MADISON GAS & ELECTRIC CO
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
MGEE$80.26+2.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0000950170-25-103668
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsOther MattersCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001193125-25-266253
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital ResourcesOther MattersThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 198 previous paragraphs and 224 current paragraphs.
128 unchanged; 47 reworded; 44 added; 23 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 21 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (44)
Current report
Earnings for the three and nine months ended September 30, 2025, increased year-over-year, primarily driven by a rise in the rate base due to increased electric investments approved in the 2025 rate case. Additionally, higher electric residential sales for both periods contributed to the increase, partially due to growth in residential customers. For the nine-month period, favorable weather conditions further contributed to increased residential sales.
Current report
All Other
Current report
Investment gains from venture capital funds resulted in higher earnings for the nine months ended September 30, 2025, compared to the same period in the prior year. These venture capital investments support early-stage companies working to advance smart technologies, the customer experience, distributed energy resources, electrification, cybersecurity and other priorities for utility companies, such as greater sustainability.
Current report
2026/2027 Rate Settlement: In September 2025, MGE filed with the PSCW a proposed 2026/2027 rate settlement. MGE has proposed a 0.04% increase for electric rates and a 2.77% increase to gas rates for 2026. The settlement also proposes a 3.76% increase for electric rates and a 2.04% increase to gas rates for 2027. A final order is expected before the end of 2025. See "Other Matters" below for additional information on the 2026/2027 rate settlement.
Current report
Future Generation – MGE continues to work toward its goal of net-zero carbon electricity by 2050. Solar, wind, and battery storage projects are a major step toward deep decarbonization and greater use of clean energy sources in pursuit of our goal.
Current report
Columbia: Operational, regulatory, and environmental regulation considerations have impacted and continue to impact Columbia's generation planning. MGE, as a minority owner, and Columbia's other co-owners continue to evaluate transitioning away from coal and continue to evaluate replacing the generation from Columbia while maintaining electric service reliability. MGE and Columbia's co-owners are exploring converting Columbia to natural gas.
Current report
Electric revenue increased $7.5 million during the three months ended September 30, 2025, compared to the same period in the prior year, due to the following:
Current report
Gas revenue decreased $0.3 million during the three months ended September 30, 2025, compared to the same period in the prior year, due to the following:
Current report
All Other Operations - MGE Energy
Current report
Other income
Current report
The increase of $3.2 million in other income from all other operations during the three months ended September 30, 2025, primarily reflects results from investment gains recognized in the current year, from venture capital funds. These venture capital investments support early-stage companies working to advance smart technologies, the customer experience, distributed energy resources, electrification, cybersecurity and other priorities for utility companies, such as greater sustainability.
Current report
Nine Months Ended September 30, 2025 and 2024
Current report
Electric revenue increased $25.7 million during the nine months ended September 30, 2025, compared to the same period in the prior year, due to the following:
Current report
Commercial, industrial, and other-retail/municipal volume. During the nine months ended September 30, 2025, there was an approximately 1% increase in commercial sales compared to the same period in the prior year. This increase was driven by more favorable weather conditions and increased use per customer in the current year.
Current report
Gas revenue increased $22.8 million during the nine months ended September 30, 2025, compared to the same period in the prior year, due to the following:
Current report
Increased electric production expenses are primarily related to operating and maintenance costs for the Elm Road Units and renewable generating facilities.
Current report
Electric Distribution costs decreased, primarily reflecting the non-recurrence of storm response costs incurred in May 2024.
Current report
All Other Operations - MGE Energy
Current report
Other income
Current report
The increase of $3.0 million in other income from all other operations during the nine months ended September 30, 2025, primarily reflects results from investment gains recognized in the current year, from venture capital funds. These venture capital investments support early-stage companies working to advance smart technologies, the customer experience, distributed energy resources, electrification, cybersecurity and other priorities for utility companies, such as greater sustainability.
Current report
Long-term Debt – MGE Energy and MGE
Current report
In October 2025, MGE entered into a private placement Note Purchase Agreement in which it committed to issue $50 million of senior unsecured notes. See Footnote 6.c. of Notes to Consolidated Financial Statements in this Report for further information on the senior note issuance.
Current report
The principal increases (decreases) in cash flows from investing activities during the nine months ended September 30, 2025, compared to the same period in 2024, were as follows:
Current report
The following table shows MGE Energy's forecasted capital expenditures for 2025 through 2030:
Current report
Includes actual capital expenditures already incurred in 2025 and estimated capital expenditures for the remainder of the year.
Current report
Forecasted capital expenditures are based upon management's assumptions with respect to future events, including the timing and amount of expenditures associated with environmental compliance initiatives, legislative and regulatory action, supply chain and market disruptions, customer demand and support for electrification and renewable energy resources, energy conservation programs, load growth, the timing of any required regulatory approvals, and the adequacy of rate recovery. Actual events may differ materially from these assumptions and result in material changes to those forecasted amounts.
