Cold weather boosts MGE earnings

MGE Energy on Wednesday reported the past cold winter gave a boost to its first-quarter earnings.

Earnings from its gas utility increased $1.1 million, or 16.5 percent, compared to a year ago. The increase was primarily driven by higher retail therm sales of 12.9 percent during the quarter as a result of colder weather. Heating degree days were 12.2 percent higher for the period compared to last year.

Another contributor was an increase in revenues from the recovery of costs related to MGE Energy's construction activities. As a result of the construction activities at Elm Road and the Top of Iowa III wind project, MGE Energy recognized $1.5 million in additional pretax income in the first quarter,  compared to the same period a year ago. The 29.7 megawatt Top of Iowa III wind project went into production during the first quarter of 2008.

First-quarter electric retail kilowatt-hour sales increased 1.9 percent compared to a year ago. The revenue generated from increased sales was offset by fuel and purchased power prices rising $2.6 million, or 7.5 percent, during the first quarter compared to a year ago.

MGE Energy's principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 136,000 customers in Dane County and purchases and distributes natural gas to 140,000 customers in seven south-central and western Wisconsin counties.