MGE ENERGY INC
For the period ended Dec 31, 2023. Filed Feb 21, 2024.
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FY2023 · Filed Feb 21, 2024
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21. Noncontrolling Interest
olling Interest - MGE.
The noncontrolling interest on MGE's consolidated balance sheets as of December 31:
| (In thousands) | 2023 | 2022 |
|---|---|---|
| MGE Power Elm Road(a) | $103,751 | $103,333 |
| MGE Power West Campus(a) | 45,780 | 44,830 |
| Total Noncontrolling Interest | $149,531 | $148,163 |
The net income attributable to noncontrolling interest, net of tax, was as follows for the years ended December 31:
| (In thousands) | 2023 | 2022 | 2021 |
|---|---|---|---|
| MGE Power Elm Road(a) | $14,668 | $14,326 | $15,151 |
| MGE Power West Campus(a) | 7,200 | 7,250 | 7,240 |
| Net Income Attributable to Noncontrolling Interest, Net of Tax | $21,868 | $21,576 | $22,391 |
(a)
MGE Power Elm Road and MGE Power West Campus are not subsidiaries of MGE; however, they have been consolidated in the consolidated financial statements of MGE (see Footnote 3). MGE Power Elm Road and MGE Power West Campus are 100% owned by MGE Power, and MGE Power is 100% owned by MGE Energy. MGE Energy's proportionate share of the equity and net income (through its wholly owned subsidiary MGE Power) of MGE Power Elm Road and MGE Power West Campus is classified within the MGE consolidated financial statements as noncontrolling interest.
Segment Inform
ation - MGE Energy and MGE.
The electric utility business purchases, generates and distributes electricity, and contracts for transmission service. The gas utility business purchases and distributes natural gas and contracts for the transportation of natural gas. Both the electric and gas segments operate through MGE Energy's principal subsidiary, MGE.
The nonregulated energy operations are conducted through MGE Energy's subsidiaries: MGE Power, MGE Power Elm Road, and MGE Power West Campus. These subsidiaries own electric generating capacity that they lease to MGE to assist MGE. MGE Power Elm Road has an ownership interest in two coal-fired generating units in Oak Creek, Wisconsin, which are leased to MGE, and MGE Power West Campus owns a controlling interest in the electric generation plant of a natural gas-fired cogeneration facility on the UW campus. MGE Power West Campus's portion is also leased to MGE.
The transmission investment segment invests in ATC, a company that provides electric transmission services primarily in Wisconsin, and ATC Holdco, a company formed to pursue electric transmission development and investments outside of Wisconsin. These investments are held in MGE Transco and MGEE Transco, respectively. See Footnote 7 for further discussion.
The "All Others" segment includes: corporate, CWDC, MAGAEL, MGE State Energy Services, MGE Services, and North Mendota. These entities' operations consist of investing in companies and property which relate to the regulated operations, and financing the regulated operations.
General corporate expenses include the cost of executive management, corporate accounting and finance, information technology, risk management, human resources and legal functions, and employee benefits that are allocated to electric and gas segments based on formulas prescribed by the PSCW. Identifiable assets are those used in MGE's operations in each segment.
Sales between our electric and gas segments are based on PSCW approved tariffed rates. Additionally, intersegment operations related to the leasing arrangement between our electric segment and MGE Power Elm Road/MGE Power West Campus are based on terms previously approved by the PSCW. Consistent with internal reporting, management has presented the direct financing capital leases between MGE and MGE Power Elm Road/MGE Power West Campus based on actual lease payments included in rates. Lease payments made by MGE to MGE Power Elm Road and MGE Power West Campus are shown as operating expenses. The lease payments received by MGE Power Elm Road and MGE Power West Campus from MGE are shown as lease income in interdepartmental revenues. The depreciation expense associated with the Elm Road Units and WCCF is reflected in the nonregulated energy segment.
