:RetainedEarningsMember2021-01-012021-09-300001161728mgee:NonRegulatedEnergyMemberus-gaap:IntersegmentEliminationMember2020-07-012020-09-300001161728mgee:ElectricMembermgee:MgeMember2021-07-012021-09-300001161728mgee:ElectricRateProceedingMembermgee:PublicServiceCommissionOfWisconsinMembermgee:MgeMembersrt:ScenarioForecastMember2021-01-012021-12-310001161728mgee:ElectricMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300001161728mgee:PurchasedPowerAgreementMember2020-01-012020-12-3100011617282019-12-310001161728us-gaap:CommonStockMembermgee:MgeMember2021-09-300001161728mgee:MgeMemberus-gaap:NoncontrollingInterestMember2020-06-300001161728mgee:BadgerHollowIUnitsMembermgee:PublicServiceCommissionOfWisconsinMember2021-01-012021-09-300001161728mgee:TotalretailMembermgee:ElectricMember2020-01-012020-09-300001161728mgee:ElectricMember2021-01-012021-09-300001161728us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2020-01-012020-09-300001161728us-gaap:RetainedEarningsMembermgee:MgeMember2021-09-300001161728mgee:CostOfGasSoldExpenseMembermgee:FinancialTransmissionRightsMember2021-07-012021-09-300001161728mgee:GasMembermgee:TotalretailMember2021-01-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:MgeMember2021-07-012021-09-300001161728mgee:GasMember2021-07-012021-09-300001161728mgee:PurchasedPowerAgreementMembermgee:FuelForElectricGenerationPurchasedPowerMember2020-01-012020-09-300001161728us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001161728mgee:CommercialandindustrialMembermgee:GasMember2020-01-012020-09-300001161728mgee:TransmissionInvestmentMemberus-gaap:IntersegmentEliminationMember2020-01-012020-09-300001161728us-gaap:SubsequentEventMembersrt:ScenarioForecastMember2022-01-012022-12-310001161728mgee:FuelRulesRefund2020Membermgee:PublicServiceCommissionOfWisconsinMemberus-gaap:SubsequentEventMembermgee:MgeMember2021-10-012021-10-310001161728us-gaap:OperatingSegmentsMembermgee:ElectricMember2020-01-012020-09-300001161728mgee:BadgerHollowIandIIMember2020-01-012020-09-300001161728mgee:BadgerHollowIUnitsMember2021-09-300001161728us-gaap:OperatingSegmentsMembermgee:MgeMember2020-07-012020-09-300001161728mgee:GasMembermgee:MgeMember2020-01-012020-09-300001161728us-gaap:OperatingSegmentsMembermgee:GasMembermgee:MgeMember2020-07-012020-09-300001161728us-gaap:AccumulatedOtherComprehensiveIncomeMembermgee:MgeMember2021-06-300001161728mgee:PublicServiceCommissionOfWisconsinMembermgee:MgeMember2020-01-012020-12-310001161728us-gaap:RetainedEarningsMember2021-09-300001161728us-gaap:AccumulatedOtherComprehensiveIncomeMembermgee:MgeMember2020-06-300001161728mgee:PurchasedPowerAgreementMember2020-12-310001161728mgee:CommercialMembermgee:ElectricMember2020-01-012020-09-300001161728us-gaap:CommonStockMember2020-09-300001161728us-gaap:PensionPlansDefinedBenefitMember2020-01-012020-09-300001161728mgee:CommercialandindustrialMembermgee:GasMember2021-07-012021-09-300001161728mgee:GasMembermgee:MgeMember2021-01-012021-09-300001161728us-gaap:FairValueInputsLevel2Memberus-gaap:ExchangeTradedMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001161728mgee:GasMember2021-01-012021-09-300001161728us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001161728us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001161728us-gaap:RestrictedStockUnitsRSUMembermgee:Longtermincentiveplan2021Member2021-02-192021-02-190001161728mgee:ATCequitymethodinvesteememberMember2021-07-012021-09-300001161728mgee:NaturalGasTransportationAndStorageMember2021-09-300001161728mgee:PurchasedPowerAgreementMembermgee:FuelForElectricGenerationPurchasedPowerMember2020-07-012020-09-300001161728us-gaap:RetainedEarningsMembermgee:MgeMember2020-06-300001161728mgee:GasMembermgee:GastransportationMember2021-01-012021-09-300001161728mgee:OtherLongTermDebtMembermgee:TwoPointSixtyThreeSeniorNotesDue2033Member2021-06-150001161728mgee:MgeMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300001161728mgee:NonRegulatedEnergyMember2021-07-012021-09-300001161728mgee:TwoPointFortyEightSeniorNotesDue2031Membermgee:OtherLongTermDebtMember2021-01-012021-09-300001161728mgee:MgeMemberus-gaap:NoncontrollingInterestMember2020-12-310001161728mgee:NonRegulatedEnergyMembermgee:MgeMember2021-01-012021-09-300001161728mgee:TotaloperatingrevenueMember2021-01-012021-09-300001161728us-gaap:AdditionalPaidInCapitalMember2020-09-300001161728mgee:RegulatoryAssetMember2020-01-012020-09-300001161728us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001161728us-gaap:RetainedEarningsMember2020-06-300001161728mgee:GasRateProceedingMemberus-gaap:SubsequentEventMembersrt:ScenarioForecastMember2023-01-012023-12-310001161728us-gaap:AdditionalPaidInCapitalMembermgee:MgeMember2020-06-300001161728mgee:ElectricMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300001161728us-gaap:OperatingSegmentsMembermgee:GasMembermgee:MgeMember2020-01-012020-09-300001161728mgee:GasRateProceedingMembermgee:PublicServiceCommissionOfWisconsinMembermgee:MgeMember2020-01-012020-12-310001161728mgee:NonRegulatedEnergyMembermgee:MgeMember2021-07-012021-09-300001161728us-gaap:CommonStockMember2021-06-300001161728us-gaap:OperatingSegmentsMembermgee:ElectricMember2021-07-012021-09-300001161728us-gaap:RetainedEarningsMember2021-06-300001161728mgee:TransmissionInvestmentMember2021-07-012021-09-300001161728us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300001161728us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001161728us-gaap:RetainedEarningsMember2020-09-300001161728mgee:FuelForElectricGenerationPurchasedPowerMembermgee:FinancialTransmissionRightsMember2021-01-012021-09-300001161728us-gaap:OperatingSegmentsMember2021-01-012021-09-300001161728mgee:RegulatoryAssetMember2020-12-310001161728mgee:TotaloperatingrevenueMember2020-01-012020-09-300001161728us-gaap:OtherCurrentAssetsMember2020-12-310001161728mgee:PurchasedPowerAgreementMembermgee:DerivativeLiabilitiesNoncurrentMember2020-12-310001161728mgee:ElectricRateProceedingMembermgee:PublicServiceCommissionOfWisconsinMembermgee:MgeMember2020-01-012020-12-310001161728mgee:RegulatoryAssetMember2020-06-300001161728us-gaap:CorporateAndOtherMember2021-01-012021-09-300001161728mgee:PurchasedPowerExpenseMember2021-07-012021-09-300001161728us-gaap:IntersegmentEliminationMember2021-07-012021-09-300001161728srt:WeightedAverageMember2021-01-012021-09-30utr:MWmgee:Counterpartyxbrli:purexbrli:sharesmgee:Dth1iso4217:USDxbrli:sharesutr:MWhiso4217:USD

