Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Document And Entity Information [Line Items] | ||
Entity Registrant Name | MGE Energy, Inc. | |
Entity Central Index Key | 0001161728 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2021 | |
Amendment Flag | false | |
Trading Symbol | MGEE | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock Shares Outstanding | 36,163,370 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Security Exchange Name | NASDAQ | |
Security 12(b) Title | Common Stock, $1 Par Value Per Share | |
Entity Tax Identification Number | 39-2040501 | |
Entity File Number | 000-49965 | |
Entity Incorporation State Country Code | WI | |
Entity Address Address Line 1 | 133 South Blair Street | |
EntityAddressCityOrTown | Madison | |
Entity Address State Or Province | WI | |
Entity Address Postal Zip Code | 53788 | |
City Area Code | 608 | |
Local Phone Number | 252-7000 | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
MGE [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Registrant Name | Madison Gas and Electric Company | |
Entity Central Index Key | 0000061339 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock Shares Outstanding | 17,347,894 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Tax Identification Number | 39-0444025 | |
Entity File Number | 000-1125 | |
Entity Incorporation State Country Code | WI | |
Entity Address Address Line 1 | 133 South Blair Street | |
EntityAddressCityOrTown | Madison | |
Entity Address State Or Province | WI | |
Entity Address Postal Zip Code | 53788 | |
City Area Code | 608 | |
Local Phone Number | 252-7000 | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Revenues: | ||||
Electric revenues | $ 121,853 | $ 116,568 | $ 324,574 | $ 303,556 |
Gas revenue | 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 (expense) 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 benefit (provision) | (2,766) | (7,300) | (4,106) | (16,053) |
Net Income Including Noncontrolling Interest | 34,917 | 31,794 | 92,701 | 76,622 |
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 |
Earnings per share of Common Stock - 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 Number Of Shares Outstanding Basic | 36,163 | 36,163 | 36,163 | 35,427 |
Weighted Average Shares Outstanding - Diluted | 36,170 | 36,163 | 36,176 | 35,427 |
MGE [Member] | ||||
Operating Revenues: | ||||
Electric revenues | $ 121,853 | $ 116,568 | $ 324,574 | $ 303,556 |
Gas revenue | 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 | 48,315 | 45,591 | 143,978 | 135,634 |
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 | 108,096 | 96,658 | 343,888 | 310,062 |
Operating Income | 37,777 | 38,553 | 100,630 | 92,062 |
Other (expense) income, net | 3,306 | 4,093 | 6,375 | 11,005 |
Interest expense, net | (6,089) | (5,802) | (17,623) | (17,848) |
Income before income taxes | 34,994 | 36,844 | 89,382 | 85,219 |
Income tax benefit (provision) | (1,993) | (6,611) | (1,853) | (14,028) |
Net Income Including Noncontrolling Interest | 33,001 | 30,233 | 87,529 | 71,191 |
Less Net Income Attributable to Noncontrolling Interest, net of tax | (5,627) | (5,493) | (16,755) | (16,754) |
Net Income | $ 27,374 | $ 24,740 | $ 70,774 | $ 54,437 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 70,454 | $ 44,738 |
Accounts receivable, less reserves | 43,162 | 41,384 |
Other accounts receivables, less reserves | 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 |
Current Liabilities: | ||
Long-term debt due within one year | 4,859 | 4,771 |
Short-term debt | 0 | 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 | 0 | 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 |
MGE [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 57,003 | 4,103 |
Accounts receivable, less reserves | 43,162 | 41,384 |
Affiliate receivables | 532 | 532 |
Other accounts receivables, less reserves | 12,947 | 7,295 |
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 | 13,210 | 14,848 |
Regulatory assets - current | 8,060 | 14,748 |
Other current assets | 12,884 | 11,326 |
Total Current Assets | 221,298 | 169,012 |
Affiliate receivable long-term | 1,721 | 2,118 |
Regulatory assets | 135,603 | 142,504 |
Pension benefit asset | 25,594 | 13,873 |
Other deferred assets and other | 27,839 | 22,448 |
Property, Plant, and Equipment: | ||
Property, plant, and equipment, net | 1,743,475 | 1,630,314 |
Construction work in progress | 103,919 | 139,099 |
Total Property, Plant, and Equipment | 1,847,394 | 1,769,413 |
Investments | 244 | 603 |
Total Assets | 2,259,693 | 2,119,971 |
Current Liabilities: | ||
Long-term debt due within one year | 4,859 | 4,771 |
Short-term debt | 0 | 52,500 |
Accounts payable | 57,404 | 54,576 |
Accrued interest and taxes | 7,723 | 10,405 |
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 | 6,042 |
Total Current Liabilities | 123,470 | 192,753 |
Other Credits: | ||
Deferred income taxes | 210,071 | 200,390 |
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 | 0 | 3,980 |
Finance lease liabilities | 17,828 | 17,532 |
Other deferred liabilities and other | 86,927 | 72,173 |
Total Other Credits | 572,271 | 536,303 |
Capitalization: | ||
Common shareholders equity | 801,190 | 730,416 |
Noncontrolling interest | 147,451 | 141,196 |
Total Equity | 948,641 | 871,612 |
Long-term debt | 615,311 | 519,303 |
Total Capitalization | 1,563,952 | 1,390,915 |
Commitments and contingencies (see Footnote 8) | ||
Total Liabilities and Capitalization | $ 2,259,693 | $ 2,119,971 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Receivables, Net | ||
Reserve for uncollectible accounts receivable | $ 4,937 | $ 5,787 |
Reserve for uncollectible other accounts receivable | 1,257 | 1,290 |
MGE [Member] | ||
Receivables, Net | ||
Reserve for uncollectible accounts receivable | 4,937 | 5,787 |
Reserve for uncollectible other accounts receivable | $ 1,257 | $ 1,290 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 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 | 0 | 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) | 0 |
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 |
Significant noncash investing activities: | ||
Accrued capital expenditures | 8,213 | 23,594 |
MGE [Member] | ||
Operating Activities: | ||
Net Income | 87,529 | 71,191 |
Items not affecting cash: | ||
Depreciation and amortization | 55,968 | 55,193 |
Deferred income taxes | 1,375 | 7,334 |
Provision for doubtful receivables | 1,163 | 1,078 |
Employee benefit plan cost (credit) | (935) | (2,813) |
Other items | (864) | 1,234 |
Changes in working capital items: | ||
(Increase) decrease in current assets | (11,777) | 3,352 |
Increase (decrease) in current liabilities | 2,528 | (5,212) |
Cash contributions to pension and other postretirement plans | (4,823) | (4,576) |
Other noncurrent items, net | 3,559 | 5,090 |
Cash Provided by Operating Activities | 135,451 | 131,871 |
Investing Activities: | ||
Capital expenditures | (114,142) | (139,055) |
Other | (1,449) | (1,512) |
Cash Used for Investing Activities | (115,591) | (140,567) |
Financing Activities: | ||
Distributions to parent from noncontrolling interest | (10,500) | (16,000) |
Capital contributions from parent | 0 | 30,000 |
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) | 0 |
Other | (1,503) | (1,144) |
Cash Provided by Financing Activities | 31,930 | 9,372 |
Change in cash, cash equivalents, and restricted cash | 51,790 | 676 |
Cash, cash equivalents, and restricted cash at beginning of period | 6,404 | 5,529 |
Cash, cash equivalents, and restricted cash at end of period | 58,194 | 6,205 |
Significant noncash investing activities: | ||
Accrued capital expenditures | $ 8,213 | $ 23,594 |
MGE Energy Inc Consolidated Sta
MGE Energy Inc Consolidated Statements of Common Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] |
Beginning balance, shares at Dec. 31, 2019 | 34,668 | ||||
Beginning balance, value at Dec. 31, 2019 | $ 855,676 | $ 34,668 | $ 316,268 | $ 504,740 | $ 0 |
Increase (Decrease) In Stockholders' Equity [Roll Forward] | |||||
Net Income | 76,622 | 76,622 | |||
Common stock dividends declared | $ (38,349) | (38,349) | |||
Common stock issued during period | 1,500 | 1,495 | |||
Issuance of common stock, net | $ 79,635 | $ 1,495 | 78,140 | ||
Ending balance, shares at Sep. 30, 2020 | 36,163 | ||||
Ending balance, value at Sep. 30, 2020 | 973,584 | $ 36,163 | 394,408 | 543,013 | 0 |
Beginning balance, shares at Jun. 30, 2020 | 36,163 | ||||
Beginning balance, value at Jun. 30, 2020 | 955,171 | $ 36,163 | 394,408 | 524,600 | 0 |
Increase (Decrease) In Stockholders' Equity [Roll Forward] | |||||
Net Income | 31,794 | 31,794 | |||
Common stock dividends declared | (13,381) | (13,381) | |||
Ending balance, shares at Sep. 30, 2020 | 36,163 | ||||
Ending balance, value at Sep. 30, 2020 | 973,584 | $ 36,163 | 394,408 | 543,013 | 0 |
Beginning balance, shares at Dec. 31, 2020 | 36,163 | ||||
Beginning balance, value at Dec. 31, 2020 | 976,000 | $ 36,163 | 394,408 | 545,429 | 0 |
Increase (Decrease) In Stockholders' Equity [Roll Forward] | |||||
Net Income | 92,701 | 92,701 | |||
Common stock dividends declared | (40,774) | (40,774) | |||
Issuance of common stock, net | 0 | ||||
Equity-based compensation plans and other | 358 | 358 | |||
Ending balance, shares at Sep. 30, 2021 | 36,163 | ||||
Ending balance, value at Sep. 30, 2021 | 1,028,285 | $ 36,163 | 394,766 | 597,356 | 0 |
Beginning balance, shares at Jun. 30, 2021 | 36,163 | ||||
Beginning balance, value at Jun. 30, 2021 | 1,007,301 | $ 36,163 | 394,686 | 576,452 | 0 |
Increase (Decrease) In Stockholders' Equity [Roll Forward] | |||||
Net Income | 34,917 | 34,917 | |||
Common stock dividends declared | (14,013) | (14,013) | |||
Equity-based compensation plans and other | 80 | 80 | |||
Ending balance, shares at Sep. 30, 2021 | 36,163 | ||||
Ending balance, value at Sep. 30, 2021 | $ 1,028,285 | $ 36,163 | $ 394,766 | $ 597,356 | $ 0 |
Madison Gas and Electric Compan
Madison Gas and Electric Company Consolidated Statements of Common Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | MGE [Member] | Common Stock [Member] | Common Stock [Member]MGE [Member] | Additional Paid-In Capital [Member]MGE [Member] | Retained Earnings [Member]MGE [Member] | Accumulated Other Comprehensive Income/(Loss) [Member]MGE [Member] | Noncontrolling Interest [Member]MGE [Member] |
Beginning balance, shares at Dec. 31, 2019 | 34,668 | 17,348 | ||||||
Beginning balance, value at Dec. 31, 2019 | $ 777,589 | $ 17,348 | $ 222,917 | $ 397,021 | $ 0 | $ 140,303 | ||
Increase (Decrease) In Stockholders' Equity [Roll Forward] | ||||||||
Net Income | $ 76,622 | 71,191 | 54,437 | 16,754 | ||||
Capital contributions from parent | 30,000 | 30,000 | ||||||
Distributions to parent from noncontrolling interest | (16,000) | (16,000) | ||||||
Ending balance, shares at Sep. 30, 2020 | 36,163 | 17,348 | ||||||
Ending balance, value at Sep. 30, 2020 | 862,780 | $ 17,348 | 252,917 | 451,458 | 0 | 141,057 | ||
Beginning balance, shares at Jun. 30, 2020 | 36,163 | 17,348 | ||||||
Beginning balance, value at Jun. 30, 2020 | 840,047 | $ 17,348 | 252,917 | 426,718 | 0 | 143,064 | ||
Increase (Decrease) In Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 31,794 | 30,233 | 24,740 | 5,493 | ||||
Distributions to parent from noncontrolling interest | (7,500) | (7,500) | ||||||
Ending balance, shares at Sep. 30, 2020 | 36,163 | 17,348 | ||||||
Ending balance, value at Sep. 30, 2020 | 862,780 | $ 17,348 | 252,917 | 451,458 | 0 | 141,057 | ||
Beginning balance, shares at Dec. 31, 2020 | 36,163 | 17,348 | ||||||
Beginning balance, value at Dec. 31, 2020 | 871,612 | $ 17,348 | 252,917 | 460,151 | 0 | 141,196 | ||
Increase (Decrease) In Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 92,701 | 87,529 | 70,774 | 16,755 | ||||
Capital contributions from parent | 0 | |||||||
Distributions to parent from noncontrolling interest | (10,500) | (10,500) | ||||||
Ending balance, shares at Sep. 30, 2021 | 36,163 | 17,348 | ||||||
Ending balance, value at Sep. 30, 2021 | 948,641 | $ 17,348 | 252,917 | 530,925 | 0 | 147,451 | ||
Beginning balance, shares at Jun. 30, 2021 | 36,163 | 17,348 | ||||||
Beginning balance, value at Jun. 30, 2021 | 918,640 | $ 17,348 | 252,917 | 503,551 | 0 | 144,824 | ||
Increase (Decrease) In Stockholders' Equity [Roll Forward] | ||||||||
Net Income | $ 34,917 | 33,001 | 27,374 | 5,627 | ||||
Distributions to parent from noncontrolling interest | (3,000) | (3,000) | ||||||
Ending balance, shares at Sep. 30, 2021 | 36,163 | 17,348 | ||||||
Ending balance, value at Sep. 30, 2021 | $ 948,641 | $ 17,348 | $ 252,917 | $ 530,925 | $ 0 | $ 147,451 |
Consolidated Statements of Comm
Consolidated Statements of Common Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Dividends per share of common stock | $ 0.388 | $ 0.370 | $ 1.128 | $ 1.075 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Principles | Summary of Significa nt Accounting Policies – MGE Energy and MGE. a. Basis of Presentation. This report is a combined report of MGE Energy and MGE. References in this report to "MGE Energy" are to MGE Energy, Inc. and its subsidiaries. References in this report to "MGE" are to Madison Gas and Electric Company. MGE Power Elm Road and MGE Power West Campus own electric generating assets and lease those assets to MGE. Both entities are variable interest entities under applicable authoritative accounting guidance. MGE is considered the primary beneficiary of these entities as a result of contractual agreements. As a result, MGE has consolidated MGE Power Elm Road and MGE Power West Campus. See Footnote 3 of Notes to Consolidated Financial Statements under Item 8, Financial Statements and Supplementary Data, of MGE Energy's and MGE's 2020 Annual Report on Form 10-K (the 2020 Annual Report on Form 10-K). The accompanying consolidated financial statements as of September 30, 2021, and during the three and nine months ended, are unaudited but include all adjustments that MGE Energy and MGE management consider necessary for a fair statement of their respective financial statements. All adjustments are of a normal, recurring nature except as otherwise disclosed. The year-end consolidated balance sheet information was derived from the audited balance sheet appearing in the 2020 Annual Report on Form 10-K but does not include all disclosures required by accounting principles generally accepted in the United States of America. These notes should be read in conjunction with the financial statements and the notes on pages 62 through 115 of the 2020 Annual Report on Form 10-K. b. Cash, Cash Equivalents, and Restricted Cash. The following table presents the components of total cash, cash equivalents, and restricted cash on the consolidated balance sheets. MGE Energy MGE September 30, December 31, September 30, December 31, (In thousands) 2021 2020 2021 2020 Cash and cash equivalents $ 70,454 $ 44,738 $ 57,003 $ 4,103 Restricted cash 641 644 641 644 Receivable - margin account 550 1,657 550 1,657 Cash, cash equivalents, and restricted cash $ 71,645 $ 47,039 $ 58,194 $ 6,404 Cash Equivalents All highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Restricted Cash MGE has certain cash accounts that are restricted to uses other than current operations and designated for a specific purpose. MGE's restricted cash accounts include cash held by trustees for certain employee benefits and cash deposits held by third parties. These are included in "Other current assets" on the consolidated balance sheets. Receivable – Margin Account Cash amounts held by counterparties as margin collateral for certain financial transactions are recorded as Receivable – margin account in "Other current assets" on the consolidated balance sheets. The costs being hedged are fuel for electric generation, purchased power, and cost of gas sold. c. Property, Plant, and Equipment. Columbia. An asset that will be retired in the near future and substantially in advance of its previously expected retirement date is subject to abandonment accounting. In the second quarter of 2021, the operator of Columbia received approval from MISO to retire Columbia Units 1 and 2. The co-owners intend to retire Unit 1 by the end of 2023 and Unit 2 by the end of 2024. Final timing and retirement dates for Units 1 and 2 are subject to PSCW and regional reviews, including identification and approval of energy and capacity resources to replace Columbia. As of September 30, 2021, early retirement of Columbia was probable. The net book value of our ownership share of this generating unit was $ 161.6 million as of September 30, 2021 . This amount was classified as plant to be retired within "Property, plant, and equipment, net" on the consolidated balance sheets. Assets for Columbia Unit 1 and Unit 2 are currently included in rate base, and MGE continues to depreciate them on a straight-line basis using the composite depreciation rates approved by the PSCW that included retirement dates of 2029 for Unit 1 and 2038 for Unit 2. If it becomes probable that regulators will disallow full recovery or a return on the remaining net book value of a generating unit that is either abandoned or probable of being abandoned, an impairment loss would be required. An impairment loss would be recorded for the difference of the remaining net book value of the generating unit that is greater than the present value of the amount expected to be recovered from ratepayers. No impairment was recorded as of September 30, 2021 . |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2021 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounti ng Standards - MGE Energy and MGE. MGE Energy and MGE reviewed FASB authoritative guidance recently issued, none of which are expected to have a material impact on the consolidated results of operations, financial condition, or cash flows. |
Investment in ATC and ATC Holdc
