Investments

12 Months Ended

Dec. 31, 2020

Investments Disclosure [Abstract]

Investments

Investments - MGE Energy and MGE.

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

		MGE Energy				MGE
(In thousands)		2020		2019		2020		2019
Equity securities	$	17,906	$	14,546	$	603	$	209
Equity method investments:
ATC and ATC Holdco		74,423		71,609		-		-
Other		39		39		-		-
Total equity method investments		74,462		71,648		-		-
Other investments		2,308		2,298		-		-
Total	$	94,676	$	88,492	$	603	$	209

Equity securities represent publicly traded securities and private equity investments in common stock of companies in various industries.

During the years ended December 31, 2020, 2019, and 2018, certain investments were liquidated. As a result of these liquidations, the following was received:

		MGE Energy						MGE
(In thousands)		2020		2019		2018		2020		2019		2018
Cash proceeds	$	622	$	216	$	960	$	-	$	2	$	3
Gain (loss) on sale		379		580		476		-		(343)		3

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.

As of December 31, 2020 and 2019, MGE Transco held a 3.6% ownership interest in ATC. As of December 31, 2020 and 2019, MGEE Transco held a 4.4% ownership interest in ATC Holdco.

MGE Transco and MGEE Transco have accounted for their investment in ATC and ATC Holdco, respectively, under the equity method of accounting. Equity earnings from investments are recorded as "Other income" on the consolidated statements of income of MGE Energy. For the years ended December 31, MGE Transco recorded the following:

(In thousands)		2020		2019		2018
Equity earnings from investment in ATC	$	10,167	$	9,889	$	8,821
Dividends received from ATC(a)		8,633		7,347		4,611
Capital contributions to ATC		1,249		3,018		2,841

(a)MGE Transco recorded a $2.3 million dividend receivable from ATC as of December 31, 2017. A cash dividend was received in January of 2018.

ATC Holdco was formed in December 2016. ATC Holdco's future transmission development activities have been suspended for the near term. In 2020, 2019, and 2018, MGEE Transco recorded capital contributions of $0.3 million, $0.1 million, and $0.3 million, respectively, to ATC Holdco.

(In thousands)
Income statement data for the year ended December 31,		2020		2019		2018
Operating revenues	$	758,117	$	744,371	$	690,510
Operating expenses		(372,463)		(373,527)		(358,703)
Other income		1,922		48		2,405
Interest expense, net		(112,818)		(110,490)		(110,725)
Earnings before members' income taxes	$	274,758	$	260,402	$	223,487

Balance sheet data as of December 31,		2020		2019
Current assets	$	92,735	$	84,635
Noncurrent assets		5,400,538		5,244,220
Total assets	$	5,493,273	$	5,328,855
Current liabilities	$	310,749	$	502,601
Long-term debt		2,512,246		2,312,799
Other noncurrent liabilities		378,205		298,828
Members' equity		2,292,073		2,214,627
Total members' equity and liabilities	$	5,493,273	$	5,328,855

MGE receives transmission and other services from ATC. During 2020, 2019, and 2018, MGE recorded $30.7 million, $30.4 million, and $29.0 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, 2020 and 2019, MGE had a receivable due from ATC of $2.6 million (related primarily to Badger Hollow I and II) and $1.6 million (related primarily to Two Creeks and Badger Hollow I and II), respectively. MGE is reimbursed for these costs after the new generation assets are placed into service.