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Fair Value of Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2019
Fair Value Disclosures [Abstract] |
Estimated Fair Market Value of Financial Instruments | The estimated fair market value of financial instruments are as follows:
|  |  | December 31, 2019 |  |  | December 31, 2018 |
| (In thousands) |  | Carrying Amount |  | Fair Value |  |  | Carrying Amount |  | Fair Value |
| MGE Energy |  |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |  |
| Cash and cash equivalents | $ | 23,481 | $ | 23,481 |  | $ | 83,102 | $ | 83,102 |
| Liabilities: |  |  |  |  |  |  |  |  |  |
| Short-term debt - commercial paper |  | - |  | - |  |  | 13,000 |  | 13,000 |
| Long-term debt(a) |  | 547,879 |  | 611,909 |  |  | 502,431 |  | 518,811 |
| MGE |  |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |  |
| Cash and cash equivalents | $ | 3,196 | $ | 3,196 |  | $ | 4,843 | $ | 4,843 |
| Liabilities: |  |  |  |  |  |  |  |  |  |
| Short-term debt - commercial paper |  | - |  | - |  |  | 13,000 |  | 13,000 |
| Long-term debt(a) |  | 547,879 |  | 611,909 |  |  | 502,431 |  | 518,811 |
(a) Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $4.5 million as of December 31, 2019 and 2018.
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.
|  | Fair Value as of December 31, 2019 |
| (In thousands) |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |
| MGE Energy |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 303 | $ | 189 | $ | - | $ | 114 |
| Exchange-traded investments |  | 1,271 |  | 1,271 |  | - |  | - |
| Total Assets | $ | 1,574 | $ | 1,460 | $ | - | $ | 114 |
| Liabilities: |  |  |  |  |  |  |  |  |
| Derivatives, net(b) | $ | 27,178 | $ | 608 | $ | - | $ | 26,570 |
| Deferred compensation |  | 3,157 |  | - |  | 3,157 |  | - |
| Total Liabilities | $ | 30,335 | $ | 608 | $ | 3,157 | $ | 26,570 |
| MGE |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 303 | $ | 189 | $ | - | $ | 114 |
| Exchange-traded investments |  | 209 |  | 209 |  | - |  | - |
| Total Assets | $ | 512 | $ | 398 | $ | - | $ | 114 |
| Liabilities: |  |  |  |  |  |  |  |  |
| Derivatives, net(b) | $ | 27,178 | $ | 608 | $ | - | $ | 26,570 |
| Deferred compensation |  | 3,157 |  | - |  | 3,157 |  | - |
| Total Liabilities | $ | 30,335 | $ | 608 | $ | 3,157 | $ | 26,570 |
|  | Fair Value as of December 31, 2018 |
| (In thousands) |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |
| MGE Energy |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 1,042 | $ | 296 | $ | - | $ | 746 |
| Exchange-traded investments |  | 848 |  | 848 |  | - |  | - |
| Total Assets | $ | 1,890 | $ | 1,144 | $ | - | $ | 746 |
| Liabilities: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 32,872 | $ | 124 | $ | - | $ | 32,748 |
| Deferred compensation |  | 3,078 |  | - |  | 3,078 |  | - |
| Total Liabilities | $ | 35,950 | $ | 124 | $ | 3,078 | $ | 32,748 |
| MGE |  |  |  |  |  |  |  |  |
| Assets: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 1,042 | $ | 296 | $ | - | $ | 746 |
| Exchange-traded investments |  | 43 |  | 43 |  | - |  | - |
| Total Assets | $ | 1,085 | $ | 339 | $ | - | $ | 746 |
| Liabilities: |  |  |  |  |  |  |  |  |
| Derivatives, net | $ | 32,872 | $ | 124 | $ | - | $ | 32,748 |
| Deferred compensation |  | 3,078 |  | - |  | 3,078 |  | - |
| Total Liabilities | $ | 35,950 | $ | 124 | $ | 3,078 | $ | 32,748 |
(b)These amounts are shown gross and exclude $1.5 million of collateral that was posted against derivative positions with counterparties as of December 31, 2019.
Significant Unobservable Inputs | The following table presents the significant unobservable inputs used in the pricing model:
|  |  | Model Input
| Significant Unobservable Inputs |  | 2019 |  | 2018
| Basis adjustment: |  |  |  |  |  |
| On peak |  | 92.1 | % |  | 92.1 | %
| Off peak |  | 92.7 | % |  | 92.8 | %
| Counterparty fuel mix: |  |  |  |  |  |
| Internal generation |  | 40%-60 | % |  | 50%-75 | %
| Purchased power |  | 60%-40 | % |  | 50%-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 commodity derivative assets and liabilitiesmeasured at fair value on a recurring basis.
| (In thousands) |  | 2019 |  | 2018 |  | 2017 |
| Balance as of January 1, | $ | (32,002) | $ | (42,026) | $ | (50,306) |
| Realized and unrealized gains (losses): |  |  |  |  |  |  |
| Included in regulatory liabilities |  | 5,545 |  | 10,024 |  | 8,281 |
| Included in other comprehensive income |  | - |  | - |  | - |
| Included in earnings |  | (3,765) |  | 132 |  | (3,718) |
| Included in current assets |  | (70) |  | (47) |  | (9) |
| Purchases |  | 22,974 |  | 23,643 |  | 24,181 |
| Sales |  | - |  | - |  | - |
| Issuances |  | - |  | - |  | - |
| Settlements |  | (19,138) |  | (23,728) |  | (20,455) |
| Transfers in and/or out of Level 3 |  | - |  | - |  | - |
| Balance as of December 31, | $ | (26,456) | $ | (32,002) | $ | (42,026) |
| Total gains (losses) included in earnings attributed to the |  |  |  |  |  |  |
| change in unrealized gains (losses) related to assets and |  |  |  |  |  |  |
| liabilities held as of December 31,(c) | $ | - | $ | - | $ | - |
(c)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 (c).
| (In thousands) |  |  |  |  |  |  |
| Year Ended December 31, |  | 2019 |  | 2018 |  | 2017 |
| Purchased power expense | $ | (3,334) | $ | 355 | $ | (3,314) |
| Cost of gas sold expense |  | (431) |  | (223) |  | (404) |
| Total | $ | (3,765) | $ | 132 | $ | (3,718) |
(c)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.

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