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United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: March 31, 2026 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _______________ to _______________
Commission File No.	Name of Registrant, State of Incorporation, Address of Principal Executive Offices, and Telephone No.	IRS Employer Identification No.
000-49965	MGE Energy, Inc. (a Wisconsin Corporation) 133 South Blair Street Madison, Wisconsin 53788 (608) 252-7000 \| mgeenergy.com	39-2040501
000-1125	Madison Gas and Electric Company (a Wisconsin Corporation) 133 South Blair Street Madison, Wisconsin 53788 (608) 252-7000 \| mge.com	39-0444025

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $1 Par Value Per Share	MGEE	The NASDAQ Stock Market

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days:


MGE Energy, Inc. Yes ☒ No ☐	Madison Gas and Electric Company Yes ☒ No ☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files):


MGE Energy, Inc. Yes ☒ No ☐	Madison Gas and Electric Company Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


	Large Accelerated Filer	Accelerated Filer	Non-accelerated Filer	Smaller Reporting Company	Emerging Growth Company
MGE Energy, Inc.	☒	☐	☐	☐	☐
Madison Gas and Electric Company	☐	☐	☒	☐	☐

If an emerging growth company, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


MGE Energy, Inc. ☐	Madison Gas and Electric Company ☐

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act):


MGE Energy, Inc. Yes ☐ No ☒	Madison Gas and Electric Company Yes ☐ No ☒


Number of Shares Outstanding of Each Class of Common Stock as of April 30, 2026
MGE Energy, Inc.	Common stock, $1.00 par value, 36,756,422 shares outstanding.
Madison Gas and Electric Company	Common stock, $1.00 par value, 17,347,894 shares outstanding (all of which are owned beneficially and of record by MGE Energy, Inc.).

Table of Contents


PART I. FINANCIAL INFORMATION	3
Filing Format	3
Forward-Looking Statements	3
Where to Find More Information	3
Definitions, Abbreviations, and Acronyms Used in the Text and Notes of this Report	4
Item 1. Financial Statements.	6
MGE Energy, Inc.	6
Consolidated Statements of Income (unaudited)	6
Consolidated Statements of Cash Flows (unaudited)	7
Consolidated Balance Sheets (unaudited)	8
Consolidated Statements of Common Equity (unaudited)	9
Madison Gas and Electric Company	10
Consolidated Statements of Income (unaudited)	10
Consolidated Statements of Cash Flows (unaudited)	11
Consolidated Balance Sheets (unaudited)	12
Consolidated Statements of Equity (unaudited)	13
MGE Energy, Inc., and Madison Gas and Electric Company - Notes to Consolidated Financial Statements (unaudited)	14
1. Summary of Significant Accounting Policies.	14
2. New Accounting Standards.	15
3. Investment in ATC and ATC Holdco.	15
4. Taxes.	16
5. Pension and Other Postretirement Plans.	16
6. Equity and Financing Arrangements.	17
7. Share-Based Compensation.	17
8. Commitments and Contingencies.	18
9. Rate Matters.	21
10. Derivative and Hedging Instruments.	22
11. Fair Value of Financial Instruments.	24
12. Joint Plant Construction Project Ownership.	26
13. Revenue.	27
14. Segment Information.	27
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.	30
Item 3. Quantitative and Qualitative Disclosures About Market Risk.	40
Item 4. Controls and Procedures.	40
PART II. OTHER INFORMATION.	41
Item 1. Legal Proceedings.	41
Item 1A. Risk Factors.	41
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	41
Item 3. Defaults Upon Senior Securities.	41
Item 4. Mine Safety Disclosures.	41
Item 5. Other Information.	41
Item 6. Exhibits.	42
Signatures - MGE Energy, Inc.	43
Signatures - Madison Gas and Electric Company.	44

PART I. FINANCIAL INFORMATION.

