MGE Energy, Inc. (MGEE): Analyse du pilon [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de la transformation de l'énergie, MGE Energy, Inc. apparaît comme un acteur charnière naviguant des courants politiques, économiques et environnementaux complexes. Cette analyse complète du pilon dévoile les défis et les opportunités à multiples facettes auxquelles sont confrontés cet utilité basée au Wisconsin, révélant comment les adaptations stratégiques des énergies renouvelables, de l'innovation technologique et de la conformité réglementaire rehapent son modèle commercial. Des incitations énergétiques vertes au niveau de l'État aux technologies de grille de pointe, MGE Energy se tient à l'intersection du développement durable et de la résilience des entreprises, offrant un récit convaincant de la gestion des services publics moderne à une époque de changements environnementaux et technologiques sans précédent.

MGE Energy, Inc. (MGEE) - Analyse du pilon: facteurs politiques

Les politiques des énergies renouvelables du Wisconsin soutiennent la transition d'énergie propre de MGE Energy

Les mandats du plan d'énergie propre du Wisconsin 30% Génération d'énergie renouvelable d'ici 2030. L'énergie MGE est directement alignée sur cette directive au niveau de l'État.

Aspect politique	Exigence spécifique	MGE Energy Compliance
Norme de portefeuille renouvelable	30% d'ici 2030	Actuellement à 25% de génération renouvelable
Cible de réduction du carbone	Réduction de 40% d'ici 2030	Sur la bonne voie avec 510 millions de dollars d'investissement en énergie propre

Règlements des États encourageant les investissements d'infrastructure utilitaire

La Commission de la fonction publique du Wisconsin a approuvé 325 millions de dollars d'investissements de modernisation du réseau Pour MGE Energy en 2023.

• Mises à niveau de la résilience de la grille
• Implémentation du compteur intelligent
• Améliorations de l'efficacité de la ligne de transmission

Incitations du gouvernement local pour le développement de l'énergie verte

Type d'incitation	Valeur	Impact sur l'énergie MGE
Exonération de la taxe foncière	100% pour les installations solaires	Réduit les coûts du projet renouvelable
Subventions locales	Jusqu'à 500 000 $ par an	Soutient le développement des infrastructures vertes

Crédits d'impôt fédéraux potentiels pour les projets d'énergie renouvelable

La loi sur la réduction de l'inflation prévoit 30% de crédit d'impôt d'investissement (ITC) pour les projets solaires et éoliens.

• Crédit d'impôt sur le projet solaire: 30% à 2032
• Crédit d'impôt Wind Project: 0,03 $ par kilowatt-heure
• Crédit de stockage de batterie: avantages fiscaux de 10% supplémentaires

MGE Energy, Inc. (MGEE) - Analyse du pilon: facteurs économiques

Demande d'électricité stable dans la région métropolitaine de Madison

MGE Energy dessert environ 155 000 clients électriques dans le comté de Dane, Wisconsin. La demande d'électricité dans la région métropolitaine de Madison montre des modèles de consommation cohérents.

Année	Ventes électriques totales (MWH)	Consommation résidentielle	Consommation commerciale
2022	4,126,000	1 453 000 MWh	2 173 000 MWh
2023	4,189,000	1 478 000 MWh	2 211 000 MWh

Prix ​​d'énergie modérée influencée par les conditions du marché régional

Les taux d'électricité moyens de MGE Energy reflètent la dynamique du marché régional:

Segment de clientèle	2023 Taux moyen (cents / kWh)	2022 Taux moyen (cents / kWh)
Résidentiel	14.23	13.87
Commercial	11.56	11.22

Investissement continu dans des infrastructures durables

Dépenses en capital de MGE Energy pour les infrastructures durables:

Catégorie d'investissement	2023 Investissement ($)	Pourcentage du CAPEX total
Projets d'énergie renouvelable	87,500,000	42%
Modernisation de la grille	62,300,000	30%

Impacts économiques potentiels de l'inflation et des fluctuations des taux d'intérêt

Les mesures financières reflètent les pressions économiques:

Indicateur économique	Valeur 2023	Valeur 2022
Dépenses d'exploitation	$341,600,000	$326,700,000
Intérêts	$42,300,000	$38,900,000
Revenu net	$146,500,000	$139,200,000

