MGE Energy: Reports fourth-quarter earnings

Contact
Steven Schultz
Corporate Communications Manager
608-252-7219 | sbschultz@mge.com

Madison, Wis., Feb. 24, 2017—MGE Energy, Inc. (Nasdaq: MGEE) today reported
earnings for the three months ended Dec. 31, 2016, of $14.5 million, or 42
cents per share, compared to $11.2 million, or 32 cents per share, for the
same period in the prior year. MGE Energy reported earnings for the twelve
months ended Dec. 31, 2016, of $75.6 million, or $2.18 per share, compared
to $71.3 million, or $2.06 per share, for the same period in the prior
year.

During the three months ended Dec. 31, 2016, earnings increased compared to
the same period in the prior year resulting from increased electric
consumption due, in part, to an increase in residential customers. In
addition, colder weather in the fourth quarter of 2016 versus the same
period last year led to increased sales of natural gas.

During the twelve months ended Dec. 31, 2016, earnings increased compared
to the same period in the prior year resulting from increased electric
consumption due to a warmer summer in 2016 versus 2015 and an increase in
electric and gas residential customers. In 2016, MGE was serving
approximately 2,500 more electric and gas customers compared to a year ago.

About MGE Energy
MGE Energy is a public utility holding company. Its principal subsidiary,
Madison Gas and Electric, generates and distributes electricity to 149,000
customers in Dane County, Wis., including the City of Madison, and
purchases and distributes natural gas to 154,000 customers in seven
south-central and western Wisconsin counties. MGE’s roots in the Madison
area date back more than 150 years.