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INVESTMENT IN TRANSMISSION AFFILIATES
 6 Months Ended
Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENT IN TRANSMISSION AFFILIATES 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, 2019
(in millions)
 
ATC
 
ATC Holdco
 
Total
Balance at beginning of period
 
$
1,630.6

 
$
40.0

 
$
1,670.6

Add: Earnings (loss) from equity method investment
 
37.4

 
(0.5
)
 
36.9

Add: Capital contributions
 
18.1

 
0.4

 
18.5

Less: Distributions
 
29.4

 
—

 
29.4

Less: Other
 
0.1

 
—

 
0.1

Balance at end of period
 
$
1,656.6

 
$
39.9

 
$
1,696.5


 
 
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


 
 
Six Months Ended June 30, 2019
(in millions)
 
ATC
 
ATC Holdco
 
Total
Balance at beginning of period
 
$
1,625.3

 
$
40.0

 
$
1,665.3

Add: Earnings (loss) from equity method investment
 
73.9

 
(0.9
)
 
73.0

Add: Capital contributions
 
21.1

 
0.8

 
21.9

Less: Distributions
 
63.6

 
—

 
63.6

Less: Other
 
0.1

 
—

 
0.1

Balance at end of period
 
$
1,656.6

 
$
39.9

 
$
1,696.5



 
 
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.

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)
 
2019
 
2018
 
2019
 
2018
Charges to ATC for services and construction
 
$
3.3

 
$
4.1

 
$
7.3

 
$
8.7

Charges from ATC for network transmission services
 
87.0

 
84.6

 
174.1

 
169.1

Refund from ATC related to a FERC audit
 
—

 
22.0

 
—

 
22.0



Our balance sheets included the following receivables and payables for services received from or provided to ATC:
(in millions)
 
June 30, 2019
 
December 31, 2018
Accounts receivable for services provided to ATC
 
$
2.3

 
$
3.4

Accounts payable for services received from ATC
 
29.0

 
28.2

Amounts due from ATC for transmission infrastructure upgrades*
 
—

 
29.4



*
In connection with UMERC's construction of the new natural gas-fired generation in the Upper Peninsula of Michigan, UMERC was required to initially fund the construction of the transmission infrastructure upgrades owned by ATC that are needed for the new generation. In the second quarter of 2019, ATC fully reimbursed UMERC for these costs.

Summarized financial data for ATC is included in the following tables:
 
 
Three Months Ended June 30
 
Six Months Ended June 30
(in millions)
 
2019
 
2018
 
2019
 
2018
Income statement data
 
 
 
 
 
 
 
 
Operating revenues
 
$
182.2

 
$
165.5

 
$
359.9

 
$
330.9

Operating expenses
 
93.6

 
91.5

 
184.0

 
176.4

Other expense, net
 
28.6

 
25.4

 
57.4

 
53.0

Net income
 
$
60.0

 
$
48.6

 
$
118.5

 
$
101.5



(in millions)
 
June 30, 2019
 
December 31, 2018
Balance sheet data
 
 
 
 
Current assets
 
$
88.8

 
$
87.2

Noncurrent assets
 
5,100.7

 
4,928.8

Total assets
 
$
5,189.5

 
$
5,016.0

 
 
 
 
 
Current liabilities
 
$
562.1

 
$
640.0

Long-term debt
 
2,213.0

 
2,014.0

Other noncurrent liabilities
 
294.4

 
295.3

Shareholders' equity
 
2,120.0

 
2,066.7

Total liabilities and shareholders' equity
 
$
5,189.5

 
$
5,016.0