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Investments
 12 Months Ended
Dec. 31, 2018
Investments Disclosure [Abstract]  
Investments

Investments - MGE Energy and MGE.

a. Equity Securities, Equity Method Investments, and Other Investments.

MGE EnergyMGE
(In thousands)2018201720182017
Equity securities(a)$9,363$7,291$388$409
Equity method investments:
ATC and ATC Holdco(b)66,31359,298--
Other261,128--
Total equity method investments66,33960,426--
Other investments2,29855--
Total$78,000$67,772$388$409

(a) Reflects modified retrospective application of new authoritative guidance related to Financial Instruments as described in Footnote 2. Prior to January 1, 2018, investments were considered available for sale securities. As of December 31, 2017, MGE Energy had available for sale securities with a cost basis of $6.7 million, gross unrealized gains of $0.7 million, and gross unrealized losses of less than $0.1 million. As of December 31, 2017, MGE had available for sale securities with a cost basis of $0.5 million and gross unrealized losses of less than $0.1 million.

(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.

MGE Energy's and MGE's equity securities represent publicly traded securities and private equity investments in common stock of companies in various industries.

During the years ended December 31, 2018, 2017, and 2016, certain investments were liquidated. As a result of these liquidations, MGE Energy and MGE received the following:

MGE EnergyMGE
(In thousands)201820172016201820172016
Cash proceeds$960$677$408$3$-$16
Gain (loss) on sale4765221213-(8)

b. 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, which, since December 1, 2016, is owned by 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 wholly-owned subsidiary of MGE Energy.

MGE Transco and MGEE Transco have accounted for their investment in ATC and ATC Holdco, respectively, under the equity method of accounting. For the years ended December 31, 2018, 2017, and 2016, MGE Transco recorded the following:

(In thousands)201820172016
Equity earnings from investment in ATC$8,821$10,125$8,670
Dividends received from ATC(a)4,6119,0787,926
Capital contributions to ATC2,8413,5512,486

(a) MGE Transco recorded a $2.3 million and a $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 Holdco was formed in December 2016. In the near term, it is expected that ATC Holdco will be pursuing transmission development opportunities that typically have long development and investment lead times before becoming operational. In 2018 and 2017, MGEE Transco recorded capital contributions of $0.3 million and $2.9 million, respectively, to ATC Holdco.

As of December 31, 2018 and 2017, MGE Transco held a 3.6% ownership interest in ATC. As of December 31, 2018 and 2017, MGEE Transco held a 4.4% ownership interest in ATC Holdco.

In June 2016, the PSCW required MGE to transfer its interest in ATC to MGE Energy, which was to be completed by December 31, 2022. The requirement arose in the context of requests for regulatory approvals by several owners of ATC in connection with a reorganization of ATC. MGE's ownership interest in ATC, held through MGE Transco, was transferred net of deferred tax liabilities to MGE Energy by way of a dividend in kind of $15.8 million as of December 1, 2016. As a result of the transfer, MGE's ownership interest in MGE Transco was completely eliminated in favor of MGE Energy. The change had no effect on MGE Energy's consolidated financial statements.

ATC's summarized financial data is as follows:

(In thousands)
Income statement data for the year ended December 31,201820172016
Operating revenues$690,510$721,672$650,806
Operating expenses(358,703)(346,308)(323,947)
Other income2,4057,4025,361
Interest expense, net(110,725)(110,138)(99,464)
Earnings before members' income taxes$223,487$272,628$232,756

Balance sheet data as of December 31,20182017
Current assets$87,250$87,730
Noncurrent assets4,928,7934,598,919
Total assets$5,016,043$4,686,649
Current liabilities$640,040$767,248
Long-term debt2,013,9971,790,590
Other noncurrent liabilities295,281240,286
Members' equity2,066,7251,888,525
Total members' equity and liabilities$5,016,043$4,686,649

During 2018, 2017, and 2016, MGE recorded $29.0 million, $29.2 million, and $29.1 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, 2018 and 2017, MGE had a receivable due from ATC of $0.1 million and $0.2 million, respectively.