Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
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, 2019 | |
Amendment Flag | false | |
Trading Symbol | MGEE | |
Document Fiscal Year Focus | 2019 | |
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 | 34,668,370 | |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Revenues: | ||||
Electric revenues | $ 120,821 | $ 119,388 | $ 315,367 | $ 313,537 |
Gas revenue | 17,377 | 18,407 | 112,547 | 106,152 |
Total Operating Revenues | 138,198 | 137,795 | 427,914 | 419,689 |
Operating Expenses: | ||||
Fuel for electric generation | 15,901 | 16,793 | 40,221 | 43,944 |
Purchased power | 9,126 | 13,024 | 31,013 | 43,036 |
Cost of gas sold | 3,092 | 4,921 | 55,220 | 54,109 |
Other operations and maintenance | 48,070 | 44,130 | 143,979 | 131,976 |
Depreciation and amortization | 18,193 | 14,259 | 53,423 | 41,754 |
Other general taxes | 5,078 | 4,870 | 15,026 | 14,653 |
Total Operating Expenses | 99,460 | 97,997 | 338,882 | 329,472 |
Operating Income | 38,738 | 39,798 | 89,032 | 90,217 |
Other income, net | 5,204 | 4,330 | 15,074 | 13,980 |
Interest expense, net | (5,831) | (5,025) | (17,227) | (14,547) |
Income before income taxes | 38,111 | 39,103 | 86,879 | 89,650 |
Income tax provision | (7,454) | (9,597) | (16,667) | (21,792) |
Net Income Including Noncontrolling Interest | 30,657 | 29,506 | 70,212 | 67,858 |
Net Income | $ 30,657 | $ 29,506 | $ 70,212 | $ 67,858 |
Earnings Per Share of Common Stock (basic and diluted) | $ 0.88 | $ 0.85 | $ 2.03 | $ 1.96 |
Dividends per share of common stock | $ 0.353 | $ 0.338 | $ 1.028 | $ 0.983 |
Weighted Average Shares Outstanding (basic and diluted) | 34,668 | 34,668 | 34,668 | 34,668 |
MGE [Member] | ||||
Operating Revenues: | ||||
Electric revenues | $ 120,821 | $ 119,388 | $ 315,367 | $ 313,537 |
Gas revenue | 17,377 | 18,407 | 112,547 | 106,152 |
Total Operating Revenues | 138,198 | 137,795 | 427,914 | 419,689 |
Operating Expenses: | ||||
Fuel for electric generation | 15,901 | 16,793 | 40,221 | 43,944 |
Purchased power | 9,126 | 13,024 | 31,013 | 43,036 |
Cost of gas sold | 3,092 | 4,921 | 55,220 | 54,109 |
Other operations and maintenance | 47,947 | 43,987 | 143,282 | 131,175 |
Depreciation and amortization | 18,193 | 14,259 | 53,423 | 41,754 |
Other general taxes | 5,078 | 4,870 | 15,026 | 14,653 |
Total Operating Expenses | 99,337 | 97,854 | 338,185 | 328,671 |
Operating Income | 38,861 | 39,941 | 89,729 | 91,018 |
Other income, net | 2,672 | 2,592 | 7,837 | 7,402 |
Interest expense, net | (6,095) | (5,500) | (18,223) | (15,727) |
Income before income taxes | 35,438 | 37,033 | 79,343 | 82,693 |
Income tax provision | (6,687) | (9,117) | (14,579) | (19,918) |
Net Income Including Noncontrolling Interest | 28,751 | 27,916 | 64,764 | 62,775 |
Less Net Income Attributable to Noncontrolling Interest, net of tax | (5,614) | (5,629) | (16,725) | (16,940) |
Net Income | $ 23,137 | $ 22,287 | $ 48,039 | $ 45,835 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities: | ||
Net Income | $ 70,212,000 | $ 67,858,000 |
Items not affecting cash: | ||
Depreciation and amortization | 53,423,000 | 41,754,000 |
Deferred income taxes | 4,864,000 | 2,352,000 |
Provision for doubtful receivables | 978,000 | 642,000 |
Employee benefit plan credit | (2,866,000) | (1,544,000) |
Equity earnings in ATC | (6,879,000) | (6,113,000) |
Other items | 692,000 | 31,000 |
Changes in working capital items: | ||
Decrease in current assets | 14,307,000 | 25,530,000 |
Increase (decrease) in current liabilities | (24,088,000) | 6,026,000 |
Dividends from ATC | 5,526,000 | 5,336,000 |
Cash contributions to pension and other postretirement plans | (3,707,000) | (3,967,000) |
Other noncurrent items, net | (760,000) | 527,000 |
Cash Provided by Operating Activities | 111,702,000 | 138,432,000 |
Investing Activities: | ||
Capital expenditures | (128,389,000) | (149,001,000) |
Capital contributions to investments | (5,894,000) | (4,801,000) |
Other | (248,000) | 368,000 |
Cash Used for Investing Activities | (134,531,000) | (153,434,000) |
Financing Activities: | ||
Cash dividends paid on common stock | (35,622,000) | (34,062,000) |
Repayment of long-term debt | (3,405,000) | (23,330,000) |
Issuance of long-term debt | 0 | 100,000,000 |
Proceeds from (repayments of) short-term debt | 41,500,000 | (4,000,000) |
Other | (1,331,000) | (659,000) |
Cash Provided by Financing Activities | 1,142,000 | 37,949,000 |
Change in cash, cash equivalents, and restricted cash | (21,687,000) | 22,947,000 |
Cash, cash equivalents, and restricted cash at beginning of period | 84,929,000 | 112,094,000 |
Cash, cash equivalents, and restricted cash at end of period | 63,242,000 | 135,041,000 |
Significant noncash investing activities: | ||
Accrued capital expenditures | 16,819,000 | 10,991,000 |
MGE [Member] | ||
Operating Activities: | ||
Net Income | 64,764,000 | 62,775,000 |
Items not affecting cash: | ||
Depreciation and amortization | 53,423,000 | 41,754,000 |
Deferred income taxes | 3,653,000 | (580,000) |
Provision for doubtful receivables | 978,000 | 642,000 |
Employee benefit plan credit | (2,866,000) | (1,544,000) |
Other items | 1,653,000 | 768,000 |
Changes in working capital items: | ||
Decrease in current assets | 14,236,000 | 24,864,000 |
Increase (decrease) in current liabilities | (22,234,000) | 9,941,000 |
Cash contributions to pension and other postretirement plans | (3,707,000) | (3,967,000) |
Other noncurrent items, net | (880,000) | 374,000 |
Cash Provided by Operating Activities | 109,020,000 | 135,027,000 |
Investing Activities: | ||
Capital expenditures | (128,389,000) | (149,001,000) |
Other | (477,000) | (680,000) |
Cash Used for Investing Activities | (128,866,000) | (149,681,000) |
Financing Activities: | ||
Distributions to parent from noncontrolling interest | (17,000,000) | (19,000,000) |
Repayment of long-term debt | (3,405,000) | (23,330,000) |
Issuance of long-term debt | 0 | 100,000,000 |
Proceeds from (repayments of) short-term debt | 41,500,000 | (4,000,000) |
Other | (1,133,000) | (659,000) |
Cash Provided by Financing Activities | 19,962,000 | 53,011,000 |
Change in cash, cash equivalents, and restricted cash | 116,000 | 38,357,000 |
Cash, cash equivalents, and restricted cash at beginning of period | 6,670,000 | 10,093,000 |
Cash, cash equivalents, and restricted cash at end of period | 6,786,000 | 48,450,000 |
Significant noncash investing activities: | ||
Accrued capital expenditures | $ 16,819,000 | $ 10,991,000 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 61,112,000 | $ 83,102,000 |
Accounts receivable, less reserves | 35,805,000 | 43,593,000 |
Other accounts receivables, less reserves | 7,867,000 | 6,262,000 |
Unbilled revenues | 20,926,000 | 28,243,000 |
Materials and supplies, at average cost | 28,019,000 | 24,093,000 |
Fuel for electric generation, at average cost | 8,339,000 | 6,599,000 |
Stored natural gas, at average cost | 11,402,000 | 11,303,000 |
Prepaid taxes | 11,518,000 | 16,215,000 |
Regulatory assets - current | 10,777,000 | 9,477,000 |
Assets held for sale | 0 | 3,080,000 |
Other current assets | 8,631,000 | 8,593,000 |
Total Current Assets | 204,396,000 | 240,560,000 |
Other long-term receivables | 2,343,000 | 2,709,000 |
Regulatory assets | 144,482,000 | 145,424,000 |
Other deferred assets and other | 17,096,000 | 12,488,000 |
Property, Plant, and Equipment: | ||
Property, plant, and equipment, net | 1,524,925,000 | 1,369,766,000 |
Construction work in progress | 88,050,000 | 139,671,000 |
Total Property, Plant, and Equipment | 1,612,975,000 | 1,509,437,000 |
Investments | 85,681,000 | 78,000,000 |
Total Assets | 2,066,973,000 | 1,988,618,000 |
Current Liabilities: | ||
Long-term debt due within one year | 4,632,000 | 4,553,000 |
Short-term debt | 54,500,000 | 13,000,000 |
Accounts payable | 39,139,000 | 46,158,000 |
Accrued interest and taxes | 5,570,000 | 7,384,000 |
Accrued payroll related items | 11,090,000 | 13,044,000 |
Regulatory liabilities - current | 15,606,000 | 13,826,000 |
Derivative liabilities | 10,390,000 | 8,550,000 |
Other current liabilities | 11,124,000 | 14,113,000 |
Total Current Liabilities | 152,051,000 | 120,628,000 |
Other Credits: | ||
Deferred income taxes | 239,433,000 | 231,952,000 |
Investment tax credit - deferred | 786,000 | 818,000 |
Regulatory liabilities | 162,088,000 | 165,638,000 |
Accrued pension and other postretirement benefits | 64,274,000 | 67,483,000 |
Derivative liabilities | 18,600,000 | 23,980,000 |
Finance lease liabilities | 17,657,000 | 1,771,000 |
Other deferred liabilities and other | 70,691,000 | 66,361,000 |
Total Other Credits | 573,529,000 | 558,003,000 |
Capitalization: | ||
Common shareholders equity | 851,234,000 | 816,644,000 |
Long-term debt | 490,159,000 | 493,343,000 |
Total Capitalization | 1,341,393,000 | 1,309,987,000 |
Commitments and contingencies (see Footnote 9) | ||
Total Liabilities and Capitalization | 2,066,973,000 | 1,988,618,000 |
MGE [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 4,656,000 | 4,843,000 |
Accounts receivable, less reserves | 35,805,000 | 43,593,000 |
Affiliate receivables | 540,000 | 621,000 |
Other accounts receivables, less reserves | 7,863,000 | 6,111,000 |
Unbilled revenues | 20,926,000 | 28,243,000 |
Materials and supplies, at average cost | 28,019,000 | 24,093,000 |
Fuel for electric generation, at average cost | 8,339,000 | 6,599,000 |
Stored natural gas, at average cost | 11,402,000 | 11,303,000 |
Prepaid taxes | 11,211,000 | 15,790,000 |
Regulatory assets - current | 10,777,000 | 9,477,000 |
Assets held for sale | 0 | 3,080,000 |
Other current assets | 8,522,000 | 8,541,000 |
Total Current Assets | 148,060,000 | 162,294,000 |
Affiliate receivable long-term | 2,780,000 | 3,177,000 |
Regulatory assets | 144,482,000 | 145,424,000 |
Other deferred assets and other | 18,178,000 | 14,142,000 |
Property, Plant, and Equipment: | ||
Property, plant, and equipment, net | 1,524,954,000 | 1,369,795,000 |
Construction work in progress | 88,050,000 | 139,671,000 |
Total Property, Plant, and Equipment | 1,613,004,000 | 1,509,466,000 |
Investments | 523,000 | 388,000 |
Total Assets | 1,927,027,000 | 1,834,891,000 |
Current Liabilities: | ||
Long-term debt due within one year | 4,632,000 | 4,553,000 |
Short-term debt | 54,500,000 | 13,000,000 |
Accounts payable | 39,104,000 | 46,165,000 |
Accrued interest and taxes | 7,901,000 | 10,319,000 |
Accrued payroll related items | 11,090,000 | 13,044,000 |
Regulatory liabilities - current | 15,606,000 | 13,826,000 |
Derivative liabilities | 10,390,000 | 8,550,000 |
Other current liabilities | 11,125,000 | 11,614,000 |
Total Current Liabilities | 154,348,000 | 121,071,000 |
Other Credits: | ||
Deferred income taxes | 210,886,000 | 204,616,000 |
Investment tax credit - deferred | 786,000 | 818,000 |
Regulatory liabilities | 162,088,000 | 165,638,000 |
Accrued pension and other postretirement benefits | 64,274,000 | 67,483,000 |
Derivative liabilities | 18,600,000 | 23,980,000 |
Finance lease liabilities | 17,657,000 | 1,771,000 |
Other deferred liabilities and other | 70,655,000 | 66,361,000 |
Total Other Credits | 544,946,000 | 530,667,000 |
Capitalization: | ||
Common shareholders equity | 596,395,000 | 548,356,000 |
Noncontrolling interest | 141,179,000 | 141,454,000 |
Total Equity | 737,574,000 | 689,810,000 |
Long-term debt | 490,159,000 | 493,343,000 |
Total Capitalization | 1,227,733,000 | 1,183,153,000 |
Commitments and contingencies (see Footnote 9) | ||
Total Liabilities and Capitalization | $ 1,927,027,000 | $ 1,834,891,000 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Receivables, Net | ||
Reserve for uncollectible accounts receivable | $ 2,683 | $ 2,614 |
Reserve for uncollectible other accounts receivable | 456 | 540 |
MGE [Member] | ||
Receivables, Net | ||
Reserve for uncollectible accounts receivable | 2,683 | 2,614 |
Reserve for uncollectible other accounts receivable | $ 456 | $ 540 |
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] |
Increase (Decrease) In Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of new accounting principle | $ 0 | $ 377 | $ (377) | ||
Beginning balance, shares at Dec. 31, 2017 | 34,668 | ||||
Beginning balance, value at Dec. 31, 2017 | 778,187 | $ 34,668 | $ 316,268 | 426,874 | 377 |
Beginning balance, value - Adjusted at Dec. 31, 2017 | 778,187 | 427,251 | 0 | ||
Increase (Decrease) In Stockholders' Equity [Roll Forward] | |||||
Net Income | 67,858 | 67,858 | |||
Common stock dividends declared | (34,062) | (34,062) | |||
Ending balance, shares at Sep. 30, 2018 | 34,668 | ||||
Ending balance, value at Sep. 30, 2018 | 811,983 | $ 34,668 | 316,268 | 461,047 | 0 |
Beginning balance, shares at Jun. 30, 2018 | 34,668 | ||||
Beginning balance, value at Jun. 30, 2018 | 794,178 | $ 34,668 | 316,268 | 443,242 | 0 |
Increase (Decrease) In Stockholders' Equity [Roll Forward] | |||||
Net Income | 29,506 | 29,506 | |||
Common stock dividends declared | (11,701) | (11,701) | |||
Ending balance, shares at Sep. 30, 2018 | 34,668 | ||||
Ending balance, value at Sep. 30, 2018 | 811,983 | $ 34,668 | 316,268 | 461,047 | 0 |
Beginning balance, shares at Dec. 31, 2018 | 34,668 | ||||
Beginning balance, value at Dec. 31, 2018 | 816,644 | $ 34,668 | 316,268 | 465,708 | 0 |
Increase (Decrease) In Stockholders' Equity [Roll Forward] | |||||
Net Income | 70,212 | 70,212 | |||
Common stock dividends declared | (35,622) | (35,622) | |||
Ending balance, shares at Sep. 30, 2019 | 34,668 | ||||
Ending balance, value at Sep. 30, 2019 | 851,234 | $ 34,668 | 316,268 | 500,298 | 0 |
Beginning balance, shares at Jun. 30, 2019 | 34,668 | ||||
Beginning balance, value at Jun. 30, 2019 | 832,797 | $ 34,668 | 316,268 | 481,861 | 0 |
Increase (Decrease) In Stockholders' Equity [Roll Forward] | |||||
Net Income | 30,657 | 30,657 | |||
Common stock dividends declared | (12,220) | (12,220) | |||
Ending balance, shares at Sep. 30, 2019 | 34,668 | ||||
Ending balance, value at Sep. 30, 2019 | $ 851,234 | $ 34,668 | $ 316,268 | $ 500,298 | $ 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] | Retained Earnings [Member]MGE [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Accumulated Other Comprehensive Income/(Loss) [Member]MGE [Member] | Noncontrolling Interest [Member]MGE [Member] |
Increase (Decrease) In Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect of new accounting principle | $ 0 | $ 0 | $ 377 | $ (28) | $ (377) | $ 28 | ||||
Beginning balance, shares at Dec. 31, 2017 | 34,668 | 17,348 | ||||||||
Beginning balance, value at Dec. 31, 2017 | 632,774 | $ 17,348 | $ 192,417 | 282,135 | (28) | $ 140,902 | ||||
Beginning balance, value - Adjusted at Dec. 31, 2017 | 778,187 | 632,774 | $ 427,251 | 282,107 | $ 0 | 0 | ||||
Increase (Decrease) In Stockholders' Equity [Roll Forward] | ||||||||||
Net Income | 67,858 | 62,775 | 45,835 | 16,940 | ||||||
Distributions to parent from noncontrolling interest | (19,000) | (19,000) | ||||||||
Ending balance, shares at Sep. 30, 2018 | 34,668 | 17,348 | ||||||||
Ending balance, value at Sep. 30, 2018 | 676,549 | $ 17,348 | 192,417 | 327,942 | 0 | 138,842 | ||||
Beginning balance, shares at Jun. 30, 2018 | 34,668 | 17,348 | ||||||||
Beginning balance, value at Jun. 30, 2018 | 654,133 | $ 17,348 | 192,417 | 305,655 | 0 | 138,713 | ||||
Increase (Decrease) In Stockholders' Equity [Roll Forward] | ||||||||||
Net Income | 29,506 | 27,916 | 22,287 | 5,629 | ||||||
Distributions to parent from noncontrolling interest | (5,500) | (5,500) | ||||||||
Ending balance, shares at Sep. 30, 2018 | 34,668 | 17,348 | ||||||||
Ending balance, value at Sep. 30, 2018 | 676,549 | $ 17,348 | 192,417 | 327,942 | 0 | 138,842 | ||||
Beginning balance, shares at Dec. 31, 2018 | 34,668 | 17,348 | ||||||||
Beginning balance, value at Dec. 31, 2018 | 689,810 | $ 17,348 | 192,417 | 338,591 | 0 | 141,454 | ||||
Increase (Decrease) In Stockholders' Equity [Roll Forward] | ||||||||||
Net Income | 70,212 | 64,764 | 48,039 | 16,725 | ||||||
Distributions to parent from noncontrolling interest | (17,000) | (17,000) | ||||||||
Ending balance, shares at Sep. 30, 2019 | 34,668 | 17,348 | ||||||||
Ending balance, value at Sep. 30, 2019 | 737,574 | $ 17,348 | 192,417 | 386,630 | 0 | 141,179 | ||||
Beginning balance, shares at Jun. 30, 2019 | 34,668 | 17,348 | ||||||||
Beginning balance, value at Jun. 30, 2019 | 714,323 | $ 17,348 | 192,417 | 363,493 | 0 | 141,065 | ||||
Increase (Decrease) In Stockholders' Equity [Roll Forward] | ||||||||||
Net Income | $ 30,657 | 28,751 | 23,137 | 5,614 | ||||||
Distributions to parent from noncontrolling interest | (5,500) | (5,500) | ||||||||
Ending balance, shares at Sep. 30, 2019 | 34,668 | 17,348 | ||||||||
Ending balance, value at Sep. 30, 2019 | $ 737,574 | $ 17,348 | $ 192,417 | $ 386,630 | $ 0 | $ 141,179 |
Consolidated Statements of Comm
Consolidated Statements of Common Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements of Common Equity | ||||