Current report
MGE is targeting net-zero carbon electricity by 2050. Solar, wind, and battery storage projects are a major step toward deep decarbonization and greater use of clean energy sources in pursuit of our goal. In addition, natural gas generation projects help enable MGE's clean energy transition and ensure reliability for customers as the energy supply is decarbonized.
Current report
Our forecasted capital expenditures reflect the following significant renewable and storage projects that are currently under construction or pending regulatory approval:
Current report
See Footnote 12 of Notes to Consolidated Financial Statements in the Report for information on costs incurred.
Current report
The project was awarded with a grant from the U.S. Department of Energy Office of Clean Energy Demonstrations. The grant will reduce the total estimated project expenses. MGE holds a 19% ownership interest in this project and the cost, after grant, is expected to be approximately $12 million.
Current report
MGE continues to assess the potential impact of procurement disruptions on current and future solar projects that may result in an increase in costs or delays in construction timelines. In the event that such disruptions cause costs to exceed the levels approved for specific projects, we have filed, and expect to continue to file, notifications with the PSCW and expect to request recovery of any increases in MGE's future rate proceedings. See further information on procurement disruptions discussed under "Other Matters" section below.
Current report
Elm Road Gas Fuel Flexibility Project: In October 2025, MGE and other co-owners filed a joint application with the PSCW for upgrades to the Elm Road Units. The project would convert existing coal-fired boilers to natural gas. MGE holds an 8.33% ownership interest in the facility. MGE's estimated cost is approximately $11 million. If approved, the project is expected to be placed in service in 2028.
Current report
Other local solar and battery storage projects: In 2025 through 2028, electric renewable capital expenditures include local investments in solar generation and battery storage. Forecasted total capital expenditures for those years is approximately $90 million.
Current report
Electric and Gas Distribution: In 2025 through 2030, electric and gas capital expenditures include investment in enhanced metering solutions to provide customers with more timely and detailed energy use information. Investments in advanced metering infrastructure will provide additional benefits including outage and demand response and automated meter reading capabilities. Forecasted total capital expenditures for those years is approximately $62 million.
Showing the first 40 of 44 passages. Open the source sections for the rest.
Removed paragraphs (23)
Previous report
An increase in electric investments, as part of the 2025 rate case, contributed to an increase in earnings for the three and six months ended June 30, 2025, as compared to the same periods in the prior year. Favorable weather contributed to higher electric residential sales for the three and six months ended June 30, 2025, compared to the same periods in the prior year.
Previous report
Excluding AFUDC.
Previous report
Pending approval by the PSCW.
Previous report
Future Generation – 80% carbon reduction target by 2030 (from 2005 levels): MGE has outlined initiatives to achieve our target.
Previous report
Transitioning away from coal. Columbia: MGE, along with the other plant co-owners, announced plans to retire Columbia Unit 1 and Unit 2 by the end of 2029. Final timing and retirement dates for Units 1 and 2 are subject to change depending on operational and regulatory considerations, capacity needs, and other factors impacting one or more of the Columbia co-owners. MGE has a plan, which it continues to evaluate, to replace the generation from Columbia while maintaining electric service reliability. In December 2024, MGE and Columbia's co-owners announced plans to explore converting at least one unit of Columbia to natural gas before the end of 2029.
Previous report
Financing and Equity Issuance Plans: MGE Energy annually evaluates its financing plan, dividend practices, and credit line sizing, focusing on its credit rating while meeting cash needs to fund capital requirements, including construction expenditures, retire debt, pay dividends, and operating expenses. As of June 30, 2025, MGE had $280 million of remaining regulatory authority from the PSCW to issue long-term debt to finance authorized utility capital expenditures. During the beginning of 2025, MGE Energy issued new shares of common stock to participants in its Direct Stock Purchase and Dividend Reinvestment Plan. As of May 2025, MGE Energy began purchasing shares in the open market for participants in the Direct Stock Purchase and Dividend Reinvestment Plan.
Previous report
Electric revenue increased $8.9 million during the three months ended June 30, 2025, compared to the same period in the prior year, due to the following:
Previous report
Gas revenue increased $4.8 million during the three months ended June 30, 2025, compared to the same period in the prior year, due to the following:
Previous report
Six Months Ended June 30, 2025 and 2024
Previous report
Electric revenue increased $18.3 million during the six months ended June 30, 2025, compared to the same period in the prior year, due to the following:
Previous report
Volume. During the six months ended June 30, 2025, residential sales increased by approximately 6% compared to the same period in the prior year. This increase was driven by differences in the weather experienced during the six months ended June 30, 2025, compared to the same period in the prior year. Temperatures, on average, were warmer than normal in the first half of 2025.
Previous report
Gas revenue increased $23.1 million during the six months ended June 30, 2025, compared to the same period in the prior year, due to the following:
Previous report
MGE Energy
Previous report
MGE Energy's cash used for investing activities increased $4.7 million during the six months ended June 30, 2025, as compared to the same period in the prior year.
Previous report
Capital expenditures during the six months ended June 30, 2025, were $111.8 million. This amount represents an increase of $0.1 million from the expenditures made in the same period in the prior year.
