Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information - MGE Energy and MGE.

The electric utility business purchases, generates and distributes electricity, and contracts for transmission service. The gas utility business purchases and distributes natural gas and contracts for the transportation of natural gas. Both the electric and gas segments operate through MGE Energy's principal subsidiary, MGE.

The nonregulated energy operations are conducted through MGE Energy's subsidiaries: MGE Power, MGE Power Elm Road, and MGE Power West Campus. These subsidiaries own electric generating capacity that they lease to MGE to assist MGE. MGE Power Elm Road has an ownership interest in two coal-fired generating units in Oak Creek, Wisconsin, which are leased to MGE, and MGE Power West Campus owns a controlling interest in the electric generation plant of a natural gas-fired cogeneration facility on the UW campus. MGE Power West Campus's portion is also leased to MGE.

The transmission investment segment invests in ATC, a company that provides electric transmission services primarily in Wisconsin, and ATC Holdco, a company formed to pursue electric transmission development and investments outside of Wisconsin. These investments are held in MGE Transco and MGEE Transco, respectively. See Footnote 7 for further discussion.

The "All Others" segment includes: corporate, CWDC, MAGAEL, MGE State Energy Services, MGE Services, NGV Fueling Services (dissolved in 2018), and North Mendota. These entities' operations consist of investing in companies and property which relate to the regulated operations, financing the regulated operations, or, in the case of NGV Fueling Services, owning and operating natural gas compression equipment.

General corporate expenses include the cost of executive management, corporate accounting and finance, information technology, risk management, human resources and legal functions, and employee benefits that are allocated to electric and gas segments based on formulas prescribed by the PSCW. Identifiable assets are those used in MGE's operations in each segment.

Sales between our electric and gas segments are based on PSCW approved tariffed rates. Additionally, intersegment operations related to the leasing arrangement between our electric segment and MGE Power Elm Road/MGE Power West Campus are based on terms previously approved by the PSCW. Consistent with internal reporting, management has presented the direct financing capital leases between MGE and MGE Power Elm Road/MGE Power West Campus based on actual lease payments included in rates. Lease payments made by MGE to MGE Power Elm Road and MGE Power West Campus are shown as operating expenses. The lease payments received by MGE Power Elm Road and MGE Power West Campus from MGE are shown as lease income in interdepartmental revenues. The depreciation expense associated with the Elm Road Units and WCCF is reflected in the nonregulated energy segment.

The following table shows segment information for MGE Energy's and MGE's operations:

(In thousands) MGE Energy		Electric		Gas		Non-Regulated Energy		Transmission Investment		All Others		Consolidation/ Elimination Entries		Consolidated Total
Year Ended December 31, 2020
Operating revenues	$	393,692	$	144,261	$	680	$	-	$	-	$	-	$	538,633
Interdepartmental revenues		765		12,157		40,402		-		-		(53,324)		-
Total operating revenues		394,457		156,418		41,082		-		-		(53,324)		538,633
Depreciation and amortization		(54,658)		(12,049)		(7,481)		-		-		-		(74,188)
Operating income (loss)		57,847		19,674		33,460		(1)		(983)		-		109,997
Interest (expense) income, net		(14,446)		(4,370)		(4,826)		-		121		-		(23,521)
Income tax (provision) benefit		(4,230)		(4,805)		(7,800)		(2,786)		198		-		(19,423)
Equity in earnings of investments		-		-		-		10,221		-		-		10,221
Net income (loss)		50,522		14,167		20,834		7,434		(539)		-		92,418
Year Ended December 31, 2019
Operating revenues	$	408,285	$	159,875	$	695	$	-	$	-	$	-	$	568,855
Interdepartmental revenues		806		16,070		40,020		-		-		(56,896)		-
Total operating revenues		409,091		175,945		40,715		-		-		(56,896)		568,855
Depreciation and amortization		(52,755)		(11,320)		(7,487)		-		-		-		(71,562)
Operating income (loss)		59,180		19,528		33,084		-		(882)		-		110,910
Interest (expense) income, net		(14,978)		(4,237)		(5,083)		-		1,235		-		(23,063)
Income tax (provision) benefit		(5,037)		(4,753)		(7,628)		(2,602)		236		-		(19,784)
Equity in earnings of investments		-		-		-		9,547		-		-		9,547
Net income (loss)		46,318		14,088		20,373		6,945		(850)		-		86,874
Year Ended December 31, 2018
Operating revenues	$	400,882	$	157,767	$	1,119	$	-	$	-	$	-	$	559,768
Interdepartmental revenues		(289)		16,076		39,526		-		-		(55,313)		-
Total operating revenues		400,593		173,843		40,645		-		-		(55,313)		559,768
Depreciation and amortization		(38,925)		(10,060)		(7,427)		-		-		-		(56,412)
Operating income (loss)		64,294		17,900		33,074		(16)		(1,045)		-		114,207
Interest (expense) income, net		(12,198)		(3,692)		(5,307)		-		1,588		-		(19,609)
Income tax (provision) benefit		(13,453)		(4,474)		(7,534)		(2,345)		372		-		(27,434)
Equity in earnings of investments		-		-		-		8,602		-		-		8,602
Net income (loss)		45,937		12,866		20,233		6,241		(1,058)		-		84,219