The following table shows segment information for MGE Energy's and MGE's operations:
| (In thousands)MGE Energy | Electric | Gas | Non-Regulated Energy | Transmission Investment | All Others | Consolidation/ Elimination Entries | Consolidated Total |
|---|---|---|---|---|---|---|---|
| Operating revenues | $489,729 | $200,012 | $690 | $— | $— | $— | $690,431 |
| Interdepartmental revenues | 922 | 15,501 | 41,586 | — | — | (58,009) | — |
| Total operating revenues | 490,651 | 215,513 | 42,276 | — | — | (58,009) | 690,431 |
| Depreciation and amortization | (77,440) | (15,531) | (7,381) | — | — | — | (100,352) |
| Operating income (loss) | 90,991 | 21,663 | 34,729 | — | (998) | — | 146,385 |
| Interest (expense) income, net | (20,609) | (6,038) | (4,004) | 2 | 220 | — | (30,429) |
| Income tax (provision) benefit | (10,182) | (7,175) | (8,370) | (2,897) | 821 | — | (27,803) |
| Equity in earnings of investments | — | — | — | 10,631 | — | — | 10,631 |
| Net income (loss) | 75,946 | 14,068 | 22,356 | 7,736 | (2,407) | — | 117,699 |
| Operating revenues | $465,167 | $248,672 | $680 | $— | $— | $— | $714,519 |
| Interdepartmental revenues | (44) | 34,073 | 41,555 | — | — | (75,584) | — |
| Total operating revenues | 465,123 | 282,745 | 42,235 | — | — | (75,584) | 714,519 |
| Depreciation and amortization | (62,897) | (15,261) | (7,391) | — | — | — | (85,549) |
| Operating income (loss) | 77,672 | 26,261 | 34,683 | — | (873) | — | 137,743 |
| Interest (expense) income, net | (17,578) | (4,787) | (4,322) | — | 40 | — | (26,647) |
| Income tax (provision) benefit | (7,299) | (8,492) | (8,272) | (2,490) | 329 | — | (26,224) |
| Equity in earnings of investments | — | — | — | 9,136 | — | — | 9,136 |
| Net income (loss) | 65,187 | 18,215 | 22,090 | 6,647 | (1,187) | — | 110,952 |
| Operating revenues | $420,286 | $185,620 | $678 | $— | $— | $— | $606,584 |
| Interdepartmental revenues | 556 | 22,728 | 40,866 | — | — | (64,150) | — |
| Total operating revenues | 420,842 | 208,348 | 41,544 | — | — | (64,150) | 606,584 |
| Depreciation and amortization | (56,672) | (12,852) | (7,459) | — | — | — | (76,983) |
| Operating income (loss) | 58,993 | 25,133 | 33,936 | — | (768) | — | 117,294 |
| Interest (expense) income, net | (15,261) | (4,315) | (4,577) | — | 41 | — | (24,112) |
| Income tax (provision) benefit | 10,672 | (4,922) | (7,998) | (2,486) | 619 | — | (4,115) |
| Equity in earnings of investments | — | — | — | 9,339 | (69) | — | 9,270 |
| Net income (loss) | 63,910 | 15,511 | 21,361 | 6,852 | (1,873) | — | 105,761 |
| (In thousands)MGE | Electric | Gas | Non-Regulated Energy | Consolidation/ Elimination Entries | Consolidated Total |
|---|---|---|---|---|---|
| Operating revenues | $489,729 | $200,012 | $690 | $— | $690,431 |
| Interdepartmental revenues | 922 | 15,501 | 41,586 | (58,009) | — |
| Total operating revenues | 490,651 | 215,513 | 42,276 | (58,009) | 690,431 |
| Depreciation and amortization | (77,440) | (15,531) | (7,381) | — | (100,352) |
| Operating income | 90,991 | 21,663 | 34,729 | — | 147,383 |
| Interest expense, net | (20,609) | (6,038) | (4,004) | — | (30,651) |
