Powering
forward
sustainably
Building your community energy
company for the future.
RESPONSIBILITY
RELIABILITY
RESILIENCY
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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.
2020 Annual Report
Delivering a cleaner,
more advanced grid
Bringing new technologies
to all customers
Meeting the needs of
our community in a
digital world
Fostering sustainable
communities
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 $2.3 billion.
In 2020, revenue was approximately
$539 million. See the Corporate Profile
on the inside back cover.
1. 2020 highlights
2. Letter to our shareholders
6. Utility as conductor
8. Innovation to grow
sustainability
10. Technology to enhance
the customer experience
12. Partnerships to build a
brighter future
14. Corporate leadership
16. Shareholder information
Financials: Form 10-K
ABOUT THE COVER
With a commitment to deep carbon
reductions, Madison Gas and Electric
(MGE) is investing in cost-effective,
cleaner energy sources to benefit
all customers while maintaining
its responsibility to provide a
safe, reliable and resilient grid. As
conductor of the grid, MGE manages
an increasingly smart and dynamic
system, capable of serving a vibrant,
diverse and strong community.
P OWER I NG F OR WAR D SUSTAI NABLY
Corporate PROFILE
MGE ENERGY (MGEE)
Year at a Glance
(Thousands, except per share amounts and shares outstanding)
2020
2019
Increase/
(Decrease)
Madison Gas and
Electric Company
Total Market Value (Dec. 31)
MGE Transco
Investment, LLC
Market Price Per Share (Dec. 31)
Book Value Per Share
Average Shares Outstanding
MGEE Transco, LLC
$ 2,532,521
MGE Power, LLC
$ 2,732,561
MAGAEL, LLC
$
70.03
$
78.82
27.41
$
MGE Power
West Campus, LLC
35,611,936
24.68
$
MGE Power
Elm Road, LLC
34,668,370
$
$
Operating Revenues
MGE ENERGY, INC.
Shares Outstanding at Year-End
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.
Net Income
Dividends Declared Per Share
Basic and Diluted Earnings Per Share
MGE Transco Investment, LLC, holds an
ownership interest in ATC, LLC, which
invests in transmission assets, primarily
Dividend Payout Ratio
within Wisconsin.
Total Assets
36,163,370
34,668,370
MGEE Transco, LLC, holds an ownership
568,855
interest in ATC Holdco, which invests in
transmission assets outside ATC, LLC,
service territory.
538,633
92,418
86,874
$
$
$
$
$
$
2.60
MGE Power, LLC, owns assets in the
West Campus Cogeneration Facility
1.45
at Madison, Wis., and the Elm Road
Generating Station at Oak Creek, Wis.
$
$
2.51
1.38
55.8%
55.0%
MAGAEL, LLC, holds title to properties
$ 2,081,664
acquired for future utility plant expansion.
$ 2,253,651
$ (200,040)
Central Wisconsin
Development
Corporation
(8.79)
North Mendota
2.73
Energy & Technology
Park, LLC
943,566
1,495,000
% Change
-7.3
MGE Services, LLC
-11.2
11.1
2.7
4.3
$
Central Wisconsin Development Corp.
promotes business growth in MGE’s
service area.
(30,222)
-5.3
$
5,544
6.4
North Mendota Energy & Technology
Park, LLC, owns property and serves as
the development entity for the property.
0.09
3.6
$
$
0.07
MGE Services, LLC, provides
0.8%
1.5
construction and other services.
5.1
Learn more at mgeenergy.com.
$ 171,987
8.3
(20,404)
-3.5
-7.0
Total Retail Electric Sales (kWh)
3,100,968
3,213,882
(112,914)
MGE ELECTRIC SERVICES
Total Gas Deliveries (therms)
Generation and Distribution
Customers: 157,000
Population: 334,000
Area: 264 square miles
For detailed financial information, see the 2020 MGE Energy Form 10-K.
291,786
271,382
MGE NATURAL GAS SERVICES
Purchase and Distribution
Customers: 166,000
Population: 463,000
Area: 1,684 square miles
Earnings Per Share
(2016–2020)
Communities served: Cross Plains, Fitchburg,
Madison, Maple Bluff, McFarland, Middleton,
Monona and Shorewood Hills
$2.43
$250,000
$2.82*
$2.60
$2.51
$2.18
$200,000
Generating facilities: Blount Generating Station,
West Campus Cogeneration Facility, Shared
Solar at Middleton, Renewable Energy Rider
solar (including Dane County Airport Solar and
Morey Field Solar), solar units and combustion
$150,000
turbines in the Madison area, natural gas
combustion turbine at Marinette, Rosiere Wind
Farm in Kewaunee County, Two Creeks Solar
$100,000
in Manitowoc County, Forward Energy Center
wind farm in Dodge and Fond du Lac counties,
Columbia Energy Center at Portage, Elm Road
$50,000
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)
* Includes one-time tax benefit of 62 cents
per share due to tax act.
Learn more at mge.com.
2020
2018
2019
2017
0
2016
Counties served: Columbia, Crawford, Dane, Iowa,
Juneau, Monroe and Vernon
Capital Expenditures
(in millions)
$212
$203
$202
$164
Forecasted
$209
$175
$108
$93
$84
$72
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
1
RELIABILITY RESILIENCYMGE Energy 2020 ANNUAL REPORTRESPONSIBILITY
P OWER I NG F O R WAR D SUSTAI N ABLY
Letter TO OUR SHAREHOLDERS
We are creating value by cost-effectively transitioning to new technologies for the benefit of all.
“
MGE continues to serve
as your community energy
company, delivering on our
commitment to provide
safe, reliable energy and
greater sustainability
for a strong future.”
Chairman, President and CEO Jeff Keebler at his home where he records weekly video messages to keep MGE employees informed
throughout the pandemic on important matters, including the company’s response to COVID-19, which shifted many MGE employees
to a remote work environment and created new safety procedures for field and operations employees.
Our regulated utility subsidiary, Madison Gas and Electric
(MGE), is powering forward—sustainably. We continue to
deliver on our commitment to grow our use of cost-effective,
clean energy for the benefit of all we serve while maintaining
our obligation to provide safe, reliable energy.
The year 2020 was unlike any other. A global pandemic
altered nearly every aspect of daily life. Your community
energy company continues to meet its responsibility as a
critical services provider and community partner, bolstering
the resiliency of our communities by working with our
customers and supporting our employees throughout an
unprecedented period in recent history.
By working together, we are meeting the challenges of a
“new normal” and working toward our shared energy goals,
building clean energy generation and launching innovative
programs to create long-term value for customers and
investors. Consistent with the latest climate science, MGE
is on a pathway to achieve our goal of net-zero carbon
Powering Forward Sustainably
2
Dividends Per Share ($)
4 . 6 % C A G R *
$1.26
$1.32
$1.45
$1.38
$1.16
$1.21
Cumulative Total Return
(assumes $1,000 investment on
12/31/15 with dividends reinvested)
$1,675
$509
Stock Price
Appreciation
$1,000
$166
Dividend
Appreciation
$1,000
Initial
Investment
$1.60
$1.20
$0.80
$0.40
0
12/31/15
12/31/20
2015
2016
2017
2018
2019
2020
*Compound Annual Growth Rate
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+
electricity by 2050, pursuing globally
recognized deep decarbonization
strategies to reach our ambitious goal
as quickly and as cost-effectively as
we can.
In November 2015, MGE introduced
its Energy 2030 framework, which
established clean energy goals and
foundational objectives for working
with our customers to build your
community energy company for the
future. Energy 2030 continues to
guide our work for building consistent,
long-term value.
CONSISTENT FINANCIAL
PERFORMANCE
Your Board of Directors understands
the importance of dividend growth
to our loyal shareholders. In 2020,
your board increased the annual
dividends paid per share by more
than 5% to $1.45. In the last five years,
shareholders have seen a compound
annual growth rate (CAGR) in
dividends of nearly 5%.
MGE Energy has increased the
dividend for 45 consecutive years and
paid dividends for more than 110 years.
The financial publisher Mergent
continues to recognize MGE Energy
as a “Dividend Achiever.”
Value Line also gives MGE Energy top
marks for investment safety and its
highest grades for financial strength.
Many shareholders elect to
reinvest their dividends to grow
their investment. One indicator of
investment performance, total return
is the combination of reinvested
dividends and stock price appreciation.
In November, MGE Energy was
awarded the Edison Electric Institute
(EEI) Index Award in the Small-
Capitalization category. The annual
award for investor-owned electric
utilities is presented to EEI member
companies that have achieved the
highest total shareholder return in
their categories for the five-year period
ending Sept. 30, 2020.
Taking a look at the last five years,
MGE Energy’s annualized total return
was almost 11%. A $1,000 investment in
MGE Energy, with dividends reinvested,
would have grown to $1,675 during the
five years ending Dec. 31, 2020.
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.
3
For 2020, we reported earnings of
$92.4 million, or $2.60 per share,
compared to $86.9 million, or $2.51
per share, for 2019. The increase was
primarily due to Allowance for Funds
Used During Construction (AFUDC)
equity earned from the construction
of Two Creeks Solar and the Badger
Hollow Solar Farm, phases I and II, and
savings in operating and maintenance
costs. AFUDC equity for the Two
Creeks and Badger Hollow I and II
solar projects increased $3.3 million
compared to the prior year.
The COVID-19 pandemic and
associated governmental regulations
led to a reduction of retail sales.
Electric commercial retail sales
dropped approximately 7% in 2020
compared to the prior year; however,
ongoing remote work arrangements
contributed to higher electric
residential sales, which partially
mitigated the impacts of COVID-19.
Electric residential sales increased by
approximately 6% compared to 2019.
MANAGING OUR RESPONSE
TO COVID-19
At the outset of the pandemic, MGE
activated our Incident Command
Structure to ensure business continuity
and to provide for the safety and
protection of our employees, customers
and community. Employees who
could work remotely were instructed
to work from home. Additional safety
measures were taken at our facilities
in accordance with public health
guidance and regulations, and personal
protective equipment was provided
to field personnel and operations
employees. Field employee schedules
and reporting sites also were adjusted
to reduce our collective exposure.
