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Condensed Parent Company Financial Statements | 12 Months Ended
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Dec. 31, 2019
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
Condensed Parent Company Financial Statements |
Schedule I
Condensed Parent Company Financial Statements
MGE Energy, Inc.
Statements of Comprehensive Income
(Parent Company Only)
(In thousands)
|  | For the Years Ended December 31, |
|  | 2019 |  | 2018 |  | 2017 |
Operating Expenses: |  |  |  |  |  |  |
Other operations and maintenance | $ | 815 | $ | 913 | $ | 880 |
Total Operating Expenses |  | 815 |  | 913 |  | 880 |
Operating Loss |  | (815) |  | (913) |  | (880) |
Equity in earnings of investments |  | 87,728 |  | 85,220 |  | 99,246 |
Other (loss) income, net |  | (1,500) |  | (1,966) |  | (2,165) |
Interest income, net |  | 1,224 |  | 1,489 |  | 605 |
Income before income taxes |  | 86,637 |  | 83,830 |  | 96,806 |
Income tax provision |  | 237 |  | 389 |  | 800 |
Net Income |  | 86,874 |  | 84,219 |  | 97,606 |
Other Comprehensive Income, Net of Tax: |  |  |  |  |  |  |
Unrealized gain on available-for-sale securities, net of |  |  |  |  |  |  |
tax ($-, $-, and $(117)) |  | - |  | - |  | 175 |
Comprehensive Income | $ | 86,874 | $ | 84,219 | $ | 97,781 |
The accompanying notes are an integral part of the above consolidated financial statements.
MGE Energy, Inc.
Statements of Cash Flows
(Parent Company Only)
(In thousands)
|  | For the Years Ended December 31, |
|  | 2019 |  | 2018 |  | 2017 |
Net Cash Flows Provided by Operating Activities | $ | 27,901 | $ | 27,211 | $ | 70,268 |
Investing Activities: |  |  |  |  |  |  |
Contributions to affiliates |  | (33,631) |  | (3,200) |  | (6,522) |
Contributions to other investments |  | (4,496) |  | (2,626) |  | (4,534) |
Other |  | 214 |  | 873 |  | 843 |
Cash Used for Investing Activities |  | (37,913) |  | (4,953) |  | (10,213) |
Financing Activities: |  |  |  |  |  |  |
Cash dividends paid on common stock |  | (47,842) |  | (45,762) |  | (43,682) |
Other |  | - |  | - |  | (58) |
Cash Used for Financing Activities |  | (47,842) |  | (45,762) |  | (43,740) |
Change in cash, cash equivalents, and restricted cash |  | (57,854) |  | (23,504) |  | 16,315 |
Cash, cash equivalents, and restricted cash at beginning of period |  | 75,036 |  | 98,540 |  | 82,225 |
Cash, cash equivalents, and restricted cash at end of period | $ | 17,182 | $ | 75,036 | $ | 98,540 |
The accompanying notes are an integral part of the above consolidated financial statements.
Schedule I
Condensed Parent Company Financial Statements (continued)
MGE Energy, Inc.
Balance Sheets
(Parent Company Only)
(In thousands)
|  | As of December 31,
ASSETS |  | 2019 |  | 2018
Current Assets: |  |  |  |
Cash and cash equivalents | $ | 17,182 | $ | 75,036
Other current assets |  | 3,180 |  | 3,646
Total Current Assets |  | 20,362 |  | 78,682
Other deferred assets and other |  | 498 |  | 110
Investments: |  |  |  |
Investments in affiliates |  | 856,444 |  | 763,625
Other investments |  | 12,910 |  | 7,672
Total Investments |  | 869,354 |  | 771,297
Total Assets | $ | 890,214 | $ | 850,089
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |
Current Liabilities: |  |  |  |
Accounts payable to affiliates | $ | 530 | $ | 617
Other current liabilities |  | 2,314 |  | 2,500
Total Current Liabilities |  | 2,844 |  | 3,117
Other Credits: |  |  |  |
Deferred income taxes |  | 29,006 |  | 27,151
Accounts payable to affiliates |  | 2,647 |  | 3,177
Other deferred liabilities |  | 41 |  | -
Total Other Credits |  | 31,694 |  | 30,328
Shareholders' Equity: |  |  |  |
Common shareholders' equity |  | 350,936 |  | 350,936
Retained earnings |  | 504,740 |  | 465,708
Total Shareholders' Equity |  | 855,676 |  | 816,644
Commitments and contingencies (see Footnote 3) |  |  |  |
Total Liabilities and Shareholders' Equity | $ | 890,214 | $ | 850,089
The accompanying notes are an integral part of the above consolidated financial statements.
