MGE Energy : 2024 Report
MGEE
Messages from Leadership
Sustainability Snapshot
Environmental
Social
Governance
ESG Data Center
2024 Corporate
Responsibility and
Sustainability Report
This report includes forward-looking statements and estimates of future performance that may differ from actual results because of uncertainties and risks encountered in day-to-day business.
Madison Gas and Electric | 2024 Corporate Responsibility and Sustainability Report
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Our Vision
Messages from LeadershipSustainability Snapshot
Environmental
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ESG Data Center
Thank you for your interest in our ongoing sustainability journey. Our annual Corporate Responsibility and Sustainability Report explores the many ways in which Madison Gas and Electric (MGE) is pursuing a cleaner future and investment in new technologies to benefit all customers in an evolving energy landscape.
Your community energy company continues to make progress toward our carbon reduction goals. We have reduced our carbon emissions by about 40% compared to 2005 levels, putting us halfway to our 2030 goal.
On behalf of all customers, by 2030, we expect to deliver our customers electricity with 80% fewer carbon emissions (based on 2005 levels), and by 2050, MGE expects to deliver net-zero carbon electricity.
We are transitioning our energy supply cost-effectively, engaging customers in global decarbonization strategies, and working with residential and business customers toward the electrification of transportation and other end uses.
In 2023, we continued to grow our use of renewable energy:
The company also received approval to purchase a 10% share of the 300-MW Koshkonong Solar Energy Center, which is expected online in 2026.
Since announcing our original carbon reduction goals in November 2015, MGE has added more than 200 MW of solar and more than 90 MW of wind generation facilities to our portfolio. As a minority owner of coal-fired generation, the company expects coal to be used only as a backup fuel by the end of 2030, and we expect to eliminate it from our ownership portfolio by the end of 2032.
Our customers are more than ever active participants in our shared energy future. We continue to engage customers through our clean energy programs and through our programs to help manage when and how they use energy. Our customer-focused solutions are designed to help MGE meet our goals and to meet our customers where they are-to meet their needs, preferences and their expectations of your community energy company.
Within the last year, we added three new members to our Board of Directors. With oversight from an active and engaged board, we continue to prepare our workforce for the future, from diverse recruitment and thoughtful retention efforts to career development and training to Employee Resource Groups and other engagement activities.
For more than 150 years, your community energy company has evolved with our industry and with those we serve. Our commitments to safety, reliability, resiliency, energy affordability and value help ensure our communities continue to grow and to thrive into
the future.
-Jeff Keebler
Chairman, President and CEO
MGE Energy and Madison Gas and Electric
Madison Gas and Electric | 2024 Corporate Responsibility and Sustainability Report
Messages from Leadership 2
Our Commitment
Messages from LeadershipSustainability Snapshot
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Safe, reliable, affordable and sustainable energy starts with our more than 700 employees, many of whom celebrated the 10th anniversary of our corporate safety initiative this year.
In 2014, MGE launched the initiative to improve our safety culture. Our employee-led Safety Steering Team and Safety Executive Team were established. Shortly thereafter, our first Continuous Improvement (CI) Safety Teams were organized to address improvement opportunities.
Our safety vision statement, developed by one of our employee-led CI Teams, is embraced by our workforce and visible throughout our campus.
We Power Safety.
Work Safe. Home Safe.
It serves as a reminder of our top priority for our employees, customers and communities.
In my role, I oversee safety, sustainability and environmental affairs at MGE, where we embrace the philosophy of continuous improvement. Since establishing our carbon reduction goals, we have said, if we can go further faster by working with our customers, we will. Our recent investments in sustainable energy reflect our commitment to our goals-and reflect our continued progress.
We also continue to explore ways to advance sustainability throughout all our operations. MGE has expanded our use of agrivoltaics through solar grazing. MGE's Tyto Solar, which came online in early 2024, hosts sheep throughout the growing season to manage the brush and ground cover sustainably. The company also continues to explore ways to increase habitat for monarch butterflies and other pollinators at our solar facilities.
