Pension and Other Postretirement Plans

6 Months Ended

Jun. 30, 2012

Pension and Other Postretirement Plans Disclosure [Abstract]

Pension and Other Postretirement Plans

6.       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 defined 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, 2012 and 2011. A portion of the net periodic benefit cost is capitalized within the consolidated balance sheets.

		Three Months Ended				Six Months Ended
(In thousands)		June 30,				June 30,
		2012		2011		2012		2011
Pension Benefits
Components of net periodic benefit cost:
Service cost	$	1,920	$	1,514	$	3,743	$	3,054
Interest cost		3,321		3,030		6,475		6,110
Expected return on assets		(4,021)		(3,473)		(7,839)		(7,004)
Amortization of:
Prior service cost		114		107		222		216
Actuarial loss		2,112		931		4,118		1,877
Net periodic benefit cost	$	3,446	$	2,109	$	6,719	$	4,253
Postretirement Benefits
Components of net periodic benefit cost:
Service cost	$	606	$	514	$	1,253	$	1,001
Interest cost		1,053		1,036		2,178		2,018
Expected return on assets		(407)		(418)		(842)		(814)
Amortization of:
Transition obligation		99		113		206		219
Prior service cost		26		29		54		57
Actuarial loss		581		117		1,201		228
Net periodic benefit cost	$	1,958	$	1,391	$	4,050	$	2,709

The PSCW allowed MGE to defer the 2009 incremental pension and OPRB costs above the amounts recovered in rates. During the three months endedJune 30,2012 and 2011, $0.3 million and $0.7 million, respectively, has been recovered in rates. During the six months ended June 30, 2012 and 2011, $0.6 million and $1.3 million, respectively, has been recovered in rates. These costs are not reflected in the table above.