Bold
goals
Community
focus
Together we build a
strong energy future.
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2019 Annual Report
MGE Energy
2019 annual report
Table of Contents
MGE Energy, Inc.
MGE Energy is an investor-owned
public utility holding company
headquartered in the state capital
of Madison, Wis. MGE Energy is the
parent company of Madison Gas
and Electric Co. The utility provides
natural gas and electric service in
south-central and western Wisconsin.
Assets total approximately $2 billion.
In 2019, revenue was approximately
$569 million. See the Corporate Profile
on the inside back cover.
1. 2019 Highlights
2. Letter to our shareholders
6. Delivering a cleaner future
8. Building new connections
with our customers
10. Driving opportunity
12. Powering community
14. Corporate leadership
16. Shareholder information
Financials: Form 10-K
About the cover
Our complex world increasingly depends
on safe, reliable, affordable and sustainable
energy to power our daily lives and our
local economy. As your community energy
company, Madison Gas and Electric
(MGE) is a critical services provider and
community partner, dedicated to serving
our customers and to enriching the
areas we serve, including the evolving
Capitol East District near our corporate
headquarters in downtown Madison, Wis.
MGE Energy (MGEE)
Year at a Glance
(Thousands, except per share amounts and shares outstanding)
2019
2018
Increase/(Decrease) % Change
Total Market Value (Dec. 31)
$ 2,732,561
$ 2,078,715
Market Price Per Share (Dec. 31)
Book Value Per Share
$
$
78.82
24.68
$
$
59.96
23.56
Average Shares Outstanding
34,668,370
34,668,370
Shares Outstanding at Year-End
34,668,370
34,668,370
$ 653,846
$ 18.86
$
1.12
-
-
Operating Revenues
$ 568,855
$ 559,768
$ 9,087
Net Income
Basic and Diluted Earnings Per Share
Dividends Declared Per Share
$
$
$
86,874
2.51
1.38
$
$
$
2.43
1.32
84,219
$ 2,655
Dividend Payout Ratio
55.0%
54.3%
Total Assets
$ 2,081,664
$ 1,988,618
$ 93,046
Total Retail Electric Sales (kWh)
3,213,882
3,289,425
Total Gas Deliveries (therms)
291,786
282,700
(75,543)
9,086
For detailed financial information, see the 2019 MGE Energy Form 10-K.
Earnings Per Share
(2015 – 2019)
Capital Expenditures
(in millions)
$
$
0.08
0.06
0.7%
31.5
31.5
4.8
0.0
0.0
1.6
3.2
3.3
4.5
1.3
4.7
-2.3
3.2
$2.06
$2.18
$2.82*
$2.43
$2.51
$212
$226
$224
$164
$137
$108
$84
$72
$250,000
$200,000
$150,000
$100,000
$50,000
0
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
* Includes one-time tax benefit of 62 cents per share
due to tax act.
2020
forecast
2021
forecast
2022
forecast
1
Letter to our
shareholders
We are working toward
net-zero carbon electricity
for the benefit of all those
we serve.
2
“ MGE is committed to ensuring
our ongoing transition to cleaner
energy sources will serve
all customers while building
customer and shareholder value.”
Your community energy company is delivering
on its vision of a more sustainable future, driven
by cost-effective, clean energy investments and
partnerships to grow the use of new technologies,
such as electric vehicles (EV) and smart
thermostats, with all customers.
Our goals are bold. Madison Gas and Electric (MGE)
was among the first utilities to announce a goal of
net-zero carbon electricity by 2050. MGE’s target
reflects our commitment to long-term sustainability
and to our customers and the communities that
rely on a robust community grid for safe, reliable,
affordable and sustainable energy.
To achieve deep decarbonization, we are partnering
with those we serve to decarbonize our electricity
generation, building clean energy projects and
expanding customer programs, like Shared Solar.
We are engaging around energy efficiency, joining
forces to make smart thermostats available to
lower-income households, and we are working to
grow the use of EVs with new tools and forward-
thinking collaborations. MGE is seizing opportunities
to build long-term value for our customers and
loyal shareholders.
Chairman, President and CEO Jeff Keebler at the restored
Garver Feed Mill in the city of Madison.
Strong financial performance
In 2019, we reported earnings of $2.51 per share, compared
to $2.43 per share in 2018. Earnings for 2019 were positively
impacted by an increase in owned renewable generation
assets, namely our Saratoga Wind Farm, and colder weather
in the first quarter of 2019.
We understand the importance of dividend growth and
stock price appreciation for our investors. MGE Energy has
increased the dividend for 44 consecutive years and paid
dividends for more than 110 years. No other Wisconsin utility
or utility holding company matches our history of dividend
increases. The financial publisher Mergent consistently
recognizes MGE Energy as a “Dividend Achiever.”