Schedule I Condensed Parent Company Financial Statements (continued) Notes to Condensed Financial Statements (Parent Company Only) 1.Basis of Presentation. MGE Energy is a holding company and conducts substantially all of its business operations through its subsidiaries. For Parent Company only presentation, investment in subsidiaries are accounted for using the equity method. These condensed Parent Company financial statements and related notes have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X. These statements should be read in conjunction with the financial statements and the notes in Item 8. Financial Statements and Supplementary Data of the Annual Report on Form 10-K for the year ended December 31, 2019. 2.Credit Agreements. As of December 31, 2019, MGE Energy had access to an unsecured, committed credit facility with aggregate bank commitments of $50.0 million. As of December 31, 2019, no borrowings were outstanding under this facility. See Footnote 13 of the Notes to Consolidated Financial Statements in this Report for further information regarding MGE Energy's credit agreement. 3.Commitments and Contingencies. See Footnote 16 of the Notes to Consolidated Financial Statements in this Report for information regarding commitments and contingencies. 4.Dividends from Affiliates.
|  |  | Dividends from Affiliates |
| (In thousands) |  | 2019 |  | 2018 |  | 2017 |
| MGE | $ | - | $ | - | $ | 45,000 |
| MGE Power Elm Road |  | 15,500 |  | 15,500 |  | 12,000 |
| MGE Power West Campus |  | 8,000 |  | 6,500 |  | 6,000 |
| MGE Transco |  | 4,653 |  | 4,625 |  | 4,669 |
| MGEE Transco |  | 93 |  | 60 |  | 112 |
| NGV Fueling Services |  | - |  | 50 |  | - |
| Total | $ | 28,246 | $ | 26,735 | $ | 67,781 |
Dividend Restrictions Dividend payments by MGE to MGE Energy are subject to restrictions arising under a PSCW rate order and, to a lesser degree, MGE's first mortgage bonds. The PSCW order restricts any dividends that MGE may pay MGE Energy if its common equity ratio, calculated in the manner used in the rate proceeding, is less than 55%. MGE's thirteen month rolling average common equity ratio as of December 31, 2019, is 57.3% as determined under the calculation used in the rate proceeding. This restriction did not impact MGE's payment of dividends in 2019. No cash dividends were paid by MGE to MGE Energy in 2019 or 2018. The rate proceeding calculation includes as indebtedness imputed amounts for MGE's outstanding purchase power capacity payments and other PSCW adjustments but does not include the indebtedness associated with MGE Power Elm Road or MGE Power West Campus, which are consolidated into MGE's financial statements but are not direct obligations of MGE. MGE has covenanted with the holders of its first mortgage bonds not to declare or pay any dividend or make any other distribution on or purchase any shares of its common stock unless, after giving effect thereto, the aggregate amount of all such dividends and distributions and all amounts applied to such purchases, after December 31, 1945, shall not exceed the earned surplus (retained earnings) accumulated subsequent to December 31, 1945. As of December 31, 2019, approximately $465.2 million was available for the payment of dividends under this covenant. See Footnotes 13 and 14 of the Notes to Consolidated Financial Statements in this Report for more information on dividend restrictions appearing in credit agreements and long-term debt, respectively.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683 + Details
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