Pension and Other Postretirement Plans

9 Months Ended

Sep. 30, 2012

Pension and Other Postretirement Plans Disclosure [Abstract]

Pension and Other Postretirement Plans

6.       Pension and Other Postretirement Plans - MGE Energy and MGE.

MGE maintains qualified and nonqualified pension plans, health care, and life insurance benefits. Additionally, MGE has defined contribution 401(k) benefit plans.

The following table presents the components of MGE Energy's and MGE's net periodic benefit costs recognized for the three and nine months ended September 30, 2012 and 2011. A portion of the net periodic benefit cost is capitalized within the consolidated balance sheets.

		Three Months Ended				Nine Months Ended
(In thousands)		September 30,				September 30,
		2012		2011		2012		2011
Pension Benefits
Components of net periodic benefit cost:
Service cost	$	1,871	$	1,527	$	5,613	$	4,581
Interest cost		3,236		3,055		9,711		9,165
Expected return on assets		(3,917)		(3,502)		(11,756)		(10,507)
Amortization of:
Prior service cost		111		108		333		324
Actuarial loss		2,058		939		6,177		2,816
Net periodic benefit cost	$	3,359	$	2,127	$	10,078	$	6,379
Postretirement Benefits
Components of net periodic benefit cost:
Service cost	$	626	$	500	$	1,879	$	1,501
Interest cost		1,089		1,010		3,267		3,028
Expected return on assets		(421)		(407)		(1,263)		(1,221)
Amortization of:
Transition obligation		103		110		309		329
Prior service cost		27		28		81		85
Actuarial loss		601		114		1,802		342
Net periodic benefit cost	$	2,025	$	1,355	$	6,075	$	4,064

The PSCW allowed MGE to defer the 2009 incremental pension and OPRB costs above the amounts recovered in rates. During the three months endedSeptember 30,2012 and 2011, $0.3 million and $0.7 million, respectively, has been recovered in rates. During the nine months ended September 30, 2012 and 2011, $0.9 million and $2.0 million, respectively, has been recovered in rates. These costs are not reflected in the table above.