Filing Format

This combined Form 10-Q is being filed separately by MGE Energy, Inc. (MGE Energy) and Madison Gas and Electric Company (MGE). MGE is a wholly owned subsidiary of MGE Energy and represents a majority of its assets, liabilities, revenues, expenses, and operations. Thus, all information contained in this report relates to, and is filed by, MGE Energy. Information that is specifically identified in this report as relating solely to MGE Energy, such as its financial statements and information relating to its nonregulated business, does not relate to, and is not filed by, MGE. MGE makes no representation as to that information. The terms "we" and "our," as used in this report, refer to MGE Energy and its consolidated subsidiaries, unless otherwise indicated.

Forward-Looking Statements

Certain matters discussed in this report include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about our future financial results, goals, plans, commitments, strategies and objectives, particularly related to future load growth, revenues, expenses, capital expenditures and rate recovery, financial resources, regulatory matters, and the scope and expense associated with future environmental regulation. Such statements involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond our control and could cause our future financial results, goals, plans and objectives to differ materially from those expressed in, or implied by, the statements. Words such as "believe," "expect," "anticipate," "estimate," "could," "should," "intend," "will," "commit," "target," "plan," and other similar words, and words relating to goals, targets and projections, generally identify forward-looking statements. Both MGE Energy and MGE caution investors that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, expressed, or implied.

The factors that could cause actual results to differ materially from the forward-looking statements made by a registrant include (a) those factors discussed in the following sections of the registrants' 2025 Annual Report on Form 10-K: Item 1A. Risk Factors; Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, as updated by Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations in this report; and Item 8. Financial Statements and Supplementary Data – Footnote 16, as updated by Part I, Item 1. Financial Statements – Footnote 8 in this report; and (b) other factors discussed herein and in other filings made by that registrant with the Securities and Exchange Commission (SEC).

Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this report. MGE Energy and MGE undertake no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this report, whether as a result of new information, future events, changed circumstances or otherwise, except as required by law.

Where to Find More Information

We file annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and other information with the SEC. The SEC maintains an internet site at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

MGE Energy maintains a website at mgeenergy.com, and MGE maintains a website at mge.com. Copies of the reports and other information that we file with the SEC may be obtained from our websites free of charge. Information contained on MGE Energy's and MGE's websites shall not be deemed incorporated into, or to be a part of, this report.

Definitions, Abbreviations, and Acronyms Used in the Text and Notes of this Report

Abbreviations, acronyms, and definitions used in the text and notes of this report are defined below.


MGE Energy and Subsidiaries:

CWDC	Central Wisconsin Development Corporation
MAGAEL	MAGAEL, LLC
MGE	Madison Gas and Electric Company
MGE Energy	MGE Energy, Inc.
MGE Power	MGE Power, LLC
MGE Power Elm Road	MGE Power Elm Road, LLC
MGE Power West Campus	MGE Power West Campus, LLC
MGE Services	MGE Services, LLC
MGE State Energy Services	MGE State Energy Services, LLC
MGE Transco	MGE Transco Investment, LLC
MGEE Transco	MGEE Transco, LLC
North Mendota	North Mendota Energy & Technology Park, LLC

Other Defined Terms:

