Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 04, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'INTEGRYS ENERGY GROUP, INC. | ' |
Entity Central Index Key | '0000916863 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 79,807,435 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Utility revenues | $606.90 | $582.30 | $2,425.10 | $2,116.90 |
Nonregulated revenues | 522.8 | 345.4 | 1,498.80 | 898.3 |
Total revenues | 1,129.70 | 927.7 | 3,923.90 | 3,015.20 |
Utility cost of fuel, natural gas, and purchased power | 222.8 | 228.2 | 1,083.90 | 926.4 |
Nonregulated cost of sales | 475.3 | 264 | 1,360 | 730 |
Operating and maintenance expense | 282.3 | 240.3 | 866.1 | 748.6 |
Depreciation and amortization expense | 69.6 | 62.9 | 196 | 187.6 |
Taxes other than income taxes | 24.4 | 23.8 | 76.4 | 73.9 |
Operating income | 55.3 | 108.5 | 341.5 | 348.7 |
Earnings from equity method investments | 23.1 | 22.2 | 68.2 | 65.5 |
Miscellaneous income | 12.1 | 3.1 | 23.3 | 7.2 |
Interest expense | 33.1 | 29.9 | 91 | 90 |
Other income (expense) | 2.1 | -4.6 | 0.5 | -17.3 |
Income before taxes | 57.4 | 103.9 | 342 | 331.4 |
Provision for income taxes | 18 | 29.6 | 124.3 | 106.6 |
Net income from continuing operations | 39.4 | 74.3 | 217.7 | 224.8 |
Discontinued operations, net of tax | -0.6 | -8 | 4.7 | -9.2 |
Net income | 38.8 | 66.3 | 222.4 | 215.6 |
Preferred stock dividends of subsidiary | -0.7 | -0.7 | -2.3 | -2.3 |
Noncontrolling interest in subsidiaries | 0 | 0.1 | 0.1 | 0.1 |
Net income attributed to common shareholders | $38.10 | $65.70 | $220.20 | $213.40 |
Average shares of common stock | ' | ' | ' | ' |
Basic (in shares) | 79.8 | 78.5 | 79.3 | 78.5 |
Diluted (in shares) | 80.2 | 79.3 | 79.9 | 79.3 |
Earnings per common share (basic) | ' | ' | ' | ' |
Net income from continuing operations (in dollars per share) | $0.49 | $0.94 | $2.72 | $2.84 |
Discontinued operations, net of tax (in dollars per share) | ($0.01) | ($0.10) | $0.06 | ($0.12) |
Earnings per common share (basic) (in dollars per share) | $0.48 | $0.84 | $2.78 | $2.72 |
Earnings per common share (diluted) | ' | ' | ' | ' |
Net income from continuing operations (in dollars per share) | $0.48 | $0.93 | $2.70 | $2.81 |
Discontinued operations, net of tax (in dollars per share) | ($0.01) | ($0.10) | $0.06 | ($0.12) |
Earnings per common share (diluted) (in dollars per share) | $0.47 | $0.83 | $2.76 | $2.69 |
Dividends per common share declared (in dollars per share) | $0.68 | $0.68 | $2.04 | $2.04 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $38.80 | $66.30 | $222.40 | $215.60 |
Cash flow hedges | ' | ' | ' | ' |
Unrealized net gains (losses) arising during period, net of tax of $ – million, $0.1 million, $ – million, and $(0.1) million, respectively | 0 | 0.1 | 0.7 | -0.1 |
Reclassification of net losses to net income, net of tax of $0.2 million, $1.0 million, $1.7 million, and $2.6 million, respectively | 0.3 | 1.6 | 2.7 | 4.1 |
Cash flow hedges, net | 0.3 | 1.7 | 3.4 | 4 |
Defined benefit plans | ' | ' | ' | ' |
Amortization of pension and other postretirement benefit costs included in net periodic benefit cost, net of tax of $0.4 million, $0.2 million, $1.2 million, and $0.7 million, respectively | 0.6 | 0.4 | 1.8 | 1.1 |
Other comprehensive income, net of tax | 0.9 | 2.1 | 5.2 | 5.1 |
Comprehensive income | 39.7 | 68.4 | 227.6 | 220.7 |
Preferred stock dividends of subsidiary | -0.7 | -0.7 | -2.3 | -2.3 |
Noncontrolling interest in subsidiaries | 0 | 0.1 | 0.1 | 0.1 |
Comprehensive income attributed to common shareholders | $39 | $67.80 | $225.40 | $218.50 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Unrealized net gains (losses) arising during period, tax | $0 | $0.10 | $0 | ($0.10) |
