Key Highlights

  • Third-quarter Earnings were USD 56.4 million, or USD 1.48 per diluted share, compared with USD 44.5 million, or USD 1.22, in the same period a year earlier.
  • Electric Utility earnings rose to USD 47.9 million from USD 36.3 million, while the Gas Utility posted a seasonal loss of USD 3.6 million against USD 2.8 million.
  • Nine-month earnings reached USD 138.2 million, or USD 3.70 per diluted share, up from USD 112.6 million, or USD 3.08.
  • Cooling degree days reached 571 against 504 a year earlier and a normal level of 509, lifting residential electric sales Volume by about 6%.

Electric Rate Base Growth and Hot Weather Lift Third-Quarter Earnings

MGE Energy (NASDAQ:MGEE) filed its Quarterly Report on November 4, 2026, covering the three months to September 30. Net Income rose to USD 56.4 million, and the main utility subsidiary, MGE, earned USD 45.2 million versus USD 34.1 million. The company attributes the Electric Utility gain to a larger rate base from investments approved in the 2026/2027 rate case and higher Equity AFUDC on projects such as Koshkonong, High Noon and Sunnyside. Electric Revenue increased USD 17.4 million to USD 172.7 million, including USD 5.5 million of revenue subject to refund and USD 4.1 million from sales to the market, which are largely offset by costs.

Segment Mix, Transmission Income and Venture Gains

Nonregulated Energy contributed USD 6.7 million versus USD 6.3 million, and Transmission Investments USD 2.9 million versus USD 2.4 million, thanks to higher equity earnings from the Investment in ATC. The All Other segment earned USD 2.5 million, with Venture Capital fund gains cited for the nine-month increase. Retail electric sales rose 4.0% in volume to 953.6 million kilowatt-hours, though sales to the market fell 25.0% in volume. Rates charged to retail customers were USD 2.8 million higher than a year earlier after the regulator authorized a 0.15% electric increase for 2026. A 3.63% electric increase is scheduled for 2027, and a fuel plan would trim that to 2.31%.

Renewable Buildout, Financing Authority and Cost Risks

The utility lists solar projects with estimated share of costs of USD 539 million, battery projects of USD 200 million and wind of USD 73 million, with MGE Energy (NASDAQ:MGEE) Subsidiary MGE receiving approval to recover 100% of AFUDC. On September 30, 2026, the regulator approved up to USD 800 million of long-term Debt through 2029 and USD 250 million of short-term debt. The company also has at-the-market and forward equity programs. Risks include solar Import rules and tariffs, which could raise project costs, and uncertainty about large-load customers. Deferred fuel savings of USD 7.6 million await regulatory review in 2027. The Elm Road Units are planned to move away from coal by the end of 2032. A Dividend of USD 0.508 per share was declared against USD 0.475.

Where Things Stand

Rate base growth and a hotter summer, not a one-off, explain most of the increase. MGE Energy (NASDAQ:MGEE) raised third-quarter earnings per diluted share by about 21% (calculated) to USD 1.48, with Electric Utility earnings up USD 11.6 million (calculated) and cooling degree days 13.3% above last year. The filing gives no numeric earnings guidance. Watch the regulator's decision on the 2027 fuel plan expected by the end of 2026, construction costs on solar and battery projects, Tariff effects and any large-load customer announcements.