In 2019, your Board of Directors increased the annual
dividends paid per share by 4.5% to $1.38. In the last five
years, shareholders have seen 24% dividend growth.
and reinvested dividends. Throughout the last five years,
MGE Energy’s annualized total return was 14%, outpacing
the Russell 2000, S&P 500 and EEI Investor-Owned Electric
Utilities. A $1,000 investment in MGE Energy, with dividends
reinvested, would have grown to $1,932 during the five years
ending Dec. 31, 2019.
MGE continues to maintain the highest credit ratings of
any investor-owned combination utility in the nation from
Standard & Poor’s (S&P) and Moody’s. Value Line also gives
MGE Energy top marks for investment safety and its highest
grades for financial strength.
Cumulative Total Return Comparison
(assumes $1,000 investment on 12/31/14 with dividends reinvested)
$2,000
MGEE $1,932
We also have seen steady appreciation in our stock price.
MGE Energy shares closed 2019 at $78.82, which is an
increase from $59.96 at the close of 2018. Throughout the last
five years, the price of MGE Energy stock has outpaced the
national indices of the S&P 500 and the Russell 2000. In the
last 10 years, our stock price has more than tripled.
$1,000
investment
2014
2015
2016
2017
2018
2019
An important indicator of your investment’s performance,
total return is the combination of stock price appreciation
MGE Energy
14.07%
S&P 500
11.70%
EEI Investor-Owned Electrics
10.46%
Russell 2000
8.23%
250.0
2009 – 2019 Stock Price Performance
%
Change
0.0
MGEE
231%
190%
167%
MGE Top Credit Quality
S&P
Corporate Credit: AA-
Outlook: Stable
Moody’s
Secured: Aa2
Unsecured: A1
Outlook: Stable
MGEE Value Line Ratings
Safe Investment
No. 1
Financial Strength
A+
-50.0
2009
2011
MGEE
2013
2015
2017
2019
S&P 500
Russell 2000
MGE Energy compared to the S&P 500 and the Russell 2000.
3
Top left: Debbie and Allen Guilette, surrounded by their family, host two wind turbines on their property for MGE’s Rosiere Wind Farm,
which celebrated 20 years in operation in 2019. Top right: MGE works with Madison-based kitchen appliance manufacturer Sub-Zero
Group, Inc., to support the company’s energy goals and partnered to implement an electric vehicle workplace charging program. We
also are working with the company’s energy team to power Sub-Zero’s expanding campus near Madison with solar energy under MGE’s
innovative Renewable Energy Rider. Bottom left: MGE’s network of more than 40 public charging stations, all powered by green energy,
includes this new Level 2 charging station at the Garver Feed Mill, a restored historic property on Madison’s near east side. Bottom
right: Electric system operations crews return to the massive Judge Doyle Square construction project in downtown Madison after
crews installed four transformers in an underground vault to serve the site as part of MGE’s downtown network.
Sustainable energy for future generations
Twenty years ago, MGE built the largest wind farm east of the
Mississippi River, our 11-megawatt (MW) Rosiere Wind Farm.
MGE worked with several landowners, including Debbie and
Allen Guilette, to bring the wind farm to 30 acres in Kewaunee
County, Wis. Rosiere came online in 1999 as one of the first
wind farms in the entire upper Midwest. MGE has extended its
contract with landowners who host the 17 turbines, which will
continue to generate clean energy for years to come.
MGE is building upon its record of industry leadership,
continuing to grow its use of clean energy generation. In
2015, MGE introduced its Energy 2030 framework for a more
sustainable future. The framework lays out foundational
objectives, one of which reinforces our commitment to
ensuring all our customers benefit from MGE’s transition to
cleaner energy sources. Since 2015, MGE has announced
an estimated $350 million in cost-effective, utility-scale wind
and solar generation, equating to a roughly 600% increase in
owned renewable capacity that will serve all customers with
renewable energy.
Our 66-MW, $108 million Saratoga Wind Farm came online
in early 2019. In the fall, representatives from the City of
Middleton and the Middleton-Cross Plains Area School District
joined MGE to break ground on a 5-MW solar array at the
Middleton Municipal Airport. The nearly $9 million Morey Field
Solar project is one of four solar projects in development
in 2020.
MGE is partnering with Dane County to serve its operations
with solar energy from a proposed 9-MW array to be built this
year at Dane County Regional Airport. MGE will own the solar
infrastructure, lease the land at the airport from Dane County
and sell the energy to the County. The $16 million project
helps MGE and the County reach their clean energy goals.
4
MGE also is investing an estimated $195 million in the
Badger Hollow Solar Farm and the Two Creeks Solar project.