Dividends per share of common stock | $ 0.353 | $ 0.338 | $ 1.028 | $ 0.983 |
Summary of Significant Accounti
Summary of Significant Accounting Principles | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Summary of Significant 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 2018 Annual Report on Form 10-K (the 2018 Annual Report on Form 10-K). The accompanying consolidated financial statements as of September 30, 2019, and for 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 2018 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 106 of the 2018 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) 2019 2018 2019 2018 Cash and cash equivalents $ 61,112 $ 83,102 $ 4,656 $ 4,843 Restricted cash 532 634 532 634 Receivable - margin account 1,598 1,193 1,598 1,193 Cash, cash equivalents, and restricted cash $ 63,242 $ 84,929 $ 6,786 $ 6,670 |
Adoption of Accounting Principl
Adoption of Accounting Principles and Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Standards - MGE Energy and MGE. Recently Adopted Leases. In February 2016, the FASB issued authoritative guidance within the codification's Leases topic that provides guidance on the classification, recognition, measurement, and disclosure of leases. The new leasing standard establishes that a lease conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Under the new guidance, lessees are required to recognize all leases with terms greater than one year, including operating leases, on the balance sheet by recording a right-of-use asset and lease liability. Prior to the authoritative guidance, only capital leases were recognized on the balance sheet by lessees. The new accounting guidance, as applied by lessors, did not change materially. In January 2018, the FASB issued authoritative guidance which provided an optional practical expedient to grandfather the accounting for existing and expired land easements not accounted for as a lease under the new authoritative guidance. MGE Energy and MGE adopted this practical expedient. The lease authoritative guidance became effective January 1, 2019. MGE Energy and MGE adopted the standard upon the effective date. In compliance with authorized transition guidance, MGE Energy and MGE began applying the new standard on January 1, 2019, but will continue to present periods prior to that date according to the previous authoritative standard. There was no material impact on the consolidated net income or cash flows. See Footnote 3 for further lease information. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases - MGE Energy and MGE. As part of its regular operations, MGE enters into various contracts related to IT equipment, substations, cell towers, land, wind easements, and other property in use for operations. A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Determination as to whether an arrangement is or contains a lease is completed at inception. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets; lease expense for these leases are recognized on a straight-line basis over the lease term. Leases with initial terms in excess of 12 months are recorded as operating or financing leases on the consolidated balance sheets. Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. For leases that do not provide an implicit rate, a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, is used in determining the present value of future payments. The operating lease asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Operating lease expense is recognized on a straight-line basis over the lease term. MGE has regulatory treatment and recognizes regulatory assets or liabilities for timing differences between when net lease costs are recorded and when costs are recognized. As of September 30, 2019, MGE has no significant leases not yet commenced that would create significant future rights and obligations. The following table shows lease expense for the three and nine months ended September 30, 2019: (In thousands) Three Months Ended Nine Months Ended Income Statement Location Finance lease expense: Amortization of leased assets $ 425 $ 1,295 Depreciation and amortization Interest on lease liabilities 199 597 Interest expense, net Operating lease expense 32 92 Other operations and maintenance Total lease expense $ 656 $ 1,984 The following table shows the lease assets and liabilities on the consolidated balance sheet as of September 30, 2019: (In thousands) Balance Sheet Location Lease assets: Finance lease assets $ 16,275 Property, plant, and equipment, net Operating lease assets 300 Other deferred assets and other Total lease assets $ 16,575 Lease liabilities: Finance lease liabilities - current $ 932 Other current liabilities Finance lease liabilities - long-term 17,657 Finance lease liabilities Operating lease liabilities - current 143 Other current liabilities Operating lease liabilities - long-term 185 Other deferred liabilities and other Total lease liabilities $ 18,917 The following table shows other financial lease information for the nine months ended September 30, 2019: (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Finance leases - Financing cash flows $ 781 Finance leases - Operating cash flows 597 Operating leases - Operating cash flows 108 Lease assets obtained in exchange for lease liabilities: Finance leases 12,081 Operating leases 239 The following table shows the weighted average remaining lease terms and discounts as of September 30, 2019: Weighted-average remaining lease terms (in years): Finance leases 38 Operating leases 5 Weighted-average discount rates: Finance leases 4.36 % Operating leases 3.58 % The following table shows maturities of lease liabilities as of September 30, 2019: (In thousands) Finance Operating 2019 $ 539 $ 37 2020 1,644 152 2021 1,428 86 2022 1,309 33 2023 1,228 2 Thereafter 41,317 52 Subtotal 47,465 362 Less: Present value discount ( 28,876) ( 34) Lease Liability $ 18,589 $ 328 Future minimum rental payments as of December 31, 2018, under agreements classified as operating leases with noncancelable terms in excess of one year are as follows: (In thousands) 2019 2020 2021 2022 2023 Thereafter Minimum lease payments $ 1,646 $ 1,371 $ 1,095 $ 989 $ 975 $ 22,707 |
Investment in ATC and ATC Holdc
Investment in ATC and ATC Holdco | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in ATC and ATC Holdco | Investment 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, which, since December 1, 2016, is owned by 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 wholly-owned 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: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 Equity earnings from investment in ATC $ 2,364 $ 1,672 $ 6,879 $ 6,113 Dividends from ATC (a) 1,781 1,581 5,526 4,540 Capital contributions to ATC 888 533 2,131 2,308 (a) MGE Transco recorded a $ 2.3 million dividend receivable from ATC as of December 31, 2017. A cash dividend was received in January of the following year. MGE Transco recorded a $ 1.6 million dividend receivable from ATC as of September 30, 2018. A cash dividend was received in October 2018. ATC Holdco was formed in December 2016. In the near term, it is expected that ATC Holdco will be pursuing transmission development opportunities that typically have long development and investment lead times before becoming operational. In October 2019, MGE Transco made a $ 0.9 million capital contribution to ATC. ATC ' s summarized financial data is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 Operating revenues $ 184,833 $ 170,341 $ 544,760 $ 501,276 Operating expenses ( 94,713) ( 87,959) ( 278,673) ( 264,326) Other income, net 484 439 1,031 2,070 Interest expense, net ( 29,165) ( 27,754) ( 87,121) ( 82,411) Earnings before members' income taxes $ 61,439 $ 55,067 $ 179,997 $ 156,609 MGE receives transmission and other related services from ATC. During the three and nine months ended September 30, 2019, MGE recorded $ 7.6 million and $ 22.8 million, respectively, for transmission services received compared to $ 7.2 million and $ 21.7 million for the comparable periods in 2018. MGE also provides a variety of operational, maintenance, and project management services for ATC, which is reimbursed by ATC. As of September 30, 2019, and December 31, 2018, MGE had a receivable due from ATC of $ 1.6 million and $ 0.1 million, respectively. |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes - MGE Energy 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, 2019 2018 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.3 6.3 6.2 6.2 Amortized investment tax credits ( 0.1) ( 0.1) ( 0.1) ( 0.1) Credit for electricity from wind energy (a) ( 4.8) ( 0.3) ( 5.2) ( 0.2) AFUDC equity, net ( 0.4) ( 0.6) ( 0.4) ( 0.6) Amortization of utility excess deferred tax - tax reform (b) ( 1.9) ( 1.8) ( 2.1) ( 1.8) Other, net, individually insignificant ( 0.5) - ( 0.5) 0.1 Effective income tax rate 19.6 % 24.5 % 18.9 % 24.6 % MGE Energy MGE Nine Months Ended September 30, 2019 2018 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.3 6.3 6.2 6.2 Amortized investment tax credits ( 0.1) ( 0.1) ( 0.1) ( 0.1) Credit for electricity from wind energy (a) ( 5.6) ( 0.3) ( 6.1) ( 0.3) AFUDC equity, net ( 0.3) ( 0.8) ( 0.3) ( 0.8) Amortization of utility excess deferred tax - tax reform (b) ( 2.2) ( 1.8) ( 2.4) ( 2.0) Other, net, individually insignificant 0.1 - 0.1 0.1 Effective income tax rate 19.2 % 24.3 % 18.4 % 24.1 % (a) Saratoga Wind Farm became operational in February 2019. (b) Included are impacts of the Tax Cuts and Jobs Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting. For the three and nine months ended September 30, 2019, MGE recognized $ 0.6 million and $ 1.7 million, respectively, compared to $ 0.5 million and $ 1.4 million for the comparable periods in 2018. The amount and timing of the cash impacts will depend on the period over which certain income tax benefits are provided to customers, as determined by the PSCW. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 9 Months Ended |
Sep. 30, 2019 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Plans | Pension and Other Postretirement Plans - MGE Energy and MGE. MGE maintains qualified and nonqualified pension plans, health care, and life insurance benefits. Additionally, MGE has defined contribution 401(k) benefit plans. 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. The service cost component of net periodic benefit cost is eligible for capitalization within the consolidated balance sheets. 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) 2019 2018 2019 2018 Pension Benefits Components of net periodic benefit cost: Service cost $ 1,040 $ 1,431 $ 3,402 $ 4,292 Interest cost 3,170 3,215 10,364 9,645 Expected return on assets ( 5,054) ( 6,560) ( 16,523) ( 19,680) Amortization of: Prior service credit ( 26) ( 11) ( 85) ( 33) Actuarial loss 1,637 1,319 5,351 3,958 Net periodic benefit (credit) cost $ 767 $ ( 606) $ 2,509 $ ( 1,818) Postretirement Benefits Components of net periodic benefit cost: Service cost $ 276 $ 320 $ 829 $ 962 Interest cost 721 653 2,164 1,959 Expected return on assets ( 677) ( 808) ( 2,034) ( 2,424) Amortization of: Transition obligation 1 1 2 2 Prior service credit ( 664) ( 667) ( 1,994) ( 2,001) Actuarial loss 100 122 300 366 Net periodic benefit (credit) cost $ ( 243) $ ( 379) $ ( 733) $ ( 1,136) As a result of lower investment returns in the fourth quarter of 2018, pension and postretirement benefit costs increased in 2019. In August 2019, the PSCW approved MGE ' s request to defer the difference between estimated pension and other postretirement costs included in the 2019 and 2020 rate settlement and actual expense incurred. MGE expects that the deferred cost for employee benefit plans will be factored into future rate actions starting in 2021. For the three and nine months ended September 30, 2019, MGE has deferred approximately $ 1.3 million and $ 4.6 million of pension and other postretirement costs, respectively. The impact of the deferral has not been reflected in the table above. |
Equity and Financing Arrangemen
Equity and Financing Arrangements | 9 Months Ended |
Sep. 30, 2019 | |
Equity and Financing Arrangements Disclosure [Abstract] | |
Equity and Financing Arrangements | Equity and Financing Arrangements. a. Common Stock - MGE Energy. MGE Energy sells shares of its common stock through its Stock Plan. Those shares may be newly issued shares or shares that MGE Energy has purchased in the open market for resale to 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. For both the three and nine months ended September 30, 2019 and 2018, MGE Energy did not issue and new shares of common stock under the Stock Plan. b. Dilutive Shares Calculation - MGE Energy. MGE Energy does not c. Long-term Debt - MGE Energy and MGE. In August 2019, MGE entered into a Note Purchase Agreement for $ 50 million of new long-term unsecured debt carrying an interest rate of 2.94% per annum over its 10 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation - MGE Energy and MGE. Under MGE Energy ' s Director Incentive Plan and its Performance Unit Plan, non-employee directors and eligible employees, respectively, may receive performance units that entitle the holder to receive a cash payment equal to the value of a designated number of shares of MGE Energy's common stock, plus dividend equivalent payments thereon, at the end of the performance period set in the award. In 2019, 5,175 units were granted under the Director Incentive Plan and are subject to a three 17,022 units were granted under the Performance Unit Plan and are subject to a five For nonretirement eligible employees under the Performance Unit Plan, stock-based compensation costs are accrued and recognized using the graded vesting method. Compensation cost for retirement eligible employees or employees that will become retirement eligible during the vesting schedule are recognized on an abridged horizon as retirement eligibility accelerates vesting. During the three and nine months ended September 30, 2019, MGE recorded $ 0.9 million and $ 2.8 million, respectively, in compensation expense as a result of awards under the plans compared to $ 0.3 million and $ 1.3 million for the comparable periods in 2018. In January 2019, cash payments of $ 1.5 million were distributed relating to awards that were granted in a prior year under the plans. No forfeitures of units occurred during the three and nine months ended September 30, 2019 and 2018. As of September 30, 2019, $ 6.2 million of outstanding awards are vested. Of this amount, no cash settlements have occurred as cash payments are only made at the end of the period covered by the awards. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies. a. Environmental - MGE Energy and MGE. 