Investment in ATC and ATC Holdco | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in ATC and ATC Holdco | Investme nt in ATC and ATC Holdco - MGE Energy and MGE. ATC owns and operates electric transmission facilities primarily in Wisconsin. MGE received an interest in ATC when it, like other Wisconsin electric utilities, contributed its electric transmission facilities to ATC as required by Wisconsin law. That interest is presently held by MGE Transco, a subsidiary of MGE Energy. ATC Holdco was formed by several members of ATC, including MGE Energy, to pursue electric transmission development and investments outside of Wisconsin. The ownership interest in ATC Holdco is held by MGEE Transco, a subsidiary of MGE Energy. MGE Transco and MGEE Transco have accounted for their investments in ATC and ATC Holdco, respectively, under the equity method of accounting. Equity earnings from investments are recorded as "Other income" on the consolidated statements of income of MGE Energy. MGE Transco recorded the following amounts related to its investment in ATC: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Equity earnings from investment in ATC $ 2,500 $ 2,319 $ 7,333 $ 7,724 Dividends from investments 1,942 2,349 5,842 6,620 Capital contributions to ATC — 359 — 892 ATC Holdco was formed in December 2016. ATC Holdco's transmission development activities have been suspended for the near term. ATC's summarized financial data is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Operating revenues $ 186,785 $ 187,833 $ 561,379 $ 577,705 Operating expenses ( 91,340 ) ( 92,975 ) ( 278,828 ) ( 285,697 ) Other income, net 123 643 1,164 1,924 Interest expense, net ( 28,674 ) ( 28,801 ) ( 86,337 ) ( 83,947 ) Earnings before members' income taxes $ 66,894 $ 66,700 $ 197,378 $ 209,985 MGE receives transmission and other related services from ATC. During the three and nine months ended September 30, 2021, MGE recorded $ 8.0 million and $ 24.0 million, respectively, for transmission services received compared to $ 7.7 million and $ 23.0 million for the comparable periods in 2020. MGE also provides a variety of operational, maintenance, and project management work for ATC, which is reimbursed by ATC. As of September 30, 2021, and December 31, 2020, MGE had a receivable due from ATC of $ 4.7 million and $ 2.6 million, respectively. The receivable is primarily related to Badger Hollow I and II. MGE is reimbursed for these costs after the new generation assets are placed into service. |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes - MGE E nergy and MGE. Effective Tax Rate. The consolidated income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before income taxes, as follows: MGE Energy MGE Three Months Ended September 30, 2021 2020 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.3 6.2 6.2 Amortized investment tax credits ( 1.2 ) ( 0.1 ) ( 1.3 ) ( 0.1 ) Credit for electricity from wind energy ( 4.8 ) ( 5.0 ) ( 5.2 ) ( 5.4 ) AFUDC equity, net ( 1.1 ) ( 1.1 ) ( 1.2 ) ( 1.2 ) Amortization of utility excess deferred tax - tax reform (a) ( 12.4 ) ( 2.0 ) ( 13.5 ) ( 2.2 ) Other, net, individually insignificant ( 0.4 ) ( 0.4 ) ( 0.3 ) ( 0.4 ) Effective income tax rate 7.3 % 18.7 % 5.7 % 17.9 % MGE Energy MGE Nine Months Ended September 30, 2021 2020 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.3 6.2 6.2 Amortized investment tax credits ( 1.4 ) ( 0.1 ) ( 1.5 ) ( 0.1 ) Credit for electricity from wind energy ( 6.0 ) ( 6.1 ) ( 6.6 ) ( 6.6 ) AFUDC equity, net ( 1.0 ) ( 1.3 ) ( 1.1 ) ( 1.4 ) Amortization of utility excess deferred tax - tax reform (a) ( 14.5 ) ( 2.4 ) ( 15.9 ) ( 2.6 ) Other, net, individually insignificant ( 0.1 ) ( 0.1 ) - - Effective income tax rate 4.2 % 17.3 % 2.1 % 16.5 % (a) Included are impacts of the 2017 Tax Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For the three months ended September 30, 2021 and 2020, MGE recognized $ 0.7 million. For the nine months ended September 30, 2021 and 2020, MGE recognized $ 2.0 million. Included in the 2021 rate settlement was a one-time return to customers of the electric portion of excess deferred taxes related to the 2017 Tax Act not restricted by IRS normalization rules. For the three and nine months ended September 30, 2021, MGE recognized $ 3.3 million and $ 9.9 million, respectively. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 9 Months Ended |
Sep. 30, 2021 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Plans | Pensi on and Other Postretirement Plans - MGE Energy and MGE. MGE maintains qualified and nonqualified pension plans, health care, and life insurance benefits and defined contribution 401(k) benefit plans for its employees and retirees. The components of net periodic benefit cost, other than the service cost component, are recorded in "Other income, net" on the consolidated statements of income. The service cost component is recorded in "Other operations and maintenance" on the consolidated statements of income. MGE has regulatory treatment and recognizes regulatory assets or liabilities for timing differences between when net periodic benefit costs are recovered and when costs are recognized. The following table presents the components of net periodic benefit costs recognized. Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Pension Benefits Components of net periodic benefit cost: Service cost $ 1,432 $ 1,324 $ 4,296 $ 3,972 Interest cost 2,280 3,052 6,840 9,157 Expected return on assets ( 7,372 ) ( 6,807 ) ( 22,115 ) ( 20,422 ) Amortization of: Prior service credit ( 31 ) ( 31 ) ( 93 ) ( 93 ) Actuarial loss 1,662 1,339 4,985 4,018 Net periodic benefit (credit) cost $ ( 2,029 ) $ ( 1,123 ) $ ( 6,087 ) $ ( 3,368 ) Postretirement Benefits Components of net periodic benefit cost: Service cost $ 362 $ 316 $ 1,086 $ 948 Interest cost 387 570 1,161 1,709 Expected return on assets ( 819 ) ( 789 ) ( 2,457 ) ( 2,366 ) Amortization of: Transition obligation 1 1 2 2 Prior service credit ( 379 ) ( 667 ) ( 1,138 ) ( 2,001 ) Actuarial loss 123 55 370 165 Net periodic benefit (credit) cost $ ( 325 ) $ ( 514 ) $ ( 976 ) $ ( 1,543 ) As approved by the PSCW, MGE is allowed to defer differences between actual employee benefit plan costs and costs reflected in current rates. The deferred costs may be recovered or refunded in MGE's next rate filing. During the three and nine months ended September 30, 2021, MGE recovered $ 0.3 million and $ 3.9 million of pension and other postretirement costs, respectively, compared to $ 0.2 million and $ 0.7 million for the comparable periods in 2020. The recovery of these costs reduced the amount previously deferred and has not been reflected in the table above. During the three and nine months ended September 30, 2021, MGE deferred $ 2.8 million and $ 5.4 million, respectively, of savings from 2021 employee benefit plan costs and recorded as a regulatory liability. The deferred savings has not been reflected in the table above. |
Equity and Financing Arrangemen
Equity and Financing Arrangements | 9 Months Ended |
Sep. 30, 2021 | |
Equity and Financing Arrangements Disclosure [Abstract] | |
Equity and Financing Arrangements | Equity and Fi nancing Arrangements. a. Common Stock - MGE Energy. MGE Energy sells shares of its common stock through its Direct Stock Purchase and Dividend Reinvestment Plan (the Stock Plan). Those shares may be newly issued shares or shares that are purchased in the open market by an independent agent for participants in the Stock Plan. All sales under the Stock Plan are covered by a shelf registration statement that MGE Energy filed with the SEC. During the three and nine months ended September 30, 2021 , MGE Energy issued no new shares of common stock under the Stock Plan. In May 2020, MGE Energy issued 1.5 million shares of its common stock in an underwritten offering. MGE Energy received proceeds, net of underwriter fees and issuance costs, of $ 79.6 million from the issuance and sale of those shares. The net proceeds are being used for general corporate purposes, including funding capital expenditures being made by MGE. b. Dilutive Shares Calculation - MGE Energy. As of September 30, 2021, 13,021 shares were included in the calculation of diluted earnings per share related to nonvested equity awards. See Footnote 7 for additional information on shared-based compensation awards. c. Long-term Debt - MGE Energy and MGE. In May 2021, MGE entered into a private placement Note Purchase Agreement in which it committed to issue $ 60 million of new long-term debt (Series A), carrying an interest rate of 2.48 % per annum over its 10 -year life, and $ 40 million of new long-term debt (Series B), carrying an interest rate of 2.63 % per annum over its 12 -year life. Funding occurred on June 15, 2021, for Series B and August 27, 2021, for Series A. The proceeds of the debt financing will be used to assist with capital expenditures and other corporate obligations. The covenants of this debt are substantially consistent with MGE's existing unsecured long-term debt. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based C ompensation - MGE Energy and MGE. During the three and nine months ended September 30, 2021, MGE recorded $ 0.3 million and $ 1.6 million, respectively, in compensation expense related to share-based compensation awards under the 2006 Performance Unit Plan, the 2020 Performance Unit Plan, the 2013 Director Incentive Plan, and the 2021 Long-Term Incentive Plan (2021 Plan) compared to $ 0.2 million and $ 0.3 million for the comparable periods in 2020. In January 2021, cash payments of $ 1.9 million were distributed related to awards that were granted in 2018, for the 2013 Director Incentive Plan, and in 2016, for the 2006 Performance Unit Plan. In February 2021, MGE issued 10,187 performance units and 16,267 restricted stock units under the 2021 Plan to eligible employees and non-employee directors. MGE recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Awards classified as equity awards are measured based on their grant-date fair value. Awards classified as liability awards are recorded at fair value each reporting period. The performance units can be paid out in either cash, shares of common stock or a combination of cash and stock and are classified as a liability award. The restricted stock units will be paid out in shares of common stock, and therefore are classified as equity awards. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitmen ts and Contingencies. a. Environmental - MGE Energy and MGE. In February 2021, MGE and the other co-owners of Columbia announced plans to retire that facility. The co-owners intend to retire Unit 1 by the end of 2023 and Unit 2 by the end of 2024. Final timing and retirement dates for Units 1 and 2 are subject to PSCW and regional regulatory reviews, including identification and approval of energy and capacity resources to replace Columbia. Effects of environmental compliance requirements discussed below will depend upon the final retirement dates approved and compliance requirement dates. MGE Energy and MGE are subject to frequently changing local, state, and federal regulations concerning air quality, water quality, land use, threatened and endangered species, hazardous materials handling, and solid waste disposal. These regulations affect the manner in which operations are conducted, the costs of operations, as well as capital and operating expenditures. Several of these environmental rules are subject to legal challenges, reconsideration and/or other uncertainties. Regulatory initiatives, proposed rules, and court challenges to adopted rules could have a material effect on capital expenditures and operating costs. Management believes compliance costs will be recovered in future rates based on previous treatment of environmental compliance projects. These initiatives, proposed rules, and court challenges include:  The EPA's promulgated water Effluent Limitations Guidelines (ELG) and standards for steam electric power plants which focus on the reduction of metals and other pollutants in wastewater from new and existing power plants. The standards were finalized in August 2020. In July 2021, the PSCW approved a Certificate of Authority (CA) application filed by MGE and the other owners of Columbia. The CA application commits to close Columbia's wet pond system to comply with the Coal Combustions Residuals (CCR) Rule as described in further detail in the CCR section below. By committing to close the wet pond system, Columbia will be in compliance with ELG requirements. The Elm Road Units must satisfy the rule's requirements no later than December 31, 2023, as determined by the permitting authority. The operator of the Elm Road Units has been evaluating the rule impacts and has conducted an analysis of compliance obligations, pollution prevention technologies, and their associated costs. In February 2021, MGE and the other co-owners of the Elm Road Units filed a CA application with the PSCW. If approved, MGE's share of the estimated costs to comply with the rule is estimated to be approximately $ 4 million. Subject to approval from the PSCW, construction is expected to begin in 2022.  The EPA's cooling water intake rules require cooling water intake structures at electric power plants to meet best technology available (BTA) standards to reduce the mortality from entrainment (drawing aquatic life into a plant's cooling system) and impingement (trapping aquatic life on screens). Blount's Wisconsin Pollution Discharge Elimination System permit assumes that the plant meets BTA for the duration of the permit, which expires in 2023. However, MGE must conduct studies of its Blount plant by the end of 2021 to help regulators determine BTA. Columbia's river intakes are subject to this rule. BTA improvements may not be required given that Columbia could be fully retired before the issuance of the next permit, which is expected to be issued in 2023 or later. MGE will continue to work with Columbia's operator to evaluate all regulatory requirements applicable to the planned retirements. MGE does not expect this rule to have a material effect on its existing plants.  Greenhouse Gas (GHG) reduction guidelines and approval criteria established under the Clean Air Act for states to use in developing plans to control GHG emissions from fossil fuel-fired electric generating units (EGUs), including existing and proposed regulations governing existing, new or modified fossil-fuel generating units. In January 2021, the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) vacated and remanded to the EPA the Affordable Clean Energy Rule (ACE Rule) and the repeal of the predecessor Clean Power Plan Rule (CPP Rule), both of which regulated greenhouse gas emissions from existing electric generation units pursuant to Section 111(d) of the Clean Air Act. As a result of these legal proceedings, neither the CPP nor ACE rules are currently in effect. MGE will continue to evaluate the rule development and monitor ongoing and potential legal proceedings.  The EPA's rule to regulate ambient levels of ozone through the 2015 Ozone National Ambient Air Quality Standards (NAAQS). In May 2021, the EPA published a final rule that expands several nonattainment areas in Wisconsin to include all of Milwaukee County where MGE's Elm Road Units are located. The Wisconsin Department of Natural Resources (WDNR) will need to develop a State Implementation Plan (SIP) for the area, which will likely result in more stringent requirements for both new development and existing plants in the area. MGE will monitor the WDNR's SIP development and the extent to which the requirements will impact the Elm Road Units. At this time, MGE does not expect that the 2015 Ozone NAAQS will have a material effect on its existing plants based on final designations.  Rules regulating nitrogen oxide (NO x ) and sulfur dioxide (SO 2 ) emissions, including the Cross State Air Pollution Rule (CSAPR) and Clean Air Visibility Rule. The EPA's CSAPR and its progeny are a suite of interstate air pollution transport rules designed to reduce ozone and fine particulate (PM2.5) air levels in areas that the EPA has determined as being significantly impacted by pollution from upwind states. In September 2019, the D.C. Circuit remanded the rule to the EPA holding that the rule improperly provided only a partial remedy for addressing interstate transport of pollutants from upwind to downwind states. In March 2021, the EPA addressed the remand by finalizing its revised CSAPR Update Rule. The revised rule does not require further emission reductions from Wisconsin stationary sources beyond those under the original CSAPR. MGE has met its current CSAPR obligations through a combination of reduced emissions through pollution control (e.g., SCR installation at Columbia), and owned, received, and purchased allowances. MGE expects to meet ongoing CSAPR obligations for the foreseeable future. MGE will continue to monitor legal developments and any future updates to this rule.  