XML 134 R38.htm IDEA: XBRL DOCUMENT v2.4.1.9
Condensed Parent Company Financial Statements
 12 Months Ended
Dec. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Parent Company Financial Statements
Schedule I
Condensed Parent Company Financial Statements
MGE Energy, Inc.
Statements of Comprehensive Income
(Parent Company Only)
(In thousands)
For the years ended December 31,
201420132012
Operating Expenses:
Other operations and maintenance$689 $613 $649
Total Operating Expenses689 613 649
Operating Loss(689)(613)(649)
Equity in earnings of investments81,811 76,362 65,132
Other income/(loss), net(1,879)(1,863)(496)
Other interest93 55 45
Income before income taxes79,336 73,941 64,032
Income tax provision983 964 414
Net Income80,319 74,905 64,446
Other Comprehensive Income, Net of Tax:
Unrealized gain (loss) on available-for-sale securities, net of
tax (($54), ($189), and $12)81 283 (18)
Comprehensive Income$80,400 $75,188 $64,428
The accompanying notes are an integral part of the above consolidated financial statements.

MGE Energy, Inc.
Statements of Cash Flows
(Parent Company Only)
(In thousands)
For the years ended December 31,
201420132012
Net Cash Flows Provided by Operating Activities$48,165 $53,952 $49,819
Investing Activities:
Other investing(2,422)(2,425)(1,558)
Cash Provided by (Used for) Investing Activities(2,422)(2,425)(1,558)
Financing Activities:
Cash dividends paid on common stock(38,429)(37,107)(35,951)
Other financing(89)(97)(49)
Cash Used for Financing Activities(38,518)(37,204)(36,000)
Change in Cash and Cash Equivalents:7,225 14,323 12,261
Cash and cash equivalents at beginning of period51,204 36,881 24,620
Cash and cash equivalents at end of period$58,429 $51,204 $36,881
The accompanying notes are an integral part of the above consolidated financial statements.

Schedule I
Condensed Parent Company Financial Statements (continued)
MGE Energy, Inc.
Balance Sheets
(Parent Company Only)
(In thousands)
At December 31,
ASSETS20142013
Current Assets:
Cash and cash equivalents$58,429 $51,204
Accounts receivable, net:
Accounts receivable from affiliates64 125
Other current assets2,809 1,015
Total Current Assets61,302 52,344
Other deferred assets and other140 157
Investments:
Investments in affiliates619,563 583,435
Other investments1,177 948
Total Investments620,740 584,383
Total Assets$682,182 $636,884
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable to affiliates$7,096 $530
Accrued taxes663 4,297
Other current liabilities2,601 3,076
Total Current Liabilities10,360 7,903
Other Credits:
Deferred income taxes7,125 5,646
Accounts payable to affiliates5,296 5,825
Total Other Credits12,421 11,471
Shareholders' Equity:
Common shareholders' equity350,936 350,936
Retained income308,007 266,197
Other comprehensive income458 377
Total Shareholders' Equity659,401 617,510
Commitments and contingencies (see Footnote 3)--
Total Liabilities and Shareholders' Equity$682,182 $636,884
The accompanying notes are an integral part of the above consolidated financial statements.

Schedule I

Condensed Parent Company Financial Statements (continued)

Notes to Condensed Financial Statements

(Parent Company Only)

1. Basis of Presentation.

MGE Energy is a holding company and conducts substantially all of its business operations through its subsidiaries. For Parent Company only presentation, investment in subsidiaries are accounted for using the equity method. These condensed Parent Company financial statements and related notes have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X. These statements should be read in conjunction with the financial statements and the notes in Item 8. Financial Statements and Supplementary Data of the Annual Report on Form 10-K for the year ended December 31, 2014.

2. Credit Agreements.

As of December 31, 2014, MGE Energy had access to an unsecured, committed credit facility with aggregate bank commitments of $50.0 million. At December 31, 2014, no borrowings were outstanding under this facility.

See Footnote 10 of the Notes to Consolidated Financial Statements for further information regarding MGE Energy's credit agreements.

3. Commitments and Contingencies.

See Footnote 18 of the Notes to Consolidated Financial Statements for commitments and contingencies.

4. Dividends from Affiliates.

Dividends from Affiliates
(In thousands)201420132012
MGE$26,500 $25,000 $20,404
MGE Construct--239
MGE Power Elm Road13,500 17,300 16,000
MGE Power--200
MGE Power West Campus6,000 9,250 7,500
MGE Transco1,859 816 -
Total$47,859 $52,366 $44,343

Dividend Restrictions

Dividend payments by MGE to MGE Energy are subject to restrictions arising under a PSCW rate order and, to a lesser degree, MGE's first mortgage bonds. The PSCW order restricts any dividends that MGE may pay MGE Energy if its common equity ratio, calculated in the manner used in the rate proceeding, is less than 55%. MGE's thirteen month rolling average common equity ratio at December 31, 2014 is 56.9% as determined under the calculation used in the rate proceeding. MGE paid cash dividends of $26.5 million to MGE Energy in 2014. The rate proceeding calculation includes as indebtedness imputed amounts for MGE's outstanding purchase power capacity payments and other PSCW adjustments, but does not include the indebtedness associated with MGE Power Elm Road or MGE Power West Campus, which are consolidated into MGE's financial statements but are not direct obligations of MGE.

MGE has covenanted with the holders of its first mortgage bonds not to declare or pay any dividend or make any other distribution on or purchase any shares of its common stock unless, after giving effect thereto, the aggregate amount of all such dividends and distributions and all amounts applied to such purchases, after December 31, 1945, shall not exceed the earned surplus (retained earnings) accumulated subsequent to December 31, 1945. As of December 31, 2014, approximately $334.8 million was available for the payment of dividends under this covenant.

See Footnotes 9 and 10 of the Notes to Consolidated Financial Statement for long-term debt and lines of credit dividend restrictions.