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 they conduct their operations, the costs of those 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 have the potential to 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 published water effluent limitations guidelines 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, such as the coal-burning plants at Columbia and the Elm Road Units. The operators of the Columbia and the Elm Road Units have indicated that equipment upgrades may be necessary to comply with the new discharge standards. • The EPA's cooling water intake rules, which require cooling water intake structures at electric power plants, such as our Blount and Columbia plants, to meet best available technology standards so that mortality from entrainment (drawing aquatic life into a plant's cooling system) and impingement (trapping aquatic life on screens) are reduced. MGE expects that the rule will not have a material effect on its existing plants. • Greenhouse Gas (GHG) reduction guidelines and approval criteria established under the Clean Air Act (CAA) for states to use in developing plans to control GHG emissions from existing fossil fuel-fired electric generating units (EGUs). In 2015, the EPA finalized the Clean Power Plan (CPP), which directed states to submit plans to reduce GHG emissions from the electric generation sector. The CPP applied the statutory requirements for the "best system of emission reduction" (BSER) broadly so as to encompass GHG emission reduction strategies that extend "beyond the fenceline" of existing EGUs and required a shift in the energy generation mix at the grid level. In July 2019, the EPA published a final rule repealing the CPP and creating the replacement Affordable Clean Energy (ACE) rule to reduce greenhouse gas emissions from existing coal-fired EGUs. The ACE rule applies to EGUs greater than 25 MW. Based upon these criteria, the ACE rule will likely apply to Columbia and the Elm Road Units. EGUs that burn fossil fuels other than coal, such as Blount, WCCF, and smaller natural gas- and diesel-fueled units are not subject to the ACE rule. In contrast to the CPP, the ACE rule limits BSER to only "inside the fenceline" heat rate improvement technologies or systems that can be applied at an affected coal-fired EGU. Under ACE, states have the primary role in developing standards of performance that result from the application of BSER. The EPA has not provided a standard of performance that it will deem presumptively acceptable in a state plan, but urges states to provide full justification for each component of their plans so that the EPA can evaluate BSER on a unit-by-unit basis. The ACE rule is subject to a legal challenge pending in the United States District Court of the District of Columbia. States will have three years to develop and submit compliance plans to the EPA. The EPA will have a year to review and approve the plans. The states are given 24 months from the approval date to implement the rule and can extend the compliance schedule for units that meet progress milestones. EGU's compliance with the ACE rule may not be required until 2024 or later. MGE is currently evaluating how this rule may impact operations. Until the State of Wisconsin develops a plan that is accepted by the EPA, MGE will not be able to determine the final impact of the rule. MGE will continue to evaluate the rule and monitor ongoing and potential legal proceedings associated with the CPP and ACE rules. • The EPA's rule to regulate ambient levels of ozone through the 2015 Ozone National Ambient Air Quality Standards (NAAQS). In May 2018, the EPA issued a final rule which designated the northeast portion of Milwaukee County as being in nonattainment with this NAAQS. The Elm Road Units are located in Milwaukee County, outside the designated nonattainment area. In August 2018, several environmental groups, the City of Chicago, and the State of Illinois filed federal lawsuits challenging several of the EPA's attainment designation decisions, including the partial Milwaukee County designation as being too narrow and not sufficiently protective. MGE is monitoring the outcome of this lawsuit and how it may affect our Elm Road Units in Milwaukee County. At this time, MGE expects that the 2015 Ozone NAAQS will not have a material effect on its existing plants based on final designations. • Rules regulating nitrogen oxide (NO x 2 MGE has met its CSAPR obligations in 2018 and 2017 through a combination of reduced emissions through pollution control (e.g. SCR installation at Columbia), as well as owned, received, and purchased allowances. CSAPR has been subject to ongoing legal challenges. In September 2019, the U.S. Court of Appeals upheld the legal argument that the EPA cannot provide a partial remedy to the Clean Air Act's "Good Neighbor Provision" which addresses interstate transport of pollutants from upwind states to downwind states. Under the current rule, the EPA was not holding upwind states to the same attainment deadlines as the downwind states that they impacted. The court indicated that this leniency on the upwind states effectively causes downwind states to miss attainment deadlines or over comply to meet deadlines. The court remanded the rule to the EPA without vacating it. No deadline has been set for the EPA to revise the rule. Wisconsin is considered an upwind state under CSAPR and is potentially impacted by rules that the EPA will develop to address this remand. MGE will not be able to determine impacts to our operations until rules are promulgated. MGE will continue to monitor developments. Columbia is subject to the best available retrofit technology (BART) regulations, a subsection of the EPA's CAVR, which may require pollution control retrofits. Columbia's existing pollution control upgrades, and the EPA's stance that compliance with the CSAPR equals compliance with BART, should mean that Columbia will not need to do additional work to meet BART requirements. At this time, however, the BART regulatory obligations, compliance strategies, and costs remain uncertain in Wisconsin due to the continued legal challenges surrounding CSAPR and CAVR. MGE will continue to monitor developments to this rule. • The EPA's Coal Combustion Residuals Rule (CCR), which regulates coal ash from burning coal for the purpose of generating electricity as a solid waste, 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. 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 their system and has developed a compliance plan. Columbia's operator is also exploring alternative compliance options to meet the rule requirements by the rule's deadline. MGE will continue to monitor the operator's plans for compliance to assess potential impacts on operations. In July 2018, the EPA published a final rule that included amendments to the CCR (which include the allowance of alternative performance standards for landfills and surface impoundments, revised risk-based groundwater protection standards, and an extension of the deadline by which certain facilities must cease the placement of waste in CCR units). In August 2018, the Court of Appeals for the D.C. Circuit vacated parts of the CCR for not being sufficiently protective of the environment. In August 2019, the EPA introduced a proposed rule that if final would revise some monitoring, corrective action, beneficial reuse, and storage requirements. The revised rule as proposed would not have material impact on MGE. MGE will continue to monitor potential rule modifications to assess potential impacts on operations. 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 maintains accruals for such 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. 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, 2019: (In thousands) 2019 2020 2021 2022 2023 Thereafter Coal (a) $ 7,293 13,120 5,647 2,313 - - Natural gas Transportation and storage (b) 6,258 21,997 21,728 21,728 21,728 55,460 Supply (c) 8,773 10,600 - - - - Solar farms (d) 509 310 3,024 726 743 32,474 Other 92 928 929 97 99 1,079 $ 22,925 $ 46,955 $ 31,328 $ 24,864 $ 22,570 $ 89,013 (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. (d) In 2019, MGE entered into commitments related to operations of the Two Creeks and Badger Hollow Solar Farms. See Footnote 14 for further information on the solar farm construction. d. Capital Purchase Commitments - MGE Energy and MGE. Various contractual obligations contain minimum future commitments related to capital expenditures for certain construction projects, including the Two Creeks solar project and the Badger Hollow Solar Farm. As of September 30, 2019, the Two Creeks and Badger Hollow future minimum construction commitment is $ 20.5 million and $ 53.2 million, respectively. e. Other Commitments - MGE Energy. In September 2019, MGE Energy entered into a subscription agreement to invest in a nonpublic venture capital fund. From time to time, the fund makes capital calls to its investors. MGE Energy has committed to contribute $ 10 million in capital for such capital calls. The timing of these capital calls is dependent on the needs of the funds and is therefore uncertain at this time. |
Rate Matters
Rate Matters | 9 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
Rate Matters | Rate Matters - MGE Energy and MGE. a. Rate Proceedings. In December 2018, the PSCW approved the settlement agreement between MGE and intervening parties in the rate case. The settlement decreases electric rates by 2.24%, or $ 9.2 million, in 2019. MGE will maintain 1.06%, or $ 1.7 million, in 2019 and 1.46%, or $ 2.4 million, in 2020. The gas increase covers infrastructure costs. It also reflects the impacts of the Tax Act. The return on common stock equity for 2019 and 2020 9.8% based on a capital structure consisting of 56.6% common equity in 2019 and 56.1% common equity in 2020 . MGE did not file a base rate case for 2018. b. Fuel Rules. Fuel rules require the PSCW and 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/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 currently set at plus or minus 2%. Under fuel rules, MGE would defer costs, less any excess revenues, if its actual electric fuel costs exceeded 102% 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 98% of the electric fuel costs allowed in that order. These costs will be subject to the PSCW's annual review of fuel costs completed in the year following the deferral. In December 2017, the PSCW approved a surcharge for 2018 electric fuel-related costs. The surcharge increased electric retail revenue in 2018 by $ 0.5 million, or 0.13%. In July 2019, the PSCW issued a final decision in the 2018 fuel rules proceedings for MGE to refund $ 9.5 million of additional fuel savings realized during 2018 plus accrued interest to its retail electric customers in October 2019. 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, 2019, MGE had deferred $ 0.5 million in 2019 fuel savings. As of December 31, 2018, MGE had deferred $ 9.5 million of 2018 fuel savings . c. 2018 Tax Reform. Customer rates approved for 2018 reflected an income tax rate of 35 percent. In January 2018, the PSCW issued an order directing Wisconsin investor-owned utilities to defer the over-collection of income tax expense as a result of the decrease in tax rate to 21 percent. The PSCW issued an order in May 2018 to return to customers the estimated 2018 over-collection of income tax expense. The decision included a one-time bill credit on customer bills to reflect the estimate of the over-collection for January through June 2018, along with a volumetric bill credit which began in July 2018 and continued through the remainder of 2018 for the estimated remaining annual amount. MGE returned $ 8.2 million to customers through bill credits as of December 31, 2018. In August 2019, the PSCW issued a decision on the 2018 tax reform proceedings for MGE to refund the remaining 2018 overcollection of income tax expense to its retail customers as a one-time bill credit. MGE returned $ 3.2 million in September 2019. There was no change to the refund order from the amount MGE deferred as of December 31, 2018. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Instruments | Derivative 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 b. Notional Amounts. The gross notional volume of open derivatives is as follows: September 30, 2019 December 31, 2018 Commodity derivative contracts 466,760 MWh 386,440 MWh Commodity derivative contracts 9,190,000 Dth 5,260,000 Dth FTRs 4,282 MW 2,252 MW PPA 1,600 MW 2,050 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, 2019, the cost basis of exchange traded derivatives and FTRs exceeded their fair value by $ 0.2 million. As of December 31, 2018, the fair value of exchange traded derivatives and FTRs exceeded their cost basis by $ 0.7 million. 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 also allows MGE an option to extend the contract after the base term. 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, 2019, and December 31, 2018, reflects a loss position of $ 29.0 million and $ 32.5 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. As of September 30, 2019, and December 31, 2018, the receivable margin account balance of $ 1.6 million and $ 1.2 million, respectively, is shown net of any collateral posted against derivative positions. Derivative Derivative (In thousands) Assets Liabilities Balance Sheet Location September 30, 2019 Commodity derivative contracts $ 668 $ 996 Other current assets (a) Commodity derivative contracts 81 289 Other deferred charges (a) FTRs 344 - Other current assets PPA N/A 10,390 Derivative liability (current) PPA N/A 18,600 Derivative liability (long-term) December 31, 2018 Commodity derivative contracts $ 727 $ 270 Other current assets Commodity derivative contracts 74 72 Other deferred charges FTRs 241 - Other current assets PPA N/A 8,550 Derivative liability (current) PPA N/A 23,980 Derivative liability (long-term) (a) As of September 30, 2019, collateral of $ 0.7 million was posted against and netted with derivative liability positions on the consolidated balance sheets. No collateral was posted against derivative positions as of December 31, 2018. 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, 2019 Commodity derivative contracts $ 749 $ ( 561) $ - $ 188 FTRs 344 - - 344 December 31, 2018 Commodity derivative contracts $ 801 $ ( 342) $ - $ 459 FTRs 241 - - 241 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, 2019 Commodity derivative contracts $ 1,285 $ ( 561) $ ( 724) $ - PPA 28,990 - - 28,990 December 31, 2018 Commodity derivative contracts $ 342 $ ( 342) $ - $ - PPA 32,530 - - 32,530 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. 2019 2018 (In thousands) Current and Long-Term Regulatory Asset Other Current Assets Current and Long-Term Regulatory Asset Other Current Assets Three Months Ended September 30: Balance at July 1, $ 33,515 $ 878 $ 36,924 $ 640 Unrealized gain ( 4,560) - ( 2,007) - Realized (loss) gain reclassified to a deferred account ( 411) 411 ( 316) 316 Realized gain (loss) reclassified to income statement 638 ( 258) 29 ( 62) Balance as of September 30, $ 29,182 $ 1,031 $ 34,630 $ 894 Nine Months Ended September 30: Balance at January 1, $ 31,830 $ 377 $ 41,958 $ 806 Unrealized gain ( 2,256) - ( 5,906) - Realized (loss) gain reclassified to a deferred account ( 1,402) 1,402 ( 837) 837 Realized gain (loss) reclassified to income statement 1,010 ( 748) ( 585) ( 749) Balance as of September 30, $ 29,182 $ 1,031 $ 34,630 $ 894 Realized Losses (Gains) 2019 2018 (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 $ 471 $ 83 $ ( 145) $ - FTRs ( 429) - ( 150) - PPA ( 505) - 328 - Nine Months Ended September 30: Commodity derivative contracts $ 1,038 $ 460 $ 39 $ 637 FTRs ( 503) - ( 625) - PPA ( 1,257) - 1,283 - 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 above described treatment, 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, 2019, no collateral is required to be, or has been, posted. Certain counterparties extend MGE a credit limit. If MGE exceeds these limits, the counterparties may require collateral to be posted. No 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, 2019, no counterparties have defaulted. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial 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 offinancial instruments are as follows: September 30, 2019 December 31, 2018 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value MGE Energy Assets: Cash and cash equivalents $ 61,112 $ 61,112 $ 83,102 $ 83,102 Liabilities: Short-term debt - commercial paper 54,500 54,500 13,000 13,000 Long-term debt (a) 499,027 578,229 502,431 518,811 MGE Assets: Cash and cash equivalents $ 4,656 $ 4,656 $ 4,843 $ 4,843 Liabilities: Short-term debt - commercial paper 54,500 54,500 13,000 13,000 Long-term debt (a) 499,027 578,229 502,431 518,811 (a) Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.2 $ 4.5 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, 2019 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 1,093 $ 525 $ - $ 568 Exchange-traded investments 1,001 1,001 - - Total Assets $ 2,094 $ 1,526 $ - $ 568 Liabilities: Derivatives, net $ 30,275 $ 687 $ - $ 29,588 Deferred compensation 3,025 - 3,025 - Total Liabilities $ 33,300 $ 687 $ 3,025 $ 29,588 MGE Assets: Derivatives, net (b) $ 1,093 $ 525 $ - $ 568 Exchange-traded investments 178 178 - - Total Assets $ 1,271 $ 703 $ - $ 568 Liabilities: Derivatives, net $ 30,275 $ 687 $ - $ 29,588 Deferred compensation 3,025 - 3,025 - Total Liabilities $ 33,300 $ 687 $ 3,025 $ 29,588 Fair Value as of December 31, 2018 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net $ 1,042 $ 296 $ - $ 746 Exchange-traded investments 848 848 - - Total Assets $ 1,890 $ 1,144 $ - $ 746 Liabilities: Derivatives, net $ 32,872 $ 124 $ - $ 32,748 Deferred compensation 3,078 - 3,078 - Total Liabilities $ 35,950 $ 124 $ 3,078 $ 32,748 MGE Assets: Derivatives, net $ 1,042 $ 296 $ - $ 746 Exchange-traded investments 43 43 - - Total Assets $ 1,085 $ 339 $ - $ 746 Liabilities: Derivatives, net $ 32,872 $ 124 $ - $ 32,748 Deferred compensation 3,078 - 3,078 - Total Liabilities $ 35,950 $ 124 $ 3,078 $ 32,748 (b) These amounts are shown gross and exclude $ million of collateral that was posted against derivative positions with counterparties as of September 30, 2019. No transfers were made in or out of Level 1 or Level 2 for the nine months ended September 30, 2019. 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 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 11) was valued using an internally-developed 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 Significant Unobservable Inputs September 30, 2019 December 31, 2018 Basis adjustment: On peak 92.2 % 92.1 % Off peak 92.8 % 92.8 % Counterparty fuel mix: Internal generation 40.0% - 60.0 % 50.0% - 75.0 % Purchased power 60.0% - 40.0 % 50.0% - 25.0 % 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) 2019 2018 2019 2018 Beginning balance $ ( 33,337) $ ( 37,332) $ ( 32,002) $ ( 42,026) Realized and unrealized gains (losses): Included in regulatory assets 4,317 2,018 2,982 6,711 Included in other comprehensive income - - - - Included in earnings ( 492) 26 ( 1,928) ( 434) Included in current assets 4 ( 25) ( 198) ( 496) Purchases 5,205 5,736 16,827 17,602 Sales - - - - Issuances - - - - Settlements ( 4,717) ( 5,737) ( 14,701) ( 16,671) Transfers in and/or out of Level 3 - - - - Balance as of September 30, $ ( 29,020) $ ( 35,314) $ ( 29,020) $ ( 35,314) Total gains (losses) included in earnings attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30, (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) 2019 2018 2019 2018 Purchased Power Expense $ ( 409) $ 26 $ ( 1,658) $ ( 637) Cost of Gas Sold Expense ( 83) - ( 270) 203 Total $ ( 492) $ 26 $ ( 1,928) $ ( 434) (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. |
