DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 25, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | WISCONSIN PUBLIC SERVICE CORP | ||
Entity Central Index Key | 107833 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $0 | ||
Entity Common Stock, Shares Outstanding | 23,896,962 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Operating revenues | $1,682.30 | $1,579.30 | $1,499.20 |
Cost of fuel, natural gas, and purchased power | 773.6 | 722.5 | 702.4 |
Operating and maintenance expense | 489.9 | 462.5 | 429.1 |
Depreciation and amortization expense | 113.7 | 106.2 | 96.2 |
Taxes other than income taxes | 46.7 | 48.1 | 47.3 |
Operating income | 258.4 | 240 | 224.2 |
Miscellaneous income | 24.4 | 23.5 | 15.7 |
Interest expense | 57.4 | 43.7 | 42.5 |
Other expense | -33 | -20.2 | -26.8 |
Income before taxes | 225.4 | 219.8 | 197.4 |
Provision for income taxes | 84.7 | 81.9 | 62.6 |
Net income | 140.7 | 137.9 | 134.8 |
Preferred stock dividend requirements | -3.1 | -3.1 | -3.1 |
Net income attributed to common shareholder | $137.60 | $134.80 | $131.70 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $5.40 | $5.70 |
Accounts receivable and accrued unbilled revenues, net of reserves of $3.2 and $2.5, respectively | 201.7 | 209.8 |
Receivables from related parties | 1.3 | 5.2 |
Inventories | ||
Fuel and gas | 85 | 60 |
Materials and supplies, at average cost | 39.2 | 34.9 |
Regulatory assets | 25 | 46.2 |
Prepaid taxes | 65.7 | 63.6 |
Other current assets | 18.3 | 16.7 |
Current assets | 441.6 | 442.1 |
Property, plant, and equipment, net of accumulated depreciation of $1,542.5 and $1,483.1, respectively | 3,131 | 2,887.70 |
Regulatory assets | 433.5 | 342.5 |
Goodwill | 36.4 | 36.4 |
Pension and other postretirement benefit assets | 128.9 | 145.1 |
Other long-term assets | 107.3 | 107.5 |
Total assets | 4,278.70 | 3,961.30 |
Liabilities and Shareholders' Equity | ||
Short-term debt | 145.1 | 25.6 |
Current portion of long-term debt | 125 | 0 |
Current portion of long-term debt to parent | 2.5 | 0 |
Accounts payable | 161.6 | 131.8 |
Payables to related parties | 16.9 | 13.8 |
Regulatory liabilities | 21.2 | 38 |
Other current liabilities | 69.3 | 72 |
Current liabilities | 541.6 | 281.2 |
Long-term debt to parent | 2.9 | 6.3 |
Long-term debt | 1,049.50 | 1,174.50 |
Deferred income taxes | 722.1 | 619.5 |
Deferred investment tax credits | 7.8 | 8.1 |
Regulatory liabilities | 303.3 | 286.3 |
Environmental remediation liabilities | 86.3 | 64.4 |
Pension and other postretirement benefit obligations | 37.6 | 76.4 |
Payables to related parties | 5.4 | 6.1 |
Other long-term liabilities | 71.6 | 71.9 |
Long-term liabilities | 2,286.50 | 2,313.50 |
Commitments and contingencies | ||
Preferred stock – $100 par value; 1,000,000 shares authorized; 511,882 shares issued and outstanding | 51.2 | 51.2 |
Common stock – $4 par value; 32,000,000 shares authorized; 23,896,962 shares issued and outstanding | 95.6 | 95.6 |
Additional paid-in capital | 782 | 723.5 |
Retained earnings | 521.8 | 496.3 |
Total liabilities and shareholders’ equity | $4,278.70 | $3,961.30 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable and accrued unbilled revenues, reserves (in dollars) | $3.20 | $2.50 |
Property, plant, and equipment, accumulated depreciation (in dollars) | $1,542.50 | $1,483.10 |
Preferred stock, par value (in dollars per share) | $100 | |
Preferred stock, shares authorized | 1,000,000 | |
Preferred stock, shares issued | 511,882 | |
Preferred stock, shares outstanding | 511,882 | 511,882 |
Common stock, par value (in dollars per share) | $4 | |
Common stock, shares authorized | 32,000,000 | |
Common stock, shares issued | 23,896,962 | |
Common stock, shares outstanding | 23,896,962 |
CONSOLIDATED_STATEMENTS_OF_CAP
CONSOLIDATED STATEMENTS OF CAPITALIZATION (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Capitalization | ||
Common stock – $4 par value; 32,000,000 shares authorized; 23,896,962 shares outstanding | $95.60 | $95.60 |
Additional paid-in capital | 782 | 723.5 |
Retained earnings | 521.8 | 496.3 |
Total common stock equity | 1,399.40 | 1,315.40 |
Preferred stock, shares outstanding | 511,882 | 511,882 |
Preferred stock – $100 par value; 1,000,000 shares authorized; 511,882 shares issued and outstanding | 51.2 | 51.2 |
Total long-term debt to parent (including current portion) | 5.4 | 6.3 |
Current portion of long-term debt to parent | -2.5 | 0 |
Total long-term debt to parent | 2.9 | 6.3 |
Total First Mortgage Bonds and Senior Notes | 1,175.10 | 1,175.10 |
Unamortized discount on long-term debt | -0.6 | -0.6 |
Total | 1,174.50 | 1,174.50 |
Current portion of long-term debt | -125 | 0 |
Total long-term debt | 1,049.50 | 1,174.50 |
Total capitalization | 2,503 | 2,547.40 |
Long Term debt to parent, 8.76% Series, Year Due, 2015 | ||
Schedule of Capitalization | ||
Interest rate, (as a percent) | 8.76% | |
Total long-term debt to parent (including current portion) | 2 | 2.4 |
Long Term debt to parent, 7.35% Series, Year Due, 2016 | ||
Schedule of Capitalization | ||
Interest rate, (as a percent) | 7.35% | |
Total long-term debt to parent (including current portion) | 3.4 | 3.9 |
Long Term debt, 7.125% Series, Year Due, 2023 | ||
Schedule of Capitalization | ||
Interest rate, (as a percent) | 7.13% | |
First Mortgage Bonds | 0.1 | 0.1 |
Long Term debt, 6.375% Series, Year Due, 2015 | ||
Schedule of Capitalization | ||
Interest rate, (as a percent) | 6.38% | |
Senior Notes | 125 | 125 |
Long Term debt, 5.65% Series, Year Due, 2017 | ||
Schedule of Capitalization | ||
Interest rate, (as a percent) | 5.65% | |
Senior Notes | 125 | 125 |
Long Term debt, 6.08% Series, Year Due, 2028 | ||
Schedule of Capitalization | ||
Interest rate, (as a percent) | 6.08% | |
Senior Notes | 50 | 50 |
Long Term debt, 5.55% Series, Year Due, 2036 | ||
Schedule of Capitalization | ||
Interest rate, (as a percent) | 5.55% | |
Senior Notes | 125 | 125 |
Long Term Debt 3.671% Series, Year Due, 2042 | ||
Schedule of Capitalization | ||
Interest rate, (as a percent) | 3.67% | |
Senior Notes | 300 | 300 |
Long Term debt 4.752% Series, Year Due 2044 | ||
Schedule of Capitalization | ||
Interest rate, (as a percent) | 4.75% | |
Senior Notes | 450 | 450 |
5.00% preferred stock series | ||
Schedule of Capitalization | ||
Preferred stock, Dividend Rate, (as a percent) | 5.00% | |
Preferred stock, shares outstanding | 131,916 | 131,916 |
Preferred stock – $100 par value; 1,000,000 shares authorized; 511,882 shares issued and outstanding | 13.2 | 13.2 |
5.04% preferred stock series | ||
Schedule of Capitalization | ||
Preferred stock, Dividend Rate, (as a percent) | 5.04% | |
Preferred stock, shares outstanding | 29,983 | 29,983 |
Preferred stock – $100 par value; 1,000,000 shares authorized; 511,882 shares issued and outstanding | 3 | 3 |
5.08% preferred stock series | ||
Schedule of Capitalization | ||
Preferred stock, Dividend Rate, (as a percent) | 5.08% | |
Preferred stock, shares outstanding | 49,983 | 49,983 |
Preferred stock – $100 par value; 1,000,000 shares authorized; 511,882 shares issued and outstanding | 5 | 5 |
6.76% preferred stock series | ||
Schedule of Capitalization | ||
Preferred stock, Dividend Rate, (as a percent) | 6.76% | |
Preferred stock, shares outstanding | 150,000 | 150,000 |
Preferred stock – $100 par value; 1,000,000 shares authorized; 511,882 shares issued and outstanding | 15 | 15 |
6.88% preferred stock series | ||
Schedule of Capitalization | ||
Preferred stock, Dividend Rate, (as a percent) | 6.88% | |
Preferred stock, shares outstanding | 150,000 | 150,000 |
Preferred stock – $100 par value; 1,000,000 shares authorized; 511,882 shares issued and outstanding | $15 | $15 |
CONSOLIDATED_STATEMENTS_OF_CAP1
CONSOLIDATED STATEMENTS OF CAPITALIZATION (Parenthetical) (USD $) | Dec. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF CAPITALIZATION | |
Common stock, par value (in dollars per share) | $4 |
Common stock, shares authorized | 32,000,000 |
Common stock, shares outstanding | 23,896,962 |
Preferred stock, par value (in dollars per share) | $100 |
Preferred stock, shares authorized | 1,000,000 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER'S EQUITY (USD $) | Total | Total Common Shareholder's Equity | Common Stock | Additional Paid in Capital | Retained Earnings |
In Millions, unless otherwise specified | |||||
Balance at Dec. 31, 2011 | $1,102.10 | $95.60 | $561.90 | $444.60 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income attributed to common shareholder | 131.7 | 131.7 | 0 | 0 | 131.7 |
Equity contribution from parent | 40 | 40 | 0 | 40 | 0 |
Return of capital to parent | 50 | -50 | 0 | -50 | 0 |
Dividends to parent | -105.5 | 0 | 0 | -105.5 | |
Other | 3.2 | 0 | 3.5 | -0.3 | |
Balance at Dec. 31, 2012 | 1,121.50 | 95.6 | 555.4 | 470.5 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income attributed to common shareholder | 134.8 | 134.8 | 0 | 0 | 134.8 |
Equity contribution from parent | 200 | 200 | 0 | 200 | 0 |
Return of capital to parent | 35 | -35 | 0 | -35 | 0 |
Dividends to parent | -108.6 | 0 | 0 | -108.6 | |
Other | 2.7 | 0 | 3.1 | -0.4 | |
Balance at Dec. 31, 2013 | 1,315.40 | 1,315.40 | 95.6 | 723.5 | 496.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income attributed to common shareholder | 137.6 | 137.6 | 0 | 0 | 137.6 |
Equity contribution from parent | 55 | 55 | 0 | 55 | 0 |
Return of capital to parent | 0 | ||||
Dividends to parent | -111.8 | 0 | 0 | -111.8 | |
Other | 3.2 | 0 | 3.5 | -0.3 | |
Balance at Dec. 31, 2014 | $1,399.40 | $1,399.40 | $95.60 | $782 | $521.80 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net Income | $140.70 | $137.90 | $134.80 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization expense | 113.7 | 106.2 | 96.2 |
Recoveries and refunds of regulatory assets and liabilities | 6.1 | -13.2 | 15.1 |
Bad debt expense | 7.3 | 5.2 | 5.7 |
Pension and other postretirement (credit) expense | -6.2 | 22.2 | 18.9 |
Pension and other postretirement contributions | -49.5 | -43.5 | -122 |
Deferred income taxes and investment tax credit | 90.5 | 79.4 | 33.4 |
Repayment of related party payables | 0 | 0 | -22.6 |
Termination of tolling agreement with Fox Energy Company LLC | 0 | -50 | 0 |
Deferrals to regulatory assets and liabilities | -16.4 | 12.8 | -10.3 |
Other | -14.3 | -9.6 | 5.1 |
Changes in working capital | |||
Accounts receivable and accrued unbilled revenues | 5.6 | -24.8 | 2.9 |
Inventories | -29.1 | 18.9 | 11.9 |
Prepaid taxes | -2.1 | 21.1 | 27.9 |
Other current assets | -3.4 | -0.5 | -0.2 |
Accounts payable | 15.4 | -14.9 | 3 |
Other current liabilities | 5.2 | 25.9 | 23.5 |
Net cash provided by operating activities | 263.5 | 273.1 | 223.3 |
Investing Activities | |||
Capital expenditures | -329.1 | -241.6 | -179.5 |
Acquisition of Fox Energy Company LLC | 0 | -391.6 | 0 |
Grant received related to Crane Creek wind project | 0 | 69 | 0 |
Other | 8 | 7.6 | 7.3 |
Net cash used for investing activities | -321.1 | -556.6 | -172.2 |
Financing Activities | |||
Short-term debt, net | 119.5 | -69.8 | -78.3 |
Borrowing on term credit facility | 0 | 200 | 0 |
Repayment of term credit facility | 0 | -200 | 0 |
Repayment of long-term debt | 0 | -147 | -150 |
Repayment of long-term debt to parent | -0.9 | -0.9 | -0.7 |
Issuance of long-term debt | 0 | 450 | 300 |
Payments of dividend to parent | -111.8 | -108.6 | -105.5 |
Equity contribution from parent | 55 | 200 | 40 |
Return of capital to parent | 0 | -35 | -50 |
Preferred stock dividend requirements | -3.1 | -3.1 | -3.1 |
Other | -1.4 | -2.9 | -2.5 |
Net cash provided by (used for) financing activities | 57.3 | 282.7 | -50.1 |
Net change in cash and cash equivalents | -0.3 | -0.8 | 1 |
Cash and cash equivalents at beginning of year | 5.7 | 6.5 | 5.5 |
Cash and cash equivalents at end of year | 5.4 | 5.7 | 6.5 |
Supplemental Cash Flow Information | |||
Cash paid for interest | 56.8 | 43.9 | 40.2 |
Cash (received) paid for income taxes | ($6.20) | ($27.30) | $2.90 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | Summary of Significant Accounting Policies | ||||||||||||
(a) Nature of Operations—We are an electric and natural gas utility company, serving customers in northeastern Wisconsin and Michigan's Upper Peninsula. We are subject to the jurisdiction of, and regulation by, the PSCW and the MPSC, which have general supervisory and regulatory powers over virtually all phases of the public utility industry in Wisconsin and Michigan, respectively. We are also subject to the jurisdiction of the FERC, which regulates our natural gas pipelines and wholesale electric rates. | |||||||||||||
(b) Basis of Presentation—As used in these notes, the term “financial statements” refers to the consolidated financial statements. This includes the consolidated statements of income, consolidated balance sheets, consolidated statements of capitalization, consolidated statements of common shareholder's equity, and consolidated statements of cash flows, unless otherwise noted. | |||||||||||||
At December 31, 2014, we had one wholly owned subsidiary, WPS Leasing. The financial statements include our accounts and the accounts of our wholly owned subsidiary, after eliminating intercompany transactions and balances. These financial statements also reflect our proportionate interests in certain jointly owned utility facilities. The cost method of accounting is used for investments when we do not have significant influence over the operating and financial policies of the investee. Investments in businesses not controlled by us, but over which we have significant influence regarding the operating and financial policies of the investee, are accounted for using the equity method. | |||||||||||||
(c) Use of Estimates—We prepare our financial statements in conformity with GAAP. We make estimates and assumptions that affect assets, liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. | |||||||||||||
(d) Cash and Cash Equivalents—Short-term investments with an original maturity of three months or less are reported as cash equivalents. | |||||||||||||
(e) Revenues and Customer Receivables—Revenues related to the sale of energy are recognized when service is provided or energy is delivered to customers. We accrue estimated amounts of revenues for services provided or energy delivered but not yet billed to customers. Estimated unbilled revenues are calculated using a variety of judgments and assumptions related to customer class, contracted rates, weather, and customer use. At December 31, 2014, and 2013, our unbilled revenues were $72.3 million and $79.0 million, respectively. | |||||||||||||
We present revenues net of pass-through taxes on the income statements. | |||||||||||||
Below is a summary of the significant mechanisms we had in place in 2014 that allowed us to recover or refund changes in prudently incurred costs from rate case-approved amounts: | |||||||||||||
• | Fuel and purchased power costs were recovered from customers on a one-for-one basis by our wholesale electric operations and Michigan retail electric operations. | ||||||||||||
• | Our Wisconsin retail electric operations used a "fuel window" mechanism to recover fuel and purchased power costs. Under the fuel window rule, a deferral is required for under or over-collections of actual fuel and purchased power costs that exceed a 2% price variance from the costs included in the rates charged to customers. We monitor the deferral of these costs to ensure that it does not cause us to earn a greater return on common equity than authorized by the PSCW. | ||||||||||||
• | Our rates included a one-for-one recovery mechanism for natural gas commodity costs. | ||||||||||||
Revenues are also impacted by other accounting policies related to our participation in the MISO market. We sell and purchase power in the MISO market. If we were a net seller in a particular hour, the net amount was reported as revenue. If we were a net purchaser in a particular hour, the net amount was recorded as cost of fuel, natural gas, and purchased power on the income statements. | |||||||||||||
We provide regulated electric and natural gas service to customers in northeastern Wisconsin and Michigan. The geographic concentration of our customers did not contribute significantly to our overall exposure to credit risk. We periodically review customers' credit ratings, financial statements, and historical payment performance and require them to provide collateral or other security as needed. As a result, we did not have any significant concentrations of credit risk at December 31, 2014. In addition, there were no customers that accounted for more than 10% of our revenues for the year ended December 31, 2014. | |||||||||||||
(f) Inventories—Inventories consist of materials and supplies, emission allowances, natural gas in storage, and other fossil fuels, including coal. Average cost is used to value materials and supplies, emission allowances, fossil fuels, and natural gas in storage. | |||||||||||||
(g) Risk Management Activities—As part of our regular operations, we enter into contracts, including options, futures, forwards, and other contractual commitments, to manage changes in commodity prices. See Note 5, Risk Management Activities, for more information. Derivative instruments are entered into in accordance with the terms of the risk management policies approved by our Board of Directors and the PSCW or MPSC. | |||||||||||||
All derivatives are recognized on the balance sheets at their fair value unless they qualify for the normal purchases and sales exception, and are so designated. We continually assess our contracts designated as normal and will discontinue the treatment of these contracts as normal if the required criteria are no longer met. Because most of our energy-related derivatives qualify for regulatory deferral, management believes any gains or losses resulting from the eventual settlement of derivative instruments will be refunded to or collected from customers in rates. As such, any changes in the fair value of these derivatives recorded as either risk management assets or liabilities are offset with regulatory liabilities or assets, as appropriate. | |||||||||||||
We classify derivative assets and liabilities as current or long-term on the balance sheets based upon the maturities of the underlying contracts. We record unrealized gains and losses on derivative instruments that do not qualify for regulatory deferral as a component of our cost of fuel, natural gas, and purchased power or operating and maintenance expense, depending on the nature of the transaction. Cash flows from derivative activities are presented in the same category as the item being hedged within operating activities on the statements of cash flows. | |||||||||||||
Derivative accounting rules provide the option to present certain asset and liability derivative positions net on the balance sheets and to net the related cash collateral against these net derivative positions. We elected not to net these items. On the balance sheets, cash collateral provided to others is reflected in other current assets, and cash collateral received from others is reflected in other current liabilities. | |||||||||||||
(h) Emission Allowances—We account for emission allowances as inventory at average cost by vintage year. Charges to income result when allowances are used in operating our generation plants. These charges are included in the costs subject to the fuel window rules. Gains on sales of allowances are returned to ratepayers. | |||||||||||||
(i) Property, Plant, and Equipment—Utility plant is stated at cost, including any associated AFUDC and asset retirement costs. The costs of renewals and betterments of units of property (as distinguished from minor items of property) are capitalized as additions to the utility plant accounts. Maintenance and repair costs, as well as replacement and renewal costs associated with items not qualifying as units of property, are recorded as operating expenses. We record a regulatory liability for cost of removal accruals, which are included in rates. Actual removal costs are charged against the regulatory liability as incurred. Except for land, no gains or losses are recognized in connection with ordinary retirements of utility property units. Ordinary retirements, sales, and other disposals of units of property at the utilities are charged to accumulated depreciation at cost, less salvage value. When it becomes probable that an operating unit will be retired in the near future and substantially in advance of its expected useful life, the cost and corresponding accumulated depreciation of the asset is classified as plant to be retired, net within property, plant, and equipment. | |||||||||||||
We record straight-line depreciation expense over the estimated useful life of utility property, using depreciation rates approved by the applicable regulators. Annual utility composite depreciation rates are shown below: | |||||||||||||
Annual Utility Composite Depreciation Rates | 2014 | 2013 | 2012 | ||||||||||
Electric | 2.73 | % | 2.79 | % | 2.87 | % | |||||||
Natural gas | 2.17 | % | 2.19 | % | 2.21 | % | |||||||
We capitalize certain costs related to software developed or obtained for internal use and amortize those costs to operating expense over the estimated useful life of the related software, which ranges from 3 to 5 years. If software is retired prior to being fully amortized, the difference is recorded as a loss on the income statement. | |||||||||||||
We receive grants related to certain renewable generation projects under federal and state grant programs. Our policy is to reduce the depreciable basis of the qualifying project by the grant received. We then reflect the benefit of the grant in income over the life of the related renewable generation project through a reduction in depreciation expense. | |||||||||||||
See Note 6, Property, Plant, and Equipment, for more information. | |||||||||||||
(j) AFUDC—We capitalize the cost of funds used for construction using a calculation that includes both internal equity and external debt components, as required by regulatory accounting. The internal equity component is accounted for as other income. The external debt component is accounted for as a decrease to interest expense. | |||||||||||||
Approximately 50% of our retail jurisdictional construction work in progress expenditures are subject to the AFUDC calculation. For 2014, our average AFUDC retail rate was 8.08%, and our average AFUDC wholesale rate was 6.99%. | |||||||||||||
Our total AFUDC was as follows for the years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Allowance for equity funds used during construction | $ | 11 | $ | 9.9 | $ | 2.6 | |||||||
Allowance for borrowed funds used during construction | 4.6 | 3.8 | 0.9 | ||||||||||
(k) Regulatory Assets and Liabilities—Regulatory assets represent probable future revenue associated with certain costs or liabilities that have been deferred and are expected to be recovered through rates charged to customers. Regulatory liabilities represent amounts that are expected to be refunded to customers in future rates or amounts collected in rates for future costs. Recovery or refund of regulatory assets and liabilities is based on specific periods determined by the regulators or occurs over the normal operating period of the assets and liabilities to which they relate. If at any reporting date a previously recorded regulatory asset is no longer probable of recovery, the regulatory asset is reduced to the amount considered probable of recovery with the reduction charged to expense in the year the determination is made. See Note 8, Regulatory Assets and Liabilities, for more information. | |||||||||||||
(l) Goodwill—Goodwill is subject to an annual impairment test. Our natural gas utility reporting unit contains goodwill and performs its annual goodwill impairment test during the second quarter of each year. Interim impairment tests are performed when impairment indicators are present. The carrying amount of the reporting unit's goodwill is considered not recoverable if the carrying amount of the reporting unit exceeds the reporting unit's fair value. An impairment loss is recorded for the excess of the carrying amount of the goodwill over its implied fair value. | |||||||||||||
(m) Retirement of Debt—Any call premiums or unamortized expenses associated with refinancing utility debt obligations are amortized consistent with regulatory treatment of those items. Any gains or losses resulting from the retirement of utility debt that is not refinanced are amortized over the remaining life of the original debt. | |||||||||||||
(n) Asset Retirement Obligations—We recognize at fair value legal obligations associated with the retirement of tangible long-lived assets that result from the acquisition, construction or development, and/or normal operation of the assets. A liability is recorded for these obligations as long as the fair value can be reasonably estimated, even if the timing or method of settling the obligation is unknown. The asset retirement obligations are accreted using a credit-adjusted risk-free interest rate commensurate with the expected settlement dates of the asset retirement obligations; this rate is determined at the date the obligation is incurred. The associated retirement costs are capitalized as part of the related long-lived assets and are depreciated over the useful lives of the assets. Subsequent changes resulting from revisions to the timing or the amount of the original estimate of undiscounted cash flows are recognized as an increase or a decrease in the carrying amount of the liability and the associated retirement cost. See Note 13, Asset Retirement Obligations, for more information. | |||||||||||||
(o) Environmental Remediation Costs — We are subject to federal and state environmental laws and regulations that in the future may require us to pay for environmental remediation at sites where we have been, or may be, identified as a potentially responsible party (PRP). Loss contingencies may exist for the remediation of hazardous substances at various potential sites, including former manufactured gas plant sites. See Note 15, Commitments and Contingencies, for more information on our manufactured gas plant sites. | |||||||||||||
We record environmental remediation liabilities when site assessments indicate remediation is probable and we can reasonably estimate the loss or a range of possible losses. The estimate includes both our share of the liability and any additional amounts that will not be paid by other PRPs or the government. When possible, we estimate costs using site-specific information but also consider historical experience for costs incurred at similar sites. Remediation efforts for a particular site generally extend over a period of several years. During this period, the laws governing the remediation process may change, as well as site conditions, potentially affecting the cost of remediation. | |||||||||||||
We have received approval to defer certain environmental remediation costs, as well as estimated future costs, through a regulatory asset. The recovery of deferred costs is subject to the respective Commission's approval. | |||||||||||||
We review our estimated costs of remediation annually for our manufactured gas plant sites and adjust the liabilities and related regulatory assets, as appropriate, to reflect the new cost estimates. Any material changes in cost estimates are adjusted throughout the year. | |||||||||||||
(p) Income Taxes—We and our subsidiary are included in the consolidated United States income tax return filed by Integrys Energy Group. We and our subsidiary are parties to a federal and state tax allocation arrangement with Integrys Energy Group and its subsidiaries under which each entity determines its provision for income taxes on a stand-alone basis. We settle the intercompany liabilities at the time payments are made to the applicable taxing authority. See Note 25, Related Party Transactions, for more information regarding intercompany payables or receivables related to income taxes. | |||||||||||||
Deferred income taxes have been recorded to recognize the expected future tax consequences of events that have been included in the financial statements by using currently enacted tax rates for the differences between the income tax basis of assets and liabilities and the basis reported in the financial statements. We record valuation allowances for deferred income tax assets unless it is more likely than not that the benefit will be realized in the future. We defer certain adjustments made to income taxes that will impact future rates and record regulatory assets or liabilities related to these adjustments. | |||||||||||||
We use the deferral method of accounting for investment tax credits (ITCs). Under this method, we record the ITCs as deferred credits and amortize such credits as a reduction to the provision for income taxes over the life of the asset that generated the ITCs. ITCs that do not reduce income taxes payable for the current year are eligible for carryover and recognized as a deferred income tax asset. | |||||||||||||
We report interest and penalties accrued related to income taxes as a component of provision for income taxes in the income statements, as well as regulatory assets or regulatory liabilities in the balance sheets. | |||||||||||||
We record excess tax benefits from stock-based compensation awards when the actual tax benefit is realized. We follow the tax law ordering approach to determine when the tax benefit has been realized. Under this approach, the tax benefit is realized in the year it reduces taxable income. Current year stock-based compensation deductions are assumed to be used before any net operating loss carryforwards. | |||||||||||||
See Note 14, Income Taxes, for more information regarding our accounting for income taxes. | |||||||||||||
(q) Guarantees—We follow the guidance of the Guarantees Topic of the FASB ASC, which requires that the guarantor recognize, at the inception of the guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee. See Note 19, Guarantees, for more information. | |||||||||||||
(r) Employee Benefits—The costs of pension and other postretirement benefits are expensed over the periods during which employees render service. Our transition obligation related to other postretirement benefit plans was recognized over a 20-year period that began in 1993, and ended in 2012. In computing the expected return on plan assets, we use a market-related value of plan assets, which is a calculated value approach. Changes in realized and unrealized investment gains and losses are recognized over the subsequent five years for plans sponsored by us, while differences between actual investment returns and the expected return on plan assets are recognized over a five-year period for the Integrys Energy Group Retirement Plan, sponsored by IBS. The benefit costs associated with employee benefit plans are allocated among Integrys Energy Group's subsidiaries based on current employment status and actuarial calculations, as applicable. Our regulators allow recovery in rates for the net periodic benefit cost calculated under GAAP. | |||||||||||||
We recognize the funded status of defined benefit postretirement plans on the balance sheet, and recognize changes in the plans' funded status in the year in which the changes occur. We record changes in the funded status to regulatory asset or liability accounts, pursuant to the Regulated Operations Topic of the FASB ASC. | |||||||||||||
We account for our participation in benefit plans sponsored by IBS and other postretirement benefit plans we sponsor as multiple employer plans. Under affiliate agreements, we are responsible for our share of plan costs and obligations and are entitled to our share of plan assets. Accordingly, we account for our pro rata share of these plans as our own plan. | |||||||||||||
See Note 16, Employee Benefit Plans, for more information. | |||||||||||||
(s) Stock-Based Compensation—Our employees may be granted awards under Integrys Energy Group’s stock-based compensation plans. At December 31, 2014, stock options, performance stock rights, and restricted share units were outstanding under various plans. Compensation cost associated with these awards is allocated to us based on the percentages used for allocation of the award recipients’ labor costs. | |||||||||||||
Stock Options | |||||||||||||
All stock options granted to our employees are for the option to purchase shares of Integrys Energy Group common stock. Stock options have a term not longer than 10 years. The exercise price of each stock option is equal to the fair market value of the stock on the date the stock option is granted. | |||||||||||||
Effective October 24, 2014, Integrys Energy Group's Board of Directors accelerated the vesting of all unvested stock options held by active employees in order to mitigate the tax impacts of Section 280G of the Internal Revenue Code on us, Integrys Energy Group, and certain employees. All stock options awarded to active employees also became exercisable as of this date. For retirees, 25% of their stock options granted will continue to become exercisable each year on the anniversary of the grant date. | |||||||||||||
The fair value of stock option awards granted is estimated using a binomial lattice model. The expected term of option awards is derived from the output of the binomial lattice model and represents the period of time that options are expected to be outstanding. The risk-free interest rate is based on the United States Treasury yield curve. The expected dividend yield incorporates the current and historical dividend rate of Integrys Energy Group. The expected stock price volatility is estimated using its 10-year historical volatility. | |||||||||||||
Performance Stock Rights | |||||||||||||
Performance stock rights generally vest over a three-year performance period. For accounting purposes, awards granted to retirement-eligible employees vest over a shorter period; however, the distribution of these awards is not accelerated. Effective October 24, 2014, Integrys Energy Group's Board of Directors approved the acceleration of the distribution of certain performance stock rights held by active employees. For those performance stock rights with a performance period ending December 31, 2014, a portion of the estimated distribution was made in December 2014. This change was made to help mitigate the tax impacts of Section 280G of the Internal Revenue Code on us, Integrys Energy Group, and certain employees. | |||||||||||||
Performance stock rights are paid out in shares of Integrys Energy Group common stock, or eligible employees can elect to defer the value of their awards into the deferred compensation plan and choose among various investment options, some of which are ultimately paid out in Integrys Energy Group common stock and some of which are ultimately paid out in cash. Eligible employees can only elect to defer up to 80% of the value of their awards. The number of shares paid out is calculated by multiplying a performance percentage by the number of outstanding stock rights at the completion of the performance period. The performance percentage is based on the total shareholder return of Integrys Energy Group's common stock relative to the total shareholder return of a peer group of companies. The payout may range from 0% to 200% of target. | |||||||||||||
Performance stock rights are accounted for as either an equity award or a liability award, depending on their settlement features. Awards that can only be settled in shares of Integrys Energy Group common stock are accounted for as equity awards. Awards that an employee has elected to defer, or is still able to defer, into the deferred compensation plan are accounted for as liability awards and are recorded at fair value each reporting period. | |||||||||||||
Six months prior to the end of the performance period, employees can no longer change their election to defer the value of their performance stock rights into the deferred compensation plan. As a result, any awards not elected for deferral at this point in the performance period will be settled in Integrys Energy Group's common stock. This changes the classification of these awards from a liability award to an equity award. The change in classification is accounted for as an award modification. The fair value on the modification date is used to measure these awards for the remaining six months of the performance period. No incremental compensation expense is recorded as a result of this award modification. | |||||||||||||
The fair values of performance stock rights are estimated using a Monte Carlo valuation model. The risk-free interest rate is based on the United States Treasury yield curve. The expected dividend yield incorporates the current and historical dividend rate of Integrys Energy Group. The expected volatility is estimated using one to three years of historical data. | |||||||||||||
Restricted Share Units | |||||||||||||
Restricted share units generally have a four-year vesting period, with 25% of each award vesting on each anniversary of the grant date. For accounting purposes, awards granted to retirement-eligible employees vest over a shorter period; however, the release of shares to these employees is not accelerated. Restricted share unit recipients do not have voting rights, but they receive forfeitable Integrys Energy Group dividend equivalents in the form of additional restricted share units. | |||||||||||||
Restricted share units are accounted for as either an equity award or a liability award, depending on their settlement features. Awards that can only be settled in shares of Integrys Energy Group common stock and cannot be deferred into the deferred compensation plan are accounted for as equity awards. Eligible employees can only elect to defer up to 80% of their awards into the deferred compensation plan. Equity awards are measured based on the fair value on the grant date. Awards that an employee has elected to defer into the deferred compensation plan are accounted for as liability awards and are recorded at fair value each reporting period. | |||||||||||||
(t) Fair Value—A fair value measurement is required to reflect the assumptions market participants would use in pricing an asset or liability based on the best available information. | |||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We use a mid-market pricing convention (the mid-point price between bid and ask prices) as a practical measure for valuing certain derivative assets and liabilities. | |||||||||||||
Fair value accounting rules provide a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are defined as follows: | |||||||||||||
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | |||||||||||||
Level 2 - Pricing inputs are observable, either directly or indirectly, but are not quoted prices included within Level 1. Level 2 includes those financial instruments that are valued using external inputs within models or other valuation methods. | |||||||||||||
Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value. | |||||||||||||
Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||
Our risk management assets and liabilities include NYMEX futures and options, physical commodity contracts, and financial transmission rights (FTRs) used to manage transmission congestion costs in the MISO market. NYMEX contracts are valued using the NYMEX end-of-day settlement price, which is a Level 1 input. Level 2 contracts are valued based on quoted market prices received from counterparties and price index developers. The valuation for physical coal contracts is categorized in Level 3 as it is based on significant assumptions made to extrapolate prices from the last quoted period through the end of the transaction term. The valuation for FTRs is derived from historical data from MISO, which is also considered a Level 3 input. | |||||||||||||
We have established a risk oversight committee whose primary responsibility includes directly or indirectly ensuring that all valuation methods are applied in accordance with predefined policies. The development and maintenance of our forward price curves has been assigned to our risk management department, which is part of the corporate treasury function. This group is separate and distinct from the supply function. To validate the reasonableness of our fair value inputs, our risk management department compares changes in valuation and researches any significant differences in order to determine the underlying cause. Changes to the fair value inputs are made if necessary. | |||||||||||||