 

 

United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

 Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended:

September 30, 2021

 Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _______________ to _______________

Commission

File No.

 

Name of Registrant, State of Incorporation, Address

of Principal Executive Offices, and Telephone No.

 

IRS Employer

Identification No.

000-49965

 

MGE Energy, Inc.

(a Wisconsin Corporation)

133 South Blair Street

Madison, Wisconsin 53788

(608) 252-7000 | mgeenergy.com

 

39-2040501

000-1125

 

Madison Gas and Electric Company

(a Wisconsin Corporation)

133 South Blair Street

Madison, Wisconsin 53788

(608) 252-7000 | mge.com

 

39-0444025

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days:

MGE Energy, Inc. Yes ☒ No ☐

Madison Gas and Electric Company Yes ☒ No ☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files):

MGE Energy, Inc. Yes ☒ No ☐

Madison Gas and Electric Company Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer

Accelerated

Filer

Non-accelerated Filer

Smaller Reporting Company

Emerging Growth Company

MGE Energy, Inc.

Madison Gas and Electric Company

If an emerging growth company, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

MGE Energy, Inc.        ☐

Madison Gas and Electric Company

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act):

MGE Energy, Inc. Yes   No ☒

Madison Gas and Electric Company Yes   No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading symbol(s)

 

Name of each exchange on which registered

Common Stock, $1 Par Value Per Share

 

MGEE

 

The NASDAQ Stock Market

 

Number of Shares Outstanding of Each Class of Common Stock as of October 31, 2021

MGE Energy, Inc.

