XML 59 R37.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Parent Company Financial Statements
 12 Months Ended
Dec. 31, 2015
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,
201520142013
Operating Expenses:
Other operations and maintenance$690$689$613
Total Operating Expenses690689613
Operating Loss(690)(689)(613)
Equity in earnings of investments71,30681,81176,362
Other income/(loss), net526(1,879)(1,863)
Other interest1369355
Income before income taxes71,27879,33673,941
Income tax provision65983964
Net Income71,34380,31974,905
Other Comprehensive Income, Net of Tax:
Unrealized (loss) gain on available-for-sale securities, net of
tax ($67, ($54), and ($189))(101)81283
Comprehensive Income$71,242$80,400$75,188
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,
201520142013
Net Cash Flows Provided by Operating Activities$37,085$48,165$53,952
Investing Activities:
Other investing(3,690)(2,422)(2,425)
Cash Used for Investing Activities(3,690)(2,422)(2,425)
Financing Activities:
Cash dividends paid on common stock(40,043)(38,429)(37,107)
Other financing-(89)(97)
Cash Used for Financing Activities(40,043)(38,518)(37,204)
Change in cash and cash equivalents:(6,648)7,22514,323
Cash and cash equivalents at beginning of period58,42951,20436,881
Cash and cash equivalents at end of period$51,781$58,429$51,204
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,
ASSETS20152014
Current Assets:
Cash and cash equivalents$51,781$58,429
Accounts receivable, net:
Accounts receivable from affiliates2064
Other current assets1,3862,809
Total Current Assets53,18761,302
Other deferred assets and other249140
Investments:
Investments in affiliates649,276619,563
Other investments1,4471,177
Total Investments650,723620,740
Total Assets$704,159$682,182
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable to affiliates$530$7,096
Accrued taxes263663
Other current liabilities1442,601
Total Current Liabilities93710,360
Other Credits:
Deferred income taxes7,9987,125
Accounts payable to affiliates4,7665,296
Total Other Credits12,76412,421
Shareholders' Equity:
Common shareholders' equity350,936350,936
Retained income339,165308,007
Other comprehensive income357458
Total Shareholders' Equity690,458659,401
Commitments and contingencies (see Footnote 3)--
Total Liabilities and Shareholders' Equity$704,159$682,182
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, 2015.

2. Credit Agreements.

As of December 31, 2015, MGE Energy had access to an unsecured, committed credit facility with aggregate bank commitments of $50.0 million. At December 31, 2015, 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)201520142013
MGE$30,000$26,500$25,000
MGE Power Elm Road10,00013,50017,300
MGE Power West Campus3,0006,0009,250
MGE Transco1,7081,859816
Total$44,708$47,859$52,366

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, above the PSCW authorized amount of $43 million, 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, 2015 is 59.7% as determined under the calculation used in the rate proceeding. MGE paid cash dividends of $30.0 million to MGE Energy in 2015. 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, 2015, approximately $353.0 million was available for the payment of dividends under this covenant.

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