XML 30 R33.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 12 Months Ended
Dec. 31, 2011
Segment Information Disclosure [Abstract]  
Segment Information

23.       Segment Information - MGE Energy and MGE.

 

The electric utility business purchases, generates and distributes electricity, and contracts for transmission service. The gas utility business purchases and distributes natural gas and contracts for the transportation of natural gas. Both the electric and gas segments operate through MGE Energy's principal subsidiary, MGE.

 

The nonregulated energy operations are conducted through MGE Energy's subsidiaries: MGE Power, MGE Power Elm Road, and MGE Power West Campus. These subsidiaries have been formed to construct, own and lease electric generating capacity to assist MGE. MGE Power Elm Road has an ownership interest in two coal-fired generating units in Oak Creek, Wisconsin, which is leased to MGE, and MGE Power West Campus owns a controlling interest in the electric generation plant of a natural gas-fired cogeneration facility on the UW campus. MGE Power West Campus's portion is also leased to MGE.

 

The transmission investment segment invests, through MGE Transco, in ATC, a company that provides electric transmission services primarily in Wisconsin. See Footnote 4 for further discussion of MGE Transco and the investment in ATC.

 

The "All other" segment includes: corporate, CWDC, MAGAEL, and MGE Construct. These entities' operations consist of investing in companies and property which relate to the regulated operations, financing the regulated operations, or providing construction services to the other subsidiaries.

 

General corporate expenses include the cost of executive management, corporate accounting and finance, information technology, risk management, human resources and legal functions, and employee benefits that are allocated to electric and gas segments based on formulas prescribed by the PSCW. Identifiable assets are those used in MGE's operations in each segment. Assets not allocated consist primarily of cash and cash equivalents, restricted cash, investments, other accounts receivable, and prepaid assets.

Sales between our electric and gas segments are based on PSCW approved tariffed rates. Additionally, intersegment operations related to the leasing arrangement between our electric segment and MGE Power Elm Road/MGE Power West Campus are based on terms previously approved by the PSCW. Consistent with internal reporting, management has presented the direct financing capital leases between MGE and MGE Power Elm Road/MGE Power West Campus based on actual lease payments included in rates. Lease payments made by MGE to MGE Power Elm Road and MGE Power West Campus are shown as operating expenses. The lease payments received by MGE Power Elm Road and MGE Power West Campus from MGE are shown as lease income in interdepartmental revenues. The depreciation expense associated with the Elm Road Units and WCCF is reflected in the nonregulated energy segment.

The following table shows segment information for MGE Energy's and MGE's operations:

(In thousands)     Non-     Consolidation/  
MGE Energy     Regulated Transmission All Elimination Consolidated
  Electric Gas Energy Investment Others Entries Total
Year Ended December 31, 2011            
Operating revenues$375,858$165,271$5,253$0$0$0$546,382
Interdepartmental revenues 495 12,440 38,148 0 0 (51,083) 0
Total operating revenues 376,353 177,711 43,401 0 0 (51,083) 546,382
Depreciation and amortization (28,323) (5,593) (7,026) 0 0 0 (40,942)
Other operating expenses (292,080) (155,444) (174) 0 (957) 51,083 (397,572)
Operating income (loss) 55,950 16,674 36,201 0 (957) 0 107,868
Other income, net 71 20 0 8,614 509 0 9,214
Interest (expense) income, net (10,849) (3,060) (6,331) 0 78 0 (20,162)
Income (loss) before taxes 45,172 13,634 29,870 8,614 (370) 0 96,920
Income tax (provision) benefit (15,334) (5,249) (11,988) (3,467) 46 0 (35,992)
Net income (loss)$29,838$8,385$17,882$5,147$(324)$0$60,928
               
Year Ended December 31, 2010            
Operating revenues$360,729$165,915$5,947$0$0$0$532,591
Interdepartmental revenues 504 11,509 28,462 0 0 (40,475) 0
Total operating revenues 361,233 177,424 34,409 0 0 (40,475) 532,591
Depreciation and amortization (27,498) (5,237) (5,225) 0 0 0 (37,960)
Other operating expenses (279,389) (158,146) (136) 0 (833) 40,475 (398,029)
Operating income (loss) 54,346 14,041 29,048 0 (833) 0 96,602
Other (deductions) income, net 2,353 664 0 8,501 (425) 0 11,093
Interest (expense) income, net (10,548) (2,975) (2,659) 0 25 0 (16,157)
Income (loss) before taxes 46,151 11,730 26,389 8,501 (1,233) 0 91,538
Income tax (provision) benefit (15,983) (4,299) (10,581) (3,443) 486 0 (33,820)
Net income (loss)$30,168$7,431$15,808$5,058$(747)$0$57,718
               
Year Ended December 31, 2009            
Operating revenues$332,324$192,334$9,161$0$0$0$533,819
Interdepartmental revenues 524 7,681 14,899 0 0 (23,104) 0
Total operating revenues 332,848 200,015 24,060 0 0 (23,104) 533,819
Depreciation and amortization (28,779) (9,557) (2,744) 0 0 0 (41,080)
Other operating expenses (258,988) (171,313) (129) (1) (747) 23,104 (408,074)
Operating income (loss) 45,081 19,145 21,187 (1) (747) 0 84,665
Other (deductions) income, net (110) (31) 0 8,172 65 0 8,096
Interest (expense) income, net (10,678) (3,012) (2,690) (1) 2,787 0 (13,594)
Income before taxes 34,293 16,102 18,497 8,170 2,105 0 79,167
Income tax provision (10,373) (6,234) (7,424) (3,280) (859) 0 (28,170)
Net income$23,920$9,868$11,073$4,890$1,246$0$50,997