Previous report
Capital contributions in ATC increased $2.7 million during the six months ended June 30, 2025, when compared to the same period in the prior year.
Previous report
MGE
Previous report
MGE's cash used for investing activities remained flat during the six months ended June 30, 2025, when compared to the same period in the prior year.
Previous report
Capital expenditures during the six months ended June 30, 2025, were $111.8 million. This amount represents an increase of $0.1 million from the expenditures made in the same period in the prior year.
Previous report
MGE Energy's and MGE's liquidity are primarily affected by their capital expenditure requirements. During the three months ended June 30, 2025, capital expenditures for MGE Energy and MGE totaled $111.8 million, which included $106.0 million of utility capital expenditures. Utility capital expenditures include investments in renewable generation and battery storage facilities, such as the Koshkonong and High Noon projects.
Previous report
MGE does not currently expect any material changes to its total forecasted expenditures as presented in the 2025 through 2029 capital expenditure forecast included under Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources in the 2024 Annual Report on Form 10-K. MGE's plan to achieve its target of 80% carbon reduction by 2030 (from 2005 levels) is based on the transition away from coal, addition of new renewable generation, and additional generation sources that provide the reliable energy to serve demand dependably. The mix of generation sources presented in the 2025 through 2029 capital expenditure forecast may shift based on reliability needs as MGE continues on the path to achieve its carbon reduction goals. Additionally, MGE is monitoring a range of regulatory and trade policy developments that may affect solar project timelines and costs, including import regulations under the Uyghur Forced Labor Prevention Act, solar tariffs administered by the U.S. Department of Commerce, tariffs issued through executive orders, and potential impacts related to the OBBBA. These disruptions have impacted and may continue to impact current and future solar projects by increasing costs or causing delays in construction timelines. As projects are delayed, timing of capital expenditures will be correspondingly shifted. See "Other Matters" below for additional information on the solar procurement disruptions.
Reworded paragraphs (47)
Previous wording
During the three months ended June 30, 2025, MGE Energy's earnings were $26.5 million, or $0.73 per share, compared to $23.8 million, or $0.66 per share, during the same period in the prior year. MGE's earnings during the three months ended June 30, 2025, were $18.8 million compared to $16.0 million during the same period in the prior year.
Current wording
During the three months ended September 30, 2025, MGE Energy's earnings were $44.5 million, or $1.22 per share, compared to $40.9 million, or $1.13 per share, during the same period in the prior year. MGE's earnings during the three months ended September 30, 2025, were $34.1 million compared to $33.3 million during the same period in the prior year.
Previous wording
During the six months ended June 30, 2025, MGE Energy's earnings were $68.1 million, or $1.86 per share, compared to $57.6 million, or $1.59 per share, during the same period in the prior year. MGE's earnings during the six months ended June 30, 2025, were $53.0 million compared to $42.6 million during the same period in the prior year.
Current wording
During the nine months ended September 30, 2025, MGE Energy's earnings were $112.6 million, or $3.08 per share, compared to $98.5 million, or $2.72 per share, during the same period in the prior year. MGE's earnings during the nine months ended September 30, 2025, were $87.1 million compared to $75.9 million during the same period in the prior year.
Previous wording
Our net income during the three and six months ended June 30, 2025, compared to the same periods in the prior year, primarily reflects the effects of the following factors:
Current wording
Our net income during the three and nine months ended September 30, 2025, compared to the same periods in the prior year, primarily reflects the effects of the following factors:
Previous wording
Higher gas retail sales in the first half of 2025 contributed to higher gas earnings for the six months ended June 30, 2025, compared to the same period in the prior year. Gas retail sales increased approximately 16%. Heating degree days (a measure for determining the impact of weather during the heating season) increased by approximately 18% in the first six months of 2025 compared to the same period in the prior year.
Current wording
Higher gas retail sales in the first half of 2025 contributed to higher gas earnings for the nine months ended September 30, 2025, compared to the same period in the prior year. Gas retail sales increased approximately 14% for the nine months ended September 30, 2025, compared to the prior year period. Heating degree days (a measure for determining the impact of weather during the heating season) increased by approximately 19% in the first nine months of 2025 compared to the same period in the prior year.
Previous wording
The following events affected the first six months of 2025:
Current wording
The following events affected the first nine months of 2025:
Previous wording
2025 Deferred Fuel Savings: MGE had deferred fuel savings through the six months ended June 30, 2025. As of June 30, 2025, MGE deferred $2.5 million of 2025 fuel savings. These costs will be subject to the PSCW's annual review of 2025 fuel costs, expected to be completed during 2026. See Footnote 9 of the Notes to the Consolidated Financial Statements in this Report for further information regarding fuel cost proceedings.
Current wording
2025 Deferred Fuel Savings: MGE had deferred fuel savings through the nine months ended September 30, 2025. As of September 30, 2025, MGE deferred $7.1 million of 2025 fuel savings. These costs will be subject to the PSCW's annual review of 2025 fuel costs, expected to be completed during 2026. See Footnote 9 of the Notes to the Consolidated Financial Statements in this Report for further information regarding fuel cost proceedings.
