Taxes (Tables)

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Effective Tax Rate Reconciliation

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 September 30,	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		6.2		6.2
Amortized investment tax credits	(0.1)		(0.1)		(0.1)		(0.1)
Credit for electricity from wind energy	(5.0)		(4.8)		(5.4)		(5.2)
AFUDC equity, net	(1.1)		(0.4)		(1.2)		(0.4)
Amortization of utility excess deferred tax - tax reform(a)	(2.0)		(1.9)		(2.2)		(2.1)
Other, net, individually insignificant	(0.4)		(0.5)		(0.4)		(0.5)
Effective income tax rate	18.7	%	19.6	%	17.9	%	18.9	%
	MGE Energy				MGE
Nine Months Ended September 30,	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		6.2		6.2
Amortized investment tax credits	(0.1)		(0.1)		(0.1)		(0.1)
Credit for electricity from wind energy	(6.1)		(5.6)		(6.6)		(6.1)
AFUDC equity, net	(1.3)		(0.3)		(1.4)		(0.3)
Amortization of utility excess deferred tax - tax reform(a)	(2.4)		(2.2)		(2.6)		(2.4)
Other, net, individually insignificant	(0.1)		0.1		-		0.1
Effective income tax rate	17.3	%	19.2	%	16.5	%	18.4	%

(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. During the three and nine months ended September 30, 2020, MGE recognized $0.7 million and $2.0 million, respectively, compared to $0.6 million and $1.7 million for the comparable periods in 2019. The amount and timing of the cash impacts will depend on the period over which certain income tax benefits are provided to customers, as determined by the PSCW.