Derivative and Hedging Instruments (Tables)

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Gross Notional Volume of Open Derivatives

The gross notional volume of open derivatives is as follows:

	March 31, 2025			December 31, 2024
Commodity derivative contracts		320,880	MWh		307,640	MWh
Commodity derivative contracts		2,642,500	Dth		6,285,000	Dth
FTRs		787	MW		2,131	MW

Fair Value of Derivative Instruments on the Balance Sheet

The following table summarizes the fair value of the derivative instruments on the consolidated balance sheets. All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, instruments are netted with the same counterparty under a master netting agreement as well as the netting of collateral.

	Derivative		Derivative
(In thousands)	Assets		Liabilities		Balance Sheet Location
March 31, 2025
Commodity derivative contracts(a)	$	1,995	$	261	Other current assets
Commodity derivative contracts(a)		302		43	Other deferred charges
FTRs		—		133	Other current liabilities
December 31, 2024
Commodity derivative contracts(a)	$	927	$	1,121	Other current liabilities
Commodity derivative contracts(a)		286		140	Other deferred liabilities and other
FTRs		108		—	Other current assets

(a)As of March 31, 2025, MGE received collateral of $2.0 million from counterparties under a master netting agreement for outstanding exchange traded derivative positions on the consolidated balance sheets. As of December 31, 2024, collateral of less than $0.1 million was posted against and netted with derivative liability positions. The fair value of the derivatives disclosed in this table has not been adjusted for the collateral posted.

Offsetting Assets

The following table shows the effect of netting arrangements for recognized derivative assets and liabilities that are subject to a master netting arrangement or similar arrangement on the consolidated balance sheets.

Offsetting of Derivative Assets and Liabilities

(In thousands)	Gross Amounts		Gross Amounts Offset in Balance Sheets			Collateral Posted Against Derivative Positions			Net Amount Presented in Balance Sheets
March 31, 2025
Assets
Commodity derivative contracts	$	2,297	$	(2,297	)	$	—		$	—
Liabilities
FTRs		133		—			(133	)		—
Commodity derivative contracts		304		(2,297	)		1,993			—
December 31, 2024
Assets
Commodity derivative contracts	$	1,213	$	(1,213	)	$	—		$	—
FTRs		108		—			—			108
Liabilities
Commodity derivative contracts		1,261		(1,213	)		(48	)		—

Offsetting Liabilities

The following table shows the effect of netting arrangements for recognized derivative assets and liabilities that are subject to a master netting arrangement or similar arrangement on the consolidated balance sheets.

Offsetting of Derivative Assets and Liabilities

(In thousands)	Gross Amounts		Gross Amounts Offset in Balance Sheets			Collateral Posted Against Derivative Positions			Net Amount Presented in Balance Sheets
March 31, 2025
Assets
Commodity derivative contracts	$	2,297	$	(2,297	)	$	—		$	—
Liabilities
FTRs		133		—			(133	)		—
Commodity derivative contracts		304		(2,297	)		1,993			—
December 31, 2024
Assets
Commodity derivative contracts	$	1,213	$	(1,213	)	$	—		$	—
FTRs		108		—			—			108
Liabilities
Commodity derivative contracts		1,261		(1,213	)		(48	)		—

Derivative Gains and Losses in Balance Sheet

The following tables summarize the unrealized and realized gains/losses related to the derivative instruments on the consolidated balance sheets and the consolidated statements of income.

	2025						2024
(In thousands)	Current and Long-Term Regulatory Asset (Liability)			Other Current Assets			Current and Long-Term Regulatory Asset (Liability)			Other Current Assets
Three Months Ended March 31:
Balance as of January 1,	$	(60	)	$	388		$	5,226		$	1,569
Unrealized loss (gain)		(1,756	)		—			2,140			—
Realized (loss) gain reclassified to a deferred account		551			(551	)		(2,157	)		2,157
Realized (loss) gain reclassified to income statement		(595	)		241			(2,200	)		(3,451	)
Balance as of March 31,	$	(1,860	)	$	78		$	3,009		$	275

Derivative Gains and Losses in Income Statement

	Realized Losses (Gains)
	2025					2024
(In thousands)	Fuel for Electric Generation/ Purchased Power		Cost of Gas Sold			Fuel for Electric Generation/ Purchased Power			Cost of Gas Sold
Three Months Ended March 31:
Commodity derivative contracts	$	398	$	(203	)	$	2,426		$	3,265
FTRs		159		—			(40	)		—