Madison Gas and Electric Monday announced a new financing partnership with six regional and locally owned banks in which MGE will receive $40 million in revolving credit for general corporate purposes.
The financing arrangement comes little more than one month after MGE announced plans to develop a fusion energy power plant with Realta Fusion.
The banks, which operate throughout MGE’s service territory, include the U.S. Bank National Association, which serves as lead arranger and administrative agent, plus Associated Bank, Capitol Bank, Johnson Bank, Lake Ridge Bank and One Community Bank.
“Access to competitive capital is important to advancing MGE’s long-term plans and maintaining financial strength,” Jeff Keebler, MGE chairman, president and CEO said in a press release. “This facility provides liquidity while expanding relationships with local banking partners.”
MGE generates and distributes electricity to 170,000 customers in Dane County and distributes natural gas to 180,000 customers in seven Wisconsin counties.
On Sept. 2, the utility and Realta Fusion announced they will explore the possibility of jointly developing a 200 megawatt fusion energy power plant in Wisconsin by the 2030s.
Fusion energy, a carbon-free energy technology, would advance MGE’s goal of net-zero carbon electricity by 2050.