Derivatives are transferred between levels of the fair value hierarchy due to observable pricing becoming available as the remaining contract term becomes shorter. We recognize transfers at the value as of the end of the reporting period. | |||||||||||||
The fair values of long-term debt are estimated based on the quoted market price for the same or similar issues, or on the current rates offered to us for debt of the same remaining maturity. The fair values of preferred stock are estimated based on quoted market prices, when available, or by using a perpetual dividend discount model. The fair values of long-term debt instruments and preferred stock are categorized within Level 2 of the fair value hierarchy. Due to the short-term nature of cash and cash equivalents, accounts receivable, accounts payable, and outstanding commercial paper, the carrying amount for each such item approximates fair value. | |||||||||||||
We conduct a thorough review of fair value hierarchy classifications on a quarterly basis. | |||||||||||||
See Note 21, Fair Value, for more information. | |||||||||||||
(u) New Accounting Pronouncements— | |||||||||||||
Recently Issued Accounting Guidance Not Yet Effective | |||||||||||||
In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis." The guidance focuses on the consolidation evaluation for companies that are required to evaluate whether they should consolidate certain legal entities. This ASU eliminates the specialized guidance for limited partnerships and similar legal entities. It places more emphasis on risk of loss when determining a controlling financial interest and amends the guidance for assessing how relationships of related parties affect the consolidation analysis of variable interest entities. The guidance is effective for us for the reporting period ending March 31, 2016. We are currently evaluating the impact this guidance will have on our financial statements. | |||||||||||||
In January 2015, the FASB issued ASU 2015-01, "Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items." This guidance no longer requires or allows the disclosure of extraordinary items, net of tax, in the income statement after income from continuing operations. The guidance is effective for us for the reporting period ending March 31, 2016. We do not currently have any extraordinary items presented on the income statements. However, this guidance will eliminate the need for us to further assess whether unusual and infrequently occurring transactions qualify as an extraordinary item in the future. | |||||||||||||
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." This ASU supersedes the requirements in the Revenue Recognition Topic of the FASB ASC and most industry-specific guidance throughout the ASC. The guidance is based on the principle that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts. The guidance is effective for us for the reporting period ending March 31, 2017. The standard requires either retrospective application by restating each prior period presented in the financial statements, or modified retrospective application by recording the cumulative effect of prior reporting periods to beginning retained earnings in the year that the standard becomes effective. Management is currently evaluating the impact that the adoption of this standard will have on our financial statements. |
PROPOSED_MERGER_OF_PARENT_COMP
PROPOSED MERGER OF PARENT COMPANY WITH WISCONSIN ENERGY CORPORATION | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
PROPOSED MERGER OF PARENT COMPANY WITH WISCONSIN ENERGY CORPORATION | Proposed Merger of Parent Company with Wisconsin Energy Corporation | ||||
In June 2014, our parent company, Integrys Energy Group, entered into an Agreement and Plan of Merger with Wisconsin Energy Corporation (Wisconsin Energy). This transaction was approved unanimously by the Boards of Directors of both companies. It was also approved by the shareholders of both companies. On October 24, 2014, the Department of Justice closed its review of the transaction and the Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Act. The transaction is still subject to approvals from the FERC, Federal Communications Commission (FCC), PSCW, and other regulatory commissions, as well as other customary closing conditions. In the MPSC approval docket, we and our parent are parties to a contested settlement agreement with the MPSC staff and all but one of the parties, under which the settling parties agree that the MPSC should grant approval of the merger contingent on additional transactions, including the sale of the Presque Isle facility currently owned by Wisconsin Energy, as well as our and Wisconsin Energy's Michigan electric distribution assets, to UPPCO. The asset sales require additional approvals, including the MPSC, PSCW, FERC, FCC, and Committee on Foreign Investment in the United States, as well as the requirements of the Hart-Scott-Rodino Act. We expect the merger transaction to close in the second half of 2015. | |||||
Acquisition of Fox Energy Center | |||||
In March 2013, we acquired all of the equity interests in Fox Energy Company LLC for $391.6 million. Fox Energy Company LLC was dissolved immediately after the purchase. | |||||
The purchase included the Fox Energy Center, a 593-megawatt combined-cycle electric generating facility located in Wisconsin, along with associated contracts. Fox Energy Center is a dual-fuel facility, equipped to use fuel oil, but being run primarily on natural gas. This plant gives us a more balanced mix of owned electric generation, including coal, natural gas, hydroelectric, wind, and other renewable sources. In giving its approval for the purchase, the PSCW stated that the purchase price was reasonable and will benefit ratepayers. | |||||
The purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition, as follows: | |||||
(Millions) | |||||
Assets acquired (1) | |||||
Inventories - materials and supplies | $ | 3 | |||
Other current assets | 0.4 | ||||
Property, plant, and equipment | 374.4 | ||||
Other long-term assets (2) | 15.6 | ||||
Total assets acquired | $ | 393.4 | |||
Liabilities assumed | |||||
Accounts payable | $ | 1.8 | |||
Total liabilities assumed | $ | 1.8 | |||
(1) | Relates to the electric utility segment. | ||||
(2) | Intangible assets recorded for contractual services agreements. See Note 9, Goodwill and Other Intangible Assets, for more information. | ||||
Prior to the purchase, we supplied natural gas for the facility and purchased 500 megawatts of capacity and the associated energy output under a tolling arrangement. We paid $50.0 million for the early termination of the tolling arrangement. This amount was recorded as a regulatory asset, as we are authorized recovery by the PSCW. The amount is being amortized over a nine-year period that began on January 1, 2014. | |||||
We received regulatory approval to defer incremental costs incurred in 2013 associated with the purchase of the facility. These costs are included in our 2015 proposed retail electric rate increase. See Note 22, Regulatory Environment, for more information. Our rate order effective January 1, 2014, included the costs of owning and operating the Fox Energy Center. | |||||
Pro forma adjustments to our revenues and earnings prior to the date of acquisition would not be meaningful or material. Prior to the acquisition, the Fox Energy Center was a nonregulated plant and sold all of its output to third parties, with most of the output purchased by us. The plant is now part of our regulated fleet, used to serve our customers. |
ACQUISITION_OF_FOX_ENERGY_CENT
ACQUISITION OF FOX ENERGY CENTER | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
ACQUISITION OF FOX ENERGY CENTER | Proposed Merger of Parent Company with Wisconsin Energy Corporation | ||||
In June 2014, our parent company, Integrys Energy Group, entered into an Agreement and Plan of Merger with Wisconsin Energy Corporation (Wisconsin Energy). This transaction was approved unanimously by the Boards of Directors of both companies. It was also approved by the shareholders of both companies. On October 24, 2014, the Department of Justice closed its review of the transaction and the Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Act. The transaction is still subject to approvals from the FERC, Federal Communications Commission (FCC), PSCW, and other regulatory commissions, as well as other customary closing conditions. In the MPSC approval docket, we and our parent are parties to a contested settlement agreement with the MPSC staff and all but one of the parties, under which the settling parties agree that the MPSC should grant approval of the merger contingent on additional transactions, including the sale of the Presque Isle facility currently owned by Wisconsin Energy, as well as our and Wisconsin Energy's Michigan electric distribution assets, to UPPCO. The asset sales require additional approvals, including the MPSC, PSCW, FERC, FCC, and Committee on Foreign Investment in the United States, as well as the requirements of the Hart-Scott-Rodino Act. We expect the merger transaction to close in the second half of 2015. | |||||
Acquisition of Fox Energy Center | |||||
In March 2013, we acquired all of the equity interests in Fox Energy Company LLC for $391.6 million. Fox Energy Company LLC was dissolved immediately after the purchase. | |||||
The purchase included the Fox Energy Center, a 593-megawatt combined-cycle electric generating facility located in Wisconsin, along with associated contracts. Fox Energy Center is a dual-fuel facility, equipped to use fuel oil, but being run primarily on natural gas. This plant gives us a more balanced mix of owned electric generation, including coal, natural gas, hydroelectric, wind, and other renewable sources. In giving its approval for the purchase, the PSCW stated that the purchase price was reasonable and will benefit ratepayers. | |||||
The purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition, as follows: | |||||
(Millions) | |||||
Assets acquired (1) | |||||
Inventories - materials and supplies | $ | 3 | |||
Other current assets | 0.4 | ||||
Property, plant, and equipment | 374.4 | ||||
Other long-term assets (2) | 15.6 | ||||
Total assets acquired | $ | 393.4 | |||
Liabilities assumed | |||||
Accounts payable | $ | 1.8 | |||
Total liabilities assumed | $ | 1.8 | |||
(1) | Relates to the electric utility segment. | ||||
(2) | Intangible assets recorded for contractual services agreements. See Note 9, Goodwill and Other Intangible Assets, for more information. | ||||
Prior to the purchase, we supplied natural gas for the facility and purchased 500 megawatts of capacity and the associated energy output under a tolling arrangement. We paid $50.0 million for the early termination of the tolling arrangement. This amount was recorded as a regulatory asset, as we are authorized recovery by the PSCW. The amount is being amortized over a nine-year period that began on January 1, 2014. | |||||
We received regulatory approval to defer incremental costs incurred in 2013 associated with the purchase of the facility. These costs are included in our 2015 proposed retail electric rate increase. See Note 22, Regulatory Environment, for more information. Our rate order effective January 1, 2014, included the costs of owning and operating the Fox Energy Center. | |||||
Pro forma adjustments to our revenues and earnings prior to the date of acquisition would not be meaningful or material. Prior to the acquisition, the Fox Energy Center was a nonregulated plant and sold all of its output to third parties, with most of the output purchased by us. The plant is now part of our regulated fleet, used to serve our customers. |
CASH_AND_CASH_EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2014 | |
Supplemental Cash Flow Information [Abstract] | |
CASH AND CASH EQUIVALENTS | Cash and Cash Equivalents |
Construction costs funded through accounts payable totaled $54.0 million, $37.3 million, and $24.8 million in 2014, 2013, and 2012, respectively. These costs were treated as noncash investing activities. |
RISK_MANAGEMENT_ACTIVITIES
RISK MANAGEMENT ACTIVITIES | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
RISK MANAGEMENT ACTIVITIES | Risk Management Activities | |||||||||||||||
We use physical and financial derivative contracts to manage commodity costs. None of these derivatives are designated as hedges for accounting purposes. The electric and natural gas utility segments use financial derivative contracts to manage the risks associated with the market price volatility of natural gas supply costs. The electric utility segment also uses financial derivative contracts to reduce price risk related to coal transportation costs and financial transmission rights (FTRs) to manage electric transmission congestion costs. | ||||||||||||||||
The tables below show our assets and liabilities from risk management activities: | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
(Millions) | Balance Sheet Presentation | Assets | Liabilities | |||||||||||||
Natural gas contracts | Other Current | $ | 0.1 | $ | 2.1 | |||||||||||
Natural gas contracts | Other Long-term | — | 0.1 | |||||||||||||
FTRs | Other Current | 2.2 | 0.3 | |||||||||||||
Petroleum product contracts | Other Current | — | 1.1 | |||||||||||||
Coal contracts | Other Current | — | 2.4 | |||||||||||||
Coal contracts | Other Long-term | — | 1 | |||||||||||||
Other Current | 2.3 | 5.9 | ||||||||||||||
Other Long-term | — | 1.1 | ||||||||||||||
Total | $ | 2.3 | $ | 7 | ||||||||||||
December 31, 2013 | ||||||||||||||||
(Millions) | Balance Sheet Presentation | Assets | Liabilities | |||||||||||||
Natural gas contracts | Other Current | $ | 0.6 | $ | 0.1 | |||||||||||
FTRs | Other Current | 1.5 | 0.3 | |||||||||||||
Petroleum product contracts | Other Current | 0.1 | — | |||||||||||||
Coal contracts | Other Current | — | 1.9 | |||||||||||||
Coal contracts | Other Long-term | 0.2 | 0.8 | |||||||||||||
Other Current | 2.2 | 2.3 | ||||||||||||||
Other Long-term | 0.2 | 0.8 | ||||||||||||||
Total | $ | 2.4 | $ | 3.1 | ||||||||||||
The following tables show the potential effect on our financial position of netting arrangements for recognized derivative assets and liabilities: | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | |||||||||||||
Derivative assets subject to master netting or similar arrangements | $ | 2.3 | $ | 0.4 | $ | 1.9 | ||||||||||
Derivative assets not subject to master netting or similar arrangements | — | — | ||||||||||||||
Total risk management assets | $ | 2.3 | $ | 1.9 | ||||||||||||
Derivative liabilities subject to master netting or similar arrangements | $ | 3.6 | $ | 3.6 | $ | — | ||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 3.4 | 3.4 | ||||||||||||||
Total risk management liabilities | $ | 7 | $ | 3.4 | ||||||||||||
31-Dec-13 | ||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | |||||||||||||
Derivative assets subject to master netting or similar arrangements | $ | 2.2 | $ | 0.6 | $ | 1.6 | ||||||||||
Derivative assets not subject to master netting or similar arrangements | 0.2 | 0.2 | ||||||||||||||
Total risk management assets | $ | 2.4 | $ | 1.8 | ||||||||||||
Derivative liabilities subject to master netting or similar arrangements | $ | 0.4 | $ | 0.4 | $ | — | ||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 2.7 | 2.7 | ||||||||||||||
Total risk management liabilities | $ | 3.1 | $ | 2.7 | ||||||||||||
Our master netting and similar arrangements have conditional rights of setoff that can be enforced under a variety of situations, including counterparty default or credit rating downgrade below investment grade. We have trade receivables and trade payables, subject to master netting or similar arrangements, that are not included in the above table. These amounts may offset (or conditionally offset) the net amounts presented in the above table. | ||||||||||||||||
Financial collateral received or provided is restricted to the extent that it is required per the terms of the related agreements. The following table shows our cash collateral positions: | ||||||||||||||||
(Millions) | 31-Dec-14 | 31-Dec-13 | ||||||||||||||
Cash collateral provided to others related to contracts under master netting or similar arrangements | $ | 6.6 | $ | 3.1 | ||||||||||||
Cash collateral received from others related to contracts under master netting or similar arrangements | — | 0.2 | ||||||||||||||
The following table shows the unrealized gains (losses) recorded related to derivative contracts: | ||||||||||||||||
(Millions) | Financial Statement Presentation | 2014 | 2013 | 2012 | ||||||||||||
Natural gas | Balance Sheet — Regulatory assets (current) | $ | (2.3 | ) | $ | 0.7 | $ | 2.2 | ||||||||
Natural gas | Balance Sheet — Regulatory liabilities (current) | (0.3 | ) | 0.3 | 0.1 | |||||||||||
Natural gas | Income Statement — Cost of fuel, natural gas, and purchased power | — | — | 0.2 | ||||||||||||
FTRs | Balance Sheet — Regulatory assets (current) | — | 0.2 | (0.1 | ) | |||||||||||
FTRs | Balance Sheet — Regulatory liabilities (current) | 0.4 | (0.3 | ) | — | |||||||||||
Petroleum | Balance Sheet — Regulatory assets (current) | (1.1 | ) | — | 0.1 | |||||||||||
Petroleum | Balance Sheet — Regulatory liabilities (current) | (0.1 | ) | 0.1 | — | |||||||||||
Coal | Balance Sheet — Regulatory assets (current) | (1.3 | ) | (0.9 | ) | (2.2 | ) | |||||||||
Coal | Balance Sheet — Regulatory assets (long-term) | (0.2 | ) | 3.5 | 0.1 | |||||||||||
Coal | Balance Sheet — Regulatory liabilities (current) | — | (0.2 | ) | 0.3 | |||||||||||
Coal | Balance Sheet — Regulatory liabilities (long-term) | (0.1 | ) | (2.0 | ) | 2.2 | ||||||||||
We had the following notional volumes of outstanding derivative contracts: | ||||||||||||||||
(Millions) | 31-Dec-14 | 31-Dec-13 | ||||||||||||||
Commodity | Purchases | Other Transactions | Purchases | Sales | Other Transactions | |||||||||||
Natural gas (therms) | 1,025.40 | N/A | 2,242.50 | 7 | N/A | |||||||||||
FTRs (kilowatt-hours) | N/A | 4,287.70 | N/A | N/A | 3,427.00 | |||||||||||
Petroleum products (barrels) | — | N/A | 0.1 | — | N/A | |||||||||||
Coal contract (tons) | 3 | N/A | 4.8 | — | N/A | |||||||||||
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
PROPERTY, PLANT, AND EQUIPMENT | Property, Plant, and Equipment | ||||||||
Property, plant, and equipment consisted of the following utility and nonutility assets at December 31: | |||||||||
(Millions) | 2014 | 2013 | |||||||
Electric utility | $ | 3,587.40 | $ | 3,289.20 | |||||
Natural gas utility | 773.1 | 729.9 | |||||||
Total utility plant | 4,360.50 | 4,019.10 | |||||||
Less: Accumulated depreciation | 1,495.90 | 1,436.80 | |||||||
Net | 2,864.60 | 2,582.30 | |||||||
Construction work in progress | 248.7 | 285.2 | |||||||
Plant to be retired, net * | 12.5 | 14.4 | |||||||
Net utility plant | 3,125.80 | 2,881.90 | |||||||
Nonutility plant | 15.2 | 15.2 | |||||||
Less: Accumulated depreciation | 10 | 9.4 | |||||||
Net nonutility plant | 5.2 | 5.8 | |||||||
Total property, plant, and equipment | $ | 3,131.00 | $ | 2,887.70 | |||||
* | In connection with the Consent Decree with the EPA, we announced that the Weston 1, Pulliam 5, and Pulliam 6 generating units will be retired early. These units are currently included in rate base and we continue to depreciate them on a straight-line basis using the composite depreciation rates approved by the PSCW. The amount presented above is net of accumulated depreciation. See Note 15, Commitments and Contingencies, for more information regarding the Consent Decree. |
JOINTLY_OWNED_UTILITY_FACILITI
JOINTLY OWNED UTILITY FACILITIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Jointly Owned Utility Plant, Net Ownership Amount [Abstract] | |||||||||||||
JOINTLY OWNED UTILITY FACILITIES | Jointly Owned Utility Facilities | ||||||||||||
We hold a joint ownership interest in certain electric generating facilities. We are entitled to our share of generating capability and output of each facility equal to our respective ownership interest. We also pay our ownership share of additional construction costs, fuel inventory purchases, and operating expenses, unless specific agreements have been executed to limit our maximum exposure to additional costs. We record our proportionate share of significant jointly owned electric generating facilities as property, plant, and equipment on the balance sheets. The amounts were as follows at December 31, 2014: | |||||||||||||
(Millions, except for percentages and megawatts) | Weston 4 | Columbia Energy Center | Edgewater Unit 4 | ||||||||||
Units 1 and 2 | |||||||||||||
Ownership | 70 | % | 31.8 | % | 31.8 | % | |||||||
Our share of rated capacity (megawatts) | 374.5 | 335.2 | 105 | ||||||||||
In-service date | 2008 | 1975 and 1978 | 1969 | ||||||||||
Utility plant | $ | 581.9 | $ | 390.7 | $ | 42.9 | |||||||
Accumulated depreciation | $ | (132.6 | ) | $ | (116.2 | ) | $ | (29.6 | ) | ||||
Construction work in progress | $ | 2.7 | $ | 10.1 | $ | 0.7 | |||||||
Our proportionate share of direct expenses for the joint operation of these plants is recorded in operating expenses in the income statements. We have supplied our own financing for all jointly owned projects. |
REGULATORY_ASSETS_AND_LIABILIT
REGULATORY ASSETS AND LIABILITIES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||||
REGULATORY ASSETS AND LIABILITIES | Regulatory Assets and Liabilities | ||||||||||
The following regulatory assets were reflected on our balance sheets as of December 31: | |||||||||||
(Millions) | 2014 | 2013 | See Note | ||||||||
Regulatory assets (1) | |||||||||||
Unrecognized pension and other postretirement benefit costs (3) | $ | 185.6 | $ | 130.6 | 16 | ||||||
Environmental remediation costs (net of insurance recoveries) (2) (4) | 103.8 | 80.1 | 15 | ||||||||
Termination of a tolling agreement with Fox Energy Company LLC | 44.6 | 50 | 3 | ||||||||
Income tax related items | 32.7 | 26.9 | 14 | ||||||||
Crane Creek production tax credits (5) | 32.2 | 33.6 | |||||||||
De Pere Energy Center (6) | 21.4 | 23.8 | |||||||||
Energy costs recoverable through rate adjustments (7) | 12.6 | — | |||||||||
Asset retirement obligations (2) | 5.6 | 6 | 13 | ||||||||
Derivatives (2) | 8 | 3.3 | 1(g) | ||||||||
Potential new electric generator at Fox Energy Center (8) | 3.7 | — | |||||||||
Pension and other postretirement costs recoverable through rate adjustments (2) (9) | — | 9.4 | 22 | ||||||||
Decoupling | — | 7.9 | 22 | ||||||||
Weston 3 lightning strike (2) (10) | — | 3.6 | |||||||||
Other | 8.3 | 13.5 | |||||||||
Total regulatory assets | $ | 458.5 | $ | 388.7 | |||||||
Balance Sheet Presentation | |||||||||||
Current assets | $ | 25 | $ | 46.2 | |||||||
Long-term assets | 433.5 | 342.5 | |||||||||
Total regulatory assets | $ | 458.5 | $ | 388.7 | |||||||
(1) Based on prior and current rate treatment, we believe it is probable that we will continue to recover from customers the regulatory assets described above. | |||||||||||
(2) | Regulatory assets not earning a return. | ||||||||||
(3) | Represents the unrecognized future pension and other postretirement costs resulting from actuarial gains and losses on defined benefit and other postretirement plans. We are authorized recovery of this regulatory asset over the average future remaining service life of each plan. | ||||||||||
(4) | As of December 31, 2014, we had not yet made cash expenditures for $86.3 million of these environmental remediation costs. The recovery of these costs depends on the timing of the actual expenditures. | ||||||||||
(5) | In 2012, we elected to claim and subsequently received a Section 1603 Grant for the Crane Creek wind project in lieu of the production tax credit. As a result, we reversed previously recorded production tax credits. We also reduced the depreciable basis of the qualifying facility by the amount of the grant proceeds, which will result in a reduction of depreciation and amortization expense over a 12-year period. We recorded a regulatory asset for the deferral of previously recorded production tax credits and are authorized recovery of this net regulatory asset through 2039. | ||||||||||
(6) | Prior to purchasing the De Pere Energy Center in 2002, we had a long-term power purchase contract with them that was accounted for as a capital lease. As a result of the purchase, the capital lease obligation was reversed, and the difference between the capital lease asset and the purchase price was recorded as a regulatory asset. We are authorized recovery of this regulatory asset through 2023. | ||||||||||
(7) | Represents the under-collection of electric energy costs that will be recovered from customers in the future. | ||||||||||
-8 | Represents precertification costs for the proposed building of a new 400-MW natural gas-fired, combined-cycle generating unit to be located at our Fox Energy Center site. The building of this unit is currently in the approval process with the PSCW. | ||||||||||
(9) | Represents the under-collection of pension and other postretirement costs that will be recovered from customers in the future. | ||||||||||
(10) | In 2007, a lightning strike caused significant damage to the Weston 3 generating facility. The PSCW approved the deferral of the incremental fuel and purchased power expenses, as well as the nonfuel operating and maintenance expenses incurred as a result of the outage that were not covered by insurance. We were authorized recovery of this regulatory asset through 2014. | ||||||||||
The following regulatory liabilities were reflected on our balance sheets as of December 31: | |||||||||||
(Millions) | 2014 | 2013 | See Note | ||||||||
Regulatory liabilities | |||||||||||
Removal costs (1) | $ | 243.9 | $ | 238 | |||||||
Unrecognized pension and other postretirement benefit costs (2) | 42.4 | 18.5 | 16 | ||||||||
Decoupling | 12.3 | 24.3 | 22 | ||||||||
Crane Creek depreciation deferral (3) | 8.7 | 9 | |||||||||
Energy costs refundable through rate adjustments (4) | 6 | 21.9 | |||||||||
Fox Energy Center (5) | 4.6 | 5.6 | 3 | ||||||||
Energy efficiency programs | 3.7 | 4.1 | |||||||||
Other | 2.9 | 2.9 | |||||||||
Total regulatory liabilities | $ | 324.5 | $ | 324.3 | |||||||
Balance Sheet Presentation | |||||||||||
Current liabilities | $ | 21.2 | $ | 38 | |||||||
Long-term liabilities | 303.3 | 286.3 | |||||||||
Total regulatory liabilities | $ | 324.5 | $ | 324.3 | |||||||
(1) | Represents amounts collected from customers to cover the cost of future removal of property, plant, and equipment. | ||||||||||
(2) | Represents the unrecognized future other postretirement benefit costs resulting from actuarial gains on other postretirement benefit plans. We will amortize this regulatory liability into net periodic benefit cost over the average remaining service life of each plan. | ||||||||||
(3) | Represents the book depreciation taken on the Crane Creek wind project prior to our election to claim a Section 1603 Grant for the project in lieu of the production tax credit. See more information in the regulatory assets section above. | ||||||||||
(4) | Represents the over-collection of energy costs that will be refunded to customers in the future. | ||||||||||
(5) | Represents the deferral of incremental costs associated with owning and operating the Fox Energy Center, which was purchased in March 2013. In accordance with GAAP, the deferral does not include an allowance for return on equity, which has created the net regulatory liability. This allowance was $22.8 million and $22.1 million, at December 31, 2014, and 2013, respectively. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | Goodwill and Other Intangible Assets | ||||||||||||||||||||||||
We had no changes to the carrying amount of goodwill during the years ended December 31, 2014, and 2013. In the second quarter of 2014, we completed our annual goodwill impairment test, and no impairment resulted from this test. | |||||||||||||||||||||||||
Our intangible assets listed below consist of contractual service agreements that provide for major maintenance and protection against unforeseen maintenance costs related to the combustion turbine generators at the Fox Energy Center. These contractual service agreements are included in other long-term assets on the balance sheets. | |||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||||||||
(Millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Amortized intangible assets | |||||||||||||||||||||||||
Contractual service agreements | $ | 15.6 | $ | (4.3 | ) | $ | 11.3 | $ | 15.6 | $ | (1.8 | ) | $ | 13.8 | |||||||||||
In October 2014, we received approval from the PSCW to upgrade the combustion turbine generators at the Fox Energy Center earlier than planned. As a result of this approval, we shortened the amortization period of one of our service agreements. The remaining weighted-average amortization period for these intangible assets at December 31, 2014, was approximately four years. Since we have approval from the PSCW to recover the value of our service agreements from customers over seven years, the increase in amortization due to the shorter amortization period is recorded to a regulatory asset. This regulatory asset will be amortized to reflect the seven-year recovery period. | |||||||||||||||||||||||||
The table below shows the amortization recorded during the years ended December 31: | |||||||||||||||||||||||||
(Millions) | 2014 | 2013 | |||||||||||||||||||||||
Amortization recorded in depreciation and amortization expense | $ | 2.2 | $ | 1.8 | |||||||||||||||||||||
Amortization recorded in regulatory assets | 0.3 | — | |||||||||||||||||||||||
Amortization for the next five years is estimated to be: | |||||||||||||||||||||||||
For the Year Ending December 31 | |||||||||||||||||||||||||
(Millions) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
Amortization to be recorded in depreciation and amortization expense | $ | 2.2 | $ | 2.2 | $ | 1.7 | $ | 1.2 | $ | 1.2 | |||||||||||||||
Amortization to be recorded in regulatory assets | 1 | 1 | 0.5 | — | — | ||||||||||||||||||||
LEASES
LEASES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
LEASES | Leases | ||||
We lease various property, plant, and equipment. Terms of the operating leases vary, but generally require us to pay property taxes, insurance premiums, and maintenance costs associated with the leased property. Many of our leases contain one of the following options upon the end of the lease term: (a) purchase the property at the current fair market value or (b) exercise a renewal option, as set forth in the lease agreement. Rental expense attributable to operating leases was $1.6 million, $2.3 million, and $2.4 million in 2014, 2013, and 2012, respectively. Future minimum rental obligations under noncancelable operating leases are payable as follows: | |||||
Year Ending December 31 | |||||
(Millions) | Payments | ||||
2015 | $ | 0.5 | |||
2016 | 0.8 | ||||
2017 | 0.8 | ||||
2018 | 0.6 | ||||
2019 | 0.4 | ||||
Later years | 12.7 | ||||
Total | $ | 15.8 | |||
SHORTTERM_DEBT_AND_LINES_OF_CR
SHORT-TERM DEBT AND LINES OF CREDIT | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Short-term Debt [Abstract] | |||||||||||||
SHORT-TERM DEBT AND LINES OF CREDIT | Short-Term Debt and Lines of Credit | ||||||||||||
Our outstanding short-term borrowings were as follows: | |||||||||||||
(Millions, except percentages) | 2014 | 2013 | 2012 | ||||||||||
Commercial paper | |||||||||||||
Amount outstanding at December 31 (1) | $ | 145.1 | $ | 25.6 | $ | 95.4 | |||||||
Average interest rate on amounts outstanding at December 31 | 0.32% | 0.14 | % | 0.24 | % | ||||||||
Average amount outstanding during the year (2) | $ | 43.3 | $ | 80.8 | $ | 150.2 | |||||||
Short-term notes payable (3) | |||||||||||||
Average amount outstanding during the year (2) | $ | — | $ | 130.4 | $ | — | |||||||
(1) | Maturity dates ranged from January 5, 2015, through January 16, 2015. | ||||||||||||
(2) | Based on daily outstanding balances during the year. | ||||||||||||
(3) | Short-term notes payable related to a $200.0 million loan used for the purchase of Fox Energy Company LLC in March 2013. This loan was repaid in November 2013, and therefore no balance was outstanding at December 31, 2014, 2013, and 2012. See Note 3, Acquisition of Fox Energy Center, for more information regarding this purchase. | ||||||||||||
We manage our liquidity by maintaining adequate external financing commitments. The information in the table below relates to our revolving credit facilities used to support our commercial paper borrowing program, including remaining available capacity under these facilities as of December 31: | |||||||||||||
(Millions) | Maturity | 2014 | 2013 | ||||||||||
Revolving credit facility (1) | 5/17/14 | $ | — | $ | 135 | ||||||||
Revolving credit facility (2) | 5/7/15 | 135 | — | ||||||||||
Revolving credit facility | 6/13/17 | 115 | 115 | ||||||||||
Total short-term credit capacity | $ | 250 | $ | 250 | |||||||||
Less: commercial paper outstanding | 145.1 | 25.6 | |||||||||||
Available capacity under existing agreements | $ | 104.9 | $ | 224.4 | |||||||||
(1) | This credit facility was terminated and replaced with a new credit facility in May 2014. | ||||||||||||
(2) | We requested approval from the PSCW to extend this facility through May 8, 2019. | ||||||||||||
Our revolving credit agreement contains financial and other covenants, including but not limited to, a requirement to maintain a debt to total capitalization ratio not to exceed 65%, excluding non-recourse debt. Failure to comply with these covenants could result in an event of default, which could result in the acceleration of outstanding debt obligations. |
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Debt Disclosure [Abstract] | |||||
LONG-TERM DEBT | Long-Term Debt | ||||
See our statements of capitalization for details on our long-term debt. | |||||
In December 2015, our 6.375% Senior Notes will mature. As a result, the $125.0 million balance of these notes was included in the current portion of long-term debt on our balance sheet at December 31, 2014. | |||||
Our First Mortgage Bonds and Senior Notes are subject to the terms and conditions of our First Mortgage Indenture. Under the terms of the Indenture, substantially all our property is pledged as collateral for these outstanding debt securities. All of these debt securities require semi-annual payments of interest. Our Senior Notes become noncollateralized if we retire all of our outstanding First Mortgage Bonds and no new mortgage indenture is put in place. | |||||
Our long-term debt obligations contain covenants related to payment of principal and interest when due and various financial reporting obligations. Failure to comply with these covenants could result in an event of default, which could result in the acceleration of outstanding debt obligations. | |||||
A schedule of all principal debt payment amounts related to bond maturities, excluding those associated with long-term debt to parent, is as follows: | |||||
(Millions) | Payments | ||||
2015 | $ | 125 | |||
2016 | — | ||||
2017 | 125 | ||||
2018 | — | ||||
2019 | — | ||||
Later years | 925.1 | ||||
Total | $ | 1,175.10 | |||
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||
ASSET RETIREMENT OBLIGATIONS | Asset Retirement Obligations | |||||
We have asset retirement obligations primarily related to asbestos abatement at certain generation facilities, office buildings, and service centers; dismantling wind generation projects; disposal of PCB-contaminated transformers; and closure of fly-ash landfills at certain generation facilities. We establish regulatory assets and liabilities to record the differences between ongoing expense recognition under the asset retirement obligation accounting rules and the ratemaking practices for retirement costs authorized by the applicable regulators. All asset retirement obligations are recorded as other long-term liabilities on our balance sheets. | ||||||
The following table shows changes to our asset retirement obligations through December 31, 2014: | ||||||
(Millions) | ||||||
Asset retirement obligations at December 31, 2011 | $ | 18.6 | ||||
Accretion | 1 | |||||
Revisions to estimated cash flows | (2.5 | ) | (1) | |||
Settlements | (0.4 | ) | ||||
Asset retirement obligations at December 31, 2012 | 16.7 | |||||
Accretion | 0.9 | |||||
Revisions to estimated cash flows | 0.5 | |||||
Settlements | (0.1 | ) | ||||
Asset retirement obligations at December 31, 2013 | 18 | |||||
Accretion | 1 | |||||
Revisions to estimated cash flows | 1.5 | (2) | ||||
Settlements | (0.2 | ) | ||||
Asset retirement obligations at December 31, 2014 | $ | 20.3 | ||||
(1) | Revisions were made to estimated cash flows related to asset retirement obligations for the PCB-contaminated transformers primarily due to changes in estimated removal costs, estimated settlement date, and transformer quantities. | |||||
(2) | Revisions were made to estimated cash flows related to asset retirement obligations for the asbestos at electric generation facilities primarily due to changes in estimated settlement dates. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||
INCOME TAXES | Income Taxes | |||||||||||||||||||||
Deferred Income Tax Assets and Liabilities | ||||||||||||||||||||||
The principal components of deferred income tax assets and liabilities recognized on the balance sheets as of December 31 are included in the table below. Certain temporary differences are netted in the table when the offsetting amount is recorded as a regulatory asset or liability. This is consistent with regulatory treatment. | ||||||||||||||||||||||
(Millions) | 2014 | 2013 | ||||||||||||||||||||
Total deferred income tax assets | $ | 4.4 | $ | 3.5 | ||||||||||||||||||
Deferred income tax liabilities | ||||||||||||||||||||||
Plant-related | 591 | 491.7 | ||||||||||||||||||||
Employee benefits | 83.9 | 81 | ||||||||||||||||||||
Regulatory deferrals | 42.4 | 44.4 | ||||||||||||||||||||
Other | 13 | 16.7 | ||||||||||||||||||||
Total deferred income tax liabilities | $ | 730.3 | $ | 633.8 | ||||||||||||||||||
Total net deferred income tax liabilities | $ | 725.9 | $ | 630.3 | ||||||||||||||||||
Balance sheet presentation | ||||||||||||||||||||||
Current deferred income tax liabilities – included in other current liabilities | $ | 3.8 | $ | 10.8 | ||||||||||||||||||
Long-term deferred income tax liabilities | 722.1 | 619.5 | ||||||||||||||||||||
Total net deferred income tax liabilities | $ | 725.9 | $ | 630.3 | ||||||||||||||||||
Deferred tax credit carryforwards at December 31, 2014, included $1.7 million of alternative minimum tax credits, which can be carried forward indefinitely. Other deferred tax credit carryforwards included $1.9 million of general business credits, which have a carryback period of one year and a carryforward period of 20 years. The majority of the general business credit carryforwards will expire in 2033. | ||||||||||||||||||||||
We record certain adjustments related to deferred income taxes to regulatory assets and liabilities. As the related temporary differences reverse, we prospectively refund taxes to or collect taxes from customers for which deferred taxes were recorded in prior years at rates potentially different than current rates or upon enactment of changes in tax law. The net regulatory assets for these and other regulatory tax effects totaled $32.7 million and $25.9 million at December 31, 2014, and 2013, respectively. See Note 8, Regulatory Assets and Liabilities, for more information. | ||||||||||||||||||||||
Income Before Taxes | ||||||||||||||||||||||
All income before taxes is domestic income for the years ended December 31, 2014, 2013, and 2012. | ||||||||||||||||||||||
Provision for Income Tax Expense | ||||||||||||||||||||||
The components of the provision for income taxes were as follows: | ||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||||
Current provision | ||||||||||||||||||||||
Federal | $ | (12.8 | ) | $ | (1.3 | ) | $ | 24.8 | ||||||||||||||
State | 6.7 | 3.4 | 4.2 | |||||||||||||||||||
Total current provision | (6.1 | ) | 2.1 | 29 | ||||||||||||||||||
Deferred provision | ||||||||||||||||||||||
Federal | 84.3 | 71.5 | 27.8 | |||||||||||||||||||
State | 6.6 | 8.3 | 5.9 | |||||||||||||||||||
Total deferred provision | 90.9 | 79.8 | 33.7 | |||||||||||||||||||
Interest | 0.2 | 0.3 | 0.1 | |||||||||||||||||||
Investment tax credits | ||||||||||||||||||||||
Deferral | — | — | 0.2 | |||||||||||||||||||
Amortization | (0.3 | ) | (0.3 | ) | (0.4 | ) | ||||||||||||||||
Total provision for income taxes | $ | 84.7 | $ | 81.9 | $ | 62.6 | ||||||||||||||||
Statutory Rate Reconciliation | ||||||||||||||||||||||
