Taxes

3 Months Ended

Mar. 31, 2021

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,	2021		2020		2021		2020
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		6.3
Amortized investment tax credits	(1.6)		(0.1)		(1.8)		(0.1)
Credit for electricity from wind energy	(7.1)		(6.9)		(7.8)		(7.5)
AFUDC equity, net	(0.6)		(1.6)		(0.6)		(1.7)
Amortization of utility excess deferred tax - tax reform(a)	(16.7)		(2.6)		(18.3)		(2.8)
Other, net, individually insignificant	-		-		(0.1)		(0.1)
Effective income tax rate	1.3	%	16.1	%	(1.3)	%	15.1	%

(a)Included are impacts of the 2017 Tax Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For the three months ended March 31, 2021 and 2020, MGE recognized $0.7 million. Included in the 2021 rate settlement was a one-time return to customers of the electric portion of excess deferred taxes related to the 2017 Tax Act not restricted by IRS normalization rules. For the three months ended March 31, 2021, MGE recognized $3.3 million.