INVESTMENT IN TRANSMISSION AFFILIATES

6 Months Ended

Jun. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

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, 2021
(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,741.9	$	31.7	$	1,773.6
Add: Earnings from equity method investment	40.7		0.6		41.3

Less: Distributions	32.8		—		32.8

Less: Other	0.1		—		0.1
Balance at end of period	$	1,749.7	$	32.3	$	1,782.0

	Three Months Ended June 30, 2020
(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,686.7	$	31.0	$	1,717.7
Add: Earnings from equity method investment	52.5		0.4		52.9
Add: Capital contributions	6.0		—		6.0
Less: Distributions	32.0		—		32.0
Add: Other	0.1		—		0.1
Balance at end of period	$	1,713.3	$	31.4	$	1,744.7

	Six Months Ended June 30, 2021
(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,733.5	$	30.8	$	1,764.3
Add: Earnings from equity method investment	82.4		1.5		83.9

Less: Distributions	66.2		—		66.2

Balance at end of period	$	1,749.7	$	32.3	$	1,782.0

	Six Months Ended June 30, 2020
(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,684.7	$	36.1	$	1,720.8
Add: Earnings from equity method investment	92.1		0.6		92.7
Add: Capital contributions	9.0		—		9.0
Less: Distributions	72.6		—		72.6
Less: Return of capital	—		5.3		5.3
Add: Other	0.1		—		0.1
Balance at end of period	$	1,713.3	$	31.4	$	1,744.7

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 also required to initially fund the construction of transmission infrastructure upgrades needed for new generation projects. ATC owns these transmission assets and 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)	2021		2020		2021		2020
Charges to ATC for services and construction	$	5.7	$	7.0	$	11.7	$	13.0
Charges from ATC for network transmission services	89.1		79.6		181.7		166.5

Our balance sheets included the following receivables and payables for services provided to or received from ATC:


(in millions)	June 30, 2021		December 31, 2020
Accounts receivable for services provided to ATC	$	1.9	$	3.7

Accounts payable for services received from ATC	30.6		29.3
Amounts due from ATC for transmission infrastructure upgrades (1)	5.7		4.6

(1)The transmission infrastructure upgrades were primarily related to WE's and WPS's construction of their new solar projects, Badger Hollow II and Badger Hollow I, respectively.

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


	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2021		2020		2021		2020
Income statement data
Operating revenues	$	185.9	$	203.1	$	374.6	$	389.9
Operating expenses	92.4		97.5		187.5		192.7
Other expense, net	28.1		25.4		56.6		53.9
Net income	$	65.4	$	80.2	$	130.5	$	143.3


(in millions)	June 30, 2021		December 31, 2020
Balance sheet data
Current assets	$	92.5	$	92.7
Noncurrent assets	5,462.6		5,400.6
Total assets	$	5,555.1	$	5,493.3

Current liabilities	$	427.5	$	310.8
Long-term debt	2,412.7		2,512.2
Other noncurrent liabilities	397.4		378.2
Members' equity	2,317.5		2,292.1
Total liabilities and members' equity	$	5,555.1	$	5,493.3