Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Purchase Contracts, Fiscal Year Maturity Schedule

MGE Energy and MGE have entered into various commodity supply, transportation, and storage contracts to meet their obligations to deliver electricity and natural gas to customers. Management expects to recover these costs in future customer rates. The following table shows future commitments related to purchase contracts as of September 30, 2018:

(In thousands)		2018		2019		2020		2021		2022		Thereafter
Coal^(a)	$	6,716	$	21,188	$	8,434	$	828	$	-	$	-
Natural gas supply^(b)		12,245		13,287		-		-		-		-
Saratoga wind^(c)		1,006		858		2,266		1,775		1,784		4,459
Other		1,772		502		502		502		502		502
	$	21,739	$	35,835	$	11,202	$	3,105	$	2,286	$	4,961

(a) Total coal commitments for the Columbia and Elm Road Units, including transportation. Fuel procurement for MGE's jointly owned Columbia and Elm Road Units is handled by WPL and WEPCO, respectively, who are the operators of those facilities.

(b) These commitments include market-based pricing.

(c) In December 2017, the PSCW authorized construction of a 66MW wind farm, consisting of 33 turbines, located near Saratoga, Iowa. MGE received specific approval to recover 100% AFUDC on the project. As of September 30, 2018, MGE has incurred $66.5 million of capital expenditures. After tax, MGE has recognized $0.6 million and $1.3 million, respectively, in AFUDC equity related to this project for the three and nine months ended September 30, 2018. Construction of the project is expected to be completed by early 2019, with an estimated capital cost of $108 million.