Reclassification of net losses to net income, tax | 0.2 | 1 | 1.7 | 2.6 |
Amortization of pension and other postretirement benefit costs included in net periodic benefit cost, tax | $0.40 | $0.20 | $1.20 | $0.70 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $26.10 | $27.40 |
Collateral on deposit | 61.1 | 41 |
Accounts receivable and accrued unbilled revenues, net of reserves of $45.3 and $43.5, respectively | 625.3 | 796.8 |
Inventories | 341.7 | 271.9 |
Current assets from risk management activities | 154.9 | 145.4 |
Current regulatory assets | 101.7 | 110.8 |
Assets held for sale | 0.7 | 10.1 |
Deferred income taxes | 38.4 | 64.3 |
Prepaid taxes | 141.8 | 152.8 |
Other current assets | 30 | 38.6 |
Current assets | 1,521.70 | 1,659.10 |
Property, plant, and equipment, net of accumulated depreciation of $3,307.9 and $3,114.7, respectively | 6,198.80 | 5,501.90 |
Long-term regulatory assets | 1,784.60 | 1,813.80 |
Long-term assets from risk management activities | 58.1 | 45.3 |
Equity method investments | 534.5 | 512.2 |
Goodwill | 662.1 | 658.3 |
Other long-term assets | 161.5 | 136.8 |
Total assets | 10,921.30 | 10,327.40 |
Liabilities and Equity | ' | ' |
Short-term debt | 388 | 482.4 |
Current portion of long-term debt | 276.5 | 313.5 |
Accounts payable | 475.4 | 457.7 |
Current liabilities from risk management activities | 157.5 | 181.9 |
Accrued taxes | 41.2 | 83 |
Current regulatory liabilities | 56.1 | 65.6 |
Liabilities held for sale | 0 | 0.2 |
Other current liabilities | 237.9 | 229 |
Current liabilities | 1,632.60 | 1,813.30 |
Long-term debt | 2,506.20 | 1,931.70 |
Deferred income taxes | 1,320.40 | 1,203.80 |
Deferred investment tax credits | 48.4 | 49.3 |
Long-term regulatory liabilities | 390.4 | 370.5 |
Environmental remediation liabilities | 613.6 | 651.5 |
Pension and other postretirement benefit obligations | 573 | 625.2 |
Long-term liabilities from risk management activities | 59.6 | 58.4 |
Asset retirement obligations | 426.8 | 411.2 |
Other long-term liabilities | 138.8 | 135.7 |
Long-term liabilities | 6,077.20 | 5,437.30 |
Commitments and contingencies | ' | ' |
Common stock – $1 par value; 200,000,000 shares authorized; 79,757,715 shares issued; 79,289,748 shares outstanding | 79.8 | 78.3 |
Additional paid-in capital | 2,648.10 | 2,574.60 |
Retained earnings | 489.8 | 431.5 |
Accumulated other comprehensive loss | -35.7 | -40.9 |
Shares in deferred compensation trust | -22.7 | -17.7 |
Total common shareholders’ equity | 3,159.30 | 3,025.80 |
Preferred stock of subsidiary – $100 par value; 1,000,000 shares authorized; 511,882 shares issued; 510,495 shares outstanding | 51.1 | 51.1 |
Noncontrolling interest in subsidiaries | 1.1 | -0.1 |
Total liabilities and equity | $10,921.30 | $10,327.40 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable and accrued unbilled revenues, reserves (in dollars) | $45.30 | $43.50 |
Property, plant, and equipment, accumulated depreciation (in dollars) | $3,307.90 | $3,114.70 |
Common stock, par value (in dollars per share) | $1 | ' |
Common stock, shares authorized | 200,000,000 | ' |
Common stock, shares issued | 79,757,715 | 78,287,906 |
Common stock, shares outstanding | 79,289,748 | 77,902,467 |
Preferred stock of subsidiary, par value (in dollars per share) | $100 | ' |
Preferred stock of subsidiary, shares authorized | 1,000,000 | ' |
Preferred stock of subsidiary, shares issued | 511,882 | ' |
Preferred stock of subsidiary, shares outstanding | 510,495 | ' |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities | ' | ' |
