** MGE Energy's MGEE.O shares down 5.1% before the bell to $76.70 after $250 mln follow-on priced

** Parent of regulated public utility Madison Gas and Electric late Weds announced ~3.3 mln shares at $75.75 with forward sale component

** Offering price represents 6.2% discount to stock's last close

** MGEE sold 990,099 shares directly for $75 mln and entered into separate 20-month forward sale agreements with Morgan Stanley, BofA and JP Morgan for ~2.3 mln shares for $175 mln

** It intends to use net offering proceeds, and from any settlements of the agreements, for general purposes, including short-term debt repayment, repurchases/retirements/refinancing of other securities, capex, and investments in subsidiaries

** Morgan Stanley, Guggenheim, BofA and JP Morgan joint bookrunners for offering

** The forward sale enables the utility to lock in funding at current price levels but postpones issuance of new shares and dilution of earnings until it needs the proceeds

** Prior to offering, Wisconsin-based firm had ~36.8 mln shares outstanding for $3 bln market cap

** Through Weds, MGEE's stock up 3% YTD