Building on our commitment to sustainable energy, MGE established a goal of net-zero methane emissions from our natural gas distribution system by 2035. In addition to our strategies, MGE introduced a renewable natural gas option for customers to offset their emissions from their use of natural gas. By working together, we can achieve our goals and help our customers achieve their own.
With our commitment to increased sustainability is our ongoing commitment to energy affordability. Throughout the past 10 years, which includes MGE's
most recent rate case for the years 2024 and 2025, customer rate increases have been below the rate of inflation. An MGE residential electric customer bill as a percentage of customer wallet at 1.51% is below the Wisconsin utility peer average of 1.67%.
MGE is growing its use of
cost-effective, clean energy while maintaining safety, reliability and affordability and continuing efforts to engage and to empower customers through programs, resources and tools to manage their energy use and costs.
MGE is committed to transparency. Our ESG Data Center hosts additional disclosures, such as our CDP (Carbon Disclosure Project) climate change questionnaire, our Task Force on Climate-Related Financial Disclosures report, our EEI-AGA sustainability reporting templates and more.
Thank you for your interest in MGE and in our sustainability efforts.
-Cari Anne Renlund
Vice President, General Counsel and Secretary MGE Energy and Madison Gas and Electric
Madison Gas and Electric | 2024 Corporate Responsibility and Sustainability Report
Messages from Leadership 3
Messages from Leadership
Sustainability SnapshotEnvironmental
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Sustainability Snapshot
On behalf of all customers, by 2030, MGE expects to deliver customers electricity with 80% fewer carbon emissions, compared to 2005, our baseline, as we work toward
net-zero by 2050.
MGE is working toward
net-zero methane emissions from our
natural gas distribution system by 2035.
MGE has a goal of
100% all-electric or plug-in hybrid
light-duty vehicles by 2030.
In 2024, MGE expanded its use of agrivoltaics by adding sheep at MGE's Tyto Solar to help manage ground cover sustainably.
MGE has ranked in the
top 3 utilities nationwide
MGE has reduced carbon emissions
for the fewest number
of outages for more than
approximately 40% since 2005,
15 years.
our baseline.
The Board of Directors has welcomed
6 new directors since 2018.
We power safety.
Work safe. Home safe.
In 2024, MGE marks its
10-year anniversary of our
journey to safety excellence.
The MGE Foundation
has given more than
By the end of 2032, MGE expects
$8.7 million to 400+
to have eliminated coal
community organizations
as an energy source.
in the last five years.
Madison Gas and Electric | 2024 Corporate Responsibility and Sustainability Report
Sustainability Snapshot 4
Messages from Leadership
Sustainability Snapshot
Environmental Social
Governance
ESG Data Center
2024 Corporate
Responsibility and
Sustainability Report
Environmental
As your community energy company, MGE recognizes its responsibility to preserve and protect the environment while serving our communities with safe, reliable, affordable and sustainable energy. We are proactive and forward-thinking in our stewardship and promote sustainability with our partners, suppliers and employees as we work together to build a cleaner, smarter future.
This report includes forward-looking statements and estimates of future performance that may differ from actual results because of uncertainties and risks encountered in day-to-day business.
Madison Gas and Electric | 2024 Corporate Responsibility and Sustainability Report
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Messages from Leadership
Sustainability Snapshot
Environmental Social
Governance
ESG Data Center
-Jeff Jaeckels
Director Safety, Sustainability
and Environmental Affairs
A message from the Director of Safety, Sustainability and Environmental Affairs
Our commitment to environmental stewardship goes beyond regulatory compliance. Our team in Safety, Sustainability and Environmental Affairs takes a proactive approach to advancing the culture and continual improvement of environmental, safety and sustainability practices throughout our organization. Safety and sustainability are top priorities at MGE. This report highlights how we focus on our sustainability goals and our performance.
