INVESTMENT IN ATC

3 Months Ended

Mar. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN ATC

Investment in ATC

Our electric transmission investment segment consists of WPS Investments LLC’s ownership interest in ATC, which was approximately 34% at March 31, 2015. ATC is a for-profit, transmission-only company regulated by FERC.

The following table shows changes to our investment in ATC:

	Three Months Ended March 31
(Millions)	2015		2014
Balance at the beginning of period	$	536.7	$	508.4
Add: Earnings from equity method investment	17.0		22.5
Add: Capital contributions	1.7		5.1
Less: Dividends received	13.6		18.4
Balance at the end of period	$	541.8	$	517.6

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 reflect the impact of a reduction to earnings based on this issue. Our equity earnings for the first quarter of 2015 also included a reduction of $4.8 million related to prior years due to a revision to the estimated refund.

Financial data for all of ATC is included in the following tables:

	Three Months Ended March 31
(Millions)	2015		2014
Income statement data
Revenues	$	152.4	$	163.3
Operating expenses	80.0		78.6
Other expense	24.4		21.6
Net income	$	48.0	$	63.1

(Millions)	March 31, 2015		December 31, 2014
Balance sheet data
Current assets	$	69.4	$	66.4
Noncurrent assets	3,779.3		3,728.7
Total assets	$	3,848.7	$	3,795.1
Current liabilities	$	325.7	$	313.1
Long-term debt	1,701.0		1,701.0
Other noncurrent liabilities	188.9		163.8
Shareholders’ equity	1,633.1		1,617.2
Total liabilities and shareholders’ equity	$	3,848.7	$	3,795.1