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SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
Filed by the registrant [X]
Filed by a party other than the registrant [ ]
Check the appropriate box:
[ ] Preliminary proxy statement
[ ] Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
[X] Definitive proxy statement
[ ] Definitive additional materials
[ ] Soliciting material pursuant to Rule 14a-11(c) or
Rule 14a-12
Madison Gas and Electric Company
- -------------------------------------------------------------------------------
(Name of Registrant as Specified in Its Charter)
- -------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of filing fee (Check the appropriate box):
[ ] $125 per Exchange Act Rule 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(i)(2)
or Item 22(a)(2) of Schedule 14A.
[ ] $500 per each party to the controversy pursuant to Exchange Act
Rule 14a-6(i)(3).
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies:
- --------------------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
- --------------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing
fee is calculated and state how it was determined):
- --------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
- --------------------------------------------------------------------------------
(5) Total fee paid:
- --------------------------------------------------------------------------------
[X] Fee paid previously with preliminary materials.
- --------------------------------------------------------------------------------
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the form or schedule and the date of its filing.
(1) Amount previously paid:
- --------------------------------------------------------------------------------
(2) Form, schedule or registration statement no.:
- --------------------------------------------------------------------------------
(3) Filing party:
- --------------------------------------------------------------------------------
(4) Date filed:
- --------------------------------------------------------------------------------
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MADISON GAS AND ELECTRIC COMPANY
[MG&E LOGO]
------------------------------------------------
PROXY STATEMENT
------------------------------------------------
ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD MAY 6, 19965, 1998
32
MADISON GAS AND ELECTRIC COMPANY
POST OFFICE BOX 1231
MADISON, WISCONSIN 53701-1231
March 26, 199623, 1998
Dear Shareholder:
The directors and officers of the Company join me in extending a cordial
invitation to you to attend our 19961998 Annual Meeting of Shareholders which will
be held on Monday,Tuesday, May 6, 1996,5, 1998, at 11:00 a.m., local time, atin the Holiday Inn --Exhibition
Hall of the Dane County Exposition Center, 1919 Expo Way, Madison, West, 1313 John Q. Hammons Drive, Greenway Center, Middleton, Wisconsin
(see the map on the next page).
The accompanying Proxy Statement requests approval of the election of a
slate of nominees for directors of Class IIII to hold office until 1999 and
approval of an amendment to the Company's Restated Articles of Incorporation.2001.
At the Meeting we will discuss last year's operations, comment on items of
interest to you and the Company, and give you an opportunity to ask questions.
Following the Meeting, our Company's officers, directors, and other employees
will be available to answer any questions you may have.
YOUR VOTE IS IMPORTANT TO US.IMPORTANT. I ENCOURAGE YOU TO SIGN AND DATE YOUR PROXY
PROMPTLY AND MAIL IT BACK TO US even if you plan to attend the Meeting. You may
revoke your proxy at the Meeting and vote your shares in person if you wish.
I hope you will be able to attend.
Very truly yours,
David C. Mebane
DAVID C. MEBANE
Chairman of the Board, President,
and Chief Executive Officer
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If you plan to attend the Annual Meeting in person, please fill out the
enclosed attendance cardreservation form and return it with your proxy so that we may have an indication
of the number of shareholders planning to attend the Meeting.
If you have any questions, please feel free to call our Shareholder
Services toll-free number. Call 1-800-356-6423 if you are calling from outside
Wisconsin (Continental United States). In Wisconsin, please call 1-800-362-6423,
and in the Madison area, call 252-4744.
CAMERA READY MAP
FromMap
Note: Enter the West Beltline Highway, take Exit 252 -- Greenway Blvd.Dane County Expo Center grounds through the Main Gate off of
Rimrock Road (see inset map).
54
MADISON GAS AND ELECTRIC COMPANY
POST OFFICE BOX 1231
MADISON, WISCONSIN 53701-1231
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
MONDAY,TUESDAY, MAY 6, 1996,5, 1998, 11:00 A.M.
The 19961998 Annual Meeting of Shareholders of Madison Gas and Electric Company
will be held in Middleton,Madison, Wisconsin, atin the Holiday Inn --Exhibition Hall of the Dane County
Exposition Center, 1919 Expo Way, Madison, West, 1313
John Q. Hammons Drive, Greenway Center, Middleton, Wisconsin, on Monday,Tuesday, May 6,
1996,5, 1998,
at 11:00 a.m., local time, for the purposes of:
(1) Electing three directors of Class IIII directors to hold office until the Annual
Meeting of Shareholders in 19992001 and until their successors have been
elected and qualified.
(2) Considering and voting upon a proposed amendment of Article Third,
Division A, of the Company's Restated Articles of Incorporation to (i)
increase the number of shares of Common Stock authorized for issuance by
the Company from the present 28,000,000 shares to 50,000,000 shares, and
(ii) reduce the par value of Common Stock from $8.00 to $1.00 per share.
(3) Transacting such other business as may properly come before the
Meeting.
Only those shareholders of Common Stock of record at the close of business
on March 1, 1996,1998, are entitled to vote at the Meeting. All shareholders are
requested to be present at the Meeting in person or by proxy. Enclosed is a
proxy.
Your attention is directed to the Proxy Statement of Madison Gas and
Electric Company on the following pages.
By order of the Board of Directors
GARY J. WOLTER, Secretary
March 26, 199623, 1998
-------------------------
It is important to you and the Company that your shares be represented at
the Annual Meeting of Shareholders. Even if you plan to attend the Meeting in
person, you are requested to sign, date, and mail the enclosed proxy promptly --
regardless of the size of your stock holding.
The signature on the proxy should correspond exactly with the name of the
shareholder as it appears on the proxy. Where stock is registered in the names
of two or more persons, all such persons should sign the proxy.
If the proxy is signed as attorney, officer, personal representative,
administrator, trustee, guardian, or similar capacity, please indicate full
title as such.
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MADISON GAS AND ELECTRIC COMPANY
POST OFFICE BOX 1231
MADISON, WISCONSIN 53701-1231
PROXY STATEMENT
To the Shareholders of the Common Stock of
MADISON GAS AND ELECTRIC COMPANY:
The Proxy Statement and accompanying proxy, to be mailed on or about March 26, 1996,23,
1998, are furnished as a part of the solicitation of proxies by the Board of
Directors of Madison Gas and Electric Company (hereinafter referred to as the
"Company"), to be voted at the 19961998 Annual Meeting of Shareholders of the
Company to be held in Middleton, Wisconsin, at the Holiday Inn --Exhibition Hall of the Dane County Exposition Center,
1919 Expo Way, Madison, West,
1313 John Q. Hammons Drive, Greenway Center, Middleton, Wisconsin, on Monday,Tuesday, May 6, 1996,5, 1998, at 11:00 a.m., local
time, for the purposes set forth in the accompanying Notice of Annual Meeting of
Shareholders. A shareholder who executes a proxy may revoke it at any time
before it is voted. A proxy may be revoked by written notice to the Company,
execution of a subsequent proxy which is voted at the 19961998 Annual Meeting, or
attendance at the Meeting and voting in person. Attendance at the Meeting will
not automatically revoke a proxy.