2025 Annual Report on Form 10-K	MGE Energy's and MGE's Annual Report on Form 10-K for the year ended December 31, 2025
2024 ELG Rule	Supplemental Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating Point Source Category
2021 Incentive Plan	MGE Energy's 2021 Long-Term Incentive Plan
AD/CVD	Antidumping and Countervailing Duties
AFUDC	Allowance for Funds Used During Construction
ATC	American Transmission Company LLC
ATC Holdco	ATC Holdco, LLC
ATM	At-the-Market Offering Program
Badger Hollow	Badger Hollow Solar Park
Blount	Blount Station
BTA	Best Technology Available
CA	Certificate of Authority
CBP	U.S. Customs and Border Protection
CCR	Coal Combustion Residual
Codification	Financial Accounting Standards Board Accounting Standards Codification
Columbia	Columbia Energy Center
CWIP	Construction Work in Progress
Dth	Dekatherms, a quantity measure for natural gas
DOC	United States Department of Commerce
Elm Road Units	Elm Road Generating Station
EPA	United States Environmental Protection Agency
FERC	Federal Energy Regulatory Commission
FTR	Financial Transmission Rights
GHG	Greenhouse gas
Heating degree days (HDD)	Measure of the extent to which the average daily temperature is below 65 degrees Fahrenheit, which is considered an indicator of possible increased demand for energy to provide heating
High Noon	High Noon Solar Energy Center
IRS	Internal Revenue Service
ITC	Investment Tax Credit
Koshkonong	Koshkonong Solar Park
kWh	Kilowatt-hour, a measure of electric energy produced
MISO	Midcontinent Independent System Operator, Inc.
MW	Megawatt, a measure of electric energy generating capacity
MWh	Megawatt-hour, a measure of electric energy produced
NAAQS	National Ambient Air Quality Standards
Nasdaq	The Nasdaq Stock Market
NOx	Nitrogen Oxide
OBBBA	One Big Beautiful Bill Act
Paris	Paris Solar-Battery Park
PGA	Purchased Gas Adjustment clause, a regulatory mechanism used to reconcile natural gas costs recovered in rates to actual costs


PM	Particulate Matter
PSCW	Public Service Commission of Wisconsin
PTC	Production Tax Credit
ROE	Return on Equity
Saratoga	Saratoga Solar Electric Generation and BESS Facility
SEC	Securities and Exchange Commission
SO2	Sulfur Dioxide
Stock Plan	Direct Stock Purchase and Dividend Reinvestment Plan of MGE Energy
Sunnyside	Sunnyside Solar and Battery Project
Therm	Measure of quantity of heat used to measure gas supply
UFLPA	Uyghur Forced Labor Prevention Act
Ursa	Ursa Solar Electric Generation Facility
USITC	United States International Trade Commission
VIE	Variable Interest Entity
WCCF	West Campus Cogeneration Facility
WDNR	Wisconsin Department of Natural Resources
WEPCO	Wisconsin Electric Power Company, a subsidiary of WEC Energy Group, Inc.
West Riverside	West Riverside Energy Center
WPDES	Wisconsin Pollutant Discharge Elimination System
WRO	Withhold Release Order
XBRL	eXtensible Business Reporting Language

Item 1. Financial Statements.

MGE Energy, Inc.

Consolidated Statements of Income (unaudited)

(In thousands, except per share amounts)


	Three Months Ended
	March 31,
	2026			2025
Operating Revenues:
Electric revenues	$	131,440		$	125,489
Gas revenues		111,263			93,481
Total Operating Revenues		242,703			218,970

Operating Expenses:
Fuel for electric generation		20,309			17,569
Purchased power		2,467			4,378
Cost of gas sold		70,823			53,964
Other operations and maintenance		61,568			56,559
Depreciation and amortization		28,089			27,678
Other general taxes		6,295			5,957
Total Operating Expenses		189,551			166,105
Operating Income		53,152			52,865

Other income, net		10,990			2,604
Interest expense, net		(9,805	)		(7,581	)
Income before income taxes		54,337			47,888
Income tax provision		(5,856	)		(6,296	)
Net Income	$	48,481		$	41,592

Earnings Per Share of Common Stock
Basic	$	1.32		$	1.14
Diluted	$	1.32		$	1.14

Dividends per share of common stock	$	0.475		$	0.450

Weighted Average Shares Outstanding
Basic		36,590			36,511
Diluted		36,620			36,539

The accompanying notes are an integral part of the above unaudited consolidated financial statements.

MGE Energy, Inc.

