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Condensed Parent Company Financial Statements
 12 Months Ended
Dec. 31, 2018
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,
201820172016
Operating Expenses:
Other operations and maintenance$913$880$720
Total Operating Expenses913880720
Operating Loss(913)(880)(720)
Equity in earnings of investments85,22099,24675,581
Other (loss) income, net(1,966)(2,165)435
Interest income, net1,489605176
Income before income taxes83,83096,80675,472
Income tax provision38980088
Net Income84,21997,60675,560
Other Comprehensive Income, Net of Tax:
Unrealized gain (loss) on available-for-sale securities, net of
tax ($-, $(117), and $104)-175(155)
Comprehensive Income$84,219$97,781$75,405
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,
201820172016
Net Cash Flows Provided by Operating Activities$27,211$70,268$74,994
Investing Activities:
Contributions to affiliates(3,200)(6,522)(2,789)
Contributions to other investments(2,626)(4,534)(360)
Other873843385
Cash Used for Investing Activities(4,953)(10,213)(2,764)
Financing Activities:
Cash dividends paid on common stock(45,762)(43,682)(41,775)
Other-(58)(11)
Cash Used for Financing Activities(45,762)(43,740)(41,786)
Change in cash, cash equivalents, and restricted cash(23,504)16,31530,444
Cash, cash equivalents, and restricted cash at beginning of period98,54082,22551,781
Cash, cash equivalents, and restricted cash at end of period$75,036$98,540$82,225
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)
As of December 31,
ASSETS20182017
Current Assets:
Cash and cash equivalents$75,036$98,540
Other current assets3,6461,601
Total Current Assets78,682100,141
Other deferred assets and other110171
Investments:
Investments in affiliates763,625702,134
Other investments7,6725,640
Total Investments771,297707,774
Total Assets$850,089$808,086
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable to affiliates$617$665
Other current liabilities2,5002,047
Total Current Liabilities3,1172,712
Other Credits:
Deferred income taxes27,15123,480
Accounts payable to affiliates3,1773,707
Total Other Credits30,32827,187
Shareholders' Equity:
Common shareholders' equity350,936350,936
Retained earnings465,708426,874
Accumulated other comprehensive income, net of tax-377
Total Shareholders' Equity816,644778,187
Commitments and contingencies (see Footnote 3)
Total Liabilities and Shareholders' Equity$850,089$808,086
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, 2018.

2. Credit Agreements.

As of December 31, 2018, MGE Energy had access to an unsecured, committed credit facility with aggregate bank commitments of $50.0 million. As of December 31, 2018, no borrowings were outstanding under this facility.

See Footnote 11 of the Notes to Consolidated Financial Statements in this Report for further information regarding MGE Energy's credit agreements.

3. Commitments and Contingencies.

See Footnote 17 of the Notes to Consolidated Financial Statements in this Report for commitments and contingencies.

4. Dividends from Affiliates.

Dividends from Affiliates
(In thousands)201820172016
MGE(a)$-$45,000$50,000
MGE Power Elm Road15,50012,00013,500
MGE Power West Campus6,5006,0009,500
MGE Transco4,6254,6691,107
MGEE Transco60112-
NGV Fueling Services50--
Total$26,735$67,781$74,107

(a) Excludes $15.8 million dividend in kind to MGE Energy from MGE in 2016.

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 $70.8 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 as of December 31, 2018, is 56.3% as determined under the calculation used in the rate proceeding. MGE was not restricted from paying cash dividends in 2018. Cash dividends of $45.0 million were paid by MGE to MGE Energy in 2017. MGE paid no dividends to MGE Energy during 2018. 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, 2018, approximately $400.0 million was available for the payment of dividends under this covenant.

See Footnotes 10 and 11 of the Notes to Consolidated Financial Statements in this Report for long-term debt and lines of credit dividend restrictions.