Fair Value of Financial Instruments (Tables)
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9 Months Ended |
Sep. 30, 2012
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Fair Value of Financial Instruments (Tables) [Abstract] |
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Estimated Fair Market Value of Financial Instruments |
| | | September 30, 2012 | | | December 31, 2011 | | | | | Carrying | | Fair | | | Carrying | | Fair | | | (In thousands) | | Amount | | Value | | Amount | | Value | | | MGE Energy | | | | | | | | | | | | Assets: | | | | | | | | | | | | Cash and cash equivalents | $ | 59,203 | $ | 59,203 | | $ | 41,169 | $ | 41,169 | | | Liabilities: | | | | | | | | | | | | Long-term debt* | | 362,473 | | 436,747 | | | 364,473 | | 432,515 | | | | | | | | | | | | | | | MGE | | | | | | | | | | | | Assets: | | | | | | | | | | | | Cash and cash equivalents | | 29,536 | | 29,536 | | | 13,898 | | 13,898 | | | Liabilities: | | | | | | | | | | | | Long-term debt* | | 362,473 | | 436,747 | | | 364,473 | | 432,515 | | | | | | | | | | | | | | | *Includes long-term debt due within one year. | | | | | | | | |
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Assets and Liabilities Measured at Fair Value on a Recurring Basis |
| | Fair Value as of September 30, 2012 | | | (In thousands) | | Total | | Level 1 | | Level 2 | | Level 3 | | | MGE Energy | | | | | | | | | | | Assets: | | | | | | | | | | | Exchange-traded investments | $ | 409 | $ | 409 | $ | 0 | $ | 0 | | | Total Assets | $ | 409 | $ | 409 | $ | 0 | $ | 0 | | | Liabilities: | | | | | | | | | | | Derivatives, net | $ | 75,257 | $ | (858) | $ | 0 | $ | 76,115 | | | Deferred compensation | | 1,922 | | 0 | | 1,922 | | 0 | | | Total Liabilities | $ | 77,179 | $ | (858) | $ | 1,922 | $ | 76,115 | | | | | | | | | | | | | | MGE | | | | | | | | | | | Assets: | | | | | | | | | | | Exchange-traded investments | $ | 138 | $ | 138 | $ | 0 | $ | 0 | | | Total Assets | $ | 138 | $ | 138 | $ | 0 | $ | 0 | | | Liabilities: | | | | | | | | | | | Derivatives, net | $ | 75,257 | $ | (858) | $ | 0 | $ | 76,115 | | | Deferred compensation | | 1,922 | | 0 | | 1,922 | | 0 | | | Total Liabilities | $ | 77,179 | $ | (858) | $ | 1,922 | $ | 76,115 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | No transfers were made in or out of Level 1 or Level 2 for the nine months ended September 30, 2012. | | | | | | | | | | | | | | | Fair Value as of December 31, 2011 | | | (In thousands) | | Total | | Level 1 | | Level 2 | | Level 3 | | | MGE Energy | | | | | | | | | | | Assets: | | | | | | | | | | | Exchange-traded investments | $ | 350 | $ | 350 | $ | 0 | $ | 0 | | | Total Assets | $ | 350 | $ | 350 | $ | 0 | $ | 0 | | | Liabilities: | | | | | | | | | | | Derivatives, net(a) | $ | 42,356 | $ | 1,695 | $ | 0 | $ | 40,661 | | | Deferred compensation(b) | | 1,725 | | 0 | | 1,725 | | 0 | | | Total Liabilities | $ | 44,081 | $ | 1,695 | $ | 1,725 | $ | 40,661 | | | | | | | | | | | | | | MGE | | | | | | | | | | | Assets: | | | | | | | | | | | Exchange-traded investments | $ | 188 | $ | 188 | $ | 0 | $ | 0 | | | Total Assets | $ | 188 | $ | 188 | $ | 0 | $ | 0 | | | Liabilities: | | | | | | | | | | | Derivatives, net(a) | $ | 42,356 | $ | 1,695 | $ | 0 | $ | 40,661 | | | Deferred compensation(b) | | 1,725 | | 0 | | 1,725 | | 0 | | | Total Liabilities | $ | 44,081 | $ | 1,695 | $ | 1,725 | $ | 40,661 | | | | | | | | | | | | | | (a) These amounts are shown gross and exclude $3.0 million of collateral that was posted | | | against derivative positions with counterparties. | | | | | | | | | | | | | | (b) The deferred compensation liability at December 31, 2011, was transferred from Level 1 | | | to Level 2. | |
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Significant Unobservable Inputs |
| Significant Unobservable Inputs | | Model Input | | | Basis adjustment | | | | | On peak | | 96.8% | | | Off peak | | 94.8% | | | Counterparty fuel mix: | | | | | Internal generation | | 49 % - 65 % | | | Purchased power | | 51 % - 35 % | |
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Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis |
| | Three Months Ended | | Nine Months Ended | (In thousands) | | September 30, | | September 30, | | | 2012 | | 2011 | | 2012 | | 2011 | Beginning balance, | $ | (79,580) | $ | (22,983) | $ | (40,661) | $ | (19,216) | Realized and unrealized gains (losses): | | | | | | | | | Included in regulatory liabilities (assets) | | 3,465 | | (2,927) | | (35,455) | | (6,694) | Included in other comprehensive income | | 0 | | 0 | | 0 | | 0 | Included in earnings | | (3,422) | | 182 | | (6,659) | | 815 | Included in current assets | | 0 | | (7) | | (77) | | (66) | Purchases | | 5,864 | | 178 | | 7,764 | | 342 | Sales | | 45 | | 0 | | 77 | | 0 | Issuances | | 0 | | 0 | | 0 | | 0 | Settlements | | (2,487) | | (353) | | (1,104) | | (1,091) | Transfers in and/or out of Level 3 | | 0 | | 0 | | 0 | | 0 | Balance as of September 30, | $ | (76,115) | $ | (25,910) | $ | (76,115) | $ | (25,910) | Total gains (losses) included in earnings attributed to | | | | | | | | | the change in unrealized gains (losses) related to | | | | | | | | | assets and liabilities held at September 30,(d) | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
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Gains and Losses Included in Income for Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis |
| | | Three Months Ended | | Nine Months Ended | | | (In thousands) | | September 30, | | September 30, | | | | | 2012 | | 2011 | | 2012 | | 2011 | | | Purchased Power Expense | $ | (3,422) | $ | 182 | $ | (6,659) | $ | 815 | | | Cost of Gas Sold Expense | | 0 | | 0 | | 0 | | 0 | | | Regulated Gas Revenues | | 0 | | 0 | | 0 | | 0 | | | Total | $ | (3,422) | $ | 182 | $ | (6,659) | $ | 815 | |
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