The following table presents a reconciliation of the difference between the effective tax rate and the amount computed by applying the statutory federal tax rate to income before taxes. | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
(Millions, except for percentages) | Rate | Amount | Rate | Amount | Rate | Amount | ||||||||||||||||
Statutory federal income tax | 35 | % | $ | 78.9 | 35 | % | $ | 76.9 | 35 | % | $ | 69.1 | ||||||||||
State income taxes, net | 4.8 | 10.9 | 4.8 | 10.5 | 4.4 | 8.7 | ||||||||||||||||
Benefits and compensation | (1.0 | ) | (2.2 | ) | (0.9 | ) | (1.9 | ) | (3.6 | ) | (7.2 | ) | ||||||||||
Federal tax credits | — | — | — | — | (3.5 | ) | (7.0 | ) | ||||||||||||||
Other differences, net | (1.2 | ) | (2.9 | ) | (1.6 | ) | (3.6 | ) | (0.6 | ) | (1.0 | ) | ||||||||||
Effective income tax | 37.6 | % | $ | 84.7 | 37.3 | % | $ | 81.9 | 31.7 | % | $ | 62.6 | ||||||||||
Unrecognized Tax Benefits | ||||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||||
Balance at January 1 | $ | — | $ | 0.3 | $ | 0.5 | ||||||||||||||||
Increase related to tax positions taken in prior years | — | 0.7 | — | |||||||||||||||||||
Decrease related to tax positions taken in prior years | — | (0.4 | ) | — | ||||||||||||||||||
Decrease related to settlements | — | (0.6 | ) | — | ||||||||||||||||||
Decrease related to lapse of statutes | — | — | (0.2 | ) | ||||||||||||||||||
Balance at December 31 | $ | — | $ | — | $ | 0.3 | ||||||||||||||||
We had no accrued interest and penalties related to unrecognized tax benefits at December 31, 2014, and 2013. | ||||||||||||||||||||||
We do not expect any unrecognized tax benefits to affect our effective tax rate in periods after December 31, 2014. | ||||||||||||||||||||||
We file income tax returns in the United States federal jurisdiction and in our major state operating jurisdictions on a stand-alone basis or as part of Integrys Energy Group filings. | ||||||||||||||||||||||
With a few exceptions, we are no longer subject to federal income tax examinations by the IRS for years prior to 2011. | ||||||||||||||||||||||
We file state tax returns based on income in our major state operating jurisdictions of Wisconsin and Michigan. We are no longer subject to state and local tax examinations for years prior to 2008. As of December 31, 2014, we were subject to examination by the Wisconsin taxing authority for tax years 2009 through 2013 and the Michigan taxing authority for tax years 2008 through 2013. During 2014, the Michigan taxing authority continued its examination of tax years 2008 through 2011, which began in 2012. | ||||||||||||||||||||||
In the next 12 months, we do not expect to significantly change the amount of unrecognized tax benefits. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | Commitments and Contingencies | ||||||||||||||||||||||||||||||
(a) Unconditional Purchase Obligations | |||||||||||||||||||||||||||||||
We routinely enter into long-term purchase and sale commitments for various quantities and lengths of time. We have obligations to distribute and sell electricity and natural gas to our customers and expect to recover costs related to these obligations in future customer rates. | |||||||||||||||||||||||||||||||
The following table shows our minimum future commitments related to these purchase obligations as of December 31, 2014. | |||||||||||||||||||||||||||||||
Payments Due By Period | |||||||||||||||||||||||||||||||
(Millions) | Date Contracts Extend Through | Total Amounts Committed | 2015 | 2016 | 2017 | 2018 | 2019 | Later Years | |||||||||||||||||||||||
Electric utility | |||||||||||||||||||||||||||||||
Purchased power | 2029 | $ | 836.8 | $ | 122.8 | $ | 42.8 | $ | 53.3 | $ | 55.9 | $ | 57 | $ | 505 | ||||||||||||||||
Coal supply and transportation | 2019 | 162.8 | 55.3 | 31.9 | 32.6 | 31.9 | 11.1 | — | |||||||||||||||||||||||
Natural gas utility supply and transportation | 2024 | 243.5 | 45.4 | 43.4 | 42.9 | 42.5 | 27.2 | 42.1 | |||||||||||||||||||||||
Total | $ | 1,243.10 | $ | 223.5 | $ | 118.1 | $ | 128.8 | $ | 130.3 | $ | 95.3 | $ | 547.1 | |||||||||||||||||
(b) Environmental Matters | |||||||||||||||||||||||||||||||
Air Permitting Violation Claims | |||||||||||||||||||||||||||||||
Weston and Pulliam Clean Air Act (CAA) Issues: | |||||||||||||||||||||||||||||||
In November 2009, the EPA issued a Notice of Violation (NOV) to us alleging violations of the CAA's New Source Review requirements relating to certain projects completed at the Weston and Pulliam plants from 1994 to 2009. We reached a settlement agreement with the EPA regarding this NOV and signed a Consent Decree. This Consent Decree was approved by the U.S. District Court (Court) in March 2013, after a public comment period. The final Consent Decree includes: | |||||||||||||||||||||||||||||||
• | the installation of emission control technology, including ReACT™ on Weston 3, | ||||||||||||||||||||||||||||||
• | changed operating conditions (including refueling, repowering, and/or retirement of units), | ||||||||||||||||||||||||||||||
• | limitations on plant emissions, | ||||||||||||||||||||||||||||||
• | beneficial environmental projects totaling $6.0 million, and | ||||||||||||||||||||||||||||||
• | a civil penalty of $1.2 million. | ||||||||||||||||||||||||||||||
As mentioned above, the Consent Decree contains a requirement to refuel, repower, and/or retire certain Weston and Pulliam units. We announced that certain Weston and Pulliam units mentioned in the Consent Decree will be retired early, in June 2015. We received approval from the PSCW in our 2015 rate order to defer and amortize the undepreciated book value of the retired plant associated with Pulliam 5 and 6 and Weston 1 starting with the actual retirement date in 2015 and concluding when the balance is fully amortized. See Note 6, Property, Plant, and Equipment, for more information. | |||||||||||||||||||||||||||||||
We received approval from the PSCW in our 2014 and 2015 rate orders to recover prudently incurred costs as a result of complying with the terms of the Consent Decree, with the exception of the civil penalty. We also believe that additional prudently incurred costs expected after 2015 will be recoverable from customers based on past precedent with the PSCW. | |||||||||||||||||||||||||||||||
The majority of the beneficial environmental projects that we proposed have been approved by the EPA. Amounts have been accrued and recorded to regulatory assets, excluding costs associated with capital projects. | |||||||||||||||||||||||||||||||
In May 2010, we received from the Sierra Club a Notice of Intent to file a civil lawsuit based on allegations that we violated the CAA at the Weston and Pulliam plants. We entered into a Standstill Agreement with the Sierra Club by which the parties agreed to negotiate as part of the EPA NOV process, rather than litigate. The Standstill Agreement ended in October 2012, but no further action has been taken by the Sierra Club as of December 31, 2014. It is unknown whether the Sierra Club will take further action in the future. | |||||||||||||||||||||||||||||||
Columbia and Edgewater CAA Issues: | |||||||||||||||||||||||||||||||
In December 2009, the EPA issued an NOV to Wisconsin Power and Light (WP&L), the operator of the Columbia and Edgewater plants, and the other joint owners of these plants, including Madison Gas and Electric and us. The NOV alleges violations of the CAA's New Source Review requirements related to certain projects completed at those plants. We, WP&L, and Madison Gas and Electric reached a settlement agreement with the EPA regarding this NOV and signed a Consent Decree. This Consent Decree was approved by the Court in June 2013, after a public comment period. The final Consent Decree includes: | |||||||||||||||||||||||||||||||
• | the installation of emission control technology, including scrubbers at the Columbia plant, | ||||||||||||||||||||||||||||||
• | changed operating conditions (including refueling, repowering, and/or retirement of units), | ||||||||||||||||||||||||||||||
• | limitations on plant emissions, | ||||||||||||||||||||||||||||||
• | beneficial environmental projects, with our portion totaling $1.3 million, and | ||||||||||||||||||||||||||||||
• | our portion of a civil penalty and legal fees totaling $0.4 million. | ||||||||||||||||||||||||||||||
As mentioned above, the Consent Decree contains a requirement to refuel, repower, and/or retire certain of the Columbia and Edgewater units. As of December 31, 2014, no decision had been made on how to address this requirement. Therefore, retirement of the Columbia and Edgewater units mentioned in the Consent Decree was not considered probable. | |||||||||||||||||||||||||||||||
We believe that significant costs prudently incurred as a result of complying with the terms of the Consent Decree, with the exception of the civil penalty, will be recoverable from customers. | |||||||||||||||||||||||||||||||
All of the beneficial environmental projects that we proposed have been approved by the EPA. Amounts have been accrued and recorded to regulatory assets, excluding costs associated with capital projects. | |||||||||||||||||||||||||||||||
Weston Title V Air Permit: | |||||||||||||||||||||||||||||||
In August 2013, the WDNR issued the Weston Title V air permit. In September 2013, we challenged various requirements in the permit by filing a contested case proceeding with the WDNR and also filed a Petition for Judicial Review in the Brown County Circuit Court. The Sierra Club and Clean Wisconsin also challenged various aspects of the permit. The WDNR granted all parties' requests for contested case proceedings. The Petitions for Judicial Review, by all parties, have been stayed pending the resolution of the contested cases. In February 2014, we also requested a modification to the construction permit for Weston 4 to remove the mercury Best Available Control Technology (BACT) emission limit requirement. This permit request was denied by the WDNR and we challenged this issue as well. At our request, the permit was modified to resolve several of the petition issues. Those issues have now been voluntarily dismissed from the case, while one new permit change was challenged and added to the case. The administrative law judge (ALJ) recently dismissed some of the petition issues relating to the averaging period and monitoring issues. In May 2014, the WDNR issued an NOV alleging that we failed to maintain a minimum sorbent feed rate prior to the Continuous Emissions Monitoring System certification. The WDNR also issued a Notice of Inquiry (NOI) alleging that we failed to comply with reporting requirements related to challenged matters in the 2013 Weston Title V permit. The ALJ recently denied our request to issue a stay or confirm that a statutory stay applies to the requirements identified in the NOV and NOI. The parties are discussing a briefing schedule, but no hearing date has been set. We do not expect these matters to have a material impact on our financial statements. | |||||||||||||||||||||||||||||||
Mercury and Interstate Air Quality Rules | |||||||||||||||||||||||||||||||
Mercury: | |||||||||||||||||||||||||||||||
The State of Wisconsin's mercury rule required a 40% reduction from historical baseline mercury emissions, beginning January 1, 2010, through the end of 2014. Beginning in 2015, electric generating units above 150 megawatts would have been required to further reduce mercury emissions. However, in December 2011, the EPA issued the final Utility Mercury and Air Toxics Standards (MATS), which regulates emissions of mercury and other hazardous air pollutants beginning in April 2015. The State of Wisconsin recently revised the state mercury rule to be consistent with the MATS rule. Projects approved and initiated to address the State of Wisconsin mercury rule are expected to ensure compliance with the mercury limits in the MATS rule. | |||||||||||||||||||||||||||||||
We were in compliance with the State of Wisconsin's mercury rule at the end of 2014. In addition, we are making progress toward compliance with the MATS rule in 2015. We estimated capital costs of approximately $9 million for our wholly owned plants to achieve the required reductions for MATS compliance, of which approximately $8 million was expended as of December 31, 2014. The capital costs are expected to be recovered in future rates. | |||||||||||||||||||||||||||||||
Sulfur Dioxide and Nitrogen Oxide: | |||||||||||||||||||||||||||||||
In July 2011, the EPA issued a final rule known as the Cross State Air Pollution Rule (CSAPR), which numerous parties, including us, challenged in the United States Court of Appeals (Court of Appeals) for the District of Columbia Circuit (D.C. Circuit). The new rule was to become effective in January 2012. However, in December 2011, the CSAPR requirements were stayed by the D.C. Circuit and a previous rule, the Clean Air Interstate Rule (CAIR), was implemented during the stay period. In August 2012, the D.C. Circuit issued their ruling vacating and remanding CSAPR and simultaneously reinstating CAIR pending the issuance of a replacement rule by the EPA. The case was appealed to the United States Supreme Court (Supreme Court), and in April 2014, the Supreme Court upheld the CSAPR rule and remanded the case to the Court of Appeals for the D.C. Circuit. In October 2014, the Court of Appeals granted the EPA's request and lifted the stay on CSAPR and changed the compliance deadlines by three years, so that Phase I emissions budgets will apply in 2015 and 2016 and Phase 2 emissions budgets will apply to 2017 and beyond. We do not expect to incur significant costs to comply with either phase of CSAPR and expect to recover any future compliance costs in future rates. | |||||||||||||||||||||||||||||||
Under CAIR, units affected by the Best Available Retrofit Technology (BART) rule were considered in compliance with BART for sulfur dioxide and nitrogen oxide emissions if they were in compliance with CAIR. This determination was updated when CSAPR was issued (CSAPR satisfied BART). Although particulate emissions also contribute to visibility impairment, the WDNR's modeling for Pulliam Unit 8, the only unit covered by BART, has shown the impairment to be so insignificant that additional capital expenditures or controls may not be warranted. | |||||||||||||||||||||||||||||||
Clean Water Act Rule | |||||||||||||||||||||||||||||||
In August 2014, the EPA issued a final Clean Water Act rule, which established requirements under Section 316(b) to regulate water intake structures at industrial facilities that use large volumes of surface water as cooling water. The new rule became effective in October 2014 and has been challenged by a number of parties. The cases have been consolidated and will be heard in the United States Court of Appeals for the Second Circuit. To the extent that the rule is upheld, we will comply with the rule on the timeline required under the regulation. We will evaluate the impact of compliance by conducting the studies required by the rule at our facilities. We anticipate that the timing for compliance will be incorporated into future wastewater discharge permit renewals. We do not expect to incur significant costs to comply with the Clean Water Act rule as our Weston plants are already equipped with cooling towers that assist with meeting these new requirements. We expect to recover any future compliance costs in future rates. | |||||||||||||||||||||||||||||||
Manufactured Gas Plant Remediation | |||||||||||||||||||||||||||||||
We operated facilities in the past at multiple sites for the purpose of manufacturing and storing manufactured gas. In connection with these activities, waste materials were produced that may have resulted in soil and groundwater contamination at these sites. Under certain laws and regulations relating to the protection of the environment, we are required to undertake remedial action with respect to some of these materials. We are coordinating the investigation and cleanup of the sites subject to EPA jurisdiction under what is called a "multisite" program. This program involves prioritizing the work to be done at the sites, preparation and approval of documents common to all of the sites, and use of a consistent approach in selecting remedies. | |||||||||||||||||||||||||||||||
We are responsible for the environmental remediation of ten sites, of which seven have been transferred to the EPA Superfund Alternative Sites Program. Under the EPA's program, the remedy decisions at these sites will be made using risk-based criteria typically used at Superfund sites. Our balance sheet includes liabilities of $86.3 million that we have estimated and accrued for as of December 31, 2014, for future undiscounted investigation and cleanup costs for all sites. We may adjust these estimates in the future due to remedial technology, regulatory requirements, remedy determinations, and any claims of natural resource damages. As of December 31, 2014, cash expenditures for environmental remediation not yet recovered in rates were $16.0 million. Our balance sheet also includes a regulatory asset of $102.3 million at December 31, 2014, which is net of insurance recoveries, related to the expected recovery through rates of both cash expenditures and estimated future expenditures. Under current PSCW policies, we may not recover carrying costs associated with the cleanup expenditures. | |||||||||||||||||||||||||||||||
Management believes that any costs incurred for environmental activities relating to former manufactured gas plant operations that are not recoverable through contributions from other entities or from insurance carriers have been prudently incurred and are, therefore, recoverable through rates. Accordingly, we do not expect these costs to have a material impact on our financial statements. However, any changes in the approved rate mechanisms for recovery of these costs, or any adverse conclusions by the PSCW or the MPSC with respect to the prudence of costs actually incurred, could materially affect recovery of such costs through rates. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | Employee Benefit Plans | ||||||||||||||||||||||||||||||||
Defined Benefit Plans | |||||||||||||||||||||||||||||||||
We participate in the Integrys Energy Group Retirement Plan, a noncontributory, qualified pension plan sponsored by IBS. We are responsible for our share of the plan assets and obligations. We serve as plan sponsor and administrator for certain other postretirement benefit plans. The benefits are funded through irrevocable trusts, as allowed for income tax purposes. Our balance sheets reflect only the liabilities associated with our past and current employees and our share of the plan assets and obligations. Integrys Energy Group also offers medical, dental, and life insurance benefits to our active employees and their dependents. We expense the allocated costs of these benefits as incurred. | |||||||||||||||||||||||||||||||||
The defined benefit pension plans are closed to all new hires. In addition, the service accruals for the defined benefit pension plans were frozen for non-union employees as of January 1, 2013. In March 2014, we remeasured the obligations of certain other postretirement benefit plans as a result of a plan design change to move participants age 65 and older to a Medicare Advantage plan starting January 1, 2015. | |||||||||||||||||||||||||||||||||
The following tables provide a reconciliation of the changes in our share of the plans' benefit obligations and fair value of assets: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||||||||||
Obligation at January 1 | $ | 717.5 | $ | 772.6 | $ | 292.7 | $ | 328.5 | |||||||||||||||||||||||||
Service cost | 8.6 | 10.8 | 7.7 | 10.6 | |||||||||||||||||||||||||||||
Interest cost | 34.4 | 30.6 | 11.5 | 13.4 | |||||||||||||||||||||||||||||
Plan amendments | — | — | (74.4 | ) | 0.1 | ||||||||||||||||||||||||||||
Transfer to affiliates | (12.1 | ) | (6.6 | ) | — | — | |||||||||||||||||||||||||||
Actuarial loss (gain), net | 73 | (63.6 | ) | 24 | (51.4 | ) | |||||||||||||||||||||||||||
Participant contributions | — | — | 0.5 | 0.6 | |||||||||||||||||||||||||||||
Benefit payments | (29.6 | ) | (26.3 | ) | (10.4 | ) | (10.0 | ) | |||||||||||||||||||||||||
Federal subsidy on benefits paid | — | — | 0.9 | 0.9 | |||||||||||||||||||||||||||||
Obligation at December 31 | $ | 791.8 | $ | 717.5 | $ | 252.5 | $ | 292.7 | |||||||||||||||||||||||||
Change in fair value of plan assets | |||||||||||||||||||||||||||||||||
Fair value of plan assets at January 1 | $ | 839.1 | $ | 719.6 | $ | 236.5 | $ | 213.7 | |||||||||||||||||||||||||
Actual return on plan assets | 53.1 | 112.1 | 7.4 | 29 | |||||||||||||||||||||||||||||
Employer contributions | 46.9 | 40.3 | 2.6 | 3.2 | |||||||||||||||||||||||||||||
Participant contributions | — | — | 0.5 | 0.6 | |||||||||||||||||||||||||||||
Benefit payments | (29.6 | ) | (26.3 | ) | (10.4 | ) | (10.0 | ) | |||||||||||||||||||||||||
Transfer to affiliates | (12.1 | ) | (6.6 | ) | — | — | |||||||||||||||||||||||||||
Fair value of plan assets at December 31 | $ | 897.4 | $ | 839.1 | $ | 236.6 | $ | 236.5 | |||||||||||||||||||||||||
Funded status at December 31 | $ | 105.6 | $ | 121.6 | $ | (15.9 | ) | $ | (56.2 | ) | |||||||||||||||||||||||
The amounts recognized on our balance sheets at December 31 related to the funded status of the benefit plans were as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Long-term assets | $ | 128.9 | $ | 145.1 | $ | — | $ | — | |||||||||||||||||||||||||
Current liabilities | 1.5 | 3.1 | 0.1 | 0.2 | |||||||||||||||||||||||||||||
Long-term liabilities | 21.8 | 20.4 | 15.8 | 56 | |||||||||||||||||||||||||||||
Total net assets (liabilities) | $ | 105.6 | $ | 121.6 | $ | (15.9 | ) | $ | (56.2 | ) | |||||||||||||||||||||||
The accumulated benefit obligation for the defined benefit pension plans was $717.4 million and $658.3 million at December 31, 2014, and 2013, respectively. | |||||||||||||||||||||||||||||||||
The following table shows information for qualified pension plans with an accumulated benefit obligation in excess of plan assets. There were no plan assets related to these pension plans. Amounts presented are as of December 31: | |||||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 23.3 | $ | 23.5 | |||||||||||||||||||||||||||||
Accumulated benefit obligation | 21.5 | 21.8 | |||||||||||||||||||||||||||||||
The following table shows the amounts that had not yet been recognized in our net periodic benefit cost as of December 31: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Net regulatory assets | |||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 178.7 | $ | 110.2 | $ | 41 | $ | 11.5 | |||||||||||||||||||||||||
Prior service cost (credit) | 1.8 | 2.4 | (78.3 | ) | (12.0 | ) | |||||||||||||||||||||||||||
Total | $ | 180.5 | $ | 112.6 | $ | (37.3 | ) | $ | (0.5 | ) | |||||||||||||||||||||||
The following table shows the estimated amounts in regulatory assets that will be amortized into net periodic benefit cost during 2015: | |||||||||||||||||||||||||||||||||
(Millions) | Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
Net actuarial loss | $ | 19.6 | $ | 4.2 | |||||||||||||||||||||||||||||
Prior service cost (credit) | 0.2 | (9.3 | ) | ||||||||||||||||||||||||||||||
Total 2015 - estimated amortization | $ | 19.8 | $ | (5.1 | ) | ||||||||||||||||||||||||||||
The following table shows the components of net periodic benefit cost (including amounts capitalized to our balance sheets) for our benefit plans: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Service cost | $ | 8.6 | $ | 10.8 | $ | 12.8 | $ | 7.7 | $ | 10.6 | $ | 8.5 | |||||||||||||||||||||
Interest cost | 34.4 | 30.6 | 34 | 11.5 | 13.4 | 15.1 | |||||||||||||||||||||||||||
Expected return on plan assets | (64.1 | ) | (57.2 | ) | (55.4 | ) | (16.0 | ) | (14.8 | ) | (14.6 | ) | |||||||||||||||||||||
Loss on plan settlement | 0.4 | — | — | — | — | — | |||||||||||||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | 0.2 | |||||||||||||||||||||||||||
Amortization of prior service cost (credit) | 0.6 | 3.6 | 4.5 | (8.0 | ) | (2.1 | ) | (3.0 | ) | ||||||||||||||||||||||||
Amortization of net actuarial loss | 15 | 24 | 14.9 | 2.8 | 7.5 | 5.7 | |||||||||||||||||||||||||||
Net periodic benefit cost | $ | (5.1 | ) | $ | 11.8 | $ | 10.8 | $ | (2.0 | ) | $ | 14.6 | $ | 11.9 | |||||||||||||||||||
Assumptions – Pension and Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||
The weighted-average assumptions used to determine the benefit obligations for the plans were as follows for the years ended December 31: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Discount rate | 4.08% | 4.92% | 4.11% | 4.98% | |||||||||||||||||||||||||||||
Rate of compensation increase | 4.23% | 4.25% | N/A | N/A | |||||||||||||||||||||||||||||
Assumed medical cost trend rate | N/A | N/A | 6.00% | 6.50% | |||||||||||||||||||||||||||||
Ultimate trend rate | N/A | N/A | 5.00% | 5.00% | |||||||||||||||||||||||||||||
Year ultimate trend rate is reached | N/A | N/A | 2023 | 2019 | |||||||||||||||||||||||||||||
Assumed dental cost trend rate | N/A | N/A | 5.00% | 5.00% | |||||||||||||||||||||||||||||
The weighted-average assumptions used to determine net periodic benefit cost for the plans were as follows for the years ended December 31: | |||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Discount rate | 4.92% | 4.07% | 5.10% | ||||||||||||||||||||||||||||||
Expected return on assets | 8.00% | 8.00% | 8.25% | ||||||||||||||||||||||||||||||
Rate of compensation increase | 4.25% | 4.26% | 4.26% | ||||||||||||||||||||||||||||||
Other Benefits | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Discount rate | 4.78% | 4.01% | 5.04% | ||||||||||||||||||||||||||||||
Expected return on assets | 8.00% | 8.00% | 8.25% | ||||||||||||||||||||||||||||||
Assumed medical cost trend rate (under age 65) | 6.50% | 7.00% | 7.00% | ||||||||||||||||||||||||||||||
Ultimate trend rate | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||||||||||||
Year ultimate trend rate is reached | 2019 | 2019 | 2016 | ||||||||||||||||||||||||||||||
Assumed medical cost trend rate (over age 65) | 6.50% | 7.00% | 7.50% | ||||||||||||||||||||||||||||||
Ultimate trend rate | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||||||||||||
Year ultimate trend rate is reached | 2019 | 2019 | 2016 | ||||||||||||||||||||||||||||||
Assumed dental cost trend rate | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||||||||||||
We establish our expected return on assets assumption based on consideration of historical and projected asset class returns, as well as the target allocations of the benefit trust portfolios. For 2015, the expected return on assets assumption for the plans is 7.75%. | |||||||||||||||||||||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported by us for the health care plans. For the year ended December 31, 2014, a one-percentage-point change in assumed health care cost trend rates would have had the following effects: | |||||||||||||||||||||||||||||||||
One-Percentage-Point | |||||||||||||||||||||||||||||||||
(Millions) | Increase | Decrease | |||||||||||||||||||||||||||||||
Effect on total of service and interest cost components of net periodic postretirement health care benefit cost | $ | 3.3 | $ | (2.6 | ) | ||||||||||||||||||||||||||||
Effect on the health care component of the accumulated postretirement benefit obligation | 34.4 | (33.9 | ) | ||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plan Assets | |||||||||||||||||||||||||||||||||
Integrys Energy Group's investment policy includes various guidelines and procedures designed to ensure assets are invested in an appropriate manner to meet expected future benefits to be earned by participants. The investment guidelines consider a broad range of economic conditions. The policy is established and administered in a manner that is compliant at all times with applicable regulations. | |||||||||||||||||||||||||||||||||
Central to the policy are target allocation ranges by major asset categories. The objectives of the target allocations are to maintain investment portfolios that diversify risk through prudent asset allocation parameters and to achieve asset returns that meet or exceed the plans' actuarial assumptions and that are competitive with like instruments employing similar investment strategies. The portfolio diversification provides protection against significant concentrations of risk in the plan assets. In 2014, the pension plan target asset allocation was 70% equity securities and 30% fixed income securities. In December 2014, we changed the pension plan target asset allocation to 60% equity securities and 40% fixed income securities for 2015. The target asset allocation for other postretirement benefit plans that have significant assets is 70% equity securities and 30% fixed income securities. Equity securities primarily include investments in large-cap and small-cap companies. Fixed income securities primarily include corporate bonds of companies from diversified industries, United States government securities, and mortgage-backed securities. | |||||||||||||||||||||||||||||||||
The Board of Directors of Integrys Energy Group established the Employee Benefits Administrator Committee (composed of members of Integrys Energy Group and its subsidiaries' management) to manage the operations and administration of all benefit plans and trusts. The committee monitors the asset allocation, and the portfolio is rebalanced when necessary. | |||||||||||||||||||||||||||||||||
Pension and other postretirement benefit plan investments are recorded at fair value. See Note 1(t), Fair Value, for more information regarding the fair value hierarchy and the classification of fair value measurements based on the types of inputs used. | |||||||||||||||||||||||||||||||||
The following tables provide the fair values of our investments by asset class: | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Pension Plan Assets | Other Benefit Plan Assets | ||||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Asset Class | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 24.9 | $ | — | $ | 24.9 | $ | 4.6 | $ | 1.6 | $ | — | $ | 6.2 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
United States equity | 53.6 | 197.8 | — | 251.4 | 14.8 | 62.4 | — | 77.2 | |||||||||||||||||||||||||
International equity | 54.4 | 225.9 | — | 280.3 | 17.6 | 65.4 | — | 83 | |||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
United States government | 41.3 | 12.7 | — | 54 | 61.3 | — | — | 61.3 | |||||||||||||||||||||||||
Foreign government | — | 12.1 | — | 12.1 | — | — | — | — | |||||||||||||||||||||||||
Corporate debt | — | 250.5 | — | 250.5 | — | — | — | — | |||||||||||||||||||||||||
Other | — | 31.5 | — | 31.5 | 0.2 | — | — | 0.2 | |||||||||||||||||||||||||
149.3 | 755.4 | — | 904.7 | 98.5 | 129.4 | — | 227.9 | ||||||||||||||||||||||||||
401(h) other benefit plan assets invested as pension assets (1) | (1.5 | ) | (7.3 | ) | — | (8.8 | ) | 1.5 | 7.3 | — | 8.8 | ||||||||||||||||||||||
Total (2) | $ | 147.8 | $ | 748.1 | $ | — | $ | 895.9 | $ | 100 | $ | 136.7 | $ | — | $ | 236.7 | |||||||||||||||||
(1) | Pension trust assets are used to pay other postretirement benefits as allowed under Internal Revenue Code Section 401(h). | ||||||||||||||||||||||||||||||||
(2) | Investments do not include accruals or pending transactions that are included in the table reconciling the change in fair value of plan assets. | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Pension Plan Assets | Other Benefit Plan Assets | ||||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Asset Class | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1.1 | $ | 19.7 | $ | — | $ | 20.8 | $ | — | $ | 2.3 | $ | — | $ | 2.3 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
United States equity | 54.1 | 239.9 | — | 294 | 14.2 | 66.5 | — | 80.7 | |||||||||||||||||||||||||
International equity | 61.5 | 231.3 | — | 292.8 | 16.7 | 63.3 | — | 80 | |||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
United States government | — | 50.4 | — | 50.4 | 65 | 0.6 | — | 65.6 | |||||||||||||||||||||||||
Foreign government | — | 9.1 | 1.3 | 10.4 | — | — | — | — | |||||||||||||||||||||||||
Corporate debt | — | 134.8 | 0.7 | 135.5 | — | — | — | — | |||||||||||||||||||||||||
Asset-backed securities | — | 33.3 | — | 33.3 | — | — | — | — | |||||||||||||||||||||||||
Other | — | 9.4 | — | 9.4 | (0.1 | ) | — | — | (0.1 | ) | |||||||||||||||||||||||
116.7 | 727.9 | 2 | 846.6 | 95.8 | 132.7 | — | 228.5 | ||||||||||||||||||||||||||
401(h) other benefit plan assets invested as pension assets (1) | (1.1 | ) | (7.1 | ) | — | (8.2 | ) | 1.1 | 7.1 | — | 8.2 | ||||||||||||||||||||||
Total (2) | $ | 115.6 | $ | 720.8 | $ | 2 | $ | 838.4 | $ | 96.9 | $ | 139.8 | $ | — | $ | 236.7 | |||||||||||||||||
(1) | Pension trust assets are used to pay other postretirement benefits as allowed under Internal Revenue Code Section 401(h). | ||||||||||||||||||||||||||||||||
(2) | Investments do not include accruals or pending transactions that are included in the table reconciling the change in fair value of plan assets. | ||||||||||||||||||||||||||||||||
The following tables set forth a reconciliation of changes in the fair value of pension plan assets categorized as Level 3 in the fair value hierarchy: | |||||||||||||||||||||||||||||||||
(Millions) | Foreign Government Debt | Corporate Debt | Total | ||||||||||||||||||||||||||||||
Beginning balance at January 1, 2014 | $ | 1.3 | $ | 0.7 | $ | 2 | |||||||||||||||||||||||||||
Net realized and unrealized gains | 0.1 | 0.1 | 0.2 | ||||||||||||||||||||||||||||||
Sales | (1.4 | ) | (0.8 | ) | (2.2 | ) | |||||||||||||||||||||||||||
Ending balance at December 31, 2014 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Net unrealized gains (losses) related to assets still held at the end of the period | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
(Millions) | Foreign Government Debt | Corporate Debt | Total | ||||||||||||||||||||||||||||||
Beginning balance at January 1, 2013 | $ | 2.2 | $ | 0.5 | $ | 2.7 | |||||||||||||||||||||||||||
Net realized and unrealized losses | (0.1 | ) | (0.2 | ) | (0.3 | ) | |||||||||||||||||||||||||||
Purchases | 0.3 | — | 0.3 | ||||||||||||||||||||||||||||||
Sales | (1.1 | ) | (0.2 | ) | (1.3 | ) | |||||||||||||||||||||||||||
Transfers into Level 3 | — | 0.8 | 0.8 | ||||||||||||||||||||||||||||||
Transfers out of Level 3 | $ | — | $ | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||||
Ending balance at December 31, 2013 | $ | 1.3 | $ | 0.7 | $ | 2 | |||||||||||||||||||||||||||
Net unrealized losses related to assets still held at the end of the period | $ | (0.1 | ) | $ | (0.2 | ) | $ | (0.3 | ) | ||||||||||||||||||||||||
Cash Flows Related to Pension and Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||
Our funding policy is to contribute at least the minimum amounts that are required to be funded under the Employee Retirement Income Security Act, but not more than the maximum amounts that are currently deductible for income tax purposes. We expect to contribute $1.5 million to the pension plans and $1.2 million to other postretirement benefit plans in 2015, dependent on various factors affecting us, including our liquidity position and tax law changes. | |||||||||||||||||||||||||||||||||
The following table shows the payments, reflecting expected future service, that we expect to make for pension and other postretirement benefits. | |||||||||||||||||||||||||||||||||
(Millions) | Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2015 | $ | 41.2 | $ | 9.4 | |||||||||||||||||||||||||||||
2016 | 42.3 | 10 | |||||||||||||||||||||||||||||||
2017 | 44.3 | 10.9 | |||||||||||||||||||||||||||||||
2018 | 44.1 | 11.7 | |||||||||||||||||||||||||||||||
2019 | 45.6 | 12.5 | |||||||||||||||||||||||||||||||
2020 through 2024 | 224.3 | 73.6 | |||||||||||||||||||||||||||||||
Defined Contribution Benefit Plans | |||||||||||||||||||||||||||||||||
Integrys Energy Group maintains a 401(k) Savings Plan for substantially all of our full-time employees. A percentage of employee contributions are matched through an employee stock ownership plan (ESOP) contribution up to certain limits. Certain union employees receive a contribution to their ESOP account regardless of their participation in the 401(k) Savings Plan. Certain employees participate in a defined contribution pension plan, in which certain amounts are contributed to an employee's account based on the employee's wages, age, and years of service. Our share of the total costs incurred under all of these plans was $8.6 million in 2014, $8.2 million in 2013, and $5.5 million in 2012. | |||||||||||||||||||||||||||||||||
Integrys Energy Group maintains deferred compensation plans that enable certain key employees, including some who are our employees, to defer payment of a portion of their compensation on a pre-tax basis. Compensation is generally deferred in the form of cash and is indexed to certain investment options or Integrys Energy Group common stock. The deemed dividends paid on the common stock are automatically reinvested. | |||||||||||||||||||||||||||||||||
The deferred compensation arrangements for which distributions are made solely in Integrys Energy Group common stock are classified as an equity instrument on the balance sheets. Changes in the fair value of this portion of the deferred compensation obligation are not recognized. The deferred compensation obligation classified as an equity instrument was $7.0 million at December 31, 2014, and $8.0 million at December 31, 2013. | |||||||||||||||||||||||||||||||||
The portion of the deferred compensation obligation that is indexed to various investment options and allows for distributions in cash is classified as a liability on the balance sheets. The liability is adjusted, with a charge or credit to expense, to reflect changes in the fair value of the deferred compensation obligation. The obligation classified within other long-term liabilities was $15.5 million at December 31, 2014, and $15.1 million at December 31, 2013. The costs incurred under this arrangement were $1.9 million in 2014, $1.5 million in 2013, and $1.1 million in 2012. |
PREFERRED_STOCK
PREFERRED STOCK | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Class of Stock Disclosures [Abstract] | |||||||||||||||
PREFERRED STOCK | Preferred Stock | ||||||||||||||
We have 1,000,000 authorized shares of preferred stock with no mandatory redemption and a $100 par value. Outstanding shares were as follows at December 31: | |||||||||||||||
(Millions, except share amounts) | 2014 | 2013 | |||||||||||||
Series | Shares Outstanding | Carrying Value | Shares Outstanding | Carrying Value | |||||||||||
5.00% | 131,916 | $ | 13.2 | 131,916 | $ | 13.2 | |||||||||
5.04% | 29,983 | 3 | 29,983 | 3 | |||||||||||
5.08% | 49,983 | 5 | 49,983 | 5 | |||||||||||
6.76% | 150,000 | 15 | 150,000 | 15 | |||||||||||
6.88% | 150,000 | 15 | 150,000 | 15 | |||||||||||
Total | 511,882 | $ | 51.2 | 511,882 | $ | 51.2 | |||||||||
All shares of preferred stock of all series are of equal rank except as to dividend rates and redemption terms. Payment of dividends from any earned surplus or other available surplus is not restricted by the terms of any indenture or other undertaking by us. Each series of outstanding preferred stock is redeemable in whole or in part at our option at any time on 30 days' notice at the respective redemption prices. We may not redeem less than all, nor purchase any, of our preferred stock during the existence of any dividend default. | |||||||||||||||
In the event of our dissolution or liquidation, the holders of preferred stock are entitled to receive (a) the par value of their preferred stock out of the corporate assets other than profits before any of such assets are paid or distributed to the holders of common stock and (b) the amount of dividends accumulated and unpaid on their preferred stock out of the surplus or net profits before any of such surplus or net profits are paid to the holders of common stock. Thereafter, the remainder of the corporate assets, surplus, and net profits would be paid to the holders of common stock. | |||||||||||||||
The preferred stock has no pre-emptive, subscription, or conversion rights, and has no sinking fund provisions. |
COMMON_EQUITY
COMMON EQUITY | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
COMMON EQUITY | Common Equity |
Various laws, regulations, and financial covenants impose restrictions on our ability to pay dividends to the sole holder of our common stock, Integrys Energy Group. | |
