1. MGE ISSUES

2. 2 ENERGY 2015 MGE’s plan to meet the energy needs of our customers Solicit customer input Community Energy Conversations

3. 3 ENERGY 2015 (cont’d) Start with Conservation MGE programs saved 100 KW Power Tomorrow Discontinue burning coal at Blount Plant after 2011; Retirement of older units West Campus Cogeneration Facility to provide local generation

4. 4 ENERGY 2015 (cont’d) Power The Future 50 MW in 2009; 50 MW in 2010 Renewables State Renewable Portfolio Standard Green Energy History Market Program Expansion  Triple the program - 1¢ Kwh

5. 5 ENERGY 2015 (cont’d) 3 Wind Projects Building 30 MW wind farm – north central Iowa Purchase power agreement for additional 30 MW Invenergy project – 16.5 MW Why Iowa? Why Now? Solar Demonstration Projects Buy back rate for PV systems- 25¢ Kwh

6. 6 ENERGY 2015 (cont’d) Diversity of Fuels

7. 7 RATE CASE Requested increase of 3.7% for natural gas rates and 5.7% for electric rates Drivers Infrastructure costs (PTF plant and wind – 3.4%) Transmission improvements -.9% Other Cost Controls Hold line O&M costs Hedging – reduce volatility and cost

8. 8 ELECTRIC RELIABILITY North American Electric Reliability Corporation Audit EEI Statistics

9. 9 MG&E

10. 10 MG&E

11. 11 MG&E