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Regional Transmission Organizations | 12 Months Ended
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Dec. 31, 2013
Regional Transmission Organizations Disclosure [Abstract] |
Regional Transmission Organizations | Regional Transmission Organizations - MGE Energy and MGE. MGE reports on a net basis transactions on the MISO and PJM markets in which it buys and sells power within the same hour to meet electric energy delivery requirements. T his treatment resulted in a $78.0 mi llion reduction to sales to the market and purchase power expense for MISO markets for the year ended December 31, 2013, and a $75.9 million and $102.1 million reduction to sales to the market and purchased power expense for MISO and PJM markets for the years ended December 31, 2012 and 2011, respectively. MISO MGE is a nontransmission owning member of the MISO. MISO, a FERC approved RTO, is responsible for monitoring the electric transmission system that delivers power from generating plants to wholesale power transmitters. MISO's role is to ensure equal access to the transmission system and to maintain or improve electric system reliability in the Midwest. MISO mainta ins a bid-based energy market. MGE offers substantially all of its generation on the MISO market and purchases much of its load requirement from the MISO market in accordance with the MISO Tariff. MGE participates in the ancillary services market operated by MISO. That market is an extension of the existing energy market in which MISO assumes the responsibility of maintaining sufficient generation reserves. In the ancillary services market, MISO provide s the reserves for MGE's load, and MGE may offer to sell reserves from its generating units. MGE participates in the voluntary capacity auction, which provides an optional monthly forum for buyers and sellers of aggregate planning resource credits to interact. Load serving entities, such as MGE, may participate in th e voluntary capacity auction potentially to obtain the necessary aggregate planning resource credits needed to meet their planning reserve margin requirement established by the PSCW. Generator owners, such as MGE, may participate to sell any excess aggregate planning resource credits that are not needed by them. PJM MGE is a member of PJM. PJM, an RTO, is a neutral and independent party that coordinates and direct s the operation of the transmission grid within its area of coverage, administers a competitive wholesale electricity market, and plans regional transmission expansion improvements to maintain grid reli ability and relieve congestion.

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