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Pension Plans and Other Postretirement Benefits (Tables) | 12 Months Ended
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Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract] |
Schedule of Benefit Obligations and Change in Plan Assets |
| (In thousands) |  | Pension Benefits |  | Other Postretirement Benefits |
| Change in Benefit Obligations: |  | 2015 |  | 2014 |  | 2015 |  | 2014 |
| Net benefit obligation at beginning of year | $ | 340,233 | $ | 283,958 | $ | 78,478 | $ | 66,100 |
| Service cost |  | 7,263 |  | 6,179 |  | 1,559 |  | 1,339 |
| Interest cost |  | 13,766 |  | 13,574 |  | 3,075 |  | 3,166 |
| Plan participants' contributions |  | - |  | - |  | 741 |  | 708 |
| Actuarial (gain) loss(a) |  | (17,576) |  | 48,162 |  | (5,828) |  | 10,090 |
| Gross benefits paid |  | (11,121) |  | (11,640) |  | (3,280) |  | (3,113) |
| Less: federal subsidy on benefits paid(b) |  | - |  | - |  | 190 |  | 188 |
| Benefit obligation at end of year | $ | 332,565 | $ | 340,233 | $ | 74,935 | $ | 78,478 |
| Change in Plan Assets: |  |  |  |  |  |  |  |  |
| Fair value of plan assets at beginning of year | $ | 288,548 | $ | 277,398 | $ | 38,952 | $ | 37,602 |
| Actual return on plan assets |  | 4,153 |  | 21,907 |  | 603 |  | 2,558 |
| Employer contributions |  | 9,136 |  | 883 |  | 3,154 |  | 1,197 |
| Plan participants' contributions |  | - |  | - |  | 741 |  | 708 |
| Gross benefits paid |  | (11,121) |  | (11,640) |  | (3,280) |  | (3,113) |
| Fair value of plan assets at end of year | $ | 290,716 | $ | 288,548 | $ | 40,170 | $ | 38,952 |
| Funded Status at December 31 | $ | (41,849) | $ | (51,685) | $ | (34,765) | $ | (39,526) |
(a) In 2014, lower discount rates and mortality table updates were the main drivers to the actuarial loss. (b) In 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 was signed into law authorizing Medicare to provide prescription drug benefits to retirees. For the years ended December 31, 2015 and 2014, the subsidy due to MGE was $0.2 million.
Schedule of Amounts Recognized in the Consolidated Balance Sheet | The amounts recognized in the consolidated balance sheets to reflect the funded status of the plans at December 31 are as follows:
|  |  | Pension Benefits |  | Other Postretirement Benefits |
| (In thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014 |
| Current liability | $ | (966) | $ | (1,025) | $ | (52) | $ | (65) |
| Long-term liability |  | (40,883) |  | (50,660) |  | (34,713) |  | (39,461) |
| Net liability | $ | (41,849) | $ | (51,685) | $ | (34,765) | $ | (39,526) |
Amounts Recognized in Regulatory Asset | The following table shows the amounts that have not yet been recognized in our net periodic benefit cost as of December 31 and are recorded as regulatory assets in our consolidated balance sheets:
|  |  | Pension Benefits |  | Other Postretirement Benefits |
| (In thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014 |
| Net actuarial loss | $ | 80,660 | $ | 85,102 | $ | 13,086 | $ | 17,657 |
| Prior service benefit |  | (436) |  | (413) |  | (15,158) |  | (17,827) |
| Transition obligation |  | - |  | - |  | 29 |  | 32 |
| Total | $ | 80,224 | $ | 84,689 | $ | (2,043) | $ | (138) |
Scehdule of Projected Benefit Obligations in Excess of Plan Assets | The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets were as follows:
| (In thousands) |  | Pension Benefits |
| Projected Benefit Obligation in Excess of Plan Assets |  | 2015 |  | 2014 |
| Projected benefit obligation, end of year | $ | 332,565 | $ | 340,233 |
| Fair value of plan assets, end of year |  | 290,716 |  | 288,548 |
Schedule of Projected Benefit and Accumulated Benefit Obligations in Excess of Plan Assets | The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and an accumulated benefit obligation in excess of plan assets were as follows:
