Investments

12 Months Ended

Dec. 31, 2019

Investments Disclosure [Abstract]

Investments

Investments - MGE Energy and MGE.

a.Equity Securities, Equity Method Investments, and Other Investments.

		MGE Energy				MGE
(In thousands)		2019		2018		2019		2018
Equity securities	$	14,546	$	9,363	$	209	$	388
Equity method investments:
ATC and ATC Holdco		71,609		66,313		-		-
Other		39		26		-		-
Total equity method investments		71,648		66,339		-		-
Other investments		2,298		2,298		-		-
Total	$	88,492	$	78,000	$	209	$	388

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

During the years ended December 31, 2019, 2018, and 2017, certain investments were liquidated. As a result of these liquidations, MGE Energy and MGE received the following:

		MGE Energy						MGE
(In thousands)		2019		2018		2017		2019		2018		2017
Cash proceeds	$	216	$	960	$	677	$	2	$	3	$	-
Gain (loss) on sale		580		476		522		(343)		3		-

b.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, which, since December 1, 2016, is owned by 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 wholly-owned subsidiary of MGE Energy.

As of December 31, 2019 and 2018, MGE Transco held a 3.6% ownership interest in ATC. As of December 31, 2019 and 2018, 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.

For the years ended December 31, 2019, 2018, and 2017, MGE Transco recorded the following:

(In thousands)		2019		2018		2017
Equity earnings from investment in ATC	$	9,889	$	8,821	$	10,125
Dividends received from ATC(a)		7,347		4,611		9,078
Capital contributions to ATC		3,018		2,841		3,551

(a)MGE Transco recorded a $2.3 million dividend receivable from ATC as of December 31, 2017. A cash dividend was received in January of 2018.

ATC Holdco was formed in December 2016. In the near term, it is expected that ATC Holdco will be pursuing transmission development opportunities that typically have long development and investment lead times before becoming operational. In 2019, 2018, and 2017, MGEE Transco recorded capital contributions of $0.1 million, $0.3 million, and $2.9 million, respectively, to ATC Holdco.

ATC's summarized financial data is as follows:

(In thousands)
Income statement data for the year ended December 31,		2019		2018		2017
Operating revenues	$	744,371	$	690,510	$	721,672
Operating expenses		(373,527)		(358,703)		(346,308)
Other income		48		2,405		7,402
Interest expense, net		(110,490)		(110,725)		(110,138)
Earnings before members' income taxes	$	260,402	$	223,487	$	272,628

Balance sheet data as of December 31,		2019		2018
Current assets	$	84,635	$	87,250
Noncurrent assets		5,244,220		4,928,793
Total assets	$	5,328,855	$	5,016,043
Current liabilities	$	502,601	$	640,040
Long-term debt		2,312,799		2,013,997
Other noncurrent liabilities		298,828		295,281
Members' equity		2,214,627		2,066,725
Total members' equity and liabilities	$	5,328,855	$	5,016,043

During 2019, 2018, and 2017, MGE recorded $30.4 million, $29.0 million, and $29.2 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, 2019 and 2018, MGE had a receivable due from ATC of $1.6 million and $0.1 million, respectively. The 2019 receivable includes expenditures to fund transmission infrastructure upgrades at Badger Hollow I and Two Creeks. MGE will be reimbursed for these costs after the new generation assets have been placed into service.