MGE Expands Leadership in Renewable Energy

MADISON, Wis.--(Business Wire)--
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.

MGE Energy, Inc.
Steve Kraus
Manager - Media Relations
608-252-7907
skraus@mge.com

Copyright Business Wire 2009