Investments

12 Months Ended

Dec. 31, 2022

Investments - MGE Energy and MGE.

Equity Securities, Equity Method Investments, and Other Investments.


	MGE Energy				MGE
(In thousands)	2022		2021		2022		2021
Equity securities	$	22,960	$	20,529	$	115	$	230
Equity method investments:
ATC and ATC Holdco		80,586		75,862		—		—
Other		39		39		—		—
Total equity method investments		80,625		75,901		—		—
Other investments		2,298		2,324		—		—
Total	$	105,883	$	98,754	$	115	$	230

Equity securities represent publicly traded securities and private equity investments in common stock of companies in various industries.

For the years ended December 31, 2022, 2021, and 2020, there were no liquidated investments for MGE. For the years ended December 31, 2022, 2021, and 2020, certain investments were liquidated for MGE Energy. As a result of these liquidations, the following was received:


(In thousands)	2022		2021		2020
Cash proceeds	$	924	$	1,684	$	622
Gain on sale		1,382		1,543		379

ATC and ATC Holdco.

ATC owns and operates electric transmission facilities primarily in Wisconsin. MGE received an interest in ATC when it, like other Wisconsin electric utilities, contributed its electric transmission facilities to ATC as required by Wisconsin law. That interest is presently held by MGE Transco, a subsidiary of MGE Energy. ATC Holdco was formed by several members of ATC, including MGE Energy, to pursue electric transmission development and investments outside of Wisconsin. The ownership interest in ATC Holdco is held by MGEE Transco, a subsidiary of MGE Energy.

As of December 31, 2022 and 2021, MGE Transco held a 3.6% ownership interest in ATC. As of December 31, 2022 and 2021, MGEE Transco held a 4.4% ownership interest in ATC Holdco.

MGE Transco and MGEE Transco have accounted for their investment in ATC and ATC Holdco, respectively, under the equity method of accounting. Equity earnings from investments are recorded as "Other income" on the consolidated statements of income of MGE Energy. For the years ended December 31, MGE Transco recorded the following:


(In thousands)	2022		2021		2020
Equity earnings from investment in ATC	$	9,025	$	9,774	$	10,167
Dividends received from ATC		7,090		7,832		8,633
Capital contributions to ATC		2,678		—		1,249

In January 2023, MGE Transco made a $0.4 million capital contribution to ATC.

ATC Holdco was formed in December 2016. ATC Holdco's transmission development activities have been suspended for the near term. In 2020, MGEE Transco recorded capital contributions of $0.3 million to ATC Holdco. In 2022 and 2021, MGEE Transco recorded no capital contributions to ATC Holdco.

ATC's summarized financial data is as follows:


(In thousands)
Income statement data for the year ended December 31,	2022			2021			2020
Operating revenues	$	751,158		$	754,838		$	758,117
Operating expenses		(381,528	)		(376,153	)		(372,463	)
Other income		1,171			1,144			1,922
Interest expense, net		(124,091	)		(115,089	)		(112,818	)
Earnings before members' income taxes	$	246,710		$	264,740		$	274,758

Balance sheet data as of December 31,	2022			2021
Current assets	$	89,606		$	89,747
Noncurrent assets		5,997,780			5,628,127
Total assets	$	6,087,386		$	5,717,874

Current liabilities	$	511,945		$	436,918
Long-term debt		2,612,980			2,513,009
Other noncurrent liabilities		485,795			421,997
Members' equity		2,476,666			2,345,950
Total members' equity and liabilities	$	6,087,386		$	5,717,874

MGE receives transmission and other related services from ATC. For the years ended December 31, 2022, 2021, and 2020, MGE recorded $31.4 million, $32.0 million, and $30.7 million, respectively, for transmission services received from ATC. MGE also provides a variety of operational, maintenance, and project management work for ATC, which is reimbursed by ATC. As of December 31, 2022 and 2021, MGE had a receivable due from ATC of $4.8 million and $7.0 million, respectively, related primarily to transmission interconnection at Badger Hollow and Paris solar generation sites. MGE will be reimbursed for these costs after the new generation assets are placed into service.