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Pension Plans and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]  
Change in Benefit Obligations
        Other Postretirement  
 (In thousands) Pension Benefits  Benefits 
 Change in benefit obligations: 2013 2012  2013 2012 
 Net benefit obligation at beginning of year$315,505$283,668 $92,605$97,644 
 Service cost 7,705 7,139  2,380 2,528 
 Interest cost 12,656 12,704  3,871 4,431 
 Plan participants' contributions 0 0  665 718 
 Plan amendments(a) 0 (912)  (20,915) 0 
 Actuarial (gain) loss (40,335) 22,266  (9,687) (9,748) 
 Gross benefits paid (11,573) (9,360)  (2,998) (3,155) 
  Less: federal subsidy on benefits paid 0 0  179 187 
 Benefit obligation at end of year$283,958$315,505 $66,100$92,605 

  • In 2013, MGE capped the amount it pays each year toward retiree medical premiums at 175% of the 2013 employer contribution for qualified employees.

 
Assumptions to Determine Benefit Obligations
      Other Postretirement  
   Pension Benefits Benefits 
 Weighted-average assumptions used to       
 determine end of year benefit obligations: 20132012 20132012 
 Discount rate 4.88%4.09% 4.69%4.14% 
 Rate of compensation increase 3.90%4.60% N/AN/A 
Health Care Cost Trends

The following table shows assumed health care cost trend rates at December 31:

   20132012 
 Health care cost trend rate assumed for next year 7.0%7.5% 
 Rate to which the cost trend rate is assumed to     
 decline (the ultimate trend rate) 5.0%5.0% 
 Year that the rate reaches the ultimate trend rate 20182018 
Effect of 1% Increase or Decrease in Health Care Costs

The following table shows how an assumed 1% increase or 1% decrease in health care cost trends could impact postretirement benefits in 2013 dollars:

 (In thousands) 1% Increase  1% Decrease 
 Effect on other postretirement benefit obligation$1,286 $(1,840) 

A 1% change in the assumed health care cost trend rates would have had the following effect:

 (In thousands) 1% Increase  1% Decrease 
 Effect on total service and interest cost components$1,104 $(879) 
Change in Plan Assets
        Other Postretirement  
 (In thousands) Pension Benefits  Benefits 
 Change in plan assets: 2013 2012  2013 2012 
 Fair value of plan assets at beginning of year$212,277$173,311 $32,124$23,456 
 Actual return on plan assets 45,816 27,511  5,000 3,046 
 Employer contributions 30,878 20,815  2,811 8,059 
 Plan participants' contributions 0 0  665 718 
 Gross benefits paid (11,573) (9,360)  (2,998) (3,155) 
 Fair value of plan assets at end of year$277,398$212,277 $37,602$32,124 
Fair Value of Plan Assets by Asset Category

The asset allocation for MGE's pension plans at the end of 2013 and 2012, and the target allocation for 2014, by asset category, follows:

      Percentage of Plan
   Target  Assets at Year End
   Allocation  2013 2012
 Equity securities 63.0%  66.0% 64.0%
 Debt securities 30.0%  28.0% 29.0%
 Real estate 7.0%  6.0% 7.0%
 Total 100.0%  100.0% 100.0%

The fair value of MGE's plan assets, by asset category are as follows:

  Fair Value as of December 31, 2013 
 (In thousands) Total Level 1 Level 2 Level 3 
 Cash and Cash Equivalents$5,109$5,109$0$0 
 Equity Securities:         
  U.S. Large Cap 96,258 0 96,258 0 
  U.S. Mid Cap 22,741 0 22,741 0 
  U.S. Small Cap 28,854 0 28,854 0 
  International Blend 54,873 0 54,873 0 
 Fixed Income Securities:         
  Short-Term Fund 4,789 0 4,789 0 
  High Yield Bond 15,127 0 15,127 0 
  Long Duration Bond 66,193 0 66,193 0 
 Real Estate 19,628 0 0 19,628 
 Insurance Continuance Fund 1,428 0 0 1,428 
  Total$315,000$5,109$288,835$21,056 
           
  Fair Value as of December 31, 2012 
 (In thousands) Total Level 1 Level 2 Level 3 
 Cash and Cash Equivalents$5,627$5,627$0$0 
 Equity Securities:         
  U.S. Large Cap 68,671 0 68,671 0 
  U.S. Mid Cap 16,741 0 16,741 0 
  U.S. Small Cap 21,222 0 21,222 0 
  International Blend 44,200 0 44,200 0 
 Fixed Income Securities:         
  Short-Term Fund 4,231 0 4,231 0 
  High Yield Bond 11,587 0 11,587 0 
  Long Duration Bond 53,515 0 53,515 0 
 Real Estate 17,141 0 0 17,141 
 Insurance Continuance Fund 1,466 0 0 1,466 
  Total$244,401$5,627$220,167$18,607 
Change in Fair Value of Level 3 Plan Assets

The following table summarizes the changes in the fair value of the Level 3 plan assets.

