MGE Energy Inc. shareholders rejected three proposals that sought to have the company report on options for moving to 100% renewable energy supplies, study ways to promote the electrification of the transportation sector, and report on how its goals align with the Paris Agreement on climate change.
Shareholders representing about 90% of shares at MGE's May 15 annual meeting voted against the proposals, MGE spokesman Steve Schultz said. MGE claimed it already was taking many steps that are in line with the spirit of the resolutions.
MGE, the parent company of an electric and natural gas distribution utility in Wisconsin, is among a number of energy companies that faced environmental resolutions from shareholders at their annual meeting this year. Shareholder resolutions in the U.S. largely are symbolic in nature, although companies tend to cooperate with measures that garner majority support.
Don Wichert, who is co-coordinator of MGE Shareholders for Clean Energy, and a few other shareholders filed the resolutions. They contended that although MGE has begun exploring electrification options, the effort is piecemeal. Electrification of the transportation sector represents an opportunity to supply new renewable energy in the MGE territory, but no coordinated strategy on that market opportunity exists, the shareholder resolution said.
MGE's board, in a response in the proxy materials for the meeting, said it is moving forward on electrification, although "allocating resources toward a study continues to be unnecessary." MGE's board noted that the utility is working with Madison City's metro transit to help it electrify half of its bus fleet by 2035. MGE has been studying drivers' changing habits since 2009 and has a growing network of nearly 30 public electric vehicle charging stations powered by wind energy.
As for where MGE stands on climate risks, subsidiary Madison Gas and Electric Co. already is implementing business strategies to reduce carbon dioxide emissions at least 80% by 2050, according to MGE's board. The board said MGE's energy framework is consistent with the emissions targets of the Paris accord, and the company plans to determine whether it can go with 100% renewables "over time as technology continues to evolve."