The EPA's Coal Combustion Residuals Rule (CCR), which regulates as a solid waste coal ash from burning coal for the purpose of generating electricity and defines what ash use activities would be considered generally exempt beneficial reuse of coal ash. The CCR rule also regulates landfills, ash ponds, and other surface impoundments used for coal combustion residuals by regulating their design, location, monitoring, and operation. In August 2020, the EPA revised the CCR rule to require owners or operators of coal-fired power plants to stop transporting CCR and non-CCR wastewater to unlined surface impoundments. In addition, regulated entities must initiate impoundment closure as soon as feasible and in no event later than April 2021, unless the EPA grants an extension. Columbia requested an extension to comply by October 2022. The EPA has not formally approved the extension. The reviews have been put on hold pending an overall review of rules promulgated in the final year of the previous administration. The Columbia owners anticipate that the EPA will approve the extension request. However, we will not know the extension request outcome with any certainty until the EPA completes their rules review. Review of the Elm Road Units has indicated that the costs to comply with this rule are not expected to be significant. Columbia's operator has completed a review of its system and has developed a compliance plan. In July 2021, the PSCW approved a CA application filed by MGE and the other owners of Columbia to install technology required to cease bottom ash transport water discharges rather than extend the longevity of the ash ponds. MGE's share of the estimated costs of the project will be approximately $ 4 million. Construction is expected to be completed by the end of 2022. b. Legal Matters - MGE Energy and MGE. MGE is involved in various legal matters that are being defended and handled in the normal course of business. MGE accrues for costs that are probable of being incurred and subject to reasonable estimation. The accrued amount for these matters is not material to the financial statements. MGE does not expect the resolution of these matters to have a material adverse effect on its consolidated results of operations, financial condition, or cash flows. In January 2021, certain environmental groups filed a petition against the PSCW regarding MGE's 2021 rate settlement. MGE has intervened in the petition in cooperation with the PSCW. See Footnote 9.a. for more information regarding this matter. c. Purchase Contracts - MGE Energy and MGE. MGE Energy and MGE have entered into various commodity supply, transportation, and storage contracts to meet their obligations to deliver electricity and natural gas to customers. Management expects to recover these costs in future customer rates. The following table shows future commitments related to purchase contracts as of September 30, 2021: (In thousands) 2021 2022 2023 2024 2025 Thereafter Coal (a) $ 5,050 $ 12,400 $ 6,447 $ 1,617 $ 894 $ — Natural gas Transportation and storage (b) 6,665 23,305 23,919 23,919 23,919 25,210 Supply (c) 21,432 20,033 — — — — Other 3,897 3,192 1,676 890 104 892 $ 37,044 $ 58,930 $ 32,042 $ 26,426 $ 24,917 $ 26,102 (a) Total coal commitments for the Columbia and Elm Road Units, including transportation. Fuel procurement for MGE's jointly owned Columbia and Elm Road Units is handled by WPL and WEPCO, respectively, who are the operators of those facilities. (b) MGE's natural gas transportation and storage contracts require fixed monthly payments for firm supply pipeline transportation and storage capacity. The pricing components of the fixed monthly payments for the transportation and storage contracts are established by FERC but may be subject to change. (c) These commitments include market-based pricing. |
Rate Matters
Rate Matters | 9 Months Ended |
Sep. 30, 2021 | |
Regulated Operations [Abstract] | |
Rate Matters | Rate Mat ters - MGE Energy and MGE. a. Rate Proceedings. In September 2021, MGE filed with the PSCW a proposed settlement agreement for its pending 2022 rate case. The settlement agreement proposes a 5.16 % increase to electric rates and a 2.15 % increase to gas rates for 2022. The proposed electric and gas rate increases are driven by an increase in rate base including our investments in Badger Hollow I and a new customer information system. Also driving the requested electric increase is the completion in 2021 of the one-time return of the electric excess deferred tax credit related to the 2017 Tax Act not restricted by IRS normalization rules. Included in the proposed electric residential rate is a reduction in the customer charge. As part of the settlement agreement for 2023, MGE is proposing a 0.96 % increase in gas rates and to address a potential electric rate change through a limited rate case re-opener. The proposed return on common stock equity for 2022 is 9.8 % based on a proposed capital structure consisting of 55.6 % common equity in 2022. PSCW approval of the settlement agreement is pending. A final order is expected before the end of the year. In December 2020, the PSCW approved a settlement agreement for MGE's 2021 rate case. The settlement agreement provides for a zero percent increase for electric rates and an approximately 4 % increase for gas rates in 2021. The electric rate settlement includes an increase in rate base but the associated rate increase is primarily offset by lower fuel and purchase power costs and a one-time $ 18.2 million return to customers of the portion of excess deferred taxes related to the 2017 Tax Act not restricted by IRS normalization rules. As part of the settlement, the fuel rules bandwidth is set at plus or minus 1 % for 2021. When compared to the 2020 rate case, the settlement included lower forecasted electric sales for 2021 to reflect changes to customer usage during the COVID-19 pandemic. The gas rate increase covers infrastructure costs and technology improvements. The settlement agreement also includes escrow accounting treatment for pension and other postretirement benefit costs, bad debt expense, and customer credit card fees. Escrow accounting treatment allows MGE to defer any difference between estimated costs in rates and actual costs incurred until its next rate filing. Any difference would be recorded as a regulatory asset or regulatory liability. The return on common stock equity for 2021 is 9.8 % based on a capital structure of 55.8 % common equity in 2021. On January 27, 2021, Sierra Club and Vote Solar filed a petition with the Dane County Circuit Court seeking review of the PSCW decision approving the rate settlement in MGE's 2021 rate case. The PSCW is named as the responding party; MGE is not named as a party. The petition challenges the process the PSCW used to approve the portion of the settlement relating to electric rates and the electric customer fixed charge that does not vary with usage. The requested relief is unclear. The revenue requirement approved by the PSCW in the settlement has not been challenged. The PSCW is expected to vigorously defend its approval of the rate case settlement. MGE has intervened in the proceedings to further defend the PSCW's decision. This litigation is currently stayed pending MGE's 2022 rate case proceedings. In December 2018, the PSCW approved a settlement agreement between MGE and intervening parties in the then pending rate case. The settlement decreased electric rates by 2.24 % , or $ 9.2 million, in 2019. The decrease in electric rates reflected the ongoing impacts of the 2017 Tax Act. Lower fuel costs and an increase in rate base from renewable generation assets further impacted the rate change. In 2020, electric rates decreased a further 0.84 % , or $ 3.4 million, as approved by the PSCW in December 2019 in MGE's 2020 Fuel Cost Plan, which reflected lower fuel costs. The settlement agreement increased gas rates by 1.06 % , or $ 1.7 million, in 2019 and 1.46 % , or $ 2.4 million, in 2020. The gas increase covered infrastructure costs. It also reflected the impacts of the 2017 Tax Act. The return on common stock equity for 2019 and 2020 was 9.8 % based on a capital structure consisting of 56.6 % common equity in 2019 and 56.1 % common equity in 2020. b. Fuel Rules. Fuel rules require Wisconsin utilities to defer electric fuel-related costs that fall outside a symmetrical cost tolerance band around the amount approved for a utility in its annual fuel proceedings. Any over- or under-recovery of the actual costs is determined in the following year and is then reflected in future billings to electric retail customers. The fuel rules bandwidth is set at plus or minus 1% in 2021. Under fuel rules, MGE defers costs, less any excess revenues, if its actual electric fuel costs exceed 101 % of the electric fuel costs allowed in its latest rate order. Excess revenues are defined as revenues in the year in question that provide MGE with a greater return on common equity than authorized by the PSCW in MGE's latest rate order. Conversely, MGE is required to defer the benefit of lower costs if actual electric fuel costs were less than 99 % of the electric fuel costs allowed in that order. In 2020 the fuel rules bandwidth was set at plus or minus 2 % . These costs are subject to the PSCW's annual review of fuel costs completed in the year following the deferral. The PSCW issued a final decision in the 2019 fuel rules proceedings regarding $ 1.5 million of deferred savings giving MGE the option either to use the $1.5 million as part of the settlement to MGE's 2021 rate case or to refund the balance to customers in October 2020. MGE elected to include the savings as part of the 2021 rate change settlement as described above, reducing electric retail rates as opposed to a one-time credit back to retail customers. There was no change to the refund in the fuel rules proceedings from the amount MGE deferred in the previous year. In September 2021, the PSCW issued a final decision in the 2020 fuel rules proceedings for MGE to refund $ 3.2 million of additional fuel savings realized during 2020 plus accrued interest to its retail electric customers over a one-month period in October 2021. There was no change to the refund in the fuel rules proceedings from the amount MGE deferred in the previous year. As of September 30, 2021 , MGE had no deferred 2021 fuel savings or costs. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Instruments | Derivati ve and Hedging Instruments - MGE Energy and MGE. a. Purpose. As part of its regular operations, MGE enters into contracts, including options, swaps, futures, forwards, and other contractual commitments, to manage its exposure to commodity prices. To the extent that these contracts are derivatives, MGE assesses whether or not the normal purchases or normal sales exclusion applies. For contracts to which this exclusion cannot be applied, the derivatives are recognized in the consolidated balance sheets at fair value. MGE's financial commodity derivative activities are conducted in accordance with its electric and gas risk management program, which is approved by the PSCW and limits the volume MGE can hedge with specific risk management strategies. The maximum length of time over which cash flows related to energy commodities can be hedged is four years . If the derivative qualifies for regulatory deferral, the derivatives are marked to fair value and are offset with a corresponding regulatory asset or liability depending on whether the derivative is in a net loss or net gain position, respectively. The deferred gain or loss is recognized in earnings in the delivery month applicable to the instrument. Gains and losses related to hedges qualifying for regulatory treatment are recoverable in gas rates through the PGA or in electric rates as a component of the fuel rules mechanism. b. Notional Amounts. The gross notional volume of open derivatives is as follows: September 30, 2021 December 31, 2020 Commodity derivative contracts 290,520 MWh 259,080 MWh Commodity derivative contracts 9,050,000 Dth 6,030,000 Dth FTRs 3,280 MW 2,869 MW PPA 400 MW 850 MW c. Financial Statement Presentation. MGE purchases and sells exchange-traded and over-the-counter options, swaps, and future contracts. These arrangements are primarily entered into to help stabilize the price risk associated with gas or power purchases. These transactions are employed by both MGE's gas and electric segments. Additionally, as a result of the firm transmission agreements that MGE holds on electricity transmission paths in the MISO market, MGE holds financial transmission rights (FTRs). An FTR is a financial instrument that entitles the holder to a stream of revenues or charges based on the differences in hourly day-ahead energy prices between two points on the transmission grid. The fair values of these instruments are offset with a corresponding regulatory asset/liability depending on whether they are in a net loss/gain position. Depending on the nature of the instrument, the gain or loss associated with these transactions will be reflected as cost of gas sold, fuel for electric generation, or purchased power expense in the delivery month applicable to the instrument. As of September 30, 2021, and December 31, 2020, the fair value of exchange traded derivatives and FTRs exceeded their cost basis by $ 13.8 million and $ 0.2 million, respectively. MGE is a party to a purchased power agreement that provides MGE with firm capacity and energy during a base term from June 1, 2012, through May 31, 2022. The agreement is accounted for as a derivative contract and is recognized at its fair value on the consolidated balance sheets. However, the derivative qualifies for regulatory deferral and is recognized with a corresponding regulatory asset or liability depending on whether the fair value is in a loss or gain position. The fair value of the contract as of September 30, 2021, and December 31, 2020, reflected a loss position of $ 0.2 million and $ 14.1 million, respectively. The actual cost will be recognized in purchased power expense in the month of purchase. The following table summarizes the fair value of the derivative instruments on the consolidated balance sheets. All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, instruments are netted with the same counterparty under a master netting agreement as well as the netting of collateral. Derivative Derivative (In thousands) Assets Liabilities Balance Sheet Location September 30, 2021 Commodity derivative contracts (a) $ 13,426 $ 375 Other current assets Commodity derivative contracts (a) 559 — Other deferred charges FTRs 225 — Other current assets PPA N/A 160 Derivative liability (current) PPA N/A — Derivative liability (long-term) December 31, 2020 Commodity derivative contracts (b) $ 617 $ 593 Other current assets Commodity derivative contracts (b) 189 39 Other deferred charges FTRs — 23 Other current liabilities PPA N/A 10,160 Derivative liability (current) PPA N/A 3,980 Derivative liability (long-term) (a) As of September 30, 2021, MGE received collateral of $ 9.2 million from counterparties under a master netting agreement for outstanding exchange traded derivative positions. The fair value of the derivative asset disclosed in this table has not been reduced for the collateral received. (b) N o collateral was posted against derivative positions as of December 31, 2020 . The following tables show the effect of netting arrangements for recognized derivative assets and liabilities that are subject to a master netting arrangement or similar arrangement on the consolidated balance sheets. Offsetting of Derivative Assets (In thousands) Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets September 30, 2021 Commodity derivative contracts $ 13,985 $ ( 375 ) $ ( 9,235 ) $ 4,375 FTRs 225 — — $ 225 December 31, 2020 Commodity derivative contracts $ 806 $ ( 632 ) $ — $ 174 Offsetting of Derivative Liabilities (In thousands) Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets September 30, 2021 Commodity derivative contracts $ 375 $ ( 375 ) $ — $ — PPA 160 — — 160 December 31, 2020 Commodity derivative contracts $ 632 $ ( 632 ) $ — $ — FTRs 23 — — 23 PPA 14,140 — — 14,140 The following tables summarize the unrealized and realized gains/losses related to the derivative instruments on the consolidated balance sheets and the consolidated statements of income. 2021 2020 (In thousands) Current and Long-Term Regulatory Asset (Liability) Other Current Assets Current and Long-Term Regulatory Asset (Liability) Other Current Assets Three Months Ended September 30: Balance as of July 1, $ 2,581 $ 520 $ 20,400 $ 940 Unrealized gain ( 18,677 ) — ( 4,695 ) — Realized gain (loss) reclassified to a deferred 65 ( 65 ) ( 207 ) 207 Realized gain (loss) reclassified to income statement 2,356 311 ( 1,481 ) ( 164 ) Balance as of September 30, $ ( 13,675 ) $ 766 $ 14,017 $ 983 Nine Months Ended September 30: Balance as of January 1, $ 13,989 $ 1,162 $ 26,875 $ 1,100 Unrealized gain ( 30,314 ) — ( 8,032 ) — Realized (loss) gain reclassified to a deferred ( 351 ) 351 ( 1,999 ) 1,999 Realized gain (loss) reclassified to income statement 3,001 ( 747 ) ( 2,827 ) ( 2,116 ) Balance as of September 30, $ ( 13,675 ) $ 766 $ 14,017 $ 983 Realized Losses (Gains) 2021 2020 (In thousands) Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Three Months Ended September 30: Commodity derivative contracts $ ( 1,586 ) $ — $ 680 $ 28 FTRs ( 132 ) — 184 — PPA ( 949 ) — 753 — Nine Months Ended September 30: Commodity derivative contracts $ ( 2,107 ) $ 1,055 $ 2,303 $ 1,682 FTRs ( 443 ) — 78 — PPA ( 759 ) — 880 — MGE's commodity derivative contracts, FTRs, and PPA are subject to regulatory deferral. These derivatives are marked to fair value and are offset with a corresponding regulatory asset or liability. Realized gains and losses are deferred on the consolidated balance sheets and are recognized in earnings in the delivery month applicable to the instrument. As a result of the treatment described above, there are no unrealized gains or losses that flow through earnings. The PPA has a provision that may require MGE to post collateral if MGE's debt rating falls below investment grade (i.e., below BBB-). The amount of collateral that it may be required to post varies from $ 20.0 million to $ 40.0 million, depending on MGE's nominated capacity amount. As of September 30, 2021 , no collateral was required to be, or had been, posted. Certain counterparties extend MGE a credit limit. If MGE exceeds these limits, the counterparties may require collateral to be posted. As of September 30, 2021, and December 31, 2020 , no counterparties were in a net liability position. Nonperformance of counterparties to the non-exchange traded derivatives could expose MGE to credit loss. However, MGE enters into transactions only with companies that meet or exceed strict credit guidelines, and it monitors these counterparties on an ongoing basis to mitigate nonperformance risk in its portfolio. As of September 30, 2021 , no counterparties had defaulted. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Fin ancial Instruments - MGE Energy and MGE. Fair value is defined as the price that would be received to sell an asset or would be paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting standard clarifies that fair value should be based on the assumptions market participants would use when pricing the asset or liability including assumptions about risk. The standard also establishes a three-level fair value hierarchy based upon the observability of the assumptions used and requires the use of observable market data when available. The levels are: Level 1 - Pricing inputs are quoted prices within active markets for identical assets or liabilities. Level 2 - Pricing inputs are quoted prices within active markets for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations that are correlated with or otherwise verifiable by observable market data. Level 3 - Pricing inputs are unobservable and reflect management's best estimate of what market participants would use in pricing the asset or liability. a. Fair Value of Financial Assets and Liabilities Recorded at the Carrying Amount. The carrying amount of cash, cash equivalents, and outstanding commercial paper approximates fair market value due to the short maturity of those investments and obligations. The estimated fair market value of long-term debt is based on quoted market prices for similar financial instruments. Since long-term debt is not traded in an active market, it is classified as Level 2. The estimated fair market value of financial instruments are as follows: September 30, 2021 December 31, 2020 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value MGE Energy Assets: Cash and cash equivalents $ 70,454 $ 70,454 $ 44,738 $ 44,738 Liabilities: Short-term debt - commercial paper — — 52,500 52,500 Long-term debt (a) 624,653 692,987 528,220 639,271 MGE Assets: Cash and cash equivalents $ 57,003 $ 57,003 $ 4,103 $ 4,103 Liabilities: Short-term debt - commercial paper — — 52,500 52,500 Long-term debt (a) 624,653 692,987 528,220 639,271 (a) Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.5 million and $ 4.1 million as of September 30, 2021, and December 31, 2020 , respectively. b. Recurring Fair Value Measurements. The following table presents the balances of assets and liabilities measured at fair value on a recurring basis. Fair Value as of September 30, 2021 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 14,210 $ 10,451 $ — $ 3,759 Exchange-traded investments 1,124 1,124 — — Total Assets $ 15,334 $ 11,575 $ — $ 3,759 Liabilities: Derivatives, net $ 535 $ 365 $ — $ 170 Deferred compensation 3,496 — 3,496 — Total Liabilities $ 4,031 $ 365 $ 3,496 $ 170 MGE Assets: Derivatives, net (b) $ 14,210 $ 10,451 $ — $ 3,759 Exchange-traded investments 244 244 — — Total Assets $ 14,454 $ 10,695 $ — $ 3,759 Liabilities: Derivatives, net $ 535 $ 365 $ — $ 170 Deferred compensation 3,496 — 3,496 — Total Liabilities $ 4,031 $ 365 $ 3,496 $ 170 Fair Value as of December 31, 2020 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 806 $ 436 $ — $ 370 Exchange-traded investments 1,750 1,750 — — Total Assets $ 2,556 $ 2,186 $ — $ 370 Liabilities: Derivatives, net (b) $ 14,795 $ 370 $ — $ 14,425 Deferred compensation 3,509 — 3,509 — Total Liabilities $ 18,304 $ 370 $ 3,509 $ 14,425 MGE Assets: Derivatives, net (b) $ 806 $ 436 $ — $ 370 Exchange-traded investments 603 603 — — Total Assets $ 1,409 $ 1,039 $ — $ 370 Liabilities: Derivatives, net (b) $ 14,795 $ 370 $ — $ 14,425 Deferred compensation 3,509 — 3,509 — Total Liabilities $ 18,304 $ 370 $ 3,509 $ 14,425 (b) As of September 30, 2021, MGE received collateral of $ 9.2 million from counterparties under a master netting agreement for outstanding exchange traded derivative positions. The fair value of the derivative asset disclosed in this table has not been reduced for the collateral received. No collateral was posted against derivative positions owed to counterparties under a master netting agreement on the consolidated balance sheet as of December 31, 2020 . Investments include exchange-traded investment securities valued using quoted prices on active exchanges and are therefore classified as Level 1. The deferred compensation plan allows participants to defer certain cash compensation into a notional investment account. These amounts are included within other deferred liabilities in the consolidated balance sheets. The notional investments earn interest based upon the semiannual rate of U.S. Treasury Bills having a 26 -week maturity increased by 1 % compounded monthly with a minimum annual rate of 7 %, compounded monthly. The notional investments are based upon observable market data, however, since the deferred compensation obligations themselves are not exchanged in an active market, they are classified as Level 2. Derivatives include exchange-traded derivative contracts, over-the-counter transactions, a purchased power agreement, and FTRs. Most exchange-traded derivative contracts are valued based on unadjusted quoted prices in active markets and are therefore classified as Level 1. A small number of exchange-traded derivative contracts are valued using quoted market pricing in markets with insufficient volumes and are therefore considered unobservable and classified as Level 3. Transactions done with an over-the-counter party are on inactive markets and are therefore classified as Level 3. These transactions are valued based on quoted prices from markets with similar exchange-traded transactions. FTRs are priced based upon monthly auction results for identical or similar instruments in a closed market with limited data available and are therefore classified as Level 3. The purchased power agreement (see Footnote 10) was valued using an internal pricing model and therefore is classified as Level 3. The model projects future market energy prices and compares those prices to the projected power costs to be incurred under the contract. Inputs to the model require significant management judgment and estimation. Future energy prices are based on a forward power pricing curve using exchange-traded contracts in the electric futures market. A basis adjustment is applied to the market energy price to reflect the price differential between the market price delivery point and the counterparty delivery point. The historical relationship between the delivery points is reviewed and a discount (below 100%) or premium (above 100%) is derived. This comparison is done for both peak times when demand is high and off-peak times when demand is low. If the basis adjustment is lowered, the fair value measurement will decrease, and if the basis adjustment is increased, the fair value measurement will increase. The projected power costs anticipated to be incurred under the purchased power agreement are determined using many factors, including historical generating costs, future prices, and expected fuel mix of the counterparty. An increase in the projected fuel costs would result in a decrease in the fair value measurement of the purchased power agreement. A significant input that MGE estimates is the counterparty's fuel mix in determining the projected power cost. MGE also considers the assumptions that market participants would use in valuing the asset or liability. This consideration includes assumptions about market risk such as liquidity, volatility, and contract duration. The fair value model uses a discount rate that incorporates discounting, credit, and model risks. The following table presents the significant unobservable inputs used in the pricing model. Model Input September 30, December 31, Significant Unobservable Inputs 2021 2020 Basis adjustment: On peak 95.5 % 94.2 % Off peak 96.4 % 94.5 % Counterparty fuel mix: Internal generation - range 41 %- 66 % 46 %- 65 % Internal generation - weighted average 54.2 % 56.5 % Purchased power - range 59 %- 34 % 54 %- 35 % Purchased power - weighted average 45.8 % 43.5 % The following table summarizes the changes in Level 3 commodity derivative assets and liabilities measured at fair value on a recurring basis. Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Beginning balance $ ( 4,533 ) $ ( 21,023 ) $ ( 14,055 ) $ ( 26,456 ) Realized and unrealized gains (losses): Included in regulatory assets — 5,296 — 10,729 Included in regulatory liability 8,122 — 17,644 — Included in other comprehensive income — — — — Included in earnings 2,476 ( 1,524 ) 2,686 ( 4,687 ) Included in current assets — ( 37 ) 175 ( 101 ) Purchases 6,638 5,505 18,899 15,837 Sales — — — — Issuances — — — — Settlements ( 9,114 ) ( 3,944 ) ( 21,760 ) ( 11,049 ) Balance as of September 30, $ 3,589 $ ( 15,727 ) $ 3,589 $ ( 15,727 ) Total gains (losses) included in earnings attributed to (c) $ — $ — $ — $ — The following table presents total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis (c) . Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Purchased power expense $ 2,476 $ ( 1,496 ) $ 3,113 $ ( 4,343 ) Cost of gas sold expense — ( 28 ) ( 427 ) ( 344 ) Total $ 2,476 $ ( 1,524 ) $ 2,686 $ ( 4,687 ) (c) MGE's exchange-traded derivative contracts, over-the-counter party transactions, purchased power agreement, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability. |
Joint Plant Ownership
Joint Plant Ownership | 9 Months Ended |
Sep. 30, 2021 | |
Public Utilities Property Plant And Equipment [Abstract] | |
Jointly Owned Electric Utility Plant | Joint Plant Constr uction Project Ownership - MGE Energy and MGE MGE currently has ongoing jointly-owned solar generation construction projects, as shown in the following table. Incurred costs are reflected in "Construction work in progress" on the consolidated balance sheets. Ownership Share of Share of Costs incurred Date of Project Interest Generation Estimated Costs 2021 (a) Operation Badger Hollow I (b) 33 % 50 MW $ 65 million $ 57.8 million Q4 2021 (c) Badger Hollow II (b) 33 % 50 MW $ 65 million $ 11.5 million December 2022 (c) (a) Excluding AFUDC. (b) The Badger Hollow I and Badger Hollow II solar farms are located in southwestern Wisconsin in Iowa County, near the villages of Montfort and Cobb. (c) Estimated date of commercial operation. MGE received specific approval to recover 100 % AFUDC on each of these projects. During the three and nine months ended September 30, 2021, MGE recognized $ 1.3 million and $ 3.6 million, respectively, after tax, in AFUDC for Badger Hollow I and II compared to $ 0.9 million and $ 1.8 million for the comparable periods in 2020 . |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | Asset Retiremen t Obligations - MGE Energy and MGE A liability is recorded for the fair value of an asset retirement obligation (ARO) to be recognized in the period in which it is incurred if it can be reasonably estimated. The offsetting associated asset retirement costs are capitalized as a long-lived asset and depreciated over the asset's useful life. As of September 30, 2021, MGE recorded an obligation of $ 3.9 million for the fair value of its legal liability for AROs associated with completed renewable projects and $ 3.5 million for the revision of its ARO legal liability with Columbia ash pond. MGE has regulatory treatment and recognizes regulatory assets or liabilities for the timing differences between when we recover legal AROs in rates and when those costs would actually be recognized. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Reven ue - MGE Energy and MGE. Revenues disaggregated by revenue source were as follows: Three Months Ended Nine Months Ended (In thousands) September 30, September 30, Electric revenues 2021 2020 2021 2020 Residential $ 44,398 $ 45,009 $ 117,229 $ 113,311 Commercial 60,996 57,822 161,270 152,844 Industrial 3,380 3,234 9,469 8,797 Other-retail/municipal 9,478 8,620 26,340 24,874 Total retail 118,252 114,685 314,308 299,826 Sales to the market 3,071 1,554 8,854 2,604 Other revenues 316 115 948 660 Total electric revenues 121,639 116,354 324,110 303,090 Gas revenues Residential 14,643 12,436 72,286 61,328 Commercial/Industrial 8,069 5,052 42,972 32,961 Total retail 22,712 17,488 115,258 94,289 Gas transportation 1,256 1,152 4,589 4,179 Other revenues 52 3 97 100 Total gas revenues 24,020 18,643 119,944 98,568 Non-regulated energy revenues 214 214 464 466 Total Operating Revenue $ 145,873 $ 135,211 $ 444,518 $ 402,124 Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of contracts have a single performance obligation. Retail Revenue (Residential, Commercial, Industrial, and Other Retail/Municipal) Providing electric and gas utility service to retail customers represents MGE's core business activity. Tariffs are approved by the PSCW through a rate order and provide MGE's customers with the standard terms and conditions, including pricing terms. The performance obligation to deliver electricity or gas is satisfied over time as the customer simultaneously receives and consumes the commodities provided by MGE. MGE recognizes revenues as the commodity is delivered to customers. Meters are read on a systematic basis throughout the month based on established meter-reading schedules and customers are subsequently billed for services received. At the end of the month, MGE accrues an estimate for unbilled commodities delivered to customers. The unbilled revenue estimate is based on daily system demand volumes, weather factors, estimated line losses, estimated customer usage by class, and applicable customer rates. Utility Cost Recovery Mechanisms MGE's tariff rates include a provision for fuel cost recovery. The PSCW allows Wisconsin utilities to defer electric fuel-related costs, less excess revenues, that fall outside a symmetrical cost tolerance band. Any over- or under-recovery of the actual costs in a given year is determined in the following year and is then reflected in future billings to electric retail customers. Over-collection of fuel-related costs that are outside the approved range will be recognized as a reduction of revenue. Under-collection of these costs will be recognized in "Purchased power" expense in the consolidated statements of income. The cumulative effects of these deferred amounts will be recorded in "Regulatory assets" or "Regulatory liabilities" on the consolidated balance sheets until they are reflected in future billings to customers. See Footnote 9.b. for further information. MGE also has other cost recovery mechanisms. For example, any over-collection of the difference between actual costs incurred and the amount of costs collected from customers is recorded as a reduction of revenue in the period incurred. Sales to the Market Sales to the market include energy charges, capacity or demand charges, and ancillary charges represented by wholesale sales of electricity made to third parties who are not ultimate users of the electricity. Most of these sales are spot market transactions on the markets operated by MISO. Each transaction is considered a performance obligation and revenue is recognized in the period in which energy charges, capacity or demand charges, and ancillary services are sold into MISO. MGE reports, on a net basis, transactions on the MISO markets in which it buys and sells power within the same hour to meet electric energy delivery requirements. Transportation of Gas MGE has contracts under which it provides gas transportation services to customers who have elected to purchase gas from a third party. MGE delivers this gas via pipelines within its service territory. Revenue is recognized as service is rendered or gas is delivered to customers. Tariffs are approved by the PSCW through a rate order and provide gas transportation customers with standard terms and conditions, including pricing terms. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Infor mation - MGE Energy and MGE. MGE Energy operates in the following business segments: electric utility, gas utility, nonregulated energy, transmission investment, and all other. See the 2020 Annual Report on Form 10-K for additional discussion of each of these segments. (In thousands) Nonregulated Transmission All Consolidation/ Consolidated MGE Energy Electric Gas Energy Investment Others Elimination Total Three Months Ended September 30, 2021 Operating revenues from external $ 121,639 $ 24,020 $ 214 $ — $ — $— $ 145,873 Interdepartmental revenues 89 6,689 10,224 — — ( 17,002 ) — Total operating revenues 121,728 30,709 10,438 — — ( 17,002 ) 145,873 Equity in earnings of investments — — — 2,532 — — 2,532 Net income (loss) 27,833 ( 218 ) 5,386 1,842 74 — 34,917 Three Months Ended September 30, 2020 Operating revenues from external $ 116,354 $ 18,643 $ 214 $ — $ — $— $ 135,211 Interdepartmental revenues 209 3,494 10,102 — — ( 13,805 ) — Total operating revenues 116,563 22,137 10,316 — — ( 13,805 ) 135,211 Equity in earnings of investments — — — 2,353 — — 2,353 Net income (loss) 24,761 221 5,251 1,710 ( 149 ) — 31,794 Nine Months Ended September 30, 2021 Operating revenues from external $ 324,110 $ 119,944 $ 464 $ — $ — $— $ 444,518 Interdepartmental revenues 316 14,377 30,595 — — ( 45,288 ) — Total operating revenues 324,426 134,321 31,059 — — ( 45,288 ) 444,518 Equity in earnings of investments — — — 7,440 — — 7,440 Net income (loss) 59,979 11,615 15,935 5,413 ( 241 ) — 92,701 Nine Months Ended September 30, 2020 Operating revenues from external $ 303,090 $ 98,568 $ 466 $ — $ — $— $ 402,124 Interdepartmental revenues 584 9,300 30,248 — — ( 40,132 ) — Total operating revenues 303,674 107,868 30,714 — — ( 40,132 ) 402,124 Equity in earnings of investments — — — 7,780 — — 7,780 Net income (loss) 46,439 9,216 15,536 5,659 ( 228 ) — 76,622 (In thousands) Nonregulated Consolidation/ Consolidated MGE Electric Gas Energy Elimination Total Three Months Ended September 30, 2021 Operating revenues from external $ 121,639 $ 24,020 $ 214 $— $ 145,873 Interdepartmental revenues 89 6,689 10,224 ( 17,002 ) — Total operating revenues 121,728 30,709 10,438 ( 17,002 ) 145,873 Net income (loss) attributable to MGE 27,833 ( 218 ) 5,386 ( 5,627 ) 27,374 Three Months Ended September 30, 2020 Operating revenues from external $ 116,354 $ 18,643 $ 214 $— $ 135,211 Interdepartmental revenues 209 3,494 10,102 ( 13,805 ) — Total operating revenues 116,563 22,137 10,316 ( 13,805 ) 135,211 Net income attributable to MGE 24,761 221 5,251 ( 5,493 ) 24,740 Nine Months Ended September 30, 2021 Operating revenues from external $ 324,110 $ 119,944 $ 464 $— $ 444,518 Interdepartmental revenues 316 14,377 30,595 ( 45,288 ) — Total operating revenues 324,426 134,321 31,059 ( 45,288 ) 444,518 Net income attributable to MGE 59,979 11,615 15,935 ( 16,755 ) 70,774 Nine Months Ended September 30, 2020 Operating revenues from external $ 303,090 $ 98,568 $ 466 $— $ 402,124 Interdepartmental revenues 584 9,300 30,248 ( 40,132 ) — Total operating revenues 303,674 107,868 30,714 ( 40,132 ) 402,124 Net income attributable to MGE 46,439 9,216 15,536 ( 16,754 ) 54,437 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Variable Interest Entities | MGE Power Elm Road and MGE Power West Campus own electric generating assets and lease those assets to MGE. Both entities are variable interest entities under applicable authoritative accounting guidance. MGE is considered the primary beneficiary of these entities as a result of contractual agreements. As a result, MGE has consolidated MGE Power Elm Road and MGE Power West Campus. |