Safety is always our first priority.
Additional safety measures were taken
during the COVID-19 pandemic to protect
employees and customers and to maintain
MGE’s top-ranked electric reliability as
many of our customers were working or
learning remotely.
As your community energy company,
MGE also worked to address the
concerns of customers, many of whom
were experiencing hardship. We
communicated in multiple languages to
our diverse community last spring that
we were not disconnecting customers
for nonpayment or assessing late fees.
Our marketing teams reached out
early to our community partners and
assistance agencies to let them know
MGE was accessible
and ready to help in the
community’s response to
COVID-19.
MOVING TOWARD
NET-ZERO CARBON
ELECTRICITY
In November, the University of
Wisconsin-Madison’s Nelson
Institute for Environmental
Studies released its analysis
of MGE’s goal of net-zero
carbon electricity by 2050. The study
determined our goal is aggressive and
is consistent with the latest climate
science to limit global warming to
1.5 degrees Celsius to prevent the most
severe impacts of climate change. MGE
expects to achieve carbon reductions
of at least 65% by 2030, which also
is consistent with the pathways
identified by the science and by the
UW’s analysis. We have said since
introducing our carbon reduction
goals that if we can go further faster
through our work with customers and
the evolution of new technologies,
we will. Our goals signal our direction
but do not determine our pace. MGE
is committed to aggressive carbon
reductions in pursuit of net-zero
carbon electricity.
MGE took another step in its ongoing
transition away from coal in early
February 2021 when it announced
plans to retire the coal-fired Columbia
Energy Center ahead of schedule.
Under the proposal, subject to
regulatory and other approvals,
Columbia’s Units 1 and 2 will be
retired by the end of 2023 and 2024,
respectively. As a minority owner of the
plant, MGE accelerated depreciation of
Unit 1 in 2018, signaling the company’s
belief that cost savings could be
achieved through early retirement of
the units.
Powering Forward Sustainably
4
Our philanthropic arm, the MGE
Foundation, contributed to local
relief efforts, including those of
Second Harvest Foodbank of
Southern Wisconsin. The nonprofit
estimates it distributed 56% more
pounds of food last year, since the
start of the pandemic, compared
to 2019. Many of the more than
610,000 boxes of food distributed
in 2020 were given out through
mobile food pantries like this one at
Aldo Leopold Elementary School in
Madison where masked volunteers
place boxes directly in clients’
vehicles to maintain a safe distance.
MGE is proud to support the work
of Second Harvest and our other
community partners addressing the
impacts of COVID-19.
To achieve deep decarbonization,
we also are engaging customers
in energy efficiency and working
to electrify transportation in many
different ways, some of which we detail
in this report. We continue to grow
our use of clean energy, investing an
MGE is leasing land from Thomas and Patrick O’Brien (center and right, pictured
with their business manager, Jeffrey O’Brien) to build the O’Brien Solar Fields,
a 20-megawatt project in Fitchburg, Wis. The project will serve several large
electric customers, including the City of Fitchburg, the University of Wisconsin,
the Wisconsin Department of Administration and others, under MGE’s Renewable
Energy Rider program.
In December, MGE’s 9-megawatt solar array at
the Dane County Regional Airport came online.
The project, visible from Highway 51, serves Dane
County operations, advancing both MGE’s and the
County’s sustainability goals.
estimated $400 million in renewable
generation by the end of 2022.
Since introducing our Energy 2030
framework in November 2015, we have
announced projects that we expect will
increase our owned renewable capacity
by almost 675% by the end of 2022.
One of those projects is a 20-megawatt
solar array under construction near
the city of Madison. The O’Brien Solar
Fields will serve several large electric
customers, including local businesses
and municipal and state governments,
through Renewable Energy Rider
agreements with MGE. The O’Brien
Solar Fields will be the largest solar
project in Dane County when complete.
This report highlights some of the
ways in which your community energy
company is building a more advanced,
integrated grid, capable of delivering
affordable renewable energy, powering
a new era in cleaner transportation
and engaging all customers in new
technologies to share in creating a
more sustainable future.
We continue to work to ensure all
our diverse customers experience
MGE as “their” community energy
company. Meeting our customers
“where they are” remains at the core
of our mission to serve inclusively and
reflects our commitment to meaningful
engagement.
Executive Vice
President Jeff
Newman retired
in December 2020
after more than
35 years of service.
In August, as part of transition planning
for the end-of-year retirement of
Executive Vice President Jeff Newman,
your Board of Directors appointed
Jared Bushek to serve as Chief
Financial Officer and elected him
as Treasurer. Tamara Johnson was
appointed to serve as Chief Accounting
Officer and Cari Anne Renlund was
appointed to serve as Secretary. The
5
board also elected Renlund, Johnson
and Bushek officers of MGE Energy
and MGE. In his more than 35 years of
service, Mr. Newman’s leadership has
contributed to our consistent financial
performance, and I wish him well in
his retirement. Through deliberate
and thoughtful succession planning,
MGE Energy is positioned well to
achieve continued success.
