MGE Energy(MGEE)2025-02-25 17:41Electric Operations and Revenue - MGE Energy's electric operations accounted for approximately 74%, 71%, and 65% of total regulated revenues in 2024, 2023, and 2022 respectively[27]. - As of December 31, 2024, MGE supplied electric service to approximately 167,000 customers, with 91% located in urban areas[26]. - MGE's electric operations include regulated electric and gas utility operations, as well as nonregulated energy operations[26]. - Gas operations accounted for approximately 26%, 29%, and 35% of MGE's total regulated revenues in 2024, 2023, and 2022, respectively[49]. - No single customer accounted for more than 10% of total operating revenues for MGE Energy and MGE in 2024[281]. Carbon Reduction and Renewable Energy Goals - MGE aims for a net-zero carbon electricity target by 2050 and has committed to achieving at least 80% carbon reductions by 2030 from 2005 levels[36]. - MGE's carbon reduction goals align with the recommendations of the Intergovernmental Panel on Climate Change (IPCC)[37]. - MGE plans to eliminate coal as an owned generation source by the end of 2032, reducing approximately two-thirds of its current coal-fired generation capacity by 2030[39]. - MGE is working to increase renewable energy to 25% of retail electric sales by 2025 and to 30% by 2030[72]. - MGE currently exceeds Wisconsin's renewable energy requirement of approximately 8%[81]. Transition from Coal and Natural Gas - The company is transitioning away from coal and adding new renewable generation to meet its carbon reduction goals[38]. - MGE plans to retire the Columbia unit by the end of 2029 and transition the Elm Road Units from coal to natural gas by the end of 2032[72]. - MGE purchased 25 MW in the West Riverside Energy Center in early 2023 and an additional 25 MW in June 2024, as part of its investment in natural gas plants[45]. Renewable Energy Projects and Initiatives - Since 2015, MGE has added 222 MW of solar and 93 MW of wind generation facilities, with an expectation to add approximately 178 MW of solar, 18 MW of wind, and 118 MW of battery storage by the end of 2028[40]. - MGE has developed approximately 42 MW of solar generation under the Renewable Energy Rider (RER) program, partnering with large energy users[43]. - The Shared Solar Program allows residential and small business customers to use locally generated solar energy for up to half of their annual energy needs, with a total capacity of 4 MW from two solar facilities[44]. - MGE's 19% share in the Columbia Energy Storage project will be 3 MW, which is set to be the first of its kind in the United States if approved[41]. Emission Reduction and Environmental Compliance - MGE aims to achieve net-zero methane emissions from its natural gas distribution system by 2035, introducing a renewable natural gas program in May 2024[51]. - The EPA finalized a rule to lower the average annual PM2.5 NAAQS from 12 ug/m3 to 9 ug/m3, effective May 2024, which may impact Milwaukee County[67]. - The EPA's final performance standards under section 111(b) of the Clean Air Act for carbon dioxide emissions will require states to submit plans for existing natural gas-fired combustion turbines within two years[74]. Workforce and Safety - As of December 31, 2024, MGE Energy had 717 employees, with women and ethnic minorities representing 25% and 10% of the workforce, respectively[82]. - MGE has implemented a comprehensive safety culture involving employees at all levels to enhance workplace safety[87]. Financial Management and Risk - MGE manages market risks associated with interest rates, commodity prices, and equity returns through risk management policies and derivative instruments[270]. - MGE expects to recover 0.1 million[275]. - A 1% reduction in the expected rate of return on pension plan assets would increase annual pension costs by approximately 0.4 million for both MGE Energy and MGE[276].