Common Equity

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

15.Common Equity.

a.Common Stock - MGE Energy and MGE.

MGE Energy sells shares of its common stock through its Direct Stock Purchase and Dividend Reinvestment Plan (the Stock Plan). Those shares may be newly issued shares or shares that are purchased in the open market by an independent agent for participants in the Stock Plan. Sales of newly issued shares under the Stock Plan are covered by a shelf registration statement that MGE Energy filed with the SEC. For the years ended December 31, 2022 and 2021, MGE Energy issued no new shares of common stock under the Stock Plan.

For the years ended December 31, 2022 and 2021, MGE Energy paid $57.5 million (or $1.59 per share) and $54.8 million (or $1.52 per share), respectively, in cash dividends on its common stock. Dividend payments by MGE to MGE Energy are subject to restrictions arising under a PSCW rate order and, to a lesser degree, MGE's first mortgage bonds. The PSCW order restricts any dividends, above the PSCW authorized amount that MGE may pay MGE Energy if MGE's common equity ratio, calculated in the manner used in the rate proceeding, is less than 55%. This restriction did not restrict MGE's payment of dividends in 2022. See Footnote 14 for further discussion of the mortgage indenture covenants regarding the payment of dividends. For the years ended December 31, 2022 and 2021, MGE paid $33.5 million and $5.0 million, respectively, in cash dividends to MGE Energy.

b.Dilutive Shares Calculation - MGE Energy.

As of December 31, 2022, 10,949 shares were included in the calculation of diluted earnings per share related to nonvested equity awards. See Footnote 12 for additional information on shared-based compensation awards.