Common stock, $1.00 par value, 36,163,370 shares outstanding.

Madison Gas and Electric Company

Common stock, $1.00 par value, 17,347,894 shares outstanding (all of which are owned beneficially and of record by MGE Energy, Inc.).

 

1


 

Table of Contents

 

PART I. FINANCIAL INFORMATION

3

Filing Format

3

Forward-Looking Statements

3

Where to Find More Information

3

Definitions, Abbreviations, and Acronyms Used in the Text and Notes of this Report

4

Item 1. Financial Statements.

6

MGE Energy, Inc.

6

Consolidated Statements of Income (unaudited)

6

Consolidated Statements of Cash Flows (unaudited)

7

Consolidated Balance Sheets (unaudited)

8

Consolidated Statements of Common Equity (unaudited)

9

Madison Gas and Electric Company

10

Consolidated Statements of Income (unaudited)

10

Consolidated Statements of Cash Flows (unaudited)

11

Consolidated Balance Sheets (unaudited)

12

Consolidated Statements of Equity (unaudited)

13

MGE Energy, Inc., and Madison Gas and Electric Company - Notes to Consolidated Financial Statements (unaudited)

14

1. Summary of Significant Accounting Policies.

14

2. New Accounting Standards.

15

3. Investment in ATC and ATC Holdco.

15

4. Taxes.

16

5. Pension and Other Postretirement Plans.

16

6. Equity and Financing Arrangements.

17

7. Share-Based Compensation.

18

8. Commitments and Contingencies.

18

9. Rate Matters.

21

10. Derivative and Hedging Instruments.

22

11. Fair Value of Financial Instruments.

25

12. Joint Plant Construction Project Ownership.

29

13. Asset Retirement Obligations.

29

14. Revenue.

29

15. Segment Information.

31

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

33

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

51

Item 4. Controls and Procedures.

53

PART II. OTHER INFORMATION.

54

Item 1. Legal Proceedings.

54

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

54

Item 3. Defaults Upon Senior Securities.

54

Item 4. Mine Safety Disclosures.

54

Item 5. Other Information.

54

Item 6. Exhibits.

55

Signatures - MGE Energy, Inc.

56

Signatures - Madison Gas and Electric Company

57

 

2


 

PART I. FINANCIAL INFORMATION.

 

Filing Format

 

This combined Form 10-Q is being filed separately by MGE Energy, Inc. (MGE Energy) and Madison Gas and Electric Company (MGE). MGE is a wholly owned subsidiary of MGE Energy and represents a majority of its assets, liabilities, revenues, expenses, and operations. Thus, all information contained in this report relates to, and is filed by, MGE Energy. Information that is specifically identified in this report as relating solely to MGE Energy, such as its financial statements and information relating to its nonregulated business, does not relate to, and is not filed by, MGE. MGE makes no representation as to that information. The terms "we" and "our," as used in this report, refer to MGE Energy and its consolidated subsidiaries unless otherwise indicated.

 

Forward-Looking Statements

 

This report, and other documents filed by MGE Energy and MGE with the Securities and Exchange Commission (SEC) from time to time, contain forward-looking statements that reflect management's current assumptions and estimates regarding future performance and economic conditions—especially as they relate to economic conditions, future load growth, revenues, expenses, capital expenditures, financial resources, regulatory matters, and the scope and expense associated with future environmental regulation. These forward-looking statements are made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "expect," "anticipate," "estimate," "could," "should," "intend," "will," and other similar words generally identify forward-looking statements. Both MGE Energy and MGE caution investors that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, expressed, or implied.

 

The factors that could cause actual results to differ materially from the forward-looking statements made by a registrant include: (a) those factors discussed in the registrants' 2020 Annual Report on Form 10-K: Item 1A. Risk Factors, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, as updated by Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations in this report, and Item 8. Financial Statements and Supplementary Data – Note 16, as updated by Part I, Item 1. Financial Statements – Note 8 in this report, and (b) other factors discussed herein and in other filings made by that registrant with the SEC.

 

Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this report. MGE Energy and MGE assume no obligation to release publicly any revision to these forward-looking statements to reflect events or circumstances after the date of this report, except as required by law.

 

Where to Find More Information

 

The public may read and copy any reports or other information that MGE Energy and MGE file with the SEC at the SEC's public reference room at 100 F Street, NE, Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. These documents also are available to the public from commercial document retrieval services, the website maintained by the SEC at sec.gov, MGE Energy's website at mgeenergy.com, and MGE's website at mge.com. Copies may be obtained from our websites free of charge. Information contained on MGE Energy's and MGE's websites shall not be deemed incorporated into, or to be a part of, this report.