In February 2020, MGE obtained preliminary approval from
state regulators to purchase another 50 MW from the second
phase of Badger Hollow, expected in 2021. The two Wisconsin
projects will deliver 150 MW of cost-effective, clean energy
to our community grid.
area, like much of the Midwest, experienced record cold
temperatures, leading to three days of historic gas usage on
our distribution system. MGE’s Energy Supply and Trading
department actively monitors the weather as well as interstate
pipeline conditions and system load to ensure natural gas
deliveries to MGE’s system keep up with customer demand.
Anticipating the needs of and exceeding the expectations
of our customers are part of our mission and our long-term
growth. With customer service a top priority, MGE developed
our Renewable Energy Rider (RER). It gives MGE the ability
to tailor a renewable energy solution to meet a customer’s
specific energy needs.
MGE is working with family-owned Sub-Zero Group, Inc.,
maker of Sub-Zero, Wolf and Cove premium kitchen
appliances. Under an RER agreement, MGE will supply the
company’s manufacturing facilities and expanding operations
in Fitchburg, Wis., with electricity from the nearby O’Brien
Solar Fields. If approved, the proposed project of up to 20 MW
just outside of Madison is expected to serve a number of large
MGE customers under RER agreements.
MGE also is moving forward RER agreements with the City of
Madison and the Madison Metropolitan School District, both
of which would be served by a proposed 7-MW solar array
to be built near Madison in 2021. The RER program grows
locally based clean energy and advances large customers’
sustainability goals.
Top-ranked reliability to support our local economy
MGE remains a national leader in electric reliability. We
continue to invest in our systems and capabilities to meet our
fundamental obligation as a critical services provider. We also
are investing to enable and to manage a dynamic, resilient
electric grid that supports new technology such as distributed
energy sources like solar and battery storage.
For 2018, MGE’s electric service reliability ranked number
one in the country for the fewest number of electric outages,
according to an annual industry survey of more than 80
electric utilities. MGE has ranked in the top three utilities
in the country for the fewest number of outages in each
of the last 12 years, according to the survey.
Our safe, reliable natural gas service helps to maintain the
health of our community. In late January 2019, the Madison
Driving the enterprise forward
In recent years, we have introduced Enterprise Forward, our
multiyear, enterprise-wide initiative to replace and upgrade
internal systems, enabling MGE’s transition to a digital,
integrated utility. These improvements include enhancing
the customer experience with increased capabilities to
communicate with customers and to offer the customized
programs, products and services expected of a community
energy company for the future.
Our internal technological transformation is underway
alongside our transition to greater sustainability. Our net-
zero carbon electricity goal is based on the latest climate
science from the Intergovernmental Panel on Climate Change
(IPCC), which identifies pathways and actions needed to
limit global warming to 1.5° Celsius. Our strategies are
consistent with those identified by the international IPCC,
and MGE is working with renowned climate experts from
the University of Wisconsin-Madison’s Nelson Institute for
Environmental Studies to evaluate our goal for achieving
deep decarbonization to ensure it is consistent with the
IPCC assessment.
Accomplishing net-zero carbon electricity will require the
use of technologies not yet cost-effective or commercially
available on a large scale, such as battery storage, but
technology is evolving rapidly. Our net-zero carbon goal
reflects our vision and signals our direction, but it does not
determine our pace. We are working today as aggressively
and cost-effectively as we can toward deep decarbonization
for the benefit of our customers, shareholders and greater
community. We thank you for your investment in this journey
with us toward a stronger, more sustainable future.
Jeffrey M. Keebler
Chairman, President and Chief Executive Officer
5
Delivering a
cleaner future
We are seizing opportunities to
invest in cost-effective renewable
energy in pursuit of our goals.
Our investments in large-scale
clean generation help to ensure
all customers benefit from
sustainable energy.
All of the turbines at our newest, largest wind
farm began generating carbon-free electricity
in February 2019. MGE’s Saratoga Wind Farm,
located in Howard County, Iowa, about 200
miles west of Madison, is the company’s fourth
wind farm. More than 30 turbines dot the rural
landscape, delivering clean electricity to the grid.
At nearly 500-feet tall, Saratoga’s modern
turbines stretch higher to take advantage of
faster wind speeds. The blades sweep an area
longer than a football field. The larger blades
help to increase the amount of energy captured
from the wind, which increases Saratoga’s
efficiency compared to other wind farms. The
towers’ individual footprints, however, measure
only 18 feet across, allowing local farmers to
continue to cultivate the land surrounding them.
Within the last 12 years, we have grown our wind
capacity from 11 megawatts (MW) to 153 MW.
Wind power has decreased in cost, increased in
efficiency and carries no fuel costs, all of which
help MGE to deliver on our commitment to
provide safe, reliable, affordable and sustainable
energy to all customers. MGE continues to seek
additional opportunities to grow our investment
in wind power.