   Level 3 Assets 
     Insurance 
     Continuance 
 (In thousands) Real Estate Fund 
 Balance as of January 1, 2012$15,565$906 
  Actual return on plan assets:     
  Relating to assets still held at the reporting date 682 33 
  Purchases, sales, and settlements 894 527 
  Transfers in and/or out of Level 3 0 0 
 Balance as of December 31, 2012$17,141$1,466 
  Actual return on plan assets:     
  Relating to assets still held at the reporting date 1,565 42 
  Purchases, sales, and settlements 922 (80) 
  Transfers in and/or out of Level 3 0 0 
 Balance as of December 31, 2013$19,628$1,428 
Funded Status

The funded status at the end of the year, and the related amounts recognized on the consolidated balance sheet are as follows:

        Other Postretirement  
 (In thousands) Pension Benefits  Benefits 
 Funded status, end of year 2013 2012  2013 2012 
 Fair value of plan assets$277,398$212,277 $37,602$32,124 
 Benefit obligations 283,958 315,505  66,100 92,605 
 Funded status$(6,560)$(103,228) $(28,498)$(60,481) 
Amounts Recognized in Regulatory Asset
      Other Postretirement 
 (In thousands) Pension Benefits  Benefits 
 Amounts recognized as regulatory asset 2013 2012  2013 2012 
 Net actuarial loss$37,499$112,637 $7,761$21,529 
 Prior service cost (209) 105  (20,495) 530 
 Transition obligation 0 0  35 38 
 Total$37,290$112,742 $(12,699)$22,097 
Scehdule of Projected Benefit Obligations in Excess of Plan Assets

The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets were as follows:

 (In thousands) Pension Benefits 
 Projected benefit obligation in excess of plan assets 2013 2012 
 Projected benefit obligation, end of year$21,631$315,505 
 Fair value of plan assets, end of year 0 212,277 
Schedule of Projected Benefit and Accumulated Benefit Obligations in Excess of Plan Assets

The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and an accumulated benefit obligation in excess of plan assets were as follows:

 (In thousands) Pension Benefits 
 Accumulated benefit obligation in excess of plan assets 2013 2012 
 Projected benefit obligation, end of year$21,631$315,505 
 Accumulated benefit obligation, end of year 19,795 272,462 
 Fair value of plan assets, end of year 0 212,277 
Benefit Payments, Fiscal Year Maturity

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:

 

   Pension Other Postretirement 
     Gross Expected Net 
   Pension Postretirement Medicare Part D Postretirement 
 (In thousands) Benefits Benefits Subsidy Benefits 
 2014$11,474 2,924 (191)$2,733 
 2015 12,223 3,056 (219) 2,837 
 2016 12,844 3,308 (246) 3,062 
 2017 13,633 3,740 (266) 3,474 
 2018 14,755 4,198 (289) 3,909 
 2019 - 2023 87,676 27,110 (1,866) 25,244 
Net Periodic Benefit Costs
 (In thousands) Pension Benefits Other Postretirement Benefits
 Components of net periodic benefit cost 2013 2012 2011 2013 2012 2011
 Service cost$7,705$7,139$6,013$2,380$2,528$1,920
 Interest cost 12,656 12,704 12,281 3,871 4,431 3,980
 Expected return on assets (19,027) (15,182) (14,034) (2,176) (1,741) (1,584)
 Special termination benefits 0 0 13 0 0 0
 Amortization of:            
  Transition obligation 0 0 0 3 425 427
  Prior service cost 314 430 433 110 110 110
  Actuarial loss 8,014 8,288 3,771 1,236 2,346 566
 Net periodic benefit cost$9,662$13,379$8,477$5,424$8,099$5,419
 Weighted-average assumptions used to             
 determine net periodic cost:            
 Discount rate 4.09% 4.50% 5.36% 4.14% 4.55% 5.42%
 Expected return on plan assets 8.10% 8.10% 8.25% 6.79% 7.26% 7.39%
 Rate of compensation increase 4.60% 4.59% 4.59% N/A N/A N/A