Business Context and Reporting Period
This Form 8-K filing by MGE Energy, Inc. and Madison Gas and Electric Company covers the event date of February 2, 2010. The report details the completion of final performance testing and the commencement of commercial operations for Elm Road Unit 1, a 615-megawatt coal-fired generating unit located in Oak Creek, Wisconsin.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures. It focuses on operational milestones rather than financial statement data.
Material Changes
- Operational Status: Elm Road Unit 1 was placed into commercial operation on February 2, 2010.
- Ownership Structure: MGE Energy owns an 8.33% interest in the unit through its subsidiary, MGE Power Elm Road, LLC.
- Lease Commencement: The base term of the facility lease agreement for Unit 1, leased to Madison Gas and Electric Company, commenced on February 2, 2010.
Outlook and Management Commentary
Bechtel Power Corporation, the contractor, is currently targeting the turnover of the second 615-megawatt generating unit in the fall of 2010. The facility leases were authorized by the Public Service Commission of Wisconsin under state laws permitting financing of new generation through facility leases.
Investor Verification Points
- Verify the specific terms and financial impact of the facility lease agreement for Elm Road Unit 1.
- Confirm the projected timeline for the commercial operation of Elm Road Unit 2 (targeted for fall 2010).
- Review Note 6 of the Form 10-Q for the quarter ended September 30, 2009, for detailed financial information regarding the Elm Road Units.