(In thousands) MGE		Electric		Gas		Non-Regulated Energy		Consolidation/ Elimination Entries		Consolidated Total
Year Ended December 31, 2020
Operating revenues	$	393,692	$	144,261	$	680	$	-	$	538,633
Interdepartmental revenues		765		12,157		40,402		(53,324)		-
Total operating revenues		394,457		156,418		41,082		(53,324)		538,633
Depreciation and amortization		(54,658)		(12,049)		(7,481)		-		(74,188)
Operating income		57,847		19,674		33,460		-		110,981
Interest expense, net		(14,446)		(4,370)		(4,826)		-		(23,642)
Income tax provision		(4,230)		(4,805)		(7,800)		-		(16,835)
Net income attributable to MGE		50,522		14,167		20,834		(22,393)		63,130
Year Ended December 31, 2019
Operating revenues	$	408,285	$	159,875	$	695	$	-	$	568,855
Interdepartmental revenues		806		16,070		40,020		(56,896)		-
Total operating revenues		409,091		175,945		40,715		(56,896)		568,855
Depreciation and amortization		(52,755)		(11,320)		(7,487)		-		(71,562)
Operating income		59,180		19,528		33,084		-		111,792
Interest expense, net		(14,978)		(4,237)		(5,083)		-		(24,298)
Income tax provision		(5,037)		(4,753)		(7,628)		-		(17,418)
Net income attributable to MGE		46,318		14,088		20,373		(22,349)		58,430
Year Ended December 31, 2018
Operating revenues	$	400,882	$	157,767	$	1,119	$	-	$	559,768
Interdepartmental revenues		(289)		16,076		39,526		(55,313)		-
Total operating revenues		400,593		173,843		40,645		(55,313)		559,768
Depreciation and amortization		(38,925)		(10,060)		(7,427)		-		(56,412)
Operating income		64,294		17,900		33,074		-		115,268
Interest expense, net		(12,198)		(3,692)		(5,307)		-		(21,197)
Income tax provision		(13,453)		(4,474)		(7,534)		-		(25,461)
Net income attributable to MGE		45,937		12,866		20,233		(22,552)		56,484

The following table shows segment information for MGE Energy's and MGE's assets and capital expenditures:

		Utility				Consolidated
(In thousands) MGE Energy		Electric		Gas		Non-regulated Energy		Transmission Investment(a)		All Others		Consolidation/ Elimination Entries		Total
Assets:
December 31, 2020	$	1,421,302	$	444,702	$	254,298	$	74,480	$	495,483	$	(436,614)	$	2,253,651
December 31, 2019		1,308,277		408,001		258,004		71,668		443,278		(407,564)		2,081,664
December 31, 2018		1,193,083		377,005		265,301		66,366		465,661		(378,798)		1,988,618
Capital Expenditures:
Year ended Dec. 31, 2020	$	162,210	$	36,906	$	4,023	$	-	$	-	$	-	$	203,139
Year ended Dec. 31, 2019		125,086		36,193		2,757		-		-		-		164,036
Year ended Dec. 31, 2018		176,399		30,497		5,301		-		-		-		212,197

		Utility				Consolidated
(In thousands) MGE		Electric		Gas		Non-regulated Energy		Consolidation/ Elimination Entries		Total
Assets:
December 31, 2020	$	1,421,302	$	444,702	$	254,248	$	(281)	$	2,119,971
December 31, 2019		1,308,277		408,001		257,954		(755)		1,973,477
December 31, 2018		1,193,083		377,005		265,251		(448)		1,834,891
Capital Expenditures:
Year ended Dec. 31, 2020	$	162,210	$	36,906	$	4,023	$	-	$	203,139
Year ended Dec. 31, 2019		125,086		36,193		2,757		-		164,036
Year ended Dec. 31, 2018		176,399		30,497		5,301		-		212,197

(a)The Transmission Investment segment represents MGE Energy's investment in equity method investees.