Asset Retirement Obligation
Asset Retirement Obligation | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | Asset Retirement Obligation - MGE Energy and MGE. A liability for the fair value of an asset retirement obligation (ARO) is 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, 2019, MGE recorded an obligation of $ 1.5 million for the fair value of its legal liability for an ARO associated with the Saratoga Wind Farm. 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. |
Joint Plant Ownership
Joint Plant Ownership | 9 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
Joint Plant Ownership | Joint Plant Ownership - MGE Energy and MGE. a. Two Creeks. In May 2019, MGE acquired a 33% ownership interest in a 150 MW solar generation array in the Town of Two Creeks and the City of Two Rivers in Manitowoc and Kewaunee Counties, Wisconsin. MGE ' s sole principal asset will be the 33% undivided ownership interest in the solar generation facility, which is being constructed. The estimated share of capital costs for MGE ' s ownership interest is approximately $ 65 million (excluding capitalized interest). As of September 30, 2019, $ 42.1 million (excluding capitalized interest) related to this project is reflected in " Construction work in progress " on the consolidated balance sheets. The project is anticipated to be completed by the end of 2020. b. Badger Hollow. In July 2019, MGE acquired a 33% ownership interest in a 150 MW solar generation array in southwestern Wisconsin in Iowa County, near the villages of Montfort and Cobb. MGE ' s sole principal asset will be the 33% undivided ownership interest in the solar generation facility which is being constructed. The estimated share of capital costs for MGE ' s ownership interest is approximately $ 65 million (excluding capitalized interest). As of September 30, 2019, $ 10.0 million (excluding capitalized interest) related to this project is reflected in " Construction work in progress " on the consolidated balance sheets. The project is anticipated to be completed by the end of 2020. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue - 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 2019 2018 2019 2018 Residential $ 42,442 $ 42,371 $ 107,772 $ 107,847 Commercial 63,466 61,638 165,481 159,264 Industrial 3,760 3,668 10,013 11,193 Other-retail/municipal 9,543 9,431 26,728 26,245 Total retail 119,211 117,108 309,994 304,549 Sales to the market 1,163 1,505 3,914 6,334 Other revenues 233 562 978 1,750 Total electric revenues 120,607 119,175 314,886 312,633 Gas revenues Residential 11,342 11,916 67,659 64,087 Commercial/Industrial 4,825 5,570 40,833 38,728 Total retail 16,167 17,486 108,492 102,815 Gas transportation 1,126 829 3,756 3,018 Other revenues 84 92 299 319 Total gas revenues 17,377 18,407 112,547 106,152 Non-regulated energy revenues 214 213 481 904 Total Operating Revenue $ 138,198 $ 137,795 427,914 $ 419,689 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 MGE Energy's and MGE's contracts have a single performance obligation. Retail Revenue (Residential, Commercial, Industrial, and Other Retail/Municipal) Retail revenue of electric and gas utility service represent MGE's core business activities. 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 the customer is subsequently billed for their services. At the end of the month, MGE accrues an estimate for the unbilled amount of 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/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 10.b. for further information. MGE received a PSCW order in January 2018 to defer the over-collection of income tax expense collected in customer rates during 2018 as a result of the Tax Cuts and Jobs Act (the Tax Act) reduction in the income tax rate to 21 percent. See Footnote 10.c. for further information. MGE 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 MGE provides gas transportation services to customers who have elected to purchase gas from a third party and have the gas delivered via pipelines within MGE's 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 the standard terms and conditions, including pricing terms. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information - 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 2018 Annual Report on Form 10-K for additional discussion of each of these segments. The following tables show segment information for MGE Energy's operations for the indicated periods: (In thousands) MGE Energy Electric Gas Non-regulated Energy Transmission Investment All Others Consolidation/ Elimination Entries Consolidated Total Three Months Ended September 30, 2019 Operating revenues $ 120,607 $ 17,377 $ 214 $ - $ - $ - $ 138,198 Interdepartmental revenues 225 5,679 10,019 - - (15,923) - Total operating revenues 120,832 23,056 10,233 - - ( 15,923) 138,198 Depreciation and amortization ( 13,441) ( 2,879) ( 1,873) - - - ( 18,193) Other operating expenses ( 76,817) ( 20,217) ( 33) - ( 123) 15,923 ( 81,267) Operating income (loss) 30,574 ( 40) 8,327 - ( 123) - 38,738 Other income, net 1,817 855 - 2,372 160 - 5,204 Interest (expense) income, net ( 3,762) ( 1,059) ( 1,274) - 264 - ( 5,831) Income (loss) before taxes 28,629 ( 244) 7,053 2,372 301 - 38,111 Income tax (provision) benefit ( 4,948) 183 ( 1,922) ( 646) ( 121) - ( 7,454) Net income (loss) $ 23,681 $ ( 61) $ 5,131 $ 1,726 $ 180 $ - $ 30,657 Three Months Ended September 30, 2018 Operating revenues $ 119,175 $ 18,407 $ 213 $ - $ - $ - $ 137,795 Interdepartmental revenues ( 20) 4,219 9,912 - - (14,111) - Total operating revenues 119,155 22,626 10,125 - - ( 14,111) 137,795 Depreciation and amortization ( 9,864) ( 2,534) ( 1,861) - - - ( 14,259) Other operating expenses ( 77,847) ( 19,824) ( 36) ( 4) ( 138) 14,111 ( 83,738) Operating income (loss) 31,444 268 8,228 ( 4) ( 138) - 39,798 Other income, net 1,763 829 - 1,620 118 - 4,330 Interest (expense) income, net ( 3,217) ( 963) ( 1,320) - 475 - ( 5,025) Income before taxes 29,990 134 6,908 1,616 455 - 39,103 Income tax (provision) benefit ( 7,306) 42 ( 1,852) ( 441) ( 40) - ( 9,597) Net income $ 22,684 $ 176 $ 5,056 $ 1,175 $ 415 $ - $ 29,506 Nine Months Ended September 30, 2019 Operating revenues $ 314,886 $ 112,547 $ 481 $ - $ - $ - $ 427,914 Interdepartmental revenues 622 12,571 29,987 - - (43,180) - Total operating revenues 315,508 125,118 30,468 - - ( 43,180) 427,914 Depreciation and amortization ( 39,330) ( 8,482) ( 5,611) - - - ( 53,423) Other operating expenses ( 223,242) ( 104,587) ( 113) - ( 697) 43,180 ( 285,459) Operating income (loss) 52,936 12,049 24,744 - ( 697) - 89,032 Other income, net 5,258 2,579 - 6,808 429 - 15,074 Interest (expense) income, net ( 11,253) ( 3,132) ( 3,838) - 996 - ( 17,227) Income before taxes 46,941 11,496 20,906 6,808 728 - 86,879 Income tax provision ( 6,036) ( 2,848) ( 5,695) ( 1,856) ( 232) - ( 16,667) Net income $ 40,905 $ 8,648 $ 15,211 $ 4,952 $ 496 $ - $ 70,212 Nine Months Ended September 30, 2018 Operating revenues $ 312,633 $ 106,152 $ 904 $ - $ - $ - $ 419,689 Interdepartmental revenues ( 234) 12,059 29,579 - - (41,404) - Total operating revenues 312,399 118,211 30,483 - - ( 41,404) 419,689 Depreciation and amortization ( 28,817) ( 7,374) ( 5,563) - - - ( 41,754) Other operating expenses ( 228,957) ( 99,251) ( 113) ( 12) ( 789) 41,404 ( 287,718) Operating income (loss) 54,625 11,586 24,807 ( 12) ( 789) - 90,217 Other income, net 5,055 2,347 - 5,908 670 - 13,980 Interest (expense) income, net ( 9,036) ( 2,689) ( 4,002) - 1,180 - ( 14,547) Income before taxes 50,644 11,244 20,805 5,896 1,061 - 89,650 Income tax provision ( 11,492) ( 2,788) ( 5,638) ( 1,611) ( 263) - ( 21,792) Net income $ 39,152 $ 8,456 $ 15,167 $ 4,285 $ 798 $ - $ 67,858 The following tables show segment information for MGE's operations for the indicated periods: (In thousands) MGE Electric Gas Non-regulated Energy Consolidation/ Elimination Entries Consolidated Total Three Months Ended September 30, 2019 Operating revenues $ 120,607 $ 17,377 $ 214 $ - $ 138,198 Interdepartmental revenues 225 5,679 10,019 (15,923) - Total operating revenues 120,832 23,056 10,233 ( 15,923) 138,198 Depreciation and amortization ( 13,441) ( 2,879) ( 1,873) - ( 18,193) Other operating expenses ( 76,817) ( 20,217) ( 33) 15,923 ( 81,144) Operating income (loss) 30,574 ( 40) 8,327 - 38,861 Other income, net 1,817 855 - - 2,672 Interest expense, net ( 3,762) ( 1,059) ( 1,274) - ( 6,095) Income (loss) before taxes 28,629 ( 244) 7,053 - 35,438 Income tax (provision) benefit ( 4,948) 183 ( 1,922) - ( 6,687) Net income (loss) 23,681 ( 61) 5,131 - 28,751 Less: Net income attributable to noncontrolling interest, net of tax - - - ( 5,614) ( 5,614) Net income (loss) attributable to MGE $ 23,681 $ ( 61) $ 5,131 $ ( 5,614) $ 23,137 Three Months Ended September 30, 2018 Operating revenues $ 119,175 $ 18,407 $ 213 $ - $ 137,795 Interdepartmental revenues ( 20) 4,219 9,912 (14,111) - Total operating revenues 119,155 22,626 10,125 ( 14,111) 137,795 Depreciation and amortization ( 9,864) ( 2,534) ( 1,861) - ( 14,259) Other operating expenses ( 77,847) ( 19,824) ( 35) 14,111 ( 83,595) Operating income 31,444 268 8,229 - 39,941 Other income, net 1,763 829 - - 2,592 Interest expense, net ( 3,217) ( 963) ( 1,320) - ( 5,500) Income before taxes 29,990 134 6,909 - 37,033 Income tax provision ( 7,306) 42 ( 1,853) - ( 9,117) Net income 22,684 176 5,056 - 27,916 Less: Net income attributable to noncontrolling interest, net of tax - - - ( 5,629) ( 5,629) Net income attributable to MGE $ 22,684 $ 176 $ 5,056 $ ( 5,629) $ 22,287 Nine Months Ended September 30, 2019 Operating revenues $ 314,886 $ 112,547 $ 481 $ - $ 427,914 Interdepartmental revenues 622 12,571 29,987 (43,180) - Total operating revenues 315,508 125,118 30,468 ( 43,180) 427,914 Depreciation and amortization ( 39,330) ( 8,482) ( 5,611) - ( 53,423) Other operating expenses ( 223,242) ( 104,587) ( 113) 43,180 ( 284,762) Operating income 52,936 12,049 24,744 - 89,729 Other income, net 5,258 2,579 - - 7,837 Interest expense, net ( 11,253) ( 3,132) ( 3,838) - ( 18,223) Income before taxes 46,941 11,496 20,906 - 79,343 Income tax provision ( 6,036) ( 2,848) ( 5,695) - ( 14,579) Net income 40,905 8,648 15,211 - 64,764 Less: Net income attributable to noncontrolling interest, net of tax - - - ( 16,725) ( 16,725) Net income attributable to MGE $ 40,905 $ 8,648 $ 15,211 $ ( 16,725) $ 48,039 Nine Months Ended September 30, 2018 Operating revenues $ 312,633 $ 106,152 $ 904 $ - $ 419,689 Interdepartmental revenues ( 234) 12,059 29,579 (41,404) - Total operating revenues 312,399 118,211 30,483 ( 41,404) 419,689 Depreciation and amortization ( 28,817) ( 7,374) ( 5,563) - ( 41,754) Other operating expenses ( 228,957) ( 99,251) ( 113) 41,404 ( 286,917) Operating income 54,625 11,586 24,807 - 91,018 Other income, net 5,055 2,347 - - 7,402 Interest expense, net ( 9,036) ( 2,689) ( 4,002) - ( 15,727) Income before taxes 50,644 11,244 20,805 - 82,693 Income tax provision ( 11,492) ( 2,788) ( 5,638) - ( 19,918) Net income 39,152 8,456 15,167 - 62,775 Less: Net income attributable to noncontrolling interest, net of tax - - - ( 16,940) ( 16,940) Net income attributable to MGE $ 39,152 $ 8,456 $ 15,167 $ ( 16,940) $ 45,835 The following table shows segment information for assets and capital expenditures: Utility Consolidated (In thousands) MGE Energy Electric Gas Non-regulated Energy Transmission Investment All Others Consolidation/ Elimination Entries Total Assets: September 30, 2019 $ 1,288,752 $ 379,160 $ 259,542 $ 69,829 $ 447,307 $ ( 377,617) $ 2,066,973 December 31, 2018 1,193,083 377,005 265,301 66,366 465,661 ( 378,798) 1,988,618 Capital Expenditures: Nine months ended September 30, 2019 $ 101,609 $ 24,551 $ 2,229 $ - $ - $ - $ 128,389 Year ended Dec. 31, 2018 176,399 30,497 5,301 - - - 212,197 Utility Consolidated (In thousands) MGE Electric Gas Non-regulated Energy Elimination Entries Total Assets: September 30, 2019 $ 1,288,752 $ 379,160 $ 259,492 $ ( 377) $ 1,927,027 December 31, 2018 1,193,083 377,005 265,251 ( 448) 1,834,891 Capital Expenditures: Nine months ended September 30, 2019 $ 101,609 $ 24,551 $ 2,229 $ - $ 128,389 Year ended Dec. 31, 2018 176,399 30,497 5,301 - 212,197 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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. |
New Accounting Pronouncements Disclosure | New Accounting Standards - MGE Energy and MGE. Recently Adopted Leases. In February 2016, the FASB issued authoritative guidance within the codification's Leases topic that provides guidance on the classification, recognition, measurement, and disclosure of leases. The new leasing standard establishes that a lease conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Under the new guidance, lessees are required to recognize all leases with terms greater than one year, including operating leases, on the balance sheet by recording a right-of-use asset and lease liability. Prior to the authoritative guidance, only capital leases were recognized on the balance sheet by lessees. The new accounting guidance, as applied by lessors, did not change materially. In January 2018, the FASB issued authoritative guidance which provided an optional practical expedient to grandfather the accounting for existing and expired land easements not accounted for as a lease under the new authoritative guidance. MGE Energy and MGE adopted this practical expedient. The lease authoritative guidance became effective January 1, 2019. MGE Energy and MGE adopted the standard upon the effective date. In compliance with authorized transition guidance, MGE Energy and MGE began applying the new standard on January 1, 2019, but will continue to present periods prior to that date according to the previous authoritative standard. There was no material impact on the consolidated net income or cash flows. See Footnote 3 for further lease information. |
Leases | As part of its regular operations, MGE enters into various contracts related to IT equipment, substations, cell towers, land, wind easements, and other property in use for operations. A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Determination as to whether an arrangement is or contains a lease is completed at inception. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets; lease expense for these leases are recognized on a straight-line basis over the lease term. Leases with initial terms in excess of 12 months are recorded as operating or financing leases on the consolidated balance sheets. Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. For leases that do not provide an implicit rate, a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, is used in determining the present value of future payments. The operating lease asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Operating lease expense is recognized on a straight-line basis over the lease term. MGE has regulatory treatment and recognizes regulatory assets or liabilities for timing differences between when net lease costs are recorded and when costs are recognized. As of September 30, 2019, MGE has no significant leases not yet commenced that would create significant future rights and obligations. |
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. Additionally, MGE has defined contribution 401(k) benefit plans. 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. The service cost component of net periodic benefit cost is eligible for capitalization within the consolidated balance sheets. 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 Stock Plan. Those shares may be newly issued shares or shares that MGE Energy has purchased in the open market for resale to 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. |
