MGE Energy Announces Proposed Public Offering of Common Stock

Madison, Wis., May 12, 2020—MGE Energy, Inc. (Nasdaq: MGEE) today announced the commencement of a proposed public offering of 1,300,000 shares of its common stock in an underwritten public offering. In connection with the offering, MGEE will grant the underwriters a 30-day option to purchase up to an additional 195,000 shares of its common stock at the public offering price, less underwriting discounts and commissions. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

MGEE intends to use the net proceeds from the offering for general corporate purposes, including capital expenditures.

Morgan Stanley and BofA Securities are acting as joint book-running managers for the offering.

A shelf registration statement on Form S-3, including a prospectus, related to the shares, has been filed by MGEE with the U.S. Securities and Exchange Commission ("SEC") and has become effective automatically upon filing. The offering will be made only by means of a preliminary prospectus supplement and the accompanying prospectus which will be filed today with the SEC. Copies of the preliminary prospectus supplement and the accompanying prospectus, and the final prospectus supplement, when available, may be obtained from Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or from BofA Securities, Attn: Prospectus Department, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, email: dg.prospectus_requests@bofa.com, or by visiting the SEC's website at www.sec.gov under MGEE's name.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About MGE Energy

MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric (MGE), generates and distributes electricity to 155,000 customers in Dane County, Wis., and purchases and distributes natural gas to 163,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements include the risks and uncertainties related to the proposed offering such as market conditions, the consummation of the offering on the terms described, the anticipated use of the proceeds and the satisfaction of customary closing conditions. Such forward-looking statements are based on MGEE's current expectations, estimates and assumptions regarding future events, which are inherently uncertain. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to revise or update publicly any such forward-looking statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to our business in general, please refer to the "Risk Factors" sections in our preliminary prospectus supplement to be filed with the SEC today, including the documents incorporated by reference therein and our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 26, 2020, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, filed with the SEC on May 7, 2020, and certain of our other reports filed with the SEC.