Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value of Financial Instruments (Tables) [Abstract]

Estimated Fair Market Value of Financial Instruments

		March 31, 2013				December 31, 2012
		Carrying		Fair		Carrying		Fair
(In thousands)		Amount		Value		Amount		Value
MGE Energy
Assets:
Cash and cash equivalents	$	45,894	$	45,894	$	46,357	$	46,357
Liabilities:
Short-term debt - commercial paper		10,500		10,500		0		0
Long-term debt*		361,138		432,430		361,805		427,456
MGE
Assets:
Cash and cash equivalents		9,856		9,856		6,350		6,350
Liabilities:
Short-term debt - commercial paper		10,500		10,500		0		0
Long-term debt*		361,138		432,430		361,805		427,456
*Includes long-term debt due within one year.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

	Fair Value as of March 31, 2013
(In thousands)		Total		Level 1		Level 2		Level 3
MGE Energy
Assets:
Exchange-traded investments	$	428	$	428	$	0	$	0
Total Assets	$	428	$	428	$	0	$	0
Liabilities:
Derivatives, net(a)	$	69,197	$	(401)	$	0	$	69,598
Deferred compensation		2,085		0		2,085		0
Total Liabilities	$	71,282	$	(401)	$	2,085	$	69,598
MGE
Assets:
Exchange-traded investments	$	161	$	161	$	0	$	0
Total Assets	$	161	$	161	$	0	$	0
Liabilities:
Derivatives, net(a)	$	69,197	$	(401)	$	0	$	69,598
Deferred compensation		2,085		0		2,085		0
Total Liabilities	$	71,282	$	(401)	$	2,085	$	69,598
(a)     These amounts are shown gross and exclude $0.5 million of collateral that was posted
against derivative positions with counterparties.
	Fair Value as of December 31, 2012
(In thousands)		Total		Level 1		Level 2		Level 3
MGE Energy
Assets:
Exchange-traded investments	$	320	$	320	$	0	$	0
Total Assets	$	320	$	320	$	0	$	0
Liabilities:
Derivatives, net	$	72,329	$	(17)	$	0	$	72,346
Deferred compensation		2,010		0		2,010		0
Total Liabilities	$	74,339	$	(17)	$	2,010	$	72,346
MGE
Assets:
Exchange-traded investments	$	117	$	117	$	0	$	0
Total Assets	$	117	$	117	$	0	$	0
Liabilities:
Derivatives, net	$	72,329	$	(17)	$	0	$	72,346
Deferred compensation		2,010		0		2,010		0
Total Liabilities	$	74,339	$	(17)	$	2,010	$	72,346

Significant Unobservable Inputs

Significant Unobservable Inputs	Model Input
Basis adjustment:
On peak	97.1%
Off peak	96.0%
Counterparty fuel mix:
Internal generation	50 % - 70 %
Purchased power	50 % - 30 %

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis

		Three Months Ended
		March 31,
(In thousands)		2013		2012
Beginning balance,	$	(72,346)	$	(40,661)
Realized and unrealized gains (losses):
Included in regulatory liabilities (assets)		2,748		(30,527)
Included in other comprehensive income		0		0
Included in earnings		(1,148)		(1,502)
Included in current assets		0		(50)
Purchases		5,562		50
Sales		(3)		31
Issuances		0		0
Settlements		(4,411)		1,471
Transfers in and/or out of Level 3		0		0
Balance as of March 31,	$	(69,598)	$	(71,188)
Total gains (losses) included in earnings attributed to
the change in unrealized gains (losses) related to
assets and liabilities held at March 31,(b)	$	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
		March 31,
(In thousands)		2013		2012
Purchased Power Expense	$	(1,148)	$	(1,502)
Cost of Gas Sold Expense		0		0
Regulated Gas Revenues		0		0
Total	$	(1,148)	$	(1,502)