Share-based Compensation | Under MGE Energy ' s Director Incentive Plan and its Performance Unit Plan, non-employee directors and eligible employees, respectively, may receive performance units that entitle the holder to receive a cash payment equal to the value of a designated number of shares of MGE Energy's common stock, plus dividend equivalent payments thereon, at the end of the performance period set in the award. In 2019, 5,175 units were granted under the Director Incentive Plan and are subject to a three 17,022 units were granted under the Performance Unit Plan and are subject to a five For nonretirement eligible employees under the Performance Unit Plan, stock-based compensation costs are accrued and recognized using the graded vesting method. Compensation cost for retirement eligible employees or employees that will become retirement eligible during the vesting schedule are recognized on an abridged horizon as retirement eligibility accelerates vesting. |
Wisconsin Fuel Rules | Fuel rules require the PSCW and 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/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 currently set at plus or minus 2%. Under fuel rules, MGE would defer costs, less any excess revenues, if its actual electric fuel costs exceeded 102% 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 98% of the electric fuel costs allowed in that order. These costs will be 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 |
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. 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 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 11) was valued using an internally-developed 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 Significant Unobservable Inputs September 30, 2019 December 31, 2018 Basis adjustment: On peak 92.2 % 92.1 % Off peak 92.8 % 92.8 % Counterparty fuel mix: Internal generation 40.0% - 60.0 % 50.0% - 75.0 % Purchased power 60.0% - 40.0 % 50.0% - 25.0 % |
Asset Retirement Obligations | A liability for the fair value of an asset retirement obligation (ARO) is 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 MGE Energy's and MGE's contracts have a single performance obligation. Retail Revenue (Residential, Commercial, Industrial, and Other Retail/Municipal) Retail revenue of electric and gas utility service represent MGE's core business activities. 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 the customer is subsequently billed for their services. At the end of the month, MGE accrues an estimate for the unbilled amount of 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/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 10.b. for further information. MGE received a PSCW order in January 2018 to defer the over-collection of income tax expense collected in customer rates during 2018 as a result of the Tax Cuts and Jobs Act (the Tax Act) reduction in the income tax rate to 21 percent. See Footnote 10.c. for further information. MGE 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 MGE provides gas transportation services to customers who have elected to purchase gas from a third party and have the gas delivered via pipelines within MGE's 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 the standard terms and conditions, including pricing terms. |
Summary of Significant Accoun_2
Summary of Significant Accounting Principles (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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) 2019 2018 2019 2018 Cash and cash equivalents $ 61,112 $ 83,102 $ 4,656 $ 4,843 Restricted cash 532 634 532 634 Receivable - margin account 1,598 1,193 1,598 1,193 Cash, cash equivalents, and restricted cash $ 63,242 $ 84,929 $ 6,786 $ 6,670 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Cost | The following table shows lease expense for the three and nine months ended September 30, 2019: (In thousands) Three Months Ended Nine Months Ended Income Statement Location Finance lease expense: Amortization of leased assets $ 425 $ 1,295 Depreciation and amortization Interest on lease liabilities 199 597 Interest expense, net Operating lease expense 32 92 Other operations and maintenance Total lease expense $ 656 $ 1,984 |
Lease Balance Sheet | The following table shows the lease assets and liabilities on the consolidated balance sheet as of September 30, 2019: (In thousands) Balance Sheet Location Lease assets: Finance lease assets $ 16,275 Property, plant, and equipment, net Operating lease assets 300 Other deferred assets and other Total lease assets $ 16,575 Lease liabilities: Finance lease liabilities - current $ 932 Other current liabilities Finance lease liabilities - long-term 17,657 Finance lease liabilities Operating lease liabilities - current 143 Other current liabilities Operating lease liabilities - long-term 185 Other deferred liabilities and other Total lease liabilities $ 18,917 |
Other Financial Information | The following table shows other financial lease information for the nine months ended September 30, 2019: (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Finance leases - Financing cash flows $ 781 Finance leases - Operating cash flows 597 Operating leases - Operating cash flows 108 Lease assets obtained in exchange for lease liabilities: Finance leases 12,081 Operating leases 239 |
Weighted Average And Discount Rate | The following table shows the weighted average remaining lease terms and discounts as of September 30, 2019: Weighted-average remaining lease terms (in years): Finance leases 38 Operating leases 5 Weighted-average discount rates: Finance leases 4.36 % Operating leases 3.58 % |
Lessee Operating Lease Liability Maturity | The following table shows maturities of lease liabilities as of September 30, 2019: (In thousands) Finance Operating 2019 $ 539 $ 37 2020 1,644 152 2021 1,428 86 2022 1,309 33 2023 1,228 2 Thereafter 41,317 52 Subtotal 47,465 362 Less: Present value discount ( 28,876) ( 34) Lease Liability $ 18,589 $ 328 |
Lessee Finance Lease Liability Maturity | The following table shows maturities of lease liabilities as of September 30, 2019: (In thousands) Finance Operating 2019 $ 539 $ 37 2020 1,644 152 2021 1,428 86 2022 1,309 33 2023 1,228 2 Thereafter 41,317 52 Subtotal 47,465 362 Less: Present value discount ( 28,876) ( 34) Lease Liability $ 18,589 $ 328 |
Operating Leases, Future Minimum Rental Payments | Future minimum rental payments as of December 31, 2018, under agreements classified as operating leases with noncancelable terms in excess of one year are as follows: (In thousands) 2019 2020 2021 2022 2023 Thereafter Minimum lease payments $ 1,646 $ 1,371 $ 1,095 $ 989 $ 975 $ 22,707 |
Investment in ATC and ATC Hol_2
Investment in ATC and ATC Holdco (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 Equity earnings from investment in ATC $ 2,364 $ 1,672 $ 6,879 $ 6,113 Dividends from ATC (a) 1,781 1,581 5,526 4,540 Capital contributions to ATC 888 533 2,131 2,308 (a) MGE Transco recorded a $ 2.3 million dividend receivable from ATC as of December 31, 2017. A cash dividend was received in January of the following year. MGE Transco recorded a $ 1.6 million dividend receivable from ATC as of September 30, 2018. A cash dividend was received in October 2018. ATC ' s summarized financial data is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 Operating revenues $ 184,833 $ 170,341 $ 544,760 $ 501,276 Operating expenses ( 94,713) ( 87,959) ( 278,673) ( 264,326) Other income, net 484 439 1,031 2,070 Interest expense, net ( 29,165) ( 27,754) ( 87,121) ( 82,411) Earnings before members' income taxes $ 61,439 $ 55,067 $ 179,997 $ 156,609 |
Taxes (Tables)
Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 2018 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.3 6.3 6.2 6.2 Amortized investment tax credits ( 0.1) ( 0.1) ( 0.1) ( 0.1) Credit for electricity from wind energy (a) ( 4.8) ( 0.3) ( 5.2) ( 0.2) AFUDC equity, net ( 0.4) ( 0.6) ( 0.4) ( 0.6) Amortization of utility excess deferred tax - tax reform (b) ( 1.9) ( 1.8) ( 2.1) ( 1.8) Other, net, individually insignificant ( 0.5) - ( 0.5) 0.1 Effective income tax rate 19.6 % 24.5 % 18.9 % 24.6 % MGE Energy MGE Nine Months Ended September 30, 2019 2018 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.3 6.3 6.2 6.2 Amortized investment tax credits ( 0.1) ( 0.1) ( 0.1) ( 0.1) Credit for electricity from wind energy (a) ( 5.6) ( 0.3) ( 6.1) ( 0.3) AFUDC equity, net ( 0.3) ( 0.8) ( 0.3) ( 0.8) Amortization of utility excess deferred tax - tax reform (b) ( 2.2) ( 1.8) ( 2.4) ( 2.0) Other, net, individually insignificant 0.1 - 0.1 0.1 Effective income tax rate 19.2 % 24.3 % 18.4 % 24.1 % (a) Saratoga Wind Farm became operational in February 2019. (b) Included are impacts of the Tax Cuts and Jobs Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting. For the three and nine months ended September 30, 2019, MGE recognized $ 0.6 million and $ 1.7 million, respectively, compared to $ 0.5 million and $ 1.4 million for the comparable periods in 2018. The amount and timing of the cash impacts will depend on the period over which certain income tax benefits are provided to customers, as determined by the PSCW. |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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) 2019 2018 2019 2018 Pension Benefits Components of net periodic benefit cost: Service cost $ 1,040 $ 1,431 $ 3,402 $ 4,292 Interest cost 3,170 3,215 10,364 9,645 Expected return on assets ( 5,054) ( 6,560) ( 16,523) ( 19,680) Amortization of: Prior service credit ( 26) ( 11) ( 85) ( 33) Actuarial loss 1,637 1,319 5,351 3,958 Net periodic benefit (credit) cost $ 767 $ ( 606) $ 2,509 $ ( 1,818) Postretirement Benefits Components of net periodic benefit cost: Service cost $ 276 $ 320 $ 829 $ 962 Interest cost 721 653 2,164 1,959 Expected return on assets ( 677) ( 808) ( 2,034) ( 2,424) Amortization of: Transition obligation 1 1 2 2 Prior service credit ( 664) ( 667) ( 1,994) ( 2,001) Actuarial loss 100 122 300 366 Net periodic benefit (credit) cost $ ( 243) $ ( 379) $ ( 733) $ ( 1,136) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019: (In thousands) 2019 2020 2021 2022 2023 Thereafter Coal (a) $ 7,293 13,120 5,647 2,313 - - Natural gas Transportation and storage (b) 6,258 21,997 21,728 21,728 21,728 55,460 Supply (c) 8,773 10,600 - - - - Solar farms (d) 509 310 3,024 726 743 32,474 Other 92 928 929 97 99 1,079 $ 22,925 $ 46,955 $ 31,328 $ 24,864 $ 22,570 $ 89,013 (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. (d) In 2019, MGE entered into commitments related to operations of the Two Creeks and Badger Hollow Solar Farms. See Footnote 14 for further information on the solar farm construction. |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 December 31, 2018 Commodity derivative contracts 466,760 MWh 386,440 MWh Commodity derivative contracts 9,190,000 Dth 5,260,000 Dth FTRs 4,282 MW 2,252 MW PPA 1,600 MW 2,050 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. As of September 30, 2019, and December 31, 2018, the receivable margin account balance of $ 1.6 million and $ 1.2 million, respectively, is shown net of any collateral posted against derivative positions. Derivative Derivative (In thousands) Assets Liabilities Balance Sheet Location September 30, 2019 Commodity derivative contracts $ 668 $ 996 Other current assets (a) Commodity derivative contracts 81 289 Other deferred charges (a) FTRs 344 - Other current assets PPA N/A 10,390 Derivative liability (current) PPA N/A 18,600 Derivative liability (long-term) December 31, 2018 Commodity derivative contracts $ 727 $ 270 Other current assets Commodity derivative contracts 74 72 Other deferred charges FTRs 241 - Other current assets PPA N/A 8,550 Derivative liability (current) PPA N/A 23,980 Derivative liability (long-term) (a) As of September 30, 2019, collateral of $ 0.7 million was posted against and netted with derivative liability positions on the consolidated balance sheets. No collateral was posted against derivative positions as of December 31, 2018. |
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, 2019 Commodity derivative contracts $ 749 $ ( 561) $ - $ 188 FTRs 344 - - 344 December 31, 2018 Commodity derivative contracts $ 801 $ ( 342) $ - $ 459 FTRs 241 - - 241 |
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, 2019 Commodity derivative contracts $ 1,285 $ ( 561) $ ( 724) $ - PPA 28,990 - - 28,990 December 31, 2018 Commodity derivative contracts $ 342 $ ( 342) $ - $ - PPA 32,530 - - 32,530 |
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. 2019 2018 (In thousands) Current and Long-Term Regulatory Asset Other Current Assets Current and Long-Term Regulatory Asset Other Current Assets Three Months Ended September 30: Balance at July 1, $ 33,515 $ 878 $ 36,924 $ 640 Unrealized gain ( 4,560) - ( 2,007) - Realized (loss) gain reclassified to a deferred account ( 411) 411 ( 316) 316 Realized gain (loss) reclassified to income statement 638 ( 258) 29 ( 62) Balance as of September 30, $ 29,182 $ 1,031 $ 34,630 $ 894 Nine Months Ended September 30: Balance at January 1, $ 31,830 $ 377 $ 41,958 $ 806 Unrealized gain ( 2,256) - ( 5,906) - Realized (loss) gain reclassified to a deferred account ( 1,402) 1,402 ( 837) 837 Realized gain (loss) reclassified to income statement 1,010 ( 748) ( 585) ( 749) Balance as of September 30, $ 29,182 $ 1,031 $ 34,630 $ 894 |
Derivative Gains and Losses in Income Statement | Realized Losses (Gains) 2019 2018 (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 $ 471 $ 83 $ ( 145) $ - FTRs ( 429) - ( 150) - PPA ( 505) - 328 - Nine Months Ended September 30: Commodity derivative contracts $ 1,038 $ 460 $ 39 $ 637 FTRs ( 503) - ( 625) - PPA ( 1,257) - 1,283 - |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Market Value of Financial Instruments | The estimated fair market value offinancial instruments are as follows: September 30, 2019 December 31, 2018 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value MGE Energy Assets: Cash and cash equivalents $ 61,112 $ 61,112 $ 83,102 $ 83,102 Liabilities: Short-term debt - commercial paper 54,500 54,500 13,000 13,000 Long-term debt (a) 499,027 578,229 502,431 518,811 MGE Assets: Cash and cash equivalents $ 4,656 $ 4,656 $ 4,843 $ 4,843 Liabilities: Short-term debt - commercial paper 54,500 54,500 13,000 13,000 Long-term debt (a) 499,027 578,229 502,431 518,811 (a) Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.2 $ 4.5 |
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, 2019 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net (b) $ 1,093 $ 525 $ - $ 568 Exchange-traded investments 1,001 1,001 - - Total Assets $ 2,094 $ 1,526 $ - $ 568 Liabilities: Derivatives, net $ 30,275 $ 687 $ - $ 29,588 Deferred compensation 3,025 - 3,025 - Total Liabilities $ 33,300 $ 687 $ 3,025 $ 29,588 MGE Assets: Derivatives, net (b) $ 1,093 $ 525 $ - $ 568 Exchange-traded investments 178 178 - - Total Assets $ 1,271 $ 703 $ - $ 568 Liabilities: Derivatives, net $ 30,275 $ 687 $ - $ 29,588 Deferred compensation 3,025 - 3,025 - Total Liabilities $ 33,300 $ 687 $ 3,025 $ 29,588 Fair Value as of December 31, 2018 (In thousands) Total Level 1 Level 2 Level 3 MGE Energy Assets: Derivatives, net $ 1,042 $ 296 $ - $ 746 Exchange-traded investments 848 848 - - Total Assets $ 1,890 $ 1,144 $ - $ 746 Liabilities: Derivatives, net $ 32,872 $ 124 $ - $ 32,748 Deferred compensation 3,078 - 3,078 - Total Liabilities $ 35,950 $ 124 $ 3,078 $ 32,748 MGE Assets: Derivatives, net $ 1,042 $ 296 $ - $ 746 Exchange-traded investments 43 43 - - Total Assets $ 1,085 $ 339 $ - $ 746 Liabilities: Derivatives, net $ 32,872 $ 124 $ - $ 32,748 Deferred compensation 3,078 - 3,078 - Total Liabilities $ 35,950 $ 124 $ 3,078 $ 32,748 (b) These amounts are shown gross and exclude $ million of collateral that was posted against derivative positions with counterparties as of September 30, 2019. |
Significant Unobservable Inputs | The following table presents the significant unobservable inputs used in the pricing model. Model Input Significant Unobservable Inputs September 30, 2019 December 31, 2018 Basis adjustment: On peak 92.2 % 92.1 % Off peak 92.8 % 92.8 % Counterparty fuel mix: Internal generation 40.0% - 60.0 % 50.0% - 75.0 % Purchased power 60.0% - 40.0 % 50.0% - 25.0 % |
