XML 33 R16.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Investment in ATC | 6 Months Ended
--- | ---
Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract] |
Investment in ATC | Investment in ATC - MGE Energy and MGE. ATC owns and operates electric transmission facilities primarily in Wisconsin. MGE received an interest in ATC when it, like other Wisconsin electric utilities, contributed its electric transmission facilities to ATC as required by Wisconsin law. That interest is presently held by MGE Transco, which is jointly owned by MGE Energy and MGE. MGE Transco has accounted for its investment in ATC under the equity method of accounting. For the three and six months ended June 30, 2016 and 2015, MGE Transco recorded the following:
|  |  | Three Months Ended |  | Six Months Ended |
|  |  | June 30, |  | June 30, |
| (In thousands) |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
| Equity in earnings from investment in ATC | $ | 1,767 | $ | 2,289 | $ | 4,000 | $ | 4,170 |
| Dividends received from ATC |  | 1,863 |  | 1,471 |  | 2,728 |  | 2,891 |
| Capital contributions to ATC |  | 177 |  | 177 |  | 710 |  | 355 |
MGE Transco's investment in ATC as of June 30, 2016, and December 31, 2015, was $71.4 million and $69.5 million, respectively. At June 30, 2016, MGE is the majority owner (51%), and MGE Energy, the holding company, is the minority owner (49%) of MGE Transco. MGE Energy's proportionate share of the equity and net income of MGE Transco is classified within the MGE financial statements as noncontro lling interest. MGE's ownership interest declined below a majority in July 2016 as a result of continued funding of ATC capital contributions by MGE Energy. As a result of the change in majority ownership in MGE Transco in July 2016, MGE will deconsolidate the noncontrolling interest within MGE's financial statements for MGE Energy's proportionate share of the equity in MGE Transco. As of June 30, 2016, the noncontrolling interest attributable to MGE Transco on MGE's cons olidated balance sheet was $24.9 million. No gain or loss was recognized in July 2016 due to MGE ceasing to have a controlling financial interest. In June 2016, the PSCW accepted a staff recommendation to have MGE transfer its interest in ATC to MGE Energy. As a result, M GE's ownership interest in MGE Transco will be completely eliminated in favor of MGE Energy when the transfers are complete, which is anticipated to occur in 2016. The recommendation arose in the context of requests for regulatory approvals by sever al owners of ATC in connection wit h a reorganization of ATC designed to separate its existing Wisconsin-based transmission operations from its non-Wisconsin transmission development activities. The change will have no effect on MGE Energy's consolidated fi nancial statements. ATC's summarized financial data for the three and six months ended June 30, 2016 and 2015, is as follows:
|  |  | Three Months Ended |  | Six Months Ended |
|  |  | June 30, |  | June 30, |
| (In thousands) |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
| Operating revenues | $ | 154,225 | $ | 165,171 | $ | 318,465 | $ | 317,528 |
| Operating expenses |  | (81,698) |  | (80,326) |  | (160,763) |  | (160,277) |
| Other income (expense), net |  | 1,308 |  | (81) |  | 1,435 |  | (19) |
| Interest expense, net |  | (24,882) |  | (24,172) |  | (49,090) |  | (48,655) |
| Earnings before members' income taxes | $ | 48,953 | $ | 60,592 | $ | 110,047 | $ | 108,577 |
MGE receives transmission and other related services from ATC. During the three and six months ended June 30, 2016, MGE recorded $7.4 million and $14.7 million, respectively, for transmission services received compared to $7.0 million and $14.1 million for the comparable periods in 2015. MGE also provides a variety of operational, maintenance, and project management services for ATC, which is reimbursed by ATC. As of June 30, 2016 and December 31, 2015, MGE had a receivable due from ATC of $0.2 million.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32847-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32787-111569 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration