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United States


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 8-K


CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


January 20, 2006

Date of report (date of earliest event reported)


Commission

File No.

Name of Registrant, State of Incorporation, Address

of Principal Executive Offices and Telephone No.

IRS Employer

Identification No.

000-49965

MGE Energy, Inc.

(a Wisconsin Corporation)

133 South Blair Street

Madison, Wisconsin 53703

(608) 252-7000

www.mgeenergy.com

39-2040501

000-1125

Madison Gas and Electric Company

(a Wisconsin Corporation)

133 South Blair Street

Madison, Wisconsin 53703

(608) 252-7000

www.mge.com

39-0444025


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


[ ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


[ ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


[ ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


[ ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))







Item 1.01. Entry into a Material Definitive Agreement.


On January 20, 2006, the Board of Directors of MGE Energy, Inc., and Madison Gas and Electric Company approved cash bonus awards for the executive officers that were earned in 2005. The bonuses reflected the achievement of various performance goals.


The following chart sets forth the amount of the 2005 bonuses for the "named executive officers" (as that term is defined in Item 402 of the Securities and Exchange Commission's Regulation S-K) for MGE Energy, Inc., and Madison Gas and Electric Company.


Gary J. Wolter


$77,000

Mark T. Maranger


$25,000

Kristine A. Euclide


$32,500

Scott A. Neitzel


$32,500

Terry A. Hanson


$30,000




Signature


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


MGE Energy, Inc.

(Registrant)



/s/ Jeffrey C. Newman

Jeffrey C. Newman

Vice President and Treasurer


Date: February 21, 2006



Madison Gas and Electric Company

(Registrant)



/s/ Jeffrey C. Newman

Jeffrey C. Newman

Vice President and Treasurer


Date: February 21, 2006