Cash and Cash Equivalents | Cash Equivalents All highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Restricted Cash | Restricted Cash MGE has certain cash accounts that are restricted to uses other than current operations and designated for a specific purpose. MGE's restricted cash accounts include cash held by trustees for certain employee benefits and cash deposits held by third parties. These are included in "Other current assets" on the consolidated balance sheets. |
Receivable Margin Account | Receivable – Margin Account Cash amounts held by counterparties as margin collateral for certain financial transactions are recorded as Receivable – margin account in "Other current assets" on the consolidated balance sheets. The costs being hedged are fuel for electric generation, purchased power, and cost of gas sold. |
New Accounting Pronouncements Disclosure | MGE Energy and MGE reviewed FASB authoritative guidance recently issued, none of which are expected to have a material impact on the consolidated results of operations, financial condition, or cash flows. |
Investments - ATC and ATC Holdco | MGE Transco and MGEE Transco have accounted for their investments in ATC and ATC Holdco, respectively, under the equity method of accounting. |
Pension and Other Postretirement Benefit Plan Assets | MGE maintains qualified and nonqualified pension plans, health care, and life insurance benefits and defined contribution 401(k) benefit plans for its employees and retirees. The components of net periodic benefit cost, other than the service cost component, are recorded in "Other income, net" on the consolidated statements of income. The service cost component is recorded in "Other operations and maintenance" on the consolidated statements of income. MGE has regulatory treatment and recognizes regulatory assets or liabilities for timing differences between when net periodic benefit costs are recovered and when costs are recognized. |
Common Stock | MGE Energy sells shares of its common stock through its Direct Stock Purchase and Dividend Reinvestment Plan (the Stock Plan). Those shares may be newly issued shares or shares that are purchased in the open market by an independent agent for participants in the Stock Plan. All sales under the Stock Plan are covered by a shelf registration statement that MGE Energy filed with the SEC. |
Wisconsin Fuel Rules | Fuel rules require Wisconsin utilities to defer electric fuel-related costs that fall outside a symmetrical cost tolerance band around the amount approved for a utility in its annual fuel proceedings. Any over- or under-recovery of the actual costs is determined in the following year and is then reflected in future billings to electric retail customers. The fuel rules bandwidth is set at plus or minus 1% in 2021. Under fuel rules, MGE defers costs, less any excess revenues, if its actual electric fuel costs exceed 101 % of the electric fuel costs allowed in its latest rate order. Excess revenues are defined as revenues in the year in question that provide MGE with a greater return on common equity than authorized by the PSCW in MGE's latest rate order. Conversely, MGE is required to defer the benefit of lower costs if actual electric fuel costs were less than 99 % of the electric fuel costs allowed in that order. In 2020 the fuel rules bandwidth was set at plus or minus 2 % . These costs are subject to the PSCW's annual review of fuel costs completed in the year following the deferral. |
Derivative Hedging | As part of its regular operations, MGE enters into contracts, including options, swaps, futures, forwards, and other contractual commitments, to manage its exposure to commodity prices. To the extent that these contracts are derivatives, MGE assesses whether or not the normal purchases or normal sales exclusion applies. For contracts to which this exclusion cannot be applied, the derivatives are recognized in the consolidated balance sheets at fair value. MGE's financial commodity derivative activities are conducted in accordance with its electric and gas risk management program, which is approved by the PSCW and limits the volume MGE can hedge with specific risk management strategies. The maximum length of time over which cash flows related to energy commodities can be hedged is four years . If the derivative qualifies for regulatory deferral, the derivatives are marked to fair value and are offset with a corresponding regulatory asset or liability depending on whether the derivative is in a net loss or net gain position, respectively. The deferred gain or loss is recognized in earnings in the delivery month applicable to the instrument. Gains and losses related to hedges qualifying for regulatory treatment are recoverable in gas rates through the PGA or in electric rates as a component of the fuel rules mechanism. |
Derivative Netting | All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, instruments are netted with the same counterparty under a master netting agreement as well as the netting of collateral. |
Recurring Fair Value Measurements | Fair value is defined as the price that would be received to sell an asset or would be paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting standard clarifies that fair value should be based on the assumptions market participants would use when pricing the asset or liability including assumptions about risk. The standard also establishes a three-level fair value hierarchy based upon the observability of the assumptions used and requires the use of observable market data when available. The levels are: Level 1 - Pricing inputs are quoted prices within active markets for identical assets or liabilities. Level 2 - Pricing inputs are quoted prices within active markets for similar assets or liabilities; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations that are correlated with or otherwise verifiable by observable market data. Level 3 - Pricing inputs are unobservable and reflect management's best estimate of what market participants would use in pricing the asset or liability. a. Fair Value of Financial Assets and Liabilities Recorded at the Carrying Amount. The carrying amount of cash, cash equivalents, and outstanding commercial paper approximates fair market value due to the short maturity of those investments and obligations. The estimated fair market value of long-term debt is based on quoted market prices for similar financial instruments. Since long-term debt is not traded in an active market, it is classified as Level 2. Investments include exchange-traded investment securities valued using quoted prices on active exchanges and are therefore classified as Level 1. The deferred compensation plan allows participants to defer certain cash compensation into a notional investment account. These amounts are included within other deferred liabilities in the consolidated balance sheets. The notional investments earn interest based upon the semiannual rate of U.S. Treasury Bills having a 26 -week maturity increased by 1 % compounded monthly with a minimum annual rate of 7 %, compounded monthly. The notional investments are based upon observable market data, however, since the deferred compensation obligations themselves are not exchanged in an active market, they are classified as Level 2. Derivatives include exchange-traded derivative contracts, over-the-counter transactions, a purchased power agreement, and FTRs. Most exchange-traded derivative contracts are valued based on unadjusted quoted prices in active markets and are therefore classified as Level 1. A small number of exchange-traded derivative contracts are valued using quoted market pricing in markets with insufficient volumes and are therefore considered unobservable and classified as Level 3. Transactions done with an over-the-counter party are on inactive markets and are therefore classified as Level 3. These transactions are valued based on quoted prices from markets with similar exchange-traded transactions. FTRs are priced based upon monthly auction results for identical or similar instruments in a closed market with limited data available and are therefore classified as Level 3. The purchased power agreement (see Footnote 10) was valued using an internal pricing model and therefore is classified as Level 3. The model projects future market energy prices and compares those prices to the projected power costs to be incurred under the contract. Inputs to the model require significant management judgment and estimation. Future energy prices are based on a forward power pricing curve using exchange-traded contracts in the electric futures market. A basis adjustment is applied to the market energy price to reflect the price differential between the market price delivery point and the counterparty delivery point. The historical relationship between the delivery points is reviewed and a discount (below 100%) or premium (above 100%) is derived. This comparison is done for both peak times when demand is high and off-peak times when demand is low. If the basis adjustment is lowered, the fair value measurement will decrease, and if the basis adjustment is increased, the fair value measurement will increase. The projected power costs anticipated to be incurred under the purchased power agreement are determined using many factors, including historical generating costs, future prices, and expected fuel mix of the counterparty. An increase in the projected fuel costs would result in a decrease in the fair value measurement of the purchased power agreement. A significant input that MGE estimates is the counterparty's fuel mix in determining the projected power cost. MGE also considers the assumptions that market participants would use in valuing the asset or liability. This consideration includes assumptions about market risk such as liquidity, volatility, and contract duration. The fair value model uses a discount rate that incorporates discounting, credit, and model risks. The following table presents the significant unobservable inputs used in the pricing model. Model Input September 30, December 31, Significant Unobservable Inputs 2021 2020 Basis adjustment: On peak 95.5 % 94.2 % Off peak 96.4 % 94.5 % Counterparty fuel mix: Internal generation - range 41 %- 66 % 46 %- 65 % Internal generation - weighted average 54.2 % 56.5 % Purchased power - range 59 %- 34 % 54 %- 35 % Purchased power - weighted average 45.8 % 43.5 % |
Asset Retirement Obligations | A liability is recorded for the fair value of an asset retirement obligation (ARO) to be recognized in the period in which it is incurred if it can be reasonably estimated. The offsetting associated asset retirement costs are capitalized as a long-lived asset and depreciated over the asset's useful life. |
Revenue Recognition | Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of contracts have a single performance obligation. Retail Revenue (Residential, Commercial, Industrial, and Other Retail/Municipal) Providing electric and gas utility service to retail customers represents MGE's core business activity. Tariffs are approved by the PSCW through a rate order and provide MGE's customers with the standard terms and conditions, including pricing terms. The performance obligation to deliver electricity or gas is satisfied over time as the customer simultaneously receives and consumes the commodities provided by MGE. MGE recognizes revenues as the commodity is delivered to customers. Meters are read on a systematic basis throughout the month based on established meter-reading schedules and customers are subsequently billed for services received. At the end of the month, MGE accrues an estimate for unbilled commodities delivered to customers. The unbilled revenue estimate is based on daily system demand volumes, weather factors, estimated line losses, estimated customer usage by class, and applicable customer rates. Utility Cost Recovery Mechanisms MGE's tariff rates include a provision for fuel cost recovery. The PSCW allows Wisconsin utilities to defer electric fuel-related costs, less excess revenues, that fall outside a symmetrical cost tolerance band. Any over- or under-recovery of the actual costs in a given year is determined in the following year and is then reflected in future billings to electric retail customers. Over-collection of fuel-related costs that are outside the approved range will be recognized as a reduction of revenue. Under-collection of these costs will be recognized in "Purchased power" expense in the consolidated statements of income. The cumulative effects of these deferred amounts will be recorded in "Regulatory assets" or "Regulatory liabilities" on the consolidated balance sheets until they are reflected in future billings to customers. See Footnote 9.b. for further information. MGE also has other cost recovery mechanisms. For example, any over-collection of the difference between actual costs incurred and the amount of costs collected from customers is recorded as a reduction of revenue in the period incurred. Sales to the Market Sales to the market include energy charges, capacity or demand charges, and ancillary charges represented by wholesale sales of electricity made to third parties who are not ultimate users of the electricity. Most of these sales are spot market transactions on the markets operated by MISO. Each transaction is considered a performance obligation and revenue is recognized in the period in which energy charges, capacity or demand charges, and ancillary services are sold into MISO. MGE reports, on a net basis, transactions on the MISO markets in which it buys and sells power within the same hour to meet electric energy delivery requirements. Transportation of Gas MGE has contracts under which it provides gas transportation services to customers who have elected to purchase gas from a third party. MGE delivers this gas via pipelines within its service territory. Revenue is recognized as service is rendered or gas is delivered to customers. Tariffs are approved by the PSCW through a rate order and provide gas transportation customers with standard terms and conditions, including pricing terms. |
Summary of Significant Accoun_2
Summary of Significant Accounting Principles (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash, Cash Equivalents, And Restricted Cash [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | The following table presents the components of total cash, cash equivalents, and restricted cash on the consolidated balance sheets. MGE Energy MGE September 30, December 31, September 30, December 31, (In thousands) 2021 2020 2021 2020 Cash and cash equivalents $ 70,454 $ 44,738 $ 57,003 $ 4,103 Restricted cash 641 644 641 644 Receivable - margin account 550 1,657 550 1,657 Cash, cash equivalents, and restricted cash $ 71,645 $ 47,039 $ 58,194 $ 6,404 |
Investment in ATC and ATC Hol_2
Investment in ATC and ATC Holdco (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments Financial Data | MGE Transco and MGEE Transco have accounted for their investments in ATC and ATC Holdco, respectively, under the equity method of accounting. Equity earnings from investments are recorded as "Other income" on the consolidated statements of income of MGE Energy. MGE Transco recorded the following amounts related to its investment in ATC: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Equity earnings from investment in ATC $ 2,500 $ 2,319 $ 7,333 $ 7,724 Dividends from investments 1,942 2,349 5,842 6,620 Capital contributions to ATC — 359 — 892 ATC's summarized financial data is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Operating revenues $ 186,785 $ 187,833 $ 561,379 $ 577,705 Operating expenses ( 91,340 ) ( 92,975 ) ( 278,828 ) ( 285,697 ) Other income, net 123 643 1,164 1,924 Interest expense, net ( 28,674 ) ( 28,801 ) ( 86,337 ) ( 83,947 ) Earnings before members' income taxes $ 66,894 $ 66,700 $ 197,378 $ 209,985 |
Taxes (Tables)
Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Effective Tax Rate Reconciliation | The consolidated income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before income taxes, as follows: MGE Energy MGE Three Months Ended September 30, 2021 2020 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.3 6.2 6.2 Amortized investment tax credits ( 1.2 ) ( 0.1 ) ( 1.3 ) ( 0.1 ) Credit for electricity from wind energy ( 4.8 ) ( 5.0 ) ( 5.2 ) ( 5.4 ) AFUDC equity, net ( 1.1 ) ( 1.1 ) ( 1.2 ) ( 1.2 ) Amortization of utility excess deferred tax - tax reform (a) ( 12.4 ) ( 2.0 ) ( 13.5 ) ( 2.2 ) Other, net, individually insignificant ( 0.4 ) ( 0.4 ) ( 0.3 ) ( 0.4 ) Effective income tax rate 7.3 % 18.7 % 5.7 % 17.9 % MGE Energy MGE Nine Months Ended September 30, 2021 2020 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.2 6.3 6.2 6.2 Amortized investment tax credits ( 1.4 ) ( 0.1 ) ( 1.5 ) ( 0.1 ) Credit for electricity from wind energy ( 6.0 ) ( 6.1 ) ( 6.6 ) ( 6.6 ) AFUDC equity, net ( 1.0 ) ( 1.3 ) ( 1.1 ) ( 1.4 ) Amortization of utility excess deferred tax - tax reform (a) ( 14.5 ) ( 2.4 ) ( 15.9 ) ( 2.6 ) Other, net, individually insignificant ( 0.1 ) ( 0.1 ) - - Effective income tax rate 4.2 % 17.3 % 2.1 % 16.5 % (a) Included are impacts of the 2017 Tax Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For the three months ended September 30, 2021 and 2020, MGE recognized $ 0.7 million. For the nine months ended September 30, 2021 and 2020, MGE recognized $ 2.0 million. Included in the 2021 rate settlement was a one-time return to customers of the electric portion of excess deferred taxes related to the 2017 Tax Act not restricted by IRS normalization rules. For the three and nine months ended September 30, 2021, MGE recognized $ 3.3 million and $ 9.9 million, respectively. |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Periodic Benefit Costs | The following table presents the components of net periodic benefit costs recognized. Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Pension Benefits Components of net periodic benefit cost: Service cost $ 1,432 $ 1,324 $ 4,296 $ 3,972 Interest cost 2,280 3,052 6,840 9,157 Expected return on assets ( 7,372 ) ( 6,807 ) ( 22,115 ) ( 20,422 ) Amortization of: Prior service credit ( 31 ) ( 31 ) ( 93 ) ( 93 ) Actuarial loss 1,662 1,339 4,985 4,018 Net periodic benefit (credit) cost $ ( 2,029 ) $ ( 1,123 ) $ ( 6,087 ) $ ( 3,368 ) Postretirement Benefits Components of net periodic benefit cost: Service cost $ 362 $ 316 $ 1,086 $ 948 Interest cost 387 570 1,161 1,709 Expected return on assets ( 819 ) ( 789 ) ( 2,457 ) ( 2,366 ) Amortization of: Transition obligation 1 1 2 2 Prior service credit ( 379 ) ( 667 ) ( 1,138 ) ( 2,001 ) Actuarial loss 123 55 370 165 Net periodic benefit (credit) cost $ ( 325 ) $ ( 514 ) $ ( 976 ) $ ( 1,543 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Contracts, Fiscal Year Maturity Schedule | The following table shows future commitments related to purchase contracts as of September 30, 2021: (In thousands) 2021 2022 2023 2024 2025 Thereafter Coal (a) $ 5,050 $ 12,400 $ 6,447 $ 1,617 $ 894 $ — Natural gas Transportation and storage (b) 6,665 23,305 23,919 23,919 23,919 25,210 Supply (c) 21,432 20,033 — — — — Other 3,897 3,192 1,676 890 104 892 $ 37,044 $ 58,930 $ 32,042 $ 26,426 $ 24,917 $ 26,102 (a) Total coal commitments for the Columbia and Elm Road Units, including transportation. Fuel procurement for MGE's jointly owned Columbia and Elm Road Units is handled by WPL and WEPCO, respectively, who are the operators of those facilities. (b) MGE's natural gas transportation and storage contracts require fixed monthly payments for firm supply pipeline transportation and storage capacity. The pricing components of the fixed monthly payments for the transportation and storage contracts are established by FERC but may be subject to change. (c) These commitments include market-based pricing. |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gross Notional Volume of Open Derivatives | The gross notional volume of open derivatives is as follows: September 30, 2021 December 31, 2020 Commodity derivative contracts 290,520 MWh 259,080 MWh Commodity derivative contracts 9,050,000 Dth 6,030,000 Dth FTRs 3,280 MW 2,869 MW PPA 400 MW 850 MW |
Fair Value of Derivative Instruments on the Balance Sheet | The following table summarizes the fair value of the derivative instruments on the consolidated balance sheets. All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, instruments are netted with the same counterparty under a master netting agreement as well as the netting of collateral. Derivative Derivative (In thousands) Assets Liabilities Balance Sheet Location September 30, 2021 Commodity derivative contracts (a) $ 13,426 $ 375 Other current assets Commodity derivative contracts (a) 559 — Other deferred charges FTRs 225 — Other current assets PPA N/A 160 Derivative liability (current) PPA N/A — Derivative liability (long-term) December 31, 2020 Commodity derivative contracts (b) $ 617 $ 593 Other current assets Commodity derivative contracts (b) 189 39 Other deferred charges FTRs — 23 Other current liabilities PPA N/A 10,160 Derivative liability (current) PPA N/A 3,980 Derivative liability (long-term) (a) As of September 30, 2021, MGE received collateral of $ 9.2 million from counterparties under a master netting agreement for outstanding exchange traded derivative positions. The fair value of the derivative asset disclosed in this table has not been reduced for the collateral received. (b) N o collateral was posted against derivative positions as of December 31, 2020 . |
Offsetting Assets | The following tables show the effect of netting arrangements for recognized derivative assets and liabilities that are subject to a master netting arrangement or similar arrangement on the consolidated balance sheets. Offsetting of Derivative Assets (In thousands) Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets September 30, 2021 Commodity derivative contracts $ 13,985 $ ( 375 ) $ ( 9,235 ) $ 4,375 FTRs 225 — — $ 225 December 31, 2020 Commodity derivative contracts $ 806 $ ( 632 ) $ — $ 174 |
Offsetting Liabilities | Offsetting of Derivative Liabilities (In thousands) Gross Amounts Gross Amounts Offset in Balance Sheets Collateral Posted Against Derivative Positions Net Amount Presented in Balance Sheets September 30, 2021 Commodity derivative contracts $ 375 $ ( 375 ) $ — $ — PPA 160 — — 160 December 31, 2020 Commodity derivative contracts $ 632 $ ( 632 ) $ — $ — FTRs 23 — — 23 PPA 14,140 — — 14,140 |
Derivative Gains and Losses in Balance Sheet | The following tables summarize the unrealized and realized gains/losses related to the derivative instruments on the consolidated balance sheets and the consolidated statements of income. 2021 2020 (In thousands) Current and Long-Term Regulatory Asset (Liability) Other Current Assets Current and Long-Term Regulatory Asset (Liability) Other Current Assets Three Months Ended September 30: Balance as of July 1, $ 2,581 $ 520 $ 20,400 $ 940 Unrealized gain ( 18,677 ) — ( 4,695 ) — Realized gain (loss) reclassified to a deferred 65 ( 65 ) ( 207 ) 207 Realized gain (loss) reclassified to income statement 2,356 311 ( 1,481 ) ( 164 ) Balance as of September 30, $ ( 13,675 ) $ 766 $ 14,017 $ 983 Nine Months Ended September 30: Balance as of January 1, $ 13,989 $ 1,162 $ 26,875 $ 1,100 Unrealized gain ( 30,314 ) — ( 8,032 ) — Realized (loss) gain reclassified to a deferred ( 351 ) 351 ( 1,999 ) 1,999 Realized gain (loss) reclassified to income statement 3,001 ( 747 ) ( 2,827 ) ( 2,116 ) Balance as of September 30, $ ( 13,675 ) $ 766 $ 14,017 $ 983 |
Derivative Gains and Losses in Income Statement | Realized Losses (Gains) 2021 2020 (In thousands) Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Fuel for Electric Generation/ Purchased Power Cost of Gas Sold Three Months Ended September 30: Commodity derivative contracts $ ( 1,586 ) $ — $ 680 $ 28 FTRs ( 132 ) — 184 — PPA ( 949 ) — 753 — Nine Months Ended September 30: Commodity derivative contracts $ ( 2,107 ) $ 1,055 $ 2,303 $ 1,682 FTRs ( 443 ) — 78 — PPA ( 759 ) — 880 — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Market Value of Financial Instruments | The estimated fair market value of financial instruments are as follows: September 30, 2021 December 31, 2020 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value MGE Energy Assets: Cash and cash equivalents $ 70,454 $ 70,454 $ 44,738 $ 44,738 Liabilities: Short-term debt - commercial paper — — 52,500 52,500 Long-term debt (a) 624,653 692,987 528,220 639,271 MGE Assets: Cash and cash equivalents $ 57,003 $ 57,003 $ 4,103 $ 4,103 Liabilities: Short-term debt - commercial paper — — 52,500 52,500 Long-term debt (a) 624,653 692,987 528,220 639,271 (a) Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.5 million and $ 4.1 million as of September 30, 2021, and December 31, 2020 , respectively. |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis. Fair Value as of September 30, 2021 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 14,210 $ 10,451 $ — $ 3,759 Exchange-traded investments 1,124 1,124 — — Total Assets $ 15,334 $ 11,575 $ — $ 3,759 Liabilities: Derivatives, net $ 535 $ 365 $ — $ 170 Deferred compensation 3,496 — 3,496 — Total Liabilities $ 4,031 $ 365 $ 3,496 $ 170 MGE Assets: Derivatives, net (b) $ 14,210 $ 10,451 $ — $ 3,759 Exchange-traded investments 244 244 — — Total Assets $ 14,454 $ 10,695 $ — $ 3,759 Liabilities: Derivatives, net $ 535 $ 365 $ — $ 170 Deferred compensation 3,496 — 3,496 — Total Liabilities $ 4,031 $ 365 $ 3,496 $ 170 Fair Value as of December 31, 2020 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 806 $ 436 $ — $ 370 Exchange-traded investments 1,750 1,750 — — Total Assets $ 2,556 $ 2,186 $ — $ 370 Liabilities: Derivatives, net (b) $ 14,795 $ 370 $ — $ 14,425 Deferred compensation 3,509 — 3,509 — Total Liabilities $ 18,304 $ 370 $ 3,509 $ 14,425 MGE Assets: Derivatives, net (b) $ 806 $ 436 $ — $ 370 Exchange-traded investments 603 603 — — Total Assets $ 1,409 $ 1,039 $ — $ 370 Liabilities: Derivatives, net (b) $ 14,795 $ 370 $ — $ 14,425 Deferred compensation 3,509 — 3,509 — Total Liabilities $ 18,304 $ 370 $ 3,509 $ 14,425 (b) As of September 30, 2021, MGE received collateral of $ 9.2 million from counterparties under a master netting agreement for outstanding exchange traded derivative positions. The fair value of the derivative asset disclosed in this table has not been reduced for the collateral received. No collateral was posted against derivative positions owed to counterparties under a master netting agreement on the consolidated balance sheet as of December 31, 2020 . |
Significant Unobservable Inputs | The following table presents the significant unobservable inputs used in the pricing model. Model Input September 30, December 31, Significant Unobservable Inputs 2021 2020 Basis adjustment: On peak 95.5 % 94.2 % Off peak 96.4 % 94.5 % Counterparty fuel mix: Internal generation - range 41 %- 66 % 46 %- 65 % Internal generation - weighted average 54.2 % 56.5 % Purchased power - range 59 %- 34 % 54 %- 35 % Purchased power - weighted average 45.8 % 43.5 % |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes the changes in Level 3 commodity derivative assets and liabilities measured at fair value on a recurring basis. Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Beginning balance $ ( 4,533 ) $ ( 21,023 ) $ ( 14,055 ) $ ( 26,456 ) Realized and unrealized gains (losses): Included in regulatory assets — 5,296 — 10,729 Included in regulatory liability 8,122 — 17,644 — Included in other comprehensive income — — — — Included in earnings 2,476 ( 1,524 ) 2,686 ( 4,687 ) Included in current assets — ( 37 ) 175 ( 101 ) Purchases 6,638 5,505 18,899 15,837 Sales — — — — Issuances — — — — Settlements ( 9,114 ) ( 3,944 ) ( 21,760 ) ( 11,049 ) Balance as of September 30, $ 3,589 $ ( 15,727 ) $ 3,589 $ ( 15,727 ) Total gains (losses) included in earnings attributed to (c) $ — $ — $ — $ — (c) MGE's exchange-traded derivative contracts, over-the-counter party transactions, purchased power agreement, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability. |
Gains and Losses Included in Income for Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis (c) . Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Purchased power expense $ 2,476 $ ( 1,496 ) $ 3,113 $ ( 4,343 ) Cost of gas sold expense — ( 28 ) ( 427 ) ( 344 ) Total $ 2,476 $ ( 1,524 ) $ 2,686 $ ( 4,687 ) (c) MGE's exchange-traded derivative contracts, over-the-counter party transactions, purchased power agreement, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability. |
Joint Plant (Tables)
Joint Plant (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Public Utilities Property Plant And Equipment [Abstract] | |
Schedule Of Jointly Owned Utility Plants | MGE currently has ongoing jointly-owned solar generation construction projects, as shown in the following table. Incurred costs are reflected in "Construction work in progress" on the consolidated balance sheets. Ownership Share of Share of Costs incurred Date of Project Interest Generation Estimated Costs 2021 (a) Operation Badger Hollow I (b) 33 % 50 MW $ 65 million $ 57.8 million Q4 2021 (c) Badger Hollow II (b) 33 % 50 MW $ 65 million $ 11.5 million December 2022 (c) (a) Excluding AFUDC. (b) The Badger Hollow I and Badger Hollow II solar farms are located in southwestern Wisconsin in Iowa County, near the villages of Montfort and Cobb. (c) Estimated date of commercial operation. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenues disaggregated by revenue source were as follows: Three Months Ended Nine Months Ended (In thousands) September 30, September 30, Electric revenues 2021 2020 2021 2020 Residential $ 44,398 $ 45,009 $ 117,229 $ 113,311 Commercial 60,996 57,822 161,270 152,844 Industrial 3,380 3,234 9,469 8,797 Other-retail/municipal 9,478 8,620 26,340 24,874 Total retail 118,252 114,685 314,308 299,826 Sales to the market 3,071 1,554 8,854 2,604 Other revenues 316 115 948 660 Total electric revenues 121,639 116,354 324,110 303,090 Gas revenues Residential 14,643 12,436 72,286 61,328 Commercial/Industrial 8,069 5,052 42,972 32,961 Total retail 22,712 17,488 115,258 94,289 Gas transportation 1,256 1,152 4,589 4,179 Other revenues 52 3 97 100 Total gas revenues 24,020 18,643 119,944 98,568 Non-regulated energy revenues 214 214 464 466 Total Operating Revenue $ 145,873 $ 135,211 $ 444,518 $ 402,124 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | (In thousands) Nonregulated Transmission All Consolidation/ Consolidated MGE Energy Electric Gas Energy Investment Others Elimination Total Three Months Ended September 30, 2021 Operating revenues from external $ 121,639 $ 24,020 $ 214 $ — $ — $— $ 145,873 Interdepartmental revenues 89 6,689 10,224 — — ( 17,002 ) — Total operating revenues 121,728 30,709 10,438 — — ( 17,002 ) 145,873 Equity in earnings of investments — — — 2,532 — — 2,532 Net income (loss) 27,833 ( 218 ) 5,386 1,842 74 — 34,917 Three Months Ended September 30, 2020 Operating revenues from external $ 116,354 $ 18,643 $ 214 $ — $ — $— $ 135,211 Interdepartmental revenues 209 3,494 10,102 — — ( 13,805 ) — Total operating revenues 116,563 22,137 10,316 — — ( 13,805 ) 135,211 Equity in earnings of investments — — — 2,353 — — 2,353 Net income (loss) 24,761 221 5,251 1,710 ( 149 ) — 31,794 Nine Months Ended September 30, 2021 Operating revenues from external $ 324,110 $ 119,944 $ 464 $ — $ — $— $ 444,518 Interdepartmental revenues 316 14,377 30,595 — — ( 45,288 ) — Total operating revenues 324,426 134,321 31,059 — — ( 45,288 ) 444,518 Equity in earnings of investments — — — 7,440 — — 7,440 Net income (loss) 59,979 11,615 15,935 5,413 ( 241 ) — 92,701 Nine Months Ended September 30, 2020 Operating revenues from external $ 303,090 $ 98,568 $ 466 $ — $ — $— $ 402,124 Interdepartmental revenues 584 9,300 30,248 — — ( 40,132 ) — Total operating revenues 303,674 107,868 30,714 — — ( 40,132 ) 402,124 Equity in earnings of investments — — — 7,780 — — 7,780 Net income (loss) 46,439 9,216 15,536 5,659 ( 228 ) — 76,622 (In thousands) Nonregulated Consolidation/ Consolidated MGE Electric Gas Energy Elimination Total Three Months Ended September 30, 2021 Operating revenues from external $ 121,639 $ 24,020 $ 214 $— $ 145,873 Interdepartmental revenues 89 6,689 10,224 ( 17,002 ) — Total operating revenues 121,728 30,709 10,438 ( 17,002 ) 145,873 Net income (loss) attributable to MGE 27,833 ( 218 ) 5,386 ( 5,627 ) 27,374 Three Months Ended September 30, 2020 Operating revenues from external $ 116,354 $ 18,643 $ 214 $— $ 135,211 Interdepartmental revenues 209 3,494 10,102 ( 13,805 ) — Total operating revenues 116,563 22,137 10,316 ( 13,805 ) 135,211 Net income attributable to MGE 24,761 221 5,251 ( 5,493 ) 24,740 Nine Months Ended September 30, 2021 Operating revenues from external $ 324,110 $ 119,944 $ 464 $— $ 444,518 Interdepartmental revenues 316 14,377 30,595 ( 45,288 ) — Total operating revenues 324,426 134,321 31,059 ( 45,288 ) 444,518 Net income attributable to MGE 59,979 11,615 15,935 ( 16,755 ) 70,774 Nine Months Ended September 30, 2020 Operating revenues from external $ 303,090 $ 98,568 $ 466 $— $ 402,124 Interdepartmental revenues 584 9,300 30,248 ( 40,132 ) — Total operating revenues 303,674 107,868 30,714 ( 40,132 ) 402,124 Net income attributable to MGE 46,439 9,216 15,536 ( 16,754 ) 54,437 |
Summary of Significant Accoun_3
Summary of Significant Accounting Principles (Details-1) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Cash Cash Equivalents And Restricted Cash [Line Items] | ||||
Cash and cash equivalents | $ 70,454 | $ 44,738 | ||
Restricted cash | 641 | 644 | ||
Receivable - margin account | 550 | 1,657 | ||
Cash, cash equivalents, and restricted cash | 71,645 | 47,039 | $ 54,092 | $ 25,814 |
MGE [Member] | ||||
Cash Cash Equivalents And Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 57,003 | 4,103 | ||
Restricted cash | 641 | 644 | ||
Receivable - margin account | 550 | 1,657 | ||
Cash, cash equivalents, and restricted cash | $ 58,194 | $ 6,404 | $ 6,205 | $ 5,529 |
Summary of Significant Accoun_4
Summary of Significant Accounting Principles (Details-2) - Columbia Units [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Jointly Owned Utility Plant Interests [Line Items] | |
Net book value of property, plant, and equipment | $ 161,600 |
Impairment of Long-Lived Assets | |
Impairment of long-lived assets | $ 0 |
Investment in ATC and ATC Hol_3
