Investment in ATC

3 Months Ended

Mar. 31, 2014

Equity Method Investments and Joint Ventures [Abstract]

Investment in ATC

Investment in ATC - MGE Energy and MGE.

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, 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 three months endedMarch 31,2014 and 2013, MGE Transco recorded the following:

		Three Months Ended
		March 31,
(In thousands)		2014		2013
Equity in earnings from investment in ATC	$	2,481	$	2,396
Dividends received from ATC		1,917		1,807
Capital contributions to ATC		533		178

On April 30, 2014, MGE Transco made an additional $0.5million capital contribution to ATC.

MGE Transco's investment in ATC as of March 31,2014 and December 31, 2013 was $65.6 million and $64.5 million, respectively.

At March 31,2014, 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 three months ended March 31, 2014 and 2013, is as follows:

		Three Months Ended
		March 31,
(In thousands)		2014		2013
Operating revenues	$	163,337	$	151,737
Operating expenses		(78,623)		(69,770)
Other income (expense), net		388		(448)
Interest expense, net		(21,996)		(21,044)
Earnings before members' income taxes	$	63,106	$	60,475