Previous wording
MGE received specific approval to recover 100% AFUDC. After tax, MGE recognized $5.3 million, $3.1 million, $0.8 million, and $0.1 million of AFUDC equity through June 30, 2025, on Paris, Darien, Koshkonong, and High Noon, respectively, during construction. AFUDC has been excluded from the costs incurred in the table above.
Current wording
MGE received specific approval to recover 100% AFUDC. After tax, MGE recognized $5.4 million, $3.1 million, $1.4 million, and $0.6 million of AFUDC equity through September 30, 2025, on Paris, Darien, Koshkonong, and High Noon, respectively, during construction. AFUDC has been excluded from the costs incurred in the table above.
Previous wording
Growing renewable generation and storage. MGE is seeking to acquire, or has acquired, joint interests in several renewable generation and storage projects. The forecasted capital expenditures include approximately 178 MW of solar, 18 MW of wind, and 118 MW of battery storage, which include projects approved or pending PSCW approval. See the 2025-2029 capital expenditures forecast disclosed in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Annual Report on Form 10-K.
Current wording
Growing renewable generation and storage. MGE is seeking to acquire, or has acquired, joint interests in several renewable generation and storage projects. The forecasted capital expenditures include approximately 289 MW of solar, 18 MW of wind, and 136 MW of storage, which include projects approved or pending PSCW approval. See the 2025-2030 capital expenditures forecast included under "Liquidity and Capital Resources" below for information on those projects.
Previous wording
Elm Road Units: MGE, along with the plant co-owners, announced plans to end the use of coal as a primary fuel at the Elm Road Units and transition the plant to natural gas. Transition plans and costs will be subject to PSCW approval. MGE's remaining use of coal is expected to be further reduced as the Elm Road Units transition to natural gas. By the end of 2030, coal is expected to be used only as a backup fuel at the Elm Road Units. This transition will help MGE meet its 2030 carbon reduction goals. By the end of 2032, MGE expects that the Elm Road Units will be fully transitioned away from coal, which will eliminate coal as an internal generation source for MGE.
Current wording
Transitioning away from coal. Elm Road Units: In October 2025, MGE, along with the plant co-owners, filed a joint application with the PSCW to end the use of coal as a primary fuel at the Elm Road Units and transition the plant to natural gas. See the 2025-2030 capital expenditures forecast included under "Liquidity and Capital Resources" below for additional information. By the end of 2030, coal is expected to be used only as a backup fuel at the Elm Road Units. By the end of 2032, MGE expects that the Elm Road Units will be fully transitioned away from coal.
Previous wording
Solar Procurement Disruptions: MGE is monitoring import regulations under the Uyghur Forced Labor Protection Act and the U.S. Department of Commerce's new solar tariffs. These disruptions have a potential to impact current and future solar projects which may result in an increase in costs or delays in construction timelines. In the event that such disruptions cause costs to exceed the levels approved for specific projects, we have filed, and expect to continue to file, notifications with the PSCW and expect to request recovery of any increases in MGE's future rate proceedings. See "Other Matters" below for additional information on the solar procurement disruptions.
Current wording
Solar Procurement Disruptions: MGE is monitoring import regulations under the Uyghur Forced Labor Prevention Act and the U.S. Department of Commerce's new solar tariffs. These disruptions have a potential to impact current and future solar projects which may result in an increase in costs or delays in construction timelines. In the event that such disruptions cause costs to exceed the levels approved for specific projects, we have filed, and expect to continue to file, notifications with the PSCW and expect to request recovery of any increases in MGE's future rate proceedings. See "Other Matters" below for additional information on the solar procurement disruptions.
Previous wording
Rate changes. In December 2023, the PSCW authorized MGE to increase 2025 rates for retail electric customers by approximately 2.63%. Rates charged to retail customers during the three months ended June 30, 2025, were $2.4 million higher than those charged during the same period in the prior year. See Footnote 9 of the Notes to Consolidated Financial Statements in this Report for further information on the rate increase. Any increase in rates associated with fuel or purchase power costs are generally offset by fuel and purchased power costs and do not have a significant impact on net income.
Current wording
Rate changes. In December 2023, the PSCW authorized MGE to increase 2025 rates for retail electric customers by approximately 2.63%. Rates charged to retail customers during the three months ended September 30, 2025, were $2.8 million higher than those charged during the same period in the prior year. See Footnote 9 of the Notes to Consolidated Financial Statements in this Report for further information on the rate increase. Any increase in rates associated with fuel or purchase power costs are generally offset by fuel and purchased power costs and do not have a significant impact on net income.
Previous wording
Customer fixed and demand charges. During the three months ended June 30, 2025, fixed and demand charges increased $1.4 million, primarily attributable to the increase in demand charges for commercial customers.