As of March 1, 1996,1998, the Company had outstanding 16,079,718 shares of
28,000,00050,000,000 authorized shares of Common Stock. The Common Stock constitutes the
only class of securities entitled to vote at the 19961998 Annual Meeting of
Shareholders. Only those shareholders of Common Stock of record at the close of
business on March 1, 1996,1998, are entitled to vote at the Meeting. At the 1985
Annual Meeting of Shareholders, the shareholders of the Company approved an
amendment to the Company's Restated Articles of Incorporation (the "Restated
Articles") limiting the voting power of any shareholder who acquires more than
10 percent of the Company's outstanding voting stock. To the knowledge of the
Company, this limitation does not currently apply to any shareholder.
Accordingly, at the present time, one share of Common Stock will be entitled to
one vote. For those shareholders who are participants in the Company's Investors
Plus Plan, the shares you have accumulated in the Plan are held by the
Administrator of the Plan under the nominee name of Whimm & Co., and those
shares, including your reinvestment shares, will be voted in accordance with the
direction given on the proxy.
VOTING INFORMATION
A shareholder may, with respect to the election of directors, (i) vote for
the election of all named director nominees, (ii) withhold authority to vote for
all named director nominees, or (iii) vote for the 2
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election of all such nominees
other than any nominee with respect to whom the shareholder withholds authority
to vote by so indicating on the proxy. A
shareholder may, with respect to the proposal to amend the Company's Restated
Articles of Incorporation, (i) vote for the proposal, (ii) vote against the
proposal, or (iii) abstain from voting on the proposal. Proxies properly executed and received by
the Company at or prior to the 19961998 Annual Meeting of Shareholders and not
revoked will be voted as directed therein. In the absence of a specific
direction from a shareholder, proxies will be voted for the election of the
named director nominees and for the proposal to amend the
Company's Restated Articles of Incorporation.nominees. If a proxy indicates that all or a portion of the votes
represented by such proxy are not being voted, such nonvotes will not be
considered as votes cast with respect to such matter, although such shares may
be considered present and entitled to vote for other purposes and will count for
purposes of determining the presence of a quorum.
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If a quorum is present at the 19961998 Annual Meeting, the three persons
receiving the greatest number of votes will be elected to serve as Class IIII
directors. Accordingly, withholding authority to vote for a director and
nonvotes with respect to the election of directors will not affect the outcome
of the election of directors.
If a quorum is present at the 1996 Annual Meeting,
approval of the proposal to amend the Company's Restated Articles of
Incorporation requires the affirmative vote of two-thirds of the Common Stock
outstanding and entitled to vote at the 1996 Annual Meeting. Accordingly,
abstentions and nonvotes with respect to the proposal to amend the Company's
Restated Articles of Incorporation have the legal effect of a vote against the
proposal.
ELECTION OF DIRECTORS
As described below, upon the retirement of Messrs. Bolz and Rennebohm at
the 1996 Annual Meeting, theThe Board of Directors will consistconsists of eight directors divided into three
classes, one class having two directors and two classes having three directors,
with one class being elected each year for a term of three years. Accordingly,
it is proposed that the three nominees listed below be elected to serve as Class
IIII directors for three-year terms, to expire at the 19992001 Annual Meeting of
Shareholders and upon the election and qualification of their successors.
Mrs. BiddickMessrs. Blaney, Mohs, and Messrs. Mebane and RennebohmStark are currently Class IIII directors whose
terms expire at the 19961998 Annual Meeting. Mrs. BiddickMeeting and Mr.
Mebanewho have been nominated for
reelection. Mr. Rennebohm, age 73, who has been a
director for 13 years, has informed the Board of his intention to retire from
the Board and committees thereof upon the expiration of his term at the 1996
Annual Meeting. Ms. Millner has been nominated for election as a Class I
director to fill the vacancy created by the retirement of Mr. Rennebohm.
Each of the nominees has indicated a willingness to serve if elected, and
the Board of Directors has no reason to believe that any nominee will be
unavailable. If any of the nominees should become unable to serve, it is
presently intended that the proxies solicited hereby will be voted for a
substitute nominee designated by the Board of Directors. 3
8
Mr. Bolz, age 73, who has been a directorUnder the Company's
retirement guidelines for 24 years, has also informed
the Board of his intention todirectors, non-officer directors must retire from the
Board and committees thereof atboard no later than the 1996 Annual Meeting. Mr. Bolz is currently a Class II director whose term
would expire at the 1997 Annual Meeting of Shareholders. Shareholders are not
being asked to elect a nominee to fill the vacancy created by Mr. Bolz's
retirement.following their 73(rd)
birthday.
Under the terms of the Company's Bylaws, nominations for the Board of
Directors made by shareholders must be made in writing and delivered or mailed
to the Chief Executive Officer and/or President of the Company at the Company's
principal executive offices not less than 14 days nor more than 60 days prior to
the Annual Meeting of Shareholders. If less than 14 days' notice of the Annual
Meeting is given to shareholders, such nominations must be delivered or mailed
as specified above not later than the close of business on the fourth day
following the day on which the notice was mailed. Such notification shall
contain the following information to the extent known to the nominating
shareholder: a) name and address of each proposed nominee, b) the principal
occupation of each proposed nominee, c) the name and residence address of the
nominating shareholder, and d) the number of shares of capital stock of the
corporation owned by the nominating shareholder. Shareholder nominations for the
19961998 Annual Meeting of Shareholders must be delivered or mailed to the Company
no later than April 22, 1996.21, 1998.
The following table sets forth the names of the nominees and the current
directors who will continue in office after the Meeting, their ages, information
as to their business experience for the last five years (unless otherwise
noted), and the year they first became directors of the Company.
3
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DIRECTOR
NAMES (AGES) AND BUSINESS EXPERIENCE SINCE
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Nominees (Class I)III) -- Term Expiring in 2001
RICHARD E. BLANEY (61), Madison, Wisconsin.................. 1974
Retired President of Richard Blaney Seeds Inc., sellers of
hybrid seed corn, with which he was associated for more
than 9 years.
FREDERIC E. MOHS (61), Madison, Wisconsin................... 1975
Partner in the law firm of Mohs, MacDonald, Widder &
Paradise, of which he has been a member since 1968.
PHILLIP C. STARK (72), Madison, Wisconsin................... 1985
Chairman of the Board and Vice President and Secretary of
The Stark Company, a real estate company, with which he
has been associated for 49 years.
