Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value of Financial Instruments (Tables) [Abstract]

Estimated Fair Market Value of Financial Instruments

		September 30, 2011				December 31, 2010
		Carrying		Fair		Carrying		Fair
(In thousands)		Amount		Value		Amount		Value
MGE Energy
Assets:
Cash and cash equivalents	$	44,893	$	44,893	$	7,110	$	7,110
Liabilities:
Short-term debt - bank loans		0		0		19,000		19,000
Short-term debt - commercial paper		0		0		3,500		3,500
Long-term debt*		365,139		412,108		336,973		356,395

MGE
Assets:
Cash and cash equivalents		26,497		26,497		4,494		4,494
Liabilities:
Short-term debt - commercial paper		0		0		3,500		3,500
Long-term debt*		365,139		412,108		336,973		356,395

*Includes long-term debt due within one year.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

	Fair Value as of September 30, 2011
(In thousands)		Total		Level 1		Level 2		Level 3
MGE Energy
Assets:
Exchange-traded investments	$	386	$	386	$	0	$	0
Total Assets	$	386	$	386	$	0	$	0
Liabilities:
Derivatives, net^(a)	$	26,583	$	673	$	0	$	25,910
Deferred compensation		1,660		1,660		0		0
Total Liabilities	$	28,243	$	2,333	$	0	$	25,910

MGE
Assets:
Exchange-traded investments	$	170	$	170	$	0	$	0
Total Assets	$	170	$	170	$	0	$	0
Liabilities:
Derivatives, net^(a)	$	26,583	$	673	$	0	$	25,910
Deferred compensation		1,660		1,660		0		0
Total Liabilities	$	28,243	$	2,333	$	0	$	25,910

(a) These amounts are shown gross and exclude $0.4 million of collateral that was posted
against derivative positions with counterparties.

	Fair Value as of December 31, 2010
(In thousands)		Total		Level 1		Level 2		Level 3
MGE Energy
Assets:
Exchange-traded investments	$	430	$	430	$	0	$	0
Total Assets	$	430	$	430	$	0	$	0
Liabilities:
Derivatives, net^(b)	$	19,230	$	14	$	0	$	19,216
Deferred compensation		1,525		1,525		0		0
Total Liabilities	$	20,755	$	1,539	$	0	$	19,216

MGE
Assets:
Exchange-traded investments	$	260	$	260	$	0	$	0
Total Assets	$	260	$	260	$	0	$	0
Liabilities:
Derivatives, net^(b)	$	19,230	$	14	$	0	$	19,216
Deferred compensation		1,525		1,525		0		0
Total Liabilities	$	20,755	$	1,539	$	0	$	19,216

(b) These amounts are shown gross and exclude $0.5 million of collateral that was posted
against derivative positions with counterparties.

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,
		2011		2010		2011		2010
Beginning balance,	$	(22,983)	$	(17,604)	$	(19,216)	$	(13,047)
Realized and unrealized gains (losses):
Included in regulatory liabilities (assets)		(2,927)		(1,594)		(6,694)		(6,151)
Included in other comprehensive income		0		0		0		0
Included in earnings		182		(306)		815		(1,409)
Included in current assets		(7)		0		(66)		0
Purchases		178		0		342		0
Sales		0		122		0		223
Issuances		0		0		0		0
Settlements		(353)		184		(1,091)		1,186
Transfers in and/or out of Level 3		0		0		0		0
Balance as of September 30,	$	(25,910)	$	(19,198)	$	(25,910)	$	(19,198)
Total gains (losses) included in earnings attributed to
the change in unrealized gains (losses) related to
assets and liabilities held at September 30,^(c)	$	0	$	0	$	0	$	0

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,
		2011		2010		2011		2010
Purchased Power Expense	$	182	$	(311)	$	815	$	(1,389)
Cost of Gas Sold Expense		0		5		0		(20)
Regulated Gas Revenues		0		0		0		0
Total	$	182	$	(306)	$	815	$	(1,409)

- Definition

Tabular disclosure of the total amount of gains or losses for the period which are included in earnings or resulted in a change to net assets which gains or losses have arisen from the use of significant unobservable inputs (Level 3) to measure the fair value of assets and liabilities. Such gains or losses are attributable to the change in unrealized gains or losses relating to those assets and liabilities so valued which are still held at the reporting date and which change are also considered for disclosure; it may be expected that a description of where those unrealized gains or losses are reported in the statement of income or the statement of financial position would also be disclosed.

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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