MGE Energy (MGEE)

Regulatory Assets/Liabilities

Regulatory assets represent costs that have been deferred to future periods when it is probable that the regulator will allow future recovery of those costs through rates. MGE bases its assessment of recovery by precedents established by the regulatory body. Regulatory liabilities represent previous collections from customers that are expected to be refunded to customers in future periods. Regulatory assets and regulatory liabilities typically include deferral of energy costs, the normalization of income taxes, the deferral of certain operating expenses, and non-SFAS No. 143 removal cost. The accounting for these regulatory assets and liabilities is in accordance with the provisions of SFAS No. 71, Accounting for the Effects of Certain Types of Regulation.

MGE continually assesses whether the regulatory assets and liabilities meet the criteria for probability of future recovery. This assessment considers factors such as changes in the regulatory environment, recent rate orders to other regulated entities under the same jurisdiction, and the status of any pending or potential deregulation legislation. If future recovery of costs becomes no longer probable, the assets and liabilities would be recognized as current-period revenues or expenses.

Amortization of regulatory assets and liabilities is provided over the recovery period as allowed in the related regulatory agreement.

Regulatory Assets/Liabilities

Regulatory assets represent costs that have been deferred to future periods when it is probable that the regulator will allow future recovery of those costs through rates. MGE bases its assessment of recovery by precedents established by the regulatory body. Regulatory liabilities represent previous collections from customers that are expected to be refunded to customers in future periods. Regulatory assets and regulatory liabilities typically include deferral of energy costs, the normalization of income taxes, the deferral of certain operating expenses, and non-SFAS No. 143 removal cost. The accounting for these regulatory assets and liabilities is in accordance with the provisions of SFAS No. 71, Accounting for the Effects of Certain Types of Regulation.

MGE continually assesses whether the regulatory assets and liabilities meet the criteria for probability of future recovery. This assessment considers factors such as changes in the regulatory environment, recent rate orders to other regulated entities under the same jurisdiction, and the status of any pending or potential deregulation legislation. If future recovery of costs becomes no longer probable, the assets and liabilities would be recognized as current-period revenues or expenses.

Amortization of regulatory assets and liabilities is provided over the recovery period as allowed in the related regulatory agreement.

Regulatory
Assets/Liabilities

Regulatory assets represent costs that have been deferred
to future periods when it is probable that the regulator will allow future
recovery of those costs through rates. MGE bases its assessment of recovery by
precedents established by the regulatory body. Regulatory liabilities represent
previous collections from customers that are expected to be refunded to
customers in future periods. Regulatory assets and regulatory liabilities
typically include deferral of energy costs, the normalization of income taxes,
the deferral of certain operating expenses, and non-SFAS No. 143
removal cost. The accounting for these regulatory assets and liabilities is in
accordance with the provisions of SFAS No. 71, Accounting for the
Effects of Certain Types of Regulation.

MGE continually assesses whether the regulatory assets
and liabilities meet the criteria for probability of future recovery. This
assessment considers factors such as changes in the regulatory environment,
recent rate orders to other regulated entities under the same jurisdiction, and
the status of any pending or potential deregulation legislation. If future
recovery of costs becomes no longer probable, the assets and liabilities would
be recognized as current-period revenues or expenses.

Amortization of regulatory assets and liabilities is
provided over the recovery period as allowed in the related regulatory
agreement.

Regulatory Assets/Liabilities

Regulatory assets represent costs that have been deferred to future periods when it is probable that the regulator will allow future recovery of those costs through rates. MGE bases its assessment of recovery by precedents established by the regulatory body. Regulatory liabilities represent previous collections from customers that are expected to be refunded to customers in future periods. Regulatory assets and regulatory liabilities typically include deferral of energy costs, the normalization of income taxes, the deferral of certain operating expenses, and non-SFAS No. 143 removal cost. The accounting for these regulatory assets and liabilities is in accordance with the provisions of SFAS No. 71, Accounting for the Effects of Certain Types of Regulation.

MGE continually assesses whether the regulatory assets and liabilities meet the criteria for probability of future recovery. This assessment considers factors such as changes in the regulatory environment, recent rate orders to other regulated entities under the same jurisdiction, and the status of any pending or potential deregulation legislation. If future recovery of costs becomes no longer probable, the assets and liabilities would be recognized as current-period revenues or expenses.

Amortization of regulatory assets and liabilities is provided over the recovery period as allowed in the related regulatory agreement.

Regulatory
Assets/Liabilities

Regulatory
assets represent costs that have been deferred to future periods when it is
probable that the regulator will allow future recovery of those costs through
rates. MGE bases its assessment of recovery by precedents established by the
regulatory body. Regulatory liabilities represent previous collections from
customers that are expected to be refunded to customers in future periods.
Regulatory assets and regulatory liabilities typically include deferral of
energy costs, the normalization of income taxes, the deferral of certain
operating expenses, and non-SFAS No. 143 removal cost. The accounting for
these regulatory assets and liabilities is in accordance with the provisions of
SFAS No. 71, Accounting for the Effects of Certain Types of
Regulation.

MGE continually
assesses whether the regulatory assets and liabilities meet the criteria for
probability of future recovery. This assessment considers factors such as
changes in the regulatory environment, recent rate orders to other regulated
entities under the same jurisdiction, and the status of any pending or potential
deregulation legislation. If future recovery of costs becomes no longer
probable, the assets and liabilities would be recognized as current-period
revenues or expenses.

Amortization of
regulatory assets and liabilities is provided over the recovery period as
allowed in the related regulatory agreement.

Regulatory Assets/Liabilities

Regulatory assets represent costs that have been deferred to future periods when it is probable that the regulator will allow future recovery of those costs through rates. MGE bases its assessment of recovery by precedents established by the regulatory body. Regulatory liabilities represent previous collections from customers that are expected to be refunded to customers in future periods. Regulatory assets and regulatory liabilities typically include deferral of energy costs, the normalization of income taxes, and the deferral of certain operating expenses. The accounting for these regulatory assets and liabilities is in accordance with the provisions of SFAS No. 71.

MGE continually assesses whether the regulatory assets meet the criteria for probability of future recovery. This assessment considers factors such as changes in the regulatory environment, recent rate orders to other regulated entities under the same jurisdiction, and the status of any pending or potential deregulation legislation. If future recovery of costs becomes no longer probable, the assets and liabilities would be recognized as current-period revenues or expenses.

Amortization of regulatory assets is provided over the recovery period as allowed in the related regulatory agreement.

Regulatory Assets/Liabilities

Regulatory assets represent costs that have been deferred to future periods when it is probable that the regulator will allow future recovery of those costs through rates. MGE bases its assessment of recovery by precedents established by the regulatory body. Regulatory liabilities represent previous collections from customers to fund future expected costs or amounts received in rates that are expected to be refunded to customers in future periods. These costs typically include deferral of energy costs, the normalization of income taxes, and the deferral of losses incurred on debt retirements. The accounting for these regulatory assets and liabilities is in accordance with the provisions of SFAS No. 71.

MGE continually assesses whether the regulatory assets meet the criteria for probability of future recovery. This assessment considers factors such as changes in the regulatory environment, recent rate orders to other regulated entities under the same jurisdiction, and the status of any pending or potential deregulation legislation. If future recovery of costs becomes no longer probable, the assets and liabilities would be recognized as current-period revenues or expenses.

Amortization of regulatory assets is provided over the recovery period as allowed in the related regulatory agreement.