In closing, I want to thank our
hundreds of employees who have met
our obligation to provide safe, reliable
gas and electric service during a year
of unprecedented challenges. Our
employees help us succeed every day.
On behalf of the board, thank you
for your confidence and continued
investment in MGE Energy.
Jeffrey M. Keebler
Chairman, President and
Chief Executive Officer
DELIV ER I NG A CLE AN ER , MOR E ADVANCED G R I D
Utility AS CONDUCTOR
Your community energy company operates an evolving electric grid for optimal efficiency.
Daily life is increasingly reliant on
the availability of safe, reliable and
affordable energy. Electricity powers
households and businesses, critical
services like schools and hospitals,
and local to global economies.
New technologies fueling our digital
economy also serve to create a smarter
grid. MGE is at the forefront of this grid
transformation, investing in renewable
energy projects, innovative customer
programs and technologies to deliver
a more integrated grid.
Historically, power flows have been
one direction on the electric grid, from
power plants to customers. Today’s grid
features many sources, from power
plants to utility-scale wind and solar
to local, distributed solar panels. In
addition, new technologies, such as
smart thermostats, battery storage and
electric vehicle (EV) charging stations,
also are able to interact with the
electric grid. MGE, as the utility, serves
as the “conductor” of the distribution
grid, building, managing and balancing
the system to ensure its safety,
reliability, security and efficiency.
“
A more complex grid
demands a conductor.
MGE, as the utility,
fills that role by
managing a dynamic
grid to provide seamless,
sustainable energy—and
customer value.
—Jeff Keebler
”
Decarbonizing our grid
Southwest of the city of Madison, Wisconsin’s largest utility-
scale solar project is under construction. MGE is investing about
$130 million to own one-third of the massive 300-megawatt (MW)
project in Iowa County.
Our 100-MW share will serve all MGE electric customers with cost-
effective, zero-emissions energy for decades to come. The first
50-MW phase of Badger Hollow is expected online in spring 2021.
In addition to our investment at Badger Hollow, MGE also has
invested in the 150-MW Two Creeks Solar project in northeastern
Wisconsin. Our 50-MW share serves all MGE electric customers.
Unlike other sources of energy generation, solar energy has zero
fuel costs, which helps to manage costs to customers. These
projects are another step toward net-zero carbon electricity
to benefit all customers.
Electrifying our future
MGE continues to grow EV charging
on our community grid. In 2020, the
City of Madison approved MGE’s
EV Charging Hub in the heart of the
city’s Capitol East District.
The electrification of transportation
is one of our key strategies to achieve
deep decarbonization. Transportation
is a leading contributor of greenhouse
gas emissions, both locally and
nationally.
The EV Charging Hub will be one
of the first of its kind in Wisconsin
and will feature some of the fastest
charging stations in the Midwest.
The Hub’s DC fast-charging stations
will enable a full charge in as little as
20 minutes. Located along the East
Washington Avenue corridor, the Hub
will serve nearby apartment dwellers
and single-family households,
commuters, and taxicab and ride-
hailing services that travel the
downtown gateway.
Fast, convenient and green—all
of MGE’s public charging stations
are powered by clean
energy. The
Hub will help
enable the
broader
adoption of
EVs, which
continue to
grow in variety
and popularity. It
is another example of
how MGE works with local partners
to advance new technologies for
the benefit of all customers and in
pursuit of our carbon reduction goals.
A Smart Grid with Two-Way Power Flows
MGE oversees an increasingly digitally connected grid where various
technologies work together as a system for optimal performance and value.
AN INTEGRATED GRID ADVANCES
SHARED ENERGY GOALS
Today’s more complex grid also is
becoming more sustainable with
cost-effective, carbon-free energy
sources. In the role of conductor, MGE
is responsible for ensuring all energy
supply resources on the system work
together. Customer load and energy
supply must be balanced at all times.
As they fluctuate in real time, MGE
manages the grid to ensure reliability
and efficiency.
In February 2021, MGE announced
plans to purchase 20 megawatts (MW)
of solar and 11 MW of battery storage
from the Paris Solar-Battery Park
in Kenosha County. The project,
if approved, will help MGE meet
future energy and capacity needs
cost-effectively as the company
continues its ongoing transition away
from coal-fired electricity with the
planned retirement of the Columbia
Energy Center.
MGE partners with customers in
managing the grid as a shared
resource. Demand-side technologies,
such as smart thermostats and EV
charging stations, give MGE the ability
to manage electricity demand during
peak periods. Peaks occur when
everyone is using higher amounts
of electricity. If MGE is able to shift
energy use to periods when fewer
customers are using energy, we can
better manage the system and costs
for all customers.
MGE Connect® is our smart
thermostat program. Participating
customers allow MGE to adjust
their residential thermostats during
the hottest stretches of the year
to help reduce peak demand with
little to no impact on comfort. The
growth of smart technologies, as
part of an integrated grid, will help
MGE to better balance demand
and energy supply at all times. By
managing demand, through smart
thermostats, EV charging and
other emerging technologies,
we can optimize the use of our
energy supply resources to
most cost-effectively meet
customers’ needs.
