MGE Energy reports third-quarter earnings

Madison, Wis., Nov. 6, 2012——MGE Energy, Inc. (Nasdaq: MGEE) today reported
earnings for the three months ended Sept. 30, 2012, of $23.6 million, or
$1.02 per share, compared to $21.0 million, or 91 cents per share, for the
same period in the prior year.

For the quarter ending Sept. 30, 2012, the company experienced a 5.1%
increase in residential electric sales reflecting higher customer demand
driven by warmer-than-normal weather in July 2012, compared to the same
period in the prior year. The average temperature in July 2012 was 79.7
degrees compared to normal average temperature of 71.9 degrees. In July
2011 the average temperature was 76.9 degrees. Cooling degree days (a
measure for determining the impact of weather during the cooling season)
increased by 19% compared to the prior period.

Madison Gas and Electric (MGE) has experienced fuel-related savings in 2012
that are expected to be returned to customers in the future. As of Sept.
30, 2012, $5.9 million was deferred in fuel-related cost savings under the
Wisconsin fuel rules mechanism. The 2012 fuel savings could increase or
decrease by year-end and are subject to review by the Public Service
Commission of Wisconsin.

MGE Energy is a public utility holding company. Its principal subsidiary,
MGE, generates and distributes electricity to 139,000 customers in Dane
County, Wis., and purchases and distributes natural gas to 144,000
customers in seven south-central and western Wisconsin counties. MGE’s
roots in the Madison area date back more than 150 years.