Current wording
Customer fixed and demand charges. During the three months ended September 30, 2025, fixed and demand charges increased $1.5 million, primarily attributable to the increase in demand charges for commercial customers.
Previous wording
The $5.1 million increase in fuel for electric generation was due to an approximately 22% increase in internal generation driven by an increase in sales and 19% increase in the average cost, each compared to the same period in the prior year.
Current wording
The $4.9 million increase in fuel for electric generation was due to an approximately 12% increase in internal generation driven by an increase in sales and 15% increase in the average cost, each compared to the same period in the prior year.
Previous wording
Excluding deferred fuel costs, purchased power decreased $1.2 million. The decrease in purchased power was due to an approximately 48% decrease in market purchases as a result of increased internal generation. This decrease was partially offset by an approximately 59% increase in average cost. Deferred fuel cost recovered during the three months ended June 30, 2024, was $2.1 million. There were no deferred fuel costs recovered during the three months ended June 30, 2025.
Current wording
Excluding deferred fuel costs, purchased power decreased $1.4 million. The decrease in purchased power was due to an approximately 38% decrease in market purchases as a result of increased internal generation. This decrease was partially offset by an approximately 22% increase in average cost. Deferred fuel cost recovered during the three months ended September 30, 2024, was $2.4 million. There were no deferred fuel costs recovered during the three months ended September 30, 2025.
Previous wording
MGE recovers the cost of natural gas in its gas segment through the purchased gas adjustment clause (PGA). Under the PGA, MGE is able to pass through to its gas customers the cost of gas. Changes in PGA recoveries affect revenues but do not change net income in view of the pass-through treatment of the costs. Payments for natural gas increased, driving higher rates during the six months ended June 30, 2025.
Current wording
MGE recovers the cost of natural gas in its gas segment through the purchased gas adjustment clause (PGA). Under the PGA, MGE is able to pass through to its gas customers the cost of gas. Changes in PGA recoveries affect revenues but do not change net income in view of the pass-through treatment of the costs.
Previous wording
The average retail rate per therm excluding customer fixed charges for the six months ended June 30, 2025, increased approximately 7% compared to the same period in the prior year, reflecting an increase in natural gas commodity costs (recovered through the PGA).
Current wording
The average retail rate per therm excluding customer fixed charges for the three months ended September 30, 2025, decreased approximately 3% compared to the same period in the prior year.
Previous wording
Cost of gas sold increased $5.0 million during the three months ended June 30, 2025, compared to the same period in the prior year. Cost per therm increased approximately 67% and therms delivered increased approximately 8%. MGE recovers the cost of natural gas in its gas segment through the PGA as described under gas deliveries and revenues above.
Current wording
Cost of gas sold increased $0.2 million during the three months ended September 30, 2025, compared to the same period in the prior year. MGE recovers the cost of natural gas in its gas segment through the PGA as described under gas deliveries and revenues above.
Previous wording
During the three months ended June 30, 2025, operations and maintenance expenses increased $1.1 million, compared to the same period in the prior year. The following contributed to the net change:
Current wording
During the three months ended September 30, 2025, operations and maintenance expenses increased $1.2 million, compared to the same period in the prior year. The following contributed to the net change:
Previous wording
Electric depreciation expense increased $1.2 million and gas depreciation expense increased $0.2 million during the three months ended June 30, 2025, compared to the same period in the prior year. Paris solar was placed in service in December 2024 and Darien solar was placed in service in March 2025. The timing of the in-service dates contributed to the increase in electric depreciation expense.
Current wording
Electric depreciation expense increased $1.5 million and gas depreciation expense increased $0.2 million during the three months ended September 30, 2025, compared to the same period in the prior year. Paris solar was placed in service in December 2024, Darien solar was placed in service in March 2025, and Paris battery was placed in service in June 2025. The timing of the in-service dates contributed to the increase in electric depreciation expense.
Previous wording
Electric other income increased $0.8 million and gas other income decreased $1.2 million during the three months ended June 30, 2025, compared to the same period in the prior year, primarily related to pension and other postretirement, excluding service costs. The PSCW has approved MGE to defer as a regulatory asset or liability, the difference between actual pension and other postretirement costs included in rates and to be recovered or refunded in a future rate proceeding. Pension and other postretirement cost is generally offset by electric and gas revenue and does not have a significant impact on net income.
Current wording
Electric other income increased $0.8 million and gas other income increased $0.5 million during the three months ended September 30, 2025, compared to the same period in the prior year, primarily related to pension and other postretirement costs, excluding service costs. The PSCW has approved MGE to defer as a regulatory asset or liability, the difference between actual pension and other postretirement costs included in rates and to be recovered or refunded in a future rate proceeding. Pension and other postretirement cost is generally offset by electric and gas revenue and does not have a significant impact on net income.
Previous wording
The nonregulated energy operations are conducted through MGE Energy's subsidiaries: MGE Power Elm Road (the Elm Road Units) and MGE Power West Campus (WCCF), which have been formed to own and lease electric generating capacity to assist MGE. During the three months ended June 30, 2025 and 2024, net income at the nonregulated energy operations segment was $6.2 million and $6.0 million, respectively.