3


 

Definitions, Abbreviations, and Acronyms Used in the Text and Notes of this Report

 

Abbreviations, acronyms, and definitions used in the text and notes of this report are defined below.

 

MGE Energy and Subsidiaries:

 

 

 

CWDC

Central Wisconsin Development Corporation

MAGAEL

MAGAEL, LLC

MGE

Madison Gas and Electric Company

MGE Energy

MGE Energy, Inc.

MGE Power

MGE Power, LLC

MGE Power Elm Road

MGE Power Elm Road, LLC

MGE Power West Campus

MGE Power West Campus, LLC

MGE Services

MGE Services, LLC

MGE State Energy Services

MGE State Energy Services, LLC

MGE Transco

MGE Transco Investment, LLC

MGEE Transco

MGEE Transco, LLC

North Mendota

North Mendota Energy & Technology Park, LLC

 

 

Other Defined Terms:

 

 

 

2017 Tax Act

Tax Cut and Jobs Act of 2017

2021 Plan

MGE Energy's 2021 Long-Term Incentive Plan

ACE Rule

Affordable Clean Energy Rule

AFUDC

Allowance for Funds Used During Construction

ARO

Asset retirement obligation

ATC

American Transmission Company LLC

ATC Holdco

ATC Holdco, LLC

Badger Hollow I

Badger Hollow I Solar Farm

Badger Hollow II

Badger Hollow II Solar Farm

Blount

Blount Station

BTA

Best technology available

CA

Certificate of Authority

CCR

Coal Combustion Residual

Columbia

Columbia Energy Center

cooling degree days

Measure of the extent to which the average daily temperature is above 65 degrees Fahrenheit, which is considered an indicator of possible increased demand for energy to provide cooling

COVID-19

Coronavirus Disease 2019

CPP Rule

Clean Power Plan Rule

CSAPR

Cross-State Air Pollution Rule

Dth

Dekatherms, a quantity measure for natural gas

ELG

Effluent Limitations Guidelines

electric margin

Electric revenues less fuel for electric generation and purchase power costs, a non-GAAP measure

Elm Road Units

Elm Road Generating Station

EPA

United States Environmental Protection Agency

FERC

Federal Energy Regulatory Commission

FTR

Financial Transmission Rights

GAAP

Generally Accepted Accounting Principles

gas margin

Gas revenues less cost of gas sold, a non-GAAP measure

GHG

Greenhouse gas

heating degree days (HDD)

Measure of the extent to which the average daily temperature is below 65 degrees Fahrenheit, which is considered an indicator of possible increased demand for energy to provide heating

 

4


 

IRS

Internal Revenue Service

kWh

Kilowatt-hour, a measure of electric energy produced

MISO

Midcontinent Independent System Operator (a regional transmission organization)

MW

Megawatt, a measure of electric energy generating capacity

MWh

Megawatt-hour, a measure of electric energy produced

NAAQS

National Ambient Air Quality Standards

NOx

Nitrogen oxide

O'Brien

O'Brien Solar Fields

PGA

Purchased Gas Adjustment clause, a regulatory mechanism used to reconcile natural gas costs recovered in rates to actual costs

PPA

Purchased Power Agreement

PSCW

Public Service Commission of Wisconsin

Riverside

Riverside Energy Center

ROE

Return on equity

Saratoga

Saratoga Wind Farm

SCR

Selective Catalytic Reduction

SEC

Securities and Exchange Commission

SIP

State Implementation Plan

SO2

Sulfur dioxide

Stock Plan

Direct Stock Purchase and Dividend Reinvestment Plan of MGE Energy

Two Creeks

Two Creeks Solar Farm

WCCF

West Campus Cogeneration Facility

WDNR

Wisconsin Department of Natural Resources

working capital

Current assets less current liabilities

WPL

Wisconsin Power and Light Company, a subsidiary of Alliant Energy Corporation

XBRL

eXtensible Business Reporting Language

 

5


 

Item 1. Financial Statements.

MGE Energy, Inc.

