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Taxes (Tables) | 9 Months Ended
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Sep. 30, 2021
Income Tax Disclosure [Abstract] |
Effective Tax Rate Reconciliation | The 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
Three Months Ended September 30, |  | 2021 |  | 2020 |  | 2021 |  | 2020
Statutory federal income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit |  | 6.2 |  |  | 6.3 |  |  | 6.2 |  |  | 6.2 |
Amortized investment tax credits |  | (1.2) |  |  | (0.1) |  |  | (1.3) |  |  | (0.1) |
Credit for electricity from wind energy |  | (4.8) |  |  | (5.0) |  |  | (5.2) |  |  | (5.4) |
AFUDC equity, net |  | (1.1) |  |  | (1.1) |  |  | (1.2) |  |  | (1.2) |
Amortization of utility excess deferred tax - tax reform(a) |  | (12.4) |  |  | (2.0) |  |  | (13.5) |  |  | (2.2) |
Other, net, individually insignificant |  | (0.4) |  |  | (0.4) |  |  | (0.3) |  |  | (0.4) |
Effective income tax rate |  | 7.3 | % |  | 18.7 | % |  | 5.7 | % |  | 17.9 | %
|  | MGE Energy |  | MGE
Nine Months Ended September 30, |  | 2021 |  | 2020 |  | 2021 |  | 2020
Statutory federal income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit |  | 6.2 |  |  | 6.3 |  |  | 6.2 |  |  | 6.2 |
Amortized investment tax credits |  | (1.4) |  |  | (0.1) |  |  | (1.5) |  |  | (0.1) |
Credit for electricity from wind energy |  | (6.0) |  |  | (6.1) |  |  | (6.6) |  |  | (6.6) |
AFUDC equity, net |  | (1.0) |  |  | (1.3) |  |  | (1.1) |  |  | (1.4) |
Amortization of utility excess deferred tax - tax reform(a) |  | (14.5) |  |  | (2.4) |  |  | (15.9) |  |  | (2.6) |
Other, net, individually insignificant |  | (0.1) |  |  | (0.1) |  |  | - |  |  | - |
Effective income tax rate |  | 4.2 | % |  | 17.3 | % |  | 2.1 | % |  | 16.5 | %
(a) Included are impacts of the 2017 Tax Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For the three months ended September 30, 2021 and 2020, MGE recognized $0.7 million. For the nine months ended September 30, 2021 and 2020, MGE recognized $2.0 million. Included in the 2021 rate settlement was a one-time return to customers of the electric portion of excess deferred taxes related to the 2017 Tax Act not restricted by IRS normalization rules. For the three and nine months ended September 30, 2021, MGE recognized $3.3 million and $9.9 million, respectively.

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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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