The PSCW allows us to pay dividends on our common stock of no more than 103% of the previous year's common stock dividend. We may return capital to Integrys Energy Group if our average financial common equity ratio is at least 51% on a calendar year basis. We must obtain PSCW approval if a return of capital would cause our average financial common equity ratio to fall below this level. Integrys Energy Group's right to receive dividends on our common stock is also subject to the prior rights of our preferred shareholders and to provisions in our restated articles of incorporation, which limit the amount of common stock dividends that we may pay if our common stock and common stock surplus accounts constitute less than 25% of our total capitalization. | |
Our short-term debt obligations contain financial and other covenants, including but not limited to, a requirement to maintain a debt to total capitalization ratio not to exceed 65%. Failure to comply with these covenants could result in an event of default, which could result in the acceleration of outstanding debt obligations. | |
As of December 31, 2014, total restricted retained earnings were $521.8 million. Our equity in undistributed earnings of 50% or less owned investees accounted for by the equity method was $30.8 million at December 31, 2014. | |
Except for the restrictions described above and subject to applicable law, we do not have any other significant dividend restrictions. | |
Integrys Energy Group may provide equity contributions to us or request a return of capital from us in order to maintain utility common equity levels consistent with those allowed by the PSCW. Wisconsin law prohibits us from making loans to or guaranteeing obligations of Integrys Energy Group or its other subsidiaries. During the year ended December 31, 2014, we received $55.0 million of equity contributions from Integrys Energy Group and paid common stock dividends of $111.8 million to Integrys Energy Group. |
GUARANTEES
GUARANTEES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Guarantees [Abstract] | |||||||||||||
GUARANTEES | Guarantees | ||||||||||||
The following table shows our outstanding guarantees: | |||||||||||||
Expiration | |||||||||||||
(Millions) | Total Amounts Committed at December 31, 2014 | Less Than | Over | ||||||||||
1 Year | 1 Year | ||||||||||||
Standby letters of credit (1) | $ | 0.1 | $ | 0.1 | $ | — | |||||||
Surety bonds(2) | 0.6 | 0.6 | — | ||||||||||
Other guarantee(3) | 0.5 | — | 0.5 | ||||||||||
Total guarantees | $ | 1.2 | $ | 0.7 | $ | 0.5 | |||||||
(1) | At our request, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to us. These amounts are not reflected on our balance sheets. | ||||||||||||
(2) | Primarily for workers compensation self-insurance programs and obtaining various licenses, permits, and rights-of-way. These guarantees are not reflected on our balance sheets. | ||||||||||||
(3) | Issued for workers compensation coverage in Wisconsin and Michigan. This amount is not reflected on our balance sheets. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
STOCK-BASED COMPENSATION | Stock-Based Compensation | |||||||||||||
The following table reflects the stock-based compensation expense and the related deferred tax benefit recognized in income for the years ended December 31: | ||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||
Stock options | $ | 1 | $ | 0.7 | $ | 0.7 | ||||||||
Performance stock rights | 6.3 | 1.1 | 1.9 | |||||||||||
Restricted share units | 3.8 | 3.4 | 3.4 | |||||||||||
Total stock-based compensation expense | $ | 11.1 | $ | 5.2 | $ | 6 | ||||||||
Deferred income tax benefit | $ | 4.4 | $ | 2.1 | $ | 2.4 | ||||||||
No stock-based compensation cost was capitalized during 2014, 2013, and 2012. | ||||||||||||||
Stock Options | ||||||||||||||
The following table shows the weighted-average fair values per stock option granted along with the assumptions incorporated into the binomial lattice valuation models: | ||||||||||||||
2014 Grant | 2013 Grant | 2012 Grant | ||||||||||||
Weighted-average fair value per option | $6.70 | $6.03 | $6.30 | |||||||||||
Expected term | 8 years | 5 years | 5 years | |||||||||||
Risk-free interest rate | 0.12% – 2.88% | 0.18% – 2.11% | 0.17% – 2.18% | |||||||||||
Expected dividend yield | 5.28% | 5.33% | 5.28% | |||||||||||
Expected volatility | 18% | 24% | 25% | |||||||||||
A summary of stock option activity for 2014, and information related to outstanding and exercisable stock options at December 31, 2014, is presented below: | ||||||||||||||
Stock Options | Weighted-Average | Weighted-Average | Aggregate | |||||||||||
Exercise Price Per | Remaining Contractual | Intrinsic Value | ||||||||||||
Share | Life (in Years) | (Millions) | ||||||||||||
Outstanding at December 31, 2013 | 49,993 | $ | 53.03 | |||||||||||
Granted | 13,890 | 55.23 | ||||||||||||
Exercised | (58,169 | ) | 53.44 | |||||||||||
Outstanding at December 31, 2014 | 5,714 | $ | 54.18 | 7.5 | $ | 0.1 | ||||||||
Exercisable at December 31, 2014 | — | N/A | N/A | N/A | ||||||||||
The aggregate intrinsic value for outstanding and exercisable options in the above table represents the total pre-tax intrinsic value that would have been received by the option holders had they all exercised their options on December 31, 2014. This is calculated as the difference between Integrys Energy Group’s closing stock price on December 31, 2014, and the option exercise price, multiplied by the number of in-the-money stock options. The intrinsic value of options exercised during 2014 was $1.0 million, and was not significant during 2013 and 2012. The actual tax benefit realized for the tax deductions from these option exercises was not significant. | ||||||||||||||
Due to the accelerated vesting of all unvested stock options held by active employees in October 2014, all compensation expense related to outstanding stock options has been recognized at December 31, 2014. | ||||||||||||||
Performance Stock Rights | ||||||||||||||
The table below reflects the assumptions used in the Monte Carlo valuation models to estimate the fair value of the outstanding performance stock rights at December 31: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 0.21% – 0.63% | 0.13% – 1.27% | 0.17% – 1.27% | |||||||||||
Expected dividend yield | 5.25% – 5.33% | 5.28% – 5.34% | 5.18% – 5.34% | |||||||||||
Expected volatility | 18% – 22% | 15% – 36% | 14% – 36% | |||||||||||
A summary of the 2014 activity related to performance stock rights accounted for as equity awards is presented below: | ||||||||||||||
Performance | Weighted-Average | |||||||||||||
Stock Rights | Fair Value (2) | |||||||||||||
Outstanding at December 31, 2013 | 5,561 | $ | 45.16 | |||||||||||
Granted | 1,113 | 44.28 | ||||||||||||
Award modifications | 2,295 | 85.09 | ||||||||||||
Distributed (1) | (2,235 | ) | 75.02 | |||||||||||
Adjustment for estimated payout and shares not distributed (1) | (2,831 | ) | 46.32 | |||||||||||
Outstanding at December 31, 2014 | 3,903 | $ | 58.03 | |||||||||||
(1) | No shares of Integrys Energy Group common stock were distributed for performance stock rights with a performance period ending December 31, 2013, because the performance percentage was below the threshold payout level. In October 2014, Integrys Energy Group's Board of Directors approved the acceleration of a portion of the estimated distribution for those performance stock rights held by active employees with a performance period ending December 31, 2014. This distribution was made in December 2014. | |||||||||||||
(2) | Reflects the weighted-average fair value used to measure equity awards. Equity awards are measured using the grant date fair value or the fair value on the modification date. | |||||||||||||
The weighted-average grant date fair value of performance stock rights awarded during 2014, 2013, and 2012, was $44.28, $48.50, and $52.70 per performance stock right, respectively. | ||||||||||||||
A summary of the 2014 activity related to performance stock rights accounted for as liability awards is presented below: | ||||||||||||||
Performance | ||||||||||||||
Stock Rights | ||||||||||||||
Outstanding at December 31, 2013 | 9,222 | |||||||||||||
Granted | 4,440 | |||||||||||||
Award modifications | (2,295 | ) | ||||||||||||
Distributed * | (1,240 | ) | ||||||||||||
Adjustment for estimated payout and shares not distributed * | (93 | ) | ||||||||||||
Outstanding at December 31, 2014 | 10,034 | |||||||||||||
* | No shares of Integrys Energy Group common stock were distributed for performance stock rights with a performance period ending December 31, 2013, because the performance percentage was below the threshold payout level. In October 2014, Integrys Energy Group's Board of Directors approved the acceleration of a portion of the estimated distribution for those performance stock rights held by active employees with a performance period ending December 31, 2014. This distribution was made in December 2014. | |||||||||||||
The weighted-average fair value of all outstanding performance stock rights accounted for as liability awards as of December 31, 2014, was $121.26 per performance stock right. | ||||||||||||||
As of December 31, 2014, $2.0 million of compensation cost related to unvested and outstanding performance stock rights (equity and liability awards) was expected to be recognized over a weighted-average period of 1.6 years. | ||||||||||||||
The total intrinsic value of performance stock rights distributed during 2014, 2013, and 2012, was not significant. | ||||||||||||||
Restricted Share Units | ||||||||||||||
A summary of the 2014 activity related to all restricted share unit awards (equity and liability awards) is presented below: | ||||||||||||||
Restricted Share | Weighted-Average | |||||||||||||
Unit Awards | Grant Date Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 67,741 | $ | 52.06 | |||||||||||
Granted | 28,725 | 55.23 | ||||||||||||
Dividend equivalents | 2,875 | 54.45 | ||||||||||||
Vested and released | (28,325 | ) | 49.5 | |||||||||||
Transfers | 332 | 54.55 | ||||||||||||
Forfeited | (804 | ) | 54.64 | |||||||||||
Outstanding at December 31, 2014 | 70,544 | $ | 54.46 | |||||||||||
As of December 31, 2014, $3.5 million of compensation cost related to these awards was expected to be recognized over a weighted-average period of 2.3 years. | ||||||||||||||
The total intrinsic value of restricted share unit awards vested and released during 2014, 2013, and 2012, was $1.5 million, $1.6 million, and | ||||||||||||||
$1.5 million, respectively. The actual tax benefit realized for the tax deductions from the vesting and release of restricted share units during 2014, 2013, and 2012, was not significant. | ||||||||||||||
The weighted-average grant date fair value of restricted share units awarded during 2014, 2013, and 2012 was $55.23, $56.05, and $53.24 per unit, respectively. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
FAIR VALUE | Fair Value | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The following tables show assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy: | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Risk management assets | |||||||||||||||||
Natural gas contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||||
Financial transmission rights (FTRs) | — | — | 2.2 | 2.2 | |||||||||||||
Total | $ | — | $ | 0.1 | $ | 2.2 | $ | 2.3 | |||||||||
Risk management liabilities | |||||||||||||||||
Natural gas contracts | $ | 2.2 | $ | — | $ | — | $ | 2.2 | |||||||||
FTRs | — | — | 0.3 | 0.3 | |||||||||||||
Petroleum product contracts | 1.1 | — | — | 1.1 | |||||||||||||
Coal contracts | — | 1.2 | 2.2 | 3.4 | |||||||||||||
Total | $ | 3.3 | $ | 1.2 | $ | 2.5 | $ | 7 | |||||||||
December 31, 2013 | |||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Risk management assets | |||||||||||||||||
Natural gas contracts | $ | 0.6 | $ | — | $ | — | $ | 0.6 | |||||||||
FTRs | — | — | 1.5 | 1.5 | |||||||||||||
Petroleum product contracts | 0.1 | — | — | 0.1 | |||||||||||||
Coal contracts | — | — | 0.2 | 0.2 | |||||||||||||
Total | $ | 0.7 | $ | — | $ | 1.7 | $ | 2.4 | |||||||||
Risk management liabilities | |||||||||||||||||
Natural gas contracts | $ | 0.1 | $ | — | $ | — | $ | 0.1 | |||||||||
FTRs | — | — | 0.3 | 0.3 | |||||||||||||
Coal contracts | — | — | 2.7 | 2.7 | |||||||||||||
Total | $ | 0.1 | $ | — | $ | 3 | $ | 3.1 | |||||||||
The risk management assets and liabilities listed in the tables above include NYMEX futures and options, financial contracts used to manage transmission congestion costs in the MISO market, and physical commodity contracts. See Note 5, Risk Management Activities, for more information on our derivative instruments. | |||||||||||||||||
During 2014, a $1.2 million risk management liability related to certain coal contracts transferred from Level 3 to Level 2 of the fair value hierarchy. There were no transfers between the levels of the fair value hierarchy during 2013. | |||||||||||||||||
The significant unobservable inputs used in the valuations that resulted in categorization within Level 3 were as follows at December 31, 2014. The amounts listed in the table below represent the range of unobservable inputs that individually had a significant impact on the fair value determination and caused a derivative to be classified as Level 3. | |||||||||||||||||
Fair Value (Millions) | |||||||||||||||||
Assets | Liabilities | Valuation Technique | Unobservable Input | Average or Range | |||||||||||||
FTRs | $ | 2.2 | $ | 0.3 | Market-based | Forward market prices ($/megawatt-month) (1) | $188.16 | ||||||||||
Coal contract | — | 2.2 | Market-based | Forward market prices ($/ton) (2) | $10.89 — $13.60 | ||||||||||||
(1) | Represents forward market prices developed using historical cleared pricing data from MISO. | ||||||||||||||||
(2) | Represents third-party forward market pricing. | ||||||||||||||||
Significant changes in historical settlement prices and forward coal prices would result in a directionally similar significant change in fair value. | |||||||||||||||||
The following tables set forth a reconciliation of changes in the fair value of items categorized as Level 3 measurements: | |||||||||||||||||
2014 | |||||||||||||||||
(Millions) | FTRs | Coal Contracts | Total | ||||||||||||||
Balance at the beginning of period | $ | 1.2 | $ | (2.5 | ) | $ | (1.3 | ) | |||||||||
Net realized gains included in earnings | 0.2 | — | 0.2 | ||||||||||||||
Net unrealized gains recorded as regulatory assets or liabilities | 0.4 | (1.6 | ) | (1.2 | ) | ||||||||||||
Purchases | 4.3 | — | 4.3 | ||||||||||||||
Settlements | (4.2 | ) | 0.7 | (3.5 | ) | ||||||||||||
Net transfers out of Level 3 | — | 1.2 | 1.2 | ||||||||||||||
Balance at the end of period | $ | 1.9 | $ | (2.2 | ) | $ | (0.3 | ) | |||||||||
2013 | |||||||||||||||||
(Millions) | FTRs | Coal Contracts | Total | ||||||||||||||
Balance at the beginning of period | $ | 1.1 | $ | (6.5 | ) | $ | (5.4 | ) | |||||||||
Net realized gains included in earnings | 3 | — | 3 | ||||||||||||||
Net unrealized (losses) gains recorded as regulatory assets or liabilities | (0.1 | ) | 0.4 | 0.3 | |||||||||||||
Purchases | 3.2 | — | 3.2 | ||||||||||||||
Sales | (0.2 | ) | — | (0.2 | ) | ||||||||||||
Settlements | (5.8 | ) | 3.6 | (2.2 | ) | ||||||||||||
Balance at the end of period | $ | 1.2 | $ | (2.5 | ) | $ | (1.3 | ) | |||||||||
2012 | |||||||||||||||||
(Millions) | FTRs | Coal Contracts | Total | ||||||||||||||
Balance at the beginning of period | $ | 1.2 | $ | (6.9 | ) | $ | (5.7 | ) | |||||||||
Net realized gains included in earnings | 1.8 | — | 1.8 | ||||||||||||||
Net unrealized losses (gains) recorded as regulatory assets or liabilities | (0.1 | ) | 5.8 | 5.7 | |||||||||||||
Purchases | 2.8 | — | 2.8 | ||||||||||||||
Sales | (0.1 | ) | — | (0.1 | ) | ||||||||||||
Settlements | (4.5 | ) | (5.4 | ) | (9.9 | ) | |||||||||||
Balance at the end of period | $ | 1.1 | $ | (6.5 | ) | $ | (5.4 | ) | |||||||||
Unrealized gains and losses on FTRs and coal contracts are deferred as regulatory assets or liabilities. Therefore, these fair value measurements have no impact on earnings. Realized gains and losses on FTRs, as well as the related transmission congestion costs, are recorded in cost of fuel, natural gas, and purchased power on the statements of income. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The following table shows the financial instruments included on our balance sheets that are not recorded at fair value: | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(Millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Long-term debt | $ | 1,174.50 | $ | 1,286.20 | $ | 1,174.50 | $ | 1,176.50 | |||||||||
Long-term debt to parent | 5.4 | 5.7 | 6.3 | 7.1 | |||||||||||||
Preferred stock | 51.2 | 52 | 51.2 | 61.4 | |||||||||||||
REGULATORY_ENVIRONMENT
REGULATORY ENVIRONMENT | 12 Months Ended |
Dec. 31, 2014 | |
Regulated Operations [Abstract] | |
REGULATORY ENVIRONMENT | Regulatory Environment |
Wisconsin | |
2015 Rates | |
In December 2014, the PSCW issued a final written order, effective January 1, 2015. It authorized a net retail electric rate increase of $24.6 million and a net retail natural gas rate decrease of $15.4 million, reflecting a 10.20% return on common equity. The order also included a common equity ratio of 50.28% in our regulatory capital structure. The PSCW approved a change in rate design for us, which includes higher fixed charges to better match the related fixed costs of providing service. The retail electric rate increase included recovery of 2013 deferred costs related to the acquisition of the Fox Energy Center. We also received approval from the PSCW to defer and amortize the undepreciated book value of the retired plant associated with Pulliam 5 and 6 and Weston 1 starting with the actual retirement date in 2015 and concluding when the balance is fully amortized. See Note 15, Commitments and Contingencies, for more information. In addition, the PSCW will allow escrow treatment for ATC and MISO network transmission expenses for 2015 and 2016. This allows us to defer as a regulatory asset or liability the differences between actual transmission expenses and those included in rates. Finally, the PSCW ordered that 2015 fuel costs should continue to be monitored using a two percent tolerance window. The retail natural gas rate decrease included a refund to customers in 2015 of the 2013 decoupling over-collections. | |
2014 Rates | |
In December 2013, the PSCW issued a final written order, effective January 1, 2014. It authorized a net retail electric rate decrease of $12.8 million and a net retail natural gas rate increase of $4.0 million, reflecting a 10.20% return on common equity. The order also included a common equity ratio of 50.14% in our regulatory capital structure. The retail electric rate impact consisted of a rate increase, including recovery of the difference between the 2012 fuel refund and the 2013 rate increase discussed below, entirely offset by a portion of estimated fuel cost over-collections from customers in 2013. Retail electric rates were further decreased by 2012 decoupling over-collections to be returned to customers in 2014. The retail natural gas rate impact consisted of a rate decrease, which was more than offset by the positive impact of 2012 decoupling under-collections to be recovered from customers in 2014. Both the retail electric and retail natural gas rate changes included the recovery of pension and other employee benefit increases that were deferred in the 2013 rate case, as discussed below. The PSCW also authorized the recovery of prudently incurred 2014 environmental mitigation project costs related to compliance with a Consent Decree signed in January 2013 related to the Pulliam and Weston sites. See Note 15, Commitments and Contingencies, for more information. Additionally, the order required us to terminate our existing decoupling mechanism, beginning January 1, 2014. | |
2013 Rates | |
In December 2012, the PSCW issued a final written order, effective January 1, 2013. The order included a $28.5 million retail electric rate increase, partially offset by the actual 2012 fuel refund of $20.5 million. The difference between the 2012 fuel refund and the rate increase was deferred for recovery in 2014 rates. As a result, there was no change to customers' 2013 retail electric rates. The order also included a $3.4 million retail natural gas rate decrease. The order reflected a 10.30% return on common equity and a common equity ratio of 51.61% in our regulatory capital structure. The rate changes included deferrals of $7.3 million for retail electric and $2.1 million for retail natural gas of pension and other employee benefit costs that are being recovered in 2014 rates. In addition, we were authorized recovery of $5.9 million related to income tax amounts previously expensed due to the Federal Health Care Reform Act. As a result, this amount was recorded as a regulatory asset in 2012, and recovery from customers began in 2013. The order also authorized the recovery of direct Cross State Air Pollution Rule costs incurred through the end of 2012. Lastly, the order authorized us to switch from production tax credits to Section 1603 Grants for the Crane Creek wind project. | |
A decoupling mechanism for natural gas and electric residential and small commercial and industrial customers was approved on a pilot basis as part of the order. The mechanism was based on total rate case-approved margins, rather than being calculated on a per-customer basis. The mechanism did not cover all customer classes, and it included an annual $14.0 million cap for electric service and an annual $8.0 million cap for natural gas service. Amounts recoverable from or refundable to customers were subject to these caps. | |
Michigan | |
2015 Rate Case | |
In October 2014, we filed an application with the MPSC to increase retail electric rates $5.7 million, with interim rates expected to be effective in April 2015. Our request reflected a 10.60% return on common equity and a target common equity ratio of 50.48% in our regulatory capital structure. The proposed retail electric rate increase was primarily driven by the 2013 acquisition of the Fox Energy Center as well as other capital investments associated with the Crane Creek wind farm and environmental upgrades at generating plants. Expenses are expected to increase for line clearance, customer relations, uncollectible expenses, injuries and damages, and general inflation. The proposal included annual rate increases to be implemented over a three-year period. |
MISCELLANEOUS_INCOME
MISCELLANEOUS INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
MISCELLANEOUS INCOME | Miscellaneous Income | ||||||||||||
Total miscellaneous income was as follows: | |||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Equity portion of AFUDC | $ | 11 | $ | 9.9 | $ | 2.6 | |||||||
Earnings from equity method investments | 10.3 | 11.3 | 11 | ||||||||||
Key executive life insurance for retired employees | 1.6 | 1.1 | 1.1 | ||||||||||
Coal transportation services | 1 | 1.2 | 0.9 | ||||||||||
Other | 0.5 | — | 0.1 | ||||||||||
Total miscellaneous income | $ | 24.4 | $ | 23.5 | $ | 15.7 | |||||||
SEGMENTS_OF_BUSINESS
SEGMENTS OF BUSINESS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
SEGMENTS OF BUSINESS | Segments of Business | ||||||||||||||||||||||||
At December 31, 2014, we reported three segments. We manage our reportable segments separately due to their different operating and regulatory environments. Our principal business segments are our electric utility operations and the natural gas utility operations. The other segment includes nonutility activities, as well as equity earnings from our investments in WRPC and WPS Investments, LLC, which holds an interest in ATC. All of our operations and assets are located within the United States. The table below presents information related to our reportable segments: | |||||||||||||||||||||||||
Regulated Utilities | |||||||||||||||||||||||||
2014 (Millions) | Electric Utility | Natural Gas Utility | Total Utility | Other | Reconciling | WPS | |||||||||||||||||||
Eliminations | Consolidated | ||||||||||||||||||||||||
Income Statement | |||||||||||||||||||||||||
External revenues | $ | 1,222.40 | $ | 459.9 | $ | 1,682.30 | $ | — | $ | — | $ | 1,682.30 | |||||||||||||
Intersegment revenues | — | 12.4 | 12.4 | 1.4 | (13.8 | ) | — | ||||||||||||||||||
Depreciation and amortization expense | 97.4 | 16.2 | 113.6 | 0.6 | (0.5 | ) | 113.7 | ||||||||||||||||||
Miscellaneous income | 11.1 | 0.4 | 11.5 | 12.9 | — | 24.4 | |||||||||||||||||||
Interest expense | 45.1 | 10.2 | 55.3 | 2.1 | — | 57.4 | |||||||||||||||||||
Provision for income taxes | 64.1 | 16.6 | 80.7 | 4 | — | 84.7 | |||||||||||||||||||
Preferred stock dividend requirements | (2.6 | ) | (0.5 | ) | (3.1 | ) | — | — | (3.1 | ) | |||||||||||||||
Net income attributed to common shareholder | 104.7 | 25.7 | 130.4 | 7.2 | — | 137.6 | |||||||||||||||||||
Total assets | 3,511.00 | 682.3 | 4,193.30 | 85.4 | — | 4,278.70 | |||||||||||||||||||
Cash expenditures for long-lived assets | 279.3 | 49.8 | 329.1 | — | — | 329.1 | |||||||||||||||||||
Regulated Utilities | |||||||||||||||||||||||||
2013 (Millions) | Electric | Natural Gas Utility | Total Utility | Other | Reconciling | WPS | |||||||||||||||||||
Utility | Eliminations | Consolidated | |||||||||||||||||||||||
Income Statement | |||||||||||||||||||||||||
External revenues | $ | 1,241.80 | $ | 337.5 | $ | 1,579.30 | $ | — | $ | — | $ | 1,579.30 | |||||||||||||
Intersegment revenues | — | 10.9 | 10.9 | 1.4 | (12.3 | ) | — | ||||||||||||||||||
Depreciation and amortization expense | 90.5 | 15.6 | 106.1 | 0.6 | (0.5 | ) | 106.2 | ||||||||||||||||||
Miscellaneous income | 9.9 | 0.2 | 10.1 | 13.4 | — | 23.5 | |||||||||||||||||||
Interest expense | 33 | 8.5 | 41.5 | 2.2 | — | 43.7 | |||||||||||||||||||
Provision for income taxes | 61.6 | 16.1 | 77.7 | 4.2 | — | 81.9 | |||||||||||||||||||
Preferred stock dividend requirements | (2.5 | ) | (0.6 | ) | (3.1 | ) | — | — | (3.1 | ) | |||||||||||||||
Net income attributed to common shareholder | 102.3 | 25 | 127.3 | 7.5 | — | 134.8 | |||||||||||||||||||
Total assets | 3,241.80 | 633.8 | 3,875.60 | 85.7 | — | 3,961.30 | |||||||||||||||||||
Cash expenditures for long-lived assets | 595.5 | 37.7 | 633.2 | — | — | 633.2 | |||||||||||||||||||
Regulated Utilities | |||||||||||||||||||||||||
2012 (Millions) | Electric | Natural Gas Utility | Total Utility | Other | Reconciling | WPS | |||||||||||||||||||
Utility | Eliminations | Consolidated | |||||||||||||||||||||||
Income Statement | |||||||||||||||||||||||||
External revenues | $ | 1,212.00 | $ | 287.2 | $ | 1,499.20 | $ | — | $ | — | $ | 1,499.20 | |||||||||||||
Intersegment revenues | — | 9.2 | 9.2 | 1.4 | (10.6 | ) | — | ||||||||||||||||||
Depreciation and amortization expense | 81.1 | 15 | 96.1 | 0.6 | (0.5 | ) | 96.2 | ||||||||||||||||||
Miscellaneous income | 2.6 | 0.1 | 2.7 | 13 | — | 15.7 | |||||||||||||||||||
Interest expense | 32.4 | 7.9 | 40.3 | 2.2 | — | 42.5 | |||||||||||||||||||
Provision for income taxes | 44.6 | 14.5 | 59.1 | 3.5 | — | 62.6 | |||||||||||||||||||
Preferred stock dividend requirements | (2.5 | ) | (0.6 | ) | (3.1 | ) | — | — | (3.1 | ) | |||||||||||||||
Net income attributed to common shareholder | 99.1 | 24.9 | 124 | 7.7 | — | 131.7 | |||||||||||||||||||
Total assets | 2,747.50 | 668.2 | 3,415.70 | 106.2 | — | 3,521.90 | |||||||||||||||||||
Cash expenditures for long-lived assets | 149.4 | 30.1 | 179.5 | — | — | 179.5 | |||||||||||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
RELATED PARTY TRANSACTIONS | Related Party Transactions | ||||||||||||
We and our subsidiary, WPS Leasing, routinely enter into transactions with related parties, including Integrys Energy Group, its subsidiaries, and other entities in which we have material interests. | |||||||||||||
We provide and receive services, property, and other items of value to and from our parent, Integrys Energy Group, and other subsidiaries of Integrys Energy Group. Effective January 1, 2014, after approval by the PSCW and other state commissions, a new affiliated interest agreement (Non-IBS AIA) went into effect and replaced certain prior agreements. It governs the provision and receipt of services by Integrys Energy Group subsidiaries, except that IBS will continue to provide services only under the existing IBS affiliated interest agreement (IBS AIA). Services under the Non-IBS AIA are subject to various pricing methodologies. All services provided by any regulated subsidiary to another regulated subsidiary are priced at cost. All services provided by any regulated subsidiary to any nonregulated subsidiary are priced at the greater of cost or fair market value. All services provided by any nonregulated subsidiary to any regulated subsidiary are priced at the lesser of cost or fair market value. All services provided by any regulated or nonregulated subsidiary to IBS are priced at cost. | |||||||||||||
IBS provides 15 categories of services (including financial, human resource, and administrative services) to us pursuant to the IBS AIA, which has been approved, or from which we have been granted appropriate waivers, by the appropriate regulators, including the PSCW. As required by FERC regulations for centralized service companies, IBS renders services at cost. The PSCW must be notified prior to making changes to the services offered under and the allocation methods specified in the IBS AIA. Other modifications or amendments to the IBS AIA would require PSCW approval. Recovery of allocated costs is addressed in our rate cases. | |||||||||||||
We provide services to ATC for its transmission facilities under several agreements approved by the PSCW. Services are billed to ATC under this agreement at our fully allocated cost. | |||||||||||||
We provide services to WRPC under an operating agreement approved by the PSCW. We are also under a service agreement with WRPC under which either party may be a service provider. Services are billed to WRPC under these agreements at our fully allocated cost. | |||||||||||||
The table below includes information summarizing transactions entered into with related parties as of: | |||||||||||||
(Millions) | 31-Dec-14 | 31-Dec-13 | |||||||||||
Notes payable * | |||||||||||||
Integrys Energy Group | $ | 5.4 | $ | 6.3 | |||||||||
Accounts Payable | |||||||||||||
ATC | 8.2 | 10.4 | |||||||||||
Liability related to income tax allocation | |||||||||||||
Integrys Energy Group | 6.1 | 6.7 | |||||||||||
* | WPS Leasing, our consolidated subsidiary, has a note payable to our parent company, Integrys Energy Group. At December 31, 2014, the current portion of the note payable was $2.5 million. | ||||||||||||
The following table shows activity associated with related party transactions: | |||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Electric transactions | |||||||||||||
Sales to UPPCO (1) | $ | 15.3 | $ | 22.8 | $ | 22.2 | |||||||
Sales to Integrys Transportation Fuels, LLC | 0.1 | — | — | ||||||||||
Natural gas transactions (2) | |||||||||||||
Sales to IES | 0.6 | 0.5 | 0.6 | ||||||||||
Purchases from IES | 2.5 | 0.9 | 0.7 | ||||||||||
Interest expense (3) | |||||||||||||
Integrys Energy Group | 0.5 | 0.5 | 0.5 | ||||||||||
Transactions with equity-method investees | |||||||||||||
Charges from ATC for network transmission services | 99 | 98.4 | 94.2 | ||||||||||
Charges to ATC for services and construction | 8.6 | 9.5 | 10.4 | ||||||||||
Net proceeds from WRPC sales of energy to MISO | — | — | 2.9 | ||||||||||
Purchases of energy from WRPC | 3.7 | 3.7 | 5 | ||||||||||
Charges to WRPC for operations | 1.4 | 0.9 | 0.8 | ||||||||||
Equity earnings from WPS Investments, LLC (4) | 9.5 | 10.2 | 10.2 | ||||||||||
(1) | Includes sales through the date of the sale of UPPCO in August 2014, by Integrys Energy Group. | ||||||||||||
(2) | Includes sales and purchases through the date of the sale of IES in November 2014, by Integrys Energy Group. | ||||||||||||
(3) | WPS Leasing, our consolidated subsidiary, has a note payable to our parent company, Integrys Energy Group. | ||||||||||||
(4) | WPS Investments, LLC is a consolidated subsidiary of Integrys Energy Group that is jointly owned by Integrys Energy Group and us. At December 31, 2014, we had an 10.98% interest in WPS Investments accounted for under the equity method. Our ownership percentage has continued to decrease as additional equity contributions are made by Integrys Energy Group to WPS Investments. |
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | Quarterly Financial Information (Unaudited) | ||||||||||||||||||||
(Millions) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||||||||||||
2014 | |||||||||||||||||||||
Operating revenues | $ | 555.7 | $ | 358.8 | $ | 370.4 | $ | 397.4 | $ | 1,682.30 | |||||||||||
Operating income | 87.6 | 36.5 | 77.9 | 56.4 | 258.4 | ||||||||||||||||
Net income attributed to common shareholder | 50.3 | 17.1 | 42.2 | 28 | $ | 137.6 | |||||||||||||||
2013 | |||||||||||||||||||||
Operating revenues | $ | 433.4 | $ | 367.8 | $ | 371.9 | $ | 406.2 | $ | 1,579.30 | |||||||||||
Operating income | 77.4 | 46.9 | 65.2 | 50.5 | 240 | ||||||||||||||||
Net income attributed to common shareholder | 44.6 | 25.9 | 37 | 27.3 | 134.8 | ||||||||||||||||
Because of various factors, the quarterly results of operations are not necessarily comparable. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Valuation and Qualifying Accounts | SCHEDULE II | ||||||||||||||||
WISCONSIN PUBLIC SERVICE CORPORATION | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||
Years Ended December 31, 2014, 2013, and 2012 | |||||||||||||||||
(In Millions) | |||||||||||||||||
Fiscal Year | Balance at Beginning of Year | Charged to Expense (1) | Deductions (2) | Balance at End | |||||||||||||
of Year | |||||||||||||||||
2012 | $ | 3 | $ | 5.7 | $ | (6.2 | ) | $ | 2.5 | ||||||||
2013 | $ | 2.5 | $ | 5.2 | $ | (5.2 | ) | $ | 2.5 | ||||||||
2014 | $ | 2.5 | $ | 7.3 | $ | (6.6 | ) | $ | 3.2 | ||||||||
(1) | Net of recoveries. | ||||||||||||||||
(2) | Represents amounts written off to the reserve, net of adjustments to regulatory assets. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Nature of operations | (a) Nature of Operations—We are an electric and natural gas utility company, serving customers in northeastern Wisconsin and Michigan's Upper Peninsula. We are subject to the jurisdiction of, and regulation by, the PSCW and the MPSC, which have general supervisory and regulatory powers over virtually all phases of the public utility industry in Wisconsin and Michigan, respectively. We are also subject to the jurisdiction of the FERC, which regulates our natural gas pipelines and wholesale electric rates. | ||||||||||||
Basis of presentation | (b) Basis of Presentation—As used in these notes, the term “financial statements” refers to the consolidated financial statements. This includes the consolidated statements of income, consolidated balance sheets, consolidated statements of capitalization, consolidated statements of common shareholder's equity, and consolidated statements of cash flows, unless otherwise noted. | ||||||||||||
At December 31, 2014, we had one wholly owned subsidiary, WPS Leasing. The financial statements include our accounts and the accounts of our wholly owned subsidiary, after eliminating intercompany transactions and balances. These financial statements also reflect our proportionate interests in certain jointly owned utility facilities. The cost method of accounting is used for investments when we do not have significant influence over the operating and financial policies of the investee. Investments in businesses not controlled by us, but over which we have significant influence regarding the operating and financial policies of the investee, are accounted for using the equity method. | |||||||||||||
Use of estimates | (c) Use of Estimates—We prepare our financial statements in conformity with GAAP. We make estimates and assumptions that affect assets, liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. | ||||||||||||
Cash and cash equivalents | (d) Cash and Cash Equivalents—Short-term investments with an original maturity of three months or less are reported as cash equivalents. | ||||||||||||
Revenues and Customer Receivables | (e) Revenues and Customer Receivables—Revenues related to the sale of energy are recognized when service is provided or energy is delivered to customers. We accrue estimated amounts of revenues for services provided or energy delivered but not yet billed to customers. Estimated unbilled revenues are calculated using a variety of judgments and assumptions related to customer class, contracted rates, weather, and customer use. At December 31, 2014, and 2013, our unbilled revenues were $72.3 million and $79.0 million, respectively. | ||||||||||||
We present revenues net of pass-through taxes on the income statements. | |||||||||||||
Below is a summary of the significant mechanisms we had in place in 2014 that allowed us to recover or refund changes in prudently incurred costs from rate case-approved amounts: | |||||||||||||
• | Fuel and purchased power costs were recovered from customers on a one-for-one basis by our wholesale electric operations and Michigan retail electric operations. | ||||||||||||
• | Our Wisconsin retail electric operations used a "fuel window" mechanism to recover fuel and purchased power costs. Under the fuel window rule, a deferral is required for under or over-collections of actual fuel and purchased power costs that exceed a 2% price variance from the costs included in the rates charged to customers. We monitor the deferral of these costs to ensure that it does not cause us to earn a greater return on common equity than authorized by the PSCW. | ||||||||||||
• | Our rates included a one-for-one recovery mechanism for natural gas commodity costs. | ||||||||||||
Revenues are also impacted by other accounting policies related to our participation in the MISO market. We sell and purchase power in the MISO market. If we were a net seller in a particular hour, the net amount was reported as revenue. If we were a net purchaser in a particular hour, the net amount was recorded as cost of fuel, natural gas, and purchased power on the income statements. | |||||||||||||
We provide regulated electric and natural gas service to customers in northeastern Wisconsin and Michigan. The geographic concentration of our customers did not contribute significantly to our overall exposure to credit risk. We periodically review customers' credit ratings, financial statements, and historical payment performance and require them to provide collateral or other security as needed. As a result, we did not have any significant concentrations of credit risk at December 31, 2014. In addition, there were no customers that accounted for more than 10% of our revenues for the year ended December 31, 2014. | |||||||||||||
Inventories | (f) Inventories—Inventories consist of materials and supplies, emission allowances, natural gas in storage, and other fossil fuels, including coal. Average cost is used to value materials and supplies, emission allowances, fossil fuels, and natural gas in storage. | ||||||||||||
Risk Management Activities | (g) Risk Management Activities—As part of our regular operations, we enter into contracts, including options, futures, forwards, and other contractual commitments, to manage changes in commodity prices. See Note 5, Risk Management Activities, for more information. Derivative instruments are entered into in accordance with the terms of the risk management policies approved by our Board of Directors and the PSCW or MPSC. | ||||||||||||
All derivatives are recognized on the balance sheets at their fair value unless they qualify for the normal purchases and sales exception, and are so designated. We continually assess our contracts designated as normal and will discontinue the treatment of these contracts as normal if the required criteria are no longer met. Because most of our energy-related derivatives qualify for regulatory deferral, management believes any gains or losses resulting from the eventual settlement of derivative instruments will be refunded to or collected from customers in rates. As such, any changes in the fair value of these derivatives recorded as either risk management assets or liabilities are offset with regulatory liabilities or assets, as appropriate. | |||||||||||||
