Investments

12 Months Ended

Dec. 31, 2021

Investments - MGE Energy and MGE.

Equity Securities, Equity Method Investments, and Other Investments.


	MGE Energy				MGE
(In thousands)	2021		2020		2021		2020
Equity securities	$	20,529	$	17,906	$	230	$	603
Equity method investments:
ATC and ATC Holdco		75,862		74,423		—		—
Other		39		39		—		—
Total equity method investments		75,901		74,462		—		—
Other investments		2,324		2,308		—		—
Total	$	98,754	$	94,676	$	230	$	603

Equity securities represent publicly traded securities and private equity investments in common stock of companies in various industries.

During the years ended December 31, 2021, 2020, and 2019, certain investments were liquidated. As a result of these liquidations, the following was received:


	MGE Energy						MGE
(In thousands)	2021		2020		2019		2021		2020		2019
Cash proceeds	$	1,684	$	622	$	216	$	—	$	—	$	2
Gain (loss) on sale		1,543		379		580		—		—		(343	)

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, a subsidiary of 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 subsidiary of MGE Energy.

As of December 31, 2021 and 2020, MGE Transco held a 3.6% ownership interest in ATC. As of December 31, 2021 and 2020, 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. Equity earnings from investments are recorded as "Other income" on the consolidated statements of income of MGE Energy. For the years ended December 31, MGE Transco recorded the following:


(In thousands)	2021		2020		2019
Equity earnings from investment in ATC	$	9,774	$	10,167	$	9,889
Dividends received from ATC		7,832		8,633		7,347
Capital contributions to ATC		—		1,249		3,018

In January 2022, MGE Transco made a $1.2 million capital contribution to ATC.

ATC Holdco was formed in December 2016. ATC Holdco's transmission development activities have been suspended for the near term. In 2020 and 2019, MGEE Transco recorded capital contributions of $0.3 million and $0.1 million, respectively, to ATC Holdco. In 2021, MGEE Transco recorded no capital contributions to ATC Holdco.

ATC's summarized financial data is as follows:


(In thousands)
Income statement data for the year ended December 31,	2021			2020			2019
Operating revenues	$	754,838		$	758,117		$	744,371
Operating expenses		(376,153	)		(372,463	)		(373,527	)
Other income		1,144			1,922			48
Interest expense, net		(115,089	)		(112,818	)		(110,490	)
Earnings before members' income taxes	$	264,740		$	274,758		$	260,402

Balance sheet data as of December 31,	2021			2020
Current assets	$	89,747		$	92,735
Noncurrent assets		5,628,127			5,400,538
Total assets	$	5,717,874		$	5,493,273

Current liabilities	$	436,918		$	310,749
Long-term debt		2,513,009			2,512,246
Other noncurrent liabilities		421,997			378,205
Members' equity		2,345,950			2,292,073
Total members' equity and liabilities	$	5,717,874		$	5,493,273

MGE receives transmission and other related services from ATC. During 2021, 2020, and 2019, MGE recorded $32.0 million, $30.7 million, and $30.4 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, 2021 and 2020, MGE had a receivable due from ATC of $7.0 million and $2.6 million, respectively, related primarily to transmission interconnection at Badger Hollow I and II. MGE is reimbursed for these costs after the new generation assets are placed into service.