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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Footnote 16.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.
As of December 31, 2023, the future minimum commitments related to these purchase contracts were as follows:
| (In thousands) | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter |
|---|---|---|---|---|---|---|
| Coal(a) | $24,017 | $14,445 | $2,884 | $— | $— | $— |
| Natural gas(b) | 42,527 | 25,733 | 15,028 | 2,165 | 2,165 | 9,830 |
| Purchase power(c) | 5,498 | 5,608 | 5,720 | 5,835 | 260 | — |
| Renewable energy(d) | 6,426 | 2,102 | 2,118 | 2,135 | 2,155 | 26,899 |
| Other | 7,571 | 3,330 | 4,230 | 619 | 131 | 668 |
| $86,039 | $51,218 | $29,980 | $10,754 | $4,711 | $37,397 |
(a)
Total coal commitments for MGE's share of 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'snatural 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 approved by FERC but may be subject to change. MGE's natural gas supply commitments include market-based pricing.
(c)
MGE has a purchase power agreement to help meet future electric supply requirements.
(d)
Operational commitments for solar and wind facilities.
d.
Other Commitments.
MGE Energy holds investments in nonpublic venture capital funds. From time to time, these entities require additional capital infusions from their investors. MGE Energy has committed to contribute $7.2 million in capital for such infusions. The timing of these infusions is dependent on the needs of the investee and is therefore uncertain at this time.
In addition, MGE Energy has athree-year agreement with a venture debt fund expiring in December 2025. MGE Energy has committed to invest up to a total of $1.5 million into this fund. As of December 31, 2023, MGE Energy has $0.9 million remaining in commitments. The timing of infusions is dependent on the needs of the fund and is therefore uncertain at this time.
MGE has several other commitments related to various projects. Payments for these commitments are expected to be as follows:
| (In thousands) | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter |
|---|---|---|---|---|---|---|
| Other commitments | $333 | $333 | $333 | $333 | $333 | $1,999 |
Asset Retirement Obliga
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