We classify derivative assets and liabilities as current or long-term on the balance sheets based upon the maturities of the underlying contracts. We record unrealized gains and losses on derivative instruments that do not qualify for regulatory deferral as a component of our cost of fuel, natural gas, and purchased power or operating and maintenance expense, depending on the nature of the transaction. Cash flows from derivative activities are presented in the same category as the item being hedged within operating activities on the statements of cash flows. | |||||||||||||
Derivative accounting rules provide the option to present certain asset and liability derivative positions net on the balance sheets and to net the related cash collateral against these net derivative positions. We elected not to net these items. On the balance sheets, cash collateral provided to others is reflected in other current assets, and cash collateral received from others is reflected in other current liabilities. | |||||||||||||
Emission Allowances | (h) Emission Allowances—We account for emission allowances as inventory at average cost by vintage year. Charges to income result when allowances are used in operating our generation plants. These charges are included in the costs subject to the fuel window rules. Gains on sales of allowances are returned to ratepayers. | ||||||||||||
Property, plant, and equipment | (i) Property, Plant, and Equipment—Utility plant is stated at cost, including any associated AFUDC and asset retirement costs. The costs of renewals and betterments of units of property (as distinguished from minor items of property) are capitalized as additions to the utility plant accounts. Maintenance and repair costs, as well as replacement and renewal costs associated with items not qualifying as units of property, are recorded as operating expenses. We record a regulatory liability for cost of removal accruals, which are included in rates. Actual removal costs are charged against the regulatory liability as incurred. Except for land, no gains or losses are recognized in connection with ordinary retirements of utility property units. Ordinary retirements, sales, and other disposals of units of property at the utilities are charged to accumulated depreciation at cost, less salvage value. When it becomes probable that an operating unit will be retired in the near future and substantially in advance of its expected useful life, the cost and corresponding accumulated depreciation of the asset is classified as plant to be retired, net within property, plant, and equipment. | ||||||||||||
We record straight-line depreciation expense over the estimated useful life of utility property, using depreciation rates approved by the applicable regulators. Annual utility composite depreciation rates are shown below: | |||||||||||||
Annual Utility Composite Depreciation Rates | 2014 | 2013 | 2012 | ||||||||||
Electric | 2.73 | % | 2.79 | % | 2.87 | % | |||||||
Natural gas | 2.17 | % | 2.19 | % | 2.21 | % | |||||||
We capitalize certain costs related to software developed or obtained for internal use and amortize those costs to operating expense over the estimated useful life of the related software, which ranges from 3 to 5 years. If software is retired prior to being fully amortized, the difference is recorded as a loss on the income statement. | |||||||||||||
We receive grants related to certain renewable generation projects under federal and state grant programs. Our policy is to reduce the depreciable basis of the qualifying project by the grant received. We then reflect the benefit of the grant in income over the life of the related renewable generation project through a reduction in depreciation expense. | |||||||||||||
See Note 6, Property, Plant, and Equipment, for more information. | |||||||||||||
AFUDC | (j) AFUDC—We capitalize the cost of funds used for construction using a calculation that includes both internal equity and external debt components, as required by regulatory accounting. The internal equity component is accounted for as other income. The external debt component is accounted for as a decrease to interest expense. | ||||||||||||
Approximately 50% of our retail jurisdictional construction work in progress expenditures are subject to the AFUDC calculation. For 2014, our average AFUDC retail rate was 8.08%, and our average AFUDC wholesale rate was 6.99%. | |||||||||||||
Our total AFUDC was as follows for the years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Allowance for equity funds used during construction | $ | 11 | $ | 9.9 | $ | 2.6 | |||||||
Allowance for borrowed funds used during construction | 4.6 | 3.8 | 0.9 | ||||||||||
Regulatory Assets and Liabilities | (k) Regulatory Assets and Liabilities—Regulatory assets represent probable future revenue associated with certain costs or liabilities that have been deferred and are expected to be recovered through rates charged to customers. Regulatory liabilities represent amounts that are expected to be refunded to customers in future rates or amounts collected in rates for future costs. Recovery or refund of regulatory assets and liabilities is based on specific periods determined by the regulators or occurs over the normal operating period of the assets and liabilities to which they relate. If at any reporting date a previously recorded regulatory asset is no longer probable of recovery, the regulatory asset is reduced to the amount considered probable of recovery with the reduction charged to expense in the year the determination is made. See Note 8, Regulatory Assets and Liabilities, for more information. | ||||||||||||
Goodwill | (l) Goodwill—Goodwill is subject to an annual impairment test. Our natural gas utility reporting unit contains goodwill and performs its annual goodwill impairment test during the second quarter of each year. Interim impairment tests are performed when impairment indicators are present. The carrying amount of the reporting unit's goodwill is considered not recoverable if the carrying amount of the reporting unit exceeds the reporting unit's fair value. An impairment loss is recorded for the excess of the carrying amount of the goodwill over its implied fair value. | ||||||||||||
Retirement of Debt | (m) Retirement of Debt—Any call premiums or unamortized expenses associated with refinancing utility debt obligations are amortized consistent with regulatory treatment of those items. Any gains or losses resulting from the retirement of utility debt that is not refinanced are amortized over the remaining life of the original debt. | ||||||||||||
Asset retirement obligations | (n) Asset Retirement Obligations—We recognize at fair value legal obligations associated with the retirement of tangible long-lived assets that result from the acquisition, construction or development, and/or normal operation of the assets. A liability is recorded for these obligations as long as the fair value can be reasonably estimated, even if the timing or method of settling the obligation is unknown. The asset retirement obligations are accreted using a credit-adjusted risk-free interest rate commensurate with the expected settlement dates of the asset retirement obligations; this rate is determined at the date the obligation is incurred. The associated retirement costs are capitalized as part of the related long-lived assets and are depreciated over the useful lives of the assets. Subsequent changes resulting from revisions to the timing or the amount of the original estimate of undiscounted cash flows are recognized as an increase or a decrease in the carrying amount of the liability and the associated retirement cost. See Note 13, Asset Retirement Obligations, for more information. | ||||||||||||
Environmental Remediation Costs | (o) Environmental Remediation Costs — We are subject to federal and state environmental laws and regulations that in the future may require us to pay for environmental remediation at sites where we have been, or may be, identified as a potentially responsible party (PRP). Loss contingencies may exist for the remediation of hazardous substances at various potential sites, including former manufactured gas plant sites. See Note 15, Commitments and Contingencies, for more information on our manufactured gas plant sites. | ||||||||||||
We record environmental remediation liabilities when site assessments indicate remediation is probable and we can reasonably estimate the loss or a range of possible losses. The estimate includes both our share of the liability and any additional amounts that will not be paid by other PRPs or the government. When possible, we estimate costs using site-specific information but also consider historical experience for costs incurred at similar sites. Remediation efforts for a particular site generally extend over a period of several years. During this period, the laws governing the remediation process may change, as well as site conditions, potentially affecting the cost of remediation. | |||||||||||||
We have received approval to defer certain environmental remediation costs, as well as estimated future costs, through a regulatory asset. The recovery of deferred costs is subject to the respective Commission's approval. | |||||||||||||
We review our estimated costs of remediation annually for our manufactured gas plant sites and adjust the liabilities and related regulatory assets, as appropriate, to reflect the new cost estimates. Any material changes in cost estimates are adjusted throughout the year. | |||||||||||||
Income taxes | (p) Income Taxes—We and our subsidiary are included in the consolidated United States income tax return filed by Integrys Energy Group. We and our subsidiary are parties to a federal and state tax allocation arrangement with Integrys Energy Group and its subsidiaries under which each entity determines its provision for income taxes on a stand-alone basis. We settle the intercompany liabilities at the time payments are made to the applicable taxing authority. See Note 25, Related Party Transactions, for more information regarding intercompany payables or receivables related to income taxes. | ||||||||||||
Deferred income taxes have been recorded to recognize the expected future tax consequences of events that have been included in the financial statements by using currently enacted tax rates for the differences between the income tax basis of assets and liabilities and the basis reported in the financial statements. We record valuation allowances for deferred income tax assets unless it is more likely than not that the benefit will be realized in the future. We defer certain adjustments made to income taxes that will impact future rates and record regulatory assets or liabilities related to these adjustments. | |||||||||||||
We use the deferral method of accounting for investment tax credits (ITCs). Under this method, we record the ITCs as deferred credits and amortize such credits as a reduction to the provision for income taxes over the life of the asset that generated the ITCs. ITCs that do not reduce income taxes payable for the current year are eligible for carryover and recognized as a deferred income tax asset. | |||||||||||||
We report interest and penalties accrued related to income taxes as a component of provision for income taxes in the income statements, as well as regulatory assets or regulatory liabilities in the balance sheets. | |||||||||||||
We record excess tax benefits from stock-based compensation awards when the actual tax benefit is realized. We follow the tax law ordering approach to determine when the tax benefit has been realized. Under this approach, the tax benefit is realized in the year it reduces taxable income. Current year stock-based compensation deductions are assumed to be used before any net operating loss carryforwards. | |||||||||||||
See Note 14, Income Taxes, for more information regarding our accounting for income taxes. | |||||||||||||
Guarantees | (q) Guarantees—We follow the guidance of the Guarantees Topic of the FASB ASC, which requires that the guarantor recognize, at the inception of the guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee. See Note 19, Guarantees, for more information. | ||||||||||||
Employee Benefits | (r) Employee Benefits—The costs of pension and other postretirement benefits are expensed over the periods during which employees render service. Our transition obligation related to other postretirement benefit plans was recognized over a 20-year period that began in 1993, and ended in 2012. In computing the expected return on plan assets, we use a market-related value of plan assets, which is a calculated value approach. Changes in realized and unrealized investment gains and losses are recognized over the subsequent five years for plans sponsored by us, while differences between actual investment returns and the expected return on plan assets are recognized over a five-year period for the Integrys Energy Group Retirement Plan, sponsored by IBS. The benefit costs associated with employee benefit plans are allocated among Integrys Energy Group's subsidiaries based on current employment status and actuarial calculations, as applicable. Our regulators allow recovery in rates for the net periodic benefit cost calculated under GAAP. | ||||||||||||
We recognize the funded status of defined benefit postretirement plans on the balance sheet, and recognize changes in the plans' funded status in the year in which the changes occur. We record changes in the funded status to regulatory asset or liability accounts, pursuant to the Regulated Operations Topic of the FASB ASC. | |||||||||||||
We account for our participation in benefit plans sponsored by IBS and other postretirement benefit plans we sponsor as multiple employer plans. Under affiliate agreements, we are responsible for our share of plan costs and obligations and are entitled to our share of plan assets. Accordingly, we account for our pro rata share of these plans as our own plan. | |||||||||||||
See Note 16, Employee Benefit Plans, for more information. | |||||||||||||
Stock-Based Compensation | (s) Stock-Based Compensation—Our employees may be granted awards under Integrys Energy Group’s stock-based compensation plans. At December 31, 2014, stock options, performance stock rights, and restricted share units were outstanding under various plans. Compensation cost associated with these awards is allocated to us based on the percentages used for allocation of the award recipients’ labor costs. | ||||||||||||
Stock Options | |||||||||||||
All stock options granted to our employees are for the option to purchase shares of Integrys Energy Group common stock. Stock options have a term not longer than 10 years. The exercise price of each stock option is equal to the fair market value of the stock on the date the stock option is granted. | |||||||||||||
Effective October 24, 2014, Integrys Energy Group's Board of Directors accelerated the vesting of all unvested stock options held by active employees in order to mitigate the tax impacts of Section 280G of the Internal Revenue Code on us, Integrys Energy Group, and certain employees. All stock options awarded to active employees also became exercisable as of this date. For retirees, 25% of their stock options granted will continue to become exercisable each year on the anniversary of the grant date. | |||||||||||||
The fair value of stock option awards granted is estimated using a binomial lattice model. The expected term of option awards is derived from the output of the binomial lattice model and represents the period of time that options are expected to be outstanding. The risk-free interest rate is based on the United States Treasury yield curve. The expected dividend yield incorporates the current and historical dividend rate of Integrys Energy Group. The expected stock price volatility is estimated using its 10-year historical volatility. | |||||||||||||
Performance Stock Rights | |||||||||||||
Performance stock rights generally vest over a three-year performance period. For accounting purposes, awards granted to retirement-eligible employees vest over a shorter period; however, the distribution of these awards is not accelerated. Effective October 24, 2014, Integrys Energy Group's Board of Directors approved the acceleration of the distribution of certain performance stock rights held by active employees. For those performance stock rights with a performance period ending December 31, 2014, a portion of the estimated distribution was made in December 2014. This change was made to help mitigate the tax impacts of Section 280G of the Internal Revenue Code on us, Integrys Energy Group, and certain employees. | |||||||||||||
Performance stock rights are paid out in shares of Integrys Energy Group common stock, or eligible employees can elect to defer the value of their awards into the deferred compensation plan and choose among various investment options, some of which are ultimately paid out in Integrys Energy Group common stock and some of which are ultimately paid out in cash. Eligible employees can only elect to defer up to 80% of the value of their awards. The number of shares paid out is calculated by multiplying a performance percentage by the number of outstanding stock rights at the completion of the performance period. The performance percentage is based on the total shareholder return of Integrys Energy Group's common stock relative to the total shareholder return of a peer group of companies. The payout may range from 0% to 200% of target. | |||||||||||||
Performance stock rights are accounted for as either an equity award or a liability award, depending on their settlement features. Awards that can only be settled in shares of Integrys Energy Group common stock are accounted for as equity awards. Awards that an employee has elected to defer, or is still able to defer, into the deferred compensation plan are accounted for as liability awards and are recorded at fair value each reporting period. | |||||||||||||
Six months prior to the end of the performance period, employees can no longer change their election to defer the value of their performance stock rights into the deferred compensation plan. As a result, any awards not elected for deferral at this point in the performance period will be settled in Integrys Energy Group's common stock. This changes the classification of these awards from a liability award to an equity award. The change in classification is accounted for as an award modification. The fair value on the modification date is used to measure these awards for the remaining six months of the performance period. No incremental compensation expense is recorded as a result of this award modification. | |||||||||||||
The fair values of performance stock rights are estimated using a Monte Carlo valuation model. The risk-free interest rate is based on the United States Treasury yield curve. The expected dividend yield incorporates the current and historical dividend rate of Integrys Energy Group. The expected volatility is estimated using one to three years of historical data. | |||||||||||||
Restricted Share Units | |||||||||||||
Restricted share units generally have a four-year vesting period, with 25% of each award vesting on each anniversary of the grant date. For accounting purposes, awards granted to retirement-eligible employees vest over a shorter period; however, the release of shares to these employees is not accelerated. Restricted share unit recipients do not have voting rights, but they receive forfeitable Integrys Energy Group dividend equivalents in the form of additional restricted share units. | |||||||||||||
Restricted share units are accounted for as either an equity award or a liability award, depending on their settlement features. Awards that can only be settled in shares of Integrys Energy Group common stock and cannot be deferred into the deferred compensation plan are accounted for as equity awards. Eligible employees can only elect to defer up to 80% of their awards into the deferred compensation plan. Equity awards are measured based on the fair value on the grant date. Awards that an employee has elected to defer into the deferred compensation plan are accounted for as liability awards and are recorded at fair value each reporting period. | |||||||||||||
Fair Value | (t) Fair Value—A fair value measurement is required to reflect the assumptions market participants would use in pricing an asset or liability based on the best available information. | ||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We use a mid-market pricing convention (the mid-point price between bid and ask prices) as a practical measure for valuing certain derivative assets and liabilities. | |||||||||||||
Fair value accounting rules provide a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are defined as follows: | |||||||||||||
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | |||||||||||||
Level 2 - Pricing inputs are observable, either directly or indirectly, but are not quoted prices included within Level 1. Level 2 includes those financial instruments that are valued using external inputs within models or other valuation methods. | |||||||||||||
Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value. | |||||||||||||
Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||
Our risk management assets and liabilities include NYMEX futures and options, physical commodity contracts, and financial transmission rights (FTRs) used to manage transmission congestion costs in the MISO market. NYMEX contracts are valued using the NYMEX end-of-day settlement price, which is a Level 1 input. Level 2 contracts are valued based on quoted market prices received from counterparties and price index developers. The valuation for physical coal contracts is categorized in Level 3 as it is based on significant assumptions made to extrapolate prices from the last quoted period through the end of the transaction term. The valuation for FTRs is derived from historical data from MISO, which is also considered a Level 3 input. | |||||||||||||
We have established a risk oversight committee whose primary responsibility includes directly or indirectly ensuring that all valuation methods are applied in accordance with predefined policies. The development and maintenance of our forward price curves has been assigned to our risk management department, which is part of the corporate treasury function. This group is separate and distinct from the supply function. To validate the reasonableness of our fair value inputs, our risk management department compares changes in valuation and researches any significant differences in order to determine the underlying cause. Changes to the fair value inputs are made if necessary. | |||||||||||||
Derivatives are transferred between levels of the fair value hierarchy due to observable pricing becoming available as the remaining contract term becomes shorter. We recognize transfers at the value as of the end of the reporting period. | |||||||||||||
The fair values of long-term debt are estimated based on the quoted market price for the same or similar issues, or on the current rates offered to us for debt of the same remaining maturity. The fair values of preferred stock are estimated based on quoted market prices, when available, or by using a perpetual dividend discount model. The fair values of long-term debt instruments and preferred stock are categorized within Level 2 of the fair value hierarchy. Due to the short-term nature of cash and cash equivalents, accounts receivable, accounts payable, and outstanding commercial paper, the carrying amount for each such item approximates fair value. | |||||||||||||
We conduct a thorough review of fair value hierarchy classifications on a quarterly basis. | |||||||||||||
See Note 21, Fair Value, for more information. | |||||||||||||
New Accounting Pronouncements | (u) New Accounting Pronouncements— | ||||||||||||
Recently Issued Accounting Guidance Not Yet Effective | |||||||||||||
In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis." The guidance focuses on the consolidation evaluation for companies that are required to evaluate whether they should consolidate certain legal entities. This ASU eliminates the specialized guidance for limited partnerships and similar legal entities. It places more emphasis on risk of loss when determining a controlling financial interest and amends the guidance for assessing how relationships of related parties affect the consolidation analysis of variable interest entities. The guidance is effective for us for the reporting period ending March 31, 2016. We are currently evaluating the impact this guidance will have on our financial statements. | |||||||||||||
In January 2015, the FASB issued ASU 2015-01, "Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items." This guidance no longer requires or allows the disclosure of extraordinary items, net of tax, in the income statement after income from continuing operations. The guidance is effective for us for the reporting period ending March 31, 2016. We do not currently have any extraordinary items presented on the income statements. However, this guidance will eliminate the need for us to further assess whether unusual and infrequently occurring transactions qualify as an extraordinary item in the future. | |||||||||||||
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." This ASU supersedes the requirements in the Revenue Recognition Topic of the FASB ASC and most industry-specific guidance throughout the ASC. The guidance is based on the principle that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts. The guidance is effective for us for the reporting period ending March 31, 2017. The standard requires either retrospective application by restating each prior period presented in the financial statements, or modified retrospective application by recording the cumulative effect of prior reporting periods to beginning retained earnings in the year that the standard becomes effective. Management is currently evaluating the impact that the adoption of this standard will have on our financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of annual utility composite depreciation rates | Annual utility composite depreciation rates are shown below: | ||||||||||||
Annual Utility Composite Depreciation Rates | 2014 | 2013 | 2012 | ||||||||||
Electric | 2.73 | % | 2.79 | % | 2.87 | % | |||||||
Natural gas | 2.17 | % | 2.19 | % | 2.21 | % | |||||||
Schedule of total AFUDC | Our total AFUDC was as follows for the years ended December 31: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Allowance for equity funds used during construction | $ | 11 | $ | 9.9 | $ | 2.6 | |||||||
Allowance for borrowed funds used during construction | 4.6 | 3.8 | 0.9 | ||||||||||
ACQUISITION_OF_FOX_ENERGY_CENT1
ACQUISITION OF FOX ENERGY CENTER (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The purchase price was allocated based on the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition, as follows: | ||||
(Millions) | |||||
Assets acquired (1) | |||||
Inventories - materials and supplies | $ | 3 | |||
Other current assets | 0.4 | ||||
Property, plant, and equipment | 374.4 | ||||
Other long-term assets (2) | 15.6 | ||||
Total assets acquired | $ | 393.4 | |||
Liabilities assumed | |||||
Accounts payable | $ | 1.8 | |||
Total liabilities assumed | $ | 1.8 | |||
(1) | Relates to the electric utility segment. | ||||
(2) | Intangible assets recorded for contractual services agreements. See Note 9, Goodwill and Other Intangible Assets, for more information. |
RISK_MANAGEMENT_ACTIVITIES_Tab
RISK MANAGEMENT ACTIVITIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Schedule of assets and liabilities from risk management activities | The tables below show our assets and liabilities from risk management activities: | |||||||||||||||
31-Dec-14 | ||||||||||||||||
(Millions) | Balance Sheet Presentation | Assets | Liabilities | |||||||||||||
Natural gas contracts | Other Current | $ | 0.1 | $ | 2.1 | |||||||||||
Natural gas contracts | Other Long-term | — | 0.1 | |||||||||||||
FTRs | Other Current | 2.2 | 0.3 | |||||||||||||
Petroleum product contracts | Other Current | — | 1.1 | |||||||||||||
Coal contracts | Other Current | — | 2.4 | |||||||||||||
Coal contracts | Other Long-term | — | 1 | |||||||||||||
Other Current | 2.3 | 5.9 | ||||||||||||||
Other Long-term | — | 1.1 | ||||||||||||||
Total | $ | 2.3 | $ | 7 | ||||||||||||
December 31, 2013 | ||||||||||||||||
(Millions) | Balance Sheet Presentation | Assets | Liabilities | |||||||||||||
Natural gas contracts | Other Current | $ | 0.6 | $ | 0.1 | |||||||||||
FTRs | Other Current | 1.5 | 0.3 | |||||||||||||
Petroleum product contracts | Other Current | 0.1 | — | |||||||||||||
Coal contracts | Other Current | — | 1.9 | |||||||||||||
Coal contracts | Other Long-term | 0.2 | 0.8 | |||||||||||||
Other Current | 2.2 | 2.3 | ||||||||||||||
Other Long-term | 0.2 | 0.8 | ||||||||||||||
Total | $ | 2.4 | $ | 3.1 | ||||||||||||
Potential effect of netting arrangements for recognized derivative assets and liabilities | The following tables show the potential effect on our financial position of netting arrangements for recognized derivative assets and liabilities: | |||||||||||||||
31-Dec-14 | ||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | |||||||||||||
Derivative assets subject to master netting or similar arrangements | $ | 2.3 | $ | 0.4 | $ | 1.9 | ||||||||||
Derivative assets not subject to master netting or similar arrangements | — | — | ||||||||||||||
Total risk management assets | $ | 2.3 | $ | 1.9 | ||||||||||||
Derivative liabilities subject to master netting or similar arrangements | $ | 3.6 | $ | 3.6 | $ | — | ||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 3.4 | 3.4 | ||||||||||||||
Total risk management liabilities | $ | 7 | $ | 3.4 | ||||||||||||
31-Dec-13 | ||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | |||||||||||||
Derivative assets subject to master netting or similar arrangements | $ | 2.2 | $ | 0.6 | $ | 1.6 | ||||||||||
Derivative assets not subject to master netting or similar arrangements | 0.2 | 0.2 | ||||||||||||||
Total risk management assets | $ | 2.4 | $ | 1.8 | ||||||||||||
Derivative liabilities subject to master netting or similar arrangements | $ | 0.4 | $ | 0.4 | $ | — | ||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 2.7 | 2.7 | ||||||||||||||
Total risk management liabilities | $ | 3.1 | $ | 2.7 | ||||||||||||
Cash collateral positions | The following table shows our cash collateral positions: | |||||||||||||||
(Millions) | 31-Dec-14 | 31-Dec-13 | ||||||||||||||
Cash collateral provided to others related to contracts under master netting or similar arrangements | $ | 6.6 | $ | 3.1 | ||||||||||||
Cash collateral received from others related to contracts under master netting or similar arrangements | — | 0.2 | ||||||||||||||
Unrealized gains (losses) recorded related to non-hedge derivative contracts | The following table shows the unrealized gains (losses) recorded related to derivative contracts: | |||||||||||||||
(Millions) | Financial Statement Presentation | 2014 | 2013 | 2012 | ||||||||||||
Natural gas | Balance Sheet — Regulatory assets (current) | $ | (2.3 | ) | $ | 0.7 | $ | 2.2 | ||||||||
Natural gas | Balance Sheet — Regulatory liabilities (current) | (0.3 | ) | 0.3 | 0.1 | |||||||||||
Natural gas | Income Statement — Cost of fuel, natural gas, and purchased power | — | — | 0.2 | ||||||||||||
FTRs | Balance Sheet — Regulatory assets (current) | — | 0.2 | (0.1 | ) | |||||||||||
FTRs | Balance Sheet — Regulatory liabilities (current) | 0.4 | (0.3 | ) | — | |||||||||||
Petroleum | Balance Sheet — Regulatory assets (current) | (1.1 | ) | — | 0.1 | |||||||||||
Petroleum | Balance Sheet — Regulatory liabilities (current) | (0.1 | ) | 0.1 | — | |||||||||||
Coal | Balance Sheet — Regulatory assets (current) | (1.3 | ) | (0.9 | ) | (2.2 | ) | |||||||||
Coal | Balance Sheet — Regulatory assets (long-term) | (0.2 | ) | 3.5 | 0.1 | |||||||||||
Coal | Balance Sheet — Regulatory liabilities (current) | — | (0.2 | ) | 0.3 | |||||||||||
Coal | Balance Sheet — Regulatory liabilities (long-term) | (0.1 | ) | (2.0 | ) | 2.2 | ||||||||||
Notional volumes of outstanding nonhedge derivative contracts | We had the following notional volumes of outstanding derivative contracts: | |||||||||||||||
(Millions) | 31-Dec-14 | 31-Dec-13 | ||||||||||||||
Commodity | Purchases | Other Transactions | Purchases | Sales | Other Transactions | |||||||||||
Natural gas (therms) | 1,025.40 | N/A | 2,242.50 | 7 | N/A | |||||||||||
FTRs (kilowatt-hours) | N/A | 4,287.70 | N/A | N/A | 3,427.00 | |||||||||||
Petroleum products (barrels) | — | N/A | 0.1 | — | N/A | |||||||||||
Coal contract (tons) | 3 | N/A | 4.8 | — | N/A | |||||||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of property, plant, and equipment | Property, plant, and equipment consisted of the following utility and nonutility assets at December 31: | ||||||||
(Millions) | 2014 | 2013 | |||||||
Electric utility | $ | 3,587.40 | $ | 3,289.20 | |||||
Natural gas utility | 773.1 | 729.9 | |||||||
Total utility plant | 4,360.50 | 4,019.10 | |||||||
Less: Accumulated depreciation | 1,495.90 | 1,436.80 | |||||||
Net | 2,864.60 | 2,582.30 | |||||||
Construction work in progress | 248.7 | 285.2 | |||||||
Plant to be retired, net * | 12.5 | 14.4 | |||||||
Net utility plant | 3,125.80 | 2,881.90 | |||||||
Nonutility plant | 15.2 | 15.2 | |||||||
Less: Accumulated depreciation | 10 | 9.4 | |||||||
Net nonutility plant | 5.2 | 5.8 | |||||||
Total property, plant, and equipment | $ | 3,131.00 | $ | 2,887.70 | |||||
* | In connection with the Consent Decree with the EPA, we announced that the Weston 1, Pulliam 5, and Pulliam 6 generating units will be retired early. These units are currently included in rate base and we continue to depreciate them on a straight-line basis using the composite depreciation rates approved by the PSCW. The amount presented above is net of accumulated depreciation. See Note 15, Commitments and Contingencies, for more information regarding the Consent Decree. |
JOINTLY_OWNED_UTILITY_FACILITI1
JOINTLY OWNED UTILITY FACILITIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Jointly Owned Utility Plant, Net Ownership Amount [Abstract] | |||||||||||||
Schedule of our share of significant jointly owned electric generating facilities | The amounts were as follows at December 31, 2014: | ||||||||||||
(Millions, except for percentages and megawatts) | Weston 4 | Columbia Energy Center | Edgewater Unit 4 | ||||||||||
Units 1 and 2 | |||||||||||||
Ownership | 70 | % | 31.8 | % | 31.8 | % | |||||||
Our share of rated capacity (megawatts) | 374.5 | 335.2 | 105 | ||||||||||
In-service date | 2008 | 1975 and 1978 | 1969 | ||||||||||
Utility plant | $ | 581.9 | $ | 390.7 | $ | 42.9 | |||||||
Accumulated depreciation | $ | (132.6 | ) | $ | (116.2 | ) | $ | (29.6 | ) | ||||
Construction work in progress | $ | 2.7 | $ | 10.1 | $ | 0.7 | |||||||
REGULATORY_ASSETS_AND_LIABILIT1
REGULATORY ASSETS AND LIABILITIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||||
Schedule of Regulatory Assets | The following regulatory assets were reflected on our balance sheets as of December 31: | ||||||||||
(Millions) | 2014 | 2013 | See Note | ||||||||
Regulatory assets (1) | |||||||||||
Unrecognized pension and other postretirement benefit costs (3) | $ | 185.6 | $ | 130.6 | 16 | ||||||
Environmental remediation costs (net of insurance recoveries) (2) (4) | 103.8 | 80.1 | 15 | ||||||||
Termination of a tolling agreement with Fox Energy Company LLC | 44.6 | 50 | 3 | ||||||||
Income tax related items | 32.7 | 26.9 | 14 | ||||||||
Crane Creek production tax credits (5) | 32.2 | 33.6 | |||||||||
De Pere Energy Center (6) | 21.4 | 23.8 | |||||||||
Energy costs recoverable through rate adjustments (7) | 12.6 | — | |||||||||
Asset retirement obligations (2) | 5.6 | 6 | 13 | ||||||||
Derivatives (2) | 8 | 3.3 | 1(g) | ||||||||
Potential new electric generator at Fox Energy Center (8) | 3.7 | — | |||||||||
Pension and other postretirement costs recoverable through rate adjustments (2) (9) | — | 9.4 | 22 | ||||||||
Decoupling | — | 7.9 | 22 | ||||||||
Weston 3 lightning strike (2) (10) | — | 3.6 | |||||||||
Other | 8.3 | 13.5 | |||||||||
Total regulatory assets | $ | 458.5 | $ | 388.7 | |||||||
Balance Sheet Presentation | |||||||||||
Current assets | $ | 25 | $ | 46.2 | |||||||
Long-term assets | 433.5 | 342.5 | |||||||||
Total regulatory assets | $ | 458.5 | $ | 388.7 | |||||||
(1) Based on prior and current rate treatment, we believe it is probable that we will continue to recover from customers the regulatory assets described above. | |||||||||||
(2) | Regulatory assets not earning a return. | ||||||||||
(3) | Represents the unrecognized future pension and other postretirement costs resulting from actuarial gains and losses on defined benefit and other postretirement plans. We are authorized recovery of this regulatory asset over the average future remaining service life of each plan. | ||||||||||
(4) | As of December 31, 2014, we had not yet made cash expenditures for $86.3 million of these environmental remediation costs. The recovery of these costs depends on the timing of the actual expenditures. | ||||||||||
(5) | In 2012, we elected to claim and subsequently received a Section 1603 Grant for the Crane Creek wind project in lieu of the production tax credit. As a result, we reversed previously recorded production tax credits. We also reduced the depreciable basis of the qualifying facility by the amount of the grant proceeds, which will result in a reduction of depreciation and amortization expense over a 12-year period. We recorded a regulatory asset for the deferral of previously recorded production tax credits and are authorized recovery of this net regulatory asset through 2039. | ||||||||||
(6) | Prior to purchasing the De Pere Energy Center in 2002, we had a long-term power purchase contract with them that was accounted for as a capital lease. As a result of the purchase, the capital lease obligation was reversed, and the difference between the capital lease asset and the purchase price was recorded as a regulatory asset. We are authorized recovery of this regulatory asset through 2023. | ||||||||||
(7) | Represents the under-collection of electric energy costs that will be recovered from customers in the future. | ||||||||||
-8 | Represents precertification costs for the proposed building of a new 400-MW natural gas-fired, combined-cycle generating unit to be located at our Fox Energy Center site. The building of this unit is currently in the approval process with the PSCW. | ||||||||||
(9) | Represents the under-collection of pension and other postretirement costs that will be recovered from customers in the future. | ||||||||||
(10) | In 2007, a lightning strike caused significant damage to the Weston 3 generating facility. The PSCW approved the deferral of the incremental fuel and purchased power expenses, as well as the nonfuel operating and maintenance expenses incurred as a result of the outage that were not covered by insurance. We were authorized recovery of this regulatory asset through 2014. | ||||||||||
Schedule of Regulatory Liabilities | The following regulatory liabilities were reflected on our balance sheets as of December 31: | ||||||||||
(Millions) | 2014 | 2013 | See Note | ||||||||
Regulatory liabilities | |||||||||||
Removal costs (1) | $ | 243.9 | $ | 238 | |||||||
Unrecognized pension and other postretirement benefit costs (2) | 42.4 | 18.5 | 16 | ||||||||
Decoupling | 12.3 | 24.3 | 22 | ||||||||
Crane Creek depreciation deferral (3) | 8.7 | 9 | |||||||||
Energy costs refundable through rate adjustments (4) | 6 | 21.9 | |||||||||
Fox Energy Center (5) | 4.6 | 5.6 | 3 | ||||||||
Energy efficiency programs | 3.7 | 4.1 | |||||||||
Other | 2.9 | 2.9 | |||||||||
Total regulatory liabilities | $ | 324.5 | $ | 324.3 | |||||||
Balance Sheet Presentation | |||||||||||
Current liabilities | $ | 21.2 | $ | 38 | |||||||
Long-term liabilities | 303.3 | 286.3 | |||||||||
Total regulatory liabilities | $ | 324.5 | $ | 324.3 | |||||||
(1) | Represents amounts collected from customers to cover the cost of future removal of property, plant, and equipment. | ||||||||||
(2) | Represents the unrecognized future other postretirement benefit costs resulting from actuarial gains on other postretirement benefit plans. We will amortize this regulatory liability into net periodic benefit cost over the average remaining service life of each plan. | ||||||||||
(3) | Represents the book depreciation taken on the Crane Creek wind project prior to our election to claim a Section 1603 Grant for the project in lieu of the production tax credit. See more information in the regulatory assets section above. | ||||||||||
