Pension and Other Postretirement Plans

6 Months Ended

Jun. 30, 2011

Pension and Other Postretirement Plans Disclosure [Abstract]

Pension and Other Postretirement Plans

7.       Pension and Other Postretirement Plans - MGE Energy and MGE.

MGE maintains qualified and nonqualified pension plans, health care, and life insurance benefits. Additionally, MGE has deferred contribution 401(k) benefit plans.

The following table presents the components of MGE Energy's and MGE's net periodic benefit costs recognized for the three and six months ended June 30, 2011 and 2010. A portion of the net periodic benefit cost is capitalized within the consolidated balance sheets. The PSCW allowed MGE to defer the 2009 incremental pension and OPRB costs above the amounts recovered in rates. During both the three months endedJune 30,2011 and 2010, $0.7 million has been recovered in rates. During both the six months endedJune 30,2011 and 2010, $1.3 million has been recovered in rates.

		Three Months Ended				Six Months Ended
(In thousands)		June 30,				June 30,
		2011		2010		2011		2010
Pension Benefits
Components of net periodic benefit cost:
Service cost	$	1,514	$	1,403	$	3,054	$	2,937
Interest cost		3,030		2,781		6,110		5,822
Expected return on assets		(3,473)		(2,720)		(7,004)		(5,694)
Amortization of:
Prior service cost		107		101		216		212
Actuarial loss		931		802		1,877		1,678
Net periodic benefit cost	$	2,109	$	2,367	$	4,253	$	4,955
Postretirement Benefits
Components of net periodic benefit cost:
Service cost	$	514	$	443	$	1,001	$	926
Interest cost		1,036		906		2,018		1,896
Expected return on assets		(418)		(283)		(814)		(592)
Amortization of:
Transition obligation		113		98		219		205
Prior service cost		29		25		57		53
Actuarial loss		117		101		228		211
Net periodic benefit cost	$	1,391	$	1,290	$	2,709	$	2,699