MGE Energy, Inc. (MGEE) - Analyse du pilon: facteurs sociaux

Préférence croissante des consommateurs pour les solutions énergétiques durables

Selon l'US Energy Information Administration, la consommation d'énergie renouvelable dans le Wisconsin a atteint 8,6% de la consommation totale d'énergie de l'État en 2022. MGE Energy a répondu à cette tendance avec des investissements spécifiques:

Investissement d'énergie renouvelable	Montant	Année
Capacité de génération solaire	44 MW	2023
Achat d'énergie éolienne	35% de la génération totale	2023

L'augmentation de la sensibilisation à la communauté des effets du changement climatique

Les données du Pew Research Center indiquent que 67% des résidents du Wisconsin considèrent le changement climatique comme une préoccupation importante. Les mesures d'engagement communautaire de MGE Energy reflètent cette tendance:

Métrique de l'engagement communautaire	Valeur	Année
Programmes communautaires d'éducation climatique	12 programmes	2023
Participants à l'atelier de durabilité	1 450 individus	2023

Chart démographique dans le Wisconsin soutenant les initiatives d'énergie verte

Données démographiques du Wisconsin pertinentes pour l'adoption de l'énergie verte:

• Âge médian: 39,5 ans
• Population urbaine: 71,4%
• Diplômés du collège: 29,3%

Haussure des attentes en matière de responsabilité environnementale des entreprises

METRIQUES DE RESPONSABILITÉ ENVIRONNEMENTAUX DE MGE ENVERTISSE:

Indicateur de responsabilité environnementale	État actuel	Année cible
Objectif de réduction des émissions de carbone	Réduction de 50%	2030
Portefeuille d'énergie renouvelable	55% de la génération totale	2025

MGE Energy, Inc. (MGEE) - Analyse du pilon: facteurs technologiques

Advanced Smart Grid Technology Implémentation

MGE Energy a investi 42,3 millions de dollars dans les infrastructures intelligentes en 2023. La société a déployé 187 000 unités d'infrastructure de comptage avancé (AMI) sur son territoire de service.

Investissement technologique	Montant ($)	Année de mise en œuvre
Infrastructure de grille intelligente	42,300,000	2023
Unités de mesure avancées	187,000	2023

Investissement dans l'infrastructure de production d'énergie renouvelable

MGE Energy a engagé 124,5 millions de dollars dans des projets d'énergie renouvelable en 2023. La capacité de production solaire est passée à 93 MW, la production d'éoliennes atteignant 124 MW.

Type d'énergie renouvelable	Capacité (MW)	Investissement ($)
Génération solaire	93	58,200,000
Génération de vent	124	66,300,000

Transformation numérique des systèmes de gestion de l'énergie

MGE Energy a alloué 18,7 millions de dollars aux mises à niveau du système de gestion de l'énergie numérique. Implémenté les technologies de maintenance prédictive axées sur l'IA sur 92% des infrastructures critiques.

Technologies émergentes de stockage de batteries et d'optimisation de la grille

L'investissement de stockage de batteries a atteint 37,6 millions de dollars en 2023. La capacité de stockage de la batterie à l'échelle totale du réseau s'est étendue à 45 MWh.

Technologie	Investissement ($)	Capacité
Stockage de batterie à l'échelle de la grille	37,600,000	45 MWH

Mesures de performance technologique clés:

• Investissement technologique total: 223,1 millions de dollars en 2023
• Capacité d'énergie renouvelable: 217 MW
• Couverture du réseau intelligent: 187 000 unités AMI

MGE Energy, Inc. (MGEE) - Analyse du pilon: facteurs juridiques

Conformité aux règlements de la Commission de la fonction publique du Wisconsin

MGE Energy est soumis à une surveillance réglementaire complète de la Commission de la fonction publique du Wisconsin (PSC). Depuis 2024, la société doit respecter des exigences réglementaires spécifiques:

Aspect réglementaire	Détails de la conformité	Coût annuel de conformité
Tariser la procédure	Dossier classé 6630-UR-128	1,2 million de dollars
Investissement en infrastructure	Mandats de modernisation de la grille	45,7 millions de dollars
Protection des consommateurs	Facturation des exigences de transparence	$350,000

Adhésion aux normes fédérales de protection de l'environnement

Mesures clés de la conformité environnementale fédérale:

• Coût de conformité de la loi sur l'air propre: 8,3 millions de dollars par an
• Dépenses de surveillance des émissions de l'EPA: 2,1 millions de dollars
• Investissements de réduction des gaz à effet de serre: 17,5 millions de dollars

