XML 48 R31.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Fair Value of Financial Instruments (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2016
Fair Value Disclosures [Abstract] |
Estimated Fair Market Value of Financial Instruments | The estimated fair market value of MGE Energy's and MGE's financial instruments are as follows:
|  |  | June 30, 2016 |  |  | December 31, 2015 |
| (In thousands) |  | Carrying Amount |  | Fair Value |  |  | Carrying Amount |  | Fair Value |
| MGE Energy |  |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |  |
| Cash and cash equivalents | $ | 110,308 | $ | 110,308 |  | $ | 81,384 | $ | 81,384 |
| Liabilities: |  |  |  |  |  |  |  |  |  |
| Long-term debt* |  | 393,386 |  | 472,696 |  |  | 395,508 |  | 435,767 |
| MGE |  |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |  |
| Cash and cash equivalents | $ | 40,947 | $ | 40,947 |  | $ | 26,760 | $ | 26,760 |
| Liabilities: |  |  |  |  |  |  |  |  |  |
| Long-term debt* |  | 393,386 |  | 472,696 |  |  | 395,508 |  | 435,767 |
| *Includes long-term debt due within one year. |  |  |  |  |  |  |  |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for MGE Energy and MGE.
|  |  | Fair Value as of June 30, 2016 |
| (In thousands) |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |
| MGE Energy |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 1,719 | $ | 1,362 | $ | - | $ | 357 |
| Exchange-traded investments |  | 501 |  | 501 |  | - |  | - |
| Total Assets | $ | 2,220 | $ | 1,863 | $ | - | $ | 357 |
| Liabilities: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 52,240 | $ | - | $ | - | $ | 52,240 |
| Deferred compensation |  | 3,250 |  | - |  | 3,250 |  | - |
| Total Liabilities | $ | 55,490 | $ | - | $ | 3,250 | $ | 52,240 |
| MGE |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 1,719 | $ | 1,362 | $ | - | $ | 357 |
| Exchange-traded investments |  | 84 |  | 84 |  | - |  | - |
| Total Assets | $ | 1,803 | $ | 1,446 | $ | - | $ | 357 |
| Liabilities: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 52,240 | $ | - | $ | - | $ | 52,240 |
| Deferred compensation |  | 3,250 |  | - |  | 3,250 |  | - |
| Total Liabilities | $ | 55,490 | $ | - | $ | 3,250 | $ | 52,240 |
|  |  | Fair Value as of December 31, 2015 |
| (In thousands) |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |
| MGE Energy |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 234 | $ | - | $ | - | $ | 234 |
| Exchange-traded investments |  | 759 |  | 759 |  | - |  | - |
| Total Assets | $ | 993 | $ | 759 | $ | - | $ | 234 |
| Liabilities: |  |  |  |  |  |  |  |  |
| Derivatives, net(a) | $ | 54,316 | $ | 581 | $ | - | $ | 53,735 |
| Deferred compensation |  | 3,145 |  | - |  | 3,145 |  | - |
| Total Liabilities | $ | 57,461 | $ | 581 | $ | 3,145 | $ | 53,735 |
| MGE |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 234 | $ | - | $ | - | $ | 234 |
| Exchange-traded investments |  | 148 |  | 148 |  | - |  | - |
| Total Assets | $ | 382 | $ | 148 | $ | - | $ | 234 |
| Liabilities: |  |  |  |  |  |  |  |  |
| Derivatives, net(a) | $ | 54,316 | $ | 581 | $ | - | $ | 53,735 |
| Deferred compensation |  | 3,145 |  | - |  | 3,145 |  | - |
| Total Liabilities | $ | 57,461 | $ | 581 | $ | 3,145 | $ | 53,735 |
| (a) These amounts are shown gross and exclude $1.0 million of collateral that was posted |
| against derivative positions with counterparties as of December 31, 2015. |
Significant Unobservable Inputs | The following table presents the significant unobservable inputs used in the pricing model.
|  |  | Model Input
| Significant Unobservable Inputs |  | June 30, 2016 |  | December 31, 2015
| Basis adjustment: |  |  |  |
| On peak |  | 94.9% |  | 96.9%
| Off peak |  | 94.7% |  | 95.1%
| Counterparty fuel mix: |  |  |  |
| Internal generation |  | 55% - 75% |  | 60% - 75%
| Purchased power |  | 45% - 25% |  | 40% - 25%
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for both MGE Energy and MGE.
|  | Three Months Ended |  | Six Months Ended
|  | June 30, |  | June 30,
(In thousands) |  | 2016 |  | 2015 |  | 2016 |  | 2015
Beginning balance | $ | (57,101) | $ | (53,866) | $ | (53,501) | $ | (53,986)
Realized and unrealized gains (losses): |  |  |  |  |  |  |  |
Included in regulatory liabilities (assets) |  | 5,218 |  | (2,327) |  | 1,618 |  | (2,208)
Included in other comprehensive income |  | - |  | - |  | - |  | -
Included in earnings |  | (1,809) |  | (883) |  | (3,972) |  | (2,211)
Included in current assets |  | - |  | - |  | - |  | -
Purchases |  | 5,636 |  | 4,953 |  | 10,937 |  | 11,115
Sales |  | - |  | - |  | - |  | -
Issuances |  | - |  | - |  | - |  | -
Settlements |  | (3,827) |  | (4,071) |  | (6,965) |  | (8,904)
Transfers in and/or out of Level 3 |  | - |  | - |  | - |  | -
Balance as of June 30, | $ | (51,883) | $ | (56,194) | $ | (51,883) | $ | (56,194)
Total gains (losses) included in earnings attributed to |  |  |  |  |  |  |  |
the change in unrealized gains (losses) related to |  |  |  |  |  |  |  |
assets and liabilities held at June 30,(b) | $ | - | $ | - | $ | - | $ | -
(b) MGE's exchange-traded derivative contracts, over-the-counter party transactions, purchased power agreement, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability.
Gains and Losses Included in Income for Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis for both MGE Energy and MGE (b).
|  |  | Three Months Ended |  | Six Months Ended |
|  |  | June 30, |  | June 30, |
| (In thousands) |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
| Purchased Power Expense | $ | (1,809) | $ | (885) | $ | (3,972) | $ | (2,213) |
| Cost of Gas Sold Expense |  | - |  | 2 |  | - |  | 2 |
| Total | $ | (1,809) | $ | (883) | $ | (3,972) | $ | (2,211) |
(b) MGE's exchange-traded derivative contracts, over-the-counter party transactions, purchased power agreement, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability.

X
- Definition Tabular disclosure of changes in Level 3 assets and liabilities measured at fair value on a recurring basis. + References No definition available. + Details
Name: | mgee_FairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock
Namespace Prefix: | mgee_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amount of gains or losses for the period included in earnings or resulted in a change to net assets, have arisen from the use of significant unobservable inputs (level 3) to measure the fair value of assets, liabilities, and financial instruments classified in shareholders' equity. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1),(d) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisGainLossIncludedInEarningsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of quantitative information about the inputs used in the fair value measurement of assets. This disclosure may include, but is not limited to, the fair value of the asset, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueInputsAssetsQuantitativeInformationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration