October 31, 2008

MGE Increases Wind Capacity By 12 Times in 2008, Adds Another Major Wind Resource

Madison Gas and Electric (MGE) increased wind power capacity by more than 12 times in 2008 as four new wind farms in Wisconsin and Iowa began production. The most recent addition to MGE's renewable energy portfolio is a 10-year agreement with Osceola Wind Power II, LLC, a subsidiary of FPL Energy, to purchase 50 megawatts of wind energy.

"With strong customer support, MGE increased wind capacity from 11 to 137 megawatts this year alone," said Gary J. Wolter, MGE chairman, president and CEO. "This exceeds the goal in our Energy 2015 plan, which set out to increase renewable energy up to ten fold."

The latest green power comes from FPL Energy's Endeavor II Wind Energy Center in northwest Iowa (Osceola and Dickinson counties), an area with some of the most robust wind resources in the Midwest. The new facility started operation this week.

Renewable energy is expected to account for more than 12% of MGE's total energy supply in 2009, up from 1.6% in 2007. The additional wind energy allows continued expansion of MGE's Green Power Tomorrow program. About 10% of MGE's residential customers participate in the program, the highest rate of all investor-owned utilities in the United States.

Earlier in the year, MGE added 16 megawatts from a wind farm near Fond du Lac, Wis., and 60 megawatts from two wind farms in north-central Iowa. In 1999, MGE built its first wind farm of 11 megawatts, at the time the largest wind farm east of the Mississippi River.

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 parent company is MGE Energy (Nasdaq: MGEE). The company's roots in the Madison area date back more than 150 years.