Investment in ATC

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Investment in ATC - MGE Energy and MGE.

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, 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 six months ended June 30, 2015 and 2014, MGE Transco recorded the following:

		Six Months Ended
		June 30,
(In thousands)		2015		2014
Equity in earnings from investment in ATC	$	4,170	$	4,883
Dividends received from ATC		2,891		3,835
Capital contributions to ATC		355		1,065

MGE Transco's investment in ATC as of June 30, 2015, and December 31, 2014, was $69.3 million and $67.7 million, respectively. On July 31, 2015, MGE Transco made a $0.2 million capital contribution to ATC.

At June 30, 2015, 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 three and six months ended June 30, 2015 and 2014, is as follows:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
(In thousands)		2015		2014		2015		2014
Operating revenues	$	165,172	$	159,990	$	317,529	$	323,327
Operating expenses		(80,326)		(74,405)		(160,277)		(153,028)
Other (expense) income, net		(81)		322		(19)		710
Interest expense, net		(24,172)		(22,242)		(48,655)		(44,238)
Earnings before members' income taxes	$	60,593	$	63,665	$	108,578	$	126,771