Members of the Board of Directors Continuing in Office
Class I -- Term Expiring in 1999
JEAN MANCHESTER BIDDICK (69)(71), Madison, Wisconsin...............................Wisconsin............ 1982
Retired Chief Executive Officer of Neesvig's Inc., a
wholesale meat company, with which she was associated for
more than 27 years.
DAVID C. MEBANE (62)(64), Madison, Wisconsin.......................................Wisconsin.................... 1984
Chairman of the Board of Directors, President, and Chief
Executive Officer of the Company, of which he has been an
officer since 1980; also director of First Federal Capital
Corp., a bank holding company.
REGINA M. MILLNER (52)(53), Madison, Wisconsin.....................................Wisconsin.................. 1996
Attorney and Real Estate Consultant for more than 1012 years
and President of RMM Enterprises, Inc., a real estate
consulting firm; also a director of DomusWisconsin State Equity
Corporation.
4
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DIRECTOR
NAMES (AGES) AND BUSINESS EXPERIENCE SINCE
- ------------------------------------------------------------------------------- --------
Members of the Board of Directors Continuing in Office
Class II -- Term Expiring in 19972000
H. LEE SWANSON (58)(59), Cross Plains, Wisconsin...................................Wisconsin................ 1988
Chief Executive Officer, President, and Director of the
State Bank of Cross Plains, with which he has been
associated for more than 3032 years; also director of Mid-PlainsChorus
Communications Group and MidPlains Telephone Company, an independent telephone company.Company.
FRANK C. VONDRASEK (67)(69), Madison, Wisconsin....................................Wisconsin................. 1982
Vice Chairman of the Board of Directors of the Company, of which he was an
officer from 1974 through 1993.
Class III -- Term Expiring in 1998
RICHARD E. BLANEY (59), Madison, Wisconsin..................................... 1974
Retired President of Richard Blaney Seeds Inc., sellers of hybrid seed corn,
with which he was associated for more than 9 years.
FREDERIC E. MOHS (59), Madison, Wisconsin...................................... 1975
Partner in the law firm of Mohs, MacDonald, Widder & Paradise, of which he
has been a member since 1968.
PHILLIP C. STARK (70), Madison, Wisconsin...................................... 1985 Chairman of the Board and Vice President and Secretary of The StarkDirectors of the Company, a real estate company, withof
which he has been associated for 47 years.was an officer from 1974 through 1993.
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BENEFICIAL OWNERSHIP OF COMMON STOCK
BY DIRECTORS AND EXECUTIVE OFFICERS
(AS OF MARCH 1, 1996)
The following table lists the beneficial ownership of Common Stock of each
director and nominee, the individuals named in the Summary Compensation Table,
and the directors and executive officers as a group.group, and each person known by the
Company to be the beneficial owner of more than 5 percent of the outstanding
shares of Common Stock. In each case the indicated owner has sole voting power
and sole investment power with respect to the shares shown except as noted.
PERCENT OF
NUMBER OF SHARES OUTSTANDING
NAME BENEFICIALLY OWNED COMMON STOCK
------------------------------------------------------ ------------------ ------------
Burnett F. Adams.................................. 1,144(2) *
Jean Manchester Biddick........................... 3,311Biddick............... 3,716 *
Richard E. Blaney................................. 1,190Blaney..................... 1,335 *
Robert E. Domek................................... 7,068(1)Domek....................... 3,651(2)(5) *
Terry A. Hanson....................... 1,909(1)(2) *
David C. Mebane................................... 7,650(1)Mebane....................... 8,264(1)(2) *
Regina M. Millner................................. 918Millner..................... 924 *
Frederic E. Mohs.................................. 1,591(3)Mohs...................... 1,786(3) *
Phillip C. Stark.................................. 2,966Stark...................... 3,329 *
H. Lee Swanson.................................... 3,150(4)Swanson........................ 3,150 *
Frank C. Vondrasek................................ 19,028(1)Vondrasek.................... 21,355(1)(2) *
Mark C. Williamson................................ 1,747(2)Williamson.................... 2,048(1)(2) *
Gary J. Wolter.................................... 2,519(1)Wolter........................ 3,187(1)(2) *
All directors and executive officers
as a group(17)....................................... 72,213(2)group (19).................... 73,363(2) *
Marshall & Ilsley Corporation......... 974,403(4) 6.06
770 North Water Street
Milwaukee, Wisconsin 53202
- -------------------------
* Less than 1 percent.Percent.
(1) Messrs. Domek,Hanson, Mebane, Vondrasek, Williamson, and Wolter are directors of
Madison Gas and Electric Company Foundation, Inc., and as such have shared
voting and investment power in an additional 9,847 shares of Common Stock
held thereby.
(2) Includes Common Stock held under the two Employee Stock Ownership Plans of
the Company for the account of executive officers of the Company with
respect to which such persons have sole voting but no investment power: Mr.
Adams, 412Domek, 2,177 shares; Mr. Domek, 5,735Hanson, 402 shares; Mr. Mebane, 4,5885,149 shares; Mr.
Vondrasek, 10,65311,956 shares; Mr. Williamson, 1214 shares; Mr. Wolter, 7483 shares;
and directors and executive officers as a group, 33,01331,413 shares.
(3) Includes 544611 shares of Common Stock with respect to which Mr. Mohs is
trustee of a trust for the benefit of his children.
(4) Mr. SwansonMarshall & Ilsley Trust Company is a memberthe Trustee of the Qualified Plan CommitteeCompany=s Employee
Stock Ownership Plans. Marshall & Ilsley Corporation (M&I), as a parent
holding company, filed a Schedule 13G to report beneficial ownership by it
and four subsidiaries of shares of Common Stock. Based on information
contained in the Profit
Sharing Plan and the Money Purchase Pension Plan of the State Bank of Cross
Plains andSchedule 13G, this includes shares as suchto which M&I has sharedor
shares voting and investment power as follows: sole voting power as to
91,580 shares; shared voting power as to 878,688 shares (as to which
beneficial ownership is disclaimed as to 833,907 shares held in an additional
1,575one or more
employee benefit plans); sole investment power as to 88,974 shares; and
shared investment power as to 885,429 shares (as to which beneficial
ownership is disclaimed as to 833,907 shares held in one or more employee
benefit plans).
(5) Retired as Executive Vice President December 31, 1997.
5
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SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act of 1934 requires the Company's
directors, executive officers, and persons who own more than ten percent of the
Company's Common Stock held thereby.
6
11to file reports of ownership and changes in ownership
with the Securities and Exchange Commission. Such persons are also required to
furnish the Company with copies of all such reports.
Based solely on its review of the copies of such reports received by the
Company and written representations from certain reporting persons, the Company
notes that its directors and executive officers (the Company does not have any
greater than ten percent shareholders) filed all required reports during or with
respect to 1997 on a timely basis, except for Robert E. Domek, who filed one
report late relating to a sale of stock.
