Equity Method Investments

Investments in corporate joint ventures and other companies accounted for under the equity method at December 31, 2014, and 2013, were as follows:



(Millions)	2014		2013
ATC	$	536.7	$	508.4
INDU Solar Holdings, LLC	21.8		24.7
WRPC	7.7		7.0
AMP Trillium, LLC	5.5		—
Other	0.7		0.8
Equity method investments	$	572.4	$	540.9

ATC

Our electric transmission investment segment consists of WPS Investments LLC’s ownership interest in ATC, which was approximately 34% at December 31, 2014. ATC is a for-profit, transmission-only company regulated by FERC.

The following table shows changes to our investment in ATC during the years ended December 31:



(Millions)	2014		2013		2012
Balance at the beginning of period	$	508.4	$	476.6	$	439.4
Add: Earnings from equity method investment	85.7		89.1		85.3
Add: Capital contributions	17.0		13.7		20.4
Less: Dividends received	74.4		71.0		68.5
Balance at the end of period	$	536.7	$	508.4	$	476.6

ATC is currently named in a complaint filed with the FERC requesting a reduction in the base return on equity (ROE) used by MISO transmission owners to 9.15%. ATC's current authorized ROE is 12.2%. Although we are currently unable to determine how the FERC may rule in this complaint, we believe it is probable that a refund will be required upon resolution of this issue, based on rulings in a similar complaint. As a result, our equity earnings and corresponding equity method investment in ATC reflected an estimated $6.6 million reduction during 2014.

The electric utilities provide construction and other services to ATC and receive network transmission services from ATC. The related party transactions recorded by the electric utilities during the years ended December 31 were as follows:



(Millions)	2014		2013		2012
Total charges to ATC for services and construction	$	9.9	$	11.3	$	12.5
Total costs for network transmission services provided by ATC	103.8		104.9		100.3

INDU Solar Holdings, LLC

Integrys Solar, LLC, a subsidiary of PDI, owns 50% of INDU Solar Holdings, LLC. INDU Solar Holdings, LLC owns solar energy projects in California, Pennsylvania, New Jersey, Arizona, and Massachusetts that deliver electricity and related products to commercial, government, and utility customers under long-term power purchase agreements.

The following table shows changes to our investment in INDU Solar Holdings, LLC during the years ended December 31:



(Millions)	2014		2013		2012
Balance at the beginning of period	$	24.7	$	27.5	$	28.4
Add: Earnings from equity method investment	1.8		1.3		1.1
Add: Capital contributions	—		—		7.0
Less: Return of capital to partners	4.7		4.1		9.0
Balance at the end of period	$	21.8	$	24.7	$	27.5

WRPC

WPS owns 50% of the stock of WRPC, which owns two hydroelectric plants and an oil-fired combustion turbine. Half of the energy output of the hydroelectric plants is sold to WPS, and half is sold to Wisconsin Power and Light. The electric power from the combustion turbine is also sold in equal parts to WPS and Wisconsin Power and Light.

The following table shows changes to our investment in WRPC during the years ended December 31:



(Millions)	2014		2013		2012
Balance at the beginning of period	$	7.0	$	7.3	$	7.7
Add: Earnings from equity method investment	0.8		1.0		0.8
Add: Capital contributions	0.5		—		—
Less: Dividends received	0.6		1.3		1.2
Balance at the end of period	$	7.7	$	7.0	$	7.3

WPS provides services to WRPC, purchases energy from WRPC, and receives net proceeds from sales of energy into the MISO market from WRPC. The related party transactions recorded by WPS during the years ended December 31 were as follows:



(Millions)	2014		2013		2012
Charges to WRPC for operations	$	1.4	$	0.9	$	0.8
Purchases of energy from WRPC	3.7		3.7		5.0
Net proceeds from WRPC sales of energy to MISO	—		—		2.9

AMP Trillium, LLC

AMP Trillium, LLC is a joint venture between ITF and AMP Americas, LLC. ITF owns 30% and AMP Americas, LLC owns 70% of this joint venture. AMP Trillium, LLC owns and operates compressed natural gas (CNG) fueling stations. In April 2014, ITF and AMP Americas, LLC restructured this joint venture. Prior to the restructuring, we consolidated AMP Trillium, LLC. However, due to the restructuring, we started accounting for AMP Trillium, LLC as an equity method investment in April 2014. See Note 27, Variable Interest Entities, for more information.

The following table shows changes to our investment in AMP Trillium, LLC during the year ended December 31:



(Millions)	2014
Balance at the beginning of period	$	—
Add: Capital contributions	5.5
Balance at the end of period	$	5.5

ITF sells CNG fueling stations to AMP Trillium, LLC and provides financial support to AMP Trillium, LLC through loans. At December 31, 2014, ITF had $13.8 million of notes receivable due from AMP Trillium, LLC. During 2014, ITF recorded $3.1 million of net proceeds from the sale of CNG fueling stations to AMP Trillium, LLC.

Financial Data

Combined financial data of our significant equity method investments, ATC, INDU Solar Holdings, LLC, WRPC, and AMP Trillium, LLC, are included in the tables below:



(Millions)	2014		2013		2012
Income statement data
Revenues	$	655.6	$	642.0	$	618.3
Operating expenses	323.5		306.2		292.1
Other expense	88.4		83.7		85.1
Net income	$	243.7	$	252.1	$	241.1

Earnings from equity method investments	$	88.3	$	91.4	$	87.2



(Millions)	December 31, 2014		December 31, 2013
Balance sheet data
Current assets	$	80.7	$	90.2
Noncurrent assets	3,835.9		3,587.2
Total assets	$	3,916.6	$	3,677.4

Current liabilities	$	324.0	$	383.6
Long-term debt	1,721.6		1,559.1
Other noncurrent liabilities	173.2		134.4
Shareholders’ equity	1,697.8		1,600.3
Total liabilities and shareholders’ equity	$	3,916.6	$	3,677.4