Consolidated Statements of Cash Flows (unaudited)

(In thousands)


	Three Months Ended
	March 31,
	2026			2025
Operating Activities:
Net income	$	48,481		$	41,592
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization		28,089			27,678
Deferred income taxes		2,497			1,344
Provision for doubtful receivables		1,756			2,200
Employee benefit plan credit		(2,369	)		(1,181	)
Cash contributions to pension and other postretirement plans		(1,874	)		(1,914	)
Equity earnings in investments		(3,541	)		(3,181	)
Dividends from investments		2,719			3,287
Changes in assets and liabilities
Current assets		20,917			16,039
Accounts payable		(16,661	)		(16,485	)
Deferred income taxes		364			—
Other current liabilities		(2,285	)		337
Regulatory assets and liabilities, net		5,805			6,675
Other, net		(3,205	)		1,471
Cash Provided by Operating Activities		80,693			77,862

Investing Activities:
Capital expenditures		(101,140	)		(47,653	)
Capital contributions to investments		(4,822	)		(2,540	)
Other		503			(399	)
Cash Used for Investing Activities		(105,459	)		(50,592	)

Financing Activities:
Issuance of common stock, net		14,014			3,279
Cash dividends paid on common stock		(17,368	)		(16,428	)
Repayments of long-term debt		(2,544	)		(1,308	)
Issuance of long-term debt		90,000			—
Repayments of short-term debt		(54,277	)		—
Other		(1,310	)		(650	)
Cash Provided by (Used for) Financing Activities		28,515			(15,107	)

Change in cash, cash equivalents, and restricted cash		3,749			12,163
Cash, cash equivalents, and restricted cash at beginning of period		8,736			24,496
Cash, cash equivalents, and restricted cash at end of period	$	12,485		$	36,659

The accompanying notes are an integral part of the above unaudited consolidated financial statements.

MGE Energy, Inc.

Consolidated Balance Sheets (unaudited)

(In thousands)


	March 31,		December 31,
ASSETS	2026		2025
Current Assets:
Cash and cash equivalents	$	9,468	$	5,666
Accounts receivable, less reserves of $9,800 and $8,578, respectively		59,014		57,558
Other accounts receivable, less reserves of $2,257 and $2,084, respectively		12,108		12,983
Unbilled revenues		31,597		42,770
Materials and supplies, at average cost		38,193		37,850
Fuel for electric generation, at average cost		11,242		11,010
Stored natural gas, at average cost		9,409		15,317
Prepaid taxes		14,243		19,314
Regulatory assets - current		10,996		8,879
Other current assets		14,864		17,201
Total Current Assets		211,134		228,548
Regulatory assets		45,488		42,758
Pension and other postretirement benefit asset		168,666		164,985
Other deferred assets and other		19,215		18,348
Property, Plant, and Equipment:
Property, plant, and equipment, net		2,282,117		2,279,899
Construction work in progress		326,399		292,969
Total Property, Plant, and Equipment		2,608,516		2,572,868
Investments		132,663		127,913
Total Assets	$	3,185,682	$	3,155,420

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Long-term debt due within one year	$	20,471	$	21,633
Short-term debt		40,250		94,527
Accounts payable		57,288		117,673
Accrued interest and taxes		13,674		10,269
Accrued payroll related items		14,114		17,244
Regulatory liabilities - current		28,175		23,490
Other current liabilities		9,191		11,873
Total Current Liabilities		183,163		296,709
Other Credits:
Deferred income taxes		344,250		337,798
Investment tax credit - deferred		48,066		48,609
Regulatory liabilities		189,423		185,372
Accrued pension and other postretirement benefits		51,249		51,105
Asset retirement obligations		77,143		76,289
Other deferred liabilities and other		62,645		63,397
Total Other Credits		772,776		762,570
Capitalization:
Common shareholders' equity		1,349,399		1,303,936
Long-term debt		880,344		792,205
Total Capitalization		2,229,743		2,096,141
Commitments and contingencies (see Footnote 8)
Total Liabilities and Capitalization	$	3,185,682	$	3,155,420

The accompanying notes are an integral part of the above unaudited consolidated financial statements.

MGE Energy, Inc.

