Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Estimated Fair Market Value of Financial Instruments

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

	June 30, 2025				December 31, 2024
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt(a)	$	770,775	$	710,479	$	773,400	$	698,765

(a)Includes long-term debt due within one year. Excludes debt issuance costs and unamortized discount of $4.1 million and $4.4 million as of June 30, 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 June 30, 2025
(In thousands)	Total		Level 1		Level 2		Level 3
Assets:
Derivatives, net(b)	$	1,936	$	1,416	$	—	$	520
Liabilities:
Derivatives, net(b)	$	1,239	$	916	$	—	$	323
Deferred compensation		6,753		—		6,753		—
Total Liabilities	$	7,992	$	916	$	6,753	$	323

	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 June 30, 2025, no collateral was posted against derivative positions. 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				Six Months Ended
	June 30,				June 30,
(In thousands)	2025		2024		2025		2024
Beginning balance	$	515	$	(1,726)	$	(447)	$	(2,604)
Realized and unrealized gains (losses):
Included in regulatory assets		—		294		—		1,172
Included in regulatory liability		(318)		—		642		—
Included in earnings		(665)		(1,330)		(1,262)		(3,855)
Settlements		665		1,330		1,264		3,855
Balance as of June 30,	$	197	$	(1,432)	$	197	$	(1,432)

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				Six Months Ended
	June 30,				June 30,
(In thousands)	2025		2024		2025		2024
Purchased power expense	$	(665)	$	(1,330)	$	(1,262)	$	(3,855)

(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.