Investments (Tables)

12 Months Ended

Dec. 31, 2017

Equity Method, Available for Sale Securities, and Other Investments

		MGE Energy				MGE
(In thousands)		2017		2016		2017		2016
Available for sale securities:
Cost basis	$	6,662	$	2,216	$	455	$	455
Gross unrealized gains		675		346		-		40
Gross unrealized losses		(46)		(8)		(46)		(8)
Fair value		7,291		2,554		409		487
Equity method investments:
ATC and ATC Holdco^(a)(b)		59,298		72,458		-		-
Other		1,128		1,158		-		-
Total equity method investments		60,426		73,616		-		-
Other investments		55		120		-		-
Total	$	67,772	$	76,290	$	409	$	487

(a) MGE Transco holds an ownership interest in ATC, and MGEE Transco holds an ownership interest in ATC Holdco. In July 2016, MGE's ownership interest in MGE Transco declined below a majority, resulting in MGE Energy's investment in MGE Transco being deconsolidated from MGE's consolidated financial statements. See Footnote 8 for further discussion of noncontrolling interest. In December 2016, MGE's ownership interest in MGE Transco was transferred to MGE Energy, see "ATC and ATC Holdco" below for additional information.

(b) In December 2017, there was a $20.4 million one-time tax impact related to ATC as a result of the Tax Act. See Footnote 12 for further information.

During the years ended December 31, 2017, 2016, and 2015, certain investments were liquidated. As a result of these liquidations, MGE Energy and MGE received the following:

		MGE Energy						MGE
(In thousands)		2017		2016		2015		2017		2016		2015
Cash proceeds	$	677	$	408	$	19	$	-	$	16	$	19
Gain (loss) on sale		522		121		10		-		(8)		10

Equity Method Investments Summarized Financial Data

For the years ended December 31, 2017, 2016, and 2015, MGE Transco recorded the following:

(In thousands)		2017		2016		2015
Equity earnings from investment in ATC	$	10,125	$	8,670	$	7,728
Dividends received from ATC^(a)		9,078		7,926		6,645
Capital contributions to ATC		3,551		2,486		710

(a) MGE Transco recorded a $2.3 million and $2.1 million dividend receivable from ATC as of December 31, 2017 and 2016, respectively. A cash dividend was received in January of each of the proceeding years.

ATC's summarized financial data for the years ended December 31, 2017, 2016, and 2015 is as follows:

(In thousands)
Income statement data for the year ended December 31,		2017		2016		2015
Operating revenues	$	721,672	$	650,806	$	615,836
Operating expenses		(344,935)		(322,517)		(319,321)
Other income		5,285		3,225		1,176
Interest expense, net		(109,394)		(98,758)		(97,250)
Earnings before members' income taxes	$	272,628	$	232,756	$	200,441

Balance sheet data as of December 31,		2017		2016
Current assets	$	87,730	$	75,790
Noncurrent assets		4,598,919		4,312,893
Total assets	$	4,686,649	$	4,388,683

Current liabilities	$	767,248	$	495,126
Long-term debt		1,790,590		1,865,302
Other noncurrent liabilities		240,286		271,495
Members' equity		1,888,525		1,756,760
Total members' equity and liabilities	$	4,686,649	$	4,388,683