Investment in ATC and ATC Holdco (Details-1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Equity earnings from investment | $ 7,440 | $ 7,780 | ||
Dividends from investments | 5,842 | 6,929 | ||
Capital contributions to investments | 4,227 | 4,007 | ||
MGE Transco [Member] | ATC [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity earnings from investment | $ 2,500 | $ 2,319 | 7,333 | 7,724 |
Dividends from investments | 1,942 | 2,349 | 5,842 | 6,620 |
Capital contributions to investments | $ 0 | $ 359 | $ 0 | $ 892 |
Investment in ATC and ATC Hol_4
Investment in ATC and ATC Holdco (Details-2) - ATC [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Operating revenues | $ 186,785 | $ 187,833 | $ 561,379 | $ 577,705 |
Operating expenses | (91,340) | (92,975) | (278,828) | (285,697) |
Other income, net | 123 | 643 | 1,164 | 1,924 |
Interest expense, net | (28,674) | (28,801) | (86,337) | (83,947) |
Earnings before members' income taxes | $ 66,894 | $ 66,700 | $ 197,378 | $ 209,985 |
Investment in ATC and ATC Hol_5
Investment in ATC and ATC Holdco (Details-3) - ATC [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Related party expenses | $ 8 | $ 7.7 | $ 24 | $ 23 | |
Due from related parties | $ 4.7 | $ 4.7 | $ 2.6 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Reconciliation of tax provision to statutory federal income tax rate [Abstract] | |||||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |
State income taxes, net of federal benefit | 6.20% | 6.30% | 6.20% | 6.30% | |
Amortized investment tax credits | (1.20%) | (0.10%) | (1.40%) | (0.10%) | |
Credit for electricity from wind energy | (4.80%) | (5.00%) | (6.00%) | (6.10%) | |
AFUDC equity, net | (1.10%) | (1.10%) | (1.00%) | (1.30%) | |
Amortization of utility excess deferred tax - tax reform | [1] | (12.40%) | (2.00%) | (14.50%) | (2.40%) |
Other, net, individually significant | (0.40%) | (0.40%) | (0.10%) | (0.10%) | |
Effective income tax rate | 7.30% | 18.70% | 4.20% | 17.30% | |
Excess Deferred Taxes, Tax Cuts And Jobs Act [Member] | |||||
Effects Of The Tax Cuts And Jobs Act [Abstract] | |||||
Excess deferred tax - Income statement effect | $ 0.7 | $ 0.7 | $ 2 | $ 2 | |
Return of unprotected excess deferred taxes | $ 3.3 | $ 9.9 | |||
MGE [Member] | |||||
Reconciliation of tax provision to statutory federal income tax rate [Abstract] | |||||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |
State income taxes, net of federal benefit | 6.20% | 6.20% | 6.20% | 6.20% | |
Amortized investment tax credits | (1.30%) | (0.10%) | (1.50%) | (0.10%) | |
Credit for electricity from wind energy | (5.20%) | (5.40%) | (6.60%) | (6.60%) | |
AFUDC equity, net | (1.20%) | (1.20%) | (1.10%) | (1.40%) | |
Amortization of utility excess deferred tax - tax reform | [1] | (13.50%) | (2.20%) | (15.90%) | (2.60%) |
Other, net, individually significant | (0.30%) | (0.40%) | 0.00% | 0.00% | |
Effective income tax rate | 5.70% | 17.90% | 2.10% | 16.50% | |
[1] | Included are impacts of the 2017 Tax Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For the three months ended September 30, 2021 and 2020, MGE recognized $ 0.7 million. For the nine months ended September 30, 2021 and 2020, MGE recognized $ 2.0 million. Included in the 2021 rate settlement was a one-time return to customers of the electric portion of excess deferred taxes related to the 2017 Tax Act not restricted by IRS normalization rules. For the three and nine months ended September 30, 2021, MGE recognized $ 3.3 million and $ 9.9 million, respectively. |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Deferred Pension And Other Postretirement Benefit Plan Costs Recovered [Abstract] | ||||
Deferred (recognized) pension and OPEB costs | $ (300) | $ (200) | $ (3,900) | $ (700) |
Deferred savings from 2021 employee benefit plan costs | 2,800 | 5,400 | ||
Pension Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 1,432 | 1,324 | 4,296 | 3,972 |
Interest cost | 2,280 | 3,052 | 6,840 | 9,157 |
Expected return on assets | (7,372) | (6,807) | (22,115) | (20,422) |
Amortization of: | ||||
Prior service credit | (31) | (31) | (93) | (93) |
Actuarial loss | 1,662 | 1,339 | 4,985 | 4,018 |
Net periodic benefit (credit) cost | (2,029) | (1,123) | (6,087) | (3,368) |
Postretirement Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 362 | 316 | 1,086 | 948 |
Interest cost | 387 | 570 | 1,161 | 1,709 |
Expected return on assets | (819) | (789) | (2,457) | (2,366) |
Amortization of: | ||||
Transition obligation | 1 | 1 | 2 | 2 |
Prior service credit | (379) | (667) | (1,138) | (2,001) |
Actuarial loss | 123 | 55 | 370 | 165 |
Net periodic benefit (credit) cost | $ (325) | $ (514) | $ (976) | $ (1,543) |
Equity and Financing Arrangem_2
Equity and Financing Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Aug. 27, 2021 | Jun. 15, 2021 | |
Common Stock [Abstract] | |||||
Common stock issued during period | 1,500,000 | ||||
Common stock issued during period under the stock plan | 0 | 0 | |||
Issuance of common stock, net | $ 0 | $ 79,635 | |||
Dilutive Shares Calculation [Abstract] | |||||
Shares included in diluted earnings per share | 13,021 | ||||
Debt Issuance, 2.48% due 2031 | Other Long-Term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 60,000 | ||||
Interest rate | 2.48% | ||||
Term | 10 years | ||||
Debt Issuance, 2.63% due 2033 | Other Long-Term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 40,000 | ||||
Interest rate | 2.63% | ||||
Term | 12 years |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) $ in Millions | Feb. 19, 2021 | Jan. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense (benefit) | $ 0.3 | $ 0.2 | $ 1.6 | $ 0.3 | ||
2021 Long Term Incentive Plan [Member] | Performance Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted during period (in units) | 10,187 | |||||
2021 Long Term Incentive Plan [Member] | Restricted Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted during period (in units) | 16,267 | |||||
2006 Performance Unit Plan and 2013 Director Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cash payments distributed related to awards previously granted and now payable | $ 1.9 |
Commitments and Contingencies_2
Commitments and Contingencies (Details-1) $ in Millions | Sep. 30, 2021USD ($) |
Columbia Units [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Projected Costs For Environmental Regulation | $ 4 |
Elm Road Units [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Projected Costs For Environmental Regulation | $ 4 |
Commitments and Contingencies_3
Commitments and Contingencies (Details-2) $ in Thousands | Sep. 30, 2021USD ($) | |
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2021 | $ 37,044 | |
Purchase obligation, 2022 | 58,930 | |
Purchase obligation, 2023 | 32,042 | |
Purchase obligation, 2024 | 26,426 | |
Purchase obligation, 2025 | 24,917 | |
Purchase obligation, Thereafter | 26,102 | |
Coal [Member] | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2021 | 5,050 | [1] |
Purchase obligation, 2022 | 12,400 | [1] |
Purchase obligation, 2023 | 6,447 | [1] |
Purchase obligation, 2024 | 1,617 | [1] |
Purchase obligation, 2025 | 894 | [1] |
Purchase obligation, Thereafter | 0 | [1] |
Natural Gas, Transportation and Storage [Member] | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2021 | 6,665 | [2] |
Purchase obligation, 2022 | 23,305 | [2] |
Purchase obligation, 2023 | 23,919 | [2] |
Purchase obligation, 2024 | 23,919 | [2] |
Purchase obligation, 2025 | 23,919 | [2] |
Purchase obligation, Thereafter | 25,210 | [2] |
Natual Gas, Supply [Member] | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2021 | 21,432 | [3] |
Purchase obligation, 2022 | 20,033 | [3] |
Purchase obligation, 2023 | 0 | [3] |
Purchase obligation, 2024 | 0 | [3] |
Purchase obligation, 2025 | 0 | [3] |
Purchase obligation, Thereafter | 0 | [3] |
Other [Member] | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2021 | 3,897 | |
Purchase obligation, 2022 | 3,192 | |
Purchase obligation, 2023 | 1,676 | |
Purchase obligation, 2024 | 890 | |
Purchase obligation, 2025 | 104 | |
Purchase obligation, Thereafter | $ 892 | |
[1] | Total coal commitments for the Columbia and Elm Road Units, including transportation. Fuel procurement for MGE's jointly owned Columbia and Elm Road Units is handled by WPL and WEPCO, respectively, who are the operators of those facilities. | |
[2] | MGE's natural gas transportation and storage contracts require fixed monthly payments for firm supply pipeline transportation and storage capacity. The pricing components of the fixed monthly payments for the transportation and storage contracts are established by FERC but may be subject to change. | |
[3] | These commitments include market-based pricing. |
Rate Matters (Details)
Rate Matters (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fuel Rules [Abstract] | |||||||
Deferred fuel rules monitored costs | $ 0 | $ 1,500 | |||||
Rate Matters For Future Periods [Member] | Subsequent Event [Member] | |||||||
Rate Proceedings [Abstract] | |||||||
Proposed return on equity, percentage | 9.80% | ||||||
Proposed equity capital structure, percentage | 55.60% | ||||||
PSCW [Member] | MGE [Member] | |||||||
Rate Proceedings [Abstract] | |||||||
Authorized return on equity, percentage | 9.80% | 9.80% | 9.80% | ||||
Approved equity capital structure, percentage | 55.80% | 56.10% | 56.60% | ||||
Fuel Rules [Abstract] | |||||||
Fuel rules, bandwidth | 1.00% | 2.00% | |||||
Fuel rules, electric fuel deferred costs upper threshold | 101.00% | ||||||
Fuel rules, electric fuel deferred costs lower threshold | 99.00% | ||||||
PSCW [Member] | MGE [Member] | Fuel Rules Refund, 2020 [Member] | Subsequent Event [Member] | |||||||
Fuel Rules [Abstract] | |||||||
Return of electric fuel credit, total | $ 3,200 | ||||||
Electric Rate Proceeding [Member] | Rate Matters For Future Periods [Member] | Subsequent Event [Member] | |||||||
Rate Proceedings [Abstract] | |||||||
Proposed rate increase (decrease), percentage | 5.16% | ||||||
Electric Rate Proceeding [Member] | PSCW [Member] | MGE [Member] | |||||||
Rate Proceedings [Abstract] | |||||||
Authorized rate increase (decrease), percentage | 0.00% | (0.84%) | (2.24%) | ||||
Authorized rate increase (decrease), amount | $ (3,400) | $ (9,200) | |||||
Electric Rate Proceeding [Member] | PSCW [Member] | Rate Matters For Future Periods [Member] | MGE [Member] | |||||||
Effects Of The Tax Cuts And Jobs Act [Abstract] | |||||||
Return of unprotected excess deferred taxes | $ 18,200 | ||||||
Gas Rate Proceeding [Member] | Rate Matters For Future Periods [Member] | Subsequent Event [Member] | |||||||
Rate Proceedings [Abstract] | |||||||
Proposed rate increase (decrease), percentage | 0.96% | 2.15% | |||||
Gas Rate Proceeding [Member] | PSCW [Member] | MGE [Member] | |||||||
Rate Proceedings [Abstract] | |||||||
Authorized rate increase (decrease), percentage | 4.00% | 1.46% | 1.06% | ||||
Authorized rate increase (decrease), amount | $ 2,400 | $ 1,700 |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments (Details-1) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021USD ($)Dth1MWhMW | Dec. 31, 2020USD ($)Dth1MWhMW | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |||
Derivative fair values [Abstract] | ||||||||
Collateral posted against derivative positions | $ 9,200 | $ 0 | ||||||
Other Current Assets [Member] | ||||||||
Derivative fair values [Abstract] | ||||||||
Derivative fair value, net | 766 | 1,162 | $ 520 | $ 983 | $ 940 | $ 1,100 | ||
Commodity Contracts And Financial Transimission Rights [Member] | ||||||||
Derivative fair values [Abstract] | ||||||||
Derivative fair value, net | $ 13,800 | $ 200 | ||||||
Commodity Derivative Contracts [Member] | ||||||||
Gross Notional Volume of Open Derivatives | ||||||||
Notional amount, energy measure (in MWh) | MWh | 290,520 | 259,080 | ||||||
Notional amount, decatherm measure (in Dth) | Dth1 | 9,050,000 | 6,030,000 | ||||||
Derivative fair values [Abstract] | ||||||||
Asset Derivatives, fair value, gross basis | $ 13,985 | $ 806 | ||||||
Liability Derivatives, fair value, gross basis | 375 | 632 | ||||||
Collateral posted against derivative positions | 9,235 | 0 | ||||||
Commodity Derivative Contracts [Member] | Other Current Assets [Member] | ||||||||
Derivative fair values [Abstract] | ||||||||
Asset Derivatives, fair value, gross basis | 13,426 | [1] | 617 | [2] | ||||
Liability Derivatives, fair value, gross basis | 375 | [1] | 593 | [2] | ||||
Commodity Derivative Contracts [Member] | Other Deferred Charges [Member] | ||||||||
Derivative fair values [Abstract] | ||||||||
Asset Derivatives, fair value, gross basis | 559 | [1] | 189 | [2] | ||||
Liability Derivatives, fair value, gross basis | 0 | [1] | $ 39 | [2] | ||||
Commodity Derivative Contracts [Member] | Cash Flow Hedging [Member] | ||||||||
Derivative fair values [Abstract] | ||||||||
Collateral posted against derivative positions | $ 9,200 | |||||||
Energy Related Commodity Contract [Member] | Cash Flow Hedging [Member] | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Maximum term of derivative hedging contract | 4 years | |||||||
Financial Transmission Rights [Member] | ||||||||
Gross Notional Volume of Open Derivatives | ||||||||
Notional amount, power measure (in MW) | MW | 3,280 | 2,869 | ||||||
Derivative fair values [Abstract] | ||||||||
Asset Derivatives, fair value, gross basis | $ 225 | |||||||
Liability Derivatives, fair value, gross basis | $ 23 | |||||||
Collateral posted against derivative positions | 0 | |||||||
Financial Transmission Rights [Member] | Other Current Assets [Member] | ||||||||
Derivative fair values [Abstract] | ||||||||
Asset Derivatives, fair value, gross basis | 225 | |||||||
Liability Derivatives, fair value, gross basis | $ 0 | |||||||
Financial Transmission Rights [Member] | Other Current Liabilities [Member] | ||||||||
Derivative fair values [Abstract] | ||||||||
Asset Derivatives, fair value, gross basis | 0 | |||||||
Liability Derivatives, fair value, gross basis | $ 23 | |||||||
PPA [Member] | ||||||||
Gross Notional Volume of Open Derivatives | ||||||||
Notional amount, power measure (in MW) | MW | 400 | 850 | ||||||
Derivative fair values [Abstract] | ||||||||
Derivative fair value, net | $ (200) | $ (14,100) | ||||||
Liability Derivatives, fair value, gross basis | 160 | 14,140 | ||||||
PPA [Member] | Derivative Liability (Current) [Member] | ||||||||
Derivative fair values [Abstract] | ||||||||
Liability Derivatives, fair value, gross basis | 160 | 10,160 | ||||||
PPA [Member] | Derivative Liability (Long-term) [Member] | ||||||||
Derivative fair values [Abstract] | ||||||||
Liability Derivatives, fair value, gross basis | $ 0 | $ 3,980 | ||||||
[1] | As of September 30, 2021, MGE received collateral of $ 9.2 million from counterparties under a master netting agreement for outstanding exchange traded derivative positions. The fair value of the derivative asset disclosed in this table has not been reduced for the collateral received. | |||||||
[2] | N o collateral was posted against derivative positions as of December 31, 2020 . |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments (Details-2) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Offsetting Assets [Line Items] | ||
Collateral posted against derivative positions | $ (9,200) | $ 0 |
Commodity Derivative Contracts [Member] | ||
Offsetting Assets [Line Items] | ||
Gross amounts | 13,985 | 806 |
Gross amounts offset in balance sheet | (375) | (632) |
Collateral posted against derivative positions | (9,235) | 0 |
Net amount presented in balance sheet | 4,375 | $ 174 |
Financial Transmission Rights [Member] | ||
Offsetting Assets [Line Items] | ||
Gross amounts | 225 | |
Gross amounts offset in balance sheet | 0 | |
Collateral posted against derivative positions | 0 | |
Net amount presented in balance sheet | $ 225 |
Derivative and Hedging Instru_5
Derivative and Hedging Instruments (Details-3) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Commodity Derivative Contracts [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts | $ 375 | $ 632 |
Gross amounts offset in balance sheet | (375) | (632) |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | 0 | 0 |
Financial Transmission Rights [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts | 23 | |
Gross amounts offset in balance sheet | 0 | |
Collateral posted against derivative positions | 0 | |
Net amount presented in balance sheet | 23 | |
Purchased Power Agreement [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts | 160 | 14,140 |
Gross amounts offset in balance sheet | 0 | 0 |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | $ 160 | $ 14,140 |
Derivative and Hedging Instru_6
Derivative and Hedging Instruments (Details-4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Current and Long-Term Regulatory Asset (Liability) [Member] | ||||
Change In Derivative Fair Value [Roll Forward] | ||||
Beginning balance, | $ 2,581 | $ 20,400 | $ 13,989 | $ 26,875 |
Unrealized gain | (18,677) | (4,695) | (30,314) | (8,032) |
Realized (loss) gain reclassified to a deferred account | 65 | (207) | (351) | (1,999) |
Realized (loss) gain reclassified to income statement | 2,356 | (1,481) | 3,001 | (2,827) |
Ending balance, | (13,675) | 14,017 | (13,675) | 14,017 |
Other Current Assets [Member] | ||||
Change In Derivative Fair Value [Roll Forward] | ||||
Beginning balance, | 520 | 940 | 1,162 | 1,100 |
Unrealized gain | 0 | 0 | 0 | 0 |
Realized (loss) gain reclassified to a deferred account | (65) | 207 | 351 | 1,999 |
Realized (loss) gain reclassified to income statement | 311 | (164) | (747) | (2,116) |
Ending balance, | $ 766 | $ 983 | $ 766 | $ 983 |
Derivative and Hedging Instru_7
Derivative and Hedging Instruments (Details-5) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)Counterparty | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Counterparty | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Counterparties in net liability position or default [Abstract] | |||||
