INVESTMENT IN TRANSMISSION AFFILIATES

We own approximately 60% of ATC, a for-profit, transmission-only company regulated by the FERC for cost of service and certain state regulatory commissions for routing and siting of transmission projects. We also own approximately 75% of ATC Holdco, a separate entity formed in December 2016 to invest in transmission-related projects outside of ATC's traditional footprint. The corporate managers for ATC and ATC Holdco each have an eleven-member board of directors. We have one representative on each board. Each member of the board has only one vote. Due to voting requirements, each individual board member has less than 10% of the voting control. The following tables provide a reconciliation of the changes in our investments in ATC and ATC Holdco:



	2018
(in millions)	ATC		ATC Holdco			Total
Balance at January 1	$	1,515.8	$	37.6		$	1,553.4
Add: Earnings (loss) from equity method investment	139.6		(2.9		)	136.7
Add: Capital contributions	48.2		5.3			53.5
Less: Distributions	78.2		—			78.2
Less: Other	0.1		—			0.1
Balance at December 31	$	1,625.3	$	40.0		$	1,665.3



	2017
(in millions)	ATC			ATC Holdco			Total
Balance at January 1	$	1,443.9		$	—		$	1,443.9
Add: Earnings (loss) from equity method investment	166.0			(11.7		)	154.3
Add: Capital contributions	60.3			49.3			109.6
Less: Distributions	154.2		*	—			154.2
Less: Other	0.2			—			0.2
Balance at December 31	$	1,515.8		$	37.6		$	1,553.4


*	Of this amount, $39.9 million was recorded as a receivable from ATC in other current assets at December 31, 2017.



	ATC
(in millions)	2016
Balance at January 1	$	1,380.9
Add: Earnings from equity method investment	146.5
Add: Capital contributions	42.3
Add: Acquisition of Integrys's investment in ATC	(1.0		)
Add: Equity method goodwill from the acquisition of Integrys ⁽¹⁾	10.4
Less: Distributions ⁽²⁾	135.1
Less: Other	0.1
Balance at December 31	$	1,443.9


⁽¹⁾	Represents an adjustment to the purchase price allocated to Integrys's investment in ATC in excess of the recorded value.


⁽²⁾	Of this amount, $35.2 million was recorded as a receivable from ATC in other current assets at December 31, 2016.

We pay ATC for network transmission and other related services it provides. In addition, we provide a variety of operational, maintenance, and project management work for ATC, which is reimbursed by ATC. We are required to pay the cost of needed transmission infrastructure upgrades for new generation projects while the projects are under construction. ATC reimburses us for these costs when the new generation is placed in service.

The following table summarizes our significant related party transactions with ATC during the years ended December 31:



(in millions)	2018		2017		2016
Charges to ATC for services and construction	$	21.8	$	17.1	$	18.5
Charges from ATC for network transmission services	338.1		349.3		357.3
Refund from ATC related to a FERC audit	22.0		—		—
Refund from ATC per FERC ROE order	—		28.3		—

As of December 31, 2018 and 2017, our balance sheets included the following receivables and payables related to ATC:



(in millions)	2018		2017
Accounts receivable
Services provided to ATC	$	3.4	$	1.5
Other current assets
Dividends receivable from ATC	—		39.9
Accounts payable
Services received from ATC	28.2		31.2

Summarized financial data for ATC is included in the tables below:



(in millions)	2018		2017		2016
Income statement data
Operating revenues	$	690.5	$	721.7	$	650.8
Operating expenses	358.7		345.0		322.5
Other expense, net	108.3		104.1		95.5
Net income	$	223.5	$	272.6	$	232.8



(in millions)	December 31, 2018		December 31, 2017
Balance sheet data
Current assets	$	87.2	$	87.7
Noncurrent assets	4,928.8		4,598.9
Total assets	$	5,016.0	$	4,686.6

Current liabilities	$	640.0	$	767.2
Long-term debt	2,014.0		1,790.6
Other noncurrent liabilities	295.3		240.3
Shareholders' equity	2,066.7		1,888.5
Total liabilities and shareholders' equity	$	5,016.0	$	4,686.6