| Income tax provision | (10,182) | (7,175) | (8,370) | — | (25,727) |
| Net income attributable to MGE | 75,946 | 14,068 | 22,356 | (21,868) | 90,502 |
| Operating revenues | $465,167 | $248,672 | $680 | $— | $714,519 |
| Interdepartmental revenues | (44) | 34,073 | 41,555 | (75,584) | — |
| Total operating revenues | 465,123 | 282,745 | 42,235 | (75,584) | 714,519 |
| Depreciation and amortization | (62,897) | (15,261) | (7,391) | — | (85,549) |
| Operating income | 77,672 | 26,261 | 34,683 | — | 138,616 |
| Interest expense, net | (17,578) | (4,787) | (4,322) | — | (26,687) |
| Income tax provision | (7,299) | (8,492) | (8,272) | — | (24,063) |
| Net income attributable to MGE | 65,187 | 18,215 | 22,090 | (21,576) | 83,916 |
| Operating revenues | $420,286 | $185,620 | $678 | $— | $606,584 |
| Interdepartmental revenues | 556 | 22,728 | 40,866 | (64,150) | — |
| Total operating revenues | 420,842 | 208,348 | 41,544 | (64,150) | 606,584 |
| Depreciation and amortization | (56,672) | (12,852) | (7,459) | — | (76,983) |
| Operating income | 58,993 | 25,133 | 33,936 | — | 118,062 |
| Interest expense, net | (15,261) | (4,315) | (4,577) | — | (24,153) |
| Income tax benefit (provision) | 10,672 | (4,922) | (7,998) | — | (2,248) |
| Net income attributable to MGE | 63,910 | 15,511 | 21,361 | (22,391) | 78,391 |
The following table shows segment information for MGE Energy's and MGE's assets and capital expenditures:
| Utility · Consolidated | |||||||
|---|---|---|---|---|---|---|---|
| (In thousands) MGE Energy | Electric | Gas | Non-regulated Energy | Transmission Investment(a) | All Others | Consolidation/ Elimination Entries | Total |
| Assets: | |||||||
| December 31, 2023 | $1,777,903 | $533,876 | $245,232 | $86,516 | $469,392 | $(437,461) | $2,675,458 |
| December 31, 2022 | 1,626,373 | 530,733 | 247,841 | 80,642 | 467,112 | (435,101) | 2,517,600 |
| December 31, 2021 | 1,525,163 | 485,345 | 252,584 | 75,990 | 467,954 | (435,130) | 2,371,906 |
| Capital Expenditures: | |||||||
| Year ended Dec. 31, 2023 | $180,743 | $36,402 | $4,926 | $— | $— | $— | $222,071 |
| Year ended Dec. 31, 2022 | 141,273 | 27,656 | 6,101 | — | — | — | 175,030 |
| Year ended Dec. 31, 2021 | 115,234 | 34,071 | 3,864 | — | — | — | 153,169 |
| Utility · Consolidated | |||||
|---|---|---|---|---|---|
| (In thousands)MGE | Electric | Gas | Non-regulated Energy | Consolidation/ Elimination Entries | Total |
| Assets: | |||||
| December 31, 2023 | $1,777,903 | $533,876 | $245,181 | $(1,992) | $2,554,968 |
| December 31, 2022 | 1,626,373 | 530,733 | 247,791 | (258) | 2,404,639 |
| December 31, 2021 | 1,525,163 | 485,345 | 252,534 | (267) | 2,262,775 |
| Capital Expenditures: | |||||
| Year ended Dec. 31, 2023 | $180,743 | $36,402 | $4,926 | $— | $222,071 |
| Year ended Dec. 31, 2022 | 141,273 | 27,656 | 6,101 | — | 175,030 |
| Year ended Dec. 31, 2021 | 115,234 | 34,071 | 3,864 | — | 153,169 |
(a)
The Transmission Investment segment represents MGE Energy's investment in equity method investees.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.