Asset Retirement Obligations (Tables)

12 Months Ended

Dec. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

Change in Asset Retirement Obligations

The following table summarizes the change in AROs. Amounts include conditional AROs.

(In thousands)	2021			2020
Balance as of January 1,	$	31,196		$	28,355
Liabilities incurred(a)		8,589			3,503
Accretion expense		1,526			1,366
Liabilities settled		(354	)		(372	)
Revisions in estimated cash flows(b)		5,623			(1,656	)
Balance as of December 31,	$	46,580		$	31,196

(a)In 2021, MGE recorded an obligation of $4.9 million and $3.4 million, respectively, for the fair value of its legal liability for AROs associated with Badger Hollow I and other completed renewable projects. In 2020, MGE recorded an obligation of $3.2 million for the fair value of its legal liability for AROs associated with Two Creeks. See Footnote 6 for additional information on Badger Hollow I and Two Creeks.

(b)In 2021, MGE revised the AROs associated with certain Columbia assets.