MGE Connect is one
way MGE is using new technologies
to help manage our collective use
of energy, a foundational objective
under our Energy 2030 framework.
It also is an example of how MGE,
as conductor, is adding value to the
grid for the benefit of both customers
individually and collectively.
Powering Forward Sustainably
6
7
BR I NG I NG N E W TECH N OLOG I E S TO ALL CUSTOM ER S
Innovation TO GROW SUSTAINABILIT Y
We are working to ensure all customers share in the benefits of new technology.
Assistant Housing Manager Michelle Schwartz (left) stands outside of Romnes Apartments with
Heather Allen, executive director of RENEW Wisconsin, and Cheri Salmon, MGE manager of new
products and services. The public housing complex is served by MGE’s Shared Solar program under
a partnership between the City of Madison, RENEW and MGE.
Michelle Schwartz knows many of the longtime senior
residents at the 168-unit Romnes Apartments on the city
of Madison’s south side. Schwartz works out of the public
housing complex as an assistant housing manager for the
City’s Community Development Authority (CDA).
Under a new partnership, Schwartz’s office and the one-
bedroom apartments at Romnes are powered, in part, by
renewable energy through MGE’s Shared Solar program. The
optional program expanded in 2020 with a new 5-megawatt
array at the Middleton Municipal Airport. Seventy percent of
the Morey Field Solar array serves the Shared Solar program,
which gives residential and small business customers the
opportunity to power their household or business with
affordable local solar from MGE.
The CDA’s partnership with MGE was made possible by a
grant from RENEW Wisconsin, a Madison-based nonprofit
dedicated to growing renewable energy in the Badger State.
RENEW is covering the upfront cost of participation in Shared
Solar for two CDA properties, the Romnes Apartments and
Karabis Apartments, a 20-unit complex on the city’s south
side that serves residents with physical disabilities. The CDA
will cover any additional costs of participation and will realize
long-term savings with a stable price per kilowatt-hour. The
public-private partnership advances both MGE’s and the
City of Madison’s sustainability goals.
It’s also an extension of MGE’s ongoing collaboration with
the City of Madison. In 2020, MGE worked with the City’s
Metro Transit (Metro) to coordinate installation of charging
stations for three new all-electric buses. The zero-emission
buses will help the City achieve its goal of net-zero carbon
for City operations by 2030. Metro purchased the buses
with funding from a $1.3 million federal grant. In support of
the grant application, MGE pledged 100% of the required
local matching funds for the charging infrastructure and continued in-kind
support and expertise.
According to the City, its fleet operations and Metro buses combined
account for roughly one-third of the City’s carbon emissions. The
battery-powered buses will help to reduce the City’s carbon footprint as
well as its fuel and fleet maintenance costs, leading to benefits for the
broader community.
More than a decade ago, MGE began installing solar arrays across
the community. These technology demonstration projects enabled our
customers to see solar technology up close and helped us to learn how the
panels performed in our climate. With that experience, we continue to make
today’s improved solar technology a greater part of our energy supply mix.
We are launching a new technology demonstration project featuring
battery storage in collaboration with the Electric Power Research Institute
and residential electric customers. Several homeowners who have a solar
photovoltaic system have a battery installed outside their home. Their
rooftop solar system charges the battery, which will be used during periods
of peak demand and as a backup source of power for the household. Our
experience with this evolving technology will help us better understand how
batteries could help control long-term costs by managing our collective use
of energy and provide enhanced reliability as we transition to greater use of
renewable resources.
The comfort of home
In 2020, the COVID-19 pandemic put a special focus on the importance
of the comforts of home. The team at the Madison nonprofit Project
Home specializes in improving housing for lower- to moderate-
income households, including those of military veterans. Through its
weatherization program, Project Home helps to provide energy-saving
improvements to households that qualify for energy assistance.
Residential Services Manager Laura Paprocki works with our community
partners to bring new technologies to all customers. Having worked with
FOCUS ON ENERGY® to secure smart thermostats for limited-income
households, Paprocki partnered with Project Home to coordinate
installation of the devices in eligible households. Smart thermostats
make saving energy almost effortless but require installation, a Wi-Fi
connection and some instruction to get set up.
Paprocki and Project Home developed a way to make the devices
available to customers receiving new furnaces and weatherization
services. One of those customers was a Gulf War Army veteran and
father of two on Madison’s west side who is thankful his children now
have a more comfortable and efficient home.
Powering Forward Sustainably
8
9
The residential battery, installed on the exterior
of the home, is charged by the home’s rooftop
solar system. The project will help MGE better
understand how battery technology could be used
to manage peak demand and to enhance reliability.
“
This technology
demonstration project
will help us understand
how batteries could
help to manage
costs in the future.
—Cheri Salmon ”
Project Home Outreach Manager Jason Hafeman
and MGE Residential Services Manager Laura
Paprocki teamed up to coordinate installation
of smart thermostats in households across the
community, like this one on Madison’s west side.
M EE TI NG TH E N EEDS OF O U R C O M M U N I T Y I N A DI G I TAL WOR LD
Technology TO ENHANCE THE CUSTOMER E XPERIENCE
Your community energy company is equipped to serve, connect and engage in new, innovative ways.