Consolidated Statements of Common Equity (unaudited)

(In thousands, except per share amounts)


								Accumulated
			Additional					Other
	Common		Paid-in		Retained			Comprehensive
	Stock		Capital		Earnings			Income/(Loss)		Total
Three Months Ended March 31, 2025
Beginning Balance	$	36,490	$	429,515	$	764,133		$	—	$	1,230,138
Net income						41,592					41,592
Common stock dividends declared ($0.450 per share)						(16,428	)				(16,428	)
Issuance of common stock, net	36			3,243							3,279
Equity-based compensation plans and other		11		321							332
Ending Balance - March 31, 2025	$	36,537	$	433,079	$	789,297		$	—	$	1,258,913

Three Months Ended March 31, 2026
Beginning Balance	$	36,542	$	434,959	$	832,435		$	—	$	1,303,936
Net income						48,481					48,481
Common stock dividends declared ($0.475 per share)						(17,368	)				(17,368	)
Issuance of common stock, net	189			13,825							14,014
Equity-based compensation plans and other	22			314							336
Ending Balance - March 31, 2026	$	36,753	$	449,098	$	863,548		$	—	$	1,349,399

The accompanying notes are an integral part of the above unaudited consolidated financial statements.

Madison Gas and Electric Company

Consolidated Statements of Income (unaudited)

(In thousands)


	Three Months Ended
	March 31,
	2026			2025
Operating Revenues:
Electric revenues	$	131,440		$	125,489
Gas revenues		111,263			93,481
Total Operating Revenues		242,703			218,970

Operating Expenses:
Fuel for electric generation		20,309			17,569
Purchased power		2,467			4,378
Cost of gas sold		70,823			53,964
Other operations and maintenance		61,236			56,262
Depreciation and amortization		28,089			27,678
Other general taxes		6,295			5,957
Total Operating Expenses		189,219			165,808
Operating Income		53,484			53,162

Other income, net		6,683			(384	)
Interest expense, net		(9,824	)		(7,635	)
Income before income taxes		50,343			45,143
Income tax provision		(4,630	)		(5,340	)
Net Income	$	45,713		$	39,803
Less: Net Income Attributable to Noncontrolling Interest, net of tax		(5,606	)		(5,599	)
Net Income Attributable to MGE	$	40,107		$	34,204

The accompanying notes are an integral part of the above unaudited consolidated financial statements.

Madison Gas and Electric Company

Consolidated Statements of Cash Flows (unaudited)

(In thousands)


	Three Months Ended
	March 31,
	2026			2025
Operating Activities:
Net income	$	45,713		$	39,803
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization		28,089			27,678
Deferred income taxes		1,979			982
Provision for doubtful receivables		1,756			2,200
Employee benefit plan credit		(2,369	)		(1,181	)
Cash contributions to pension and other postretirement plans		(1,874	)		(1,914	)
Changes in assets and liabilities
Current assets		19,421			16,065
Accounts payable		(17,023	)		(16,498	)
Deferred income taxes		364			—
Other current liabilities		570			(253	)
Regulatory assets and liabilities, net		5,805			6,675
Other, net		(3,256	)		397
Cash Provided by Operating Activities		79,175			73,954

Investing Activities:
Capital expenditures		(101,140	)		(47,653	)
Other		(1,286	)		(396	)
Cash Used for Investing Activities		(102,426	)		(48,049	)

Financing Activities:
Cash dividends paid to parent by MGE		(18,000	)		(13,500	)
Distributions to parent from noncontrolling interest		(4,250	)		(4,000	)
Capital contribution from parent		16,750			—
Repayments of long-term debt		(2,544	)		(1,308	)
Issuance of long-term debt		90,000			—
Repayments of short-term debt		(54,277	)		—
Other		(1,311	)		(650	)
Cash Provided by (Used for) Financing Activities		26,368			(19,458	)

Change in cash, cash equivalents, and restricted cash		3,117			6,447
Cash, cash equivalents, and restricted cash at beginning of period		5,318			20,059
Cash, cash equivalents, and restricted cash at end of period	$	8,435		$	26,506

The accompanying notes are an integral part of the above unaudited consolidated financial statements.

