Madison, Wis., May 20, 2008—MGE Energy, Inc. (Nasdaq: MGEE) announced today that its regulated subsidiary Madison Gas and Electric (MGE) has the highest green pricing participation rate of any investor-owned utility in the country. More than 10% of our residential customers are now purchasing clean wind and solar energy.

In January 2008, MGE rolled out its expanded Green Power Tomorrow program. Within approximately four months, MGE's green program grew by more than nine times, said Gary Wolter, chairman, president and CEO, at the 2008 MGE Energy Annual Meeting.

Under the previous program, MGE sold roughly 15 million kilowatt-hours of energy per year. With the new customer sign-ups, energy will now exceed 135 million kilowatt-hours per year.

Approximately 12,000 residential customers are buying clean, renewable energy. Most customers are choosing to buy enough green power to offset 100% of the carbon dioxide emissions from their electricity use. For an average household, the cost is about an extra $6 per month.

In 2007, MGE made investments and purchases to increase its wind energy capacity by nearly eight times—from 11 to 87 megawatts. MGE constructed a new 30-megawatt wind farm in Iowa and is purchasing wind energy from two other projects, one in Wisconsin and one in Iowa.

MGE also is doubling the amount of solar energy available in its pilot program called Clean Power Partners. Under this program, customers can install solar photovoltaic systems on their home or businesses and then sell that energy back to MGE.

Also at the meeting today, MGE Energy shareholders reelected directors Regina M. Millner and Londa J. Dewey.

MGE Energy is a public utility holding company. Its principal subsidiary, MGE, generates and distributes electricity to 136,000 customers in Dane County, Wis., and purchases and distributes natural gas to 140,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.