Exigences réglementaires en cours pour l'infrastructure des services publics

Catégorie d'infrastructure	Norme de réglementation	Investissement de conformité
Lignes de transmission	FERC Order 1000 Conformité	22,6 millions de dollars
Mises à niveau de la sous-station	Protection des infrastructures critiques du NERC	6,4 millions de dollars
Cybersécurité	Implémentation du cadre NIST	3,9 millions de dollars

Conteste juridique potentiel liée aux transitions d'énergie renouvelable

Paysage juridique des énergies renouvelables:

• Litigation d'intégration d'énergie renouvelable en attente: 2 cas actifs
• Coût de conformité standard du portefeuille renouvelable: 12,7 millions de dollars
• Interconnexion solaire et éolienne Dépenses juridiques: 1,5 million de dollars

MGE Energy, Inc. (MGEE) - Analyse du pilon: facteurs environnementaux

Engagement à réduire les émissions de carbone

MGE Energy s'est engagé à réduire les émissions de carbone de 80% par rapport aux niveaux de référence 2005 d'ici 2050. En 2022, la société avait déjà réduit les émissions de carbone de 45%.

Année	Réduction des émissions de carbone
2005	Niveau de base
2022	Réduction de 45%
Cible 2050	Réduction de 80%

Expansion du portefeuille d'énergie solaire et éolienne

MGE Energy a investi 157 millions de dollars dans des projets d'énergie renouvelable en 2022. La société opère actuellement:

• 168 MW de capacité de production de vent
• 32 MW de capacité de génération solaire

Type d'énergie renouvelable	Capacité (MW)	Investissement en 2022
Vent	168	112 millions de dollars
Solaire	32	45 millions de dollars

Investissement dans une infrastructure énergétique durable

MGE Energy a alloué 285 millions de dollars aux investissements en infrastructures énergétiques durables en 2022-2024. La société prévoit d'augmenter le portefeuille d'énergies renouvelables à 500 MW d'ici 2030.

Période d'investissement	Investissement total	Cible d'énergie renouvelable
2022-2024	285 millions de dollars	500 MW d'ici 2030

Stratégies d'adaptation du changement climatique pour les opérations de services publics

MGE Energy a mis en œuvre des stratégies de résilience climatique avec un investissement annuel de 45 millions de dollars en modernisation du réseau et en durcissement par les infrastructures.

Stratégie d'adaptation	Investissement annuel
Modernisation de la grille	30 millions de dollars
Durcissement des infrastructures	15 millions de dollars

MGE Energy, Inc. (MGEE) - PESTLE Analysis: Social factors

Sociological

The social factors surrounding MGE Energy are overwhelmingly positive, driven by the company's location in a high-growth, economically resilient service area and its established commitment to social responsibility. This stability translates directly into predictable customer growth and a favorable operating environment, which is defintely a key component of their long-term value proposition.

You're looking at a utility whose primary service territory, Madison/Dane County, is a demographic outlier in Wisconsin. While state-wide population growth is slowing, Dane County continues to lead, with a projected population estimate of 611,149 in 2025. This strong local economy-anchored by the state government, the University of Wisconsin-Madison, and a robust biotech sector-provides a resilient customer base.

Here's the quick math on customer growth, which underpins their stable earnings:

Metric	Compound Annual Growth Rate (CAGR) 2020-2024
Electric Customer Growth	1.1%
Gas Customer Growth	1.3%

This consistent, albeit modest, growth in customer count reduces regulatory risk by demonstrating a healthy, expanding service area. A growing customer base smooths out rate base recovery.

Strong Commitment to Community Engagement and Equity/Inclusion in Service

MGE Energy has formally integrated 'Equity' and 'Engagement' into its core values, which is more than just corporate boilerplate; it's a strategic move to secure community buy-in for their massive clean energy transition. The company has a Diversity, Equity, and Inclusion (DEI) Steering Team, formed in 2022, that works across the company.

This focus is critical because utility projects often face local opposition. By actively engaging stakeholders, including community-based organizations serving low-income residents, MGE Energy is proactively mitigating social risk around new infrastructure development. They are trying to ensure all customers benefit from new technologies, which is a smart way to manage the social cost of decarbonization.

• Value diverse perspectives in service and workplace.
• Design programs with input from low-income community stakeholders.
• Aim to serve customers without barriers based on income or ethnicity.