Madison Gas and Electric Company

Consolidated Balance Sheets (unaudited)

(In thousands)


	March 31,		December 31,
ASSETS	2026		2025
Current Assets:
Cash and cash equivalents	$	5,418	$	2,248
Accounts receivable, less reserves of $9,800 and $8,578, respectively		59,014		57,558
Other accounts receivable, less reserves of $2,257 and $2,084, respectively		12,104		12,979
Unbilled revenues		31,597		42,770
Materials and supplies, at average cost		38,193		37,850
Fuel for electric generation, at average cost		11,242		11,010
Stored natural gas, at average cost		9,409		15,317
Prepaid taxes		14,208		18,748
Regulatory assets - current		10,996		8,879
Other current assets		15,852		17,225
Total Current Assets		208,033		224,584
Regulatory assets		45,488		42,758
Pension and other postretirement benefit asset		168,666		164,985
Other deferred assets and other		18,022		17,817
Property, Plant, and Equipment:
Property, plant, and equipment, net		2,282,145		2,279,927
Construction work in progress		326,399		292,969
Total Property, Plant, and Equipment		2,608,544		2,572,896

Total Assets	$	3,048,753	$	3,023,040

LIABILITIES AND CAPITALIZATION
Current Liabilities:
Long-term debt due within one year	$	20,471	$	21,633
Short-term debt		40,250		94,527
Accounts payable		56,911		117,658
Accrued interest and taxes		13,463		10,234
Accrued payroll related items		14,114		17,244
Regulatory liabilities - current		28,175		23,490
Other current liabilities		9,190		8,843
Total Current Liabilities		182,574		293,629
Other Credits:
Deferred income taxes		307,132		301,198
Investment tax credit - deferred		48,066		48,609
Regulatory liabilities		189,423		185,372
Accrued pension and other postretirement benefits		51,249		51,105
Asset retirement obligations		77,143		76,289
Other deferred liabilities and other		65,257		67,281
Total Other Credits		738,270		729,854
Capitalization:
Common shareholder's equity		1,089,421		1,050,564
Noncontrolling interest		158,144		156,788
Total Equity		1,247,565		1,207,352
Long-term debt		880,344		792,205
Total Capitalization		2,127,909		1,999,557
Commitments and contingencies (see Footnote 8)
Total Liabilities and Capitalization	$	3,048,753	$	3,023,040

The accompanying notes are an integral part of the above unaudited consolidated financial statements.

Madison Gas and Electric Company

Consolidated Statements of Equity (unaudited)

(In thousands)


										Accumulated
					Additional					Other		Non-
	Common Stock				Paid-in		Retained			Comprehensive		Controlling
	Shares		Value		Capital		Earnings			Income/(Loss)		Interest			Total
Three Months Ended March 31, 2025
Beginning balance		17,348	$	17,348	$	283,667	$	688,404		$	—	$	150,386		$	1,139,805
Net income								34,204					5,599			39,803
Cash dividends paid to parent by MGE								(13,500	)							(13,500	)
Distributions to parent from noncontrolling interest													(4,000	)		(4,000	)
Ending Balance - March 31, 2025		17,348	$	17,348	$	283,667	$	709,108		$	—	$	151,985		$	1,162,108

Three Months Ended March 31, 2026
Beginning balance		17,348	$	17,348	$	292,167	$	741,049		$	—	$	156,788		$	1,207,352
Net income								40,107					5,606			45,713
Capital contributions from parent						16,750										16,750
Cash dividends paid to parent by MGE								(18,000	)							(18,000	)
Distributions to parent from noncontrolling interest													(4,250	)		(4,250	)
Ending Balance - March 31, 2026		17,348	$	17,348	$	308,917	$	763,156		$	—	$	158,144		$	1,247,565

The accompanying notes are an integral part of the above unaudited consolidated financial statements.

MGE Energy, Inc., and Madison Gas and Electric Company

Notes to Consolidated Financial Statements (unaudited)

March 31, 2026

Summary of Significant Accounting Policies – MGE Energy and MGE.

Basis of Presentation.

This report is a combined report of MGE Energy and MGE. References in this report to "MGE Energy" are to MGE Energy, Inc. and its subsidiaries. References in this report to "MGE" are to Madison Gas and Electric Company.

