Pension and Other Postretirement Plans

9 Months Ended

Sep. 30, 2013

Compensation and Retirement 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, 2013 and 2012. A portion of the net periodic benefit cost is capitalized within the consolidated balance sheets.

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
(In thousands)		2013		2012		2013		2012
Pension Benefits
Components of net periodic benefit cost:
Service cost	$	1,924	$	1,871	$	5,764	$	5,613
Interest cost		3,178		3,236		9,521		9,711
Expected return on assets		(4,764)		(3,917)		(14,273)		(11,756)
Amortization of:
Prior service cost		79		111		237		333
Actuarial loss		2,011		2,058		6,023		6,177
Net periodic benefit cost	$	2,428	$	3,359	$	7,272	$	10,078
Postretirement Benefits
Components of net periodic benefit cost:
Service cost	$	594	$	626	$	1,781	$	1,879
Interest cost		966		1,089		2,898		3,267
Expected return on assets		(542)		(421)		(1,626)		(1,263)
Amortization of:
Transition obligation		0		103		2		309
Prior service cost		28		27		83		81
Actuarial loss		310		601		930		1,802
Net periodic benefit cost	$	1,356	$	2,025	$	4,068	$	6,075

The PSCW allowed MGE to defer the 2009 incremental pension and OPRB costs above the amounts recovered in rates. During both the three months endedSeptember 30,2013 and 2012, $0.3 millionhas been recovered in rates. During both the nine months ended September 30, 2013 and 2012, $0.9 million has been recovered in rates. These costs are not reflected in the table above.