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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Tax Provision | On a consolidated and separate company basis, MGE Energy's and MGE's income tax provision consists of the following provision (benefit) components for the years ended December 31:
|  | MGE Energy |  | MGE
(In thousands) |  | 2013 |  | 2012 |  | 2011 |  | 2013 |  | 2012 |  | 2011
Current payable: |  |  |  |  |  |  |  |  |  |  |  |
Federal | $ | (1,508) | $ | (6,053) | $ | (1,504) | $ | (448) | $ | (5,030) | $ | (607)
State |  | 8,213 |  | 436 |  | 4,580 |  | 8,322 |  | 613 |  | 4,658
Net-deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | 37,203 |  | 37,178 |  | 30,115 |  | 36,937 |  | 36,589 |  | 29,255
State |  | 1,163 |  | 7,618 |  | 3,102 |  | 1,223 |  | 7,523 |  | 3,034
Amortized investment tax credits |  | (212) |  | (260) |  | (301) |  | (212) |  | (260) |  | (301)
Total income tax provision | $ | 44,859 | $ | 38,919 | $ | 35,992 | $ | 45,822 | $ | 39,435 | $ | 36,039
Effective Tax Rate Reconciliation | MGE Energy's and MGE's 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 |
|  | 2013 |  | 2012 |  | 2011 |  | 2013 |  | 2012 |  | 2011 |
| Statutory federal income tax rate | 35.0% |  | 35.0% |  | 35.0% |  | 35.0% |  | 35.0% |  | 35.0% |
| State income taxes, net of federal benefit | 5.1% |  | 5.0% |  | 5.1% |  | 5.1% |  | 5.0% |  | 5.1% |
| Amortized investment tax credits | (0.2)% |  | (0.3)% |  | (0.3)% |  | (0.2)% |  | (0.2)% |  | (0.3)% |
| Credit for electricity from wind energy | (1.5)% |  | (1.6)% |  | (1.8)% |  | (1.5)% |  | (1.5)% |  | (1.8)% |
| Domestic manufacturing deduction | (0.2)% |  | 0.3% |  | (0.7)% |  | (0.2)% |  | 0.3% |  | (0.7)% |
| AFUDC Equity, net | (0.7)% |  | (0.4)% |  | 0.0% |  | (0.7)% |  | (0.4)% |  | 0.0% |
| Other, net, individually insignificant | (0.0)% |  | (0.3)% |  | (0.2)% |  | (0.0)% |  | (0.5)% |  | (0.3)% |
| Effective income tax rate | 37.5% |  | 37.7% |  | 37.1% |  | 37.5% |  | 37.7% |  | 37.0% |
Deferred Tax Liabilities (Assets) | The significant components of deferred tax liabilities (assets) that appear on MGE Energy's and MGE's consolidated balance sheets as of December 31 as follows:
|  |  | MGE Energy |  | MGE |
| (In thousands) |  | 2013 |  | 2012 |  | 2013 |  | 2012 |
| Property-related | $ | 263,881 | $ | 248,545 | $ | 263,881 | $ | 248,545 |
| Investment in ATC |  | 32,696 |  | 29,147 |  | 27,073 |  | 24,993 |
| Bond transactions |  | 1,553 |  | 1,643 |  | 1,553 |  | 1,643 |
| Pension and other postretirement benefits |  | 34,478 |  | 82,072 |  | 34,478 |  | 82,072 |
| Derivatives |  | 26,361 |  | 29,134 |  | 26,361 |  | 29,134 |
| Tax deductible prepayments |  | 7,508 |  | 7,233 |  | 7,508 |  | 7,233 |
| Other |  | 1,995 |  | 10,662 |  | 1,911 |  | 10,634 |
| Gross deferred income tax liabilities |  | 368,472 |  | 408,436 |  | 362,765 |  | 404,254 |
| Future federal tax benefit |  | 0 |  | (25,626) |  | 0 |  | (25,899) |
| Accrued expenses |  | (17,195) |  | (30,277) |  | (17,195) |  | (30,228) |
| Pension and other postretirement benefits |  | (26,838) |  | (69,941) |  | (26,838) |  | (69,941) |
| Deferred tax regulatory account |  | (1,402) |  | (1,551) |  | (1,402) |  | (1,551) |
| Derivatives |  | (26,361) |  | (29,134) |  | (26,361) |  | (29,134) |
| Other |  | (10,369) |  | (5,345) |  | (9,356) |  | (4,940) |
| Gross deferred income tax assets |  | (82,165) |  | (161,874) |  | (81,152) |  | (161,693) |
| Less valuation allowance |  | 195 |  | 365 |  | 195 |  | 365 |
| Net deferred income tax assets |  | (81,970) |  | (161,509) |  | (80,957) |  | (161,328) |
| Deferred income taxes | $ | 286,502 | $ | 246,927 | $ | 281,808 | $ | 242,926 |
Unrecognized Tax Benefits and Interest | A tabular reconciliation of unrecognized tax benefits and interest from January 1, 2011 to December 31, 2013, is as follows:
| (In thousands) |  |  |  |  |  |  |
| Unrecognized tax benefits: |  | 2013 |  | 2012 |  | 2011 |
| Unrecognized tax benefits, January 1, | $ | 3,204 | $ | 2,364 | $ | 4,377 |
| Additions based on tax positions related to the current year |  | 377 |  | 401 |  | 128 |
| Additions based on tax positions related to the prior years |  | 424 |  | 580 |  | 427 |
| Reductions based on tax positions related to the current year |  | (40) |  | 0 |  | 0 |
| Reductions based on tax positions related to the prior years |  | (1,602) |  | (141) |  | (2,568) |
| Unrecognized tax benefits, December 31, | $ | 2,363 | $ | 3,204 | $ | 2,364 |
| (In thousands) |  |  |  |  |  |  |
| Interest on unrecognized tax benefits: |  | 2013 |  | 2012 |  | 2011 |
| Accrued interest on unrecognized tax benefits, January 1, | $ | 314 | $ | 216 | $ | 214 |
| Reduction in interest expense on uncertain tax positions |  | (275) |  | 0 |  | 0 |
| Interest expense on uncertain tax positions |  | 62 |  | 98 |  | 2 |
| Accrued interest on unrecognized tax benefits, December 31, | $ | 101 | $ | 314 | $ | 216 |
Tax Years that Remain Subject to Examination | The following table shows tax years that remain subject to examination by major jurisdiction:
| Taxpayer | Open Years |
| MGE Energy and consolidated subsidiaries in federal return | 2010 through 2013 |
| MGE Energy Wisconsin combined reporting corporation return | 2009 through 2013 |

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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 48 -Paragraph 21 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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