MGE's Annual Corporate Responsibility and Sustainability Report highlights MGE's ongoing clean energy transition and progress toward its industry-leading carbon reduction goals.

Madison Gas and Electric (MGE) has published its annual Corporate Responsibility and Sustainability Report, detailing its environmental, social and governance (ESG) commitments and progress toward the company's sustainability goals, including its goal of net-zero carbon electricity by 2050.

MGE is working to achieve deep decarbonization, consistent with global climate science, as quickly, responsibly and cost-effectively as we can. With more than one billion dollars in investment in clean energy and battery storage expected from 2015 through 2028, renewable energy will continue to play a significant role in helping to achieve our goals of at least an 80% reduction in carbon by 2030 from 2005 levels and net-zero carbon electricity by 2050.

As of year-end 2023, MGE has reduced carbon emissions by about 40% since 2005, our baseline. With completed projects, projects currently under construction and proposed projects awaiting regulatory approval, MGE will have added more than 500 megawatts (MW) of renewable capacity and more than 95 MW of battery storage from 2015 through 2028.

MGE continues to transition away from coal-fired generation and has no sole ownership of coal-fired assets. By the end of 2032, MGE expects to have eliminated coal from its ownership portfolio.

"Carbon is our target. On behalf of all MGE customers, by 2030, we expect to deliver electricity with 80% fewer carbon emissions, and by 2050, we expect to deliver net-zero carbon electricity," said Chairman, President and CEO Jeff Keebler. "We are transitioning our energy supply cost-effectively, engaging customers in decarbonization strategies and working with residential and business customers toward the electrification of transportation and other end uses. We are working with our customers to create a more sustainable future while ensuring continued top-ranked electric reliability and affordability for our communities."

MGE remains a national leader in electric reliability. MGE placed second for the fewest number of electric outages per customer in 2023, according to an annual industry survey including more than 75 electric utilities nationwide. MGE also continues to earn high marks when notified of a potential natural gas emergency, with our total response time in 2023 ranking in the top 10% of a nationwide industry survey of more than 75 natural gas utilities.

Targeting net-zero methane emissions

More than half of our greenhouse gas (GHG) emissions come from sources already included in our net-zero carbon electricity goal. That includes emissions from our fossil-fueled electric generation facilities and purchased power agreements.

Building on our sustainability and clean energy goals, MGE has a goal to achieve net-zero methane emissions from our natural gas distribution system by 2035. In addition to proactive steps MGE already has taken, strategies for achieving net-zero methane emissions include enhanced leak detection and repair, the implementation of cost-effective technologies and processes, and exploring the use of renewable natural gas (RNG). In 2024, MGE introduced a new RNG option for customers to offset their GHG emissions from their natural gas use. MGE is the first utility in Wisconsin to offer this type of RNG option to customers.

Other report highlights

The report and our ESG Data Center feature information about MGE's corporate strategy and climate-related matters, safety and operations, customer and employee engagement, risk management, and governance and oversight. Other highlights include:

• Expanding our use of agrivoltaics beyond pollinator habitats to include the use of sheep for solar grazing at our Tyto Solar facility. The sheep are able to manage the ground cover under and around the solar panels in a sustainable way.
• Developing new options for customers interested in renewable energy for their home or business.
• Partnering to propose 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. The 18-MW project received an award for a cooperative agreement with the U.S. Department of Energy in July 2024 to support its construction.
• Working with customers to grow and to manage electric vehicle (EV) charging.
• Partnering with hundreds of local organizations and community stakeholders to reach customers with energy efficiency and conservation, safety and other information.
• Supporting our communities through charitable giving by the company's philanthropic arm, which has given more than $8.7 million to more than 400 nonprofit organizations.
• Partnering to conduct ongoing training of our All Hazards Response Plan. In 2024, MGE informally activated the plan for a major training exercise with local, state and federal partners.
• Welcoming three new directors in 2024 as part of ongoing board refreshment.

Commitment to transparency and disclosure

MGE is committed to helping customers, investors and other stakeholders better understand the company's goals, long-term strategies and progress toward achieving its goals.

Edison Electric Institute (EEI) and American Gas Association (AGA) ESG Reporting

MGE continues to participate in EEI's and AGA's ESG sustainability reporting templates. The voluntary, industry-specific templates include both qualitative and quantitative information. 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 the company's strategies for transitioning toward deep decarbonization and greater sustainability.

MGE's EEI-AGA templates are available in our ESG Data Center, which includes other disclosures.

About MGE

MGE generates and distributes electricity to 163,000 customers in Dane County, Wis., and purchases and distributes natural gas to 176,000 customers in seven south-central and western Wisconsin counties. MGE's parent company is MGE Energy, Inc. The company's roots in the Madison area date back more than 150 years.

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