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Investments

12 Months Ended

Dec. 31, 2024

Investments - MGE Energy and MGE.

Equity Securities, Equity Method Investments, and Other Investments.


	MGE Energy
(In thousands)	2024		2023
Equity securities	$	23,119	$	24,027
Equity method investments:
ATC and ATC Holdco		92,579		86,459
Other		39		39
Total equity method investments		92,618		86,498
Other investments		2,298		2,298
Total	$	118,035	$	112,823

Equity securities represent publicly traded securities and private equity investments in common stock of companies in various industries. MGE had no material investments in 2024 or 2023.

For the years ended December 31, 2024, 2023, and 2022, there were no material liquidated investments for MGE. For the years ended December 31, 2024, 2023, and 2022, certain investments were liquidated for MGE Energy. As a result of these liquidations, the following was received:


(In thousands)	2024		2023			2022
Cash proceeds	$	2,554	$	995		$	924
Gain (loss) on sale		239		(899	)		1,382

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, 2024 and 2023, MGE Transco held a 3.6% ownership interest in ATC. As of December 31, 2024 and 2023, 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 following years ended December 31, MGE Transco recorded the following:


(In thousands)	2024		2023		2022
Equity earnings from investment in ATC	$	12,498	$	10,515	$	9,025
Dividends received from ATC		8,635		8,397		7,090
Capital contributions to ATC		2,679		3,750		2,678

In January 2025, MGE Transco made a $2.5 million capital contribution to ATC.

ATC Holdco was formed in December 2016. In 2024, 2023, and 2022 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,	2024			2023			2022
Operating revenues	$	911,314		$	818,921		$	751,158
Operating expenses		(442,359	)		(407,643	)		(381,528	)
Other income		1,407			2,452			1,171
Interest expense, net		(139,204	)		(134,107	)		(124,091	)
Earnings before members' income taxes	$	331,158		$	279,623		$	246,710

Balance sheet data as of December 31,	2024			2023
Current assets	$	126,628		$	115,236
Noncurrent assets		6,792,600			6,336,954
Total assets	$	6,919,228		$	6,452,190

Current liabilities	$	482,440		$	495,919
Long-term debt		3,083,409			2,735,985
Other noncurrent liabilities		544,973			585,173
Members' equity		2,808,406			2,635,113
Total members' equity and liabilities	$	6,919,228		$	6,452,190

MGE receives transmission and other related services from ATC. For the years ended December 31, 2024, 2023, and 2022, MGE recorded $36.3 million, $33.8 million, and $31.4 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, 2024 and 2023, MGE had a receivable due from ATC of $2.0 million and $5.3 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.