MGE Energy: Increases dividend for 42nd consecutive year

Contact:

Margaret Collins

mcollins@mge.com

(608) 252-7088

Madison, Wis., Aug. 18, 2017—The board of directors of MGE Energy, Inc.
(Nasdaq: MGEE) today increased the regular quarterly dividend rate by
nearly 5% to $0.3225 per share on the company’s common stock. The dividend
is payable Sept. 15, 2017, to shareholders of record Sept. 1, 2017. This
increase, which is the largest in the last 30 years, raises the annual
dividend rate by 6 cents from $1.23 per share to $1.29 per share.

“Today’s action by our Board demonstrates confidence in our long-term
strategy of providing solid returns for our shareholders,” said Gary
Wolter, MGE Energy’s chairman. “Our dividend is supported by the financial
strength of our company and our commitment to the dividend, which we have
paid for more than one hundred consecutive years.”

MGE Energy has increased shareholder dividend payouts annually for 42
consecutive years.