INVESTMENT IN AMERICAN TRANSMISSION COMPANY

We own approximately 60% of ATC, a for-profit, electric transmission company regulated by the FERC and certain state regulatory commissions. The following table shows changes to our investment in ATC:



	Three Months Ended September 30				Nine Months Ended September 30
(in millions)	2017		2016		2017			2016
Balance at beginning of period	$	1,544.0	$	1,425.0	$	1,443.9		$	1,380.9
Add: Earnings from equity method investment	39.2		38.3		122.9			107.7
Add: Capital contributions	12.8		15.0		63.3			27.1
Add: Acquisition of Integrys's investment in ATC	—		—		—			(1.0		)	⁽¹⁾
Add: Adjustment to equity method goodwill	—		—		—			10.4
Less: Distributions	35.2		25.2		69.2		⁽²⁾	71.9
Less: Other	—		—		0.1			0.1
Balance at end of period	$	1,560.8	$	1,453.1	$	1,560.8		$	1,453.1


⁽¹⁾	Amount reflects an adjustment to the allocation of the purchase price for Integrys made in the second quarter of 2016.


⁽²⁾	Distributions of $35.2 million, received in the first quarter of 2017, were approved and recorded in December 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:



	Three Months Ended September 30				Nine Months Ended September 30
(in millions)	2017		2016		2017			2016
Charges to ATC for services and construction	$	4.4	$	4.4	$	12.3		$	12.8
Charges from ATC for network transmission services	87.4		89.3		262.0			271.4
Refund from ATC per FERC ROE order	—		—		(28.3		)	—

Our balance sheets included the following receivables and payables related to ATC:



(in millions)	September 30, 2017		December 31, 2016
Accounts receivable
Services provided to ATC	$	1.5	$	2.2
Accounts payable
Services received from ATC	29.1		28.7

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



	Three Months Ended September 30				Nine Months Ended September 30
(in millions)	2017		2016		2017		2016
Income statement data
Revenues	$	171.1	$	158.1	$	522.4	$	476.6
Operating expenses	85.0		80.2		250.1		241.0
Other expense	27.5		23.5		79.6		71.2
Net income	$	58.6	$	54.4	$	192.7	$	164.4



(in millions)	September 30, 2017		December 31, 2016
Balance sheet data
Current assets	$	89.0	$	75.8
Noncurrent assets	4,564.9		4,312.9
Total assets	$	4,653.9	$	4,388.7

Current liabilities	$	772.1	$	495.1
Long-term debt	1,740.8		1,865.3
Other noncurrent liabilities	213.8		271.5
Shareholders' equity	1,927.2		1,756.8
Total liabilities and shareholders' equity	$	4,653.9	$	4,388.7