Madison, Wis., June 7, 2007—MGE Energy, Inc.'s (Nasdaq: MGEE) regulated subsidiary, Madison Gas and Electric (MGE), received approval from the Public Service Commission of Wisconsin to build and own 30 megawatts of renewable energy at a wind farm complex near Mason City, Iowa. The company will invest $56 million in the project, which is expected to go online in the last quarter of 2007.

The project is part of MGE's plan to increase its wind power portfolio by nearly eight times. The company will be the first investor-owned utility in Wisconsin to meet the state's 2015 renewable energy requirement.

MGE Energy is a public utility holding company. Its principal subsidiary, MGE, generates and distributes electricity to nearly 135,000 customers in Dane County, Wis., and purchases and distributes natural gas to more than 138,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.