Our Environmental and Sustainability Policy
In pursuit of our mission and in support of our commitment to those we serve, MGE:
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Highlights
y With carbon as our target and consistent with global climate science, by 2030, MGE expects to deliver electricity with 80% fewer carbon emissions to MGE electric customers. By 2050, MGE expects to deliver net-zero carbon electricity. As of year-end 2023, MGE has reduced carbon emissions by about 40% since 2005, our baseline.
y Renewable energy continues to play a critical role in MGE's strategy for reducing carbon emissions. In 2023, MGE added nearly 60 megawatts (MW) of wind and solar to its energy supply mix to serve MGE electric customers. Additionally, nearly
200 MW of renewable generation and more than
95 MW of battery storage are expected to be added by the end of 2028.
y MGE continues to transition away from coal-fired generation and has no sole ownership of coal-fired assets. By the end of 2030, MGE expects coal to be used only as a backup fuel at Elm Road Generating Station. By the end of 2032, MGE expects to have eliminated coal as an energy source.
y MGE is expanding its successful clean energy programs for customers. Our green pricing program for electric service added an option that tailors a customer's participation to account for the existing renewable energy resources in MGE's overall generation mix. MGE also has asked State regulators to approve a new community solar program largely based on the original program, Shared Solar. And, MGE has added an option for our gas customers who are interested in renewable natural gas.
y MGE has a goal to achieve net-zero methane emissions from our natural gas distribution system
by 2035. Our strategies for achieving net-zero methane emissions include enhanced leak detection and repair, implementation of cost- effective technologies and processes, and the introduction of renewable natural gas to offset residual emissions. MGE also is piloting new technology to reduce methane emissions when operations are transferred from one gas line to another.
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Messages from Leadership
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Decarbonization goals and strategies
Carbon is our target. MGE is working to achieve deep decarbonization, consistent with global climate science, as quickly, responsibly and 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.
Carbon reduction goals consistent with climate science
In May 2019, we announced a goal of net-zero carbon electricity by the year 2050. MGE was one of the first utilities in the nation to commit to net-zero carbon electricity by mid-century. This target is based on global 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. MGE continues to follow the latest climate science as we work toward carbon reduction targets consistent with the science.
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. This goal surpassed MGE's previous expectation to reduce carbon emissions at least 65% by 2030.
Under our commitment to carbon reductions, by 2030, we expect to deliver electricity with 80% fewer carbon emissions to MGE customers. Similarly, by 2050, we expect to deliver net-zero carbon electricity. We have said since establishing our carbon reduction goals that if we can go further faster by working with our customers, we will.
MGE's carbon goals align with scenarios limiting global warming to 1.5°C and 2°C
2022
2030
2050
40%
80%
Net-Zero
Achieved
Goal
Carbon Goal
0%
Range of reductions
20%
in scenarios to limit
warming to below
40%
2°C and 1.5°C
60%
80%
100%
2005
2020
2030
2040
2050
Baseline year
On behalf of all customers, by 2030, we expect to deliver electricity with 80% fewer carbon emissions to our customers.
Progress toward our carbon reduction goals
With more than one billion dollars in investment in clean energy expected from 2015 through 2028, renewable energy will 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.
Madison Gas and Electric | 2024 Corporate Responsibility and Sustainability Report
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Clean Energy
MGE's goals and decarbonization strategies are aligned with climate science. We're doing everything we can today to lower carbon emissions as quickly and as cost-effectively as we can.
Cost-effective renewable energy will continue to play a critical role in our strategy for reducing carbon emissions, which is reflected in our recent clean energy investments. We continue to evaluate potential new wind and solar sites beyond what is currently planned.
From year to year, the sources used to serve our customers vary in percentage based on how much the sun shines, how much the wind blows and other energy market conditions. In 2023, renewable energy accounted for about 20% of MGE's overall generation mix serving customers. MGE expects to achieve our goal under our Energy 2030 framework of 25% renewable energy by 2025.
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Recent clean energy projects
Upcoming clean energy projects
Clean energy projects pending regulatory approval
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Disclaimer
MGE Energy Inc. published this content on December 12, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on December 12, 2024 at 15:44:08.486.