Current wording
The nonregulated energy operations are conducted through MGE Energy's subsidiaries: MGE Power Elm Road (the Elm Road Units) and MGE Power West Campus (WCCF), which have been formed to own and lease electric generating capacity to assist MGE. During the three months ended September 30, 2025 and 2024, net income at the nonregulated energy operations segment was $6.3 million and $6.1 million, respectively.
Previous wording
The transmission investment segment holds our interest in ATC and ATC Holdco, and its income reflects our equity in the earnings of those investments. ATC Holdco was formed in December 2016 to pursue transmission development opportunities that typically have long development and investment lead times before becoming operational. During the three months ended June 30, 2025 and 2024, other income at the transmission investment segment primarily reflects ATC's operations and was $3.1 million and $2.8 million, respectively. See Footnote 3 of the Notes to Consolidated Financial Statements in this Report for summarized financial information regarding ATC.
Current wording
The transmission investment segment holds our interest in ATC and ATC Holdco, and its income reflects our equity in the earnings of those investments. ATC Holdco was formed in December 2016 to pursue transmission development opportunities that typically have long development and investment lead times before becoming operational. During the three months ended September 30, 2025 and 2024, other income at the transmission investment segment primarily reflects ATC's operations and was $3.3 million and $2.9 million, respectively. See Footnote 3 of the Notes to Consolidated Financial Statements in this Report for summarized financial information regarding ATC.
Previous wording
Sales to the market. Sales to the market typically occur when MGE has more generation in the MISO market than are needed for its customer demand. The excess electricity is then sold to other utilities or power marketers in the MISO market. During the six months ended June 30, 2025, market volumes increased compared to the same period in the prior year, reflecting an increase in sales. Additionally, the cost of capacity sold increased, contributing to the revenue generated from increased sales to the market from excess generation and purchases. The revenue generated from these sales is largely offset by fuel rules costs, and do not have a significant impact on net income. See fuel rules discussion in Footnote 9 of the Notes to Consolidated Financial Statements in this Report.
Current wording
Sales to the market. Sales to the market typically occur when MGE has more generation in the MISO market than are needed for its customer demand. The excess electricity is then sold to other utilities or power marketers in the MISO market. During the nine months ended September 30, 2025, market volumes increased compared to the same period in the prior year, reflecting an increase in sales. Additionally, the cost of capacity sold increased, contributing to the revenue generated from increased sales to the market from excess generation and purchases. The revenue generated from these sales is largely offset by fuel rules costs, and do not have a significant impact on net income. See fuel rules discussion in Footnote 9 of the Notes to Consolidated Financial Statements in this Report.
Previous wording
Rate changes. In December 2023, the PSCW authorized MGE to increase 2025 rates for retail electric customers by approximately 2.63%. Rates charged to retail customers during the six months ended June 30, 2025, were $4.8 million higher than those charged during the same period in the prior year. See Footnote 9 of the Notes to Consolidated Financial Statements in this Report for further information on the rate increase. Any increase in rates associated with fuel or purchase power costs are generally offset by fuel and purchased power costs and do not have a significant impact on net income.
Current wording
Rate changes. In December 2023, the PSCW authorized MGE to increase 2025 rates for retail electric customers by approximately 2.63%. Rates charged to retail customers during the nine months ended September 30, 2025, were $7.6 million higher than those charged during the same period in the prior year. See Footnote 9 of the Notes to Consolidated Financial Statements in this Report for further information on the rate increase. Any increase in rates associated with fuel or purchase power costs are generally offset by fuel and purchased power costs and do not have a significant impact on net income.
Previous wording
Volume. During the three months ended June 30, 2025, residential sales increased by approximately 5% compared to the same period in the prior year. This increase was driven by differences in the weather experienced during the three months ended June 30, 2025, compared to the same period in the prior year. Temperatures, on average, were warmer than normal in the second quarter of 2025.
Current wording
Residential Volume. During the nine months ended September 30, 2025, residential sales increased by approximately 5% compared to the same period in the prior year. This increase was driven by favorable weather conditions and an increase in customers during the nine months ended September 30, 2025, compared to the same period in the prior year.
Previous wording
Customer fixed and demand charges. During the six months ended June 30, 2025, fixed and demand charges increased $2.4 million, primarily attributable to the increase in demand charges for commercial customers.
Current wording
Customer fixed and demand charges. During the nine months ended September 30, 2025, fixed and demand charges increased $3.8 million, primarily attributable to the increase in demand charges for commercial customers.
Previous wording
The $10.0 million increase in fuel for electric generation in the first half of 2025 was due to an approximately 27% increase in internal generation driven by an increase in sales and 12% increase in the average cost, each compared to the same period in the prior year.
Current wording
The $14.9 million increase in fuel for electric generation in the first nine months of 2025 was due to an approximately 21% increase in internal generation driven by an increase in sales and 13% increase in the average cost, each compared to the same period in the prior year.