Launched a New Commercial Shared Solar Program for Business Customers

The company's commitment to clean energy aligns perfectly with the social desire for sustainability, and their community solar programs are a tangible manifestation of this. In November 2025, the 'Shared Solar - Strix' program opened for enrollment, which includes residential and small business electric customers. This program allows customers to subscribe to shares of locally generated solar power without installing panels on their own property.

The Strix Solar array in Fitchburg, Wisconsin, which serves the program, is a 6-megawatt (MW) facility. The related Shared Solar II program, which includes small business, is set to account for two MW of the system's output for its first six years. MGE is also proposing a dedicated 'Commercial Shared Solar' program for larger business customers, which would offer a fixed rate for a five-year period. This is a clear response to the social demand from the business community for accessible, local renewable energy options.

MGE Energy Marked 50 Consecutive Years of Dividend Increases in August 2025

For investors, the social factor of reliability extends to the shareholder base, and MGE Energy's dividend record is a powerful signal of financial stability. In August 2025, the board increased the regular quarterly dividend rate by 5.6% to $0.4750 per share.

This action officially marked the 50th consecutive year of dividend increases. This milestone, which places MGE Energy in the elite group of Dividend Kings, reinforces the company's image as a disciplined, long-term steward of capital. The annualized dividend rate was raised from $1.80 to $1.90 per share.

MGE Energy, Inc. (MGEE) - PESTLE Analysis: Technological factors

You're looking at MGE Energy, Inc. (MGEE) and seeing a utility that is defintely not sitting still, especially in the technology space. The company's strategy is a clear, aggressive pivot toward next-generation grid technology and energy storage, which is critical for managing the intermittency of renewables. This isn't just about adding solar panels; it's about fundamentally rewiring the system to handle two-way power flow and long-duration storage.

The near-term technological risks are manageable, but the opportunity lies in their early-mover advantage in long-duration energy storage (LDES) and smart grid investments. Here's the quick math: their non-utility venture capital (VC) gains alone show a healthy return on their forward-looking tech bets.

Deployed 11 MW of battery capacity via the Paris BESS in June 2025

MGE Energy's commitment to energy storage technology is now a tangible asset on the balance sheet. The Paris Battery Energy Storage System (BESS) came online in June 2025, marking a significant step in grid reliability and dispatchability (the ability to turn power on or off quickly). MGE Energy owns 11 MW of battery capacity from this facility, which is part of the larger 110 MW battery storage system at the Paris Solar-Battery Park in Kenosha County. This deployment helps smooth out the power flow from the 200 MW solar array, of which MGE Energy owns 20 MW of solar capacity, effectively turning intermittent solar into a more reliable resource.

This is a big deal because it allows them to store energy during low-demand, high-production periods and release it during peak demand, which is a core function of a modern utility. Plus, they received approval in May 2025 for another project, the Sunnyside Solar Energy Center, which will include a 40 MW battery storage system, further accelerating their storage portfolio growth.

Investment gains of $2.2 million in Q3 2025 from venture capital in smart grid technology

The non-utility segment of MGE Energy, Inc. is acting as a strategic venture investor, which is a smart hedge against purely regulated utility returns. In the third quarter of 2025, the company reported investment gains of approximately $2.2 million from its venture capital funds. These funds are not just passive holdings; they are specifically targeted at early-stage companies advancing critical utility technologies, like smart grid solutions, distributed energy resources (DER), and cybersecurity.

This approach gives MGE Energy, Inc. a front-row seat to innovation, allowing them to test and integrate promising technologies before their competitors. The investments focus on:

• Advancing smart technologies for grid management.
• Improving the customer experience through digital tools.
• Enabling the integration of distributed energy resources.
• Supporting transportation and building electrification.

State regulators approved the innovative 18 MW Columbia Energy Storage Project

The June 2025 regulatory approval for the Columbia Energy Storage Project is a technological game-changer. This 18 MW project is the first long-duration energy storage (LDES) system of its kind in the United States, utilizing a revolutionary closed-loop process designed by Energy Dome.

Instead of traditional lithium-ion batteries, this system stores energy by converting carbon dioxide ($\text{CO}_2$) gas into a compressed liquid. When power is needed, the liquid $\text{CO}_2$ converts back to a gas to power a turbine. MGE Energy, Inc. will own 3 MW of the total storage capacity, and the project is expected to provide up to 10 hours of energy storage, which is crucial for grid stability as the company retires older coal-fired generation.