(4) | Represents the over-collection of energy costs that will be refunded to customers in the future. | ||||||||||
(5) | Represents the deferral of incremental costs associated with owning and operating the Fox Energy Center, which was purchased in March 2013. In accordance with GAAP, the deferral does not include an allowance for return on equity, which has created the net regulatory liability. This allowance was $22.8 million and $22.1 million, at December 31, 2014, and 2013, respectively. |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of identifiable intangible assets other than goodwill | Our intangible assets listed below consist of contractual service agreements that provide for major maintenance and protection against unforeseen maintenance costs related to the combustion turbine generators at the Fox Energy Center. These contractual service agreements are included in other long-term assets on the balance sheets. | ||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||||||||
(Millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Amortized intangible assets | |||||||||||||||||||||||||
Contractual service agreements | $ | 15.6 | $ | (4.3 | ) | $ | 11.3 | $ | 15.6 | $ | (1.8 | ) | $ | 13.8 | |||||||||||
Schedule of intangible asset amortization expense | The table below shows the amortization recorded during the years ended December 31: | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | |||||||||||||||||||||||
Amortization recorded in depreciation and amortization expense | $ | 2.2 | $ | 1.8 | |||||||||||||||||||||
Amortization recorded in regulatory assets | 0.3 | — | |||||||||||||||||||||||
Schedule of intangible asset amortization expense for the next five years | Amortization for the next five years is estimated to be: | ||||||||||||||||||||||||
For the Year Ending December 31 | |||||||||||||||||||||||||
(Millions) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
Amortization to be recorded in depreciation and amortization expense | $ | 2.2 | $ | 2.2 | $ | 1.7 | $ | 1.2 | $ | 1.2 | |||||||||||||||
Amortization to be recorded in regulatory assets | 1 | 1 | 0.5 | — | — | ||||||||||||||||||||
LEASES_Tables
LEASES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Schedule of future minimum rental obligations under noncancelable operating leases | Future minimum rental obligations under noncancelable operating leases are payable as follows: | ||||
Year Ending December 31 | |||||
(Millions) | Payments | ||||
2015 | $ | 0.5 | |||
2016 | 0.8 | ||||
2017 | 0.8 | ||||
2018 | 0.6 | ||||
2019 | 0.4 | ||||
Later years | 12.7 | ||||
Total | $ | 15.8 | |||
SHORTTERM_DEBT_AND_LINES_OF_CR1
SHORT-TERM DEBT AND LINES OF CREDIT (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Short-term Debt [Abstract] | |||||||||||||
Schedule of short-term borrowings | Our outstanding short-term borrowings were as follows: | ||||||||||||
(Millions, except percentages) | 2014 | 2013 | 2012 | ||||||||||
Commercial paper | |||||||||||||
Amount outstanding at December 31 (1) | $ | 145.1 | $ | 25.6 | $ | 95.4 | |||||||
Average interest rate on amounts outstanding at December 31 | 0.32% | 0.14 | % | 0.24 | % | ||||||||
Average amount outstanding during the year (2) | $ | 43.3 | $ | 80.8 | $ | 150.2 | |||||||
Short-term notes payable (3) | |||||||||||||
Average amount outstanding during the year (2) | $ | — | $ | 130.4 | $ | — | |||||||
(1) | Maturity dates ranged from January 5, 2015, through January 16, 2015. | ||||||||||||
(2) | Based on daily outstanding balances during the year. | ||||||||||||
(3) | Short-term notes payable related to a $200.0 million loan used for the purchase of Fox Energy Company LLC in March 2013. This loan was repaid in November 2013, and therefore no balance was outstanding at December 31, 2014, 2013, and 2012. See Note 3, Acquisition of Fox Energy Center, for more information regarding this purchase. | ||||||||||||
Schedule of revolving credit facilities and remaining available capacity | The information in the table below relates to our revolving credit facilities used to support our commercial paper borrowing program, including remaining available capacity under these facilities as of December 31: | ||||||||||||
(Millions) | Maturity | 2014 | 2013 | ||||||||||
Revolving credit facility (1) | 5/17/14 | $ | — | $ | 135 | ||||||||
Revolving credit facility (2) | 5/7/15 | 135 | — | ||||||||||
Revolving credit facility | 6/13/17 | 115 | 115 | ||||||||||
Total short-term credit capacity | $ | 250 | $ | 250 | |||||||||
Less: commercial paper outstanding | 145.1 | 25.6 | |||||||||||
Available capacity under existing agreements | $ | 104.9 | $ | 224.4 | |||||||||
(1) | This credit facility was terminated and replaced with a new credit facility in May 2014. | ||||||||||||
(2) | We requested approval from the PSCW to extend this facility through May 8, 2019. |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Debt Disclosure [Abstract] | |||||
Schedule of all principal debt payment amounts related to bond maturities | A schedule of all principal debt payment amounts related to bond maturities, excluding those associated with long-term debt to parent, is as follows: | ||||
(Millions) | Payments | ||||
2015 | $ | 125 | |||
2016 | — | ||||
2017 | 125 | ||||
2018 | — | ||||
2019 | — | ||||
Later years | 925.1 | ||||
Total | $ | 1,175.10 | |||
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||
Schedule of changes to asset retirement obligations | The following table shows changes to our asset retirement obligations through December 31, 2014: | |||||
(Millions) | ||||||
Asset retirement obligations at December 31, 2011 | $ | 18.6 | ||||
Accretion | 1 | |||||
Revisions to estimated cash flows | (2.5 | ) | (1) | |||
Settlements | (0.4 | ) | ||||
Asset retirement obligations at December 31, 2012 | 16.7 | |||||
Accretion | 0.9 | |||||
Revisions to estimated cash flows | 0.5 | |||||
Settlements | (0.1 | ) | ||||
Asset retirement obligations at December 31, 2013 | 18 | |||||
Accretion | 1 | |||||
Revisions to estimated cash flows | 1.5 | (2) | ||||
Settlements | (0.2 | ) | ||||
Asset retirement obligations at December 31, 2014 | $ | 20.3 | ||||
(1) | Revisions were made to estimated cash flows related to asset retirement obligations for the PCB-contaminated transformers primarily due to changes in estimated removal costs, estimated settlement date, and transformer quantities. | |||||
(2) | Revisions were made to estimated cash flows related to asset retirement obligations for the asbestos at electric generation facilities primarily due to changes in estimated settlement dates. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||
Schedule of principal components of deferred income tax assets and liabilities recognized in the balance sheets | The principal components of deferred income tax assets and liabilities recognized on the balance sheets as of December 31 are included in the table below. Certain temporary differences are netted in the table when the offsetting amount is recorded as a regulatory asset or liability. This is consistent with regulatory treatment. | |||||||||||||||||||||
(Millions) | 2014 | 2013 | ||||||||||||||||||||
Total deferred income tax assets | $ | 4.4 | $ | 3.5 | ||||||||||||||||||
Deferred income tax liabilities | ||||||||||||||||||||||
Plant-related | 591 | 491.7 | ||||||||||||||||||||
Employee benefits | 83.9 | 81 | ||||||||||||||||||||
Regulatory deferrals | 42.4 | 44.4 | ||||||||||||||||||||
Other | 13 | 16.7 | ||||||||||||||||||||
Total deferred income tax liabilities | $ | 730.3 | $ | 633.8 | ||||||||||||||||||
Total net deferred income tax liabilities | $ | 725.9 | $ | 630.3 | ||||||||||||||||||
Balance sheet presentation | ||||||||||||||||||||||
Current deferred income tax liabilities – included in other current liabilities | $ | 3.8 | $ | 10.8 | ||||||||||||||||||
Long-term deferred income tax liabilities | 722.1 | 619.5 | ||||||||||||||||||||
Total net deferred income tax liabilities | $ | 725.9 | $ | 630.3 | ||||||||||||||||||
Schedule of components of the provision for income tax expense | The components of the provision for income taxes were as follows: | |||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||||
Current provision | ||||||||||||||||||||||
Federal | $ | (12.8 | ) | $ | (1.3 | ) | $ | 24.8 | ||||||||||||||
State | 6.7 | 3.4 | 4.2 | |||||||||||||||||||
Total current provision | (6.1 | ) | 2.1 | 29 | ||||||||||||||||||
Deferred provision | ||||||||||||||||||||||
Federal | 84.3 | 71.5 | 27.8 | |||||||||||||||||||
State | 6.6 | 8.3 | 5.9 | |||||||||||||||||||
Total deferred provision | 90.9 | 79.8 | 33.7 | |||||||||||||||||||
Interest | 0.2 | 0.3 | 0.1 | |||||||||||||||||||
Investment tax credits | ||||||||||||||||||||||
Deferral | — | — | 0.2 | |||||||||||||||||||
Amortization | (0.3 | ) | (0.3 | ) | (0.4 | ) | ||||||||||||||||
Total provision for income taxes | $ | 84.7 | $ | 81.9 | $ | 62.6 | ||||||||||||||||
Reconciliation of federal income taxes to the provision for income taxes reported in the income statement | The following table presents a reconciliation of the difference between the effective tax rate and the amount computed by applying the statutory federal tax rate to income before taxes. | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
(Millions, except for percentages) | Rate | Amount | Rate | Amount | Rate | Amount | ||||||||||||||||
Statutory federal income tax | 35 | % | $ | 78.9 | 35 | % | $ | 76.9 | 35 | % | $ | 69.1 | ||||||||||
State income taxes, net | 4.8 | 10.9 | 4.8 | 10.5 | 4.4 | 8.7 | ||||||||||||||||
Benefits and compensation | (1.0 | ) | (2.2 | ) | (0.9 | ) | (1.9 | ) | (3.6 | ) | (7.2 | ) | ||||||||||
Federal tax credits | — | — | — | — | (3.5 | ) | (7.0 | ) | ||||||||||||||
Other differences, net | (1.2 | ) | (2.9 | ) | (1.6 | ) | (3.6 | ) | (0.6 | ) | (1.0 | ) | ||||||||||
Effective income tax | 37.6 | % | $ | 84.7 | 37.3 | % | $ | 81.9 | 31.7 | % | $ | 62.6 | ||||||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||||
Balance at January 1 | $ | — | $ | 0.3 | $ | 0.5 | ||||||||||||||||
Increase related to tax positions taken in prior years | — | 0.7 | — | |||||||||||||||||||
Decrease related to tax positions taken in prior years | — | (0.4 | ) | — | ||||||||||||||||||
Decrease related to settlements | — | (0.6 | ) | — | ||||||||||||||||||
Decrease related to lapse of statutes | — | — | (0.2 | ) | ||||||||||||||||||
Balance at December 31 | $ | — | $ | — | $ | 0.3 | ||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Schedule of minimum future commitments related to purchase obligations | The following table shows our minimum future commitments related to these purchase obligations as of December 31, 2014. | ||||||||||||||||||||||||||||||
Payments Due By Period | |||||||||||||||||||||||||||||||
(Millions) | Date Contracts Extend Through | Total Amounts Committed | 2015 | 2016 | 2017 | 2018 | 2019 | Later Years | |||||||||||||||||||||||
Electric utility | |||||||||||||||||||||||||||||||
Purchased power | 2029 | $ | 836.8 | $ | 122.8 | $ | 42.8 | $ | 53.3 | $ | 55.9 | $ | 57 | $ | 505 | ||||||||||||||||
Coal supply and transportation | 2019 | 162.8 | 55.3 | 31.9 | 32.6 | 31.9 | 11.1 | — | |||||||||||||||||||||||
Natural gas utility supply and transportation | 2024 | 243.5 | 45.4 | 43.4 | 42.9 | 42.5 | 27.2 | 42.1 | |||||||||||||||||||||||
Total | $ | 1,243.10 | $ | 223.5 | $ | 118.1 | $ | 128.8 | $ | 130.3 | $ | 95.3 | $ | 547.1 | |||||||||||||||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Reconciliation of the changes in the plans' benefit obligations and fair value of assets | The following tables provide a reconciliation of the changes in our share of the plans' benefit obligations and fair value of assets: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||||||||||
Obligation at January 1 | $ | 717.5 | $ | 772.6 | $ | 292.7 | $ | 328.5 | |||||||||||||||||||||||||
Service cost | 8.6 | 10.8 | 7.7 | 10.6 | |||||||||||||||||||||||||||||
Interest cost | 34.4 | 30.6 | 11.5 | 13.4 | |||||||||||||||||||||||||||||
Plan amendments | — | — | (74.4 | ) | 0.1 | ||||||||||||||||||||||||||||
Transfer to affiliates | (12.1 | ) | (6.6 | ) | — | — | |||||||||||||||||||||||||||
Actuarial loss (gain), net | 73 | (63.6 | ) | 24 | (51.4 | ) | |||||||||||||||||||||||||||
Participant contributions | — | — | 0.5 | 0.6 | |||||||||||||||||||||||||||||
Benefit payments | (29.6 | ) | (26.3 | ) | (10.4 | ) | (10.0 | ) | |||||||||||||||||||||||||
Federal subsidy on benefits paid | — | — | 0.9 | 0.9 | |||||||||||||||||||||||||||||
Obligation at December 31 | $ | 791.8 | $ | 717.5 | $ | 252.5 | $ | 292.7 | |||||||||||||||||||||||||
Change in fair value of plan assets | |||||||||||||||||||||||||||||||||
Fair value of plan assets at January 1 | $ | 839.1 | $ | 719.6 | $ | 236.5 | $ | 213.7 | |||||||||||||||||||||||||
Actual return on plan assets | 53.1 | 112.1 | 7.4 | 29 | |||||||||||||||||||||||||||||
Employer contributions | 46.9 | 40.3 | 2.6 | 3.2 | |||||||||||||||||||||||||||||
Participant contributions | — | — | 0.5 | 0.6 | |||||||||||||||||||||||||||||
Benefit payments | (29.6 | ) | (26.3 | ) | (10.4 | ) | (10.0 | ) | |||||||||||||||||||||||||
Transfer to affiliates | (12.1 | ) | (6.6 | ) | — | — | |||||||||||||||||||||||||||
Fair value of plan assets at December 31 | $ | 897.4 | $ | 839.1 | $ | 236.6 | $ | 236.5 | |||||||||||||||||||||||||
Funded status at December 31 | $ | 105.6 | $ | 121.6 | $ | (15.9 | ) | $ | (56.2 | ) | |||||||||||||||||||||||
Amounts recognized on the balance sheets at December 31 related to the funded status of the benefit plans | The amounts recognized on our balance sheets at December 31 related to the funded status of the benefit plans were as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Long-term assets | $ | 128.9 | $ | 145.1 | $ | — | $ | — | |||||||||||||||||||||||||
Current liabilities | 1.5 | 3.1 | 0.1 | 0.2 | |||||||||||||||||||||||||||||
Long-term liabilities | 21.8 | 20.4 | 15.8 | 56 | |||||||||||||||||||||||||||||
Total net assets (liabilities) | $ | 105.6 | $ | 121.6 | $ | (15.9 | ) | $ | (56.2 | ) | |||||||||||||||||||||||
Information for pension plans with an accumulated benefit obligation in excess of plan assets | The following table shows information for qualified pension plans with an accumulated benefit obligation in excess of plan assets. There were no plan assets related to these pension plans. Amounts presented are as of December 31: | ||||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 23.3 | $ | 23.5 | |||||||||||||||||||||||||||||
Accumulated benefit obligation | 21.5 | 21.8 | |||||||||||||||||||||||||||||||
Amounts that had not yet been recognized in the entity's net periodic benefit cost | The following table shows the amounts that had not yet been recognized in our net periodic benefit cost as of December 31: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Net regulatory assets | |||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 178.7 | $ | 110.2 | $ | 41 | $ | 11.5 | |||||||||||||||||||||||||
Prior service cost (credit) | 1.8 | 2.4 | (78.3 | ) | (12.0 | ) | |||||||||||||||||||||||||||
Total | $ | 180.5 | $ | 112.6 | $ | (37.3 | ) | $ | (0.5 | ) | |||||||||||||||||||||||
Estimated amounts that will be amortized into net periodic benefit cost | The following table shows the estimated amounts in regulatory assets that will be amortized into net periodic benefit cost during 2015: | ||||||||||||||||||||||||||||||||
(Millions) | Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
Net actuarial loss | $ | 19.6 | $ | 4.2 | |||||||||||||||||||||||||||||
Prior service cost (credit) | 0.2 | (9.3 | ) | ||||||||||||||||||||||||||||||
Total 2015 - estimated amortization | $ | 19.8 | $ | (5.1 | ) | ||||||||||||||||||||||||||||
Schedule of the components of net periodic benefit cost | The following table shows the components of net periodic benefit cost (including amounts capitalized to our balance sheets) for our benefit plans: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Service cost | $ | 8.6 | $ | 10.8 | $ | 12.8 | $ | 7.7 | $ | 10.6 | $ | 8.5 | |||||||||||||||||||||
Interest cost | 34.4 | 30.6 | 34 | 11.5 | 13.4 | 15.1 | |||||||||||||||||||||||||||
Expected return on plan assets | (64.1 | ) | (57.2 | ) | (55.4 | ) | (16.0 | ) | (14.8 | ) | (14.6 | ) | |||||||||||||||||||||
Loss on plan settlement | 0.4 | — | — | — | — | — | |||||||||||||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | 0.2 | |||||||||||||||||||||||||||
Amortization of prior service cost (credit) | 0.6 | 3.6 | 4.5 | (8.0 | ) | (2.1 | ) | (3.0 | ) | ||||||||||||||||||||||||
Amortization of net actuarial loss | 15 | 24 | 14.9 | 2.8 | 7.5 | 5.7 | |||||||||||||||||||||||||||
Net periodic benefit cost | $ | (5.1 | ) | $ | 11.8 | $ | 10.8 | $ | (2.0 | ) | $ | 14.6 | $ | 11.9 | |||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost for the plans | The weighted-average assumptions used to determine the benefit obligations for the plans were as follows for the years ended December 31: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Discount rate | 4.08% | 4.92% | 4.11% | 4.98% | |||||||||||||||||||||||||||||
Rate of compensation increase | 4.23% | 4.25% | N/A | N/A | |||||||||||||||||||||||||||||
Assumed medical cost trend rate | N/A | N/A | 6.00% | 6.50% | |||||||||||||||||||||||||||||
Ultimate trend rate | N/A | N/A | 5.00% | 5.00% | |||||||||||||||||||||||||||||
Year ultimate trend rate is reached | N/A | N/A | 2023 | 2019 | |||||||||||||||||||||||||||||
Assumed dental cost trend rate | N/A | N/A | 5.00% | 5.00% | |||||||||||||||||||||||||||||
The weighted-average assumptions used to determine net periodic benefit cost for the plans were as follows for the years ended December 31: | |||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Discount rate | 4.92% | 4.07% | 5.10% | ||||||||||||||||||||||||||||||
Expected return on assets | 8.00% | 8.00% | 8.25% | ||||||||||||||||||||||||||||||
Rate of compensation increase | 4.25% | 4.26% | 4.26% | ||||||||||||||||||||||||||||||
Other Benefits | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Discount rate | 4.78% | 4.01% | 5.04% | ||||||||||||||||||||||||||||||
Expected return on assets | 8.00% | 8.00% | 8.25% | ||||||||||||||||||||||||||||||
Assumed medical cost trend rate (under age 65) | 6.50% | 7.00% | 7.00% | ||||||||||||||||||||||||||||||
Ultimate trend rate | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||||||||||||
Year ultimate trend rate is reached | 2019 | 2019 | 2016 | ||||||||||||||||||||||||||||||
Assumed medical cost trend rate (over age 65) | 6.50% | 7.00% | 7.50% | ||||||||||||||||||||||||||||||
Ultimate trend rate | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||||||||||||
Year ultimate trend rate is reached | 2019 | 2019 | 2016 | ||||||||||||||||||||||||||||||
Assumed dental cost trend rate | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||||||||||||
Effects of a one-percentage-point change in assumed health care cost trend rates | For the year ended December 31, 2014, a one-percentage-point change in assumed health care cost trend rates would have had the following effects: | ||||||||||||||||||||||||||||||||
One-Percentage-Point | |||||||||||||||||||||||||||||||||
(Millions) | Increase | Decrease | |||||||||||||||||||||||||||||||
Effect on total of service and interest cost components of net periodic postretirement health care benefit cost | $ | 3.3 | $ | (2.6 | ) | ||||||||||||||||||||||||||||
Effect on the health care component of the accumulated postretirement benefit obligation | 34.4 | (33.9 | ) | ||||||||||||||||||||||||||||||
Investments recorded at fair value, by asset class | The following tables provide the fair values of our investments by asset class: | ||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Pension Plan Assets | Other Benefit Plan Assets | ||||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Asset Class | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 24.9 | $ | — | $ | 24.9 | $ | 4.6 | $ | 1.6 | $ | — | $ | 6.2 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
United States equity | 53.6 | 197.8 | — | 251.4 | 14.8 | 62.4 | — | 77.2 | |||||||||||||||||||||||||
International equity | 54.4 | 225.9 | — | 280.3 | 17.6 | 65.4 | — | 83 | |||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
United States government | 41.3 | 12.7 | — | 54 | 61.3 | — | — | 61.3 | |||||||||||||||||||||||||
Foreign government | — | 12.1 | — | 12.1 | — | — | — | — | |||||||||||||||||||||||||
Corporate debt | — | 250.5 | — | 250.5 | — | — | — | — | |||||||||||||||||||||||||
Other | — | 31.5 | — | 31.5 | 0.2 | — | — | 0.2 | |||||||||||||||||||||||||
149.3 | 755.4 | — | 904.7 | 98.5 | 129.4 | — | 227.9 | ||||||||||||||||||||||||||
401(h) other benefit plan assets invested as pension assets (1) | (1.5 | ) | (7.3 | ) | — | (8.8 | ) | 1.5 | 7.3 | — | 8.8 | ||||||||||||||||||||||
Total (2) | $ | 147.8 | $ | 748.1 | $ | — | $ | 895.9 | $ | 100 | $ | 136.7 | $ | — | $ | 236.7 | |||||||||||||||||
(1) | Pension trust assets are used to pay other postretirement benefits as allowed under Internal Revenue Code Section 401(h). | ||||||||||||||||||||||||||||||||
(2) | Investments do not include accruals or pending transactions that are included in the table reconciling the change in fair value of plan assets. | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Pension Plan Assets | Other Benefit Plan Assets | ||||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Asset Class | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1.1 | $ | 19.7 | $ | — | $ | 20.8 | $ | — | $ | 2.3 | $ | — | $ | 2.3 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
United States equity | 54.1 | 239.9 | — | 294 | 14.2 | 66.5 | — | 80.7 | |||||||||||||||||||||||||
International equity | 61.5 | 231.3 | — | 292.8 | 16.7 | 63.3 | — | 80 | |||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
United States government | — | 50.4 | — | 50.4 | 65 | 0.6 | — | 65.6 | |||||||||||||||||||||||||
Foreign government | — | 9.1 | 1.3 | 10.4 | — | — | — | — | |||||||||||||||||||||||||
Corporate debt | — | 134.8 | 0.7 | 135.5 | — | — | — | — | |||||||||||||||||||||||||
Asset-backed securities | — | 33.3 | — | 33.3 | — | — | — | — | |||||||||||||||||||||||||
Other | — | 9.4 | — | 9.4 | (0.1 | ) | — | — | (0.1 | ) | |||||||||||||||||||||||
116.7 | 727.9 | 2 | 846.6 | 95.8 | 132.7 | — | 228.5 | ||||||||||||||||||||||||||
401(h) other benefit plan assets invested as pension assets (1) | (1.1 | ) | (7.1 | ) | — | (8.2 | ) | 1.1 | 7.1 | — | 8.2 | ||||||||||||||||||||||
Total (2) | $ | 115.6 | $ | 720.8 | $ | 2 | $ | 838.4 | $ | 96.9 | $ | 139.8 | $ | — | $ | 236.7 | |||||||||||||||||
(1) | Pension trust assets are used to pay other postretirement benefits as allowed under Internal Revenue Code Section 401(h). | ||||||||||||||||||||||||||||||||
(2) | Investments do not include accruals or pending transactions that are included in the table reconciling the change in fair value of plan assets. | ||||||||||||||||||||||||||||||||
Reconciliation of changes in the fair value of pension assets categorized as Level 3 measurements | The following tables set forth a reconciliation of changes in the fair value of pension plan assets categorized as Level 3 in the fair value hierarchy: | ||||||||||||||||||||||||||||||||
(Millions) | Foreign Government Debt | Corporate Debt | Total | ||||||||||||||||||||||||||||||
Beginning balance at January 1, 2014 | $ | 1.3 | $ | 0.7 | $ | 2 | |||||||||||||||||||||||||||
Net realized and unrealized gains | 0.1 | 0.1 | 0.2 | ||||||||||||||||||||||||||||||
Sales | (1.4 | ) | (0.8 | ) | (2.2 | ) | |||||||||||||||||||||||||||
Ending balance at December 31, 2014 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Net unrealized gains (losses) related to assets still held at the end of the period | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
(Millions) | Foreign Government Debt | Corporate Debt | Total | ||||||||||||||||||||||||||||||
Beginning balance at January 1, 2013 | $ | 2.2 | $ | 0.5 | $ | 2.7 | |||||||||||||||||||||||||||
Net realized and unrealized losses | (0.1 | ) | (0.2 | ) | (0.3 | ) | |||||||||||||||||||||||||||
Purchases | 0.3 | — | 0.3 | ||||||||||||||||||||||||||||||
Sales | (1.1 | ) | (0.2 | ) | (1.3 | ) | |||||||||||||||||||||||||||
Transfers into Level 3 | — | 0.8 | 0.8 | ||||||||||||||||||||||||||||||
Transfers out of Level 3 | $ | — | $ | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||||
Ending balance at December 31, 2013 | $ | 1.3 | $ | 0.7 | $ | 2 | |||||||||||||||||||||||||||
Net unrealized losses related to assets still held at the end of the period | $ | (0.1 | ) | $ | (0.2 | ) | $ | (0.3 | ) | ||||||||||||||||||||||||
Schedule of expected payments for pension and other postretirement benefits and expected federal subsidies which will partially offset other postretirement benefits | The following table shows the payments, reflecting expected future service, that we expect to make for pension and other postretirement benefits. | ||||||||||||||||||||||||||||||||
(Millions) | Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||
2015 | $ | 41.2 | $ | 9.4 | |||||||||||||||||||||||||||||
2016 | 42.3 | 10 | |||||||||||||||||||||||||||||||
2017 | 44.3 | 10.9 | |||||||||||||||||||||||||||||||
2018 | 44.1 | 11.7 | |||||||||||||||||||||||||||||||
2019 | 45.6 | 12.5 | |||||||||||||||||||||||||||||||
2020 through 2024 | 224.3 | 73.6 | |||||||||||||||||||||||||||||||
PREFERRED_STOCK_Tables
PREFERRED STOCK (Tables) (Preferred stock) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Preferred stock | |||||||||||||||
Preferred stock | |||||||||||||||
Schedule of outstanding shares of preferred stock | Outstanding shares were as follows at December 31: | ||||||||||||||
(Millions, except share amounts) | 2014 | 2013 | |||||||||||||
Series | Shares Outstanding | Carrying Value | Shares Outstanding | Carrying Value | |||||||||||
5.00% | 131,916 | $ | 13.2 | 131,916 | $ | 13.2 | |||||||||
5.04% | 29,983 | 3 | 29,983 | 3 | |||||||||||
5.08% | 49,983 | 5 | 49,983 | 5 | |||||||||||
6.76% | 150,000 | 15 | 150,000 | 15 | |||||||||||
6.88% | 150,000 | 15 | 150,000 | 15 | |||||||||||
Total | 511,882 | $ | 51.2 | 511,882 | $ | 51.2 | |||||||||
GUARANTEES_Tables
GUARANTEES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Guarantees [Abstract] | |||||||||||||
Schedule of outstanding guarantees | The following table shows our outstanding guarantees: | ||||||||||||
Expiration | |||||||||||||
(Millions) | Total Amounts Committed at December 31, 2014 | Less Than | Over | ||||||||||
1 Year | 1 Year | ||||||||||||
Standby letters of credit (1) | $ | 0.1 | $ | 0.1 | $ | — | |||||||
Surety bonds(2) | 0.6 | 0.6 | — | ||||||||||
Other guarantee(3) | 0.5 | — | 0.5 | ||||||||||
Total guarantees | $ | 1.2 | $ | 0.7 | $ | 0.5 | |||||||
(1) | At our request, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to us. These amounts are not reflected on our balance sheets. | ||||||||||||
(2) | Primarily for workers compensation self-insurance programs and obtaining various licenses, permits, and rights-of-way. These guarantees are not reflected on our balance sheets. | ||||||||||||
(3) | Issued for workers compensation coverage in Wisconsin and Michigan. This amount is not reflected on our balance sheets. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of stock-based compensation expense and the related deferred tax benefit recognized in income | The following table reflects the stock-based compensation expense and the related deferred tax benefit recognized in income for the years ended December 31: | |||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||
Stock options | $ | 1 | $ | 0.7 | $ | 0.7 | ||||||||
Performance stock rights | 6.3 | 1.1 | 1.9 | |||||||||||
Restricted share units | 3.8 | 3.4 | 3.4 | |||||||||||
Total stock-based compensation expense | $ | 11.1 | $ | 5.2 | $ | 6 | ||||||||
Deferred income tax benefit | $ | 4.4 | $ | 2.1 | $ | 2.4 | ||||||||
Schedule of weighted-average fair values per stock option along with the assumptions incorporated into the valuation model | The following table shows the weighted-average fair values per stock option granted along with the assumptions incorporated into the binomial lattice valuation models: | |||||||||||||
2014 Grant | 2013 Grant | 2012 Grant | ||||||||||||
Weighted-average fair value per option | $6.70 | $6.03 | $6.30 | |||||||||||
Expected term | 8 years | 5 years | 5 years | |||||||||||
Risk-free interest rate | 0.12% – 2.88% | 0.18% – 2.11% | 0.17% – 2.18% | |||||||||||
Expected dividend yield | 5.28% | 5.33% | 5.28% | |||||||||||
Expected volatility | 18% | 24% | 25% | |||||||||||
Summary of stock option activity and information related to outstanding and exercisable stock options | A summary of stock option activity for 2014, and information related to outstanding and exercisable stock options at December 31, 2014, is presented below: | |||||||||||||
Stock Options | Weighted-Average | Weighted-Average | Aggregate | |||||||||||
Exercise Price Per | Remaining Contractual | Intrinsic Value | ||||||||||||
Share | Life (in Years) | (Millions) | ||||||||||||
Outstanding at December 31, 2013 | 49,993 | $ | 53.03 | |||||||||||
Granted | 13,890 | 55.23 | ||||||||||||
Exercised | (58,169 | ) | 53.44 | |||||||||||
Outstanding at December 31, 2014 | 5,714 | $ | 54.18 | 7.5 | $ | 0.1 | ||||||||
Exercisable at December 31, 2014 | — | N/A | N/A | N/A | ||||||||||
Schedule of assumptions incorporated into the valuation models for performance stock rights | The table below reflects the assumptions used in the Monte Carlo valuation models to estimate the fair value of the outstanding performance stock rights at December 31: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 0.21% – 0.63% | 0.13% – 1.27% | 0.17% – 1.27% | |||||||||||
Expected dividend yield | 5.25% – 5.33% | 5.28% – 5.34% | 5.18% – 5.34% | |||||||||||
Expected volatility | 18% – 22% | 15% – 36% | 14% – 36% | |||||||||||
Information related to share based awards | ||||||||||||||
Summary of the activity related to restricted share unit awards (equity and liability awards) | A summary of the 2014 activity related to all restricted share unit awards (equity and liability awards) is presented below: | |||||||||||||
Restricted Share | Weighted-Average | |||||||||||||
Unit Awards | Grant Date Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 67,741 | $ | 52.06 | |||||||||||
Granted | 28,725 | 55.23 | ||||||||||||
Dividend equivalents | 2,875 | 54.45 | ||||||||||||
Vested and released | (28,325 | ) | 49.5 | |||||||||||
Transfers | 332 | 54.55 | ||||||||||||
Forfeited | (804 | ) | 54.64 | |||||||||||
Outstanding at December 31, 2014 | 70,544 | $ | 54.46 | |||||||||||
Performance Stock Rights Accounted for as Equity Awards | ||||||||||||||
Information related to share based awards | ||||||||||||||
Summary of the activity related to performance stock rights | A summary of the 2014 activity related to performance stock rights accounted for as equity awards is presented below: | |||||||||||||
Performance | Weighted-Average | |||||||||||||
Stock Rights | Fair Value (2) | |||||||||||||
Outstanding at December 31, 2013 | 5,561 | $ | 45.16 | |||||||||||
Granted | 1,113 | 44.28 | ||||||||||||
Award modifications | 2,295 | 85.09 | ||||||||||||
Distributed (1) | (2,235 | ) | 75.02 | |||||||||||
Adjustment for estimated payout and shares not distributed (1) | (2,831 | ) | 46.32 | |||||||||||
Outstanding at December 31, 2014 | 3,903 | $ | 58.03 | |||||||||||
(1) | No shares of Integrys Energy Group common stock were distributed for performance stock rights with a performance period ending December 31, 2013, because the performance percentage was below the threshold payout level. In October 2014, Integrys Energy Group's Board of Directors approved the acceleration of a portion of the estimated distribution for those performance stock rights held by active employees with a performance period ending December 31, 2014. This distribution was made in December 2014. | |||||||||||||
(2) | Reflects the weighted-average fair value used to measure equity awards. Equity awards are measured using the grant date fair value or the fair value on the modification date. | |||||||||||||
Performance Stock Rights Accounted for as Liability Awards | ||||||||||||||
Information related to share based awards | ||||||||||||||
Summary of the activity related to performance stock rights | A summary of the 2014 activity related to performance stock rights accounted for as liability awards is presented below: | |||||||||||||
Performance | ||||||||||||||
Stock Rights | ||||||||||||||
Outstanding at December 31, 2013 | 9,222 | |||||||||||||
Granted | 4,440 | |||||||||||||
Award modifications | (2,295 | ) | ||||||||||||
Distributed * | (1,240 | ) | ||||||||||||
Adjustment for estimated payout and shares not distributed * | (93 | ) | ||||||||||||
Outstanding at December 31, 2014 | 10,034 | |||||||||||||
* | No shares of Integrys Energy Group common stock were distributed for performance stock rights with a performance period ending December 31, 2013, because the performance percentage was below the threshold payout level. In October 2014, Integrys Energy Group's Board of Directors approved the acceleration of a portion of the estimated distribution for those performance stock rights held by active employees with a performance period ending December 31, 2014. This distribution was made in December 2014. |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair value of assets and liabilities measured on a recurring basis, categorized by level within the fair value hierarchy | The following tables show assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy: | ||||||||||||||||
31-Dec-14 | |||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Risk management assets | |||||||||||||||||
Natural gas contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||||
Financial transmission rights (FTRs) | — | — | 2.2 | 2.2 | |||||||||||||
Total | $ | — | $ | 0.1 | $ | 2.2 | $ | 2.3 | |||||||||
Risk management liabilities | |||||||||||||||||
Natural gas contracts | $ | 2.2 | $ | — | $ | — | $ | 2.2 | |||||||||
FTRs | — | — | 0.3 | 0.3 | |||||||||||||
Petroleum product contracts | 1.1 | — | — | 1.1 | |||||||||||||
Coal contracts | — | 1.2 | 2.2 | 3.4 | |||||||||||||
Total | $ | 3.3 | $ | 1.2 | $ | 2.5 | $ | 7 | |||||||||
December 31, 2013 | |||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Risk management assets | |||||||||||||||||
Natural gas contracts | $ | 0.6 | $ | — | $ | — | $ | 0.6 | |||||||||
FTRs | — | — | 1.5 | 1.5 | |||||||||||||
Petroleum product contracts | 0.1 | — | — | 0.1 | |||||||||||||
Coal contracts | — | — | 0.2 | 0.2 | |||||||||||||
Total | $ | 0.7 | $ | — | $ | 1.7 | $ | 2.4 | |||||||||
Risk management liabilities | |||||||||||||||||
Natural gas contracts | $ | 0.1 | $ | — | $ | — | $ | 0.1 | |||||||||
FTRs | — | — | 0.3 | 0.3 | |||||||||||||
Coal contracts | — | — | 2.7 | 2.7 | |||||||||||||
Total | $ | 0.1 | $ | — | $ | 3 | $ | 3.1 | |||||||||
Significant unobservable inputs used in the valuation of derivatives categorized in Level 3 | The significant unobservable inputs used in the valuations that resulted in categorization within Level 3 were as follows at December 31, 2014. The amounts listed in the table below represent the range of unobservable inputs that individually had a significant impact on the fair value determination and caused a derivative to be classified as Level 3. | ||||||||||||||||
Fair Value (Millions) | |||||||||||||||||
Assets | Liabilities | Valuation Technique | Unobservable Input | Average or Range | |||||||||||||
FTRs | $ | 2.2 | $ | 0.3 | Market-based | Forward market prices ($/megawatt-month) (1) | $188.16 | ||||||||||
Coal contract | — | 2.2 | Market-based | Forward market prices ($/ton) (2) | $10.89 — $13.60 | ||||||||||||
(1) | Represents forward market prices developed using historical cleared pricing data from MISO. | ||||||||||||||||
(2) | Represents third-party forward market pricing. | ||||||||||||||||
Reconciliation of changes in level 3 fair value measurements | The following tables set forth a reconciliation of changes in the fair value of items categorized as Level 3 measurements: | ||||||||||||||||
2014 | |||||||||||||||||
(Millions) | FTRs | Coal Contracts | Total | ||||||||||||||
Balance at the beginning of period | $ | 1.2 | $ | (2.5 | ) | $ | (1.3 | ) | |||||||||
Net realized gains included in earnings | 0.2 | — | 0.2 | ||||||||||||||
Net unrealized gains recorded as regulatory assets or liabilities | 0.4 | (1.6 | ) | (1.2 | ) | ||||||||||||
Purchases | 4.3 | — | 4.3 | ||||||||||||||
Settlements | (4.2 | ) | 0.7 | (3.5 | ) | ||||||||||||
Net transfers out of Level 3 | — | 1.2 | 1.2 | ||||||||||||||
Balance at the end of period | $ | 1.9 | $ | (2.2 | ) | $ | (0.3 | ) | |||||||||
2013 | |||||||||||||||||
(Millions) | FTRs | Coal Contracts | Total | ||||||||||||||
Balance at the beginning of period | $ | 1.1 | $ | (6.5 | ) | $ | (5.4 | ) | |||||||||
Net realized gains included in earnings | 3 | — | 3 | ||||||||||||||
Net unrealized (losses) gains recorded as regulatory assets or liabilities | (0.1 | ) | 0.4 | 0.3 | |||||||||||||
Purchases | 3.2 | — | 3.2 | ||||||||||||||
Sales | (0.2 | ) | — | (0.2 | ) | ||||||||||||
Settlements | (5.8 | ) | 3.6 | (2.2 | ) | ||||||||||||
Balance at the end of period | $ | 1.2 | $ | (2.5 | ) | $ | (1.3 | ) | |||||||||
2012 | |||||||||||||||||
(Millions) | FTRs | Coal Contracts | Total | ||||||||||||||
Balance at the beginning of period | $ | 1.2 | $ | (6.9 | ) | $ | (5.7 | ) | |||||||||
Net realized gains included in earnings | 1.8 | — | 1.8 | ||||||||||||||
Net unrealized losses (gains) recorded as regulatory assets or liabilities | (0.1 | ) | 5.8 | 5.7 | |||||||||||||
Purchases | 2.8 | — | 2.8 | ||||||||||||||
Sales | (0.1 | ) | — | (0.1 | ) | ||||||||||||
Settlements | (4.5 | ) | (5.4 | ) | (9.9 | ) | |||||||||||
Balance at the end of period | $ | 1.1 | $ | (6.5 | ) | $ | (5.4 | ) | |||||||||
Schedule of carrying value and estimated fair value of financial instruments | The following table shows the financial instruments included on our balance sheets that are not recorded at fair value: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(Millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Long-term debt | $ | 1,174.50 | $ | 1,286.20 | $ | 1,174.50 | $ | 1,176.50 | |||||||||
Long-term debt to parent | 5.4 | 5.7 | 6.3 | 7.1 | |||||||||||||
Preferred stock | 51.2 | 52 | 51.2 | 61.4 | |||||||||||||
MISCELLANEOUS_INCOME_Tables
MISCELLANEOUS INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Schedule of miscellaneous income | Total miscellaneous income was as follows: | ||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Equity portion of AFUDC | $ | 11 | $ | 9.9 | $ | 2.6 | |||||||
Earnings from equity method investments | 10.3 | 11.3 | 11 | ||||||||||
Key executive life insurance for retired employees | 1.6 | 1.1 | 1.1 | ||||||||||
Coal transportation services | 1 | 1.2 | 0.9 | ||||||||||
Other | 0.5 | — | 0.1 | ||||||||||
Total miscellaneous income | $ | 24.4 | $ | 23.5 | $ | 15.7 | |||||||
SEGMENTS_OF_BUSINESS_Tables
SEGMENTS OF BUSINESS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Schedule of information related to reportable segments | The table below presents information related to our reportable segments: | ||||||||||||||||||||||||
Regulated Utilities | |||||||||||||||||||||||||
2014 (Millions) | Electric Utility | Natural Gas Utility | Total Utility | Other | Reconciling | WPS | |||||||||||||||||||
Eliminations | Consolidated | ||||||||||||||||||||||||
Income Statement | |||||||||||||||||||||||||
External revenues | $ | 1,222.40 | $ | 459.9 | $ | 1,682.30 | $ | — | $ | — | $ | 1,682.30 | |||||||||||||
Intersegment revenues | — | 12.4 | 12.4 | 1.4 | (13.8 | ) | — | ||||||||||||||||||
Depreciation and amortization expense | 97.4 | 16.2 | 113.6 | 0.6 | (0.5 | ) | 113.7 | ||||||||||||||||||
Miscellaneous income | 11.1 | 0.4 | 11.5 | 12.9 | — | 24.4 | |||||||||||||||||||
Interest expense | 45.1 | 10.2 | 55.3 | 2.1 | — | 57.4 | |||||||||||||||||||
Provision for income taxes | 64.1 | 16.6 | 80.7 | 4 | — | 84.7 | |||||||||||||||||||
Preferred stock dividend requirements | (2.6 | ) | (0.5 | ) | (3.1 | ) | — | — | (3.1 | ) | |||||||||||||||
Net income attributed to common shareholder | 104.7 | 25.7 | 130.4 | 7.2 | — | 137.6 | |||||||||||||||||||
Total assets | 3,511.00 | 682.3 | 4,193.30 | 85.4 | — | 4,278.70 | |||||||||||||||||||
Cash expenditures for long-lived assets | 279.3 | 49.8 | 329.1 | — | — | 329.1 | |||||||||||||||||||
Regulated Utilities | |||||||||||||||||||||||||
2013 (Millions) | Electric | Natural Gas Utility | Total Utility | Other | Reconciling | WPS | |||||||||||||||||||
Utility | Eliminations | Consolidated | |||||||||||||||||||||||
Income Statement | |||||||||||||||||||||||||
