Investments

12 Months Ended

Dec. 31, 2023

Investments - MGE Energy and MGE.

Equity Securities, Equity Method Investments, and Other Investments.


	MGE Energy				MGE
(In thousands)	2023		2022		2023		2022
Equity securities	$	24,027	$	22,960	$	60	$	115
Equity method investments:
ATC and ATC Holdco		86,459		80,586		—		—
Other		39		39		—		—
Total equity method investments		86,498		80,625		—		—
Other investments		2,298		2,298		—		—
Total	$	112,823	$	105,883	$	60	$	115

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

For the years ended December 31, 2023, 2022, and 2021, there were no liquidated investments for MGE. For the years ended December 31, 2023, 2022, and 2021, certain investments were liquidated for MGE Energy. As a result of these liquidations, the following was received:


(In thousands)	2023			2022		2021
Cash proceeds	$	995		$	924	$	1,684
Gain (loss) on sale		(899	)		1,382		1,543

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, 2023 and 2022, MGE Transco held a 3.6% ownership interest in ATC. As of December 31, 2023 and 2022, 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, net" on the consolidated statements of income of MGE Energy. For the years ended December 31, MGE Transco recorded the following:


(In thousands)	2023		2022		2021
Equity earnings from investment in ATC	$	10,515	$	9,025	$	9,774
Dividends received from ATC		8,397		7,090		7,832
Capital contributions to ATC		3,750		2,678		—

In January 2024, MGE Transco made a $0.7 million capital contribution to ATC.

ATC Holdco was formed in December 2016. In 2023, 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,	2023			2022			2021
Operating revenues	$	818,921		$	751,158		$	754,838
Operating expenses		(407,643	)		(381,528	)		(376,153	)
Other income		2,452			1,171			1,144
Interest expense, net		(134,107	)		(124,091	)		(115,089	)
Earnings before members' income taxes	$	279,623		$	246,710		$	264,740

Balance sheet data as of December 31,	2023			2022
Current assets	$	115,236		$	89,606
Noncurrent assets		6,336,954			5,997,780
Total assets	$	6,452,190		$	6,087,386

Current liabilities	$	495,919		$	511,945
Long-term debt		2,735,985			2,612,980
Other noncurrent liabilities		585,173			485,795
Members' equity		2,635,113			2,476,666
Total members' equity and liabilities	$	6,452,190		$	6,087,386

MGE receives transmission and other related services from ATC. For the years ended December 31, 2023, 2022, and 2021, MGE recorded $33.8 million, $31.4 million, and $32.0 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, 2023 and 2022, MGE had a receivable due from ATC of $5.3 million and $4.8 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.