Investment in ATC

6 Months Ended

Jun. 30, 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 six months endedJune 30,2014 and 2013, MGE Transco recorded the following:

		Six Months Ended
		June 30,
(In thousands)		2014		2013
Equity in earnings from investment in ATC	$	4,883	$	4,705
Dividends received from ATC		3,835		3,638
Capital contributions to ATC		1,065		710

On July 31, 2014, MGE Transco made an additional $0.4million capital contribution to ATC.

MGE Transco's investment in ATC as of June 30,2014 and December 31, 2013 was $66.6 million and $64.5 million, respectively.

At June 30,2014, 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 and six months endedJune 30,2014 and 2013, is as follows:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
(In thousands)		2014		2013		2014		2013
Operating revenues	$	159,990	$	152,128	$	323,327	$	303,865
Operating expenses		(74,405)		(69,875)		(153,028)		(139,645)
Other income (expense), net		322		116		710		(332)
Interest expense, net		(22,242)		(21,052)		(44,238)		(42,096)
Earnings before members' income taxes	$	63,665	$	61,317	$	126,771	$	121,792