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) 2019 2018 2019 2018 Beginning balance $ ( 33,337) $ ( 37,332) $ ( 32,002) $ ( 42,026) Realized and unrealized gains (losses): Included in regulatory assets 4,317 2,018 2,982 6,711 Included in other comprehensive income - - - - Included in earnings ( 492) 26 ( 1,928) ( 434) Included in current assets 4 ( 25) ( 198) ( 496) Purchases 5,205 5,736 16,827 17,602 Sales - - - - Issuances - - - - Settlements ( 4,717) ( 5,737) ( 14,701) ( 16,671) Transfers in and/or out of Level 3 - - - - Balance as of September 30, $ ( 29,020) $ ( 35,314) $ ( 29,020) $ ( 35,314) Total gains (losses) included in earnings attributed to the change in unrealized gains (losses) related to assets and liabilities held at September 30, (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) 2019 2018 2019 2018 Purchased Power Expense $ ( 409) $ 26 $ ( 1,658) $ ( 637) Cost of Gas Sold Expense ( 83) - ( 270) 203 Total $ ( 492) $ 26 $ ( 1,928) $ ( 434) (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. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 2019 2018 2019 2018 Residential $ 42,442 $ 42,371 $ 107,772 $ 107,847 Commercial 63,466 61,638 165,481 159,264 Industrial 3,760 3,668 10,013 11,193 Other-retail/municipal 9,543 9,431 26,728 26,245 Total retail 119,211 117,108 309,994 304,549 Sales to the market 1,163 1,505 3,914 6,334 Other revenues 233 562 978 1,750 Total electric revenues 120,607 119,175 314,886 312,633 Gas revenues Residential 11,342 11,916 67,659 64,087 Commercial/Industrial 4,825 5,570 40,833 38,728 Total retail 16,167 17,486 108,492 102,815 Gas transportation 1,126 829 3,756 3,018 Other revenues 84 92 299 319 Total gas revenues 17,377 18,407 112,547 106,152 Non-regulated energy revenues 214 213 481 904 Total Operating Revenue $ 138,198 $ 137,795 427,914 $ 419,689 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | The following tables show segment information for MGE Energy's operations for the indicated periods: (In thousands) MGE Energy Electric Gas Non-regulated Energy Transmission Investment All Others Consolidation/ Elimination Entries Consolidated Total Three Months Ended September 30, 2019 Operating revenues $ 120,607 $ 17,377 $ 214 $ - $ - $ - $ 138,198 Interdepartmental revenues 225 5,679 10,019 - - (15,923) - Total operating revenues 120,832 23,056 10,233 - - ( 15,923) 138,198 Depreciation and amortization ( 13,441) ( 2,879) ( 1,873) - - - ( 18,193) Other operating expenses ( 76,817) ( 20,217) ( 33) - ( 123) 15,923 ( 81,267) Operating income (loss) 30,574 ( 40) 8,327 - ( 123) - 38,738 Other income, net 1,817 855 - 2,372 160 - 5,204 Interest (expense) income, net ( 3,762) ( 1,059) ( 1,274) - 264 - ( 5,831) Income (loss) before taxes 28,629 ( 244) 7,053 2,372 301 - 38,111 Income tax (provision) benefit ( 4,948) 183 ( 1,922) ( 646) ( 121) - ( 7,454) Net income (loss) $ 23,681 $ ( 61) $ 5,131 $ 1,726 $ 180 $ - $ 30,657 Three Months Ended September 30, 2018 Operating revenues $ 119,175 $ 18,407 $ 213 $ - $ - $ - $ 137,795 Interdepartmental revenues ( 20) 4,219 9,912 - - (14,111) - Total operating revenues 119,155 22,626 10,125 - - ( 14,111) 137,795 Depreciation and amortization ( 9,864) ( 2,534) ( 1,861) - - - ( 14,259) Other operating expenses ( 77,847) ( 19,824) ( 36) ( 4) ( 138) 14,111 ( 83,738) Operating income (loss) 31,444 268 8,228 ( 4) ( 138) - 39,798 Other income, net 1,763 829 - 1,620 118 - 4,330 Interest (expense) income, net ( 3,217) ( 963) ( 1,320) - 475 - ( 5,025) Income before taxes 29,990 134 6,908 1,616 455 - 39,103 Income tax (provision) benefit ( 7,306) 42 ( 1,852) ( 441) ( 40) - ( 9,597) Net income $ 22,684 $ 176 $ 5,056 $ 1,175 $ 415 $ - $ 29,506 Nine Months Ended September 30, 2019 Operating revenues $ 314,886 $ 112,547 $ 481 $ - $ - $ - $ 427,914 Interdepartmental revenues 622 12,571 29,987 - - (43,180) - Total operating revenues 315,508 125,118 30,468 - - ( 43,180) 427,914 Depreciation and amortization ( 39,330) ( 8,482) ( 5,611) - - - ( 53,423) Other operating expenses ( 223,242) ( 104,587) ( 113) - ( 697) 43,180 ( 285,459) Operating income (loss) 52,936 12,049 24,744 - ( 697) - 89,032 Other income, net 5,258 2,579 - 6,808 429 - 15,074 Interest (expense) income, net ( 11,253) ( 3,132) ( 3,838) - 996 - ( 17,227) Income before taxes 46,941 11,496 20,906 6,808 728 - 86,879 Income tax provision ( 6,036) ( 2,848) ( 5,695) ( 1,856) ( 232) - ( 16,667) Net income $ 40,905 $ 8,648 $ 15,211 $ 4,952 $ 496 $ - $ 70,212 Nine Months Ended September 30, 2018 Operating revenues $ 312,633 $ 106,152 $ 904 $ - $ - $ - $ 419,689 Interdepartmental revenues ( 234) 12,059 29,579 - - (41,404) - Total operating revenues 312,399 118,211 30,483 - - ( 41,404) 419,689 Depreciation and amortization ( 28,817) ( 7,374) ( 5,563) - - - ( 41,754) Other operating expenses ( 228,957) ( 99,251) ( 113) ( 12) ( 789) 41,404 ( 287,718) Operating income (loss) 54,625 11,586 24,807 ( 12) ( 789) - 90,217 Other income, net 5,055 2,347 - 5,908 670 - 13,980 Interest (expense) income, net ( 9,036) ( 2,689) ( 4,002) - 1,180 - ( 14,547) Income before taxes 50,644 11,244 20,805 5,896 1,061 - 89,650 Income tax provision ( 11,492) ( 2,788) ( 5,638) ( 1,611) ( 263) - ( 21,792) Net income $ 39,152 $ 8,456 $ 15,167 $ 4,285 $ 798 $ - $ 67,858 The following tables show segment information for MGE's operations for the indicated periods: (In thousands) MGE Electric Gas Non-regulated Energy Consolidation/ Elimination Entries Consolidated Total Three Months Ended September 30, 2019 Operating revenues $ 120,607 $ 17,377 $ 214 $ - $ 138,198 Interdepartmental revenues 225 5,679 10,019 (15,923) - Total operating revenues 120,832 23,056 10,233 ( 15,923) 138,198 Depreciation and amortization ( 13,441) ( 2,879) ( 1,873) - ( 18,193) Other operating expenses ( 76,817) ( 20,217) ( 33) 15,923 ( 81,144) Operating income (loss) 30,574 ( 40) 8,327 - 38,861 Other income, net 1,817 855 - - 2,672 Interest expense, net ( 3,762) ( 1,059) ( 1,274) - ( 6,095) Income (loss) before taxes 28,629 ( 244) 7,053 - 35,438 Income tax (provision) benefit ( 4,948) 183 ( 1,922) - ( 6,687) Net income (loss) 23,681 ( 61) 5,131 - 28,751 Less: Net income attributable to noncontrolling interest, net of tax - - - ( 5,614) ( 5,614) Net income (loss) attributable to MGE $ 23,681 $ ( 61) $ 5,131 $ ( 5,614) $ 23,137 Three Months Ended September 30, 2018 Operating revenues $ 119,175 $ 18,407 $ 213 $ - $ 137,795 Interdepartmental revenues ( 20) 4,219 9,912 (14,111) - Total operating revenues 119,155 22,626 10,125 ( 14,111) 137,795 Depreciation and amortization ( 9,864) ( 2,534) ( 1,861) - ( 14,259) Other operating expenses ( 77,847) ( 19,824) ( 35) 14,111 ( 83,595) Operating income 31,444 268 8,229 - 39,941 Other income, net 1,763 829 - - 2,592 Interest expense, net ( 3,217) ( 963) ( 1,320) - ( 5,500) Income before taxes 29,990 134 6,909 - 37,033 Income tax provision ( 7,306) 42 ( 1,853) - ( 9,117) Net income 22,684 176 5,056 - 27,916 Less: Net income attributable to noncontrolling interest, net of tax - - - ( 5,629) ( 5,629) Net income attributable to MGE $ 22,684 $ 176 $ 5,056 $ ( 5,629) $ 22,287 Nine Months Ended September 30, 2019 Operating revenues $ 314,886 $ 112,547 $ 481 $ - $ 427,914 Interdepartmental revenues 622 12,571 29,987 (43,180) - Total operating revenues 315,508 125,118 30,468 ( 43,180) 427,914 Depreciation and amortization ( 39,330) ( 8,482) ( 5,611) - ( 53,423) Other operating expenses ( 223,242) ( 104,587) ( 113) 43,180 ( 284,762) Operating income 52,936 12,049 24,744 - 89,729 Other income, net 5,258 2,579 - - 7,837 Interest expense, net ( 11,253) ( 3,132) ( 3,838) - ( 18,223) Income before taxes 46,941 11,496 20,906 - 79,343 Income tax provision ( 6,036) ( 2,848) ( 5,695) - ( 14,579) Net income 40,905 8,648 15,211 - 64,764 Less: Net income attributable to noncontrolling interest, net of tax - - - ( 16,725) ( 16,725) Net income attributable to MGE $ 40,905 $ 8,648 $ 15,211 $ ( 16,725) $ 48,039 Nine Months Ended September 30, 2018 Operating revenues $ 312,633 $ 106,152 $ 904 $ - $ 419,689 Interdepartmental revenues ( 234) 12,059 29,579 (41,404) - Total operating revenues 312,399 118,211 30,483 ( 41,404) 419,689 Depreciation and amortization ( 28,817) ( 7,374) ( 5,563) - ( 41,754) Other operating expenses ( 228,957) ( 99,251) ( 113) 41,404 ( 286,917) Operating income 54,625 11,586 24,807 - 91,018 Other income, net 5,055 2,347 - - 7,402 Interest expense, net ( 9,036) ( 2,689) ( 4,002) - ( 15,727) Income before taxes 50,644 11,244 20,805 - 82,693 Income tax provision ( 11,492) ( 2,788) ( 5,638) - ( 19,918) Net income 39,152 8,456 15,167 - 62,775 Less: Net income attributable to noncontrolling interest, net of tax - - - ( 16,940) ( 16,940) Net income attributable to MGE $ 39,152 $ 8,456 $ 15,167 $ ( 16,940) $ 45,835 The following table shows segment information for assets and capital expenditures: Utility Consolidated (In thousands) MGE Energy Electric Gas Non-regulated Energy Transmission Investment All Others Consolidation/ Elimination Entries Total Assets: September 30, 2019 $ 1,288,752 $ 379,160 $ 259,542 $ 69,829 $ 447,307 $ ( 377,617) $ 2,066,973 December 31, 2018 1,193,083 377,005 265,301 66,366 465,661 ( 378,798) 1,988,618 Capital Expenditures: Nine months ended September 30, 2019 $ 101,609 $ 24,551 $ 2,229 $ - $ - $ - $ 128,389 Year ended Dec. 31, 2018 176,399 30,497 5,301 - - - 212,197 Utility Consolidated (In thousands) MGE Electric Gas Non-regulated Energy Elimination Entries Total Assets: September 30, 2019 $ 1,288,752 $ 379,160 $ 259,492 $ ( 377) $ 1,927,027 December 31, 2018 1,193,083 377,005 265,251 ( 448) 1,834,891 Capital Expenditures: Nine months ended September 30, 2019 $ 101,609 $ 24,551 $ 2,229 $ - $ 128,389 Year ended Dec. 31, 2018 176,399 30,497 5,301 - 212,197 |
Summary of Significant Accoun_3
Summary of Significant Accounting Principles (Details-1) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Cash Cash Equivalents And Restricted Cash [Line Items] | ||||
Cash and cash equivalents | $ 61,112,000 | $ 83,102,000 | ||
Restricted cash | 532,000 | 634,000 | ||
Receivable - margin account | 1,598,000 | 1,193,000 | ||
Cash, cash equivalents, and restricted cash | 63,242,000 | 84,929,000 | $ 135,041,000 | $ 112,094,000 |
MGE [Member] | ||||
Cash Cash Equivalents And Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 4,656,000 | 4,843,000 | ||
Restricted cash | 532,000 | 634,000 | ||
Receivable - margin account | 1,598,000 | 1,193,000 | ||
Cash, cash equivalents, and restricted cash | $ 6,786,000 | $ 6,670,000 | $ 48,450,000 | $ 10,093,000 |
Leases (Details-1)
Leases (Details-1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease Cost [Abstract] | ||
Amortization of leased assets, Depreciation and amortization | $ 425 | $ 1,295 |
Interest on lease liabilities, Interest expense, net | 199 | 597 |
Operating lease expense, Other operations and maintenance | 32 | 92 |
Total lease expense | $ 656 | $ 1,984 |
Leases (Details-2)
Leases (Details-2) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Lessee Disclosure [Abstract] | ||
Finance lease assets, net, Property, plant, and equipment, net | $ 16,275 | |
Operating lease assets, Other deferred assets and other | 300 | |
Total lease assets | 16,575 | |
Finance lease liabilities - current, Other current liabilities | 932 | |
Finance lease liabilities - long term, Finance lease liabilities | 17,657 | $ 1,771 |
Operating lease liabilities - current, Other current liabilities | 143 | |
Operating lease liabilities - long term, Other deferred liabilities and other | 185 | |
Total lease liabilities | $ 18,917 |
Leases (Details-3)
Leases (Details-3) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee Disclosure [Abstract] | |
Finance leases - Financing cash flows | $ 781 |
Finance leases - Operating cash flows | 597 |
Operating leases - operating cash flows | 108 |
Lease assets obtained in exchange for lease liabilities - finance leases | 12,081 |
Lease assets obtained in exchange for lease liabilities - operating leases | $ 239 |
Leases (Details-4)
Leases (Details-4) | Sep. 30, 2019 |
Lessee Disclosure [Abstract] | |
Weighted average remaining lease term (years) finance leases | 38 years |
Weighted average remaining lease term (years) operating leases | 5 years |
Weighted average disocunt rate finance leases | 4.36% |
Weighted average disocunt rate operating leases | 3.58% |
Leases (Details-5)
Leases (Details-5) $ in Thousands | Sep. 30, 2019USD ($) |
Finance Lease Liabilities Payments Due [Abstract] | |
2019 | $ 539 |
2020 | 1,644 |
2021 | 1,428 |
2022 | 1,309 |
2023 | 1,228 |
Thereafter | 41,317 |
Undiscounted finance lease liability | 47,465 |
Less: Present value discount | (28,876) |
Finance lease liability | 18,589 |
Operating Lease Liabilities Payments Due [Abstract] | |
2019 | 37 |
2020 | 152 |
2021 | 86 |
2022 | 33 |
2023 | 2 |
Thereafter | 52 |
Undiscounted operating lease liability | 362 |
Less: Present value discount | (34) |
Operating lease liability | $ 328 |
Leases (Details-6)
Leases (Details-6) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
Minimum lease payments, 2019 | $ 1,646 |
Minimum lease payments, 2020 | 1,371 |
Minimum lease payments, 2021 | 1,095 |
Minimum lease payments, 2022 | 989 |
Minimum lease payments, 2023 | 975 |
Minimum lease payments, Thereafter | $ 22,707 |
Investment in ATC and ATC Hol_3
Investment in ATC and ATC Holdco (Details-1) - USD ($) $ in Thousands | Oct. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | ||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Equity earnings from investment in ATC | $ 2,364 | $ 1,672 | $ 6,879 | $ 6,113 | ||||
Dividends from ATC | 1,781 | 1,581 | 5,526 | 5,336 | ||||
Capital contributions to investments | 888 | 533 | 5,894 | 4,801 | ||||
MGE Transco [Member] | ATC [Member] | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Equity earnings from investment in ATC | 2,364 | 1,672 | 6,879 | 6,113 | ||||
Dividends from ATC | 1,781 | 1,581 | [1] | 5,526 | 4,540 | [1] | ||
Capital contributions to investments | $ 888 | 533 | $ 2,131 | 2,308 | ||||
Dividend receivable from ATC | $ 1,600 | $ 1,600 | $ 2,300 | |||||
MGE Transco [Member] | ATC [Member] | Subsequent Event [Member] | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Capital contributions to investments | $ 900 | |||||||
[1] | MGE Transco recorded a $ 2.3 million dividend receivable from ATC as of December 31, 2017. A cash dividend was received in January of the following year. MGE Transco recorded a $ 1.6 million dividend receivable from ATC as of September 30, 2018. A cash dividend was received in October 2018. |
Investment in ATC and ATC Hol_4
Investment in ATC and ATC Holdco (Details-2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
ATC [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Operating revenues | $ 184,833 | $ 170,341 | $ 544,760 | $ 501,276 | |
Operating expenses | (94,713) | (87,959) | (278,673) | (264,326) | |
Other income, net | 484 | 439 | 1,031 | 2,070 | |
Interest expense, net | (29,165) | (27,754) | (87,121) | (82,411) | |
Earnings before members' income taxes | 61,439 | 55,067 | 179,997 | 156,609 | |
ATC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses | 7,600 | $ 7,200 | 22,800 | $ 21,700 | |
Due from related parties | $ 1,600 | $ 1,600 | $ 100 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||||
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 | 6.30% | 6.30% | 6.30% | 6.30% | |||
Amortized investment tax credits | (0.10%) | (0.10%) | (0.10%) | (0.10%) | |||
Credit for electricity from wind energy | (4.80%) | [1] | (0.30%) | (5.60%) | [1] | (0.30%) | |
AFUDC equity, net | (0.40%) | (0.60%) | (0.30%) | (0.80%) | |||
Amortization of utility excess deferred tax - tax reform | [2] | (1.90%) | (1.80%) | (2.20%) | (1.80%) | ||
Other, net, individually significant | (0.50%) | 0.00% | 0.10% | 0.00% | |||
Effective income tax rate | 19.60% | 24.50% | 19.20% | 24.30% | |||
Excess Deferred Taxes, Tax Cuts And Jobs Act [Member] | |||||||
Effects Of The Tax Cuts And Jobs Act [Abstract] | |||||||
Excess deferred tax - Income statement effect | $ 0.6 | $ 0.5 | $ 1.7 | $ 1.4 | |||
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 | (0.10%) | (0.10%) | (0.10%) | (0.10%) | |||
Credit for electricity from wind energy | (5.20%) | [1] | (0.20%) | (6.10%) | [1] | (0.30%) | |
AFUDC equity, net | (0.40%) | (0.60%) | (0.30%) | (0.80%) | |||
Amortization of utility excess deferred tax - tax reform | [2] | (2.10%) | (1.80%) | (2.40%) | (2.00%) | ||
Other, net, individually significant | (0.50%) | 0.10% | 0.10% | 0.10% | |||
Effective income tax rate | 18.90% | 24.60% | 18.40% | 24.10% | |||
[1] | Saratoga Wind Farm became operational in February 2019. | ||||||
[2] | Included are impacts of the Tax Cuts and Jobs Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting. For the three and nine months ended September 30, 2019, MGE recognized $ 0.6 million and $ 1.7 million, respectively, compared to $ 0.5 million and $ 1.4 million for the comparable periods in 2018. The amount and timing of the cash impacts will depend on the period over which certain income tax benefits are provided to customers, as determined by the PSCW. |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Deferred Net Periodic Benefit Cost [Abstract] | ||||
Deferred pension and OPRB costs | $ 1,300 | $ 4,600 | ||
Pension Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 1,040 | $ 1,431 | 3,402 | $ 4,292 |
Interest cost | 3,170 | 3,215 | 10,364 | 9,645 |
Expected return on assets | (5,054) | (6,560) | (16,523) | (19,680) |
Amortization of: | ||||
Prior service credit | (26) | (11) | (85) | (33) |
Actuarial loss | 1,637 | 1,319 | 5,351 | 3,958 |
Net periodic benefit (credit) cost | 767 | (606) | 2,509 | (1,818) |
Postretirement Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 276 | 320 | 829 | 962 |
Interest cost | 721 | 653 | 2,164 | 1,959 |
Expected return on assets | (677) | (808) | (2,034) | (2,424) |
Amortization of: | ||||
Transition obligation | 1 | 1 | 2 | 2 |
Prior service credit | (664) | (667) | (1,994) | (2,001) |
Actuarial loss | 100 | 122 | 300 | 366 |