The sun rises over the rural landscape surrounding our
Saratoga Wind Farm’s 33 turbines. The Iowa wind farm
produces enough carbon-free electricity to serve about
47,000 households.
6
Community partners help us grow local clean energy.
Growing our use of renewable energy is one of our strategies for achieving
deep decarbonization and our goal of net-zero carbon electricity by 2050.
By partnering with large customers, such as municipalities, local schools,
businesses and others, we can advance shared sustainability goals.
One such example is our partnership with the City of Middleton and the
Middleton-Cross Plains Area School District (MCPASD). Thirty percent of MGE’s
5-megawatt (MW) Morey Field Solar project at the Middleton Municipal Airport
will serve the City and the school district under Renewable Energy Rider
agreements with MGE. Our Renewable Energy Rider is designed for large
customers seeking a customized clean energy solution. The customer pays for
costs associated with sourcing the renewable generation and for distributing the
energy to the customer.
One MW of the Morey Field Solar array will serve nine local school buildings.
The superintendent says the district’s support for clean energy fits with its
mission to educate students as members of their local community as well
as the broader, global society.
A 0.5-MW share will serve the City, helping Middleton reach its near-term
goal of 25% renewable energy for City operations by 2025 and 100% by
2035. The Morey Field Solar project builds upon MGE’s existing clean energy
partnership with the City. In early 2017, MGE’s first Shared Solar project,
located on the roof of Middleton’s Municipal Operations Center, began serving
Shared Solar participants.
Large solar projects capture the power of the sun for all.
A key, foundational objective in our clean energy transition is ensuring all
customers benefit from the use of new, sustainable technologies. Like wind
turbine technology, the cost of utility-scale solar has decreased, dropping about
80% in less than 10 years, and the technology has improved in productivity. Our
investments in large, cost-effective solar projects deliver carbon-free energy
to all customers.
MGE is purchasing 150 MW of solar capacity from two Wisconsin projects.
The Badger Hollow Solar Farm is located in southwestern Wisconsin where
the Bishop family has farmed for decades. The family is leasing some of its land
for the 300-MW project. Brad Bishop says payments from the project will help
to keep the farm in the family for future generations.
MGE will own 100 MW of the Badger Hollow Solar Farm. MGE also is investing
in 50 MW from the 150-MW Two Creeks Solar project in northeastern Wisconsin.
Both Two Creeks Solar and the Badger Hollow Solar Farm will feature native
ground cover to attract pollinators and to enhance wildlife habitat.
7
Top: Dr. Dana Monogue, Superintendent of the
Middleton-Cross Plains Area School District,
and Gurdip Brar, Mayor of the city of Middleton,
stand in the library at Kromrey Middle School,
one of nine buildings that will be powered by
clean energy through the district’s and the
City’s partnership with MGE.
Bottom: Brad Bishop (far right) is leasing part
of his family’s farm to the 300-MW Badger
Hollow Solar Farm in Iowa County, Wis. He says
payments from the project will help keep the
farm in the family for future generations.
Building new
connections with
our customers
Our new and emerging
customer offerings
foster relationships
around energy
technologies.
Lauren and Kuba Krzyzostaniak participate in MGE’s smart
thermostat program, MGE Connect, which enables MGE to make
minor temperature adjustments to household thermostats during
summertime periods of peak energy use. The program tests the
potential for using smart devices to help manage the grid.
8
Energy efficiency is
considered a key strategy
for achieving deep
decarbonization.
MGE is advancing new technologies in
partnership with our customers to help
manage our collective use of energy.
By employing new technologies to help
customers save—whether through remote
management of smart thermostats or
electric vehicle (EV) home charging
stations—we can better manage our
grid, our environmental impact and
long-term costs for all customers
and help participating customers use
energy efficiently.
Last summer, we launched MGE Connect™,
an expansion of our smart thermostat
demand response pilot program. With
nearly 1,000 customers enrolled using a
variety of smart thermostats, MGE tests the
use of these Wi-Fi-connected devices to
help manage the grid during summertime
periods of peak electricity demand.
Working with our partner, EnergyHub®,
we are able to make minor temperature
increases to household air conditioners
during these periods with minimal, if any,
impact on comfort.
Lauren and Kuba Krzyzostaniak signed
up for MGE Connect after moving into
their home on Madison’s near east side.
Lauren, who works from home, says she
barely noticed the remote thermostat
adjustments, which can last two to four
hours. Customers can opt out of the
adjustments at any time.
Shared Solar makes it easier than ever for customers to go solar.
MGE’s Residential and Community Services team works with our residential
customers and community organizations to understand their needs and to share
information about energy efficiency, electric and gas safety, and new programs,
such as our unique community solar program, Shared Solar.
Building on the success of our first Shared Solar project, MGE is expanding the
optional program with a 5-megawatt solar array at Middleton Municipal Airport.
