a. Equity Method Investments, Available for Sale Securities, and Other Investments.

(In thousands)		MGE Energy				MGE
		2012		2011		2012		2011
Available for sale securities:
Cost basis	$	1,575	$	1,347	$	490	$	482
Gross unrealized gains		161		196		10		87
Gross unrealized losses		(3)		(9)		(3)		(9)
Fair value	$	1,733	$	1,534	$	497	$	560
Equity method investments:
ATC	$	61,038	$	56,975	$	61,038	$	56,975
Other		20		21		20		21
Total equity method investments	$	61,058	$	56,996	$	61,058	$	56,996
Other investments		1,804		1,802		0		0
Total	$	64,595	$	60,332	$	61,555	$	57,556

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

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

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. 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 years ended December 31, 2012, 2011, and 2010, MGE Transco recorded equity earnings from the investment in ATC of $9.1 million, $8.6 million, and $8.5 million, respectively. Dividend income received from ATC was $7.1 million for the year ended December 31, 2012 and $6.7 million for both the years ended December 31, 2011 and 2010. During the years ended December 31, 2012, 2011, and 2010, MGE Transco made $2.1 million, $0.9 million, and $0.7 million, respectively, in capital contributions to ATC.

During March 2010, MGE sold a parcel of land in Middleton, Wisconsin to ATC for $2.7 million, resulting in a gain of $2.6 million (pretax) in other income. The transaction was approved by the PSCW.

At December 31, 2012 and 2011, MGE Transco held a 3.6% ownership interest in ATC. MGE Transco's investment balance is different from the amount of the underlying equity in the net assets of ATC. This difference is attributable to the allocation of certain tax impacts related to the initial asset transfer.

At December 31, 2012 and 2011, 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 years ended December 31, 2012, 2011, and 2010 is as follows:

(In thousands)
Income statement data for the year ended December 31,		2012		2011		2010
Operating revenues	$	603,254	$	567,174	$	556,741
Operating expenses		(280,999)		(261,568)		(251,120)
Other expense		(2,533)		(1,332)		(885)
Interest expense, net		(82,296)		(80,359)		(85,067)
Earnings before members' income taxes	$	237,426	$	223,915	$	219,669

Balance sheet data as of December 31,		2012		2011		2010
Current assets	$	63,134	$	58,671	$	59,856
Noncurrent assets		3,274,704		3,053,742		2,888,448
Total assets	$	3,337,838	$	3,112,413	$	2,948,304

Current liabilities	$	251,541	$	298,473	$	428,387
Long-term debt		1,550,000		1,400,005		1,175,010
Other noncurrent liabilities		95,829		82,647		84,940
Members' equity		1,440,468		1,331,288		1,259,967
Total members' equity and liabilities	$	3,337,838	$	3,112,413	$	2,948,304