| (In thousands) |  | Pension Benefits |
| Accumulated Benefit Obligation in Excess of Plan Assets |  | 2015 |  | 2014 |
| Projected benefit obligation, end of year | $ | 332,565 | $ | 340,233 |
| Accumulated benefit obligation, end of year |  | 302,471 |  | 304,023 |
| Fair value of plan assets, end of year |  | 290,716 |  | 288,548 |
Net Periodic Benefit Costs |
| (In thousands) |  | Pension Benefits |  | Other Postretirement Benefits |
| Components of Net Periodic Cost (Benefit): |  | 2015 |  | 2014 |  | 2013 |  | 2015 |  | 2014 |  | 2013 |
| Service cost | $ | 7,263 | $ | 6,179 | $ | 7,705 | $ | 1,559 | $ | 1,339 | $ | 2,380 |
| Interest cost |  | 13,766 |  | 13,574 |  | 12,656 |  | 3,075 |  | 3,166 |  | 3,871 |
| Expected return on assets |  | (22,682) |  | (22,051) |  | (19,027) |  | (2,812) |  | (2,615) |  | (2,176) |
| Amortization of: |  |  |  |  |  |  |  |  |  |  |  |  |
| Transition obligation |  | - |  | - |  | - |  | 3 |  | 3 |  | 3 |
| Prior service cost (benefit) |  | 23 |  | 204 |  | 314 |  | (2,669) |  | (2,669) |  | 110 |
| Actuarial loss |  | 5,395 |  | 703 |  | 8,014 |  | 953 |  | 252 |  | 1,236 |
| Net periodic cost (benefit) | $ | 3,765 | $ | (1,391) | $ | 9,662 | $ | 109 | $ | (524) | $ | 5,424 |
Plan Assumptions | The weighted-average assumptions used to determine the benefit obligations were as follows for the years ended December 31:
|  |  | Pension Benefits |  | Other Postretirement Benefits |
|  |  | 2015 |  | 2014 |  | 2015 |  | 2014 |
| Discount rate(a) |  | 4.51% |  | 4.11% |  | 4.32% |  | 3.96% |
| Rate of compensation increase |  | 3.78% |  | 3.85% |  | N/A |  | N/A |
| Assumed health care cost trend rates: |  |  |  |  |  |  |  |  |
| Health care cost trend rate assumed for next year |  | N/A |  | N/A |  | 6.5% |  | 6.5% |
| Rate to which the cost trend rate is assumed to |  |  |  |  |  |  |  |  |
| decline (the ultimate trend rate) |  | N/A |  | N/A |  | 5.0% |  | 5.0% |
| Year that the rate reaches the ultimate trend rate |  | N/A |  | N/A |  | 2022 |  | 2021 |
(a) In 2015, MGE refined its methodology for using discount rates to measure the components of net periodic benefit cost. The refined methodology uses individual spot rates, instead of a weighted average of the yield curve spot rates, for measuring the service cost and interest cost components. The change in methodology does not alter the measurement of the related benefit obl igation as of December 31, 2015. The weighted-average assumptions used to determine the net periodic cost were as follows for the years ended December 31:
|  |  | Pension Benefits |  | Other Postretirement Benefits |
|  |  | 2015 |  | 2014 |  | 2013 |  | 2015 |  | 2014 |  | 2013 |
| Discount rate |  | 4.11% |  | 4.88% |  | 4.09% |  | 3.96% |  | 4.69% |  | 4.14% |
| Expected rate of return on plan assets |  | 7.80% |  | 8.10% |  | 8.10% |  | 7.06% |  | 7.07% |  | 6.79% |
| Rate of compensation increase |  | 3.84% |  | 3.93% |  | 4.60% |  | N/A |  | N/A |  | N/A |
Effect of 1% Increase or Decrease in Health Care Costs | The following table shows how an assumed 1% increase or 1% decrease in health care cost trends could impact postretirement benefits in 2015 dollars:
| (In thousands) |  | 1% Increase |  | 1% Decrease |
| Effect on other postretirement benefit obligation | $ | 1,391 | $ | (1,753) |
| Effect on total service and interest cost components |  | 80 |  | (92) |
Fair Value of Plan Assets by Asset Category | The asset allocation for MGE's pension plans at the end of 2015 and 2014, and the target al location for 2016, by asset category, follows:
|  | Target Allocation |  | Percentage of Plan Assets at Year End |
|  |  | 2015 |  | 2014 |
| Equity securities(a) | 63.0 % |  | 63.0 % |  | 62.0 % |