Derivative, net liability position of counterparties | $ 0 | $ 0 | $ 0 | ||
Number of counterparties in default | Counterparty | 0 | 0 | |||
Commodity Derivative Contracts [Member] | Fuel For Electric Generation Purchased Power [Member] | |||||
Realized losses (gains) on income statement [Line Items] | |||||
Realized losses (gains) on income statement | $ (1,586) | $ 680 | $ (2,107) | $ 2,303 | |
Commodity Derivative Contracts [Member] | Cost Of Gas Sold Expense [Member] | |||||
Realized losses (gains) on income statement [Line Items] | |||||
Realized losses (gains) on income statement | 0 | 28 | 1,055 | 1,682 | |
Financial Transmission Rights [Member] | Fuel For Electric Generation Purchased Power [Member] | |||||
Realized losses (gains) on income statement [Line Items] | |||||
Realized losses (gains) on income statement | (132) | 184 | (443) | 78 | |
Financial Transmission Rights [Member] | Cost Of Gas Sold Expense [Member] | |||||
Realized losses (gains) on income statement [Line Items] | |||||
Realized losses (gains) on income statement | 0 | 0 | 0 | 0 | |
Purchased Power Agreement [Member] | |||||
Derivative collateral required to be posted for PPA [Abstract] | |||||
Minimum collateral that may be required to be posted | 20,000 | 20,000 | |||
Maximum collateral that may be required to be posted | 40,000 | 40,000 | |||
Collateral posted | 0 | 0 | |||
Purchased Power Agreement [Member] | Fuel For Electric Generation Purchased Power [Member] | |||||
Realized losses (gains) on income statement [Line Items] | |||||
Realized losses (gains) on income statement | (949) | 753 | (759) | 880 | |
Purchased Power Agreement [Member] | Cost Of Gas Sold Expense [Member] | |||||
Realized losses (gains) on income statement [Line Items] | |||||
Realized losses (gains) on income statement | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details-1) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Liabilities: | |||
Unamortized discount and debt issuance costs, net | $ 4,500 | $ 4,100 | |
Carrying Amount [Member] | |||
Assets: | |||
Cash and cash equivalents | 70,454 | 44,738 | |
Liabilities: | |||
Short-term debt - commercial paper | 0 | 52,500 | |
Long-term debt | [1] | 624,653 | 528,220 |
Fair Value [Member] | |||
Assets: | |||
Cash and cash equivalents | 70,454 | 44,738 | |
Liabilities: | |||
Short-term debt - commercial paper | 0 | 52,500 | |
Long-term debt | [1] | 692,987 | 639,271 |
MGE [Member] | |||
Liabilities: | |||
Unamortized discount and debt issuance costs, net | 4,500 | 4,100 | |
MGE [Member] | Carrying Amount [Member] | |||
Assets: | |||
Cash and cash equivalents | 57,003 | 4,103 | |
Liabilities: | |||
Short-term debt - commercial paper | 0 | 52,500 | |
Long-term debt | [1] | 624,653 | 528,220 |
MGE [Member] | Fair Value [Member] | |||
Assets: | |||
Cash and cash equivalents | 57,003 | 4,103 | |
Liabilities: | |||
Short-term debt - commercial paper | 0 | 52,500 | |
Long-term debt | [1] | $ 692,987 | $ 639,271 |
[1] | Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.5 million and $ 4.1 million as of September 30, 2021, and December 31, 2020 , respectively. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details-2) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | ||
Assets: | ||||
Collateral posted against derivative positions | $ 9,200 | $ 0 | ||
Recurring [Member] | ||||
Assets: | ||||
Derivatives | [1] | 14,210 | 806 | |
Total Assets | 15,334 | 2,556 | ||
Liabilities: | ||||
Derivatives | 535 | 14,795 | [1] | |
Deferred compensation | 3,496 | 3,509 | ||
Total liabilities | 4,031 | 18,304 | ||
Recurring [Member] | Exchange Traded [Member] | ||||
Assets: | ||||
Available-for-sale securities | 1,124 | 1,750 | ||
Recurring [Member] | Level 1 [Member] | ||||
Assets: | ||||
Derivatives | [1] | 10,451 | 436 | |
Total Assets | 11,575 | 2,186 | ||
Liabilities: | ||||
Derivatives | 365 | 370 | [1] | |
Deferred compensation | 0 | 0 | ||
Total liabilities | 365 | 370 | ||
Recurring [Member] | Level 1 [Member] | Exchange Traded [Member] | ||||
Assets: | ||||
Available-for-sale securities | 1,124 | 1,750 | ||
Recurring [Member] | Level 2 [Member] | ||||
Assets: | ||||
Derivatives | [1] | 0 | 0 | |
Total Assets | 0 | 0 | ||
Liabilities: | ||||
Derivatives | 0 | 0 | [1] | |
Deferred compensation | 3,496 | 3,509 | ||
Total liabilities | 3,496 | 3,509 | ||
Recurring [Member] | Level 2 [Member] | Exchange Traded [Member] | ||||
Assets: | ||||
Available-for-sale securities | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | ||||
Assets: | ||||
Derivatives | [1] | 3,759 | 370 | |
Total Assets | 3,759 | 370 | ||
Liabilities: | ||||
Derivatives | 170 | 14,425 | [1] | |
Deferred compensation | 0 | 0 | ||
Total liabilities | 170 | 14,425 | ||
Recurring [Member] | Level 3 [Member] | Exchange Traded [Member] | ||||
Assets: | ||||
Available-for-sale securities | 0 | 0 | ||
MGE [Member] | Recurring [Member] | ||||
Assets: | ||||
Derivatives | [1] | 14,210 | 806 | |
Total Assets | 14,454 | 1,409 | ||
Liabilities: | ||||
Derivatives | 535 | 14,795 | [1] | |
Deferred compensation | 3,496 | 3,509 | ||
Total liabilities | 4,031 | 18,304 | ||
MGE [Member] | Recurring [Member] | Exchange Traded [Member] | ||||
Assets: | ||||
Available-for-sale securities | 244 | 603 | ||
MGE [Member] | Recurring [Member] | Level 1 [Member] | ||||
Assets: | ||||
Derivatives | [1] | 10,451 | 436 | |
Total Assets | 10,695 | 1,039 | ||
Liabilities: | ||||
Derivatives | 365 | 370 | [1] | |
Deferred compensation | 0 | 0 | ||
Total liabilities | 365 | 370 | ||
MGE [Member] | Recurring [Member] | Level 1 [Member] | Exchange Traded [Member] | ||||
Assets: | ||||
Available-for-sale securities | 244 | 603 | ||
MGE [Member] | Recurring [Member] | Level 2 [Member] | ||||
Assets: | ||||
Derivatives | [1] | 0 | 0 | |
Total Assets | 0 | 0 | ||
Liabilities: | ||||
Derivatives | 0 | 0 | [1] | |
Deferred compensation | 3,496 | 3,509 | ||
Total liabilities | 3,496 | 3,509 | ||
MGE [Member] | Recurring [Member] | Level 2 [Member] | Exchange Traded [Member] | ||||
Assets: | ||||
Available-for-sale securities | 0 | 0 | ||
MGE [Member] | Recurring [Member] | Level 3 [Member] | ||||
Assets: | ||||
Derivatives | [1] | 3,759 | 370 | |
Total Assets | 3,759 | 370 | ||
Liabilities: | ||||
Derivatives | 170 | 14,425 | [1] | |
Deferred compensation | 0 | 0 | ||
Total liabilities | 170 | 14,425 | ||
MGE [Member] | Recurring [Member] | Level 3 [Member] | Exchange Traded [Member] | ||||
Assets: | ||||
Available-for-sale securities | $ 0 | $ 0 | ||
[1] | As of September 30, 2021, MGE received collateral of $ 9.2 million from counterparties under a master netting agreement for outstanding exchange traded derivative positions. The fair value of the derivative asset disclosed in this table has not been reduced for the collateral received. No collateral was posted against derivative positions owed to counterparties under a master netting agreement on the consolidated balance sheet as of December 31, 2020 . |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Details-3) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Basis adjustment: | ||
Basis adjustment - on peak | 95.50% | 94.20% |
Basis adjustment - off peak | 96.40% | 94.50% |
US Treasury Bill Securities [Member] | ||
Deferred compensation plan [Abstract] | ||
Investment interest calculation, investment maturity period (26 weeks) | 182 days | |
Investment interest calculation, monthly compounding rate | 1.00% | |
Investment interest calculation, minimum annual rate compounded monthly | 7.00% | |
Minimum [Member] | ||
Counterparty fuel mix: | ||
Internal generation | 41.00% | 46.00% |
Purchased power | 34.00% | 35.00% |
Maximum [Member] | ||
Counterparty fuel mix: | ||
Internal generation | 66.00% | 65.00% |
Purchased power | 59.00% | 54.00% |
Weighted Average [Member] | ||
Counterparty fuel mix: | ||
Internal generation | 54.20% | 56.50% |
Purchased power | 45.80% | 43.50% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Details-4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance, | $ (4,533) | $ (21,023) | $ (14,055) | $ (26,456) | |
Realized and unrealized gains (losses): | |||||
Included in regulatory assets | 0 | 5,296 | 0 | 10,729 | |
Included in regulatory liability | 8,122 | 0 | 17,644 | 0 | |
Included in other comprehensive income | 0 | 0 | 0 | 0 | |
Included in earnings | [1] | 2,476 | (1,524) | 2,686 | (4,687) |
Included in current assets | 0 | (37) | 175 | (101) | |
Purchases | 6,638 | 5,505 | 18,899 | 15,837 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (9,114) | (3,944) | (21,760) | (11,049) | |
Ending balance, | $ 3,589 | $ (15,727) | $ 3,589 | $ (15,727) | |
[1] | MGE's exchange-traded derivative contracts, over-the-counter party transactions, purchased power agreement, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability. |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Details-5) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Fair Value Disclosures [Abstract] | |||||
Total gains (losses) included in earnings attributed to the change in unrealized gains (losses) related to assets and liabilities | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Included in earnings | [1] | 2,476 | (1,524) | 2,686 | (4,687) |
Purchased Power Expense [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Included in earnings | 2,476 | (1,496) | 3,113 | (4,343) | |
Cost Of Gas Sold Expense [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Included in earnings | $ 0 | $ (28) | $ (427) | $ (344) | |
[1] | MGE's exchange-traded derivative contracts, over-the-counter party transactions, purchased power agreement, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability. |
Joint Plant Ownership (Details)
Joint Plant Ownership (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)MW | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)MW | Sep. 30, 2020USD ($) | ||
Badger Hollow I Units [Member] | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Projected Solar Farm Project Costs | [1] | $ 65 | $ 65 | ||
Public Utilities Property Plant And Equipment Construction Work In Progress | [1],[2] | $ 57.8 | $ 57.8 | ||
Badger Hollow I Units [Member] | Public Service Commission of Wisconsin [Member] | |||||
Allowance for Funds Used During Construction | |||||
Authorized AFUDC rate - Signficiant projects (100%) | 100.00% | ||||
Badger Hollow I Units [Member] | MGE [Member] | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Jointly owned utility plant, ownership interest | [1] | 33.00% | 33.00% | ||
Jointly owned utility plant, plant capacity (in MW) | MW | [1] | 50 | 50 | ||
Badger Hollow II Units [Member] | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Projected Solar Farm Project Costs | [1] | $ 65 | $ 65 | ||
Public Utilities Property Plant And Equipment Construction Work In Progress | [1],[2] | $ 11.5 | $ 11.5 | ||
Badger Hollow II Units [Member] | Public Service Commission of Wisconsin [Member] | |||||
Allowance for Funds Used During Construction | |||||
Authorized AFUDC rate - Signficiant projects (100%) | 100.00% | ||||
Badger Hollow II Units [Member] | MGE [Member] | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Jointly owned utility plant, ownership interest | [1] | 33.00% | 33.00% | ||
Jointly owned utility plant, plant capacity (in MW) | MW | [1] | 50 | 50 | ||
Badger Hollow I and II [Member] | |||||
Allowance for Funds Used During Construction | |||||
AFUDC | $ 1.3 | $ 0.9 | $ 3.6 | $ 1.8 | |
[1] | The Badger Hollow I and Badger Hollow II solar farms are located in southwestern Wisconsin in Iowa County, near the villages of Montfort and Cobb. | ||||
[2] | Excluding AFUDC. |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Columbia Energy Center [Member] | |
Asset Retirement Obligations [Roll Forward] | |
Revisions in estimated cash flows | $ 3.5 |
Completed Renewable Projects [Member] | |
Asset Retirement Obligations [Roll Forward] | |
Liabilities incurred | $ 3.9 |
Revenue (Details-1)
Revenue (Details-1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Total Operating Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | $ 145,873 | $ 135,211 | $ 444,518 | $ 402,124 |
Electric [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 121,639 | 116,354 | 324,110 | 303,090 |
Electric [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 44,398 | 45,009 | 117,229 | 113,311 |
Electric [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 60,996 | 57,822 | 161,270 | 152,844 |
Electric [Member] | Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 3,380 | 3,234 | 9,469 | 8,797 |
Electric [Member] | Other-retail/municipal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 9,478 | 8,620 | 26,340 | 24,874 |
Electric [Member] | Total Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 118,252 | 114,685 | 314,308 | 299,826 |
Electric [Member] | Sales To The Market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 3,071 | 1,554 | 8,854 | 2,604 |
Electric [Member] | Other Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 316 | 115 | 948 | 660 |
Gas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 24,020 | 18,643 | 119,944 | 98,568 |
Gas [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 14,643 | 12,436 | 72,286 | 61,328 |
Gas [Member] | Commercial/Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 8,069 | 5,052 | 42,972 | 32,961 |
Gas [Member] | Total Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 22,712 | 17,488 | 115,258 | 94,289 |
Gas [Member] | Gas Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 1,256 | 1,152 | 4,589 | 4,179 |
Gas [Member] | Other Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 52 | 3 | 97 | 100 |
Non Regulated Energy [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | $ 214 | $ 214 | $ 464 | $ 466 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 145,873 | $ 135,211 | $ 444,518 | $ 402,124 |
Equity in earnings of investment | 7,440 | 7,780 | ||
Net income (loss) | 34,917 | 31,794 | 92,701 | 76,622 |
Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 121,639 | 116,354 | 324,110 | 303,090 |
Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 24,020 | 18,643 | 119,944 | 98,568 |
Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 214 | 214 | 464 | 466 |
Transmission Investment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
All Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 145,873 | 135,211 | 444,518 | 402,124 |
Equity in earnings of investment | 2,532 | 2,353 | 7,440 | 7,780 |
Operating Segments [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 121,728 | 116,563 | 324,426 | 303,674 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net income (loss) | 27,833 | 24,761 | 59,979 | 46,439 |
Operating Segments [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 30,709 | 22,137 | 134,321 | 107,868 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net income (loss) | (218) | 221 | 11,615 | 9,216 |
Operating Segments [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 10,438 | 10,316 | 31,059 | 30,714 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net income (loss) | 5,386 | 5,251 | 15,935 | 15,536 |
Operating Segments [Member] | Transmission Investment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Equity in earnings of investment | 2,532 | 2,353 | 7,440 | 7,780 |
Net income (loss) | 1,842 | 1,710 | 5,413 | 5,659 |
Operating Segments [Member] | All Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net income (loss) | 74 | (149) | (241) | (228) |
Consolidation Elimination Entries [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (17,002) | (13,805) | (45,288) | (40,132) |
Equity in earnings of investment | 0 | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 | 0 |
Consolidation Elimination Entries [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 89 | 209 | 316 | 584 |
Consolidation Elimination Entries [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 6,689 | 3,494 | 14,377 | 9,300 |
Consolidation Elimination Entries [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 10,224 | 10,102 | 30,595 | 30,248 |
Consolidation Elimination Entries [Member] | Transmission Investment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Consolidation Elimination Entries [Member] | All Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
MGE [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 145,873 | 135,211 | 444,518 | 402,124 |
Net income (loss) | 27,374 | 24,740 | 70,774 | 54,437 |
MGE [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 121,639 | 116,354 | 324,110 | 303,090 |
MGE [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 24,020 | 18,643 | 119,944 | 98,568 |
MGE [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 214 | 214 | 464 | 466 |
MGE [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 145,873 | 135,211 | 444,518 | 402,124 |
Net income (loss) | 27,374 | 24,740 | 70,774 | 54,437 |
MGE [Member] | Operating Segments [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 121,728 | 116,563 | 324,426 | 303,674 |
Net income (loss) | 27,833 | 24,761 | 59,979 | 46,439 |
MGE [Member] | Operating Segments [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 30,709 | 22,137 | 134,321 | 107,868 |
Net income (loss) | (218) | 221 | 11,615 | 9,216 |
MGE [Member] | Operating Segments [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 10,438 | 10,316 | 31,059 | 30,714 |
Net income (loss) | 5,386 | 5,251 | 15,935 | 15,536 |
MGE [Member] | Consolidation Elimination Entries [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (17,002) | (13,805) | (45,288) | (40,132) |
Net income (loss) | (5,627) | (5,493) | (16,755) | (16,754) |
MGE [Member] | Consolidation Elimination Entries [Member] | Electric [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 89 | 209 | 316 | 584 |
MGE [Member] | Consolidation Elimination Entries [Member] | Gas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 6,689 | 3,494 | 14,377 | 9,300 |
MGE [Member] | Consolidation Elimination Entries [Member] | Non Regulated Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 10,224 | $ 10,102 | $ 30,595 | $ 30,248 |