INVESTMENT IN TRANSMISSION AFFILIATES

3 Months Ended

Mar. 31, 2024

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 March 31, 2024




















(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,980.8	$	25.1	$	2,005.9
Add: Earnings from equity method investment	44.4		0.4		44.8
Add: Capital contributions	12.1		—		12.1
Less: Distributions	35.7		—		35.7

Balance at end of period	$	2,001.6	$	25.5	$	2,027.1

	Three Months Ended March 31, 2023
(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,884.6	$	24.6	$	1,909.2
Add: Earnings from equity method investment	42.9		0.9		43.8
Add: Capital contributions	6.1		—		6.1
Less: Distributions	37.4		—		37.4


Balance at end of period	$	1,896.2	$	25.5	$	1,921.7

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 March 31
(in millions)		2024		2023
Charges to ATC for services and construction		$	4.7	$	3.8
Charges from ATC for network transmission services		103.3		94.5

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


(in millions)	March 31, 2024		December 31, 2023
Accounts receivable for services provided to ATC	$	1.8	$	1.6

Accounts payable for services received from ATC	49.7		49.9
Amounts due from ATC for transmission infrastructure upgrades (1)	42.1		46.1

(1)These transmission infrastructure upgrades were primarily related to the construction of WE's and WPS's renewable energy projects.

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


	Three Months Ended March 31
(in millions)		2024		2023
Income statement data
Operating revenues		$	211.9	$	200.4
Operating expenses		104.8		99.1
Other expense, net		35.2		32.5
Net income		$	71.9	$	68.8


(in millions)	March 31, 2024		December 31, 2023
Balance sheet data
Current assets	$	133.2	$	115.2
Noncurrent assets	6,423.4		6,337.0
Total assets	$	6,556.6	$	6,452.2

Current liabilities	$	587.9	$	495.9
Long-term debt	2,736.3		2,736.0
Other noncurrent liabilities	562.2		585.2
Members' equity	2,670.2		2,635.1
Total liabilities and members' equity	$	6,556.6	$	6,452.2