BOARD COMMITTEES
The Company has an Audit Committee, a Compensation Committee, an Executive
Committee, and a Personnel Committee.
During the year ended December 31, 1995,1997, a total of 12 meetings of the
Board of Directors were held. All of the directors attended in excess of 75
percent of the aggregate of these meetings and (if they were members of the
Audit, Compensation, Executive, or Personnel Committee) the meetings of the
Audit, Compensation, Executive, and Personnel Committees.
Directors who are not employees of the Company will receive $10,000$11,500
annually, plus $500$650 for each Board meeting attended and $350 for each Audit,
Compensation, Executive, or Personnel Committee meeting attended. The Vice
Chairman of the Board of Directors receives an additional $1,000$6,500 annual
retainer. Mr. Mebane does not receive additional compensation for serving as a
director.
The members of the Audit Committee continuing in office are Mrs. Biddick, Ms. Millner, and
Messrs. Blaney, Mohs, Stark, Swanson, and Vondrasek. The Audit Committee held
two meetings during 1995.1997. The Audit Committee's function is to meet with the
Company's internal auditors and independent public accountants and discuss with
them the scope and results of their audits, the Company's accounting practices,
and the adequacy of the Company's internal controls. The Audit Committee also
approves services performed by the Company's independent public accountants.
The members of the Compensation Committee continuing in office are Messrs. Blaney, Mohs, and
Mohs.Stark. The Compensation Committee held four meetingsone meeting during 1995.1997. The function of
the Compensation Committee is to review the salaries, fees, and other benefits
of officers and directors and recommend compensation adjustments to the Board of
Directors.
The members of the Executive Committee are Mrs. Biddick and Messrs. Blaney,
Mebane, Mohs, and Vondrasek. The Executive Committee held one meetingdid not meet during 1995.1997.
The Executive Committee provides a means of taking prompt action when a quorum
of the Board of Directors cannot be readily assembled. When the Board of
Directors is not in session, the Executive Committee has the powers of the Board
in the management of the business and affairs of the Company, except action with
respect to dividends to shareholders, election of principal officers, or the
filling of vacancies on the Board of Directors or committees created by the
Board of Directors. The members of the Executive Committee are elected by the
Board of Directors each year at the first meeting of the Board following the
Annual Meeting of Shareholders to serve until the first Board meeting following
the next Annual Meeting of Shareholders.
The members of the Personnel Committee are Mrs. Biddick, Ms. Millner, and
Messrs. Mebane, Mohs, Swanson, and Vondrasek. The Personnel Committee held four meetingsone
meeting during 1995.1997. The Personnel Committee makes recommendations with respect
to the election of directors and officers of the Company. Nominations for the
Board of Directors by shareholders, which are submitted to the Chief Executive
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12
Officer and/or President of the Company, in the manner described above, will be
considered by the Personnel Committee, the Board, or the Chief Executive
Officer.
PROPOSED AMENDMENT TO ARTICLE THIRD, DIVISION A, OF THE COMPANY'S RESTATED
ARTICLES OF INCORPORATION TO (I) INCREASE THE NUMBER OF SHARES OF COMMON STOCK
AUTHORIZED FOR ISSUANCE BY THE COMPANY FROM THE PRESENT 28,000,000 SHARES TO
50,000,000 SHARES, AND (II) REDUCE THE PAR VALUE OF COMMON STOCK FROM $8.00 PER
SHARE TO $1.00 PER SHARE
The Board of Directors has unanimously approved and recommended to the
shareholders an amendment (the "Proposed Amendment") of Article Third, Division
A, of the Restated Articles of Incorporation ("Articles") which reads as
follows:
"The number of shares of capital stock which the Company shall be
authorized to issue is Fifty-One Million One Hundred Seventy-Five Thousand
(51,175,000) shares, divided into Fifty Million (50,000,000) shares of
Common Stock, $1.00 par value per share, and One Million One Hundred
Seventy-Five Thousand (1,175,000) shares of Cumulative Preferred Stock,
$25.00 par value per share."
The Articles currently authorize the issuance of 28,000,000 shares of
Common Stock and 1,175,000 shares of Cumulative Preferred Stock. On December 15,
1995, the Board of Directors declared a 3 for 2 stock split in the form of a
stock dividend on the issued and outstanding shares of Common Stock, which was
paid on February 20, 1996, to shareholders of record at the close of business on
February 1, 1996. The payment of the stock dividend increased the number of
issued shares of Common Stock from 10,719,812 to 16,079,718, leaving 11,920,282
shares available for issuance.
The Proposed Amendment would increase the number of shares of Common Stock
authorized for issuance to 50,000,000 shares and would not change the number of
shares of Cumulative Preferred Stock authorized for issuance. The Proposed
Amendment would have no effect on the rights attaching to Common Stock. The
Board of Directors believes that the proposed increase in the number of
authorized shares of Common Stock will significantly enhance the Company's
financial flexibility. Shares of Common Stock may be used for general corporate
purposes, including stock splits and stock dividends, acquisitions, public and
private offerings, stock options, and other employee benefit plans. Having
additional authorized shares of Common Stock available for issuance will give
the Company greater flexibility and may result in future acquisitions or
issuances of Common Stock being effected without further shareholder action. The
Company has no present plans to issue any of the additional shares of Common
Stock which would be authorized by adoption of the Proposed Amendment.
The issuance of any additional shares of Common Stock may have the effect
of diluting the percentage of stock ownership, book value per share, and voting
rights of the present holders of the Common Stock. The Proposed Amendment may
also have the effect of discouraging attempts to take
86
13
over control of the Company, as additional shares of Common Stock could be
issued to dilute the stock ownership and voting power or increase the cost to a
party seeking to obtain control of the Company. The Proposed Amendment is not
being made in response to any known effort or threat to acquire control of the
Company and is not part of a plan by management to adopt a series of amendments
to the Articles having an anti-takeover effect.
The decrease of the par value of each share of Common Stock from $8.00 to
$1.00 will reduce correspondingly the Company's Common Stock account by $7.00
for each outstanding share. The proposed reduction in par value will not affect
the rights of any shareholders of the Company and will not require share
certificates to be exchanged. The effect of the reduction will allow the
transfer of $7.00 per outstanding share from the Company's Common Stock account
to the Amount Received in Excess of Par Value account. As of March 15, 1996, the
amount transferable from the Company's Common Stock account to the Amount
Received in Excess of Par Value account pursuant to this Proposed Amendment was
$112,558,026. The reduction in par value will have no effect on total
shareholders' equity as reflected in the Company's balance sheet, nor will the
decrease in par value have any negative impact on the Company, its operations,
or the manner in which it conducts its business.
The approval of the Proposed Amendment requires the affirmative vote of the
holders of two-thirds of the outstanding shares of Common Stock.