(In thousands)     Non-   Consolidation/  
MGE     Regulated Transmission Elimination Consolidated
  Electric Gas Energy Investment Entries Total
Year Ended December 31, 2011            
Operating revenues$375,858$165,271$5,253$0$0$546,382
Interdepartmental revenues 495 12,440 38,148 0 (51,083) 0
Total operating revenues 376,353 177,711 43,401 0 (51,083) 546,382
Depreciation and amortization (28,323) (5,593) (7,026) 0 0 (40,942)
Other operating expenses* (307,193) (160,631) (12,162) 0 51,083 (428,903)
Operating income* 40,837 11,487 24,213 0 0 76,537
Other (deductions) income, net* (150) (42) 0 5,147 0 4,955
Interest expense, net (10,849) (3,060) (6,331) 0 0 (20,240)
Net income 29,838 8,385 17,882 5,147 0 61,252
Less: Net income attributable to            
noncontrolling interest, net of tax 0 0 0 0 (23,970) (23,970)
Net income attributable to MGE$29,838$8,385$17,882$5,147$(23,970)$37,282
             
Year Ended December 31, 2010           
Operating revenues$360,729$165,915$5,947$0$0$532,591
Interdepartmental revenues 504 11,509 28,462 0 (40,475) 0
Total operating revenues 361,233 177,424 34,409 0 (40,475) 532,591
Depreciation and amortization (27,498) (5,237) (5,225) 0 0 (37,960)
Other operating expenses* (294,353) (162,157) (10,717) 0 40,475 (426,752)
Operating income* 39,382 10,030 18,467 0 0 67,879
Other income, net* 1,334 376 0 5,058 0 6,768
Interest expense, net (10,548) (2,975) (2,659) 0 0 (16,182)
Net income 30,168 7,431 15,808 5,058 0 58,465
Less: net income attributable to            
noncontrolling interest, net of tax 0 0 0 0 (20,740) (20,740)
Net income attributable to MGE$30,168$7,431$15,808$5,058$(20,740)$37,725
             
Year Ended December 31, 2009           
Operating revenues$332,324$192,334$9,161$0$0$533,819
Interdepartmental revenues 524 7,681 14,899 0 (23,104) 0
Total operating revenues 332,848 200,015 24,060 0 (23,104) 533,819
Depreciation and amortization (28,779) (9,557) (2,744) 0 0 (41,080)
Other operating expenses* (269,316) (177,534) (7,552) (1) 23,104 (431,299)
Operating income (loss)* 34,753 12,924 13,764 (1) 0 61,440
Other (deductions) income, net* (155) (44) 0 4,892 0 4,693
Interest expense, net (10,678) (3,012) (2,690) (1) 0 (16,381)
Net income 23,920 9,868 11,074 4,890 0 49,752
Less: Net income attributable to            
noncontrolling interest, net of tax 0 0 0 0 (13,883) (13,883)
Net income attributable to MGE$23,920$9,868$11,074$4,890$(13,883)$35,869
             
*Amounts are shown net of the related tax expense, consistent with the presentation on the consolidated MGE Income Statement.

The following table shows segment information for MGE Energy's and MGE's assets and capital expenditures:
                  
  Utility  Consolidated
(In thousands)     Assets       Consolidation/ 
MGE Energy     not NonregulatedTransmission All Elimination  
  Electric Gas Allocated  Energy Investment Others Entries Total
Assets:                 
December 31, 2011$794,738$285,702$32,882 $299,421$57,006$401,862$(412,729)$1,458,882
December 31, 2010 721,721 257,505 22,079  300,862 54,241 376,219 (414,734) 1,317,893
December 31, 2009 695,897 249,610 22,342  292,101 51,728 389,744 (419,537) 1,281,885
Capital Expenditures:                 
Year ended Dec. 31, 2011$47,206$15,830$0 $2,140$0$0$0$65,176
Year ended Dec. 31, 2010 33,655 13,719 0  12,708 0 0 0 60,082
Year ended Dec. 31, 2009 37,014 13,734 0  27,181 0 0 0 77,929

                
  Utility  Consolidated
(In thousands)     Assets     Consolidation/ 
MGE     notNonregulatedTransmission Elimination  
  Electric Gas Allocated Energy Investment Entries Total
Assets:               
December 31, 2011$794,738$285,702$32,882 $299,171$57,006$(35,706)$1,433,793
December 31, 2010 721,721 257,505 22,079  300,612 54,241 (37,217) 1,318,941
December 31, 2009 695,897 249,610 22,342  291,856 51,728 (37,878) 1,273,555
Capital Expenditures:               
Year ended Dec. 31, 2011$47,206$15,830$0 $2,140$0$0$65,176
Year ended Dec. 31, 2010 33,655 13,719 0  12,708 0 0 60,082
Year ended Dec. 31, 2009 37,014 13,734 0  27,181 0 0 77,929