Madison Gas and Electric Co: Increases dividend for 38th consecutive year

Stephen R. Kraus
Manager – Media Relations
Madison Gas and Electric Co.
E-mail address: [email protected]

Madison, Wis., Aug. 16, 2013—The board of directors of MGE Energy, Inc.
(Nasdaq: MGEE) today increased the regular quarterly dividend to $0.4076
per share on the company’s common stock. The dividend is payable Sept. 15, 2013, to shareholders of record Sept. 1, 2013. With this increase, the new dividend is equivalent to an annual rate of $1.63 per share.

The company has increased its dividend annually for 38 consecutive years. Over this time period, MGE Energy’s dividend has had a compound annual growth rate of approximately 3%. The company has paid cash dividends for more than 100 years.

“Today’s action by our Board of Directors shows MGE Energy’s commitment to shareholder value. The company is proud of its dividend record, which is
due to our consistently strong operational performance,” said Gary Wolter, chairman, president and CEO.

MGE Energy is listed as a “Dividend Achiever” by Mergent, Inc., a financial information publisher for more than a century. According to Mergent,
“Dividend Achievers have demonstrated the ability to consistently increase dividend payments over a substantial period of time, through volatile
markets and challenging political climates.”

About MGEE
MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric (MGE), generates and distributes electricity to
140,000 customers in Dane County, Wis., and purchases and distributes natural gas to 145,000 customers in seven south-central and western Wisconsin counties. MGE’s roots in the Madison area date back more than 150 years.