**United States****SECURITIES AND EXCHANGE COMMISSION****Washington, D.C. 20549**

**FORM 10-Q***Quarterly Report Pursuant to Section 13 or 15(d) of  the Securities Exchange Act of 1934*

For the quarterly period ended:**June 30, 2002**

**Commission File Number 0-1125**

**Madison Gas and Electric Company**(Exact name of registrant as specified in its charter)

**Wisconsin**(State or other jurisdiction of incorporation)

**39-0444025**(IRS Employer Identification No.)

**133 South Blair Street, Madison, Wisconsin  53703**(Address of principal executive offices including ZIP code)

**(608) 252-7000**(Registrant's telephone number including area code)

**Common Stock Outstanding at August 8, 2002:  17,347,889 Shares**

Indicate by check mark whether the registrant has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months andhas been subject to such filing requirements for the past 90 days.  Yes [X]  No [  ]

**Table of Contents**
**PART I - FINANCIAL INFORMATION**Item 1. Financial Statements.Condensed Consolidated Statements of Income  and Comprehensive Income for the three and six months ended June 30, 2002 and  2001 (unaudited)Condensed Consolidated Statements of Cash Flows  for the three and six months ended June 30, 2002 and 2001 (unaudited)Condensed Consolidated Balance Sheets as of  June 30, 2002 (unaudited) and December 31, 2001Notes to Condensed Consolidated Financial Statements  (unaudited)Item 2. Management's Discussion and Analysis  of Financial Condition and Results of Operations.Results of OperationsLiquidity and Capital ResourcesItem 3. Quantitative and Qualitative Disclosures  About Market Risk.
**PART II. Other Information**Item 4. Results of Votes of Security Holders.Item 5. Other Information.Item 6(a). Exhibits.Item 6(b). Reports on Form 8-K.Signatures
**PART I - FINANCIAL INFORMATION**

******Item 1. Financial Statements.******

******Condensed Consolidated Statements of Income and Comprehensive Income****(unaudited)**
Three Months Ended      June 30, Six Months Ended      June 30, *(In thousands, except per-share amounts)***2002**2001**2002**2001**Operating Revenues:********** Electric **$54,464**$50,686**$105,284**$100,124 Gas **19,540**19,576**66,992**92,168*Total Operating Revenues***74,004**70,262**172,276**192,292**Operating Expenses:********** Fuel for electric generation **9,645**9,725**18,122**20,948 Purchased power **11,820**2,380**20,312**6,217 Natural gas purchased **10,530**11,143**40,196**66,201 Other operations and maintenance **22,849**25,315**44,084**47,985 Depreciation and amortization **7,279**8,601**14,542**17,551 Other general taxes **2,693**2,602**5,561**5,511 Income tax provision **2,146**2,749**8,829**8,050*Total Operating Expenses***66,962**62,515**151,646**172,463**Net Operating Income****7,042**7,747**20,630**19,829**Other Income and Deductions:********** AFUDC - equity funds **112**103**193**192 Equity in earnings in ATC **867**978**1,733**1,733 Income tax provision **(166)**(741)**(512)**(1,400) Other, net **(454)**687**(598)**1,814*Total Other Income and Deductions***359**1,027**816**2,339 Income before interest expense and cumulative effect of a change in accounting      principle **7,401** 8,774**21,446** 22,168**Interest Expense:********** Interest on long-term debt **2,922**3,229**5,905**6,535 Other interest **123**197**209**721 AFUDC - borrowed funds **(63)**(58)**(109)**(108)*Net Interest Expense***2,982**3,368**6,005**7,148Net income before cumulative effect of a change in accounting principle    **4,419** 5,406**15,441** 15,020 Cumulative effect of a change in accounting principle, net of tax benefit      of $78 **-** -**-** (117)**Net Income****$ 4,419**$ 5,406**$ 15,441**$ 14,903**Total Comprehensive Income****$ 4,419**$ 5,406**$ 15,441**$ 14,903**Earnings Per Share of Common Stock (basic and diluted)**:******** Income before cumulative effect of a change in accounting principle **$0.26** $0.32**$0.90** $0.90 Cumulative effect of a change in accounting principle **-**-**-**(0.01)**Net Income****$0.26**$0.32**$0.90**$0.89**Average Shares Outstanding** (basic and diluted) **17,245**16,762**17,183**16,709
*The accompanying notes are an integral part of the above condensed consolidated  financial statements.*

******Condensed Consolidated Statements of Cash Flows**(unaudited)****