Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Estimated Fair Market Value of Financial Instruments

The estimated fair market value of financial instruments are as follows:

	December 31, 2024				December 31, 2023
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt(a)	$	773,400	$	698,765	$	728,546	$	675,922

(a)Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $4.4 million and $4.6 million as of December 31, 2024 and 2023, respectively.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis.

	Fair Value as of December 31, 2024
(In thousands)	Total		Level 1		Level 2		Level 3
MGE Energy
Assets:
Derivatives, net(b)	$	1,321	$	987	$	—	$	334
Liabilities:
Derivatives, net(b)	$	1,261	$	480	$	—	$	781
Deferred compensation		6,468		—		6,468		—
Total Liabilities	$	7,729	$	480	$	6,468	$	781
MGE
Assets:
Derivatives, net(b)	$	1,321	$	987	$	—	$	334
Liabilities:
Derivatives, net(b)	$	1,261	$	480	$	—	$	781
Deferred compensation		6,468		—		6,468		—
Total Liabilities	$	7,729	$	480	$	6,468	$	781

	Fair Value as of December 31, 2023
(In thousands)	Total		Level 1		Level 2		Level 3
MGE Energy
Assets:
Derivatives, net(b)	$	598	$	352	$	—	$	246
Exchange-traded investments		2,034		2,034		—		—
Total Assets	$	2,632	$	2,386	$	—	$	246
Liabilities:
Derivatives, net(b)	$	5,824	$	2,974	$	—	$	2,850
Deferred compensation		5,246		—		5,246		—
Total Liabilities	$	11,070	$	2,974	$	5,246	$	2,850
MGE
Assets:
Derivatives, net(b)	$	598	$	352	$	—	$	246
Exchange-traded investments		60		60		—		—
Total Assets	$	658	$	412	$	—	$	246
Liabilities:
Derivatives, net(b)	$	5,824	$	2,974	$	—	$	2,850
Deferred compensation		5,246		—		5,246		—
Total Liabilities	$	11,070	$	2,974	$	5,246	$	2,850

(b)As of December 31, 2024, and 2023, collateral of less than $0.1 million and $5.4 million, respectively, was posted against and netted with derivative liability positions on the consolidated balance sheets. The fair value of the derivative liability disclosed in this table has not been reduced for the collateral posted.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes the changes in Level 3 commodity derivative assets and liabilities measured at fair value on a recurring basis.

(In thousands)	2024			2023			2022
Balance as of January 1,	$	(2,604	)	$	(866	)	$	178
Realized and unrealized gains (losses):
Included in regulatory assets		—			(1,738	)		(1,044	)
Included in regulatory liability		2,159			—			—
Included in earnings		(6,209	)		(9,211	)		14,140
Included in current assets		—			—			118
Purchases		—			—			11,997
Settlements		6,207			9,211			(26,255	)
Balance as of December 31,	$	(447	)	$	(2,604	)	$	(866	)

Gains and Losses Included in Income for Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis (c).

(In thousands)
Year Ended December 31,	2024			2023			2022
Purchased power expense	$	(6,209	)	$	(9,211	)	$	14,497
Cost of gas sold expense		—			—			(357	)
Total	$	(6,209	)	$	(9,211	)	$	14,140

(c)MGE's exchange-traded derivative contracts, over-the-counter party transactions, purchased power agreement, and FTRs are subject to regulatory deferral. These derivatives are therefore marked to fair value and are offset in the financial statements with a corresponding regulatory asset or liability.