Madison, Wis., May 18, 2010—MGE Energy, Inc. (Nasdaq: MGEE) announced today that its regulated subsidiary Madison Gas and Electric (MGE) expects a significant decrease in its carbon dioxide (CO2) emissions due to the early progress of its comprehensive, 10-year Energy 2015 plan, said Gary Wolter, chairman, president and CEO, at the 2010 MGE Energy Annual Meeting.

MGE projects a 21% decrease in total CO emissions and a 17% decrease in CO2 rates from 2005 to 2015. The company had originally forecast an 8% decrease in total CO2 emissions and a 10% reduction in CO2 rates by 2015.

Earlier this year, MGE announced that it will meet the major goals of its Energy 2015 plan ahead of schedule. Energy 2015 was introduced in 2006. It detailed the company's plan to ensure a dependable, affordable and environmentally responsible energy supply through the year 2015. The plan was based on feedback from customers. Customer conservation and participation in the green pricing program are major contributors to the plan's success.

Energy 2015 progress:

• More renewable energy – Today, MGE has 12 times the wind capacity that it had when Energy 2015 was announced. Wind capacity has grown from 11 megawatts (MW) to 137 MWs. Nearly 10% of MGE's customers have volunteered to participate in green pricing, one of the highest rates in the country.
• Discontinue burning coal at Blount Generating Station in 2011 – MGE took an additional step in March 2010 to greatly reduce the use of coal in downtown Madison by making natural gas the primary fuel at the plant. The company is still on track to discontinue coal use completely by the end of 2011.
• Secure replacement baseload energy – In February 2010 MGE began receiving energy from a new, cleaner coal facility in Oak Creek, Wis. The facility is equipped with state-of-the-art emissions controls. MGE's ownership totals 100 MWs.
• Increased energy efficiency and conservation – Energy efficiency programs and conservation by customers have saved 423,000 megawatt-hours of electricity since 2005. Electric use per customer is more efficient today than five years ago.

Also at the meeting, F. Curtis Hastings and James L. Possin were elected to three-year terms on the MGE Energy Board of Directors.

MGE Energy is a public utility holding company. Its principal subsidiary, MGE, generates and distributes electricity to 138,000 customers in Dane County, Wis., and purchases and distributes natural gas to 142,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.