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Investment in ATC
 9 Months Ended
Sep. 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 nine months ended September 30, 2014 and 2013, MGE Transco recorded the following:

Nine Months Ended
September 30,
(In thousands)20142013
Equity in earnings from investment in ATC$7,306 $7,045
Dividends received from ATC5,762 5,498
Capital contributions to ATC1,420 1,065

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

MGE Transco's investment in ATC as of September 30, 2014 and December 31, 2013 was $67.5 million and $64.5 million, respectively.

At September 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 nine months ended September 30, 2014 and 2013, is as follows:

Three Months EndedNine Months Ended
September 30,September 30,
(In thousands)2014201320142013
Operating revenues$ 163,643 $ 160,480 $ 486,970 $ 464,345
Operating expenses (76,561) (77,595) (229,589) (217,240)
Other income (expense), net 693 917 1,403 585
Interest expense, net (22,204) (21,136) (66,442) (63,232)
Earnings before members' income taxes$ 65,571 $ 62,666 $ 192,342 $ 184,458