A new digital solution for
the efficient scheduling
and fulfillment of work
orders in the field, such
as those addressed by
MGE Service Technician
Colin Romenesko,
will improve both the
customer and employee
experience by providing
customer service
representatives and
other office employees
with near real-time
updates from the field.
A digital transformation is underway
at MGE. We are halfway through
Enterprise Forward, our five-year
company-wide initiative to modernize
a number of internal systems.
Colin Romenesko is a service
technician in MGE’s Meter and
Connection (M&C) department.
He helps to maintain the safety and
reliability of our gas and electric
service distribution systems.
Under Enterprise Forward, Romenesko
and the team in M&C are transitioning
to mobile devices for managing
schedules for and fulfillment of work
orders. Our new digital solution for
mobile work management will increase
operational efficiency as well as the
accessibility and visibility of service-
related information, improving both the
employee and customer experience.
As part of MGE’s broader Customer
to Meter system, office employees
will be able to see near real-time
status updates from work in the field.
This means our customer service
representatives will be able to respond
more efficiently and effectively to
customer questions and provide
customers with more up-to-date
information about their service.
Our mobile work management tool for
emergency and routine service work—
for example, gas leak investigations or
meter repairs—is expected to launch
in 2021.
Enterprise Forward is another step
toward building your community
energy company for the future, capable
of delivering new engagement options,
programs, products and services that
add value for our customers.
DEEPENING OUR ENGAGEMENT IN
A NEWLY VIRTUAL WORLD
Engagement with our customers
and community is at the core of our
mission. Throughout the pandemic,
we were steadfast in our commitment
to stay connected with our customers
and local partners, many of whom
were challenged by the impacts
of COVID-19.
MGE Senior Customer Engagement
and Community Development Manager
Mario Garcia Sierra listens, learns
and fosters relationships across our
community to better understand
and serve our increasingly diverse
community. Garcia Sierra also serves
as an MGE energy expert on La
Movida, a Spanish language radio
station in Madison. Garcia Sierra
continued MGE’s long-standing
“Viviendo Con Energía” (Living with
Energy) radio program throughout
the pandemic but joined from his
living room instead of the studio to
answer call-in questions and to provide
information about conservation and
energy assistance.
MGE invests in culturally competent
ways of ensuring all customers
have access to our energy experts,
information and services. MGE partners
with more than 200 local organizations
and community stakeholders to help us
reach all of those we serve in a variety
of ways.
One such organization is the Northside
Planning Council. The nonprofit on the
city of Madison’s north side publishes
a free community newspaper but saw
its advertising revenue dwindle as the
pandemic challenged neighborhood
businesses. The drop-off in financial
support jeopardized the newspaper’s
regular publication schedule.
MGE Senior Community Services
Manager Dave Benforado keeps in
touch with our area’s neighborhood
organizations, longtime partners
of MGE’s in helping to reach our
Senior Customer Engagement
and Community Development
Manager Mario Garcia Sierra
helped produce MGE’s long-
standing Spanish language radio
program from his living room
during the pandemic, instead of La
Movida’s studio, to share important
information with customers.
customers. Understanding the value
of Northside News to the community,
Benforado worked with the council on
a special MGE sponsorship to ensure
the newspaper could continue its
regular schedule and share important
pandemic-related information and
resources for assistance.
Garcia Sierra, Benforado and others
like Cedric Johnson, also in MGE’s
Residential and Community Services
department, often
describe their work as
building relationships with
individuals, organizations
and community leaders.
Through these
relationships, we can
deepen and extend our
reach to our customers,
some of whom may face
language, cultural or other
barriers to service. The
pandemic underscored
the need for these
connections as MGE
teams worked to let
customers know MGE
would work with them.
Powering Forward Sustainably
10
11
“Our team worked to
”
help ease uncertainty
and to provide
referrals for our
customers in need.
—Cedric Johnson
Community Services Managers Cedric Johnson (left)
and Dave Benforado stand outside of the Warner Park
Community Recreation Center on Madison’s north side.
Both build relationships and work with local organizations
and other partners across our community to build bridges to
our customers, helping MGE to better understand and meet
their needs.
F O STER I NG SUSTAI NAB LE C O M M U N I TI E S
Partnerships TO BUILD A BRIGHTER FUTURE
MGE invests in creating a stronger tomorrow for those we serve.
On Madison’s near east side, Stephanie
Waggett is feeling grateful. The five-year-
old small business she co-founded with
her husband is expanding. In late 2020, The
Looking Glass Bakery moved from a shared
kitchen to the Madison Enterprise Center, a
business incubator MGE helped launch more
than 30 years ago and continues to support
today. Waggett received a $7,000 interest-free
loan from Kiva Greater Madison to purchase
equipment for the larger space.
A global nonprofit, Kiva is an online
crowdfunding platform, providing zero
percent interest and zero-fee microloans of
$1,000 to $15,000 to startup business owners
and entrepreneurs. Kiva seeks to grow
business ownership—and opportunity—by
focusing its support for women, people of
color, immigrants, veterans and lower-income
entrepreneurs. Anyone can help finance a
small business anywhere in the world through
Kiva, with lending starting at $25.
