Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Taxes

Taxes - MGE Energy and MGE.

Effective Tax Rate.

The consolidated income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before income taxes, as follows:

	MGE Energy				MGE
Three Months Ended March 31,	2020		2019		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	6.3		6.3		6.3		6.2
Amortized investment tax credits	(0.1)		(0.1)		(0.1)		(0.1)
Credit for electricity from wind energy	(6.9)		(5.9)		(7.5)		(6.5)
AFUDC equity, net	(1.6)		(0.2)		(1.7)		(0.2)
Amortization of utility excess deferred tax - tax reform(a)	(2.6)		(2.4)		(2.8)		(2.6)
Other, net, individually insignificant	-		0.5		(0.1)		0.5
Effective income tax rate	16.1	%	19.2	%	15.1	%	18.3	%

(a)Included are impacts of the Tax Cuts and Jobs Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting. For the three months ended March 31, 2020 and 2019, MGE recognized $0.7 million and $0.6 million, respectively. The amount and timing of the cash impacts will depend on the period over which certain income tax benefits are provided to customers, which will be determined by the PSCW.