Net income | $222.40 | $215.60 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Discontinued operations, net of tax | -4.7 | 9.2 |
Depreciation and amortization expense | 196 | 187.6 |
Recoveries and refunds of regulatory assets and liabilities | 35.2 | 12.6 |
Net unrealized gains on energy contracts | -18.8 | -42.8 |
Bad debt expense | 22.2 | 19.3 |
Pension and other postretirement expense | 47.4 | 46.7 |
Pension and other postretirement contributions | -65 | -247.8 |
Deferred income taxes and investment tax credits | 123.4 | 86.3 |
Equity income, net of dividends | -14.1 | -13.4 |
Termination of tolling agreement with Fox Energy Company LLC | -50 | 0 |
Other | 33.4 | 32.8 |
Changes in working capital | ' | ' |
Collateral on deposit | -20.1 | -1.1 |
Accounts receivable and accrued unbilled revenues | 80.4 | 232.6 |
Inventories | -70.1 | -20.9 |
Other current assets | -7.6 | 66.8 |
Accounts payable | 21.9 | -45 |
Other current liabilities | -21 | 5.8 |
Net cash provided by operating activities | 510.9 | 544.3 |
Investing Activities | ' | ' |
Capital expenditures | -474.7 | -437.8 |
Proceeds from the sale or disposal of assets | 4.6 | 8.2 |
Capital contributions to equity method investments | -10.2 | -24 |
Acquisition of Fox Energy Company LLC | -391.6 | 0 |
Acquisitions at Integrys Energy Services | -12.4 | 0 |
Grant received related to Crane Creek Wind Project | 69 | 0 |
Other | -6.1 | 4.8 |
Net cash used for investing activities | -821.4 | -448.8 |
Financing Activities | ' | ' |
Short-term debt, net | -294.4 | 107 |
Borrowing on term credit facility | 200 | 0 |
Issuance of long-term debt | 724 | 28 |
Repayment of long-term debt | -187 | -28.2 |
Proceeds from stock option exercises | 38.5 | 54.9 |
Shares purchased for stock-based compensation | -2 | -85.1 |
Payment of dividends | ' | ' |
Preferred stock of subsidiary | -2.3 | -2.3 |
Common stock | -151.6 | -159 |
Payments made on derivative contracts related to divestitures classified as financing activities | -5.7 | -27.9 |
Other | -13.2 | 0.5 |
Net cash provided by (used for) financing activities | 306.3 | -112.1 |
Change in cash and cash equivalents - continuing operations | -4.2 | -16.6 |
Change in cash and cash equivalents - discontinued operations | ' | ' |
Net cash provided by operating activities | 1.3 | 6.7 |
Net cash provided by (used for) investing activities | 1.6 | -0.1 |
Net change in cash and cash equivalents | -1.3 | -10 |
Cash and cash equivalents at beginning of period | 27.4 | 28.1 |
Cash and cash equivalents at end of period | $26.10 | $18.10 |
FINANCIAL_INFORMATION
FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
FINANCIAL INFORMATION | ' |
FINANCIAL INFORMATION | |
As used in these notes, the term "financial statements" refers to the condensed consolidated financial statements. This includes the condensed consolidated statements of income, condensed consolidated statements of comprehensive income, condensed consolidated balance sheets, and condensed consolidated statements of cash flows, unless otherwise noted. In this report, when we refer to "us," "we," "our," or "ours," we are referring to Integrys Energy Group, Inc. | |
We prepare our financial statements in conformity with the rules and regulations of the SEC for Quarterly Reports on Form 10-Q and in accordance with GAAP. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2012. Financial results for an interim period may not give a true indication of results for the year. | |
In management’s opinion, these unaudited financial statements include all adjustments necessary for a fair presentation of financial results. All adjustments are normal and recurring, unless otherwise noted. All intercompany transactions have been eliminated in consolidation. |