THE BOARD OF DIRECTORS BELIEVES THAT THE PROPOSED AMENDMENT IS IN THE BEST
INTERESTS OF THE COMPANY AND ITS SHAREHOLDERS AND UNANIMOUSLY RECOMMENDS A VOTE
FOR THE PROPOSED AMENDMENT.
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1410
EXECUTIVE COMPENSATION
The following table summarizes the compensation for the fiscal years 1993,
1994,1995,
1996, and 19951997 of the Chief Executive Officer and four other executive officers
serving as executive officers on December 31, 1995,1997, whose salary exceeded
$100,000 for fiscal year 1995.1997.
SUMMARY COMPENSATION TABLE
ANNUAL COMPENSATION LONG-TERM COMPENSATION
------------------------------------------------------------------ ---------------------------------
AWARDS ANNUAL COMPENSATION ------------------------ PAYOUTS
---------------------------------------------------------- -------
RESTRICTED SECURITIES -------
OTHER ANNUAL STOCK UNDERLYING LTIP ALL OTHER
NAME AND PRINCIPAL SALARY BONUS COMPENSATION AWARDS ($) OPTIONS PAYOUTS COMPENSATION
($)
POSITION YEAR SALARY ($) ($) ($) (6)($) (#) ($) (7)
- -------------------------($)(5)
------------------ ---- ---------------- ----- ------------ ---------- ---------- ------- ----------------------------
David C. Mebane(1)....... 1995 $264,321Mebane....... 1997 $287,316 0 $ 0 $ 0 0 $6,350 0 0 $2,250$ 8,857
Chairman, President, and 1994 $237,6011996 270,756 0 0 0 0 0 $2,25012,263
and Chief Executive 1995 252,452 0 2,766 6,350 0 0 11,353
Officer
1993 $175,806Robert E. Domek(1).... 1997 $180,575 0 $ 0 $ 0 0 0 $54,958
Executive Vice 1996 170,000 0 0 0 0 0 $2,2498,927
President 1995 119,558 0 1,087 6,350 0 0 7,678
Gary J. Wolter(2)........ 1995 $146,517..... 1997 $176,612 0 $ 0 $ 0 0 $6,350 0 0 $2,046$ 6,171
Senior Vice
President- 1994 $122,2211996 160,516 0 0 0 0 0 $1,8324,412
Administration and 19931995 144,844 0 153 6,350 0 0 3,566
Secretary
Mark C.
Williamson(3)....... 1997 $174,984 0 $ 97,5150 $ 0 0 0 $ 3,114
Senior Vice
President- 1996 158,092 0 0 0 0 0 $1,445
Secretary
Mark C. Williamson(3)....395
Energy Services 1995 $141,580141,396 0 184 6,350 0 0 $6,350354
Terry A. Hanson(4).... 1997 $122,416 0 $ 0 $ 0 0 0 $ 354
Senior5,089
Vice President- 1994 $116,2301996 114,068 0 0 0 0 0 $ 291
Energy Services 1993 $ 95,4683,836
Finance 1995 106,480 0 119 6,350 0 0 0 0 0 $ 239
Robert E. Domek(4)....... 1995 $126,930 0 0 $6,350 0 0 $1,393
Executive Vice
President 1994 $112,255 0 0 0 0 0 $1,268
1993 $ 93,884 0 0 0 0 0 $1,238
Burnett F. Adams(5)...... 1995 $127,665 0 0 $6,350 0 0 $ 956
Former Vice President- 1994 $107,074 0 0 0 0 0 $ 802
Procurement and 1993 $ 94,265 0 0 0 0 0 $ 707
Division Operations1,994
- -------------------------
(1) President and Chief Operating OfficerSenior Vice President-Human Resources until JanuaryMay 1, 1994,1995, when he assumedwas
promoted to Executive Vice President. He was elected President of Great
Lakes Energy Corp. (GLENCO) and Vice Chairman of American Energy Management,
Inc. (AEM), in May of 1996. GLENCO and AEM were subsidiaries of the duties of Chief Executive Officer. Promoted to Chairman, President and
Chief Executive Officer on May 9, 1994.Company.
(2) Vice President-Administration and Secretary until May 1, 1995, when he was
promoted to Senior Vice President-Administration and Secretary.
(3) Assistant Vice President-Energy Services until May 1, 1993, when he was
promoted to Vice President-Energy Services. Promoted to Senior Vice
President-Energy Services on May 1, 1995.
(4) Vice President-Human Resources until May 1, 1993,1995, when he was promoted to
Senior Vice President-Human Resources. Promoted to Executive Vice President
on MayPresident-Energy Services.
(4) Treasurer until October 1, 1995.
(5) Assistant Vice President-Procurement and Division Operations until June 1,
1994,1996, when he was promoted to Vice President-ProcurementPresident and
Division
Operations. Mr. Adams resigned asTreasurer. Promoted to Vice President-Procurement and Division
Operations effective January 31, 1996.
(6) The amounts in the table reflect the market valuePresident-Finance on the date of grant of
restricted stock awarded under restricted stock award agreements. The number
of shares of restricted stock held by each executive officer named in the
table is 300, and the market value of such shares as of December 31, 1995,
was $7,000 (each as adjustedNovember 1, 1997.
(5) Amounts for the 3 for 2 stock split paid on February
20, 1996). The restricted stock vests for each named executive who remains
employed until February 16, 1997. Holders of shares of restricted stock are
entitled to receive dividends on such shares at the same rate and at the
same time as on the Common Stock.
(7) Allall other compensation for 1995 amounts1997 are Company contributions to a
401(k) defined contribution plan.
10plan and pay for unused vacation. The 401(k)
Company contribution for 1997 was $3,550 for Mr. Mebane, $2,879 for Mr.
Domek, $2,997 for Mr. Wolter, $3,114 for Mr. Williamson, and $2,804 for Mr.
Hanson; the residual for each person in 1997 was pay for unused vacation.
7
1511
REPORT ON EXECUTIVE COMPENSATION
CORPORATE MISSION
The mission of Madison Gas and Electric Company is to provide quality gas
and electric utility service to its customers at competitive rates; to meet all
customers'customers= gas, electric, and related energy needs; and to earn a reasonable
return for investors. MGE is committed to maintaining the highest standards of
corporate citizenship and fair treatment for all employees.
COMPENSATION PHILOSOPHY
The principal goal of the Madison Gas and Electric Company compensation
program is to pay employees, including executive officers, at levels which are:
- reflective of how well the Company is achieving its corporate mission
- consistent with the Company's current financial condition, earnings,
rates, total shareholder return, and projected Consumer Price Index
- reflective of individual performance and experience
- competitive in the marketplace
- administered in a fair and consistent manner.