This technology is a clear differentiator, addressing the biggest technical challenge of renewables: storing energy for extended periods. The table below summarizes the key energy storage projects driving MGE Energy's technological transformation in 2025:

Project	Technology Focus	MGEE Capacity (MW)	Status in 2025
Paris BESS	Lithium-Ion Battery Storage	11 MW	Operational (June 2025)
Columbia Energy Storage Project	Long-Duration Energy Storage ($\text{CO}_2$)	3 MW (of 18 MW total)	Regulatory Approval (June 2025)
Sunnyside Solar Energy Center	Lithium-Ion Battery Storage	40 MW	Regulatory Approval (May 2025)

Grid modernization efforts focus on enabling electrification and distributed energy resources

The core of MGE Energy's capital expenditure is focused on building a smarter, two-way grid. This grid modernization is not a buzzword; it's a necessity to meet their carbon reduction goals and integrate the influx of customer-owned generation (distributed energy resources or DER). The company has a forecasted capital investment of nearly $850 million in generation from 2025 through 2029, much of which is dedicated to this smart infrastructure.

The technological efforts are centered on enabling two major trends:

• Electrification: Supporting the growth of electric vehicles (EVs) and electric heating by ensuring the distribution system can handle the increased load and two-way power flow from vehicle-to-grid (V2G) technology.
• DER Integration: Upgrading the distribution system with enhanced monitoring and control technology to manage and optimize power from sources like rooftop solar and small-scale battery storage, which are connected directly to the local grid.

By developing the infrastructure to move from a traditional one-way power flow to a two-way system, MGE Energy is future-proofing its network and ensuring it can reliably meet its goal of supplying 25% of retail energy sales with renewable resources by the end of 2025.

MGE Energy, Inc. (MGEE) - PESTLE Analysis: Legal factors

The legal and regulatory landscape for MGE Energy, Inc. (MGEE) is defined by the Public Service Commission of Wisconsin (PSCW) and a commitment to environmental compliance that goes well beyond the letter of the law. This highly regulated environment means that all major capital investments and future revenue streams are subject to explicit regulatory approval, which introduces both risk and certainty for investors.

Regulatory approval secured for the 20 MW Sunnyside Solar Energy Center in May 2025

A critical legal milestone was reached on May 6, 2025, when the Public Service Commission of Wisconsin (PSCW) approved the construction of the Sunnyside Solar Energy Center. This approval is key because it legally sanctions a significant investment in MGE's clean energy transition. The project is a 20-megawatt (MW) solar array coupled with a 40-MW four-hour battery storage system, which is MGE's first local solar-plus-storage initiative.

This regulatory nod allows MGE to move forward with a project that will serve approximately 6,000 households annually, demonstrating the legal framework's support for the utility's decarbonization goals. The solar array is expected to be operational by the end of 2026, with the battery storage system following in 2027. Securing this pre-approval is defintely a necessary step for any major utility capital expenditure.

The company must adhere to the PSCW decision on the 2026/2027 rate case for future revenue

The most immediate legal and financial determinant for MGE is the outcome of the 2026/2027 rate case, which the company filed in April 2025. This process dictates the authorized rates MGE can charge and the allowed Return on Equity (ROE), directly impacting future revenue and profitability. The good news is a unanimous settlement agreement was reached with all parties, including the Citizens Utility Board (CUB), on September 10, 2025, which significantly de-risks the final decision.

The PSCW is expected to issue its final decision by the end of 2025, with the new rates taking effect on January 1, 2026. This decision is the final word on MGE's pricing structure for the next two years. Here's the quick math on the proposed rate changes under the settlement agreement:

Rate Component	Proposed 2026 Rate Increase	Proposed 2027 Rate Increase	Average Annual Impact (2018-2027)
Overall Electric Rates	0.04%	3.8%	About 1.9%
Overall Natural Gas Rates	2.77%	About 2%	About 1.7%

The settlement supports a minimal electric rate increase of just 0.04% in 2026, followed by a larger adjustment in 2027. This staggered approach helps manage customer bill impacts while still allowing MGE to recover costs from its substantial investment in solar and grid modernization projects.

Proactive Environmental Management System (EMS) ensures compliance beyond legal minimums

MGE's Environmental Management System (EMS) is a key legal risk mitigation tool, moving compliance from a reactive necessity to a proactive, continuous improvement process. The company's policy is to comply with all environmental laws and regulations, but also to actively exceed compliance.