Seventy percent of the solar project will serve the program. With minimal
up-front cost, Shared Solar offers customers who either cannot or choose not to
install solar panels themselves the opportunity to power their home or business
with locally generated solar from MGE.
MGE partnered in summer with the Madison Area Chinese Community
Organization to host multiple workshops introducing the expansion of the
popular program. Partnerships such as this enable MGE to better communicate
our programs, products and services with our diverse customer base. Dozens of
people attended to hear from MGE energy experts about the convenience and
affordability of Shared Solar.
The solar project, known as Morey Field Solar, will feature panels capable
of tracking the sun throughout the day, resulting in about 25% more energy
harvested compared to fixed panels. The program’s share of the array will serve
the equivalent of approximately 1,100 households.
Our EV charging program enhances sustainability in the workplace.
It’s fair to say Jay Sandvick is an electric vehicle (EV) enthusiast. He has driven
an EV for almost 10 years. He used his background and expertise to work
with MGE to launch an EV workplace charging program at Madison-Kipp
Corporation (MKC), a Madison-based maker of high-pressure, aluminum die
castings and other components used in various manufacturing industries,
including transportation.
MGE helped Sandvick initiate an employee survey and determine the optimal
charging equipment and location at the 120-year-old business. The survey
revealed high interest in offering workplace charging with 50% of respondents
reporting they would consider an EV if they could charge at work.
Sandvick and other MKC employees and guests keep their EVs charged at
the charging station outside of the office. Sandvick says the chargers have
generated more awareness of and discussion at the company about the
benefits of EVs.
MKC is one of a growing number of local businesses embracing EV charging
for both sustainability and employee recruitment and retention. MGE seeks to
partner with all of our customers to enable the use of new technologies to meet
customers’ needs and to achieve our long-term goals.
9
Top: MGE’s Residential and Community
Services team works to engage customers
directly. Last summer, energy experts partnered
with the Madison Area Chinese Community
Organization to host workshops where
attendees could learn about and sign up
for our Shared Solar program.
Bottom: Mark Sheppard, Environment, Health
and Safety Manager, and Jay Sandvick, Senior
Automation/Controls Engineer, worked to
implement a workplace charging program at
Madison-Kipp Corp. with help from MGE.
Driving
opportunity
We are partnering in
new ways to grow our
business.
MGE is partnering with the ridesharing company Lyft to grow the use
of electric vehicles (EV). EV drivers at Dane County Regional Airport
will be able to charge at a new DC fast-charging station from MGE.
10
Our collaborations with Lyft and
other partners help to spread
awareness of the benefits of
“going electric.”
The use of ridesharing services, such as Lyft, has
increased dramatically in recent years. It’s common
to see ridesharing drivers operating at Dane County
Regional Airport, which sees about two million
travelers each year.
MGE is partnering with Lyft to grow the use of
electric vehicles (EV) in the Madison area. MGE
and Lyft are offering a $500 bonus to new
EV drivers who sign up to drive with Lyft.
The largest contributor of U.S. greenhouse gas
(GHG) emissions, transportation accounts for 29%
of GHG emissions in the U.S. The electrification of
transportation is a key strategy for reducing carbon
emissions. Our partnership with Lyft helps to reduce
emissions, grow the use of EVs and highlight their
benefits. Riders get to experience first-hand what
EVs have to offer.
MGE also continues to facilitate charging options
across our community, including at Dane County
Regional Airport where Lyft drivers and others will
be able to charge at a DC fast-charging station
powered by green energy. DC fast chargers
typically provide 60 to more than 80 miles of
range in about 20 minutes.
We are helping to educate our community’s next generation.
The City of Madison’s Fleet Service building served as the backdrop for a
one-of-a-kind fall field trip for students from James Madison Memorial High
School. The students, enrolled in engineering and consumer auto classes,
visited to see and to learn about the City’s growing fleet of EVs and the future
of transportation.
MGE, the City of Madison, the Madison Metropolitan School District (MMSD) and
Madison College teamed up to facilitate the daylong field trip, which included
a stop at MGE. Gathered by MGE’s public DC fast charger, students learned
from MGE staff in Energy Products and Services about the different levels of EV
charging. MGE has a public charging network of more than 40 green-powered
charging stations, including four DC fast chargers.
MGE has a long history of partnering with our community and its schools to
offer our youth lessons in safety, energy efficiency, renewable energy and
new technologies. We continue to work with MMSD teachers and staff to bring
an EV curriculum into the schools. The program uses real-world EV charging
station data to help students learn about sustainability, STEM disciplines and
sustainable transportation.
Our team works to enable EV charging where it’s most popular.
The number of EVs on the road continues to grow. One of the reasons for their
increasing popularity—convenience. Driving an EV means no more trips to the
gas station to fill up when drivers can “fuel up” from the convenience of their
home. More than 80% of EV charging happens at home.
