INVESTMENT IN TRANSMISSION AFFILIATES

We own approximately 60% of ATC, a for-profit, transmission-only company regulated by the FERC for cost of service and certain state regulatory commissions for routing and siting of transmission projects. We also own approximately 75% of ATC Holdco, a separate entity formed in December 2016 to invest in transmission-related projects outside of ATC's traditional footprint. The following tables provide a reconciliation of the changes in our investments in ATC and ATC Holdco:



	Three Months Ended June 30, 2018
(in millions)	ATC		ATC Holdco			Total
Balance at beginning of period	$	1,561.1	$	37.8		$	1,598.9
Add: Earnings (loss) from equity method investment	29.8		(1.1		)	28.7
Add: Capital contributions	18.1		1.5			19.6
Less: Distributions	50.7		—			50.7
Add: Other	0.1		—			0.1
Balance at end of period	$	1,558.4	$	38.2		$	1,596.6



	Three Months Ended June 30, 2017
(in millions)	ATC		ATC Holdco			Total
Balance at beginning of period	$	1,515.6	$	(2.3	)	$	1,513.3
Add: Earnings (loss) from equity method investment	42.8		(1.0		)	41.8
Add: Capital contributions	15.1		7.8			22.9
Less: Distributions	34.0		—			34.0
Balance at end of period	$	1,539.5	$	4.5		$	1,544.0



	Six Months Ended June 30, 2018
(in millions)	ATC			ATC Holdco			Total
Balance at beginning of period	$	1,515.8	⁽¹⁾	$	37.6		$	1,553.4
Add: Earnings (loss) from equity method investment	63.2			(1.7		)	61.5
Add: Capital contributions	30.1			2.3			32.4
Less: Distributions	50.7		⁽²⁾	—			50.7
Balance at end of period	$	1,558.4		$	38.2		$	1,596.6


⁽¹⁾	Distributions of $39.9 million, received in the first quarter of 2018, were approved and recorded as a receivable from ATC in other current assets at December 31, 2017.


⁽²⁾	Distributions of $24.2 million, received in the third quarter of 2018, were approved and recorded as a receivable from ATC in accounts receivable at June 30, 2018.



	Six Months Ended June 30, 2017
(in millions)	ATC		ATC Holdco			Total
Balance at beginning of period *	$	1,443.9	$	—		$	1,443.9
Add: Earnings (loss) from equity method investment	90.5		(6.8		)	83.7
Add: Capital contributions	39.2		11.3			50.5
Less: Distributions	34.0		—			34.0
Less: Other	0.1		—			0.1
Balance at end of period	$	1,539.5	$	4.5		$	1,544.0


*	Distributions of $35.2 million, received in the first quarter of 2017, were approved and recorded as a receivable from ATC in other current assets at December 31, 2016.

We pay ATC for network transmission and other related services it provides. In addition, we provide a variety of operational, maintenance, and project management work for ATC, which is 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 June 30				Six Months Ended June 30
(in millions)	2018		2017		2018		2017
Charges to ATC for services and construction	$	4.1	$	3.7	$	8.7	$	7.9
Charges from ATC for network transmission services	84.6		87.3		169.1		174.6
Refund from ATC related to a FERC audit	22.0		—		22.0		—
Refund from ATC per FERC ROE order	—		—		—		28.3

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



(in millions)	June 30, 2018		December 31, 2017
Accounts receivable
Services provided to ATC	$	1.8	$	1.5
Other current assets
Dividends receivable from ATC	24.2		39.9
Accounts payable
Services received from ATC	28.2		31.2

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



	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2018		2017		2018		2017
Income statement data
Operating revenues	$	165.5	$	176.6	$	330.9	$	351.3
Operating expenses	91.5		83.0		176.4		165.7
Other expense, net	25.4		25.4		53.0		51.5
Net income	$	48.6	$	68.2	$	101.5	$	134.1



(in millions)	June 30, 2018		December 31, 2017
Balance sheet data
Current assets	$	97.1	$	87.7
Noncurrent assets	4,764.3		4,598.9
Total assets	$	4,861.4	$	4,686.6

Current liabilities	$	700.3	$	767.2
Long-term debt	1,914.3		1,790.6
Other noncurrent liabilities	288.0		240.3
Shareholders' equity	1,958.8		1,888.5
Total liabilities and shareholders' equity	$	4,861.4	$	4,686.6