This commitment is validated by external third-party recognition, which helps maintain a constructive relationship with regulators. MGE earned the Green Master designation for the 12th consecutive year in 2025 from the Wisconsin Sustainable Business Council (WSBC), which benchmarks the company against best practices in environmental, social, and governance (ESG) pillars.

The EMS itself has been expanded to cover all company operations, not just individual facilities, and its effectiveness was confirmed by a system-wide audit conducted by a third-party Green Tier-approved auditor in 2024.

• The EMS is certified through the Wisconsin Department of Natural Resources (DNR) Green Tier program.
• It uses an Environmental Management Information System (EMIS) to track compliance and manage environmental risk more efficiently.
• This proactive stance helps reduce the likelihood of costly legal fines or operational delays.

Finance: Monitor the PSCW decision on the rate case and update the 2026/2027 revenue forecast immediately upon the final order.

MGE Energy, Inc. (MGEE) - PESTLE Analysis: Environmental factors

You need to understand MGE Energy, Inc.'s environmental strategy because it's a core driver of their capital expenditures and future rate base growth. Their transition is defintely a long-term play, anchored by ambitious, science-based targets for both carbon and methane emissions, which directly map to investment opportunities through 2035 and beyond.

Goal of net-zero carbon electricity by 2050, targeting an 80% reduction by 2030

MGE Energy has set a goal to achieve net-zero carbon electricity by 2050, which is aligned with the Intergovernmental Panel on Climate Change (IPCC) assessment for limiting global warming to 1.5°C. The near-term target is to deliver electricity with at least 80% fewer carbon emissions by 2030, compared to the 2005 baseline. Here's the quick math: as of year-end 2023, the company had already reduced its carbon emissions by about 40% from the 2005 levels, putting them halfway to their 2030 goal.

What this estimate hides is the significant capital required. The company is estimating more than $1 billion in investment in clean energy and battery storage between 2015 and 2028 to enable this transition.

Expects to eliminate about 75% of coal use by the end of 2025

The company's coal phase-out plan is moving fast, which is a major environmental de-risking factor. By the end of 2025, MGE Energy expects to eliminate about 75% of its current coal use. This reduction is primarily driven by the retirement of the Columbia Energy Center units and the planned transition of the Elm Road Generating Station.

The total elimination of coal-fired generation from MGE Energy's ownership portfolio is now expected by the end of 2032. This shift to cleaner energy sources, like natural gas and renewables, is crucial for maintaining grid reliability while meeting the carbon reduction targets.

Expects to achieve the goal of 25% renewable energy capacity by the end of 2025

MGE Energy is on track to hit a key milestone in its energy mix. The goal is to supply 25% of retail energy sales with renewable resources by the end of 2025. This is a significant jump from the approximately 20% of the overall generation mix that renewable energy accounted for in 2023.

The company's investment in utility-scale solar and battery storage is driving this capacity growth, with several projects coming online in the 2025 fiscal year. This is how they're getting there:

• Darien Solar Energy Center: 25 MW of solar capacity came online in early 2025.
• Paris Solar-Battery Park: 11 MW of battery storage capacity, associated with MGE Energy's 20 MW solar share, is expected online in 2025.
• Strix Solar: The 6-MW solar facility, a local distributed energy resource, began serving customers in early 2025.

Committed to achieving net-zero methane emissions from the gas distribution system by 2035

Beyond electricity generation, MGE Energy is tackling fugitive emissions (methane) from its natural gas distribution business, a potent greenhouse gas. Their target is net-zero methane emissions from the distribution system by 2035.

Strategies to meet this goal include enhanced leak detection and repair, implementing new cost-effective technologies, and exploring the use of renewable natural gas (RNG). The company introduced a new RNG option for customers in 2024 to help offset their natural gas emissions, a smart move to engage customers in the decarbonization effort.

Environmental Target	Goal	Baseline/Current Status (as of 2023/2025)	Target Date
Carbon Emission Reduction (from 2005 levels)	At least 80% reduction	Reduced by about 40% (as of year-end 2023)	2030
Net-Zero Carbon Electricity	Net-Zero Emissions	N/A	2050
Coal Use Elimination	Eliminate 75% of current use	N/A	End of 2025
Renewable Energy Capacity in Generation Mix	25% of retail energy sales	About 20% (in 2023)	End of 2025
Net-Zero Methane Emissions	Net-Zero from gas distribution system	N/A	2035