Warmer weather in June drove Madison area residents to turn up their air conditioners, and that drove profits higher for Madison Gas & Electric in the second quarter.
Parent company MGE Energy reported net income of $16.1 million, or 47 cents a share, on revenue of $121.6 million for the three months that ended June 30 compared with net income of $13.5 million, or 39 cents a share, on revenue of $122.1 million for the same quarter, last year.
Revenue from residential customers’ electric bills rose 8.4 percent over the year-ago quarter, MGE said.
For the first six months of 2016, MGE reported earnings of $33.2 million, or 96 cents a share, on $269.1 million in revenue compared with earnings of $31.8 million, or 92 cents a share, on revenue of $292.3 million for the first half of 2015.
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In a filing with federal regulators, the Madison utility company said Oscar Mayer accounted for $1.7 million of its pre-tax earnings during both six-month periods. Oscar Mayer was not mentioned by name, but was referred to as a “large industrial customer” that will close in early 2017.
MGE also said it is holding off on paying $10.3 million to Alliant Energy Corp. — its share of the cost of running the jointly owned, coal-fired Columbia power plant near Portage for the first six months.
MGE may buy up to 50 megawatts of a natural gas-fired, 700-megawatt power plant that Alliant plans to build next to the Riverside power plant near Beloit and may reduce its 22 percent share of the Columbia power plant. Details of the transaction have not yet been finalized.