MGE Power Elm Road and MGE Power West Campus own electric generating assets and lease those assets to MGE. Both entities are variable interest entities (VIE) under applicable authoritative accounting guidance. MGE is considered the primary beneficiary of these entities as a result of contractual agreements. As a result, MGE has consolidated MGE Power Elm Road and MGE Power West Campus in its financial reports. See Footnote 3 of the Notes to the Consolidated Financial Statements under Item 8, Financial Statements and Supplementary Data, of MGE Energy's and MGE's 2025 Annual Report on Form 10-K (the 2025 Annual Report on Form 10-K).

The accompanying consolidated financial statements as of March 31, 2026, and during the three months ended March 31, 2026, as applicable, are unaudited but include all adjustments that MGE Energy and MGE management consider necessary for a fair statement of their respective financial statements. All adjustments are of a normal, recurring nature except as otherwise disclosed. The year-end consolidated balance sheet information was derived from the audited balance sheet appearing in the 2025 Annual Report on Form 10-K but does not include all disclosures required by accounting principles generally accepted in the United States of America. These notes should be read in conjunction with the financial statements and the notes thereto located on pages 52 through 105 of the 2025 Annual Report on Form 10-K.

Supplemental Cash Flow Information – MGE Energy and MGE.


	MGE Energy				MGE(b)
	March 31,		March 31,		March 31,		March 31,
(In Thousands)	2026		2025		2026		2025
Income tax receipts, net(a):
US Federal	$	(364)	$	(19)	$	(364)	$	(19)
Significant noncash investing activities:
Accrued capital expenditures		12,961		9,802		12,961		9,802

(a)

For the three months ended March 31, 2026, federal tax receipts include $0.4 million of proceeds from the transfer of federal tax credits under Internal Revenue Code Section 6418.

(b)

MGE Energy files a consolidated federal income tax return with its subsidiaries. While taxes are filed on a consolidated basis, MGE calculates its respective share of tax liability and makes intercompany tax payments to or from its parent company.

The following table presents the components of total cash, cash equivalents, and restricted cash on the consolidated balance sheets.


	MGE Energy				MGE
	March 31,		December 31,		March 31,		December 31,
(In thousands)	2026		2025		2026		2025
Cash and cash equivalents	$	9,468	$	5,666	$	5,418	$	2,248
Restricted cash		665		952		665		952
Receivable - margin account		2,352		2,118		2,352		2,118
Cash, cash equivalents, and restricted cash	$	12,485	$	8,736	$	8,435	$	5,318

Cash Equivalents

All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents.

Restricted Cash

MGE has certain cash accounts that are restricted to uses other than current operations and designated for a specific purpose. MGE's restricted cash accounts include cash held by trustees for certain employee benefits and cash deposits held by third parties. These are included in "Other current assets" on the consolidated balance sheets.

Receivable – Margin Account

Cash amounts held by counterparties as margin collateral for certain financial transactions are recorded as Receivable – margin account in "Other current assets" on the consolidated balance sheets. The costs being hedged are fuel for electric generation, purchased power, and cost of gas sold.

New Accounting Standards - MGE Energy and MGE.

In November 2024, the Financial Accounting Standards Board issued authoritative guidance within the codification's Income Statement - Reporting Comprehensive Income topic, which added disclosure requirements for the disaggregation of certain income statement expenses. The authoritative guidance will become effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. MGE will adopt the standard as of the effective date. The adoption of this standard will not have a material impact on MGE Energy's and MGE's financial statements.

In September 2025, the Financial Accounting Standards Board issued authoritative guidance within the codification’s Internal-Use Software topic, which amends certain aspects of the accounting for and disclosure of software costs. The authoritative guidance will become effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual reporting periods; early adoption is permitted as of the beginning of an annual reporting period. MGE will adopt the standard as of the effective date. The adoption of this standard is not expected to have a material impact on MGE Energy's and MGE’s financial statements.

Investment in ATC and ATC Holdco - MGE Energy and MGE.

