Corporate Responsibility and Sustainability Report - MGE Energy, Inc. - Madison, Wisconsin

Corporate Responsibility and Sustainability Report

Madison Gas and Electric (MGE) publishes an annual Corporate Responsibility and Sustainability Report. MGE is committed to helping customers, investors and other stakeholders better understand our strategies, risks, challenges and opportunities as we transition to a more sustainable future. 

The 2024 report features information about MGE's corporate strategy and climate-related matters; safety and operations; customer and employee engagement; risk management; and governance and oversight. Highlights include: 

  • MGE’s plans and strategies to reduce carbon at least 80% by 2030 as it works with customers toward achieving net-zero carbon electricity by 2050.
  • MGE’s goal and plans to achieve net-zero methane emissions from its natural gas distribution system by 2035.
  • MGE’s ongoing transition away from coal-fired generation and plans to eliminate it from the company's portfolio by the end of 2032. By the end of 2030, MGE expects coal to be used only as a backup fuel at the Elm Road Generating Station, which plans to transition to natural gas.   
  • More than one billion dollars in clean energy investment is expected from 2015 through 2028. As of year-end 2023, MGE has reduced carbon emissions by about 40% since 2005, our baseline. 
  • MGE is partnering on a first-of-its-kind in the United States long-duration energy storage system that would be capable of providing at least 10 hours of energy storage, if approved by State regulators. Known as the Columbia Energy Storage Project, the 18-megawatt project received an award for a cooperative agreement with the U.S. Department of Energy in July 2024 to support the construction of this innovative project.  
  • Our green pricing program for electric service, Green Power Tomorrow, added a new customer option. MGE also has asked State regulators to approve a new community solar program. And, MGE added an option for customers interested in renewable natural gas.
  • MGE continues to be top-ranked for electric reliability, placing second for the fewest number of electric outages per customer, according to the most recent results from an annual industry survey including more than 75 electric utilities nationwide. MGE crews also continue to earn high marks when notified of a potential natural gas emergency with MGE’s total response time ranking in the top 10% of a nationwide industry survey, based on 2023 data.
  • MGE works with customers, stakeholders, municipalities and other community partners to grow the use of electric vehicles and to facilitate charging options throughout our community.
  • MGE maintains relationships with many different sectors in our community and works in partnership with hundreds of local organizations and community stakeholders to reach customers who may be more difficult to reach directly due to either language or cultural barriers or other reasons.
  • The company’s charitable giving benefiting local communities. In the last five years, the company’s philanthropic arm, the MGE Foundation, has given more than $8.7 million to more than 400 nonprofit organizations.

Targeting Net-Zero Carbon Electricity

Carbon is our target. MGE is working to achieve deep decarbonization, consistent with global climate science, as quickly, responsibly and as cost-effectively as we can. As MGE decarbonizes the electric grid—transitioning our energy supply mix to greater use of renewables—energy efficiency and electrification by our customers become more powerful in reducing carbon emissions.

In May 2019, MGE announced a goal of net-zero carbon electricity by 2050. This target is based on climate science and is consistent with the work of the Intergovernmental Panel on Climate Change (IPCC) and its assessment of limiting global temperature increases to 1.5 degrees Celsius. In January 2022, we built on previously set carbon emissions goals for 2030, announcing our goal to reduce carbon at least 80% by 2030 from 2005 levels as we work toward achieving net-zero carbon electricity.

Under our commitment to carbon reductions, by 2030, we expect to deliver electricity with 80% fewer carbon emissions to MGE electric customers. Similarly, by 2050, we expect to deliver net-zero carbon electricity to our customers.

"MGE is committed to corporate responsibility, to environmental leadership and to a more sustainable energy future for the benefit of our customers, investors and the broader community," said Chairman, President and CEO Jeff Keebler. "By working with customers to decarbonize our energy supply, advance energy efficiency and electrify transportation, we can meet our goal of net-zero carbon electricity by 2050. If we can go further faster through the use of new technologies and partnerships with our customers and communities, we will.”

MGE's commitment aligns with the U.S. Mid-Century Strategy (MCS) for Deep Decarbonization. The MCS is the U.S. strategy for meeting the goals of the Paris Agreement. Both the Intergovernmental Panel on Climate Change (IPCC) and the MCS rely on: 

  • Decarbonizing electric generation 
  • Using energy efficiently 
  • Electrifying other energy uses, including transportation 

These are the strategies MGE is pursuing and will continue to pursue to achieve deep decarbonization. 
 

ESG Data Center

Our commitment to transparency and disclosure 
Our ESG Data Center has data, reports, including our Task Force on Climate-Related Financial Disclosures Report, and other environmental, social and governance (ESG) related information.  

CDP (Carbon Disclosure Project)

Disclosure Insight Action logo Edison Electric Institute logo

MGE submits data to the global environmental impact disclosure platform, CDP. MGE’s climate change questionnaire is available here.

EEI-AGA ESG/sustainability reporting templates
MGE also continues to participate in the Edison Electric Institute's (EEI) and American Gas Association’s (AGA) environmental, social, governance (ESG)/sustainability-related reporting templates. EEI members represent U.S. investor-owned electric companies. AGA members represent U.S. natural gas utility companies. 

The quantitative template includes data related to MGE's energy portfolio (generation and capacity), emissions, capital expenditures, and human and natural resources. The qualitative template includes information related to our company's management and oversight of and strategies for transitioning toward deep decarbonization and greater sustainability. These templates are voluntary and industry-specific.

MGE’s Commitment to Diversity, Equity and Inclusion and our EEO-1 Report
As part of our commitment to transparency and disclosure, we provide MGE’s EEO-1 data, which serves as a snapshot in time of the organization’s workforce demographic data provided annually to the U.S. Equal Employment Opportunity Commission.