Sabrina Guger understands the value of offering EV charging where people live.
She manages several downtown Madison properties for Urban Land Interests
(ULI), a longtime developer and provider of hundreds of residential rental units
in the city of Madison.
Guger oversees Nine Line at the Yards across from Monona Bay. The 80-unit
building features underground parking with EV charging for tenants. Guger
worked with MGE to install EV charging stations at several ULI buildings after
getting requests from residents and prospective tenants. “People want to
charge when they’re home,” Guger says.
MGE works with many property managers, developers and owners of apartment
buildings who say offering EV charging helps them to stay competitive. MGE
staff help these customers navigate the process for getting a charging station
installed and a charging program for tenants underway.
11
Top: MGE’s Jim Jenson and Debbie Branson,
City of Madison Fleet Program Manager Tyson
Roessler and Memorial High School Teacher
Miles Tokheim gave local high school students
a look at the future of transportation with a
daylong EV field trip.
Bottom: Sabrina Guger, Property Manager
for Urban Land Interests, worked with MGE
to launch EV charging at several Madison
apartment buildings.
Powering
community
We work to fuel innovation
and inspiration to enrich our
community in many ways.
The MGE Foundation helps to
support community resources
for all to enjoy.
Our community’s next generation can get a hands-on
lesson in renewable energy and new energy
technologies at the Madison Children’s Museum
(MCM). With support from the MGE Foundation, the
museum’s new Rooftop Ramble exhibit features an
interactive solar flower installation and a whimsical
repurposed windmill, which powers a water feature.
Sustainability is a core value at the museum. Cheryl
DeWelt, Environmental Education Manager at the
MCM, says improvements to its newly renovated
green roof ensure “sustainability for all,” providing
access and opportunity for all young people to
explore the museum’s “paradise in the sky.”
Inside the rooftop clubhouse, a child-sized electric
vehicle (EV)—complete with its own charging
station—serves to spark lessons about EVs and
sustainable transportation.
The MGE Foundation averages more than a million
dollars in charitable contributions annually to our
community’s nonprofits. The foundation is proud to
support the MCM’s mission of educating our youth
through discovery and fun.
Cheryl DeWelt, Environmental Education Manager at the Madison
Children’s Museum, says the renewable energy exhibits on the
museum’s green roof, recently renovated with support from the
MGE Foundation, are popular with visitors.
12
Safe, reliable natural gas helps to keep our economy growing.
American Packaging Corporation (APC) operates its 170,000-square-foot
printing facility in DeForest, Wis., seven days a week, 24 hours a day. The three-
year-old, $50 million investment uses natural gas to help power technically
advanced rotogravure printing presses. MGE collaborated with APC before and
during construction to design a gas delivery system that meets APC’s critical
needs for consistent, high-volume service with an eye toward expansion.
With $500 million in annual sales, the company provides consumer brands with
flexible packaging for everything from food and beverage items to health care,
wellness and beauty products. APC continues to advance new and sustainable
technologies, such as its “recycle ready” family of products.
The company’s rapid growth in recyclable and compostable packaging is
already fueling another expansion in DeForest. Construction is underway for
an additional 126,000 square feet of production space that should be ready by
mid-2020. MGE is committed to working with our community’s businesses to
provide safe, reliable, affordable and sustainable energy that meets their needs
and grows a healthy local economy.
We partner to foster innovation by our community’s entrepreneurs.
The city of Madison enjoys a robust entrepreneurial community driven,
in part, by the area’s expanding biohealth industry. In 2019, the business
incubator Forward BIOLABS expanded on the city’s west side in University
Research Park, a longtime hub of innovation and affiliate of the University of
Wisconsin-Madison.
The MGE Foundation continues to support research, innovation and economic
development through its support of Forward BIOLABS. The life sciences
incubator provides fully equipped and supported co-working lab space,
eliminating the need for new and emerging biohealth companies to lease,
equip and operate their own labs. More than a dozen companies call Forward
BIOLABS home.
Forward BIOLABS cofounder and CEO Jessica Martin Eckerly says biohealth
start-ups face unique, capital-intensive challenges, which the turnkey lab at
Forward BIOLABS is designed to address.
“Our member companies are seeking to solve critical health care problems and
to develop solutions that save lives,” Eckerly says. “Forward BIOLABS enables
young companies to focus their efforts on growing efficiently, giving member
companies access to a supportive environment, resources and relationships
to help them advance cutting-edge technologies.”
As member companies graduate from Forward BIOLABS, companies may
transition into the 100,000-square-foot MGE Innovation Center, established
in 1989 at University Research Park.
