v3.26.3
Pension and Other Postretirement Plans
 9 Months Ended
Sep. 30, 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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Pension Benefits

 

 

 

 

 

 

 

 

 

 

 

 

Components of net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

595

 

 

$

653

 

 

$

1,797

 

 

$

1,959

 

Interest cost

 

 

3,992

 

 

 

4,285

 

 

 

12,065

 

 

 

12,854

 

Expected return on assets

 

 

(7,679

)

 

 

(7,254

)

 

 

(23,205

)

 

 

(21,761

)

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial loss

 

 

50

 

 

 

75

 

 

 

153

 

 

 

225

 

Net periodic benefit (credit) cost

 

$

(3,042

)

 

$

(2,241

)

 

$

(9,190

)

 

$

(6,723

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement Benefits

 

 

 

 

 

 

 

 

 

 

 

 

Components of net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

176

 

 

$

186

 

 

$

528

 

 

$

557

 

Interest cost

 

 

679

 

 

 

757

 

 

 

2,038

 

 

 

2,271

 

Expected return on assets

 

 

(709

)

 

 

(678

)

 

 

(2,128

)

 

 

(2,036

)

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

Transition obligation

 

 

—

 

 

 

1

 

 

 

—

 

 

 

2

 

Actuarial gain

 

 

(194

)

 

 

(161

)

 

 

(583

)

 

 

(482

)

Net periodic benefit (credit) cost

 

$

(48

)

 

$

105

 

 

$

(145

)

 

$

312

 

 

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. For the three months ended September 30, 2025, MGE did not recover any previously deferred pension and other postretirement costs. For the nine months ended September 30, 2025, MGE recovered $0.7 million. These costs have not been reflected in the table above.