Previous wording
Excluding deferred fuel costs, purchased power decreased $4.3 million in the first half of 2025, compared to the same period in the prior year. The decrease in purchased power was due to an approximately 53% decrease in market purchases as a result of increased internal generation. This decrease was partially offset by an approximately 48% increase in average cost. Deferred fuel cost recovered during the six months ended June 30, 2024, was $4.1 million. There were no deferred fuel costs recovered during the six months ended June 30, 2025.
Current wording
Excluding deferred fuel costs, purchased power decreased $5.6 million in the first nine months of 2025, compared to the same period in the prior year. The decrease in purchased power was due to an approximately 48% decrease in market purchases as a result of increased internal generation. This decrease was partially offset by an approximately 38% increase in average cost. Deferred fuel cost recovered during the nine months ended September 30, 2024, was $6.5 million. There were no deferred fuel costs recovered during the nine months ended September 30, 2025.
Previous wording
MGE recovers the cost of natural gas in its gas segment through the purchased gas adjustment clause (PGA). Under the PGA, MGE is able to pass through to its gas customers the cost of gas. Changes in PGA recoveries affect revenues but do not change net income in view of the pass-through treatment of the costs. Payments for natural gas increased, driving higher rates during the three months ended June 30, 2025.
Current wording
MGE recovers the cost of natural gas in its gas segment through the purchased gas adjustment clause (PGA). Under the PGA, MGE is able to pass through to its gas customers the cost of gas. Changes in PGA recoveries affect revenues but do not change net income in view of the pass-through treatment of the costs. Payments for natural gas increased, driving higher rates during the nine months ended September 30, 2025.
Previous wording
The average retail rate per therm excluding customer fixed charges for the three months ended June 30, 2025, increased approximately 13% compared to the same period in the prior year, reflecting an increase in natural gas commodity costs (recovered through the PGA).
Current wording
The average retail rate per therm excluding customer fixed charges for the nine months ended September 30, 2025, increased approximately 5% compared to the same period in the prior year, reflecting an increase in natural gas commodity costs (recovered through the PGA).
Previous wording
Volume. For the six months ended June 30, 2025, retail gas deliveries increased approximately 16% compared to the same period in the prior year, primarily attributable to unfavorable weather conditions in the first half of 2024.
Current wording
Volume. For the nine months ended September 30, 2025, retail gas deliveries increased approximately 14% compared to the same period in the prior year, primarily attributable to unfavorable weather conditions in the first nine months of 2024.
Previous wording
Other. For the six months ended June 30, 2025, other gas revenues decreased primarily related to lower residential customer fixed charges. The PSCW approved a reduction in the customer fixed charge component of the residential gas rate in the 2025 rate proceeding.
Current wording
Other. For the nine months ended September 30, 2025, other gas revenues decreased primarily related to lower residential customer fixed charges. The PSCW approved a reduction in the customer fixed charge component of the residential gas rate in the 2025 rate proceeding.
Previous wording
Cost of gas sold increased $17.1 million during the six months ended June 30, 2025, compared to the same period in the prior year. Therms delivered increased approximately 16% and cost per therm increased approximately 17%. MGE recovers the cost of natural gas in its gas segment through the PGA as described under gas deliveries and revenues above.
Current wording
Cost of gas sold increased $17.3 million during the nine months ended September 30, 2025, compared to the same period in the prior year. Therms delivered increased approximately 14% and cost per therm increased approximately 17%. MGE recovers the cost of natural gas in its gas segment through the PGA as described under gas deliveries and revenues above.
Previous wording
During the six months ended June 30, 2025, operations and maintenance expenses increased $3.6 million, compared to the same period in the prior year. The following contributed to the net change:
Current wording
During the nine months ended September 30, 2025, operations and maintenance expenses increased $4.8 million, compared to the same period in the prior year. The following contributed to the net change:
Previous wording
Electric depreciation expense increased $2.1 million and gas depreciation expense increased $0.3 million during the six months ended June 30, 2025, compared to the same period in the prior year. Paris solar was placed in service in December 2024 and Darien solar was placed in service in March 2025. The timing of the in-service dates contributed to the increase in electric depreciation expense.
Current wording
Electric depreciation expense increased $3.5 million and gas depreciation expense increased $0.5 million during the nine months ended September 30, 2025, compared to the same period in the prior year. Paris solar was placed in service in December 2024, Darien solar was placed in service in March 2025, and Paris battery was placed in service in June 2025. The timing of the in-service dates contributed to the increase in electric depreciation expense.
Previous wording
Electric other income decreased $0.7 million and gas other income decreased $1.2 million during the six months ended June 30, 2025, compared to the same period in the prior year, primarily related to pension and other postretirement, excluding service costs. The PSCW has approved MGE to defer as a regulatory asset or liability, the difference between actual pension and other postretirement costs included in rates and to be recovered or refunded in a future rate proceeding. Pension and other postretirement cost is generally offset by electric and gas revenue and does not have a significant impact on net income.