The 1995 compensation program for executives was comprised of base salary,
plus a restricted stock award of 200 shares of MGE Common Stock. The 200 shares
of restricted Common Stock were awarded to all officers in February of 1995 in
recognition of 1994 record earnings. Executive salaries are established within a salary range that reflects
competitive salary levels for similar positions in similar-sized gas and
electric utilities and other Wisconsin utilities. The utilities used for salary
comparison are not the same companies included in the performance graph peer
group in this Proxy Statement. The Upper Midwest combination utilities included
in the performance graph peer group were selected to reflect utilities facing
similar weather and economic conditions. Many of these companies are larger than
MGE with much higher compensation structures. When examining compensation peer
groups, it was determined more appropriate to consider similar-sized utilities
and other Wisconsin utilities.
The midpoint (or middle) of an executive's salary range is approximately
equal to the median salary level of the surveyed utilities. An executive's
position in the range reflects his or her performance over a period of years in
that position, the executive's experience in that position, and Company
performance.
Specific individual or Company performance targets are not set. Instead, an
executive'sexecutive=s salary within the salary range is determined by subjectively
evaluating the individual'sindividual=s performance and experience and the Company's
performance.
11
16
While MGE's current compensation program has functional adequacy to retain
and fairly compensate the Company's executives, the Compensation Committee and
the full Board review the objectives of the executive compensation program on a
continuing basis. Each year, the Compensation Committee reviews and recommends
to the Board annual salaries, salary grades and ranges, and the overall salary
program design for the Company's executives.
8
12
EXECUTIVE COMPENSATION
Company performance factors such as earnings, rates, shareholder return,
and other available financial criteria were used in determining the CEO's and
other executive officers' positions in his or her salary range. Other criteria
such as gas and electric reliability and responsiveness to industry change were
also examined.
In 1997, MGE earned above the return on equity authorized by the Public
Service Commission of Wisconsin. This was achieved despite lower sales because
of mild weather and substantial additional expenses because of the outage of the
Kewaunee Nuclear Power Plant. Additionally, the Company has taken a leadership
role in industry restructuring and merger policy.
A study was performed for the Company in 19951996 by a compensation consultant.
The study compared the pay levelslevel of key MGE executives to pay levels of general
industry and pay levels of other utilities with revenues of approximately $250
million. ThisThe study showed that pay levels for MGE executives were generally
below the median of salary and incentive compensation for both general industry
and similar-sized utilities. Salary adjustments were made to movewhich moved Company
executives closer to the market median for their positions and to reflectpositions. In 1997, the Company's performance as discussed
below.
COMPANY PERFORMANCE AND EXECUTIVE COMPENSATION
Company performance factors such as earnings, rates, shareholder return,
and other financial criteria are used in determining the CEO's and other
executive officers' positions in his or her salary range as described above.
Company performance in 1995 continued to be strong. MGE achieved earnings
of $2.23 per share. Total shareholder return exceeded MGE's peer group of
utilities for the five-year period ended December 31, 1995. During 1995, the
Company also held its electric rates and natural gas rates constant. The CEO's
annual salary was increased to $260,340 to reflect these recent accomplishments.
Mr. Mebane, as well as all other MGE officers, received the award of 200 shares
of restricted stock in recognition of 1994 record earnings.set at $292,992. The CEO's total 1995 compensation remains below
the market total compensation for both general industry and similar-sized
utilities identified in the compensation study.
Richard E. Blaney
Robert M. Bolz
Frederic E. Mohs
12Phillip C. Stark
9
1713
COMPANY PERFORMANCE
The following graph shows a five-year comparison of cumulative total
returns for the Company, S&P 500, and a Peer Group Index weighted according to
each company's market capitalization as of the beginning of each annual period.
MADISON GAS AND ELECTRIC COMPANY
FINANCIAL PERFORMANCE
CUMULATIVE FIVE-YEAR TOTAL RETURN* COMPARISON
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) MGE S&P 500 PEER GROUP
1990 100 100 100
1991 147 130 127
1992 165 140 135
1993 181 155 153
1994 184 157 145
1995 210 215 189
[PERFORMANCE GRAPH]
Assumes $100 invested on December 31, 1990,1992, in each of the Company's Common
Stock, S&P 500, and the Peer Group
*Total return assumes reinvestment of dividends
--------------------------------
S&P PEER
MGE 500 GROUP
--------------------------------
1990------------------------------
1992 $100 $100 $100
1991 $147 $130 $127
1992 $1651993 $110 $110 $113
1994 $112 $112 $107
1995 $128 $153 $140
$135
1993 $181 $155 $153
1994 $184 $1571996 $117 $189 $145
1995 $210 $215 $1891997 $141 $252 $187
1310
1814
The Peer Group selected by the Company is composed of the following Upper
Midwest combination utilities:
Cilcorp Inc. ***MidWest Resources
Cinergy Corp. Minnesota Power & Light
Cipsco Inc.Cinergy Corp. Nipsco Industries Inc.
Cipsco Inc. Northern States Power-MN
CMS Energy Corp. Northern States Power-MN
DPL Inc. ****SIGCorp. Inc.
IES IndustriesDPL Inc. St. Joseph Light & Power
Illinova Corp.IES Industries Inc. Utilicorp United Inc.
Illinova Corp. Wisconsin Energy Corp.
Interstate Power Co. Wisconsin Energy Corp.WPL Holdings Inc.
*Iowa-Illinois Gas & Elec. WPL Holdings Inc.WPS Resources Corp.
**MidAmericanMidAmerica Energy
Co. WPS Resources Corp.
Holding Note: Data accumulated by S&P
Compustat Services
* Consolidated
*Merged with MidWestMidwest Resources intoon 7/17/95
**Name change from MidAmerican Energy Co.
** Consolidation11
15
MADISON GAS AND ELECTRIC COMPANY
FINANCIAL PERFORMANCE
MGE VERSUS WISCONSIN PEER GROUP
Note: This graph is for comparison purposes only. It is to show how the
Company's Five-Year Total Return compares to the other Wisconsin utilities.
[PERFORMANCE GRAPH]
Assumes $100 invested on December 31, 1992, in each of Iowa-Illinois Gas & Electricthe Company's Common
Stock and MidWestthe
Wisconsin Utility Peer Group Average
Wisconsin Peer Group average is weighted based on market capitalization at the
beginning of the year
Total return assumes reinvestment of dividends
-----------------------
WISCONSIN
MGE PEER
GROUP
-----------------------
1992 $100 $100
1993 $110 $108
1994 $112 $102
1995 $128 $128
1996 $117 $119
1997 $141 $140
Wisconsin Peer Group: Wisconsin Energy Corp.
WPL Holdings Inc.
WPS Resources *** Consolidated with Iowa-Illinois Gas & Electric into MidAmerican Energy Co.
**** Name change from Southern Indiana Gas & ElectricCorp.
12
16
PENSION PLAN AND SUPPLEMENTAL RETIREMENT PLAN
The Company has a noncontributory qualified defined benefit Pension Plan
covering its salaried employees. The amount of pension is based uponon years of
service and final 60-month average earnings prior to retirement.
