XML 36 R15.htm IDEA: XBRL DOCUMENT
v3.25.4

Leases | 12 Months Ended
--- | ---
Dec. 31, 2025
Leases [Abstract] |
Lease | Leas es - MGE Energy and MGE. As part of its regular operations, MGE enters into various contracts related to IT equipment, substations, cell towers, land, wind easements, and other property in use for operations. A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Determination as to whether an arrangement is or contains a lease is completed at inception. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets; lease expense for these leases are recognized on a straight-line basis over the lease term. Leases with initial terms in excess of 12 months are recorded as operating or financing leases on the consolidated balance sheets. Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. For leases that do not provide an implicit rate, a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, is used in determining the present value of future payments. The operating lease asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Operating lease expense is recognized on a straight-line basis over the lease term. As of December 31, 2025, MGE had no significant leases not yet commenced that would create significant future rights and obligations. The following table shows lease expense for the years ended December 31:
(In thousands) |  | 2025 |  |  | 2024 |  |  | Income Statement Location
Finance lease expense: |  |  |  |  |  |  |  |
Amortization of leased assets |  | $ | 1,704 |  |  | $ | 1,598 |  |  | Depreciation and amortization
Interest on lease liabilities |  |  | 625 |  |  |  | 597 |  |  | Interest expense, net
Operating lease expense |  |  | 385 |  |  |  | 441 |  |  | Other operations and maintenance
Total lease expense |  | $ | 2,714 |  |  | $ | 2,636 |  |  |
MGE has regulatory treatment and recognizes regulatory assets or liabilities for timing differences between net lease costs recognized and lease cash payments made. These deferred costs have not been reflected in the table above. See Footnote 8 for further details of deferred lease costs. The following table shows the lease assets and liabilities on the consolidated balance sheets as of December 31:
(In thousands) |  | 2025 |  |  | 2024 |  |  | Balance Sheet Location
Lease assets: |  |  |  |  |  |  |  |
Finance lease assets |  | $ | 15,089 |  |  | $ | 15,611 |  |  | Property, plant, and equipment, net
Operating lease assets |  |  | 7,249 |  |  |  | 7,400 |  |  | Other deferred assets and other
Total lease assets |  | $ | 22,338 |  |  | $ | 23,011 |  |  |
Lease liabilities: |  |  |  |  |  |  |  |
Finance lease liabilities - current |  | $ | 1,271 |  |  | $ | 1,297 |  |  | Other current liabilities
Finance lease liabilities - long-term |  |  | 18,317 |  |  |  | 18,466 |  |  | Other deferred liabilities and other
Operating lease liabilities - current |  |  | 73 |  |  |  | 65 |  |  | Other current liabilities
Operating lease liabilities - long-term |  |  | 7,708 |  |  |  | 7,781 |  |  | Other deferred liabilities and other
Total lease liabilities |  | $ | 27,369 |  |  | $ | 27,609 |  |  |
The following table shows other lease information for the years ended December 31:
(In thousands) |  | 2025 |  |  | 2024 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Finance leases - Financing cash flows |  | $ | 1,430 |  |  | $ | 1,323 |
Finance leases - Operating cash flows |  |  | 900 |  |  |  | 872 |
Operating leases - Operating cash flows |  |  | 300 |  |  |  | 353 |
Lease assets obtained in exchange for lease liabilities: |  |  |  |  |  |
Finance leases |  |  | 1,254 |  |  |  | 1,876 |
Operating leases |  |  | — |  |  |  | 48 |
The following table shows the weighted average remaining lease terms and discounts as of December 31:
Weighted-average remaining lease terms (in years): |  | 2025 |  | 2024
Finance leases |  |  | 36 |  |  |  |  | 35 |  |
Operating leases |  |  | 31 |  |  |  |  | 32 |  |
Weighted-average discount rates: |  |  |  |  |  |  |  |
Finance leases |  |  | 4.53 |  | % |  |  | 4.49 |  | %
Operating leases |  |  | 3.10 |  | % |  | 3.11 |  | %
The following table shows maturities of lease liabilities as of December 31, 2025:
(In thousands) |  | Finance |  |  | Operating |
2026 |  | $ | 2,122 |  |  | $ | 305 |
2027 |  |  | 1,839 |  |  |  | 311 |
2028 |  |  | 1,043 |  |  |  | 317 |
2029 |  |  | 806 |  |  |  | 322 |
2030 |  |  | 762 |  |  |  | 328 |
Thereafter |  |  | 39,647 |  |  |  | 10,884 |
Subtotal |  |  | 46,219 |  |  |  | 12,467 |
Less: Present value discount |  |  | (26,631 | ) |  |  | (4,686 | )
Lease liability |  |  | 19,588 |  |  |  | 7,781 |
Less: current portion |  |  | (1,271 | ) |  |  | (73 | )
Noncurrent lease liability |  | $ | 18,317 |  |  | $ | 7,708 |

X
- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References No definition available. + Details
Name: | mgee_LeasesOfLesseeDisclosuresTextBlock
Namespace Prefix: | mgee_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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