Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Estimated Fair Market Value of Financial Instruments

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

	March 31, 2025				December 31, 2024
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt(a)	$	772,092	$	713,569	$	773,400	$	698,765

(a)Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $4.3 million and $4.4 million as of March 31, 2025, and December 31, 2024, 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 for both MGE and MGE Energy.

	Fair Value as of March 31, 2025
(In thousands)	Total		Level 1		Level 2		Level 3
Assets:
Derivatives, net(b)	$	2,297	$	1,505	$	—	$	792
Liabilities:
Derivatives, net(b)	$	437	$	160	$	—	$	277
Deferred compensation		6,508		—		6,508		—
Total Liabilities	$	6,945	$	160	$	6,508	$	277

	Fair Value as of December 31, 2024
(In thousands)	Total		Level 1		Level 2		Level 3
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

(b)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.

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.

	Three Months Ended
	March 31,
(In thousands)	2025		2024
Beginning balance	$	(447)	$	(2,604)
Realized and unrealized gains (losses):
Included in regulatory assets		—		878
Included in regulatory liability		960		—
Included in earnings		(553)		(2,204)
Settlements		555		2,204
Balance as of March 31,	$	515	$	(1,726)

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).

	Three Months Ended
	March 31,
(In thousands)	2025		2024
Purchased power expense	$	(553)	$	(2,204)

(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.