Notes Payable to Banks, Commercial Paper, and Lines of Credit (Tables)

12 Months Ended

Dec. 31, 2025

Information regarding lines of credit and short-term borrowings is shown below:


(In thousands)	MGE Energy(a)(c)							MGE
As of December 31,	2025			2024			2025				2024
Lines of credit(b)	$	180,000		$	180,000		$		130,000		$	130,000
Available capacity under line of credit(e)	$	86,917		$	179,383		$		36,917		$	129,383
Short-term debt outstanding(e)	$	94,527		$	-		$		94,527		$	-
Letters of credit issued inside credit facilities	$	583		$	617		$		583		$	617
Required ratio of consolidated debt to consolidated total capitalization - not to exceed a maximum		65.00	%		65.00	%			65.00	%(d)		65.00	%(d)
Weighted-average interest rate		3.84	%		-	%			3.84	%		-	%
Year Ended December 31,
Maximum short-term borrowings	$	109,527		$	67,500		$		109,527		$	67,500
Average short-term borrowings	$	25,280		$	39,257		$		25,280		$	39,257
Weighted-average interest rate		4.14	%		5.27	%			4.14	%		5.27	%

(a)

MGE Energy short-term borrowings include MGE Energy and MGE lines of credit and MGE commercial paper.

(b)

As of December 31, 2025, MGE Energy and MGE had no borrowings outstanding under these credit facilities and were in compliance with the covenant requirements of the credit agreements.

(c)

A change in control constitutes a default under the agreement. Change in control events are defined as (i) a failure by MGE Energy to hold 100% of the outstanding voting equity interest in MGE or (ii) the acquisition of beneficial ownership of 30% or more of the outstanding voting stock of MGE Energy by one person or two or more persons acting in concert.

(d)

The ratio calculation excludes assets, liabilities, revenues, and expenses included in MGE's financial statements as the result of the consolidation of VIEs, such as MGE Power West Campus and MGE Power Elm Road. A change in control constitutes a default under the agreements. Change in control events are defined as (i) a failure by MGE Energy to hold 100% of the outstanding voting equity interest in MGE or (ii) the acquisition of beneficial ownership of 30% or more of the outstanding voting stock of MGE Energy by one person or two or more persons acting in concert.

(e)

Available capacity under the Company’s line of credit is calculated as total committed revolving credit capacity less commercial paper outstanding as of December 31, 2025. The $2.0 million unsecured promissory note, issued to the seller in connection with a land acquisition, is included in short‑term debt outstanding but is not a borrowing under the Company’s revolving credit facilities. The promissory note was fully repaid, including interest, in January 2026.