The following table indicates the estimated maximum retirement benefits
payable (unreduced for survivor protection) at the normal retirement age of 65
for specified compensation and years of service classifications. Substantially
all compensation shown in the salary column of the summary compensation table is
included in compensation under the Pension Plan, subject to any statutory
regulations imposed by the Internal Revenue Code. Information in this table is
based on the Pension Plan formula for years of service credit earned in 1986 and
subsequent years. The retirement benefits are not subject to any reduction for
Social Security benefits received by the employees or for any other offset
amounts.
14
19
PENSION PLAN TABLE (1)TABLE(1)
ANNUAL PENSION AT NORMAL RETIREMENT AGE OF 65
AFTER YEARS OF SERVICE INDICATEINDICATED BELOW(2)
-------------------------------------------
25---------------------------------------------
FINAL FIVE-YEAR 10 15 2025 YEARS
AVERAGE ANNUAL SALARY 10 YEARS 15 YEARS 20 YEARS OR MORE
--------------------------------- ------- ------- ------- -------- --------------------- -------- -------- -------- --------
$100,000.........................$100,000.............. $12,500 $18,750 $25,000 $31,250
$125,000.........................$125,000.............. $15,625 $23,438 $31,250 $39,063
$150,000......................... $18,750 $28,125 $37,500 $46,875$160,000.............. $20,000 $30,000 $40,000 $50,000
- -------------------------
(1) The retirement benefits reflect limits imposed by the Internal Revenue Code
on benefit amounts and covered compensation.
(2) The Pension Plan Table does not reflect service credit prior to 1986 when
the Pension Plan required employee contributions. The normal retirement
pension for employees with service credits prior to 1986 will exceed the
amounts shown in the Pension Plan Table, depending on their years of pre-
1986 service and contributions made to the Pension Plan.
The estimated annual retirement benefit payable at normal retirement age of
65 under the Pension Plan formula (assuming continuation of 19951997 compensation
levels through retirement and taking into account employee contributions and
service credits for 1985 and prior years) is $53,184$56,176 to Mr. Mebane, $46,047$44,586 to
Mr. Wolter, and $46,316$50,943 to Mr. Williamson. The estimated annual retirement
benefit payableWilliamson, and $45,371 to Mr. Adams at normal retirement age of 65 under the Pension
Plan formula is $15,151.Hanson. At December
31, 1995,1997, the estimated annual retirement benefit payable to Mr. Domek was $40,019.is $48,680.
The full credited years of service under the Pension Plan are 1921 for Mr.
Mebane, 14 for Mr. Wolter, 12 for Mr. Wolter, 10Williamson, 16 for Mr. Williamson,Hanson, and 25 for
Mr. Domek.
Officers of the Company are also covered under a nonqualified supplemental
retirement plan which provides a supplemental retirement benefit. The
supplemental retirement benefit is a designated percentage ranging from 55 to 70
percent of the final 60-month average earnings less the benefit payable from the
Pension Plan described above. The designated percentage is based on the
officer's age at retirement. The estimated supplemental annual retirement
benefit payable at normal retirement age of 65 under the supplemental retirement
plan (assuming continuation of 19951997 compensation levels through retirement) is
$125,739$134,698 to Mr. Mebane, $59,952$83,086 to Mr. Wolter, and $57,432$75,729 to Mr. Williamson.
The estimated annual supplemental retirement benefit payableWilliamson, and
$42,871 to Mr. Adams at
normal retirement age of 65 under the supplemental retirement plan is $52,574.Hanson. At December 31, 1995,1997, the estimated annual supplemental retirement
benefit payable to Mr. Domek was $30,497.
15$55,090.
13
2017
DEFERRED COMPENSATION PLAN
Officers of the Company are permitted to defer a portion of their current
salary under a nonqualified deferred compensation plan initiated in 1984. TwoThree
officers contributed to the plan during 1995.1997. Participants in the plan are
entitled to receive deferred compensation upon termination of active employment.
Deferred compensation under this plan does not constitute compensation as
defined under the Pension Plan described above.
The Company has entered into a trust agreement for the purpose of assuring
the payment of the Company's obligations under the supplemental retirement plan
and deferred compensation plan. Under the trust agreement, in the event of a
change in control or potential change in control of the Company, the Company
will be obligated to deliver to the trustee cash or marketable securities having
a value equal to the present value of the amounts which the Company is obligated
to pay under such plans and the costs of maintaining the trust. "Change in
control" is defined generally as the acquisition by any person, subject to
certain exceptions, of beneficial ownership of 20 percent or more of the Common
Stock; a change in the majority of the Board of Directors; certain mergers or
similar transactions involving the Company's assets where, among other
conditions, the current shareholders do not constitute at least 60 percent of
the shareholders of the resulting or acquiring entity; or a liquidation of the
Company.
SEVERANCE PLANS
The Company has entered into severance agreements with certain key
employees, including Messrs. Mebane, Wolter, Williamson, and Domek.Hanson. Under these
agreements, each such employee is entitled to a severance payment following a
change in control of the Company as defined above if, within 24 months after
such change in control, employment with the Company is terminated by (i) the
Company, (ii) the employee for good reason, or (iii) the employee for any reason
during the 30-day period commencing one year after the date of change in
control. Each agreement has a three-year initial term, but on the first
anniversary of execution and each anniversary thereafter, the agreement is
extended for an additional year, unless either the Company or the employee gives
notice not to extend the agreement or a change in control of the Company has
occurred. Severance payments will be equal to three times the employee's annual
base salary plus three times the highest bonus paid during any of the five years
preceding a change in control. If the employee receives severance benefits
following a change in control, health, life, and disability benefits are
continued for up to three years, and the employee will also be grossed up for
any excise taxes the employee may incur. In circumstances not involving a change
in control of the Company, Messrs. Mebane, Wolter, Williamson, and Domek,Hanson, like
other salaried employees, are entitled under the Company's general severance
plan to a payment equal to two weeks of compensation plus the employee's weekly
compensation multiplied by the number of years of employment, not exceeding 24.
16
21
SOLICITATION OF PROXIES
The cost of soliciting proxies will be borne by the Company. In addition to
solicitation by mail, directors, officers, and employees of the Company may
solicit proxies from the shareholders of the Company personally or by telephone.
The Company has retained Morrow & Co., Inc., to aid in the solicitation of
proxies at a fee of $6,000 plus expenses.
14
18
RECEIPT OF SHAREHOLDERS' PROPOSALS AND
DIRECTOR NOMINATIONS FOR NEXT ANNUAL MEETING
In order to be considered for inclusion in the Company's proxy materials
for the 19971999 Annual Meeting of Shareholders, any shareholders' proposals must be
received at the Company's principal executive offices at 133 South Blair Street,
Post Office Box 1231, Madison, Wisconsin 53701-1231, no later than November 26,
1996.23,
1998.
