Pension and Other Postretirement Plans

6 Months Ended

Jun. 30, 2013

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 six months ended June 30, 2013 and 2012. A portion of the net periodic benefit cost is capitalized within the consolidated balance sheets.

		Three Months Ended				Six Months Ended
		June 30,				June 30,
(In thousands)		2013		2012		2013		2012
Pension Benefits
Components of net periodic benefit cost:
Service cost	$	1,911	$	1,920	$	3,840	$	3,743
Interest cost		3,157		3,321		6,343		6,475
Expected return on assets		(4,733)		(4,021)		(9,509)		(7,839)
Amortization of:
Prior service cost		79		114		158		222
Actuarial loss		1,997		2,112		4,012		4,118
Net periodic benefit cost	$	2,411	$	3,446	$	4,844	$	6,719
Postretirement Benefits
Components of net periodic benefit cost:
Service cost	$	591	$	606	$	1,187	$	1,253
Interest cost		962		1,053		1,932		2,178
Expected return on assets		(540)		(407)		(1,084)		(842)
Amortization of:
Transition obligation		1		99		2		206
Prior service cost		27		26		55		54
Actuarial loss		309		581		620		1,201
Net periodic benefit cost	$	1,350	$	1,958	$	2,712	$	4,050

The PSCW allowed MGE to defer the 2009 incremental pension and OPRB costs above the amounts recovered in rates. During both the three months endedJune 30,2013 and 2012, $0.3 millionhas been recovered in rates. During both the six months ended June 30, 2013 and 2012, $0.6 million has been recovered in rates. These costs are not reflected in the table above.