Support from the MGE Foundation helped
launch Kiva Greater Madison in 2019. The local
branch has assisted dozens of local business
owners like Waggett. As the pandemic
persisted, Kiva Greater Madison joined forces
with the City of Madison, which committed
$100,000 to a loan-matching program to help
struggling Madison businesses.
Whether it is working together with community
partners to bolster support during an
unprecedented time or enabling emerging
businesses through incubators and microloan
programs, MGE is committed to advancing
a healthy, inclusive local economy that offers
opportunity for all.
Powering Forward Sustainably
12
MGE invests in our communities—and in the next
generation. In summer 2020, MGE hosted our fifth and
first-ever virtual class of Career Ambassadors, a group of
local high school students who spend six weeks with MGE
employees from across the company, learning about the
utility business, related career opportunities and workplace
skills. MGE works with our community partners, including in
2020 the Boys & Girls Club of Dane County, Centro Hispano
of Dane County and 100 Black Men of Madison, Inc.,
to recruit students to participate.
Ashley Valle, a freshman at the University of Wisconsin-
Madison, learned about the program from Centro Hispano
while completing her senior year of high school. She
decided to participate to gain insight into different
career paths.
Valle completed her Career Ambassador program with
experience in business, her area of study, and found a
mentor for her first year in college. A senior in the
UW-Madison’s School of Business, Andrea San Emeterio
helped to facilitate the Career Ambassador program as
an intern in MGE’s Human Resources department. The
two women keep in touch since connecting through MGE.
San Emeterio says, “It was great to see everyone from
different backgrounds come together to explore different
careers in the utility sector.”
“I really enjoyed being part of
”
MGE and getting to experience
firsthand the strong connection
MGE has to the community!
—Andrea San Emeterio
Ashley Valle (left), a freshman at the University of Wisconsin-
Madison, participated in MGE’s fifth and first-ever virtual class
of Career Ambassadors, which was facilitated by UW-Madison
senior and MGE intern Andrea San Emeterio. The two students
continue to connect after meeting through MGE.
With funding from a Kiva microloan to help expand her
business, Stephanie Waggett looks forward to what
the future holds for The Looking Glass Bakery in its
new home, the Madison Enterprise Center, a business
incubator originally launched with support from MGE
that continues today.
Mayor Gurdip Brar (left), Planning and Community
Development Director Abby Attoun and City
Administrator Mike Davis show their support for
Shared Solar and the Morey Field Solar array, which
serves City of Middleton operations under MGE’s
Renewable Energy Rider.
MGE shares our communities’
sustainability goals. In August,
the Morey Field Solar array at
the Middleton Municipal Airport
came online to serve the City of
Middleton and the Middleton-
Cross Plains Area School District
as well as MGE’s community
solar program, Shared Solar.
The array serves the City and
school district under Renewable
Energy Rider agreements with
MGE. The Renewable Energy
Rider gives MGE and our
customers the opportunity to
work cooperatively to grow clean
energy in our community. Under
the program, the customer is
responsible for costs associated
13
with sourcing and distributing the
renewable energy to the business
or organization.
The Morey Field Solar array
will help the City reach its goal
of 100% renewable energy for
City operations by 2040. The
expanded partnership builds
on our collaboration with the
City five years ago to build our
first Shared Solar project at
Middleton’s Municipal Operations
Center and a 100-kilowatt solar
array at the Middleton Police
Department building. That array
provides about 25% of the
electricity used by the building
each year.
P OWER I NG F O R WAR D SUSTAI N ABLY
Corporate LEADERSHIP
Directors of MGE Energy and MGE
Officers 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 63
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 57
Director since 2018
Mark D. Bugher
Retired Director of University
Research Park, University of
Wisconsin-Madison
Age 72
Director since 2010
Londa J. Dewey
Chief Executive Officer of
QTI Management Services,
Inc., a human resources and
staffing company
Age 60
Director since 2008
Jeffrey M. Keebler1
Chairman, President and
Chief Executive Officer
Age 49
Years of Service, 25
Lynn K. Hobbie
Executive Vice President -
Marketing and
Communications
Age 62
Years of Service, 35
Cari Anne Renlund1
Vice President - General
Counsel and Secretary
Age 47
Years of Service, 6
Donald D. Peterson
Vice President -
Energy Technology
Age 61
Years of Service, 38
F. Curtis Hastings
Retired Chairman of
J. H. Findorff & Son, Inc.,
commercial and industrial
general contractors
Age 75
Director since 1999
Jeffrey M. Keebler
Chairman, President and
Chief Executive Officer of
MGE Energy, Inc., and
Madison Gas and Electric Co.