CASH_AND_CASH_EQUIVALENTS
CASH AND CASH EQUIVALENTS | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||
CASH AND CASH EQUIVALENTS | ' | ||||||||
CASH AND CASH EQUIVALENTS | |||||||||
Short-term investments with an original maturity of three months or less are reported as cash equivalents. | |||||||||
The following is a supplemental disclosure to our statements of cash flows: | |||||||||
Nine Months Ended September 30 | |||||||||
(Millions) | 2013 | 2012 | |||||||
Cash paid for interest | $ | 60.7 | $ | 60 | |||||
Cash received for income taxes | (2.6 | ) | (45.7 | ) | |||||
Cash received for income taxes decreased $43.1 million, primarily driven by a federal income tax refund received in 2012 for a net operating loss incurred in 2010 that was carried back to a prior year. The 2010 net operating loss was driven by bonus depreciation. | |||||||||
Significant noncash transactions were: | |||||||||
Nine Months Ended September 30 | |||||||||
(Millions) | 2013 | 2012 | |||||||
Construction costs funded through accounts payable | $ | 98.4 | $ | 78.8 | |||||
Equity issued for stock-based compensation plans | 26.5 | — | |||||||
Equity issued for reinvested dividends | 9.1 | — | |||||||
Contingent consideration and payables related to the acquisition of Compass Energy Services * | 7.9 | — | |||||||
* | See Note 4, "Acquisitions," for more information on the contingent consideration. |
RISK_MANAGEMENT_ACTIVITIES
RISK MANAGEMENT ACTIVITIES | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | ||||||||||||||||||
RISK MANAGEMENT ACTIVITIES | |||||||||||||||||||
The following tables show our assets and liabilities from risk management activities: | |||||||||||||||||||
30-Sep-13 | |||||||||||||||||||
(Millions) | Balance Sheet Presentation * | Assets from | Liabilities from | ||||||||||||||||
Risk Management Activities | Risk Management Activities | ||||||||||||||||||
Utility Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | $ | 2.2 | $ | 5.4 | ||||||||||||||
Natural gas contracts | Long-term | 0.5 | 0.6 | ||||||||||||||||
Financial transmission rights (FTRs) | Current | 3.4 | 0.4 | ||||||||||||||||
Petroleum product contracts | Current | — | 0.2 | ||||||||||||||||
Coal contracts | Current | — | 2.6 | ||||||||||||||||
Coal contracts | Long-term | 1.5 | 0.1 | ||||||||||||||||
Nonregulated Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | 48.9 | 37.6 | ||||||||||||||||
Natural gas contracts | Long-term | 24.6 | 14.6 | ||||||||||||||||
Electric contracts | Current | 100.4 | 111.3 | ||||||||||||||||
Electric contracts | Long-term | 31.5 | 44.3 | ||||||||||||||||
Current | 154.9 | 157.5 | |||||||||||||||||
Long-term | 58.1 | 59.6 | |||||||||||||||||
Total | $ | 213 | $ | 217.1 | |||||||||||||||
* We classify assets and liabilities from risk management activities as current or long-term based upon the maturities of the underlying contracts. | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||
(Millions) | Balance Sheet Presentation * | Assets from | Liabilities from | ||||||||||||||||
Risk Management Activities | Risk Management Activities | ||||||||||||||||||
Utility Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | $ | 2.5 | $ | 14 | ||||||||||||||
Natural gas contracts | Long-term | 0.9 | 0.8 | ||||||||||||||||
FTRs | Current | 2.1 | 0.1 | ||||||||||||||||
Petroleum product contracts | Current | 0.2 | — | ||||||||||||||||
Coal contracts | Current | 0.3 | 4.7 | ||||||||||||||||
Coal contracts | Long-term | 2.2 | 4.3 | ||||||||||||||||