Consolidated Statements of Income (unaudited)

(In thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Electric revenues

 

$

121,853

 

 

$

116,568

 

 

$

324,574

 

 

$

303,556

 

Gas revenues

 

 

24,020

 

 

 

18,643

 

 

 

119,944

 

 

 

98,568

 

Total Operating Revenues

 

 

145,873

 

 

 

135,211

 

 

 

444,518

 

 

 

402,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Fuel for electric generation

 

 

18,486

 

 

 

12,945

 

 

 

42,570

 

 

 

31,343

 

Purchased power

 

 

8,646

 

 

 

10,708

 

 

 

28,914

 

 

 

32,050

 

Cost of gas sold

 

 

8,780

 

 

 

3,812

 

 

 

57,728

 

 

 

40,950

 

Other operations and maintenance

 

 

48,494

 

 

 

45,819

 

 

 

144,563

 

 

 

136,412

 

Depreciation and amortization

 

 

18,991

 

 

 

18,592

 

 

 

55,968

 

 

 

55,193

 

Other general taxes

 

 

4,878

 

 

 

5,010

 

 

 

14,730

 

 

 

14,892

 

Total Operating Expenses

 

 

108,275

 

 

 

96,886

 

 

 

344,473

 

 

 

310,840

 

Operating Income

 

 

37,598

 

 

 

38,325

 

 

 

100,045

 

 

 

91,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

6,164

 

 

 

6,534

 

 

 

14,353

 

 

 

19,131

 

Interest expense, net

 

 

(6,079

)

 

 

(5,765

)

 

 

(17,591

)

 

 

(17,740

)

Income before income taxes

 

 

37,683

 

 

 

39,094

 

 

 

96,807

 

 

 

92,675

 

Income tax provision

 

 

(2,766

)

 

 

(7,300

)

 

 

(4,106

)

 

 

(16,053

)

Net Income

 

$

34,917

 

 

$

31,794

 

 

$

92,701

 

 

$

76,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share of Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.97

 

 

$

0.88

 

 

$

2.56

 

 

$

2.16

 

Diluted

 

$

0.97

 

 

$

0.88

 

 

$

2.56

 

 

$

2.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share of common stock

 

$

0.388

 

 

$

0.370

 

 

$

1.128

 

 

$

1.075

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

36,163

 

 

 

36,163

 

 

 

36,163

 

 

 

35,427

 

Diluted

 

 

36,170

 

 

 

36,163

 

 

 

36,176

 

 

 

35,427

 

 

The accompanying notes are an integral part of the above unaudited consolidated financial statements.

6


 

MGE Energy, Inc.

Consolidated Statements of Cash Flows (unaudited)

(In thousands)

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2021

 

 

2020

 

Operating Activities:

 

 

 

 

 

 

Net income

 

$

92,701

 

 

$

76,622

 

Items not affecting cash:

 

 

 

 

 

 

Depreciation and amortization

 

 

55,968

 

 

 

55,193

 

Deferred income taxes

 

 

1,955

 

 

 

8,464

 

Provision for doubtful receivables

 

 

1,163

 

 

 

1,078

 

Employee benefit plan cost (credit)

 

 

(935

)

 

 

(2,813

)

Equity earnings in investments

 

 

(7,440

)

 

 

(7,780

)

Other items

 

 

(618

)

 

 

382

 

Changes in working capital items:

 

 

 

 

 

 

(Increase) decrease in current assets

 

 

(11,240

)

 

 

5,494

 

Increase (decrease) in current liabilities

 

 

4,429

 

 

 

(8,808

)

Dividends from investments

 

 

5,842

 

 

 

6,929

 

Cash contributions to pension and other postretirement plans

 

 

(4,823

)

 

 

(4,576

)

Other noncurrent items, net

 

 

4,295

 

 

 

5,826

 

Cash Provided by Operating Activities

 

 

141,297

 

 

 

136,011

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Capital expenditures

 

 

(114,142

)

 

 

(139,055

)

Capital contributions to investments

 

 

(4,227

)

 

 

(4,007

)

Other

 

 

22

 

 

 

(1,298

)

Cash Used for Investing Activities

 

 

(118,347

)

 

 

(144,360

)

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Issuance of common stock, net

 

 

 

 

 

79,635

 

Cash dividends paid on common stock

 

 

(40,774

)

 

 

(38,349

)

Repayments of long-term debt

 

 

(3,567

)

 

 

(22,784

)

Issuance of long-term debt

 

 

100,000

 

 

 

19,300

 

Net repayments of short-term debt

 

 

(52,500

)

 

 

 

Other

 

 

(1,503

)

 

 

(1,175

)

Cash Provided by Financing Activities

 

 

1,656

 

 

 

36,627

 

 

 

 

 

 

 

 

Change in cash, cash equivalents, and restricted cash

 

 

24,606

 

 

 

28,278

 

Cash, cash equivalents, and restricted cash at beginning of period

 

 

47,039

 

 

 

25,814

 

Cash, cash equivalents, and restricted cash at end of period

 

$

71,645

 

 

$

54,092

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

Significant noncash investing activities:

 

 

 

 

 

 

Accrued capital expenditures

 

$

8,213

 

 

$

23,594

 

 

The accompanying notes are an integral part of the above unaudited consolidated financial statements.

