Pension and Other Postretirement Plans

3 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

Pension and Other Postretirement Plans

Pension and Other Postretirement Plans - MGE Energy and MGE.

MGE maintains qualified and nonqualified pension plans, health care, and life insurance benefits and defined contribution 401(k) benefit plans for its employees and retirees.

The components of net periodic benefit cost, other than the service cost component, are recorded in "Other income, net" on the consolidated statements of income. The service cost component is recorded in "Other operations and maintenance" on the consolidated statements of income. MGE has regulatory treatment

and recognizes regulatory assets or liabilities for timing differences between when net periodic benefit costs are recovered and when costs are recognized.

The following table presents the components of net periodic benefit costs recognized.

	Three Months Ended
	March 31,
(In thousands)	2024			2023
Pension Benefits
Components of net periodic benefit cost:
Service cost	$	759		$	752
Interest cost		4,244			4,322
Expected return on assets		(7,151	)		(6,322	)
Amortization of:
Actuarial loss		116			388
Net periodic benefit (credit) cost	$	(2,032	)	$	(860	)
Postretirement Benefits
Components of net periodic benefit cost:
Service cost	$	211		$	200
Interest cost		797			819
Expected return on assets		(691	)		(651	)
Amortization of:
Transition obligation		1			1
Prior service credit		(4	)		—
Actuarial (gain) loss		(77	)		(30	)
Net periodic benefit (credit) cost	$	237		$	339

As approved by the PSCW, MGE is allowed to defer differences between actual employee benefit plan costs and costs reflected in current rates. The deferred costs may be recovered or refunded in MGE's next rate filing. During the three months ended March 31, 2024, MGE recovered $1.4 million of pension and other postretirement costs previously deferred. During the three months ended March 31, 2023, MGE deferred $0.4 million of pension and other postretirement costs. These costs have not been reflected in the table above.