Cash flow hedges | |||||||||||||||||||
Natural gas contracts | Current | — | 0.4 | ||||||||||||||||
Nonregulated Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | 51.7 | 48.5 | ||||||||||||||||
Natural gas contracts | Long-term | 11.5 | 7.6 | ||||||||||||||||
Electric contracts | Current | 88.6 | 114.2 | ||||||||||||||||
Electric contracts | Long-term | 30.7 | 45.7 | ||||||||||||||||
Current | 145.4 | 181.9 | |||||||||||||||||
Long-term | 45.3 | 58.4 | |||||||||||||||||
Total | $ | 190.7 | $ | 240.3 | |||||||||||||||
* We classify assets and liabilities from risk management activities as current or long-term based upon the maturities of the underlying contracts. | |||||||||||||||||||
The following tables show the potential effect on our financial position of netting arrangements for recognized derivative assets and liabilities: | |||||||||||||||||||
30-Sep-13 | |||||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | ||||||||||||||||
Derivative assets subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 5.9 | $ | 2.3 | $ | 3.6 | |||||||||||||
Nonregulated segments | 205.4 | 119.2 | 86.2 | ||||||||||||||||
Total | 211.3 | 121.5 | 89.8 | ||||||||||||||||
Derivative assets not subject to master netting or similar arrangements | 1.7 | 1.7 | |||||||||||||||||
Total risk management assets | $ | 213 | $ | 91.5 | |||||||||||||||
Derivative liabilities subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 6.6 | $ | 2.7 | $ | 3.9 | |||||||||||||
Nonregulated segments | 207.1 | 145.2 | 61.9 | ||||||||||||||||
Total | 213.7 | 147.9 | 65.8 | ||||||||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 3.4 | 3.4 | |||||||||||||||||
Total risk management liabilities | $ | 217.1 | $ | 69.2 | |||||||||||||||
31-Dec-12 | |||||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | ||||||||||||||||
Derivative assets subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 5.7 | $ | 3 | $ | 2.7 | |||||||||||||
Nonregulated segments | 182.5 | 145.4 | 37.1 | ||||||||||||||||
Total | 188.2 | 148.4 | 39.8 | ||||||||||||||||
Derivative assets not subject to master netting or similar arrangements | 2.5 | 2.5 | |||||||||||||||||
Total risk management assets | $ | 190.7 | $ | 42.3 | |||||||||||||||
Derivative liabilities subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 15.3 | $ | 3.8 | $ | 11.5 | |||||||||||||
Nonregulated segments | 215.4 | 159.8 | 55.6 | ||||||||||||||||
Total | 230.7 | 163.6 | 67.1 | ||||||||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 9.6 | 9.6 | |||||||||||||||||
Total risk management liabilities | $ | 240.3 | $ | 76.7 | |||||||||||||||
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) | 30-Sep-13 | December 31, 2012 | |||||||||||||||||
Cash collateral provided to others: | |||||||||||||||||||
Related to contracts under master netting or similar arrangements | $ | 60 | $ | 39.9 | |||||||||||||||
Other | 1.1 | 1.1 | |||||||||||||||||
Cash collateral received from others related to contracts under master netting or similar arrangements * | — | 0.2 | |||||||||||||||||
* Reflected in other current liabilities on the balance sheets. | |||||||||||||||||||
Certain of our derivative and nonderivative commodity instruments contain provisions that could require "adequate assurance" in the event of a material change in our creditworthiness, or the posting of additional collateral for instruments in net liability positions, if triggered by a decrease in credit ratings. The following table shows the aggregate fair value of all derivative instruments with specific credit risk-related contingent features that were in a liability position: | |||||||||||||||||||