ATC owns and operates electric transmission facilities primarily in Wisconsin. MGE received an interest in ATC when it, like other Wisconsin electric utilities, contributed its electric transmission facilities to ATC, as required by Wisconsin law. That interest is presently held by MGE Transco, a subsidiary of MGE Energy. ATC Holdco was formed by several members of ATC, including MGE Energy, to pursue electric transmission development and investments outside of Wisconsin. The ownership interest in ATC Holdco is held by MGEE Transco, a subsidiary of MGE Energy.

MGE Transco and MGEE Transco have accounted for their investments in ATC and ATC Holdco, respectively, under the equity method of accounting. Equity earnings from investments are recorded as "Other income" on the consolidated statements of income of MGE Energy. MGE Transco recorded the following amounts related to its investment in ATC:


	Three Months Ended
	March 31,
(In thousands)	2026		2025
Equity earnings from investment in ATC	$	3,522	$	2,990
Dividends received from ATC		2,662		3,287
Capital contributions to ATC		4,460		2,492

In April 2026, MGE Transco made a $2.2 million capital contribution to ATC.

ATC's summarized financial data is as follows:


	Three Months Ended
	March 31,
(In thousands)	2026			2025
Operating revenues	$	265,259		$	234,929
Operating expenses		(127,405	)		(116,745	)
Other income, net		700			83
Interest expense, net		(44,476	)		(39,193	)
Earnings before members' income taxes	$	94,078		$	79,074

MGE receives transmission and other related services from ATC. During the three months ended March 31, 2026, and 2025, MGE recorded $11.2 million and $10.2 million, respectively, for transmission service. MGE also provides a variety of

operational, maintenance, and project management work for ATC, which is reimbursed by ATC. As of March 31, 2026, and December 31, 2025, MGE had a receivable due from ATC of $3.0 million and $2.5 million, respectively. The receivable is primarily related to transmission interconnection activities at the renewable generation sites. MGE will be reimbursed for these costs after the new generation assets are placed into service.

Taxes - MGE Energy and MGE.

Effective Tax Rate.

The effective income tax rates for the period, computed by dividing income tax expense by income before taxes, were as follows:


	MGE Energy						MGE
Three Months Ended March 31,	2026			2025			2026			2025
Effective income tax rate		10.8	%		13.1	%		9.2	%		11.8	%

The effective tax rates were different than the federal statutory rate primarily due to state income taxes, net of the related federal tax benefit, federal production tax credits (PTC) and investment tax credits (ITC), the amortization of excess deferred taxes, and the impact of non-taxable income related to the equity portion of Allowance for Funds Used During Construction (AFUDC), net of depreciation. For both MGE Energy and MGE, the decrease in the effective tax rate compared to the prior year period was driven primarily by additional federal tax credits associated with renewable generation and energy storage projects, as well as increased non-taxable income related to the equity portion of AFUDC on projects under construction.

Pension and Other Postretirement Plans - MGE Energy and MGE.

MGE maintains qualified and nonqualified pension plans, health care, and life insurance benefits and defined contribution 401(k) benefit plans for its employees and retirees.

The components of net periodic benefit cost, other than the service cost component, are recorded in "Other income, net" on the consolidated statements of income. The service cost component is recorded in "Other operations and maintenance" on the consolidated statements of income. MGE has regulatory treatment and recognizes regulatory assets or liabilities for timing differences between when net periodic benefit costs are recovered and when costs are recognized.

The following table presents the components of net periodic benefit costs recognized.


	Three Months Ended
	March 31,
(In thousands)	2026			2025
Pension Benefits
Components of net periodic benefit cost:
Service cost	$	619		$	651
Interest cost		4,011			4,256
Expected return on assets		(7,736	)		(7,261	)
Amortization of:
Actuarial loss		44			48
Net periodic benefit (credit) cost	$	(3,062	)	$	(2,306	)

Postretirement Benefits
Components of net periodic benefit cost:
Service cost	$	175		$	183
Interest cost		682			760
Expected return on assets		(707	)		(724	)
Amortization of:
Transition obligation		—			1

MGE ENERGY INC 10-Q