External revenues | $ | 1,241.80 | $ | 337.5 | $ | 1,579.30 | $ | — | $ | — | $ | 1,579.30 | |||||||||||||
Intersegment revenues | — | 10.9 | 10.9 | 1.4 | (12.3 | ) | — | ||||||||||||||||||
Depreciation and amortization expense | 90.5 | 15.6 | 106.1 | 0.6 | (0.5 | ) | 106.2 | ||||||||||||||||||
Miscellaneous income | 9.9 | 0.2 | 10.1 | 13.4 | — | 23.5 | |||||||||||||||||||
Interest expense | 33 | 8.5 | 41.5 | 2.2 | — | 43.7 | |||||||||||||||||||
Provision for income taxes | 61.6 | 16.1 | 77.7 | 4.2 | — | 81.9 | |||||||||||||||||||
Preferred stock dividend requirements | (2.5 | ) | (0.6 | ) | (3.1 | ) | — | — | (3.1 | ) | |||||||||||||||
Net income attributed to common shareholder | 102.3 | 25 | 127.3 | 7.5 | — | 134.8 | |||||||||||||||||||
Total assets | 3,241.80 | 633.8 | 3,875.60 | 85.7 | — | 3,961.30 | |||||||||||||||||||
Cash expenditures for long-lived assets | 595.5 | 37.7 | 633.2 | — | — | 633.2 | |||||||||||||||||||
Regulated Utilities | |||||||||||||||||||||||||
2012 (Millions) | Electric | Natural Gas Utility | Total Utility | Other | Reconciling | WPS | |||||||||||||||||||
Utility | Eliminations | Consolidated | |||||||||||||||||||||||
Income Statement | |||||||||||||||||||||||||
External revenues | $ | 1,212.00 | $ | 287.2 | $ | 1,499.20 | $ | — | $ | — | $ | 1,499.20 | |||||||||||||
Intersegment revenues | — | 9.2 | 9.2 | 1.4 | (10.6 | ) | — | ||||||||||||||||||
Depreciation and amortization expense | 81.1 | 15 | 96.1 | 0.6 | (0.5 | ) | 96.2 | ||||||||||||||||||
Miscellaneous income | 2.6 | 0.1 | 2.7 | 13 | — | 15.7 | |||||||||||||||||||
Interest expense | 32.4 | 7.9 | 40.3 | 2.2 | — | 42.5 | |||||||||||||||||||
Provision for income taxes | 44.6 | 14.5 | 59.1 | 3.5 | — | 62.6 | |||||||||||||||||||
Preferred stock dividend requirements | (2.5 | ) | (0.6 | ) | (3.1 | ) | — | — | (3.1 | ) | |||||||||||||||
Net income attributed to common shareholder | 99.1 | 24.9 | 124 | 7.7 | — | 131.7 | |||||||||||||||||||
Total assets | 2,747.50 | 668.2 | 3,415.70 | 106.2 | — | 3,521.90 | |||||||||||||||||||
Cash expenditures for long-lived assets | 149.4 | 30.1 | 179.5 | — | — | 179.5 | |||||||||||||||||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
Schedule of information related to transactions entered into with related parties | The table below includes information summarizing transactions entered into with related parties as of: | ||||||||||||
(Millions) | 31-Dec-14 | 31-Dec-13 | |||||||||||
Notes payable * | |||||||||||||
Integrys Energy Group | $ | 5.4 | $ | 6.3 | |||||||||
Accounts Payable | |||||||||||||
ATC | 8.2 | 10.4 | |||||||||||
Liability related to income tax allocation | |||||||||||||
Integrys Energy Group | 6.1 | 6.7 | |||||||||||
* | WPS Leasing, our consolidated subsidiary, has a note payable to our parent company, Integrys Energy Group. At December 31, 2014, the current portion of the note payable was $2.5 million. | ||||||||||||
Schedule of Related Party Transactions [Table Text Block] | The following table shows activity associated with related party transactions: | ||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Electric transactions | |||||||||||||
Sales to UPPCO (1) | $ | 15.3 | $ | 22.8 | $ | 22.2 | |||||||
Sales to Integrys Transportation Fuels, LLC | 0.1 | — | — | ||||||||||
Natural gas transactions (2) | |||||||||||||
Sales to IES | 0.6 | 0.5 | 0.6 | ||||||||||
Purchases from IES | 2.5 | 0.9 | 0.7 | ||||||||||
Interest expense (3) | |||||||||||||
Integrys Energy Group | 0.5 | 0.5 | 0.5 | ||||||||||
Transactions with equity-method investees | |||||||||||||
Charges from ATC for network transmission services | 99 | 98.4 | 94.2 | ||||||||||
Charges to ATC for services and construction | 8.6 | 9.5 | 10.4 | ||||||||||
Net proceeds from WRPC sales of energy to MISO | — | — | 2.9 | ||||||||||
Purchases of energy from WRPC | 3.7 | 3.7 | 5 | ||||||||||
Charges to WRPC for operations | 1.4 | 0.9 | 0.8 | ||||||||||
Equity earnings from WPS Investments, LLC (4) | 9.5 | 10.2 | 10.2 | ||||||||||
(1) | Includes sales through the date of the sale of UPPCO in August 2014, by Integrys Energy Group. | ||||||||||||
(2) | Includes sales and purchases through the date of the sale of IES in November 2014, by Integrys Energy Group. | ||||||||||||
(3) | WPS Leasing, our consolidated subsidiary, has a note payable to our parent company, Integrys Energy Group. | ||||||||||||
(4) | WPS Investments, LLC is a consolidated subsidiary of Integrys Energy Group that is jointly owned by Integrys Energy Group and us. At December 31, 2014, we had an 10.98% interest in WPS Investments accounted for under the equity method. Our ownership percentage has continued to decrease as additional equity contributions are made by Integrys Energy Group to WPS Investments. |
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Schedule of quarterly financial information (unaudited) | |||||||||||||||||||||
(Millions) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||||||||||||
2014 | |||||||||||||||||||||
Operating revenues | $ | 555.7 | $ | 358.8 | $ | 370.4 | $ | 397.4 | $ | 1,682.30 | |||||||||||
Operating income | 87.6 | 36.5 | 77.9 | 56.4 | 258.4 | ||||||||||||||||
Net income attributed to common shareholder | 50.3 | 17.1 | 42.2 | 28 | $ | 137.6 | |||||||||||||||
2013 | |||||||||||||||||||||
Operating revenues | $ | 433.4 | $ | 367.8 | $ | 371.9 | $ | 406.2 | $ | 1,579.30 | |||||||||||
Operating income | 77.4 | 46.9 | 65.2 | 50.5 | 240 | ||||||||||||||||
Net income attributed to common shareholder | 44.6 | 25.9 | 37 | 27.3 | 134.8 | ||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION (Details) | Dec. 31, 2014 |
Accounting Policies [Abstract] | |
Number of wholly owned subsidiaries | 1 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CASH AND CASH EQUIVALENTS (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Cash and cash equivalents | |
Maximum maturity of short-term investments to classify instruments as cash equivalents | 3 months |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REVENUES AND CUSTOMER RECEIVABLES (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
customer | ||
Revenues from external customers | ||
Unbilled revenues | 72.3 | $79 |
Percentage price variance from rate case-approved fuel and purchased power costs before deferral is required | 2.00% | |
Customer Concentration Risk | ||
Revenues from external customers | ||
Customers that account for more than 10% of revenues | 0 | |
Threshold percentage of revenues from major customers or industries | 10.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PROPERTY, PLANT, AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, plant and equipment | |||
Gain (loss) on retirement of utility property, excluding land | 0 | ||
Software | Minimum | |||
Property, plant and equipment | |||
Useful life | 3 years | ||
Software | Maximum | |||
Property, plant and equipment | |||
Useful life | 5 years | ||
Electric | |||
Property, plant and equipment | |||
Annual utility composite depreciation rate (as a percent) | 2.73% | 2.79% | 2.87% |
Natural gas | |||
Property, plant and equipment | |||
Annual utility composite depreciation rate (as a percent) | 2.17% | 2.19% | 2.21% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AFUDC (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
AFUDC | |||
Percentage of retail jurisdictional construction work in progress expenditures subject to AFUDC calculation | 50.00% | ||
Allowance for equity funds used during construction | $11 | $9.90 | $2.60 |
Allowance for borrowed funds used during construction | $4.60 | $3.80 | $0.90 |
Retail | |||
AFUDC | |||
Average AFUDC rate (as a percent) | 8.08% | ||
Wholesale | |||
AFUDC | |||
Average AFUDC rate (as a percent) | 6.99% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES EMPLOYEE BENEFITS (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Employee benefits | |
Recognition period for transition obligation related to other postretirement benefit plans that existed prior to the merger | 20 years |
Recognition period for changes in realized and unrealized investment gains and losses | 5 years |
IBS | |
Employee benefits | |
Recognition period for differences between actual investment returns and expected return on plan assets | 5 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Stock Options | |
Information related to share based awards | |
Maximum term of awards | 10 years |
Percentage of retirees' options that becomes exercisable each year | 25.00% |
Period of historical volatility used to estimate expected volatility | 10 years |
Performance Stock Rights | |
Information related to share based awards | |
Vesting period | 3 years |
Percentage value of award that can be deferred into deferred compensation plan | 80.00% |
Period prior to the end of the performance period during which employees cannot change their election to defer the value of awards into the deferred compensation plan | 6 months |
Remaining performance period for which fair value on the modification date is used to measure the awards | 6 months |
Incremental compensation expense due to an award modification | 0 |
Performance Stock Rights | Minimum | |
Information related to share based awards | |
Amount of performance payout (as a percent) | 0.00% |
Period of historical volatility used to estimate expected volatility | 1 year |
Performance Stock Rights | Maximum | |
Information related to share based awards | |
Amount of performance payout (as a percent) | 200.00% |
Period of historical volatility used to estimate expected volatility | 3 years |
Restricted Share Units | |
Information related to share based awards | |
Vesting period | 4 years |
Vesting rights percentage | 25.00% |
Percentage value of award that can be deferred into deferred compensation plan | 80.00% |
ACQUISITION_OF_FOX_ENERGY_CENT2
ACQUISITION OF FOX ENERGY CENTER (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 02, 2014 | Mar. 31, 2013 |
MW | |||||
Acquisitions | |||||
Purchase price | $0 | $391.60 | $0 | ||
Fox Energy Company LLC | |||||
Acquisitions | |||||
Purchase price | 391.6 | ||||
Capacity of Electric Generating Facility | 593 | ||||
Assets acquired | |||||
Inventories - materials and supplies | 3 | ||||
Other current assets | 0.4 | ||||
Property, plant, and equipment | 374.4 | ||||
Other long-term assets | 15.6 | ||||
Total assets acquired | 393.4 | ||||
Liabilities assumed | |||||
Accounts payable | 1.8 | ||||
Total liabilities assumed | 1.8 | ||||
Contracted Capacity From Power Purchase Agreement | 500 | ||||
Contract termination fee related to tolling arrangement | $50 | ||||
Amortization Period of Regulatory Asset | 9 years | ||||
Beginning of regulatory asset amortization period | 1-Jan-14 |
CASH_AND_CASH_EQUIVALENTS_Deta
CASH AND CASH EQUIVALENTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Noncash investing activities | |||
Construction costs funded through accounts payable | $54 | $37.30 | $24.80 |
RISK_MANAGEMENT_ACTIVITIES_RIS
RISK MANAGEMENT ACTIVITIES - RISK MANAGEMENT ASSETS AND LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative assets and liabilities from risk management activities | ||
Risk Management Asset | $2.30 | $2.40 |
Risk Management Liability | 7 | 3.1 |
Non-hedge derivatives | ||
Derivative assets and liabilities from risk management activities | ||
Current assets from risk management activities | 2.3 | 2.2 |
Long-term assets from risk management activities | 0 | 0.2 |
Risk Management Asset | 2.3 | 2.4 |
Current liabilities from risk management activities | 5.9 | 2.3 |
Long-term liabilities from risk management activities | 1.1 | 0.8 |
Risk Management Liability | 7 | 3.1 |
Non-hedge derivatives | Natural gas contracts | ||
Derivative assets and liabilities from risk management activities | ||
Current assets from risk management activities | 0.1 | 0.6 |
Long-term assets from risk management activities | 0 | |
Current liabilities from risk management activities | 2.1 | 0.1 |
Long-term liabilities from risk management activities | 0.1 | |
Non-hedge derivatives | FTRs | ||
Derivative assets and liabilities from risk management activities | ||
Current assets from risk management activities | 2.2 | 1.5 |
Current liabilities from risk management activities | 0.3 | 0.3 |
Non-hedge derivatives | Petroleum product contracts | ||
Derivative assets and liabilities from risk management activities | ||
Current assets from risk management activities | 0 | 0.1 |
Current liabilities from risk management activities | 1.1 | 0 |
Non-hedge derivatives | Coal contract | ||
Derivative assets and liabilities from risk management activities | ||
Current assets from risk management activities | 0 | 0 |
Long-term assets from risk management activities | 0 | 0.2 |
Current liabilities from risk management activities | 2.4 | 1.9 |
Long-term liabilities from risk management activities | $1 | $0.80 |
Designated as hedging instrument | ||
Derivative assets and liabilities from risk management activities | ||
Number of derivative instruments held | 0 |
RISK_MANAGEMENT_ACTIVITIES_NET
RISK MANAGEMENT ACTIVITIES - NETTING ARRANGEMENTS AND CASH COLLATERAL (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Derivative assets subject to master netting or similar arrangements, gross amount | $2.30 | $2.20 |
Potential effects of netting, including cash collateral | 0.4 | 0.6 |
Derivative assets subject to master netting or similar arrangements, net amount | 1.9 | 1.6 |
Derivative assets not subject to master netting arrangement | 0 | 0.2 |
Risk Management Asset | 2.3 | 2.4 |
Total Risk Management Assets, Net Amount | 1.9 | 1.8 |
Liabilities | ||
Derivative liabilities subject to master netting or similar arrangements, gross amount | 3.6 | 0.4 |
Potential effects of netting, including cash collateral | 3.6 | 0.4 |
Derivative liabilities subject to master netting or similar arrangements, net amount | 0 | 0 |
Derivative liabilities not subject to master netting arrangement | 3.4 | 2.7 |
Risk Management Liability | 7 | 3.1 |
Total Risk Management Liabilities, Net Amount | 3.4 | 2.7 |
Cash Collateral Positions | ||
Cash collateral provided to others related to contracts under master netting or similar arrangements | 6.6 | 3.1 |
Cash collateral received from others related to contracts under master netting or similar arrangements | $0 | $0.20 |
RISK_MANAGEMENT_ACTIVITIES_UNR
RISK MANAGEMENT ACTIVITIES - UNREALIZED GAINS AND LOSSES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Natural gas contracts | Income Statement - Cost of fuel, natural gas and purchased power | |||
Risk management activities | |||
Unrealized gain (loss) related to non-hedge derivative contracts | $0 | $0 | $0.20 |
Natural gas contracts | Balance Sheet - Regulatory assets (current) | |||
Risk management activities | |||
Unrealized gain (loss) related to non-hedge derivative contracts | -2.3 | 0.7 | 2.2 |
Natural gas contracts | Balance Sheet - Regulatory liabilities (current) | |||
Risk management activities | |||
Unrealized gain (loss) related to non-hedge derivative contracts | -0.3 | 0.3 | 0.1 |
FTRs | Balance Sheet - Regulatory assets (current) | |||
Risk management activities | |||
Unrealized gain (loss) related to non-hedge derivative contracts | 0 | 0.2 | -0.1 |
FTRs | Balance Sheet - Regulatory liabilities (current) | |||
Risk management activities | |||
Unrealized gain (loss) related to non-hedge derivative contracts | 0.4 | -0.3 | 0 |
Petroleum product contracts | Balance Sheet - Regulatory assets (current) | |||
Risk management activities | |||
Unrealized gain (loss) related to non-hedge derivative contracts | -1.1 | 0 | 0.1 |
Petroleum product contracts | Balance Sheet - Regulatory liabilities (current) | |||
Risk management activities | |||
Unrealized gain (loss) related to non-hedge derivative contracts | -0.1 | 0.1 | 0 |
Coal contract | Balance Sheet - Regulatory assets (current) | |||
Risk management activities | |||
Unrealized gain (loss) related to non-hedge derivative contracts | -1.3 | -0.9 | -2.2 |
Coal contract | Balance Sheet - Regulatory assets (long Term) | |||
Risk management activities | |||
Unrealized gain (loss) related to non-hedge derivative contracts | -0.2 | 3.5 | 0.1 |
Coal contract | Balance Sheet - Regulatory liabilities (current) | |||
Risk management activities | |||
Unrealized gain (loss) related to non-hedge derivative contracts | 0 | -0.2 | 0.3 |
Coal contract | Balance Sheet - Regulatory liabilities (long-term) | |||
Risk management activities | |||
Unrealized gain (loss) related to non-hedge derivative contracts | ($0.10) | ($2) | $2.20 |
RISK_MANAGEMENT_ACTIVITIES_NOT
RISK MANAGEMENT ACTIVITIES - NOTIONAL VOLUMES (Details) (Non-hedge derivatives) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
MMBTU | MMBTU | |
Natural gas contracts | Purchases | ||
Risk management activities | ||
Notional volume of outstanding derivative contracts (mmbtu or kwh) | 102,540,000 | 224,250,000 |
Natural gas contracts | Sales | ||
Risk management activities | ||
Notional volume of outstanding derivative contracts (mmbtu or kwh) | 700,000 | |
FTRs | Other Transactions | ||
Risk management activities | ||
Notional volume of outstanding derivative contracts (mmbtu or kwh) | 4,287,700,000 | 3,427,000,000 |
Petroleum product contracts | Purchases | ||
Risk management activities | ||
Notional volume of outstanding derivative contracts (barrels) | 0 | 100,000 |
Petroleum product contracts | Sales | ||
Risk management activities | ||
Notional volume of outstanding derivative contracts (barrels) | 0 | |
Coal contract | Purchases | ||
Risk management activities | ||
Notional volume of outstanding derivative contracts (tons) | 3,000,000 | 4,800,000 |
Coal contract | Sales | ||
Risk management activities | ||
Notional volume of outstanding derivative contracts (tons) | 0 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT, AND EQUIPMENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, plant and equipment | ||
Less: Accumulated depreciation | $1,542.50 | $1,483.10 |
Property, plant, and equipment, net | 3,131 | 2,887.70 |
Utility operations | ||
Property, plant and equipment | ||
Property, plant, and equipment, gross | 4,360.50 | 4,019.10 |
Less: Accumulated depreciation | 1,495.90 | 1,436.80 |
Net property, plant, and equipment excluding construction work in progress | 2,864.60 | 2,582.30 |
Construction work in progress | 248.7 | 285.2 |
Plant to be retired, net | 12.5 | 14.4 |
Property, plant, and equipment, net | 3,125.80 | 2,881.90 |
Utility operations | Electric Utility | ||
Property, plant and equipment | ||
Property, plant, and equipment, gross | 3,587.40 | 3,289.20 |
Utility operations | Natural Gas Utility | ||
Property, plant and equipment | ||
Property, plant, and equipment, gross | 773.1 | 729.9 |
Nonutility operations | Other | ||
Property, plant and equipment | ||
Property, plant, and equipment, gross | 15.2 | 15.2 |
Less: Accumulated depreciation | 10 | 9.4 |
Property, plant, and equipment, net | $5.20 | $5.80 |
JOINTLY_OWNED_UTILITY_FACILITI2
JOINTLY OWNED UTILITY FACILITIES (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | MW |
Weston 4 | |
Share of significant jointly owned electric generating facilities | |
Ownership (as a percent) | 70.00% |
Our share of rated capacity (in megawatts) | 374.5 |
Utility plant | $581.90 |
Accumulated depreciation | -132.6 |
Construction work in progress | 2.7 |
Columbia Energy Center Units 1 and 2 | |
Share of significant jointly owned electric generating facilities | |
Ownership (as a percent) | 31.80% |
Our share of rated capacity (in megawatts) | 335.2 |
Utility plant | 390.7 |
Accumulated depreciation | -116.2 |
Construction work in progress | 10.1 |
Edgewater Unit 4 | |
Share of significant jointly owned electric generating facilities | |
Ownership (as a percent) | 31.80% |
Our share of rated capacity (in megawatts) | 105 |
Utility plant | 42.9 |
Accumulated depreciation | -29.6 |
Construction work in progress | $0.70 |
REGULATORY_ASSETS_AND_LIABILIT2
REGULATORY ASSETS AND LIABILITIES - REGULATORY ASSETS (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Regulatory assets | ||
Current assets | $25 | $46.20 |
Long-term assets | 433.5 | 342.5 |
Total regulatory assets | 458.5 | 388.7 |
Other Disclosures | ||
Environmental remediation liabilities | 86.3 | 64.4 |
Unrecognized pension and other postretirement benefit costs | ||
Regulatory assets | ||
Total regulatory assets | 185.6 | 130.6 |
Environmental remediation costs (net of insurance recoveries) | ||
Regulatory assets | ||
Total regulatory assets | 103.8 | 80.1 |
Other Disclosures | ||
Environmental remediation liabilities | 86.3 | |
Termination of a tolling agreement with Fox Energy Company LLC | ||
Regulatory assets | ||
Total regulatory assets | 44.6 | 50 |
Income tax related items | ||
Regulatory assets | ||
Total regulatory assets | 32.7 | 26.9 |
Crane Creek production tax credits | ||
Regulatory assets | ||
Total regulatory assets | 32.2 | 33.6 |
Other Disclosures | ||
Period over which grant received will be reflected in income through reduction of depreciation and amortization expense | 12 years | |
De Pere Energy Center | ||
Regulatory assets | ||
Total regulatory assets | 21.4 | 23.8 |
Energy costs recoverable through rate adjustments | ||
Regulatory assets | ||
Total regulatory assets | 12.6 | 0 |
Asset retirement obligations | ||
Regulatory assets | ||
Total regulatory assets | 5.6 | 6 |
Derivatives | ||
Regulatory assets | ||
Total regulatory assets | 8 | 3.3 |
Potential new electric generator at Fox Energy Center | ||
Regulatory assets | ||
Total regulatory assets | 3.7 | 0 |
Pension and other postretirement costs recoverable through rate adjustments | ||
Regulatory assets | ||
Total regulatory assets | 0 | 9.4 |
Decoupling | ||
Regulatory assets | ||
Total regulatory assets | 0 | 7.9 |
Weston 3 lightning strike | ||
Regulatory assets | ||
Total regulatory assets | 0 | 3.6 |
Other | ||
Regulatory assets | ||
Total regulatory assets | $8.30 | $13.50 |
REGULATORY_ASSETS_AND_LIABILIT3
REGULATORY ASSETS AND LIABILITIES - REGULATORY LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Regulatory Liabilities | ||
Current liabilities | $21.20 | $38 |
Long-term liabilities | 303.3 | 286.3 |
Total regulatory liabilities | 324.5 | 324.3 |
Removal costs | ||
Regulatory Liabilities | ||
Total regulatory liabilities | 243.9 | 238 |
Unrecognized pension and other postretirement benefit costs | ||
Regulatory Liabilities | ||
Total regulatory liabilities | 42.4 | 18.5 |
Decoupling | ||
Regulatory Liabilities | ||
Total regulatory liabilities | 12.3 | 24.3 |
Crane Creek depreciation deferral | ||
Regulatory Liabilities | ||
Total regulatory liabilities | 8.7 | 9 |
Energy costs refundable through rate adjustments | ||
Regulatory Liabilities | ||
Total regulatory liabilities | 6 | 21.9 |
Fox Energy Center | ||
Regulatory Liabilities | ||
Total regulatory liabilities | 4.6 | 5.6 |
Other Disclosures | ||
Amount of allowance for earnings on equity capitalized for rate making purposes not included in the deferral | 22.8 | 22.1 |
Energy efficiency programs | ||
Regulatory Liabilities | ||
Total regulatory liabilities | 3.7 | 4.1 |
Other | ||
Regulatory Liabilities | ||
Total regulatory liabilities | $2.90 | $2.90 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Changes in the carrying amount of goodwill | $0 | $0 | |
Goodwill impairment loss | 0 | ||
Amortization expense for the next five years | |||
Future amortization expense period | 5 years | ||
Regulatory assets | |||
Contractual service agreements | |||
Amortization expense | 0.3 | 0 | |
Amortization expense for the next five years | |||
Amortization expense, 2015 | 1 | ||
Amortization expense, 2016 | 1 | ||
Amortization expense, 2017 | 0.5 | ||
Amortization expense, 2018 | 0 | ||
Amortization expense, 2019 | 0 | ||
Depreciation and amortization | |||
Contractual service agreements | |||
Amortization expense | 2.2 | 1.8 | |
Amortization expense for the next five years | |||
Amortization expense, 2015 | 2.2 | ||
Amortization expense, 2016 | 2.2 | ||
Amortization expense, 2017 | 1.7 | ||
Amortization expense, 2018 | 1.2 | ||
Amortization expense, 2019 | 1.2 | ||
Contractual service agreements | |||
Contractual service agreements | |||
Contractual service agreements, gross carrying amount | 15.6 | 15.6 | |
Contractual service agreements, accumulated amortization | -4.3 | -1.8 | |
Contractual service agreements, net carrying amount | $11.30 | $13.80 | |
Contractual service agreements with shortened amortization period | 1 | ||
Weighted-average amortization period | 4 years | ||
Recovery period | 7 years |
LEASES_Details
LEASES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Rental expense attributable to operating leases | $1.60 | $2.30 | $2.40 |
Future minimum rental obligations under noncancelable operating leases | |||
2015 | 0.5 | ||
2016 | 0.8 | ||
2017 | 0.8 | ||
2018 | 0.6 | ||
2019 | 0.4 | ||
Later years | 12.7 | ||
Total rental obligations | $15.80 |
SHORTTERM_DEBT_AND_LINES_OF_CR2
SHORT-TERM DEBT AND LINES OF CREDIT OUTSTANDING (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2013 |
Short-term borrowings | ||||
Short-term borrowings outstanding | $145.10 | $25.60 | ||
Commercial paper | ||||
Short-term borrowings | ||||
Short-term borrowings outstanding | 145.1 | 25.6 | 95.4 | |
Average interest rate (as a percent) | 0.32% | 0.14% | 0.24% | |
Average amount of short-term borrowings outstanding | 43.3 | 80.8 | 150.2 | |
Short-term notes payable | ||||
Short-term borrowings | ||||
Short-term borrowings outstanding | 0 | 0 | 0 | 200 |
Average amount of short-term borrowings outstanding | $0 | $130.40 | $0 |
SHORTTERM_DEBT_AND_LINES_OF_CR3
SHORT-TERM DEBT AND LINES OF CREDIT CAPACITY (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term borrowings | |||
Total short-term credit capacity | $250 | $250 | |
Short-term borrowings outstanding | 145.1 | 25.6 | |
Available capacity under existing agreements | 104.9 | 224.4 | |
Debt to capitalization ratio required to be maintained (as a percent) | 65.00% | ||
Revolving credit facility maturing on May 17, 2014 | |||
Short-term borrowings | |||
Total short-term credit capacity | 0 | 135 | |
Revolving Credit Facility, Maturing May 7, 2015 | |||
Short-term borrowings | |||
Total short-term credit capacity | 135 | 0 | |
Revolving credit facility maturing on June 13, 2017 | |||
Short-term borrowings | |||
Total short-term credit capacity | 115 | 115 | |
Commercial paper | |||
Short-term borrowings | |||
Short-term borrowings outstanding | $145.10 | $25.60 | $95.40 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Long-term debt | ||
Current portion of long-term debt | $125 | $0 |
Long-term Debt, Fiscal Year Maturity | ||
2015 | 125 | |
2016 | 0 | |
2017 | 125 | |
2018 | 0 | |
2019 | 0 | |
Later Years | 925.1 | |
Total | 1,175.10 | 1,175.10 |
Senior Notes 6.375 Percent, Due 2015 | ||
Long-term debt | ||
Interest rate stated percentage | 6.38% | |
Current portion of long-term debt | $125 |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes to asset retirement obligations | |||
Asset retirement obligations at beginning of period | $18 | $16.70 | $18.60 |
Accretion | 1 | 0.9 | 1 |
Revisions to estimated cash flows | 1.5 | 0.5 | -2.5 |
Settlements | -0.2 | -0.1 | -0.4 |
Asset retirement obligations at end of period | $20.30 | $18 | $16.70 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred income tax assets | ||
Total deferred income tax assets | 4.4 | $3.50 |
Deferred income tax liabilities | ||
Plant-related | 591 | 491.7 |
Employee benefits | 83.9 | 81 |
Regulatory deferrals | 42.4 | 44.4 |
Other | 13 | 16.7 |
Total deferred income tax liabilities | 730.3 | 633.8 |
Balance sheet presentation | ||
Current deferred income tax liabilities - included in other current liabilities | 3.8 | 10.8 |
Long-term deferred income tax liabilities | 722.1 | 619.5 |
Total net deferred income tax liabilities | 725.9 | 630.3 |
Income taxes, additional disclosures | ||
Deferred tax credit carryforwards of alternative minimum tax credits | 1.7 | |
Deferred tax credit carryforwards of general business credits | 1.9 | |
Net regulatory asset for regulatory tax effects | 32.7 | $25.90 |
General business credits | ||
Income taxes, additional disclosures | ||
Carryback period of general business tax credits | 1 year | |
Carryforward period of general business tax credits | 20 years |
INCOME_TAXES_INCOME_TAXES_PROV
INCOME TAXES INCOME TAXES PROVISION (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current provision | |||
Federal | ($12.80) | ($1.30) | $24.80 |
State | 6.7 | 3.4 | 4.2 |
Total current provision | -6.1 | 2.1 | 29 |
Deferred provision | |||
Federal | 84.3 | 71.5 | 27.8 |
State | 6.6 | 8.3 | 5.9 |
Total deferred provision | 90.9 | 79.8 | 33.7 |
Interest | 0.2 | 0.3 | 0.1 |
Provision for income taxes | 84.7 | 81.9 | 62.6 |
Deferral | |||
Deferred provision | |||
Investment tax credits | 0 | 0 | 0.2 |
Amortization | |||
Deferred provision | |||
Investment tax credits | ($0.30) | ($0.30) | ($0.40) |
INCOME_TAXES_RECONCILIATION_De
INCOME TAXES RECONCILIATION (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of federal income taxes to the provision for income taxes reported in the income statement (as a percent) | |||
Statutory federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income tax rate, net (as a percent) | 4.80% | 4.80% | 4.40% |
Benefits and compensation (as a percent) | -1.00% | -0.90% | -3.60% |
Federal tax credits (as a percent) | 0.00% | 0.00% | -3.50% |
Other differences, net (as a percent) | -1.20% | -1.60% | -0.60% |
Effective income tax rate (as a percent) | 37.60% | 37.30% | 31.70% |
Reconciliation of federal income taxes to the provision for income taxes reported in the income statement | |||
Statutory federal income tax | $78,900,000 | $76,900,000 | $69,100,000 |
State income taxes, net | 10,900,000 | 10,500,000 | 8,700,000 |
Benefits and compensation | -2,200,000 | -1,900,000 | -7,200,000 |
Federal tax credits | 0 | 0 | -7,000,000 |
Other differences, net | -2,900,000 | -3,600,000 | -1,000,000 |
Effective income tax | 84,700,000 | 81,900,000 | 62,600,000 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Balance at the beginning of the period | 0 | 300,000 | 500,000 |
Increase related to tax positions taken in prior years | 0 | 700,000 | 0 |
Decrease related to tax positions taken in prior years | 0 | -400,000 | 0 |
Decrease related to settlements | 0 | -600,000 | 0 |
Decrease related to lapse of statutes | 0 | 0 | -200,000 |
Balance at the end of the period | 0 | 0 | 300,000 |
Unrecognized tax benefits, additional disclosures | |||
Accrued interest related to unrecognized tax benefits | 0 | 0 | |
Accrued penalties related to unrecognized tax benefits | $0 | $0 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - UNCONDITIONAL PURCHASE OBLIGATIONS (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Minimum future commitments for purchase obligations | |
Total Amounts Committed | $1,243.10 |
2015 | 223.5 |
2016 | 118.1 |
2017 | 128.8 |
2018 | 130.3 |
2019 | 95.3 |
Later Years | 547.1 |
Purchased power | Electric Utility | |
Minimum future commitments for purchase obligations | |
Total Amounts Committed | 836.8 |
2015 | 122.8 |
2016 | 42.8 |
2017 | 53.3 |
2018 | 55.9 |
2019 | 57 |
Later Years | 505 |
Coal supply and transportation | Electric Utility | |
Minimum future commitments for purchase obligations | |
Total Amounts Committed | 162.8 |
2015 | 55.3 |
2016 | 31.9 |
2017 | 32.6 |
2018 | 31.9 |
2019 | 11.1 |
Later Years | 0 |
Natural gas utility supply and transportation | Natural Gas Utility | |
Minimum future commitments for purchase obligations | |
Total Amounts Committed | 243.5 |
2015 | 45.4 |
2016 | 43.4 |
2017 | 42.9 |
2018 | 42.5 |
2019 | 27.2 |
Later Years | $42.10 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - ENVIRONMENTAL MATTERS (Details) (USD $) | 1 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2013 | Jun. 30, 2013 | Oct. 31, 2014 | Dec. 31, 2014 |
MW | ||||
Weston and Pulliam plants | Electric Utility | ||||
Air Permitting Violation Claims | ||||
Beneficial environmental project amount | $6 | |||
Civil penalty and/or legal fees | 1.2 | |||
Columbia and Edgewater jointly-owned plants | Electric Utility | ||||
Air Permitting Violation Claims | ||||
Beneficial environmental project amount | 1.3 | |||
Civil penalty and/or legal fees | 0.4 | |||
Mercury emission | Electric Utility | ||||
Mercury and Interstate Air Quality Rules | ||||
Percentage mercury emission reduction required by the State of Wisconsin's mercury rule through 2014 | 40.00% | |||
Level of electric generating units above which a 90% reduction in mercury emissions from fuel combusted is required by 2015 (in MW) | 150 | |||
Estimated capital cost to achieve required emission reduction | 9 | |||
Expended environmental capital costs to achieve required emission reduction | 8 | |||
Sulfur dioxide and nitrogen oxide | Electric Utility | ||||
Mercury and Interstate Air Quality Rules | ||||
EPA change to compliance deadline for Cross State Air Pollution Rule | 3 years | |||
Manufactured gas plant remediation | Natural Gas Utility | ||||
Manufactured Gas Plant Remediation | ||||
Number of environmental remediation sites | 10 | |||
Number of environmental remediation sites transferred to the EPA Superfund Alternative Sites Program | 7 | |||
Liabilities estimated and accrued for future undiscounted investigation and cleanup costs for all sites | 86.3 | |||
Cash expenditures for environmental remediation not yet recovered in rates | 16 | |||
Regulatory assets recorded for cash and estimated future remediation expenditures, net of insurance recoveries received | $102.30 |
EMPLOYEE_BENEFIT_PLANS_CHANGE_
EMPLOYEE BENEFIT PLANS - CHANGE IN BENEFIT OBLIGATIONS AND PLAN ASSETS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amounts recognized on the entity's balance sheets related to the funded status of the benefit plans | |||
Long-term assets | $128.90 | $145.10 | |
Long-term liabilities | 37.6 | 76.4 | |
Information for pension plans with an accumulated benefit obligation in excess of plan assets | |||
Fair value of plan assets | 0 | ||
Pension Benefits | |||
Change in benefit obligation | |||
Obligation at January 1 | 717.5 | 772.6 | |
Service cost | 8.6 | 10.8 | 12.8 |
Interest cost | 34.4 | 30.6 | 34 |
Plan amendments | 0 | 0 | |
Transfer to affiliates | -12.1 | -6.6 | |
Actuarial loss (gain), net | 73 | -63.6 | |
Participant contributions | 0 | 0 | |
Benefit payments | -29.6 | -26.3 | |
Federal subsidy on benefits paid | 0 | 0 | |
Obligation at December 31 | 791.8 | 717.5 | 772.6 |
Change in fair value of plan assets | |||
Fair value of plan assets at January 1 | 839.1 | 719.6 | |
Actual return on plan assets | 53.1 | 112.1 | |
Employer contributions | 46.9 | 40.3 | |
Participant contributions | 0 | 0 | |
Benefit payments | -29.6 | -26.3 | |
Transfer to affiliates | -12.1 | -6.6 | |
Fair value of plan assets at December 31 | 897.4 | 839.1 | 719.6 |
Funded status at December 31 | 105.6 | 121.6 | |
Amounts recognized on the entity's balance sheets related to the funded status of the benefit plans | |||
Long-term assets | 128.9 | 145.1 | |
Current liabilities | 1.5 | 3.1 | |
Long-term liabilities | 21.8 | 20.4 | |
Total net assets (liabilities) | 105.6 | 121.6 | |
Accumulated benefit obligation | 717.4 | 658.3 | |
Information for pension plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 23.3 | 23.5 | |
Accumulated benefit obligation | 21.5 | 21.8 | |
Other Benefits | |||
Change in benefit obligation | |||
Obligation at January 1 | 292.7 | 328.5 | |
Service cost | 7.7 | 10.6 | 8.5 |
Interest cost | 11.5 | 13.4 | 15.1 |
Plan amendments | -74.4 | 0.1 | |
Transfer to affiliates | 0 | 0 | |
Actuarial loss (gain), net | 24 | -51.4 | |
Participant contributions | 0.5 | 0.6 | |
Benefit payments | -10.4 | -10 | |
Federal subsidy on benefits paid | 0.9 | 0.9 | |
Obligation at December 31 | 252.5 | 292.7 | 328.5 |
Change in fair value of plan assets | |||
Fair value of plan assets at January 1 | 236.5 | 213.7 | |
Actual return on plan assets | 7.4 | 29 | |
Employer contributions | 2.6 | 3.2 | |
Participant contributions | 0.5 | 0.6 | |
Benefit payments | -10.4 | -10 | |
Transfer to affiliates | 0 | 0 | |
Fair value of plan assets at December 31 | 236.6 | 236.5 | 213.7 |
Funded status at December 31 | -15.9 | -56.2 | |
Amounts recognized on the entity's balance sheets related to the funded status of the benefit plans | |||
Long-term assets | 0 | 0 | |
Current liabilities | 0.1 | 0.2 | |
Long-term liabilities | 15.8 | 56 | |
Total net assets (liabilities) | ($15.90) | ($56.20) |
EMPLOYEE_BENEFIT_PLANS_NET_PER
EMPLOYEE BENEFIT PLANS - NET PERIODIC BENEFIT COST (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits | |||
Net regulatory assets | |||
Net actuarial losses | $178.70 | $110.20 | |
Prior service cost (credit) | 1.8 | 2.4 | |
Total | 180.5 | 112.6 | |
Estimated amounts that will be amortized as a component of net periodic benefit cost during 2014 | |||
Net actuarial losses | 19.6 | ||
Prior service costs (credits) | 0.2 | ||
Total 2015 - estimated amortization | 19.8 | ||
Components of net periodic benefit cost (including amounts capitalized to the balance sheets) | |||
Service cost | 8.6 | 10.8 | 12.8 |
Interest cost | 34.4 | 30.6 | 34 |
Expected return on plan assets | -64.1 | -57.2 | -55.4 |
Loss on plan settlement | 0.4 | 0 | 0 |
Amortization of transition obligation | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0.6 | 3.6 | 4.5 |
Amortization of net actuarial loss | 15 | 24 | 14.9 |
Net periodic benefit cost | -5.1 | 11.8 | 10.8 |
Other Benefits | |||
Net regulatory assets | |||
Net actuarial losses | 41 | 11.5 | |
Prior service cost (credit) | -78.3 | -12 | |
Total | -37.3 | -0.5 | |
Estimated amounts that will be amortized as a component of net periodic benefit cost during 2014 | |||
Net actuarial losses | 4.2 | ||
Prior service costs (credits) | -9.3 | ||
Total 2015 - estimated amortization | -5.1 | ||
Components of net periodic benefit cost (including amounts capitalized to the balance sheets) | |||
Service cost | 7.7 | 10.6 | 8.5 |
Interest cost | 11.5 | 13.4 | 15.1 |
Expected return on plan assets | -16 | -14.8 | -14.6 |
Loss on plan settlement | 0 | 0 | 0 |
Amortization of transition obligation | 0 | 0 | 0.2 |
Amortization of prior service cost (credit) | -8 | -2.1 | -3 |
Amortization of net actuarial loss | 2.8 | 7.5 | 5.7 |
Net periodic benefit cost | ($2) | $14.60 | $11.90 |
EMPLOYEE_BENEFIT_PLANS_ASSUMPT
EMPLOYEE BENEFIT PLANS - ASSUMPTIONS (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Weighted average assumptions used | ||||
Expected return on assets during next fiscal year | 7.75% | |||
Pension Benefits | ||||
Weighted average assumptions used | ||||
Discount rate | 4.08% | 4.92% | 4.08% | |
Rate of compensation increase | 4.23% | 4.25% | 4.23% | |
Discount rate | 4.92% | 4.07% | 5.10% | |
Expected return on plan assets | 8.00% | 8.00% | 8.25% | |
Rate of compensation increase | 4.25% | 4.26% | 4.26% | |
Pension Benefits | Equity securities: | ||||
Target asset allocations | ||||
Target asset allocations (as a percent) | 70.00% | 60.00% | ||
Pension Benefits | Fixed income securities: | ||||
Target asset allocations | ||||
Target asset allocations (as a percent) | 30.00% | 40.00% | ||
Other Benefits | ||||
Weighted average assumptions used | ||||
Discount rate | 4.11% | 4.98% | 4.11% | |
Assumed medical cost trend rate (as a percent) | 6.00% | 6.50% | ||
Ultimate trend rate (as a percent) | 5.00% | 5.00% | ||
Year ultimate trend rate is reached | 2023 | 2019 | 2023 | |
Assumed dental cost trend rate (as a percent) | 5.00% | 5.00% | 5.00% | |
Discount rate | 4.78% | 4.01% | 5.04% | |
Expected return on plan assets | 8.00% | 8.00% | 8.25% | |
Effects of a one-percentage-point change in assumed health care cost trend rates | ||||
Effect of one-percentage-point increase on total of service and interest cost components of net periodic postretirement health care benefit cost | 3.3 | |||
Effect of one-percentage-point decrease on total of service and interest cost components of net periodic postretirement health care benefit cost | -2.6 | |||
Effect of one-percentage-point increase on the health care component of the accumulated postretirement benefit obligation | 34.4 | |||
Effect of one-percentage-point decrease on the health care component of the accumulated postretirement benefit obligation | -33.9 | |||
Other Benefits | Under age 65 | ||||
Weighted average assumptions used | ||||
Assumed medical cost trend rate (as a percent) | 6.50% | 7.00% | 7.00% | |
Ultimate trend rate (as a percent) | 5.00% | 5.00% | 5.00% | |
Year ultimate trend rate is reached | 2019 | 2019 | 2016 | 2019 |
Other Benefits | Over age 65 | ||||
Weighted average assumptions used | ||||
Assumed medical cost trend rate (as a percent) | 6.50% | 7.00% | 7.50% | |
