MGE Energy Inc
MGEE
Utilities
3
exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
MGE Energy, through its subsidiary Madison Gas and Electric (MGE), operates a generation fleet heavily reliant on fossil fuels, including the co-owned Columbia Energy Center. This plant has been the subject of significant environmental litigation. The U.S. Environmental Protection Agency and the Sierra Club filed a Clean Air Act enforcement action against MGE and its partners, alleging the plant violated federal emissions standards. The case was settled with a consent decree requiring the installation of pollution controls and payment of a civil penalty.
While the company publishes sustainability reports and commits to reducing its environmental impact, its ongoing operation of large-scale, fossil-fueled power generation continues to pose risks of air and water pollution, ash disposal, and other forms of ecological damage inherent to such facilities. The historical enforcement action demonstrates a documented pattern of environmental non-compliance tied directly to its core electricity generation business.
MGE Energy Inc., through its primary subsidiary Madison Gas and Electric (MGE), is a regulated electric and natural gas utility serving customers in south-central Wisconsin. The company's energy generation is heavily reliant on fossil fuels. According to its Form 10-K, MGE is a producer of greenhouse gas emissions primarily from the fossil fuel generating facilities it uses to meet customer energy needs, as well as from its natural gas distribution operations. As of August 2023, local advocacy groups reported that MGE plans to continue charging customers more to keep burning fossil fuels while also attempting to slow the adoption of cleaner energy alternatives. The company's current business model is centered on maintaining and operating its existing fossil fuel-based infrastructure.
MGE Energy operates through its subsidiary Madison Gas and Electric (MGE), which serves approximately 170,000 electric customers in Wisconsin. The company's generation portfolio has historically been heavily reliant on coal. MGE Energy holds an undivided ownership interest in two coal-fired generating units, the Columbia Energy Center and the Elm Road Generating Station. As of its most recent reporting, a significant portion of the electricity supplied to its customers comes from these coal assets.
The company has been excluded by other ethical investment frameworks, such as the Norwegian Government Pension Fund Global (NBIM), under its coal criterion. This exclusion, dated April 14, 2016, was based on MGE Energy's production of coal-based energy. While the company has announced a net-zero plan and a shift from coal to natural gas generation, its current operations and historical exclusion are grounded in its material ownership and use of coal-fired power plants.
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