Net periodic benefit (credit) cost | $ (243) | $ (379) | $ (733) | $ (1,136) |
Equity and Financing Arrangem_2
Equity and Financing Arrangements (Details) - USD ($) | Nov. 05, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Common Stock [Abstract] | |||||
Common stock issued during period | 0 | 0 | 0 | 0 | |
Dilutive Shares Calculation [Abstract] | |||||
Dilutive securities | $ 0 | ||||
Future Debt Issuance, 2.94% due 2029 | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 50,000,000 | ||||
Interest rate | 2.94% | ||||
Term | 10 years |
Share Based Compensation (Detai
Share Based Compensation (Details) - Performance Units [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 0.9 | $ 0.3 | $ 2.8 | $ 1.3 | |
Cash payments distributed related to awards previously granted and now payable | $ 1.5 | ||||
Awards forfeited during period, value | $ 0 | $ 0 | $ 0 | $ 0 | |
Awards forfeited during period, units | 0 | 0 | 0 | 0 | |
Outstanding awards vested during period | $ 6.2 | ||||
Director Incentive Agreement [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted during period (in units) | 5,175 | ||||
Award vesting period | 3 years | ||||
Performance Unit Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted during period (in units) | 17,022 | ||||
Award vesting period | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies (Details-1) | Sep. 30, 2019MW |
Minimum [Member] | |
EPA Greenhouse Gas Reduction Guidelines | |
Standard of Performance Plan For EGUs Over Threshold | 25 |
Commitments and Contingencies_3
Commitments and Contingencies (Details-2) | 9 Months Ended | |
Sep. 30, 2019USD ($) | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2019 | $ 22,925,000 | |
Purchase obligation, 2020 | 46,955,000 | |
Purchase obligation, 2021 | 31,328,000 | |
Purchase obligation, 2022 | 24,864,000 | |
Purchase obligation, 2023 | 22,570,000 | |
Purchase obligation, Thereafter | 89,013,000 | |
Coal [Member] | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2019 | 7,293,000 | [1] |
Purchase obligation, 2020 | 13,120,000 | [1] |
Purchase obligation, 2021 | 5,647,000 | [1] |
Purchase obligation, 2022 | 2,313,000 | [1] |
Purchase obligation, 2023 | 0 | [1] |
Purchase obligation, Thereafter | 0 | [1] |
Natural Gas, Transportation and Storage [Member] | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2019 | 6,258,000 | [2] |
Purchase obligation, 2020 | 21,997,000 | [2] |
Purchase obligation, 2021 | 21,728,000 | [2] |
Purchase obligation, 2022 | 21,728,000 | [2] |
Purchase obligation, 2023 | 21,728,000 | [2] |
Purchase obligation, Thereafter | 55,460,000 | [2] |
Natual Gas, Supply [Member] | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2019 | 8,773,000 | [3] |
Purchase obligation, 2020 | 10,600,000 | [3] |
Purchase obligation, 2021 | 0 | [3] |
Purchase obligation, 2022 | 0 | [3] |
Purchase obligation, 2023 | 0 | [3] |
Purchase obligation, Thereafter | 0 | [3] |
Solar farms | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2019 | 509,000 | [4] |
Purchase obligation, 2020 | 310,000 | [4] |
Purchase obligation, 2021 | 3,024,000 | [4] |
Purchase obligation, 2022 | 726,000 | [4] |
Purchase obligation, 2023 | 743,000 | [4] |
Purchase obligation, Thereafter | 32,474,000 | [4] |
Other [Member] | ||
Operating expense purchase contracts [Abstract] | ||
Purchase obligation, 2019 | 92,000 | |
Purchase obligation, 2020 | 928,000 | |
Purchase obligation, 2021 | 929,000 | |
Purchase obligation, 2022 | 97,000 | |
Purchase obligation, 2023 | 99,000 | |
Purchase obligation, Thereafter | 1,079,000 | |
Two Creeks Construction Commitment [Member] | ||
Long Term Purchase Commitment [Line Items] | ||
Minimum future capital commitments | 20,500,000 | |
Badger Hollow Construction Commitment [Member] | ||
Long Term Purchase Commitment [Line Items] | ||
Minimum future capital commitments | 53,200,000 | |
MGE Energy [Member] | Venture Capital Funds [Member] | ||
Other Commitments [Line Items] | ||
Other commitment, initial agreed upon commitment total | $ 10,000,000 | |
[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. | |
[4] | In 2019, MGE entered into commitments related to operations of the Two Creeks and Badger Hollow Solar Farms. See Footnote 14 for further information on the solar farm construction. |
Rate Matters (Details)
Rate Matters (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | Oct. 31, 2019 | |
Tax Cuts and Jobs Act [Member] | ||||
Effects Of The Tax Cuts And Jobs Act [Abstract] | ||||
Return of tax credit | $ 3,200,000 | $ 8,200,000 | ||
PSCW [Member] | MGE [Member] | ||||
Rate Proceedings [Abstract] | ||||
Authorized return on equity, percentage | 9.80% | 9.80% | ||
Approved equity capital structure, percentage | 56.60% | 56.10% | ||
Fuel Rules [Abstract] | ||||
Fuel rules, bandwidth | 2.00% | |||
Fuel rules, electric fuel deferred costs upper threshold | 102.00% | |||
Fuel rules, electric fuel deferred costs lower threshold | 98.00% | |||
Deferred fuel rules monitored costs | $ 500,000 | 9,500,000 | ||
Public Utilities Fuel Surcharge Amount | $ 500,000 | |||
Public Utilities Fuel Surcharge Percentage | 0.13% | |||
PSCW [Member] | MGE [Member] | Fuel Rules Refund, 2018 [Member] | Subsequent Event [Member] | ||||
Fuel Rules [Abstract] | ||||
Electric fuel credit ($) | $ 9,500,000 | |||
Electric Rate Proceeding [Member] | PSCW [Member] | MGE [Member] | ||||
Rate Proceedings [Abstract] | ||||
Authorized rate increase (decrease), percentage | (2.24%) | 0.00% | ||
Authorized rate increase (decrease), amount | $ (9,200,000) | |||
Gas Rate Proceeding [Member] | PSCW [Member] | MGE [Member] | ||||
Rate Proceedings [Abstract] | ||||
Authorized rate increase (decrease), percentage | 1.06% | 1.46% | ||
Authorized rate increase (decrease), amount | $ 1,700,000 | $ 2,400,000 |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments (Details-1) | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019USD ($)DthMWhMW | Dec. 31, 2018USD ($)DthMWhMW | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Derivative fair values [Abstract] | |||||||
Receivable, margin account balance, net of collateral posted against derivative positions | $ 1,598,000 | $ 1,193,000 | |||||
Collateral posted against derivative positions | 700,000 | ||||||
Other Current Assets [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative fair value, net | 1,031,000 | 377,000 | $ 878,000 | $ 894,000 | $ 640,000 | $ 806,000 | |
Receivable, margin account balance, net of collateral posted against derivative positions | 1,600,000 | 1,200,000 | |||||
Commodity Contracts And Financial Transimission Rights [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Derivative fair value, net | $ (200,000) | $ 700,000 | |||||
Commodity Derivative Contracts [Member] | |||||||
Gross Notional Volume of Open Derivatives | |||||||
Notional amount, energy measure (in MWh) | MWh | 466,760 | 386,440 | |||||
Notional amount, decatherm measure (in Dth) | Dth | 9,190,000 | 5,260,000 | |||||
Derivative fair values [Abstract] | |||||||
Asset Derivatives, fair value, gross basis | $ 749,000 | $ 801,000 | |||||
Liability Derivatives, fair value, gross basis | 1,285,000 | 342,000 | |||||
Collateral posted against derivative positions | 724,000 | 0 | |||||
Commodity Derivative Contracts [Member] | Other Current Assets [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Asset Derivatives, fair value, gross basis | 668,000 | 727,000 | |||||
Liability Derivatives, fair value, gross basis | 996,000 | [1] | 270,000 | ||||
Commodity Derivative Contracts [Member] | Other Deferred Charges [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Asset Derivatives, fair value, gross basis | 81,000 | 74,000 | |||||
Liability Derivatives, fair value, gross basis | 289,000 | [1] | $ 72,000 | ||||
Commodity Derivative Contracts [Member] | Cash Flow Hedging [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Collateral posted against derivative positions | $ 700,000 | ||||||
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 | 4,282 | 2,252 | |||||
Derivative fair values [Abstract] | |||||||
Asset Derivatives, fair value, gross basis | $ 344,000 | $ 241,000 | |||||
Collateral posted against derivative positions | 0 | 0 | |||||
Financial Transmission Rights [Member] | Other Current Assets [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Asset Derivatives, fair value, gross basis | 344,000 | 241,000 | |||||
Liability Derivatives, fair value, gross basis | $ 0 | $ 0 | |||||
PPA [Member] | |||||||
Gross Notional Volume of Open Derivatives | |||||||
Notional amount, power measure (in MW) | MW | 1,600 | 2,050 | |||||
Derivative fair values [Abstract] | |||||||
Derivative fair value, net | $ (29,000,000) | $ (32,500,000) | |||||
Liability Derivatives, fair value, gross basis | 28,990,000 | 32,530,000 | |||||
Collateral posted against derivative positions | 0 | 0 | |||||
PPA [Member] | Derivative Liability (Current) [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Liability Derivatives, fair value, gross basis | 10,390,000 | 8,550,000 | |||||
PPA [Member] | Derivative Liability (Long-term) [Member] | |||||||
Derivative fair values [Abstract] | |||||||
Liability Derivatives, fair value, gross basis | $ 18,600,000 | $ 23,980,000 | |||||
[1] | As of September 30, 2019, collateral of $ 0.7 million was posted against and netted with derivative liability positions on the consolidated balance sheets. No collateral was posted against derivative positions as of December 31, 2018. |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments (Details-2) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Commodity Derivative Contracts [Member] | ||
Offsetting Assets [Line Items] | ||
Gross amounts | $ 749 | $ 801 |
Gross amounts offset in balance sheet | (561) | (342) |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | 188 | 459 |
Financial Transmission Rights [Member] | ||
Offsetting Assets [Line Items] | ||
Gross amounts | 344 | 241 |
Gross amounts offset in balance sheet | 0 | 0 |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | $ 344 | $ 241 |
Derivative and Hedging Instru_5
Derivative and Hedging Instruments (Details-3) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Offsetting Liabilities [Line Items] | ||
Collateral posted against derivative positions | $ (700) | |
Commodity Derivative Contracts [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts | 1,285 | $ 342 |
Gross amounts offset in balance sheet | (561) | (342) |
Collateral posted against derivative positions | (724) | 0 |
Net amount presented in balance sheet | 0 | 0 |
Financial Transmission Rights [Member] | ||
Offsetting Liabilities [Line Items] | ||
Collateral posted against derivative positions | 0 | 0 |
Purchased Power Agreement [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts | 28,990 | 32,530 |
Gross amounts offset in balance sheet | 0 | 0 |
Collateral posted against derivative positions | 0 | 0 |
Net amount presented in balance sheet | $ 28,990 | $ 32,530 |
Derivative and Hedging Instru_6
Derivative and Hedging Instruments (Details-4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Current and Long-Term Regulatory Asset [Member] | ||||
Change In Derivative Fair Value [Roll Forward] | ||||
Beginning balance, | $ 33,515 | $ 36,924 | $ 31,830 | $ 41,958 |
Unrealized loss (gain) | (4,560) | (2,007) | (2,256) | (5,906) |
Realized (loss) gain reclassified to a deferred account | (411) | (316) | (1,402) | (837) |
Realized gain (loss) reclassified to income statement | 638 | 29 | 1,010 | (585) |
Ending balance, | 29,182 | 34,630 | 29,182 | 34,630 |
Other Current Assets [Member] | ||||
Change In Derivative Fair Value [Roll Forward] | ||||
Beginning balance, | 878 | 640 | 377 | 806 |
Unrealized loss (gain) | 0 | 0 | 0 | 0 |
Realized (loss) gain reclassified to a deferred account | 411 | 316 | 1,402 | 837 |
Realized gain (loss) reclassified to income statement | (258) | (62) | (748) | (749) |
Ending balance, | $ 1,031 | $ 894 | $ 1,031 | $ 894 |
Derivative and Hedging Instru_7
Derivative and Hedging Instruments (Details-5) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)counterparty | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)counterparty | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
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 | $ 471,000 | $ (145,000) | $ 1,038,000 | $ 39,000 | |
Commodity Derivative Contracts [Member] | Cost Of Gas Sold Expense [Member] | |||||
Realized losses (gains) on income statement [Line Items] | |||||
Realized losses (gains) on income statement | 83,000 | 0 | 460,000 | 637,000 | |
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 | (429,000) | (150,000) | (503,000) | (625,000) | |
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 | 20,000,000 | 20,000,000 | |||
Maximum collateral that may be required to be posted | 40,000,000 | 40,000,000 | |||
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 | (505,000) | 328,000 | (1,257,000) | 1,283,000 | |
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, 2019 | Dec. 31, 2018 | |
Fair Value Measurement [Domain] | |||
Liabilities: | |||
Unamortized discount and debt issuance costs, net | $ 4,200 | $ 4,500 | |
Carrying Amount [Member] | |||
Assets: | |||
Cash and cash equivalents | 61,112 | 83,102 | |
Liabilities: | |||
Short-term debt - commercial paper | 54,500 | 13,000 | |
Long-term debt | [1] | 499,027 | 502,431 |
Fair Value [Member] | |||
Assets: | |||
Cash and cash equivalents | 61,112 | 83,102 | |
Liabilities: | |||
Short-term debt - commercial paper | 54,500 | 13,000 | |
Long-term debt | [1] | 578,229 | 518,811 |
MGE [Member] | Fair Value Measurement [Domain] | |||
Liabilities: | |||
Unamortized discount and debt issuance costs, net | 4,200 | 4,500 | |
MGE [Member] | Carrying Amount [Member] | |||
Assets: | |||
Cash and cash equivalents | 4,656 | 4,843 | |
Liabilities: | |||
Short-term debt - commercial paper | 54,500 | 13,000 | |
Long-term debt | [1] | 499,027 | 502,431 |
MGE [Member] | Fair Value [Member] | |||
Assets: | |||
Cash and cash equivalents | 4,656 | 4,843 | |
Liabilities: | |||
Short-term debt - commercial paper | 54,500 | 13,000 | |
Long-term debt | [1] | $ 578,229 | $ 518,811 |
[1] | Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $ 4.2 $ 4.5 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details-2) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Liabilities: | |||
Collateral posted against derivative positions | $ 700 | ||
Recurring [Member] | |||
Assets: | |||
Derivatives | 1,093 | [1] | $ 1,042 |
Total Assets | 2,094 | 1,890 | |
Liabilities: | |||
Derivatives | 30,275 | 32,872 | |
Deferred compensation | 3,025 | 3,078 | |
Total liabilities | 33,300 | 35,950 | |
Recurring [Member] | Exchange Traded [Member] | |||
Assets: | |||
Available-for-sale securities | 1,001 | 848 | |
Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivatives | 525 | [1] | 296 |
Total Assets | 1,526 | 1,144 | |
Liabilities: | |||
Derivatives | 687 | 124 | |
Deferred compensation | 0 | 0 | |
Total liabilities | 687 | 124 | |
Recurring [Member] | Level 1 [Member] | Exchange Traded [Member] | |||
Assets: | |||
Available-for-sale securities | 1,001 | 848 | |
Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivatives | 0 | [1] | 0 |
Total Assets | 0 | 0 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Deferred compensation | 3,025 | 3,078 | |
Total liabilities | 3,025 | 3,078 | |
Recurring [Member] | Level 2 [Member] | Exchange Traded [Member] | |||
Assets: | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivatives | 568 | [1] | 746 |
Total Assets | 568 | 746 | |
Liabilities: | |||
Derivatives | 29,588 | 32,748 | |
Deferred compensation | 0 | 0 | |
Total liabilities | 29,588 | 32,748 | |
Recurring [Member] | Level 3 [Member] | Exchange Traded [Member] | |||
Assets: | |||
Available-for-sale securities | 0 | 0 | |
MGE [Member] | |||
Liabilities: | |||
Collateral posted against derivative positions | 700 | ||
MGE [Member] | Recurring [Member] | |||
Assets: | |||
Derivatives | 1,093 | [1] | 1,042 |
Total Assets | 1,271 | 1,085 | |
Liabilities: | |||
Derivatives | 30,275 | 32,872 | |
Deferred compensation | 3,025 | 3,078 | |
Total liabilities | 33,300 | 35,950 | |
MGE [Member] | Recurring [Member] | Exchange Traded [Member] | |||
Assets: | |||
Available-for-sale securities | 178 | 43 | |
MGE [Member] | Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivatives | 525 | [1] | 296 |
Total Assets | 703 | 339 | |
Liabilities: | |||
Derivatives | 687 | 124 | |
Deferred compensation | 0 | 0 | |
Total liabilities | 687 | 124 | |
MGE [Member] | Recurring [Member] | Level 1 [Member] | Exchange Traded [Member] | |||
Assets: | |||
Available-for-sale securities | 178 | 43 | |
MGE [Member] | Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivatives | 0 | [1] | 0 |
Total Assets | 0 | 0 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Deferred compensation | 3,025 | 3,078 | |
Total liabilities | 3,025 | 3,078 | |
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 | 568 | [1] | 746 |