Shareholder nominations for Class III directors to be elected at the 19971999
Annual Meeting of Shareholders must be submitted in the manner described in
Election of Directors above not less than 14 days nor more than 60 days prior to
the 19971999 Annual Meeting.
OTHER MATTERS
The Company's Annual Report for the year 19951997 has been mailed to
shareholders.
The management has no knowledge of any other matters to be brought before
the Annual Meeting. If, however, any other matters properly come before the
Annual Meeting, it is the intention of the persons named in the proxy to vote
the proxies in accordance with their judgment on such matters.
The Board of Directors has selected Coopers & Lybrand L.L.P. to audit the
consolidated financial statements of the Company and its subsidiaries for 1996.1998.
Coopers & Lybrand L.L.P., the Company's independent public accountant in 1995,1997,
is expected to have a representative present at the meeting who may make a
statement and will be available to respond to appropriate questions.
Madison Gas and Electric Company
DAVID C. MEBANE
DAVID C. MEBANE
Chairman of the Board, President,
and Chief Executive Officer
Dated March 26, 1996
1723, 1998
15
22
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF19
MADISON GAS AND ELECTRIC COMPANY
The undersigned Common Stock shareholderPOST OFFICE BOX 1231
MADISON, WISCONSIN 53701-1231
[MG&E LOGO]
This proxy is solicited on behalf of MADISON GAS AND
ELECTRIC COMPANY hereby appoints RICHARD E. BLANEY, DAVID C. MEBANE,
AND FRANK C. VONDRASEK,the Board of Directors of Madison Gas and
each of them, as proxies with power of
substitution (to act by a majority of such of them as shall be
present) to represent and to vote all shares of stock the undersigned
would be entitled to vote at theElectric Company. MGE's Annual Meeting of Shareholders towill be held at the Holiday Inn -- Madison West, 1313 John Q. Hammons Drive,
Greenway Center, Middleton, Wisconsin, on Monday, May 6, 1996, at 11:00
a.m., local time, and at all adjournments thereof:
(1) The election of members of Class I of the Board of Directors as
providedon Tuesday, May 5, 1998, in the Company's Proxy Statement:Exhibition Hall at the Dane
County Exposition Center, 1919 Expo Way, Madison, Wisconsin (see map on back).
YOUR VOTE IS IMPORTANT. PLEASE SIGN AND DATE THE ATTACHED PROXY PROMPTLY AND
MAIL IT BACK TO US EVEN IF YOU PLAN TO ATTEND THE MEETING. If you do plan on
attending the meeting, be sure to complete and return the bottom two-thirds of
this form in the enclosed envelope.
Fold and Detach Here Fold and Detach Here
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
PLEASE
SIGN
AND
RETURN.
MADISON GAS AND ELECTRIC COMPANY PROXY
ITEM 1: Election of Directors: Class III Nominees: Richard E.
Blaney, Frederic E. Mohs, and Phillip C. Stark
/ /[ ] FOR [ ] WITHHOLD
all nominees listed belowabove authority to vote for all
(except as marked to the contrary below)
/ / FOR all nominees listed
below / / WITHHOLD AUTHORITY to vote for all nominees listed
(except as marked to the contrary below) below
Class I (3 years) -- J. Biddick, D. Mebane, and R. Millner (to(Instructions: To withhold
authority to vote for any
individual nominee, write thethat
nominee's name in the space
provided below):
----------------------------------------------------------------------
(2) An amendment of Article Third, Division A, of the Company's
Restated Articles of Incorporation to (i) increase the number of
shares of Common Stock authorized for issuance by the Company from the
present 28,000,000 shares to 50,000,000 shares, and (2) reduce the par
value of Common Stock from $8.00 per share to $1.00 per share.
/ / For / / Against / / Abstain
(3)below.)
--------------------------------
ITEM 2: In their discretion upon such other business as may
properly come before the meeting.
THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS SPECIFIED
WITH RESPECT TO PROPOSALSTHE MATTER DESIGNATED IN THE PROPOSAL NUMBERED
(1) AND (2). IF NO SPECIFICATION IS MADE, THE SHARES WILL BE VOTED "FOR""FOR
ALL NOMINEES AND "FOR" THE
PROPOSAL TO AMEND THE COMPANY'S RESTATED ARTICLES OF INCORPORATION.NOMINEES."
This proxy revokes any proxy heretofore given. --------------------------------------------------- , 1996
MONTH DAY
This proxy revokes any proxy heretofore given. ------------------------------------------------- (L.S.)
--------------------------------------------------- ---------------------------------------------, 19961998 ------------------------------------------------- (L.S.)
MONTH DAY Please sign exactly as name appears hereon. For
joint accounts, all tenants should sign. Executors,
Administrators, Trustees, etc., should so indicate
when signing.
(continued on reverse side)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
1998 ANNUAL SHAREHOLDERS MEETING RESERVATION
Please sign and return if you plan to
attend the Annual Meeting.
(If you do not plan to attend, please
leave blank.)
---------------------------------------
Shareholder(s)
---------------------------------------
---------------------------------------
Guest
20
MAP
PROXY
PROXY FOR ANNUAL MEETING OF SHAREHOLDERS -- MAY 5, 1998
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
[MG&E LOGO]
The undersigned Common Stock shareholder of MADISON GAS AND ELECTRIC
COMPANY hereby appoints DAVID C. MEBANE and FRANK C. VONDRASEK, or either
of them, as proxies with power of substitution, to represent and to vote
all shares of stock the undersigned would be entitled to vote, at the
Annual Meeting of Shareholders to be held in the Exhibition Hall at the
Dane County Exposition Center, 1919 Expo Way, Madison, Wisconsin, on
Tuesday, May 5, 1998, at 11:00 a.m., local time, and at all adjournments
thereof.
Shares represented by all properly executed proxies will be voted in
accordance with instructions appearing on the proxy. IN THE ABSENCE OF
SPECIFIC INSTRUCTIONS, PROXIES WILL BE VOTED IN ACCORDANCE WITH THE
RECOMMENDATIONS OF THE BOARD OF DIRECTORS, AND IN THE DISCRETION OF THE
PROXY HOLDERS AS TO ANY OTHER MATTERS THAT MAY PROPERLY COME BEFORE THE
ANNUAL MEETING.
PLEASE SIGN EXACTLY AS NAME(S) APPEAR ON THIS PROXY, AND DATE THIS PROXY.
IF JOINT ACCOUNT, EACH JOINT OWNER SHOULD SIGN. IF SIGNING FOR A
CORPORATION OR PARTNERSHIP OR AS AGENT, ATTORNEY, OR FIDUCIARY, INDICATE
THE CAPACITY IN WHICH YOU ARE SIGNING.