WPS PROPOSES 200 MW OF SOLAR

Madison Gas and Electric (MGE) and WEC Energy Group (WEC), through its Wisconsin Public Service (WPS) subsidiary, recently announced plans for a partnership on two major solar projects in Wisconsin. MGE, WPS and project developers, Invenergy, and NextEra Energy Resources, filed applications today with the Public Service Commission of Wisconsin for the two Wisconsin projects.

Combined, the utilities would own a total of 300 megawatts (MW).  “This is another step forward as we move toward a more sustainable energy future and deep decarbonization,” said Jeff Keebler, MGE president and CEO. “These projects align with MGE’s short- and long-term carbon reduction goals. If approved, we look forward to the opportunity to grow cost-effective, clean energy to reliably serve our customers into the future.”

“Investing in these solar projects is the first step in our overall plan to add solar capacity to our generation portfolio and save WPS customers more than $100 million over the economic lives of the projects, as compared to projected prices in the power market,” said Gale Klappa, CEO of WPS.

WPS would own 200 MW and MGE 100 MW of the combined output at two locations. The Badger Hollow Solar Farm would be located in southwestern Wisconsin in Iowa County, near the villages of Montfort and Cobb, about 12 miles west of Dodgeville. WPS would own 100 MW and MGE would own 50 MW of Badger Hollow. The project is being developed by Invenergy, North America’s largest privately held renewable energy company based in Chicago, Illinois. The Two Creeks solar project would be located in the Town of Two Creeks and the City of Two Rivers in northeastern Wisconsin, near the Point Beach Nuclear Power Plant. WPS would own 100
MW and MGE would own 50 MW of Two Creeks. The project is being developed by a subsidiary of NextEra Energy Resources, LLC based in Juno Beach, Florida.

The total cost of both projects is expected to be approximately $390 million. If approved by the end of 2018, construction of both projects is expected to begin by spring 2019. Commercial operation of both projects would begin by the end of 2020.

MG&E PLANS TO LOWER ELECTRIC RATES AND RAISE NATURAL GAS RATES

Madison Gas and Electric has announced it is asking for a settlement agreement with the
Wisconsin Public Service Commission which would slightly lower electric rates and slightly
increase natural gas rates for its Dane County customers. If approved, the rate changes would
take effect January 1, 2019, and run through the end of 2020, according to Steven Schultz of
MG&E.

For the typical electric customer, the rate would decrease about $1.33 a month to the end of
2020. A typical MG&E natural gas customer will see a bill increase of around 36 cents per
month in 2019 and 97 cents per month in 2020.

The electric decrease is caused by the tax change impact of 2017 along with the anticipated
savings of a new wind farm currently under construction in Iowa set to come on-line in the
Spring of 2019.

The natural gas increase is due to infrastructure changes including pipeline restructuring to
ensure natural gas delivery. The settlement will be submitted to the Public Service Commission
for approval with a decision expected later in 2018.

MGE ENERGY ANNUAL MEETING SPOTLIGHTED CLEAN ENERGY PROJECTS

The MGE Energy Annual Meeting highlighted clean energy investments, and new technologies. Nearly 1,800 shareholders gathered for the MGE Energy 2018 Annual Meeting during which they heard from company leadership on how Madison Gas and Electric (MGE), is harnessing the power of new technologies to reach clean energy goals. President and CEO Jeff Keebler said MGE is committed to reducing carbon emissions 40 percent by 2030 and at least 80 percent by 2050, a target consistent with the U.S. Mid-Century Strategy for Deep Decarbonization (MCS). The MCS is the U.S. strategy for meeting the goals of the Paris Agreement on climate change to limit global warming to 2 degrees Celsius.

MGE HAS STRONG CREDIT RATINGS

MGE Energy’s regulated utility, Madison Gas and Electric (MGE), continues to have top credit ratings in the nation for regulated utilities. Standard & Poor’s (S&P) and Moody’s give MGE the highest credit ratings for investor-owned, combination utilities.

S&P cites MGE’s effective management of regulatory risk, strong regulatory environment, focus on regulated, vertically integrated electric and natural gas distribution operations and conservative financial policies that ensure strong credit quality.

In its review, Moody’s cites MGE’s supportive regulatory environment that provides revenue and cash flow and stable and healthy credit metrics. Moody’s also states that its stable outlook rating assumes future prudently incurred investments will be recovered.

MG&E CHAIRMAN WOLTER TO STEP DOWN IN OCTOBER

Gary Wolter, Chairman of the Board of MGE Energy and of subsidiary Madison Gas &
Electric, will step down from those positions on October 1. Wolter will remain a member
of the boards of directors, according to documents filed with federal regulators.

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