Age 49
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 69
Director since 2009
Thomas R. Stolper
Former Executive Vice
President and Director of
ProActive Solutions USA LLC,
management consultant at
Purple Cow Organics and
formerly at Deibel Laboratories
Age 72
Director since 2008
Jared J. Bushek1
Vice President - Finance,
Chief Information Officer
and Treasurer
Age 40
Years of Service, 10
Tamara J. Johnson1
Vice President -
Accounting and Controller
Age 56
Years of Service, 27
Marshall S. Heyworth
Assistant Vice President -
Human Resources
Age 64
Years of Service, 7
James J. Lorenz
Assistant Vice President -
Electric Operations
Age 54
Years of Service, 33
Gary J. Wolter
Former Chairman, President
and Chief Executive Officer
of MGE Energy, Inc., and
Madison Gas and Electric Co.
Age 66
Director since 2000
Note: Ages as of Dec. 31, 2020.
For detailed information on board members, see the MGE Energy Proxy Statement.
Scott R. Smith
Assistant Vice President -
Business and Regulatory
Strategy
Age 49
Years of Service, 4
Ted L. Wadzinski
Assistant Vice President -
Gas Operations
Age 56
Years of Service, 9
1. Officers of MGE Energy and MGE. All others are MGE officers.
Note: Ages and years of service as of Dec. 31, 2020.
Powering Forward Sustainably
14
15
P OWER I NG F O R WAR D SUSTAI N ABLY
P OWER I NG F OR WAR D SUSTAI NABLY
Shareholder INFORMATION
Corporate PROFILE
2021 ANNUAL SHAREHOLDER MEETING
Tuesday, May 18, 2021
Please see the Proxy Statement for annual meeting information.
2021 EXPECTED RECORD AND DIVIDEND PAYMENT DATES
MGEE Common Stock
Record Dates
Payment Dates
STOCK LISTING
• MGE Energy common stock trades on
The Nasdaq Stock Market®
• Stock symbol: MGEE
• Listed in newspaper stock tables as MGE
TABLE OF CONTENTS
March 1
June 1
Sept. 1
Dec. 1
March 15
June 15
Sept. 15
Dec. 15
SHAREHOLDER ACCOUNT INFORMATION
1. 2020 highlights
Please notify us promptly if:
• A stock certificate is lost or stolen.
• A dividend check or statement is not received within 10 days
2. Letter to our shareholders
of the scheduled payment date.
6. Utility as conductor
• Your name or address changes.
8. Innovation to grow
sustainability
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.
10. Technology to enhance
the customer experience
12. Partnerships to build a
Visit computershare.com/mgee for more information.
brighter future
MGE ENERGY, INC.
DIRECT STOCK PURCHASE AND DIVIDEND REINVESTMENT PLAN
The Direct Stock Purchase and Dividend Reinvestment Plan
MGE Energy is an investor-owned public
provides a low-cost alternative to traditional retail brokerage
utility holding company headquartered
methods of purchasing, holding and selling MGE Energy, Inc.,
in the state capital of Madison, Wis.
Common Stock.
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 $2.3 billion.
In 2020, revenue was approximately
$539 million. See the Corporate Profile
on the inside back cover.
Visit computershare.com/mgee to review the Prospectus and
to enroll, 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.
14. Corporate leadership
To contact Computershare by mail:
MGE Energy Shareholder Services
16. Shareholder information
c/o Computershare Trust Company, N.A.
PO Box 505005
Louisville KY 40233-5005
Financials: Form 10-K
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
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.
MGE ENERGY ONLINE
Visit mgeenergy.com for more information about MGE Energy.
ABOUT THE COVER
With a commitment to deep carbon
reductions, Madison Gas and Electric
(MGE) is investing in cost-effective,
cleaner energy sources to benefit
all customers while maintaining
its responsibility to provide a
safe, reliable and resilient grid. As
conductor of the grid, MGE manages
an increasingly smart and dynamic
system, capable of serving a vibrant,
diverse and strong community.
MGE ENERGY SHAREHOLDER SERVICES
Madison-based staff are available to assist shareholders 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.
In the interest of public health and safety, our offices are
temporarily closed for in-person visits. Please call (608) 252-4744
for assistance.
Powering Forward Sustainably
16
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 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.
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.
MAGAEL, LLC, holds title to properties
acquired for future utility plant expansion.
Learn more at mgeenergy.com.
MGE NATURAL GAS SERVICES
Purchase and Distribution
Customers: 166,000
Population: 463,000
Area: 1,684 square miles
Counties served: Columbia, Crawford, Dane, Iowa,
Juneau, Monroe and Vernon
MGE ELECTRIC SERVICES
Generation and Distribution
Customers: 157,000
Population: 334,000
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, Renewable Energy Rider
solar (including Dane County Airport Solar and
Morey Field Solar), solar units and combustion
turbines in the Madison area, natural gas
combustion turbine at Marinette, Rosiere Wind
Farm in Kewaunee County, Two Creeks Solar
in Manitowoc County, 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.
MGE Energy 2020 ANNUAL REPORTRESPONSIBILITY Building your community energy
company for the future.
Powering
forward
sustainably
RESPONSIBILITY
RELIABILITY
RESILIENCY
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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.
2020 Annual Report
Delivering a cleaner,
more advanced grid
Bringing new technologies
to all customers
Meeting the needs of
our community in a
digital world
Fostering sustainable
communities