Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

		December 31,
(In thousands)		2020		2019
First Mortgage Bonds:(a)
7.70%, 2028 Series	$	1,200	$	1,200
Tax Exempt Debt:
3.45%, 2027 Series, Industrial Development Revenue Bonds(b)		-		19,300
2.05%, 2023 Series, Industrial Development Revenue Bonds(b)		19,300		-
Medium-Term Notes:(c)
6.12%, due 2028		20,000		20,000
7.12%, due 2032		25,000		25,000
6.247%, due 2037		25,000		25,000
Total Medium-Term Notes		70,000		70,000
Other Long-Term Debt:(d)
3.38%, retired 2020(e)		-		15,000
3.09%, due 2023(e)		30,000		30,000
3.29%, due 2026(e)		15,000		15,000
3.11%, due 2027(e)		30,000		30,000
2.94%, due 2029(e)		50,000		50,000
5.68%, due 2033(f)		22,762		23,946
5.19%, due 2033(f)		14,985		15,794
5.26%, due 2040(e)		15,000		15,000
5.04%, due 2040(g)		31,806		33,472
4.74%, due 2041(g)		20,167		21,167
4.38%, due 2042(e)		28,000		28,000
4.42%, due 2043(e)		20,000		20,000
4.47%, due 2048(e)		20,000		20,000
3.76%, due 2052(e)		40,000		40,000
4.19%, due 2048(e)		60,000		60,000
4.24%, due 2053(e)		20,000		20,000
4.34%, due 2058(e)		20,000		20,000
Total Other Long-Term Debt		437,720		457,379
Long-term debt due within one year		(4,771)		(19,659)
Unamortized discount and debt issuance costs		(4,146)		(4,479)
Total Long-Term Debt	$	519,303	$	523,741

(a)MGE's utility plant is subject to the lien of its Indenture of Mortgage and Deed of Trust, under which its first mortgage bonds are issued. The Mortgage Indenture provides that dividends or any other distribution or purchase of MGE shares may not be made if the aggregate amount thereof since December 31, 1945, would exceed the earned surplus (retained earnings) accumulated subsequent to December 31, 1945. As of December 31, 2020, approximately $529.9 million was available for the payment of dividends under this covenant.

(b)

In April 2020, MGE borrowed $19.3 million from the City of Madison, Wisconsin's issuance of Industrial Development Revenue Refunding Bonds (Madison Gas and Electric Company Project), Series 2020A. The bonds carry an interest rate of 2.05% per annum with interest payable semi-annually on April 1 and October 1 of each year, which commenced on October1, 2020. The bonds require their holder to tender them on April 30, 2023, at which time the bonds will either be repriced and remarketed or redeemed and retired. MGE used the proceeds to redeem at par $19.3 million of existing Industrial Development Revenue Refunding Bonds (Madison Gas and Electric Company Project), Series 2002B due October 1, 2027.

(c)The indenture under which MGE's Medium-Term notes are issued provides that those notes will be entitled to be equally and ratably secured in the event that MGE issues any additional first mortgage bonds.

(d)Unsecured notes issued pursuant to various Note Purchase Agreements with one or more purchasers. The notes are not issued under, or governed by, MGE's Indenture dated as of September 1, 1998, which governs MGE's Medium-Term Notes.

(e)Issued by MGE. Under that Note Purchase Agreement: (i) note holders have the right to require MGE to repurchase their notes at par in the event of an acquisition of beneficial ownership of 30% or more of the outstanding voting stock of MGE Energy, (ii) MGE must maintain a ratio of its consolidated indebtedness to consolidated total capitalization not to exceed a maximum of 65%, and (iii) MGE cannot issue "Priority Debt" in an amount exceeding 20% of its consolidated assets. Priority Debt is defined as any indebtedness of MGE secured by liens other than specified liens permitted by the Note Purchase Agreement and certain unsecured indebtedness of certain subsidiaries. As of December 31, 2020, MGE was in compliance with the covenant requirements.

(f)Issued by MGE Power West Campus. The Note Purchase Agreements require MGE Power West Campus to maintain a projected debt service coverage ratio of not less than 1.25 to 1.00, and debt to total capitalization ratio of not more than 0.65 to 1.00. The notes are secured by a collateral assignment of lease payments that MGE is making to MGE Power West Campus for use of the WCCF pursuant to a long-term lease. As of December 31, 2020, MGE Power West Campus was in compliance with the covenant requirements.

(g)Issued by MGE Power Elm Road. The Note Purchase Agreement requires MGE Power Elm Road to maintain a projected and actual debt service coverage ratio at the end of any calendar quarter of not less than 1.25 to 1.00 for the trailing 12-month period. The notes are secured by a collateral assignment of lease payments that MGE is making to MGE Power Elm Road for use of the Elm Road Units pursuant to long-term leases. As of December 31, 2020, MGE Power Elm Road was in compliance with the covenant requirements.

Schedule of Long-Term Debt Maturities

Below is MGE Energy's and MGE's aggregate maturities for all long-term debt for years following December 31, 2020.

(In thousands)		2021		2022		2023		2024		2025		Thereafter
Long-term debt maturities	$	4,771	$	4,889	$	54,314	$	5,146	$	5,285	$	453,815