Total Assets | 568 | 746 | |
Liabilities: | |||
Derivatives | 29,588 | 32,748 | |
Deferred compensation | 0 | 0 | |
Total liabilities | 29,588 | 32,748 | |
MGE [Member] | Recurring [Member] | Level 3 [Member] | Exchange Traded [Member] | |||
Assets: | |||
Available-for-sale securities | $ 0 | $ 0 | |
[1] | These amounts are shown gross and exclude $ million of collateral that was posted against derivative positions with counterparties as of September 30, 2019. |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Details-3) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Basis adjustment: | ||
Basis adjustment - on peak | 92.20% | 92.10% |
Basis adjustment - off peak | 92.80% | 92.80% |
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 | 40.00% | 50.00% |
Purchased power | 40.00% | 25.00% |
Maximum [Member] | ||
Counterparty fuel mix: | ||
Internal generation | 60.00% | 75.00% |
Purchased power | 60.00% | 50.00% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Details-4) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance, | $ (33,337,000) | $ (37,332,000) | $ (32,002,000) | $ (42,026,000) | |
Realized and unrealized gains (losses): | |||||
Included in regulatory assets | 4,317,000 | 2,018,000 | 2,982,000 | 6,711,000 | |
Included in other comprehensive income | 0 | 0 | 0 | 0 | |
Included in earnings | [1] | (492,000) | 26,000 | (1,928,000) | (434,000) |
Included in current assets | 4,000 | (25,000) | (198,000) | (496,000) | |
Purchases | 5,205,000 | 5,736,000 | 16,827,000 | 17,602,000 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (4,717,000) | (5,737,000) | (14,701,000) | (16,671,000) | |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 | |
Ending balance, | $ (29,020,000) | $ (35,314,000) | $ (29,020,000) | $ (35,314,000) | |
[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 ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
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] | (492,000) | 26,000 | (1,928,000) | (434,000) |
Purchased Power Expense [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Included in earnings | [1] | (409,000) | 26,000 | (1,658,000) | (637,000) |
Cost Of Gas Sold Expense [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Included in earnings | [1] | $ (83,000) | $ 0 | $ (270,000) | $ 203,000 |
[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. |
Asset Retirement Obligation (De
Asset Retirement Obligation (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Saratoga Wind Farm [Member] | |
Asset Retirement Obligations [Roll Forward] | |
Saratoga Wind Asset Retirement Obligation | $ 1.5 |
Joint Plant Ownership (Details)
Joint Plant Ownership (Details) - MGE [Member] | Sep. 30, 2019USD ($)MW |
Two Creeks Units [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Jointly owned utility plant, ownership interest | 33.00% |
Jointly owned utility plant, plant capacity (in MW) | MW | 150 |
Projected Solar Farm Project Costs | $ 65,000,000 |
Public Utilities Property Plant And Equipment Construction Work In Progress | $ 42,100,000 |
Badger Hollow Units [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Jointly owned utility plant, ownership interest | 33.00% |
Jointly owned utility plant, plant capacity (in MW) | MW | 150 |
Projected Solar Farm Project Costs | $ 65,000,000 |
Public Utilities Property Plant And Equipment Construction Work In Progress | $ 10,000,000 |
Revenue (Details-1)
Revenue (Details-1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total Operating Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | $ 138,198 | $ 137,795 | $ 427,914 | $ 419,689 |
Electric [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 120,607 | 119,175 | 314,886 | 312,633 |
Electric [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 42,442 | 42,371 | 107,772 | 107,847 |
Electric [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 63,466 | 61,638 | 165,481 | 159,264 |
Electric [Member] | Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 3,760 | 3,668 | 10,013 | 11,193 |
Electric [Member] | Other-retail/municipal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 9,543 | 9,431 | 26,728 | 26,245 |
Electric [Member] | Total Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 119,211 | 117,108 | 309,994 | 304,549 |
Electric [Member] | Sales To The Market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 1,163 | 1,505 | 3,914 | 6,334 |
Electric [Member] | Other Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 233 | 562 | 978 | 1,750 |
Gas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 17,377 | 18,407 | 112,547 | 106,152 |
Gas [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 11,342 | 11,916 | 67,659 | 64,087 |
Gas [Member] | Commercial/Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 4,825 | 5,570 | 40,833 | 38,728 |
Gas [Member] | Total Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 16,167 | 17,486 | 108,492 | 102,815 |
Gas [Member] | Gas Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 1,126 | 829 | 3,756 | 3,018 |
Gas [Member] | Other Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | 84 | 92 | 299 | 319 |
Non Regulated Energy [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues recognized from contracts with customers | $ 214 | $ 213 | $ 481 | $ 904 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Operating revenues | $ 138,198 | $ 137,795 | $ 427,914 | $ 419,689 | |
Depreciation and amortization | (18,193) | (14,259) | (53,423) | (41,754) | |
Other operating expenses | (81,267) | (83,738) | (285,459) | (287,718) | |
Operating income (loss) | 38,738 | 39,798 | 89,032 | 90,217 | |
Other income (deductions), net | 5,204 | 4,330 | 15,074 | 13,980 | |
Interest (expense) income, net | (5,831) | (5,025) | (17,227) | (14,547) | |
Income before income taxes | 38,111 | 39,103 | 86,879 | 89,650 | |
Income tax (provision) benefit | (7,454) | (9,597) | (16,667) | (21,792) | |
Net Income Including Noncontrolling Interest | 30,657 | 29,506 | 70,212 | 67,858 | |
Net Income | 30,657 | 29,506 | 70,212 | 67,858 | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | 2,066,973 | 2,066,973 | $ 1,988,618 | ||
Capital expenditures | 128,389 | 149,001 | 212,197 | ||
Electric [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 120,607 | 119,175 | 314,886 | 312,633 | |
Gas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 17,377 | 18,407 | 112,547 | 106,152 | |
Non Regulated Energy [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 214 | 213 | 481 | 904 | |
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 | 138,198 | 137,795 | 427,914 | 419,689 | |
Operating Segments [Member] | Electric [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 120,832 | 119,155 | 315,508 | 312,399 | |
Depreciation and amortization | (13,441) | (9,864) | (39,330) | (28,817) | |
Other operating expenses | (76,817) | (77,847) | (223,242) | (228,957) | |
Operating income (loss) | 30,574 | 31,444 | 52,936 | 54,625 | |
Other income (deductions), net | 1,817 | 1,763 | 5,258 | 5,055 | |
Interest (expense) income, net | (3,762) | (3,217) | (11,253) | (9,036) | |
Income before income taxes | 28,629 | 29,990 | 46,941 | 50,644 | |
Income tax (provision) benefit | (4,948) | (7,306) | (6,036) | (11,492) | |
Net Income | 23,681 | 22,684 | 40,905 | 39,152 | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | 1,288,752 | 1,288,752 | 1,193,083 | ||
Capital expenditures | 101,609 | 176,399 | |||
Operating Segments [Member] | Gas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 23,056 | 22,626 | 125,118 | 118,211 | |
Depreciation and amortization | (2,879) | (2,534) | (8,482) | (7,374) | |
Other operating expenses | (20,217) | (19,824) | (104,587) | (99,251) | |
Operating income (loss) | (40) | 268 | 12,049 | 11,586 | |
Other income (deductions), net | 855 | 829 | 2,579 | 2,347 | |
Interest (expense) income, net | (1,059) | (963) | (3,132) | (2,689) | |
Income before income taxes | (244) | 134 | 11,496 | 11,244 | |
Income tax (provision) benefit | 183 | 42 | (2,848) | (2,788) | |
Net Income | (61) | 176 | 8,648 | 8,456 | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | 379,160 | 379,160 | 377,005 | ||
Capital expenditures | 24,551 | 30,497 | |||
Operating Segments [Member] | Non Regulated Energy [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 10,233 | 10,125 | 30,468 | 30,483 | |
Depreciation and amortization | (1,873) | (1,861) | (5,611) | (5,563) | |
Other operating expenses | (33) | (36) | (113) | (113) | |
Operating income (loss) | 8,327 | 8,228 | 24,744 | 24,807 | |
Other income (deductions), net | 0 | 0 | 0 | 0 | |
Interest (expense) income, net | (1,274) | (1,320) | (3,838) | (4,002) | |
Income before income taxes | 7,053 | 6,908 | 20,906 | 20,805 | |
Income tax (provision) benefit | (1,922) | (1,852) | (5,695) | (5,638) | |
Net Income | 5,131 | 5,056 | 15,211 | 15,167 | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | 259,542 | 259,542 | 265,301 | ||
Capital expenditures | 2,229 | 5,301 | |||
Operating Segments [Member] | Transmission Investment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Other operating expenses | 0 | (4) | 0 | (12) | |
Operating income (loss) | 0 | (4) | 0 | (12) | |
Other income (deductions), net | 2,372 | 1,620 | 6,808 | 5,908 | |
Interest (expense) income, net | 0 | 0 | 0 | 0 | |
Income before income taxes | 2,372 | 1,616 | 6,808 | 5,896 | |
Income tax (provision) benefit | (646) | (441) | (1,856) | (1,611) | |
Net Income | 1,726 | 1,175 | 4,952 | 4,285 | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | 69,829 | 69,829 | 66,366 | ||
Capital expenditures | 0 | 0 | |||
Operating Segments [Member] | All Others [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Other operating expenses | (123) | (138) | (697) | (789) | |
Operating income (loss) | (123) | (138) | (697) | (789) | |
Other income (deductions), net | 160 | 118 | 429 | 670 | |
Interest (expense) income, net | 264 | 475 | 996 | 1,180 | |
Income before income taxes | 301 | 455 | 728 | 1,061 | |
Income tax (provision) benefit | (121) | (40) | (232) | (263) | |
Net Income | 180 | 415 | 496 | 798 | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | 447,307 | 447,307 | 465,661 | ||
Capital expenditures | 0 | 0 | |||
Consolidation Elimination Entries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | (15,923) | (14,111) | (43,180) | (41,404) | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Other operating expenses | 15,923 | 14,111 | 43,180 | 41,404 | |
Operating income (loss) | 0 | 0 | 0 | 0 | |
Other income (deductions), net | 0 | 0 | 0 | 0 | |
Interest (expense) income, net | 0 | 0 | 0 | 0 | |
Income before income taxes | 0 | 0 | 0 | 0 | |
Income tax (provision) benefit | 0 | 0 | 0 | 0 | |
Net Income | 0 | 0 | 0 | 0 | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | (377,617) | (377,617) | (378,798) | ||
Capital expenditures | 0 | 0 | |||
Consolidation Elimination Entries [Member] | Electric [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 225 | (20) | 622 | (234) | |
Consolidation Elimination Entries [Member] | Gas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 5,679 | 4,219 | 12,571 | 12,059 | |
Consolidation Elimination Entries [Member] | Non Regulated Energy [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 10,019 | 9,912 | 29,987 | 29,579 | |
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 | 138,198 | 137,795 | 427,914 | 419,689 | |
Depreciation and amortization | (18,193) | (14,259) | (53,423) | (41,754) | |
Other operating expenses | (81,144) | (83,595) | (284,762) | (286,917) | |
Operating income (loss) | 38,861 | 39,941 | 89,729 | 91,018 | |
Other income (deductions), net | 2,672 | 2,592 | 7,837 | 7,402 | |
Interest (expense) income, net | (6,095) | (5,500) | (18,223) | (15,727) | |
Income before income taxes | 35,438 | 37,033 | 79,343 | 82,693 | |
Income tax (provision) benefit | (6,687) | (9,117) | (14,579) | (19,918) | |
Net Income Including Noncontrolling Interest | 28,751 | 27,916 | 64,764 | 62,775 | |
Less Net Income Attributable to Noncontrolling Interest, net of tax | (5,614) | (5,629) | (16,725) | (16,940) | |
Net Income | 23,137 | 22,287 | 48,039 | 45,835 | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | 1,927,027 | 1,927,027 | 1,834,891 | ||
Capital expenditures | 128,389 | 149,001 | 212,197 | ||
MGE [Member] | Electric [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 120,607 | 119,175 | 314,886 | 312,633 | |
MGE [Member] | Gas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 17,377 | 18,407 | 112,547 | 106,152 | |
MGE [Member] | Non Regulated Energy [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 214 | 213 | 481 | 904 | |
MGE [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 138,198 | 137,795 | 427,914 | 419,689 | |
MGE [Member] | Operating Segments [Member] | Electric [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 120,832 | 119,155 | 315,508 | 312,399 | |
Depreciation and amortization | (13,441) | (9,864) | (39,330) | (28,817) | |
Other operating expenses | (76,817) | (77,847) | (223,242) | (228,957) | |
Operating income (loss) | 30,574 | 31,444 | 52,936 | 54,625 | |
Other income (deductions), net | 1,817 | 1,763 | 5,258 | 5,055 | |
Interest (expense) income, net | (3,762) | (3,217) | (11,253) | (9,036) | |
Income before income taxes | 28,629 | 29,990 | 46,941 | 50,644 | |
Income tax (provision) benefit | (4,948) | (7,306) | (6,036) | (11,492) | |
Net Income Including Noncontrolling Interest | 23,681 | 22,684 | 40,905 | 39,152 | |
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | 0 | |
Net Income | 23,681 | 22,684 | 40,905 | 39,152 | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | 1,288,752 | 1,288,752 | 1,193,083 | ||
Capital expenditures | 101,609 | 176,399 | |||
MGE [Member] | Operating Segments [Member] | Gas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 23,056 | 22,626 | 125,118 | 118,211 | |
Depreciation and amortization | (2,879) | (2,534) | (8,482) | (7,374) | |
Other operating expenses | (20,217) | (19,824) | (104,587) | (99,251) | |
Operating income (loss) | (40) | 268 | 12,049 | 11,586 | |
Other income (deductions), net | 855 | 829 | 2,579 | 2,347 | |
Interest (expense) income, net | (1,059) | (963) | (3,132) | (2,689) | |
Income before income taxes | (244) | 134 | 11,496 | 11,244 | |
Income tax (provision) benefit | 183 | 42 | (2,848) | (2,788) | |
Net Income Including Noncontrolling Interest | (61) | 176 | 8,648 | 8,456 | |
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | 0 | |
Net Income | (61) | 176 | 8,648 | 8,456 | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | 379,160 | 379,160 | 377,005 | ||
Capital expenditures | 24,551 | 30,497 | |||
MGE [Member] | Operating Segments [Member] | Non Regulated Energy [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 10,233 | 10,125 | 30,468 | 30,483 | |
Depreciation and amortization | (1,873) | (1,861) | (5,611) | (5,563) | |
Other operating expenses | (33) | (35) | (113) | (113) | |
Operating income (loss) | 8,327 | 8,229 | 24,744 | 24,807 | |
Other income (deductions), net | 0 | 0 | 0 | 0 | |
Interest (expense) income, net | (1,274) | (1,320) | (3,838) | (4,002) | |
Income before income taxes | 7,053 | 6,909 | 20,906 | 20,805 | |
Income tax (provision) benefit | (1,922) | (1,853) | (5,695) | (5,638) | |
Net Income Including Noncontrolling Interest | 5,131 | 5,056 | 15,211 | 15,167 | |
Less Net Income Attributable to Noncontrolling Interest, net of tax | 0 | 0 | 0 | 0 | |
Net Income | 5,131 | 5,056 | 15,211 | 15,167 | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | 259,492 | 259,492 | 265,251 | ||
Capital expenditures | 2,229 | 5,301 | |||
MGE [Member] | Consolidation Elimination Entries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | (15,923) | (14,111) | (43,180) | (41,404) | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Other operating expenses | 15,923 | 14,111 | 43,180 | 41,404 | |
Operating income (loss) | 0 | 0 | 0 | 0 | |
Other income (deductions), net | 0 | 0 | 0 | 0 | |
Interest (expense) income, net | 0 | 0 | 0 | 0 | |
Income before income taxes | 0 | 0 | 0 | 0 | |
Income tax (provision) benefit | 0 | 0 | 0 | 0 | |
Net Income Including Noncontrolling Interest | 0 | 0 | 0 | 0 | |
Less Net Income Attributable to Noncontrolling Interest, net of tax | (5,614) | (5,629) | (16,725) | (16,940) | |
Net Income | (5,614) | (5,629) | (16,725) | (16,940) | |
Segment Reporting Assets And Capital Expenditures [Abstract] | |||||
Assets | (377) | (377) | (448) | ||
Capital expenditures | 0 | $ 0 | |||
MGE [Member] | Consolidation Elimination Entries [Member] | Electric [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 225 | (20) | 622 | (234) | |
MGE [Member] | Consolidation Elimination Entries [Member] | Gas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 5,679 | 4,219 | 12,571 | 12,059 | |
MGE [Member] | Consolidation Elimination Entries [Member] | Non Regulated Energy [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | $ 10,019 | $ 9,912 | $ 29,987 | $ 29,579 |