Inside View October 2019

October 2019 Inside View

MGE

Powering a smart energy future.

MGE Energy achieves 44 years of consecutive dividend increases

In August, the MGE Energy Board of Directors increased the regular quarterly dividend rate by more than 4% to $0.3525 per share on the outstanding shares of the company's common stock.

"Our board's action to increase the regular quarterly dividend rate reflects confidence in our long-term business strategy for building your community energy company for the future," Chairman, President and CEO Jeff Keebler said.

MGE Energy is one of only four combination utility holding companies nationwide to increase its dividend for 44 or more years.

Commitment to building long-term shareholder value
MGE Energy has a history of disciplined financial management and a commitment to building long-term shareholder value. MGE Energy has paid cash dividends for more than 100 years. No other Wisconsin utility can match our dividend track record.

MGEE 10-Year Cumulative Total Return

The financial publisher Mergent consistently ranks MGE Energy as a "Dividend Achiever." Dividends are part of the total value we provide to shareholders, many of whom choose to reinvest their dividends to grow their value.

Total return combines stock price with reinvested dividends. Taking a 10-year view of MGE Energy's annual total return, a $1,000 investment at the end of 2008 grew to $3,689 by the close of 2018 with reinvested dividends.

Disciplined financial management leads to top rankings
MGE Energy's financial strength positions the company well for future investments in our core business. Our regulated utility, Madison Gas and Electric (MGE), has the highest credit ratings in the nation for combination utilities from both Moody's and Standard & Poor's.

In September 2019, Value Line, Inc., raised MGE Energy's financial strength rating from A to A+. The company continues to earn top marks from Value Line for investment safety.

MGEE Value Line Ratings

Major solar projects move forward

Growing our investment in cost-effective renewable energy is one of MGE's strategies for achieving deep decarbonization and net-zero carbon electricity by 2050. In the past 10 years, MGE Energy has grown its asset base from $1.3 billion in 2008 to almost $2 billion in 2018. Increasingly, this growth is fueled by investments in wind and solar generation.

With no fuel costs and improved technology, renewable generation investments are building customer and shareholder value. MGE has a projected $220 million in estimated capital spending through 2021 to move forward several solar energy projects in Wisconsin.

  • In August, MGE and We Energies announced a new partnership to acquire 150 megawatts (MW) of the Badger Hollow Solar Farm in Iowa County. If approved, MGE will own 50 MW of this second phase of Badger Hollow, which is expected to be operational in 2021.
  • In April, MGE and Wisconsin Public Service (WPS) received regulatory approval to own a combined total of 150 MW at Badger Hollow. MGE will own 50 MW of this first phase of the project, which is expected to be online by the end of 2020. MGE and WPS also received approval to own 150 MW of Two Creeks Solar in Manitowoc County. MGE will own 50 MW.
  • MGE is building a 5-MW solar array in Middleton, Wis., to serve the company's Shared Solar program. Thirty percent of the array will serve two major customers under our Renewable Energy Rider (RER). The array is expected online in summer 2020.
  • MGE also is partnering with Dane County to build a 9-MW solar array at Dane County Regional Airport under an RER to serve the County.
  • MGE is working with a developer to propose a solar array of up to 20 MW in Fitchburg, Wis., to serve large customers under RER agreements. The initial phase of the O’Brien Solar Fields would be a 6-MW solar installation that would come online next year, if approved.

 

Investing in the customer experience

As MGE builds your community energy company for the future, the company is investing in new systems and enhanced capabilities to better serve its customers. These investments are part of Enterprise Forward, a major multiyear initiative that launched new tools this year for enterprise resource planning, work and asset management for inventory and human capital management.

In 2019, planning is underway to start upgrades to the company's customer information and billing systems as well as systems to improve the customer experience, such as customers' communication preferences, and engagement tools and service requests. The consolidation and modernization of these legacy systems, combined with new technologies, will give MGE the capability and flexibility to respond to evolving customer needs and expectations. When complete, Enterprise Forward will enable the company to offer customers more customized programs, products and services more efficiently and effectively.

MGE publishes Annual Report on Giving

MGE is committed to improving the quality of life for everyone who lives and works within our service area. Investing in the communities we serve is part of our mission.

MGE has published our 2018 Annual Report on Giving. The report captures some of the ways in which we give, partner and work to support our communities. We contribute in three different ways:

  • Charitable giving by the MGE Foundation, our philanthropic arm established in 1967.
  • Corporate giving by MGE through partnerships, collaborations and projects with local organizations and stakeholders.
  • Volunteerism and service of our employees.

The report is available online at mge.com/foundation.

Reduce paper mailings

We are pleased to offer our shareholders the convenience of electronic delivery. We know that small steps make a difference and by reducing the amount of printed shareholder materials you receive, you can help protect the environment. Sign up at mgeenergy.com/paperless and receive your Annual Meeting notification, Proxy Statement and Annual Report electronically.

Contact Shareholder Services

(608) 252-4744 or (800) 356-6423
investor@mgeenergy.com

P.O. Box 1231
Madison, WI 53701-1231

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Inside View

The Inside View is published periodically to provide investors with information about MGE Energy. MGE Energy's primary asset, Madison Gas and Electric, provides highly reliable gas and electric service and promotes economic development in south-central and western Wisconsin.