13
Top: American Packaging Corporation relies
on safe and reliable natural gas service from
MGE to help power its 170,000-square-foot
facility in DeForest, Wis. Press Operator Megan
Westphal keeps the presses running to deliver
customized flexible packaging solutions.
Bottom: Jessica Martin Eckerly, cofounder and
CEO of Forward BIOLABS, stands in laboratory
space at the new business incubator on the
city of Madison’s west side. With support from
the MGE Foundation, Forward BIOLABS offers
turnkey, state-of-the-art laboratory space
to help young biohealth start-ups grow into
successful companies.
Corporate leadership
Directors of MGE Energy and MGE
Marcia M. Anderson
Retired Clerk of Court of
U.S. Bankruptcy Court -
Western District of Wis.,
retired Major General in
the U.S. Army
Age 62
Director since 2018
James G. Berbee
Former Chairman and
CEO of Berbee Information
Networks Corp.,
physician and Chair of
the Wisconsin Alumni
Research Foundation
Age 56
Director since 2018
Mark D. Bugher
Retired Director of
University Research
Park, University of
Wisconsin-Madison
Age 71
Director since 2010
Londa J. Dewey
Chief Executive Officer
of QTI Management
Services, Inc., a human
resources and staffing
company
Age 59
Director since 2008
F. Curtis Hastings
Retired Chairman of
J. H. Findorff & Son, Inc.,
commercial and industrial
general contractors
Age 74
Director since 1999
Jeffrey M. Keebler
Chairman, President and
Chief Executive Officer
of MGE Energy, Inc.,
and Madison Gas and
Electric Co.
Age 48
Director since 2017
James L. Possin
Certified Public
Accountant and tax
consultant with James L.
Possin CPA, LLC. Former
partner at Grant
Thornton LLP
Age 68
Director since 2009
Thomas R. Stolper
Former Executive Vice
President and Director
of ProActive Solutions
USA LLC, management
consultant at Purple
Cow Organics and
Deibel Laboratories
Age 71
Director since 2008
Gary J. Wolter
Former Chairman,
President and Chief
Executive Officer of
MGE Energy, Inc.,
and Madison Gas and
Electric Co.
Age 65
Director since 2000
Note: Ages as of Dec. 31, 2019.
For detailed information on board members, see the MGE Energy Proxy Statement.
14
Officers of MGE Energy and MGE
Jeffrey M. Keebler1
Chairman, President and
Chief Executive Officer
Age 48
Years of Service, 24
Jeffrey C. Newman1
Executive Vice President,
Chief Financial Officer,
Secretary and Treasurer
Age 57
Years of Service, 35
Lynn K. Hobbie
Executive Vice President -
Marketing and
Communications
Age 61
Years of Service, 34
Cari Anne Renlund
Vice President and
General Counsel
Age 46
Years of Service, 5
Donald D. Peterson
Vice President -
Energy Technology
Age 60
Years of Service, 37
Jared J. Bushek
Vice President - Finance
and Chief Information
Officer
Age 39
Years of Service, 9
Tamara J. Johnson
Vice President -
Accounting and Controller
Age 55
Years of Service, 26
Gregory A. Bollom
Assistant Vice President
and Regulatory
Consultant
Age 59
Years of Service, 37
Marshall S. Heyworth
Assistant Vice President -
Human Resources
Age 63
Years of Service, 6
James J. Lorenz
Assistant Vice President -
Electric Operations
Age 53
Years of Service, 32
Scott R. Smith
Assistant Vice President -
Business and Regulatory
Strategy
Age 48
Years of Service, 3
Ted L. Wadzinski
Assistant Vice President -
Gas Operations
Age 55
Years of Service, 8
1. Officers of MGE Energy and MGE. All others are MGE officers.
Note: Ages and years of service as of Dec. 31, 2019.
15
Shareholder information
2020 Expected Record and Dividend Payment Dates
MGEE Common Stock
Record Dates
March 1
June 1
Sept. 1
Dec. 1
Payment Dates
March 15
June 15
Sept. 15
Dec. 15
Direct Stock Purchase and Dividend Reinvestment Plan
The Direct Stock Purchase and Dividend Reinvestment Plan
provides a low-cost alternative to traditional retail brokerage
methods of purchasing, holding and selling MGE Energy, Inc.,
Common Stock.
To review the Prospectus and to enroll, visit
computershare.com/mgee or contact Computershare
to request an enrollment package. This is not an offer to sell
or a solicitation to buy any securities. Any stock offering will
be made by Prospectus only.
Materials Available
More financial information is available upon request or on our
website, mgeenergy.com, including the Direct Stock Purchase
and Dividend Reinvestment Plan.
Sign Up For Electronic Delivery
You may choose to receive email alerts when annual meeting
invitations, proxy materials, the annual report and newsletters are
available on our website. Shareholders can sign up by visiting
mgeenergy.com/paperless.
