MGE To Build Another Wind Farm.

Business Editors

MADISON, Wis.--(BUSINESS WIRE)--Sept. 8, 2003

Responding to growing customer demand, Madison Gas and Electric (MGE) will build a second Wisconsin-based wind farm that will produce electricity for residential and business customers. MGE's goal is to be the first investor-owned utility in the state to have at least 5% of its customers choosing clean, renewable wind generation for part or all of their electricity needs. MGE's Wind Power Program already ranks No. 1 in the nation of all investor-owned utilities for percentage of customer participation. The wind farm is expected to begin generating power late next year.

The new facility will allow nearly double the number of participants in the company's Wind Power Program. About 4,400 families and 93 businesses choose to pay a little more each month on their electric bill to cover the higher costs of wind power generation. A waiting list of customers wanting to participate in the program currently exists.

"We want all MGE customers to have the opportunity to purchase electricity from this renewable energy source. Expanding the program will also improve the economics of wind energy and make participation more affordable for everyone," says Gary Wolter, MGE chairman, president and chief executive officer.

MGE will issue a request for proposals before Nov. 1, 2003, to build a wind farm with a generating capacity of at least 10-megawatts. At maximum output, the proposed facility would generate enough electricity to supply more than 3,500 homes. A site for the wind farm has not yet been chosen.

MGE has demonstrated a commitment to renewable energy projects. The company partnered with area school districts by installing photovoltaic systems and weather stations on the rooftops of 10 high schools. These systems convert sunlight to electricity, which is used by the schools. MGE burns clean, pre-consumer packaging materials at its Blount Station in Madison. The company also has six other photovoltaic units generating electricity in the Madison area. These waste materials improve overall air emissions at the plant and would otherwise be destined for landfills. Additionally, MGE distributes power to customers that is generated by biomass gas produced from the Dane County Rodefeld Landfill.

MGE (NASDAQ:MGEE) is a public utility that generates and distributes electricity to nearly 130,000 customers in Dane County and purchases and distributes natural gas to more than 126,000 customers in seven south-central and western Wisconsin counties. MGE has served the Madison area since 1896.