Madison, Wis., May 19, 2009—MGE Energy, Inc. (Nasdaq: MGEE) announced today that its regulated subsidiary Madison Gas and Electric (MGE) will expand its Clean Power Partners solar energy program by more than three times.

MGE received permission last week from the Public Service Commission of Wisconsin to increase this pilot program from 300 kilowatts to 1 megawatt, said Gary Wolter, chairman, president and CEO, at the 2009 MGE Energy Annual Meeting.

In 2008, the program's capacity was doubled from its original 150 kilowatts. Clean Power Partners is now fully subscribed with a total of 62 solar installations—40 residential and 22 commercial/industrial projects.

Clean Power Partners encourages customers to install solar photovoltaic systems on their homes or businesses and then sell the energy back to MGE for $0.25 per kilowatt-hour. The solar energy is part of MGE's green pricing program—Green Power Tomorrow.

MGE's green pricing program was recently recognized for having the second highest participation rate of all investor-owned utilities in the country by the U.S. Department of Energy's National Renewal Energy Laboratory.

In addition, MGE ranks in the top 1% nationwide in green power sales as a percentage of total retail electricity sold. MGE ranks sixth out of a total of 850 utilities. The company increased wind power capacity by more than 12 times in 2008 as four new wind farms in Wisconsin and Iowa began production.

Also at the annual meeting today, shareholders marked the company's 100th year of continuous dividend payments. MGE Energy has paid dividends every year since 1909. Only 58 U.S. companies have paid annual dividends for 100 or more years.

H. Lee Swanson, John R. Nevin and Wolter were re-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 137,000 customers in Dane County, Wis., and purchases and distributes natural gas to 141,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.