Investment in American Transmission Company

12 Months Ended

Dec. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN AMERICAN TRANSMISSION COMPANY

Due to the acquisition of Integrys, our ownership of ATC increased from 26.2% to approximately 60%. ATC is a for-profit, transmission-only company regulated by the FERC and certain state regulatory commissions. We have one representative on ATC's ten-member board of directors. Each member of the board has only one vote. Due to voting requirements, no individual board member has more than 10% of the voting control. The following table shows changes to our investment in ATC during the years ended December 31:



(in millions)	2016				2015		2014
Balance at beginning of period	$	1,380.9			$	424.1	$	402.7
Add: Earnings from equity method investment	146.5				96.1		66.0
Add: Capital contributions	42.3				8.7		13.1
Add: Acquisition of Integrys's investment in ATC	(1.0		)		541.5		—
Add: Equity method goodwill from the acquisition of Integrys ⁽¹⁾	10.4				395.8		—
Less: Distributions	135.1			⁽²⁾	85.1		57.5
Less: Other	0.1				0.2		0.2
Balance at end of period	$	1,443.9			$	1,380.9	$	424.1


⁽¹⁾	Represents the purchase price allocated to Integrys's investment in ATC in excess of the recorded value.


⁽²⁾	Of this amount, $35.2 million was recorded as a receivable at December 31, 2016.

We pay ATC for transmission and other related services it provides. In addition, we provide a variety of operational, maintenance, and project management work for ATC, which are reimbursed by ATC. We are required to pay the cost of needed transmission infrastructure upgrades for new generation projects while the projects are under construction. ATC reimburses us for these costs when the new generation is placed in service.

The following table summarizes our significant related party transactions with ATC during the years ended December 31:



(in millions)	2016		2015		2014
Charges to ATC for services and construction	$	18.5	$	15.4	$	8.1
Charges from ATC for network transmission services	357.3		289.2		231.4

As of December 31, 2016 and 2015, our balance sheets included the following receivables and payables related to ATC:



(in millions)	2016		2015
Accounts receivable
Services provided to ATC	$	2.2	$	1.0
Accounts payable
Services received from ATC	28.7		28.3

Summarized financial data for ATC is included in the tables below:



(in millions)	2016		2015		2014
Income statement data
Revenues	$	650.8	$	615.8	$	635.0
Operating expenses	322.5		319.3		307.4
Other expense	95.5		96.1		88.9
Net income	$	232.8	$	200.4	$	238.7



(in millions)	December 31, 2016		December 31, 2015
Balance sheet data
Current assets	$	75.8	$	80.5
Noncurrent assets	4,312.9		3,948.3
Total assets	$	4,388.7	$	4,028.8

Current liabilities	$	495.1	$	330.3
Long-term debt	1,865.3		1,790.7
Other noncurrent liabilities	271.5		245.0
Shareholders' equity	1,756.8		1,662.8
Total liabilities and shareholders' equity	$	4,388.7	$	4,028.8