v3.26.1
Pension and Other Postretirement Plans
 3 Months Ended
Mar. 31, 2026
Retirement Benefits [Abstract]  
Pension and Other Postretirement Plans 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

 

Actuarial gain

 

 

(181

)

 

 

(148

)

Net periodic benefit (credit) cost

 

$

(31

)

 

$

72

 

 

As approved by the PSCW, MGE is allowed to defer differences between actual employee benefit plan costs and costs reflected in current rates. The deferred costs may be recovered or refunded in MGE's next rate filing. In 2026, MGE is refunding over-collected costs from previous years. During the three months ended March 31, 2025, MGE recovered $0.6 million. These costs have not been reflected in the table above.