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
Corporate Responsibility
MGE Energy is committed to being a responsible corporate
citizen in meeting the needs and interests of our customers,
shareholders and community.
Our Board provides oversight with respect to the company’s
long-term strategic plans and business initiatives; environmental
and sustainability performance; enterprise-wide risk assessment
and management; major capital projects and investments,
new technologies, and industry changes; and fiscal and
budget matters.
Visit mgeenergy.com/corpgov for more information.
2020 Annual Shareholder Meeting
Tuesday, May 19, 2020
Madison Marriott West
1313 John Q. Hammons Drive
Middleton, Wis.
Stock Listing
• MGE Energy common stock trades on The Nasdaq
Stock Market®
• Stock symbol: MGEE
• Listed in newspaper stock tables as MGE
Shareholder Account Information
Please notify us promptly if:
• A stock certificate is lost or stolen.
• A dividend check or statement is not received within
10 days of the scheduled payment date.
• Your name or address changes.
Online Account Access
MGE Energy’s transfer agent, Computershare, provides registered
shareholders with secure online account access. Shareholders
may view share balances, account statements, tax documents
and market value as well as perform various transactions.
Visit computershare.com/mgee for more information.
To contact Computershare by mail:
MGE Energy Shareholder Services
c/o Computershare Trust Company, N.A.
PO Box 505005
Louisville KY 40233-5005
For overnight delivery:
MGE Energy Shareholder Services
c/o Computershare Trust Company, N.A.
462 South 4th Street, Suite 1600
Louisville KY 40202
By email:
web.queries@computershare.com
By phone:
Toll-free: (800) 356-6423
Madison area: (608) 252-4744
MGE Energy Online
Registered shareholders also can access their account
information by visiting the MGE Energy website. Go to
mgeenergy.com and click the Shareholder Login link.
MGE Energy Shareholder Services
Madison-based staff are available to assist shareholders in
person at our corporate headquarters by appointment between
the hours of 9:00 a.m. and 4:00 p.m. (CT) Monday through Friday.
We are located at 623 Railroad St. in Madison, Wis.
16
Corporate profile
MGE Energy, Inc.
MGE Energy is the parent company of
Madison Gas and Electric Co. (MGE) and its
divisions, which serve natural gas and
electric customers in south-central and
western Wisconsin.
MGE Transco Investment, LLC, holds an
ownership interest in ATC, LLC, which invests
in
transmission assets, primarily
within Wisconsin.
MGEE Transco, LLC, holds an ownership
interest in ATC Holdco, which invests in
transmission assets outside ATC, LLC,
service territory.
MGE Power, LLC, owns assets in the West
Campus Cogeneration Facility at Madison,
Wis., and the Elm Road Generating Station
at Oak Creek, Wis.
MAGAEL, LLC, holds title to properties
acquired for future utility plant expansion.
Central Wisconsin Development Corp.
promotes business growth in MGE’s
service area.
North Mendota Energy & Technology Park,
LLC, owns property and serves as the
development entity for the property.
MGE Services, LLC, provides construction
and other services.
Learn more at mgeenergy.com
Madison Gas and
Electric Company
MGE Transco
Investment, LLC
MGEE Transco, LLC
MGE Power, LLC
MAGAEL, LLC
Central Wisconsin
Development
Corporation
MGE Services, LLC
MGE Power
West Campus, LLC
MGE Power
Elm Road, LLC
North Mendota
Energy & Technology
Park, LLC
MGE Natural Gas Services
Purchase and Distribution
Customers: 163,000
Population: 458,000
Area: 1,684 square miles
Counties served: Columbia, Crawford, Dane,
Iowa, Juneau, Monroe and Vernon
MGE Electric Services
Generation and Distribution
Customers: 155,000
Population: 331,000
Area: 264 square miles
Communities served: Cross Plains, Fitchburg,
Madison, Maple Bluff, McFarland, Middleton,
Monona and Shorewood Hills
Generating facilities: Blount Generating
Station, West Campus Cogeneration Facility,
Shared Solar at Middleton, solar units and
combustion turbines at Madison, natural gas
combustion turbine at Marinette, Rosiere
Wind Farm in Kewaunee County, Two
Creeks Solar in Manitowoc County (under
construction), Forward Energy Center wind
farm in Dodge and Fond du Lac counties,
Columbia Energy Center at Portage, Elm
Road Generating Station at Oak Creek, Top
of Iowa Wind Farm in north-central Iowa,
Saratoga Wind Farm in northeast Iowa and
Badger Hollow Solar Farm in Iowa County
(under construction)
Learn more at mge.com
Building your
community energy
company for the future.
Learn more at mgeenergy.com
P.O. Box 1231
Madison, WI 53701-1231
MGE is committed to environmental stewardship. This report is printed on recycled paper.