a. Equity Method Investments, Available for Sale Securities, and Other Investments.

(In thousands)		MGE Energy				MGE
		2011		2010		2011		2010
Available for sale securities:
Cost basis	$	1,347	$	1,316	$	482	$	536
Gross unrealized gains		196		243		87		125
Gross unrealized losses		(9)		(6)		(9)		(6)
Fair Value	$	1,534	$	1,553	$	560	$	655
Equity method investments:
ATC	$	56,975	$	54,200	$	56,975	$	54,200
Other		21		92		21		92
Total equity method investments	$	56,996	$	54,292	$	56,996	$	54,292
Other investments		1,802		0		0		0
Total	$	60,332	$	55,845	$	57,556	$	54,947

MGE Energy's and MGE's available for sale securities represent publicly traded securities and private equity investments in common stock of companies in various industries.

During the year ended December 31, 2011, certain investments were liquidated. As a result of these liquidations, MGE Energy and MGE received $0.3 million and $0.2 million, respectively, in cash proceeds. In addition, MGE Energy and MGE recorded a $0.2 million gain on the sale of investments in the income statement for the year ended December 31, 2011.

During the year ended December 31, 2010, certain investments were liquidated. As a result of these liquidations, MGE Energy and MGE received $0.2 million and $0.1 million, respectively, in cash proceeds. In addition, MGE Energy and MGE recorded a less than $0.1 million gain on the sale of investments in the income statement for the year ended December 31, 2010.

During the year ended December 31, 2009, certain investments were liquidated. As a result of these liquidations, MGE Energy received $0.1 million in cash proceeds and recorded a $0.1 million gain on the sale of investments.

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. That interest is presently held by MGE Transco, which is jointly owned by MGE Energy and MGE.

MGE Transco has accounted for its investment in ATC under the equity method of accounting. For the years ended December 31, 2011, 2010, and 2009, MGE Transco recorded equity earnings from the investment in ATC of $8.6 million, $8.5 million, and $8.2 million, respectively. Dividend income received from ATC was $6.7 million for both the years ended December 31, 2011 and 2010 and $6.3 million for the year ended December 31, 2009. During the year ended December 31, 2011, 2010 and 2009, MGE Transco made $0.9 million, $0.7 million and $3.6 million, respectively, in capital contributions to ATC.

During March 2010, MGE sold a parcel of land in Middleton, Wisconsin to ATC for $2.7 million, resulting in a gain of $2.6 million (pretax) in other income. The transaction was approved by the PSCW.

At December 31, 2011 and 2010, MGE Transco held a 3.6% ownership interest in ATC. MGE Transco's investment balance is different from the amount of the underlying equity in the net assets of ATC. This difference is attributable to the allocation of certain tax impacts related to the initial asset transfer.

At December 31, 2011 and 2010, MGE is the majority owner, and MGE Energy, the holding company, is the minority owner of MGE Transco. MGE Energy's proportionate share of the equity and net income of MGE Transco is classified within the MGE financial statements as noncontrolling interest.

ATC's summarized financial data for the years ended December 31, 2011, 2010, and 2009 is as follows:

(In thousands)
Income statement data for the year ended December 31,		2011		2010		2009
Operating revenues	$	567,174	$	556,741	$	521,525
Operating expenses		(261,568)		(251,120)		(230,316)
Other expense		(1,332)		(885)		(621)
Interest expense, net		(80,359)		(85,067)		(77,223)
Earnings before members' income taxes	$	223,915	$	219,669	$	213,365

Balance sheet data as of December 31,		2011		2010		2009
Current assets	$	58,671	$	59,856	$	51,121
Noncurrent assets		3,053,742		2,888,448		2,767,249
Total assets	$	3,112,413	$	2,948,304	$	2,818,370

Current liabilities	$	298,473	$	428,387	$	285,494
Long-term debt		1,400,005		1,175,010		1,259,643
Other noncurrent liabilities		82,647		84,940		76,837
Members' equity		1,331,288		1,259,967		1,196,396
Total members' equity and liabilities	$	3,112,413	$	2,948,304	$	2,818,370