Equity Method Investments
Investments in corporate joint ventures and other companies accounted for under the equity method at December 31, 2013, and 2012 were as follows:
|
| | | | | | | | |
(Millions) | | 2013 | | 2012 |
ATC | | $ | 508.4 |
| | $ | 476.6 |
|
INDU Solar Holdings, LLC | | 24.7 |
| | 27.5 |
|
WRPC | | 7.0 |
| | 7.3 |
|
Other | | 0.8 |
| | 0.8 |
|
Equity method investments | | $ | 540.9 |
| | $ | 512.2 |
|
ATC
Our electric transmission investment segment consists of WPS Investments LLC’s ownership interest in ATC, which was approximately 34% at December 31, 2013. ATC is a for-profit, transmission-only company regulated by FERC.
The following table shows changes to our investment in ATC during the years ended December 31:
|
| | | | | | | | | | | | |
(Millions) | | 2013 | | 2012 | | 2011 |
Balance at the beginning of period | | $ | 476.6 |
| | $ | 439.4 |
| | $ | 416.3 |
|
Add: Earnings from equity method investment | | 89.1 |
| | 85.3 |
| | 79.1 |
|
Add: Capital contributions | | 13.7 |
| | 20.4 |
| | 8.5 |
|
Less: Dividends received | | 71.0 |
| | 68.5 |
| | 64.5 |
|
Balance at the end of period | | $ | 508.4 |
| | $ | 476.6 |
| | $ | 439.4 |
|
The regulated electric utilities provide construction and other services to ATC and receive network transmission services from ATC. The related party transactions recorded by the regulated electric utilities during the years ended December 31 were as follows:
|
| | | | | | | | | | | | |
(Millions) | | 2013 | | 2012 | | 2011 |
Total charges to ATC for services and construction | | $ | 11.3 |
| | $ | 12.5 |
| | $ | 13.5 |
|
Total costs for network transmission service provided by ATC | | 104.9 |
| | 100.3 |
| | 102.7 |
|
INDU Solar Holdings, LLC
Integrys Solar, LLC, a subsidiary of Integrys Energy Services, owns 50% of INDU Solar Holdings, LLC. INDU Solar Holdings, LLC owns solar energy projects in California, Pennsylvania, New Jersey, Arizona, and Massachusetts that deliver electricity and related products to commercial, government, and utility customers under long-term power purchase agreements.
The following table shows changes to our investment in INDU Solar Holdings, LLC during the years ended December 31:
|
| | | | | | | | | | | | |
(Millions) | | 2013 | | 2012 | | 2011 |
Balance at the beginning of period | | $ | 27.5 |
| | $ | 28.4 |
| | $ | 0.1 |
|
Add: Earnings (loss) from equity method investment | | 1.3 |
| | 1.1 |
| | (0.7 | ) |
Add: Capital contributions | | — |
| | 7.0 |
| | 29.0 |
|
Less: Return of capital to partners | | 4.1 |
| | 9.0 |
| | — |
|
Balance at the end of period | | $ | 24.7 |
| | $ | 27.5 |
| | $ | 28.4 |
|
WRPC
WPS owns 50% of the stock of WRPC, which operates two hydroelectric plants and an oil-fired combustion turbine. Half of the energy output of the hydroelectric plants is sold to WPS, and the remainder is sold to Wisconsin Power and Light. The electric power from the combustion turbine is sold in equal parts to WPS and Wisconsin Power and Light.
The following table shows changes to our investment in WRPC during the years ended December 31:
|
| | | | | | | | | | | | |
(Millions) | | 2013 | | 2012 | | 2011 |
Balance at the beginning of period | | $ | 7.3 |
| | $ | 7.7 |
| | $ | 8.1 |
|
Add: Earnings from equity method investment | | 1.0 |
| | 0.8 |
| | 0.9 |
|
Less: Dividends received | | 1.3 |
| | 1.2 |
| | 1.3 |
|
Balance at the end of period | | $ | 7.0 |
| | $ | 7.3 |
| | $ | 7.7 |
|
WPS provides services to WRPC, purchases energy from WRPC, and receives net proceeds from sales of energy into the MISO market from WRPC. The related party transactions recorded by WPS during the years ended December 31 were as follows:
|
| | | | | | | | | | | | |
(Millions) | | 2013 | | 2012 | | 2011 |
Charges to WRPC for operations | | $ | 0.9 |
| | $ | 0.8 |
| | $ | 0.7 |
|
Purchases of energy from WRPC | | 3.7 |
| | 5.0 |
| | 4.9 |
|
Net proceeds from WRPC sales of energy to MISO | | — |
| | 2.9 |
| | 4.7 |
|
Financial Data
Combined financial data of our significant equity method investments, ATC, INDU Solar Holdings, LLC, and WRPC, are included in the tables below:
|
| | | | | | | | | | | | |
(Millions) | | 2013 | | 2012 | | 2011 |
Income statement data | | |
| | |
| | |
Revenues | | $ | 642.0 |
| | $ | 618.3 |
| | $ | 575.5 |
|
Operating expenses | | 306.2 |
| | 292.1 |
| | 269.6 |
|
Other expense | | 83.7 |
| | 85.1 |
| | 81.5 |
|
Net income | | $ | 252.1 |
| | $ | 241.1 |
| | $ | 224.4 |
|
| | | | | | |
Earnings from equity method investments | | $ | 91.4 |
| | $ | 87.2 |
| | $ | 79.4 |
|
|
| | | | | | | | |
(Millions) | | December 31, 2013 | | December 31, 2012 |
Balance sheet data | | |
| | |
|
Current assets | | $ | 90.2 |
| | $ | 81.1 |
|
Noncurrent assets | | 3,587.2 |
| | 3,347.4 |
|
Total assets | | $ | 3,677.4 |
| | $ | 3,428.5 |
|
| | | | |
Current liabilities | | $ | 383.6 |
| | $ | 253.0 |
|
Long-term debt | | 1,559.1 |
| | 1,559.5 |
|
Other noncurrent liabilities | | 134.4 |
| | 103.5 |
|
Shareholders’ equity | | 1,600.3 |
| | 1,512.5 |
|
Total liabilities and shareholders’ equity | | $ | 3,677.4 |
| | $ | 3,428.5 |
|