Ultimate trend rate (as a percent) | 5.00% | 5.00% | 5.00% | |
Year ultimate trend rate is reached | 2019 | 2019 | 2016 | 2019 |
Other Benefits | Equity securities: | ||||
Target asset allocations | ||||
Target asset allocations (as a percent) | 70.00% | |||
Other Benefits | Fixed income securities: | ||||
Target asset allocations | ||||
Target asset allocations (as a percent) | 30.00% |
EMPLOYEE_BENEFIT_PLANS_PENSION
EMPLOYEE BENEFIT PLANS - PENSION AND OTHER POSTRETIREMENT PLAN ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Pension Plan Assets | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | $904.70 | $846.60 | |
401(h) other benefit plan assets invested as pension assets | -8.8 | -8.2 | |
Total | 895.9 | 838.4 | |
Pension Plan Assets | Cash and cash equivalents | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 24.9 | 20.8 | |
Pension Plan Assets | United States equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 251.4 | 294 | |
Pension Plan Assets | International equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 280.3 | 292.8 | |
Pension Plan Assets | United States government | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 54 | 50.4 | |
Pension Plan Assets | Foreign government debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 12.1 | 10.4 | |
Pension Plan Assets | Corporate debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 250.5 | 135.5 | |
Pension Plan Assets | Asset-backed securities | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 33.3 | ||
Pension Plan Assets | Other | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 31.5 | 9.4 | |
Pension Plan Assets | Level 1 | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 149.3 | 116.7 | |
401(h) other benefit plan assets invested as pension assets | -1.5 | -1.1 | |
Total | 147.8 | 115.6 | |
Pension Plan Assets | Level 1 | Cash and cash equivalents | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 1.1 | |
Pension Plan Assets | Level 1 | United States equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 53.6 | 54.1 | |
Pension Plan Assets | Level 1 | International equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 54.4 | 61.5 | |
Pension Plan Assets | Level 1 | United States government | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 41.3 | 0 | |
Pension Plan Assets | Level 1 | Foreign government debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Pension Plan Assets | Level 1 | Corporate debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Pension Plan Assets | Level 1 | Asset-backed securities | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | ||
Pension Plan Assets | Level 1 | Other | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Pension Plan Assets | Level 2 | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 755.4 | 727.9 | |
401(h) other benefit plan assets invested as pension assets | -7.3 | -7.1 | |
Total | 748.1 | 720.8 | |
Pension Plan Assets | Level 2 | Cash and cash equivalents | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 24.9 | 19.7 | |
Pension Plan Assets | Level 2 | United States equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 197.8 | 239.9 | |
Pension Plan Assets | Level 2 | International equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 225.9 | 231.3 | |
Pension Plan Assets | Level 2 | United States government | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 12.7 | 50.4 | |
Pension Plan Assets | Level 2 | Foreign government debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 12.1 | 9.1 | |
Pension Plan Assets | Level 2 | Corporate debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 250.5 | 134.8 | |
Pension Plan Assets | Level 2 | Asset-backed securities | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 33.3 | ||
Pension Plan Assets | Level 2 | Other | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 31.5 | 9.4 | |
Pension Plan Assets | Level 3 | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 2 | 2.7 |
401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Total | 0 | 2 | |
Pension Plan Assets | Level 3 | Cash and cash equivalents | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Pension Plan Assets | Level 3 | United States equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Pension Plan Assets | Level 3 | International equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Pension Plan Assets | Level 3 | United States government | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Pension Plan Assets | Level 3 | Foreign government debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 1.3 | 2.2 |
Pension Plan Assets | Level 3 | Corporate debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0.7 | 0.5 |
Pension Plan Assets | Level 3 | Asset-backed securities | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | ||
Pension Plan Assets | Level 3 | Other | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 227.9 | 228.5 | |
401(h) other benefit plan assets invested as pension assets | 8.8 | 8.2 | |
Total | 236.7 | 236.7 | |
Other Benefit Plan Assets | Cash and cash equivalents | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 6.2 | 2.3 | |
Other Benefit Plan Assets | United States equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 77.2 | 80.7 | |
Other Benefit Plan Assets | International equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 83 | 80 | |
Other Benefit Plan Assets | United States government | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 61.3 | 65.6 | |
Other Benefit Plan Assets | Foreign government debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Corporate debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Asset-backed securities | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | ||
Other Benefit Plan Assets | Other | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0.2 | -0.1 | |
Other Benefit Plan Assets | Level 1 | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 98.5 | 95.8 | |
401(h) other benefit plan assets invested as pension assets | 1.5 | 1.1 | |
Total | 100 | 96.9 | |
Other Benefit Plan Assets | Level 1 | Cash and cash equivalents | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 4.6 | 0 | |
Other Benefit Plan Assets | Level 1 | United States equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 14.8 | 14.2 | |
Other Benefit Plan Assets | Level 1 | International equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 17.6 | 16.7 | |
Other Benefit Plan Assets | Level 1 | United States government | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 61.3 | 65 | |
Other Benefit Plan Assets | Level 1 | Foreign government debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Level 1 | Corporate debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Level 1 | Asset-backed securities | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | ||
Other Benefit Plan Assets | Level 1 | Other | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0.2 | -0.1 | |
Other Benefit Plan Assets | Level 2 | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 129.4 | 132.7 | |
401(h) other benefit plan assets invested as pension assets | 7.3 | 7.1 | |
Total | 136.7 | 139.8 | |
Other Benefit Plan Assets | Level 2 | Cash and cash equivalents | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 1.6 | 2.3 | |
Other Benefit Plan Assets | Level 2 | United States equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 62.4 | 66.5 | |
Other Benefit Plan Assets | Level 2 | International equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 65.4 | 63.3 | |
Other Benefit Plan Assets | Level 2 | United States government | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0.6 | |
Other Benefit Plan Assets | Level 2 | Foreign government debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Level 2 | Corporate debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Level 2 | Asset-backed securities | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | ||
Other Benefit Plan Assets | Level 2 | Other | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Level 3 | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Total | 0 | 0 | |
Other Benefit Plan Assets | Level 3 | Cash and cash equivalents | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Level 3 | United States equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Level 3 | International equity | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Level 3 | United States government | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Level 3 | Foreign government debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Level 3 | Corporate debt | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | 0 | |
Other Benefit Plan Assets | Level 3 | Asset-backed securities | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | 0 | ||
Other Benefit Plan Assets | Level 3 | Other | |||
Investments recorded at fair value, by asset class | |||
Fair value of plan assets before the adjustment for 401(h) other benefit plan assets invested as pension assets | $0 | $0 |
EMPLOYEE_BENEFIT_PLANS_CHANGES
EMPLOYEE BENEFIT PLANS - CHANGES IN THE FAIR VALUE OF PLAN ASSETS (Details) (Pension Benefits, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of changes in the fair value of pension plan assets | ||
Beginning balance at January 1 | $846.60 | |
Net realized and unrealized losses | 53.1 | 112.1 |
Ending balance at December 31 | 904.7 | 846.6 |
Level 3 | ||
Reconciliation of changes in the fair value of pension plan assets | ||
Beginning balance at January 1 | 2 | 2.7 |
Net realized and unrealized losses | 0.2 | -0.3 |
Purchases | 0.3 | |
Sales | -2.2 | -1.3 |
Transfers into Level 3 | 0.8 | |
Transfers out of Level 3 | -0.2 | |
Ending balance at December 31 | 0 | 2 |
Net unrealized (gains) losses related to assets still held at the end of the period | 0 | -0.3 |
Foreign government debt | ||
Reconciliation of changes in the fair value of pension plan assets | ||
Ending balance at December 31 | 12.1 | 10.4 |
Foreign government debt | Level 3 | ||
Reconciliation of changes in the fair value of pension plan assets | ||
Beginning balance at January 1 | 1.3 | 2.2 |
Net realized and unrealized losses | 0.1 | -0.1 |
Purchases | 0.3 | |
Sales | -1.4 | -1.1 |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending balance at December 31 | 0 | 1.3 |
Net unrealized (gains) losses related to assets still held at the end of the period | 0 | -0.1 |
Corporate debt | ||
Reconciliation of changes in the fair value of pension plan assets | ||
Ending balance at December 31 | 250.5 | 135.5 |
Corporate debt | Level 3 | ||
Reconciliation of changes in the fair value of pension plan assets | ||
Beginning balance at January 1 | 0.7 | 0.5 |
Net realized and unrealized losses | 0.1 | -0.2 |
Purchases | 0 | |
Sales | -0.8 | -0.2 |
Transfers into Level 3 | 0.8 | |
Transfers out of Level 3 | -0.2 | |
Ending balance at December 31 | 0 | 0.7 |
Net unrealized (gains) losses related to assets still held at the end of the period | $0 | ($0.20) |
EMPLOYEE_BENEFIT_PLANS_DEFINED
EMPLOYEE BENEFIT PLANS - DEFINED CONTRIBUTION BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Contribution Benefit Plans | |||
Total costs incurred for defined contribution benefit plans | $8.60 | $8.20 | $5.50 |
Deferred compensation plans | |||
Deferred compensation obligation classified as an equity instrument | 7 | 8 | |
Deferred compensation obligation associated with deferrals that allow for distribution in cash | 15.5 | 15.1 | |
Costs incurred under deferred compensation arrangement | 1.9 | 1.5 | 1.1 |
Pension Benefits | |||
Employee Benefit Plans | |||
Expected contributions to the plans during the next fiscal year | 1.5 | ||
Expected payments, reflecting expected future service | |||
2015 | 41.2 | ||
2016 | 42.3 | ||
2017 | 44.3 | ||
2018 | 44.1 | ||
2019 | 45.6 | ||
2020 through 2024 | 224.3 | ||
Other Benefits | |||
Employee Benefit Plans | |||
Expected contributions to the plans during the next fiscal year | 1.2 | ||
Expected payments, reflecting expected future service | |||
2015 | 9.4 | ||
2016 | 10 | ||
2017 | 10.9 | ||
2018 | 11.7 | ||
2019 | 12.5 | ||
2020 through 2024 | $73.60 |
PREFERRED_STOCK_Details
PREFERRED STOCK (Details) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred stock | ||
Authorized shares | 1,000,000 | |
Mandatorily redeemable shares | 0 | |
Par value (in dollars per share) | $100 | |
Shares outstanding | 511,882 | 511,882 |
Carrying value | $51.20 | $51.20 |
Notice period for redemption of preferred stock | 30 days | |
Pre-emptive, subscription, or conversion rights | 0 | |
Sinking fund provisions | 0 | |
5.00% preferred stock series | ||
Preferred stock | ||
Series (as a percent) | 5.00% | |
Shares outstanding | 131,916 | 131,916 |
Carrying value | 13.2 | 13.2 |
5.04% preferred stock series | ||
Preferred stock | ||
Series (as a percent) | 5.04% | |
Shares outstanding | 29,983 | 29,983 |
Carrying value | 3 | 3 |
5.08% preferred stock series | ||
Preferred stock | ||
Series (as a percent) | 5.08% | |
Shares outstanding | 49,983 | 49,983 |
Carrying value | 5 | 5 |
6.76% preferred stock series | ||
Preferred stock | ||
Series (as a percent) | 6.76% | |
Shares outstanding | 150,000 | 150,000 |
Carrying value | 15 | 15 |
6.88% preferred stock series | ||
Preferred stock | ||
Series (as a percent) | 6.88% | |
Shares outstanding | 150,000 | 150,000 |
Carrying value | $15 | $15 |
COMMON_EQUITY_Details
COMMON EQUITY (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Dividend Payment Restrictions | |||
Maximum debt to capitalization ratio required to be maintained (as a percent) | 65.00% | ||
Total restricted retained earnings | $521.80 | ||
Equity in undistributed earnings of 50% or less owned investees accounted for by the equity method | 30.8 | ||
Capital Transactions with Parent | |||
Common stock dividends paid | 111.8 | 108.6 | 105.5 |
Minimum | |||
Dividend Payment Restrictions | |||
Percentage of common stockholders equity to total capitalization required to be maintained | 25.00% | ||
Minimum | Public Service Commission of Wisconsin (PSCW) | |||
Dividend Payment Restrictions | |||
Common equity ratio required to be maintained (as a percent) | 51.00% | ||
Maximum | |||
Dividend Payment Restrictions | |||
Equity method investment, ownership interest (as a percent) | 50.00% | ||
Maximum | Public Service Commission of Wisconsin (PSCW) | |||
Dividend Payment Restrictions | |||
Percentage of previous year's dividend as restriction on current year dividends | 103.00% | ||
Integrys Energy Group | |||
Capital Transactions with Parent | |||
Receipt of capital contribution | 55 | ||
Common stock dividends paid | $111.80 |
GUARANTEES_Details
GUARANTEES (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Guarantor Obligations | |
Total guarantees | $1.20 |
Guarantees expiring in less than one year | 0.7 |
Guarantees expiring in over one year | 0.5 |
Standby Letters of Credit | |
Guarantor Obligations | |
Total guarantees | 0.1 |
Guarantees expiring in less than one year | 0.1 |
Guarantees expiring in over one year | 0 |
Surety Bonds | |
Guarantor Obligations | |
Total guarantees | 0.6 |
Guarantees expiring in less than one year | 0.6 |
Guarantees expiring in over one year | 0 |
Other guarantees | |
Guarantor Obligations | |
Total guarantees | 0.5 |
Guarantees expiring in less than one year | 0 |
Guarantees expiring in over one year | $0.50 |
STOCKBASED_COMPENSATION_STOCKB
STOCK-BASED COMPENSATION - STOCK-BASED COMPENSATION EXPENSE (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Information related to share based awards | |||
Total stock-based compensation expense | $11.10 | $5.20 | $6 |
Deferred income tax benefit | 4.4 | 2.1 | 2.4 |
Stock-based compensation cost capitalized | 0 | 0 | 0 |
Stock Options | |||
Information related to share based awards | |||
Total stock-based compensation expense | 1 | 0.7 | 0.7 |
Performance Stock Rights | |||
Information related to share based awards | |||
Total stock-based compensation expense | 6.3 | 1.1 | 1.9 |
Restricted Share Units | |||
Information related to share based awards | |||
Total stock-based compensation expense | $3.80 | $3.40 | $3.40 |
STOCKBASED_COMPENSATION_STOCK_
STOCK-BASED COMPENSATION - STOCK OPTIONS (Details) (Stock Options, USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options | |||
Weighted-average fair values along with the assumptions incorporated into the valuation models | |||
Weighted-average fair value per stock option (in dollars per share) | $6.70 | $6.03 | $6.30 |
Expected term | 8 years | 5 years | 5 years |
Risk-free interest rate minimum (as a percent) | 0.12% | 0.18% | 0.17% |
Risk-free interest rate maximum (as a percent) | 2.88% | 2.11% | 2.18% |
Expected dividend yield (as a percent) | 5.28% | 5.33% | 5.28% |
Expected volatility (as a percent) | 18.00% | 24.00% | 25.00% |
Stock Options | |||
Outstanding at the beginning of the period (in shares) | 49,993 | ||
Granted (in shares) | 13,890 | ||
Exercised (in shares) | -58,169 | ||
Outstanding at the end of the period (in shares) | 5,714 | 49,993 | |
Exercisable (in shares) | 0 | ||
Weighted-Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $53.03 | ||
Granted (in dollars per share) | $55.23 | ||
Exercised (in dollars per share) | $53.44 | ||
Outstanding at the end of the period (in dollars per share) | $54.18 | $53.03 | |
Weighted-Average Remaining Contractual Life (in Years) | |||
Outstanding at the end of the period | 7 years 6 months | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period (in dollars) | $0.10 | ||
Options exercised (in dollars) | $1 |
STOCKBASED_COMPENSATION_PERFOR
STOCK-BASED COMPENSATION - PERFORMANCE STOCK RIGHTS (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Performance Stock Rights | |||
Assumptions incorporated into the valuation models | |||
Risk-free interest rate minimum (as a percent) | 0.21% | 0.13% | 0.17% |
Risk-free interest rate maximum (as a percent) | 0.63% | 1.27% | 1.27% |
Expected volatility minimum (as a percent) | 18.00% | 15.00% | 14.00% |
Expected volatility maximum (as a percent) | 22.00% | 36.00% | 36.00% |
Additional Disclosures | |||
Compensation cost not yet recognized | $2 | ||
Weighted-average period over which compensation cost is to be recognized | 1 year 7 months | ||
Performance Stock Rights | Minimum | |||
Assumptions incorporated into the valuation models | |||
Expected dividend yield (as a percent) | 5.25% | 5.28% | 5.18% |
Performance Stock Rights | Maximum | |||
Assumptions incorporated into the valuation models | |||
Expected dividend yield (as a percent) | 5.33% | 5.34% | 5.34% |
Performance Stock Rights Accounted for as Equity Awards | |||
Performance Stock Rights | |||
Outstanding at the beginning of the period (in shares) | 5,561 | ||
Granted (in shares) | 1,113 | ||
Award modifications (in shares) | 2,295 | ||
Distributed (in shares) | -2,235 | ||
Adjustment for estimated payout and shares not distributed (in shares) | -2,831 | ||
Outstanding at the end of the period (in shares) | 3,903 | 5,561 | |
Weighted-Average Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $45.16 | ||
Granted (in dollars per share) | $44.28 | 48.5 | 52.7 |
Award modifications (in dollars per share) | $85.09 | ||
Distributed (in dollars per share) | $75.02 | ||
Adjustment for estimated payout and shares not distributed (in dollars per share) | $46.32 | ||
Outstanding at the end of the period (in dollars per share) | $58.03 | 45.16 | |
Performance Stock Rights Accounted for as Equity Awards | Performance stock rights with a performance period ending December 31, 2013 | |||
Performance Stock Rights | |||
Distributed (in shares) | 0 | ||
Performance Stock Rights Accounted for as Liability Awards | |||
Performance Stock Rights | |||
Outstanding at the beginning of the period (in shares) | 9,222 | ||
Granted (in shares) | 4,440 | ||
Award modifications (in shares) | -2,295 | ||
Distributed (in shares) | -1,240 | ||
Adjustment for estimated payout and shares not distributed (in shares) | -93 | ||
Outstanding at the end of the period (in shares) | 10,034 | ||
Weighted-Average Fair Value | |||
Outstanding at the end of the period, fair value as of the reporting date (in dollars per share) | $121.26 | ||
Performance Stock Rights Accounted for as Liability Awards | Performance stock rights with a performance period ending December 31, 2013 | |||
Performance Stock Rights | |||
Distributed (in shares) | 0 |
STOCKBASED_COMPENSATION_RESTRI
STOCK-BASED COMPENSATION - RESTRICTED SHARE UNITS (Details) (Restricted Share Units, USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Share Units | |||
Restricted Share Unit Awards | |||
Outstanding at the beginning of the period (in shares) | 67,741 | ||
Granted (in shares) | 28,725 | ||
Dividend equivalents (in shares) | 2,875 | ||
Vested and released (in shares) | -28,325 | ||
Transfers (in shares) | 332 | ||
Forfeited (in shares) | -804 | ||
Outstanding at the end of the period (in shares) | 70,544 | 67,741 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $52.06 | ||
Granted (in dollars per share) | $55.23 | $56.05 | $53.24 |
Dividend equivalents (in dollars per share) | $54.45 | ||
Vested and released (in dollars per share) | $49.50 | ||
Transfers (in dollars per share) | $54.55 | ||
Forfeited (in dollars per share) | $54.64 | ||
Outstanding at the end of the period (in dollars per share) | $54.46 | $52.06 | |
Additional Disclosures | |||
Compensation cost not yet recognized | $3.50 | ||
Weighted-average period over which compensation cost is to be recognized | 2 years 4 months | ||
Total intrinsic value of restricted share units vested and released | $1.50 | $1.60 | $1.50 |
FAIR_VALUE_ASSETS_AND_LIABILIT
FAIR VALUE - ASSETS AND LIABILITIES MEASURED ON A RECURRING BASIS (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Fair Value | ||
Risk Management Asset | $2.40 | $2.30 |
Liabilities | ||
Risk Management Liability | 3.1 | 7 |
Transfers Between the Levels of the Fair Value Hierarchy | ||
Fair Value Transfers, Amount | 0 | |
Coal contract | ||
Transfers Between the Levels of the Fair Value Hierarchy | ||
Fair Value, Level 3 to Level 2 Transfers, Amount | 1.2 | |
Fair value measurements on a recurring basis | Level 1 | ||
Fair Value | ||
Risk Management Asset | 0.7 | 0 |
Liabilities | ||
Risk Management Liability | 0.1 | 3.3 |
Fair value measurements on a recurring basis | Level 2 | ||
Fair Value | ||
Risk Management Asset | 0 | 0.1 |
Liabilities | ||
Risk Management Liability | 0 | 1.2 |
Fair value measurements on a recurring basis | Level 3 | ||
Fair Value | ||
Risk Management Asset | 1.7 | 2.2 |
Liabilities | ||
Risk Management Liability | 3 | 2.5 |
Fair value measurements on a recurring basis | Total | ||
Fair Value | ||
Risk Management Asset | 2.4 | 2.3 |
Liabilities | ||
Risk Management Liability | 3.1 | 7 |
Fair value measurements on a recurring basis | Natural gas contracts | Level 1 | ||
Fair Value | ||
Risk Management Asset | 0.6 | 0 |
Liabilities | ||
Risk Management Liability | 0.1 | 2.2 |
Fair value measurements on a recurring basis | Natural gas contracts | Level 2 | ||
Fair Value | ||
Risk Management Asset | 0 | 0.1 |
Liabilities | ||
Risk Management Liability | 0 | 0 |
Fair value measurements on a recurring basis | Natural gas contracts | Level 3 | ||
Fair Value | ||
Risk Management Asset | 0 | 0 |
Liabilities | ||
Risk Management Liability | 0 | 0 |
Fair value measurements on a recurring basis | Natural gas contracts | Total | ||
Fair Value | ||
Risk Management Asset | 0.6 | 0.1 |
Liabilities | ||
Risk Management Liability | 0.1 | 2.2 |
Fair value measurements on a recurring basis | FTRs | Level 1 | ||
Fair Value | ||
Risk Management Asset | 0 | 0 |
Liabilities | ||
Risk Management Liability | 0 | 0 |
Fair value measurements on a recurring basis | FTRs | Level 2 | ||
Fair Value | ||
Risk Management Asset | 0 | 0 |
Liabilities | ||
Risk Management Liability | 0 | 0 |
Fair value measurements on a recurring basis | FTRs | Level 3 | ||
Fair Value | ||
Risk Management Asset | 1.5 | 2.2 |
Liabilities | ||
Risk Management Liability | 0.3 | 0.3 |
Fair value measurements on a recurring basis | FTRs | Total | ||
Fair Value | ||
Risk Management Asset | 1.5 | 2.2 |
Liabilities | ||
Risk Management Liability | 0.3 | 0.3 |
Fair value measurements on a recurring basis | Petroleum product contracts | Level 1 | ||
Fair Value | ||
Risk Management Asset | 0.1 | |
Liabilities | ||
Risk Management Liability | 1.1 | |
Fair value measurements on a recurring basis | Petroleum product contracts | Level 2 | ||
Fair Value | ||
Risk Management Asset | 0 | |
Liabilities | ||
Risk Management Liability | 0 | |
Fair value measurements on a recurring basis | Petroleum product contracts | Level 3 | ||
Fair Value | ||
Risk Management Asset | 0 | |
Liabilities | ||
Risk Management Liability | 0 | |
Fair value measurements on a recurring basis | Petroleum product contracts | Total | ||
Fair Value | ||
Risk Management Asset | 0.1 | |
Liabilities | ||
Risk Management Liability | 1.1 | |
Fair value measurements on a recurring basis | Coal contract | Level 1 | ||
Fair Value | ||
Risk Management Asset | 0 | |
Liabilities | ||
Risk Management Liability | 0 | 0 |
Fair value measurements on a recurring basis | Coal contract | Level 2 | ||
Fair Value | ||
Risk Management Asset | 0 | |
Liabilities | ||
Risk Management Liability | 0 | 1.2 |
Fair value measurements on a recurring basis | Coal contract | Level 3 | ||
Fair Value | ||
Risk Management Asset | 0.2 | 0 |
Liabilities | ||
Risk Management Liability | 2.7 | 2.2 |
Fair value measurements on a recurring basis | Coal contract | Total | ||
Fair Value | ||
Risk Management Asset | 0.2 | |
Liabilities | ||
Risk Management Liability | $2.70 | $3.40 |
FAIR_VALUE_SIGNIFICANT_UNOBSER
FAIR VALUE - SIGNIFICANT UNOBSERVABLE INPUTS (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Risk Management Asset | $2.30 | $2.40 |
Risk Management Liability | 7 | 3.1 |
Fair value measurements on a recurring basis | Level 3 | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Risk Management Asset | 2.2 | 1.7 |
Risk Management Liability | 2.5 | 3 |
Fair value measurements on a recurring basis | Level 3 | FTRs | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Risk Management Asset | 2.2 | 1.5 |
Risk Management Liability | 0.3 | 0.3 |
Fair value measurements on a recurring basis | Level 3 | FTRs | Valuation Technique: Market-based | Average | ||
Fair Value Inputs | ||
Forward market prices (in dollars per megawatt-month or ton) | 188.16 | |
Fair value measurements on a recurring basis | Level 3 | Coal contract | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | ||
Risk Management Asset | 0 | 0.2 |
Risk Management Liability | $2.20 | $2.70 |
Fair value measurements on a recurring basis | Level 3 | Coal contract | Valuation Technique: Market-based | Minimum | ||
Fair Value Inputs | ||
Forward market prices (in dollars per megawatt-month or ton) | 10.89 | |
Fair value measurements on a recurring basis | Level 3 | Coal contract | Valuation Technique: Market-based | Maximum | ||
Fair Value Inputs | ||
Forward market prices (in dollars per megawatt-month or ton) | 13.6 |
FAIR_VALUE_LEVEL_3_RECONCILIAT
FAIR VALUE - LEVEL 3 RECONCILIATION (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the fair value of items measured on a recurring basis and categorized as Level 3 measurements | |||
Balance at the beginning of the period | ($1.30) | ($5.40) | ($5.70) |
Net realized gains included in earnings | 0.2 | 3 | 1.8 |
Net unrealized gains (losses) recorded as regulatory assets or liabilities | -1.2 | 0.3 | 5.7 |
Purchases | 4.3 | 3.2 | 2.8 |
Sales | -0.2 | -0.1 | |
Settlements | -3.5 | -2.2 | -9.9 |
Net transfers out of Level 3 | 1.2 | ||
Balance at the end of the period | -0.3 | -1.3 | -5.4 |
Impact on earnings of unrealized gains (losses) on level 3 derivatives | 0 | 0 | 0 |
FTRs | |||
Changes in the fair value of items measured on a recurring basis and categorized as Level 3 measurements | |||
Balance at the beginning of the period | 1.2 | 1.1 | 1.2 |
Net realized gains included in earnings | 0.2 | 3 | 1.8 |
Net unrealized gains (losses) recorded as regulatory assets or liabilities | 0.4 | -0.1 | -0.1 |
Purchases | 4.3 | 3.2 | 2.8 |
Sales | -0.2 | -0.1 | |
Settlements | -4.2 | -5.8 | -4.5 |
Net transfers out of Level 3 | 0 | ||
Balance at the end of the period | 1.9 | 1.2 | 1.1 |
Coal contract | |||
Changes in the fair value of items measured on a recurring basis and categorized as Level 3 measurements | |||
Balance at the beginning of the period | -2.5 | -6.5 | -6.9 |
Net realized gains included in earnings | 0 | 0 | 0 |
Net unrealized gains (losses) recorded as regulatory assets or liabilities | -1.6 | 0.4 | 5.8 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | |
Settlements | 0.7 | 3.6 | -5.4 |
Net transfers out of Level 3 | 1.2 | ||
Balance at the end of the period | ($2.20) | ($2.50) | ($6.50) |
FAIR_VALUE_FINANCIAL_INSTRUMEN
FAIR VALUE - FINANCIAL INSTRUMENTS NOT RECORDED AT FAIR VALUE (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying value and estimated fair value of financial instruments | ||
Long-term debt | $1,174.50 | $1,174.50 |
Long-term debt to parent | 5.4 | 6.3 |
Preferred stock – $100 par value; 1,000,000 shares authorized; 511,882 shares issued and outstanding | 51.2 | 51.2 |
Carrying Amount | ||
Carrying value and estimated fair value of financial instruments | ||
Long-term debt | 1,174.50 | 1,174.50 |
Long-term debt to parent | 5.4 | 6.3 |
Preferred stock – $100 par value; 1,000,000 shares authorized; 511,882 shares issued and outstanding | 51.2 | 51.2 |
Fair Value | ||
Carrying value and estimated fair value of financial instruments | ||
Long-term debt | 1,286.20 | 1,176.50 |
Long-term debt to parent | 5.7 | 7.1 |
Preferred stock – $100 par value; 1,000,000 shares authorized; 511,882 shares issued and outstanding | $52 | $61.40 |
REGULATORY_ENVIRONMENT_Details
REGULATORY ENVIRONMENT (Details) (USD $) | 1 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 |
Public Utilities, General Disclosures | ||||
Percentage price variance from rate case-approved fuel and purchased power costs before deferral is required | 2.00% | |||
Public Service Commission of Wisconsin (PSCW) | 2015 Rates | ||||
Public Utilities, General Disclosures | ||||
Approved return on common equity percent reflected in rates of customers | 10.20% | |||
Approved percent of capital structure composed of common equity | 50.28% | |||
Public Service Commission of Wisconsin (PSCW) | 2014 Rates | ||||
Public Utilities, General Disclosures | ||||
Approved return on common equity percent reflected in rates of customers | 10.20% | |||
Approved percent of capital structure composed of common equity | 50.14% | |||
Public Service Commission of Wisconsin (PSCW) | 2013 Rates | ||||
Public Utilities, General Disclosures | ||||
Approved return on common equity percent reflected in rates of customers | 10.30% | |||
Approved percent of capital structure composed of common equity | 51.61% | |||
Recovery of income tax amounts previously expensed related to the Federal Health Care Reform Act | $5.90 | |||
Retail natural gas rates | Public Service Commission of Wisconsin (PSCW) | 2015 Rates | ||||
Public Utilities, General Disclosures | ||||
Approved annual increase (decrease) in rates for customers | -15.4 | |||
Retail natural gas rates | Public Service Commission of Wisconsin (PSCW) | 2014 Rates | ||||
Public Utilities, General Disclosures | ||||
Approved annual increase (decrease) in rates for customers | 4 | |||
Retail natural gas rates | Public Service Commission of Wisconsin (PSCW) | 2013 Rates | ||||
Public Utilities, General Disclosures | ||||
Approved annual increase (decrease) in rates for customers | -3.4 | |||
Deferral related to pension and other employee benefit costs | 2.1 | |||
Annual cap for decoupling | 8 | |||
Retail electric rates | Public Service Commission of Wisconsin (PSCW) | 2015 Rates | ||||
Public Utilities, General Disclosures | ||||
Approved annual increase (decrease) in rates for customers | 24.6 | |||
Percentage price variance from rate case-approved fuel and purchased power costs before deferral is required | 2.00% | |||
Retail electric rates | Public Service Commission of Wisconsin (PSCW) | 2014 Rates | ||||
Public Utilities, General Disclosures | ||||
Approved annual increase (decrease) in rates for customers | -12.8 | |||
Retail electric rates | Public Service Commission of Wisconsin (PSCW) | 2013 Rates | ||||
Public Utilities, General Disclosures | ||||
Approved annual increase (decrease) in rates for customers | 28.5 | |||
Fuel refund | 20.5 | |||
Deferral related to pension and other employee benefit costs | 7.3 | |||
Annual cap for decoupling | 14 | |||
Retail electric rates | Michigan Public Service Commission (MPSC) | 2015 Rates | ||||
Public Utilities, General Disclosures | ||||
Requested annual increase (decrease) in rates for customers | $5.70 | |||
Requested return on common equity percent | 10.60% | |||
Requested percent of capital structure composed of common equity | 50.48% |
MISCELLANEOUS_INCOME_Details
MISCELLANEOUS INCOME (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||
Equity portion of AFUDC | $11 | $9.90 | $2.60 |
Earnings from equity method investments | 10.3 | 11.3 | 11 |
Key executive life insurance for retired employees | 1.6 | 1.1 | 1.1 |
Coal transportation services | 1 | 1.2 | 0.9 |
Other | 0.5 | 0 | 0.1 |
Total miscellaneous income | $24.40 | $23.50 | $15.70 |
SEGMENTS_OF_BUSINESS_Details
SEGMENTS OF BUSINESS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||||||||||
Segment reporting information | |||||||||||
Number of reportable segments | 3 | ||||||||||
Revenues | $397.40 | $370.40 | $358.80 | $555.70 | $406.20 | $371.90 | $367.80 | $433.40 | $1,682.30 | $1,579.30 | $1,499.20 |
Depreciation and amortization expense | 113.7 | 106.2 | 96.2 | ||||||||
Miscellaneous income | 24.4 | 23.5 | 15.7 | ||||||||
Interest expense | 57.4 | 43.7 | 42.5 | ||||||||
Provision for income taxes | 84.7 | 81.9 | 62.6 | ||||||||
Preferred stock dividend requirements | -3.1 | -3.1 | -3.1 | ||||||||
Net income attributed to common shareholder | 28 | 42.2 | 17.1 | 50.3 | 27.3 | 37 | 25.9 | 44.6 | 137.6 | 134.8 | 131.7 |
Total assets | 4,278.70 | 3,961.30 | 4,278.70 | 3,961.30 | 3,521.90 | ||||||
Cash expenditures for long-lived assets | 329.1 | 633.2 | 179.5 | ||||||||
Intersegment revenues | |||||||||||
Segment reporting information | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Reconciling Eliminations | |||||||||||
Segment reporting information | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Depreciation and amortization expense | -0.5 | -0.5 | -0.5 | ||||||||
Miscellaneous income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Preferred stock dividend requirements | 0 | 0 | 0 | ||||||||
Net income attributed to common shareholder | 0 | 0 | 0 | ||||||||
Total assets | 0 | 0 | 0 | 0 | 0 | ||||||
Cash expenditures for long-lived assets | 0 | 0 | 0 | ||||||||
Reconciling Eliminations | Intersegment revenues | |||||||||||
Segment reporting information | |||||||||||
Revenues | -13.8 | -12.3 | -10.6 | ||||||||
Utility operations | |||||||||||
Segment reporting information | |||||||||||
Revenues | 1,682.30 | 1,579.30 | 1,499.20 | ||||||||
Depreciation and amortization expense | 113.6 | 106.1 | 96.1 | ||||||||
Miscellaneous income | 11.5 | 10.1 | 2.7 | ||||||||
Interest expense | 55.3 | 41.5 | 40.3 | ||||||||
Provision for income taxes | 80.7 | 77.7 | 59.1 | ||||||||
Preferred stock dividend requirements | -3.1 | -3.1 | -3.1 | ||||||||
Net income attributed to common shareholder | 130.4 | 127.3 | 124 | ||||||||
Total assets | 4,193.30 | 3,875.60 | 4,193.30 | 3,875.60 | 3,415.70 | ||||||
Cash expenditures for long-lived assets | 329.1 | 633.2 | 179.5 | ||||||||
Utility operations | Intersegment revenues | |||||||||||
Segment reporting information | |||||||||||
Revenues | 12.4 | 10.9 | 9.2 | ||||||||
Utility operations | Electric Utility | |||||||||||
Segment reporting information | |||||||||||
Revenues | 1,222.40 | 1,241.80 | 1,212 | ||||||||
Depreciation and amortization expense | 97.4 | 90.5 | 81.1 | ||||||||
Miscellaneous income | 11.1 | 9.9 | 2.6 | ||||||||
Interest expense | 45.1 | 33 | 32.4 | ||||||||
Provision for income taxes | 64.1 | 61.6 | 44.6 | ||||||||
Preferred stock dividend requirements | -2.6 | -2.5 | -2.5 | ||||||||
Net income attributed to common shareholder | 104.7 | 102.3 | 99.1 | ||||||||
Total assets | 3,511 | 3,241.80 | 3,511 | 3,241.80 | 2,747.50 | ||||||
Cash expenditures for long-lived assets | 279.3 | 595.5 | 149.4 | ||||||||
Utility operations | Electric Utility | Intersegment revenues | |||||||||||
Segment reporting information | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Utility operations | Natural Gas Utility | |||||||||||
Segment reporting information | |||||||||||
Revenues | 459.9 | 337.5 | 287.2 | ||||||||
Depreciation and amortization expense | 16.2 | 15.6 | 15 | ||||||||
Miscellaneous income | 0.4 | 0.2 | 0.1 | ||||||||
Interest expense | 10.2 | 8.5 | 7.9 | ||||||||
Provision for income taxes | 16.6 | 16.1 | 14.5 | ||||||||
Preferred stock dividend requirements | -0.5 | -0.6 | -0.6 | ||||||||
Net income attributed to common shareholder | 25.7 | 25 | 24.9 | ||||||||
Total assets | 682.3 | 633.8 | 682.3 | 633.8 | 668.2 | ||||||
Cash expenditures for long-lived assets | 49.8 | 37.7 | 30.1 | ||||||||
Utility operations | Natural Gas Utility | Intersegment revenues | |||||||||||
Segment reporting information | |||||||||||
Revenues | 12.4 | 10.9 | 9.2 | ||||||||
Nonutility operations | Other | |||||||||||
Segment reporting information | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Depreciation and amortization expense | 0.6 | 0.6 | 0.6 | ||||||||
Miscellaneous income | 12.9 | 13.4 | 13 | ||||||||
Interest expense | 2.1 | 2.2 | 2.2 | ||||||||
Provision for income taxes | 4 | 4.2 | 3.5 | ||||||||
Preferred stock dividend requirements | 0 | 0 | 0 | ||||||||
Net income attributed to common shareholder | 7.2 | 7.5 | 7.7 | ||||||||
Total assets | 85.4 | 85.7 | 85.4 | 85.7 | 106.2 | ||||||
Cash expenditures for long-lived assets | 0 | 0 | 0 | ||||||||
Nonutility operations | Other | Intersegment revenues | |||||||||||
Segment reporting information | |||||||||||
Revenues | $1.40 | $1.40 | $1.40 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
RELATED PARTY TRANSACTIONS | |||
Long-term debt to parent | $2.90 | $6.30 | |
Current portion of long-term debt to parent | 2.5 | 0 | |
Equity earnings from WPS Investments, LLC | 10.3 | 11.3 | 11 |
ATC | |||
RELATED PARTY TRANSACTIONS | |||
Accounts payable to related parties | 8.2 | 10.4 | |
Charges from equity method investee for network transmission services | 99 | 98.4 | 94.2 |
Charges to equity method investee for services, construction, and operations | 8.6 | 9.5 | 10.4 |
WRPC | |||
RELATED PARTY TRANSACTIONS | |||
Purchases from related party | 3.7 | 3.7 | 5 |
Charges to equity method investee for services, construction, and operations | 1.4 | 0.9 | 0.8 |
Net proceeds from WRPC sales of energy to MISO | 0 | 0 | 2.9 |
WPS Investments, LLC | |||
RELATED PARTY TRANSACTIONS | |||
Equity earnings from WPS Investments, LLC | 9.5 | 10.2 | 10.2 |
Equity method investment, ownership interest (as a percent) | 10.98% | ||
IBS | |||
RELATED PARTY TRANSACTIONS | |||
Number of categories of services provided by related party | 15 | ||
Integrys Energy Group | |||
RELATED PARTY TRANSACTIONS | |||
Liability related to income tax allocation | 6.1 | 6.7 | |
UPPCO | Electric Utility | |||
RELATED PARTY TRANSACTIONS | |||
Sales to related party | 15.3 | 22.8 | 22.2 |
Integrys Transportation Fuels LLC | Electric Utility | |||
RELATED PARTY TRANSACTIONS | |||
Sales to related party | 0.1 | 0 | 0 |
Integrys Energy Services | Natural gas transactions | |||
RELATED PARTY TRANSACTIONS | |||
Sales to related party | 0.6 | 0.5 | 0.6 |
Purchases from related party | 2.5 | 0.9 | 0.7 |
WPS Leasing | Integrys Energy Group | |||
RELATED PARTY TRANSACTIONS | |||
Long-term debt to parent | 5.4 | 6.3 | |
Interest expense | $0.50 | $0.50 | $0.50 |
QUARTERLY_FINANCIAL_INFORMATIO2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $397.40 | $370.40 | $358.80 | $555.70 | $406.20 | $371.90 | $367.80 | $433.40 | $1,682.30 | $1,579.30 | $1,499.20 |
Operating income | 56.4 | 77.9 | 36.5 | 87.6 | 50.5 | 65.2 | 46.9 | 77.4 | 258.4 | 240 | 224.2 |
Net income attributed to common shareholder | $28 | $42.20 | $17.10 | $50.30 | $27.30 | $37 | $25.90 | $44.60 | $137.60 | $134.80 | $131.70 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts | |||
Balance at beginning of year | $2.50 | $2.50 | $3 |
Charged to expense | 7.3 | 5.2 | 5.7 |
Deductions | -6.6 | -5.2 | -6.2 |
Balance at end of year | $3.20 | $2.50 | $2.50 |