Current wording
Electric other income increased $0.2 million and gas other income decreased $0.7 million during the nine months ended September 30, 2025, compared to the same period in the prior year, primarily related to pension and other postretirement costs, excluding service costs. The PSCW has approved MGE to defer as a regulatory asset or liability, the difference between actual pension and other postretirement costs included in rates and to be recovered or refunded in a future rate proceeding. Pension and other postretirement cost is generally offset by electric and gas revenue and does not have a significant impact on net income.
Previous wording
The nonregulated energy operations are conducted through MGE Energy's subsidiaries: MGE Power Elm Road (the Elm Road Units) and MGE Power West Campus (WCCF), which have been formed to own and lease electric generating capacity to assist MGE. During the six months ended June 30, 2025 and 2024, net income at the nonregulated energy operations segment was $12.2 million and $11.9 million, respectively.
Current wording
The nonregulated energy operations are conducted through MGE Energy's subsidiaries: MGE Power Elm Road (the Elm Road Units) and MGE Power West Campus (WCCF), which have been formed to own and lease electric generating capacity to assist MGE. During the nine months ended September 30, 2025 and 2024, net income at the nonregulated energy operations segment was $18.5 million and $18.0 million, respectively.
Previous wording
The transmission investment segment holds our interest in ATC and ATC Holdco, and its income reflects our equity in the earnings of those investments. ATC Holdco was formed in December 2016 to pursue transmission development opportunities that typically have long development and investment lead times before becoming operational. During the six months ended June 30, 2025 and 2024, other income at the transmission investment segment primarily reflects ATC's operations and was $6.2 million and $5.5 million, respectively. See Footnote 3 of the Notes to Consolidated Financial Statements in this Report for summarized financial information regarding ATC.
Current wording
The transmission investment segment holds our interest in ATC and ATC Holdco, and its income reflects our equity in the earnings of those investments. ATC Holdco was formed in December 2016 to pursue transmission development opportunities that typically have long development and investment lead times before becoming operational. During the nine months ended September 30, 2025 and 2024, other income at the transmission investment segment primarily reflects ATC's operations and was $9.6 million and $8.4 million, respectively. See Footnote 3 of the Notes to Consolidated Financial Statements in this Report for summarized financial information regarding ATC.
Previous wording
There were no material changes, other than from the normal course of business, to MGE Energy's and MGE's contractual obligations (representing cash obligations that are considered to be firm commitments) and commercial commitments (representing commitments triggered by future events) during the six months ended June 30, 2025, except as noted below. Further discussion of the contractual obligations and commercial commitments is included in Footnote 16 of the Notes to Consolidated Financial Statements and "Contractual Obligations and Commercial Commitments for MGE Energy and MGE" under Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations in the 2024 Annual Report on Form 10-K.
Current wording
There were no material changes, other than from the normal course of business, to MGE Energy's and MGE's contractual obligations (representing cash obligations that are considered to be firm commitments) and commercial commitments (representing commitments triggered by future events) during the nine months ended September 30, 2025, except as noted below. Further discussion of the contractual obligations and commercial commitments is included in Footnote 16 of the Notes to Consolidated Financial Statements and "Contractual Obligations and Commercial Commitments for MGE Energy and MGE" under Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations in the 2024 Annual Report on Form 10-K.
Previous wording
The following summarizes cash flows for MGE Energy and MGE during the six months ended June 30, 2025 and 2024:
Current wording
The following summarizes cash flows for MGE Energy and MGE during the nine months ended September 30, 2025 and 2024:
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Revenue subject to refund. For cost recovery mechanisms, any over-collection of revenues resulting from costs authorized to be collected from customers in rates exceeding actual costs is recorded as a reduction of revenue in the period incurred, as the over-collection is expected to be refunded to customers in a subsequent period. In the year the over-collection is refunded, rates are reduced and offset as revenue subject to refund. There is no net income impact in the year the costs are refunded.
Current report — wording carried from elsewhere
Revenue subject to refund. For cost recovery mechanisms, any over-collection of revenues resulting from costs authorized to be collected from customers in rates exceeding actual costs is recorded as a reduction of revenue in the period incurred, as the over-collection is expected to be refunded to customers in a subsequent period. In the year the over-collection is refunded, rates are reduced and offset as revenue subject to refund. There is no net income impact in the year the costs are refunded.
Current report — wording carried from elsewhere
MGE received PSCW approval to recover 100% AFUDC.
Current report — wording carried from elsewhere
Estimated costs are expected to exceed PSCW previously approved CA levels. Notifications are provided to the PSCW when costs increase above CA levels. MGE has and will continue to request recovery of the updates in its rate case proceedings.
Current report — wording carried from elsewhere
In August 2023, the U.S. Department of Commerce issued its final determination on a solar tariff investigation that began in 2022, finding that Chinese manufacturers were circumventing tariffs on solar panels by shipping them through four Southeast Asian countries. A 24-month exemption from tariffs for solar panel and module imports from these four countries was in effect from June