7


 

MGE Energy, Inc.

Consolidated Balance Sheets (unaudited)

(In thousands)

 

 

 

September 30,

 

 

December 31,

 

ASSETS

 

2021

 

 

2020

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

70,454

 

 

$

44,738

 

Accounts receivable, less reserves of $4,937 and $5,787, respectively

 

 

43,162

 

 

 

41,384

 

Other accounts receivable, less reserves of $1,257 and $1,290, respectively

 

 

12,950

 

 

 

7,300

 

Unbilled revenues

 

 

22,973

 

 

 

27,511

 

Materials and supplies, at average cost

 

 

31,179

 

 

 

32,513

 

Fuel for electric generation, at average cost

 

 

3,724

 

 

 

6,356

 

Stored natural gas, at average cost

 

 

15,624

 

 

 

8,396

 

Prepaid taxes

 

 

12,983

 

 

 

15,179

 

Regulatory assets - current

 

 

8,060

 

 

 

14,748

 

Other current assets

 

 

12,976

 

 

 

11,394

 

Total Current Assets

 

 

234,085

 

 

 

209,519

 

Other long-term receivables

 

 

982

 

 

 

1,435

 

Regulatory assets

 

 

135,603

 

 

 

142,504

 

Pension benefit asset

 

 

25,594

 

 

 

13,873

 

Other deferred assets and other

 

 

27,868

 

 

 

22,259

 

Property, Plant, and Equipment:

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

1,743,447

 

 

 

1,630,286

 

Construction work in progress

 

 

103,919

 

 

 

139,099

 

Total Property, Plant, and Equipment

 

 

1,847,366

 

 

 

1,769,385

 

Investments

 

 

99,236

 

 

 

94,676

 

Total Assets

 

$

2,370,734

 

 

$

2,253,651

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Long-term debt due within one year

 

$

4,859

 

 

$

4,771

 

Short-term debt

 

 

 

 

 

52,500

 

Accounts payable

 

 

57,431

 

 

 

54,642

 

Accrued interest and taxes

 

 

7,769

 

 

 

8,539

 

Accrued payroll related items

 

 

12,109

 

 

 

12,635

 

Regulatory liabilities - current

 

 

31,293

 

 

 

41,664

 

Derivative liabilities

 

 

160

 

 

 

10,160

 

Other current liabilities

 

 

9,922

 

 

 

6,015

 

Total Current Liabilities

 

 

123,543

 

 

 

190,926

 

Other Credits:

 

 

 

 

 

 

Deferred income taxes

 

 

241,731

 

 

 

231,471

 

Investment tax credit - deferred

 

 

31,011

 

 

 

21,821

 

Regulatory liabilities

 

 

149,028

 

 

 

142,239

 

Accrued pension and other postretirement benefits

 

 

77,406

 

 

 

78,168

 

Derivative liabilities

 

 

 

 

 

3,980

 

Finance lease liabilities

 

 

17,828

 

 

 

17,532

 

Other deferred liabilities and other

 

 

86,591

 

 

 

72,211

 

Total Other Credits

 

 

603,595

 

 

 

567,422

 

Capitalization:

 

 

 

 

 

 

Common shareholders' equity

 

 

1,028,285

 

 

 

976,000

 

Long-term debt

 

 

615,311

 

 

 

519,303

 

Total Capitalization

 

 

1,643,596

 

 

 

1,495,303

 

Commitments and contingencies (see Footnote 8)

 

 

 

 

 

 

Total Liabilities and Capitalization

 

$

2,370,734

 

 

$

2,253,651

 

 

The accompanying notes are an integral part of the above unaudited consolidated financial statements.

8


 

MGE Energy, Inc.

Consolidated Statements of Common Equity (unaudited)

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Common Stock

 

 

 

Paid-in

 

 

 

Retained

 

 

 

Comprehensive

 

 

 

 

 

 

 

Shares

 

 

Value

 

 

 

Capital

 

 

 

Earnings

 

 

 

Income/(Loss)

 

 

 

Total

 

Three Months Ended September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

 

36,163

 

 

$