| Fixed income securities | 30.0 % |  | 29.0 % |  | 31.0 % |
| Real estate | 7.0 % |  | 8.0 % |  | 7.0 % |
| Total | 100.0 % |  | 100.0 % |  | 100.0 % |
(a) Target allocations for equity securities are broken out as follows: 45.5% United States equity, 17.5% non-United States equity. The fair value of MGE's plan assets, by asset category are as follows:
|  | Fair Value as of December 31, 2015 |
| (In thousands) |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |
| Cash and Cash Equivalents | $ | 300 | $ | 300 | $ | - | $ | - |
| Equity Securities: |  |  |  |  |  |  |  |  |
| U.S. Large Cap |  | 98,949 |  | - |  | 98,949 |  | - |
| U.S. Mid Cap |  | 22,446 |  | - |  | 22,446 |  | - |
| U.S. Small Cap |  | 27,561 |  | - |  | 27,561 |  | - |
| International Blend |  | 55,948 |  | - |  | 55,948 |  | - |
| Fixed Income Securities: |  |  |  |  |  |  |  |  |
| Short-Term Fund |  | 3,388 |  | - |  | 3,388 |  | - |
| High Yield Bond |  | 16,225 |  | - |  | 16,225 |  | - |
| Long Duration Bond |  | 73,112 |  | - |  | 73,112 |  | - |
| Real Estate |  | 27,231 |  | - |  | - |  | 27,231 |
| Insurance Continuance Fund |  | 1,518 |  | - |  | - |  | 1,518 |
| Fixed Rate Fund |  | 4,208 |  | - |  | - |  | 4,208 |
| Total | $ | 330,886 | $ | 300 | $ | 297,629 | $ | 32,957 |
|  | Fair Value as of December 31, 2014 |
| (In thousands) |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |
| Equity Securities: |  |  |  |  |  |  |  |  |
| U.S. Large Cap |  | 99,256 |  | - |  | 99,256 |  | - |
| U.S. Mid Cap |  | 22,926 |  | - |  | 22,926 |  | - |
| U.S. Small Cap |  | 29,353 |  | - |  | 29,353 |  | - |
| International Blend |  | 47,650 |  | - |  | 47,650 |  | - |
| Fixed Income Securities: |  |  |  |  |  |  |  |  |
| Short-Term Fund |  | 3,776 |  | - |  | 3,776 |  | - |
| High Yield Bond |  | 15,492 |  | - |  | 15,492 |  | - |
| Long Duration Bond |  | 79,603 |  | - |  | 79,603 |  | - |
| Real Estate |  | 23,480 |  | - |  | - |  | 23,480 |
| Insurance Continuance Fund |  | 1,518 |  | - |  | - |  | 1,518 |
| Fixed Rate Fund |  | 4,446 |  | - |  | - |  | 4,446 |
| Total | $ | 327,500 | $ | - | $ | 298,056 | $ | 29,444 |
Change in Fair Value of Level 3 Plan Assets | The following table summarizes the changes in the fair value of the Level 3 plan assets.
|  |  | Level 3 Assets |
| (In thousands) |  | Real Estate |  | Insurance Continuance Fund |  | Fixed Rate Fund |
| Balance as of January 1, 2014 | $ | 19,628 | $ | 1,428 | $ | - |
| Actual return on plan assets: |  |  |  |  |  |  |
| Relating to assets still held at the reporting date |  | 1,561 |  | 44 |  | 54 |
| Purchases, sales, and settlements |  | 2,291 |  | 46 |  | 4,392 |
| Transfers in and/or out of Level 3 |  | - |  | - |  | - |
| Balance as of December 31, 2014 |  | 23,480 |  | 1,518 |  | 4,446 |
| Actual return on plan assets: |  |  |  |  |  |  |
| Relating to assets still held at the reporting date |  | 2,749 |  | 46 |  | 103 |
| Purchases, sales, and settlements |  | 1,002 |  | (46) |  | (341) |
| Transfers in and/or out of Level 3 |  | - |  | - |  | - |
| Balance as of December 31, 2015 | $ | 27,231 | $ | 1,518 | $ | 4,208 |
Benefit Payments, Fiscal Year Maturity | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:
|  |  | Pension |  | Other Postretirement Benefits |
| (In thousands) |  | Pension Benefits |  | Gross Postretirement Benefits |  | Expected Medicare Part D Subsidy |  | Net Postretirement Benefits |
| 2016 | $ | 12,489 | $ | 3,119 | $ | (227) | $ | 2,892 |
| 2017 |  | 13,320 |  | 3,481 |  | (249) |  | 3,232 |
| 2018 |  | 14,506 |  | 3,947 |  | (273) |  | 3,674 |
| 2019 |  | 15,456 |  | 4,453 |  | (296) |  | 4,157 |
| 2020 |  | 16,381 |  | 4,910 |  | (325) |  | 4,585 |
| 2021 - 2025 |  | 95,167 |  | 30,364 |  | (2,121) |  | 28,243 |

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