(Millions) | 30-Sep-13 | December 31, 2012 | |||||||||||||||||
Integrys Energy Services | $ | 83.3 | $ | 108.9 | |||||||||||||||
Utility segments | 5.2 | 14 | |||||||||||||||||
If all of the credit risk-related contingent features contained in commodity instruments (including derivatives, nonderivatives, normal purchase and normal sales contracts, and applicable payables and receivables) had been triggered, our collateral requirement would have been as follows: | |||||||||||||||||||
(Millions) | 30-Sep-13 | December 31, 2012 | |||||||||||||||||
Collateral that would have been required: | |||||||||||||||||||
Integrys Energy Services | $ | 185.4 | $ | 173.8 | |||||||||||||||
Utility segments | 2.2 | 10.1 | |||||||||||||||||
Collateral already satisfied: | |||||||||||||||||||
Integrys Energy Services — Letters of credit | 4.5 | 3.2 | |||||||||||||||||
Collateral remaining: | |||||||||||||||||||
Integrys Energy Services | 180.9 | 170.6 | |||||||||||||||||
Utility segments | 2.2 | 10.1 | |||||||||||||||||
Utility Segments | |||||||||||||||||||
Non-Hedge Derivatives | |||||||||||||||||||
Utility derivatives include natural gas purchase contracts, coal purchase contracts, financial derivative contracts (futures, options, and swaps), and FTRs used to manage electric transmission congestion costs. Both the electric and natural gas utility segments use futures, options, and swaps to manage the risks associated with the market price volatility of natural gas supply costs, and the costs of gasoline and diesel fuel used by utility vehicles. The electric utility segment also uses oil futures and options to manage price risk related to coal transportation. | |||||||||||||||||||
The utilities had the following notional volumes of outstanding derivative contracts: | |||||||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||||||
Purchases | Sales | Other Transactions | Purchases | Sales | Other Transactions | ||||||||||||||
Natural gas (millions of therms) | 1,104.10 | 1.7 | N/A | 1,072.60 | 0.1 | N/A | |||||||||||||
FTRs (millions of kilowatt-hours) | N/A | N/A | 5,858.10 | N/A | N/A | 4,057.20 | |||||||||||||
Petroleum products (barrels) | 76,822.00 | 9,000.00 | N/A | 62,811.00 | — | N/A | |||||||||||||
Coal (millions of tons) | 5.1 | N/A | N/A | 5.1 | N/A | N/A | |||||||||||||
The table below shows the unrealized gains (losses) recorded related to derivative contracts at the utilities: | |||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||
(Millions) | Financial Statement Presentation | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Natural gas | Balance Sheet — Regulatory assets (current) | $ | (0.5 | ) | $ | 10.2 | $ | 6.9 | $ | 22.9 | |||||||||
Natural gas | Balance Sheet — Regulatory assets (long-term) | 1.8 | 3.8 | 1.6 | 7.7 | ||||||||||||||
Natural gas | Balance Sheet — Regulatory liabilities (current) | (0.4 | ) | (3.4 | ) | (0.2 | ) | (2.9 | ) | ||||||||||
Natural gas | Balance Sheet — Regulatory liabilities (long-term) | — | 0.8 | (0.3 | ) | 1.3 | |||||||||||||
Natural gas | Income Statement — Utility cost of fuel, natural gas, and purchased power | — | 0.1 | — | 0.2 | ||||||||||||||
Natural gas | Income Statement — Operating and maintenance expense | (0.1 | ) | 0.1 | (0.2 | ) | 0.1 | ||||||||||||
FTRs | Balance Sheet — Regulatory assets (current) | 0.8 | — | — | (0.4 | ) | |||||||||||||
FTRs | Balance Sheet — Regulatory liabilities (current) | (0.2 | ) | (0.2 | ) | (0.3 | ) | 0.5 | |||||||||||
Petroleum | Balance Sheet — Regulatory assets (current) | 0.1 | 0.2 | — | 0.1 | ||||||||||||||
Petroleum | Balance Sheet — Regulatory liabilities (current) | — | 0.1 | — | 0.1 | ||||||||||||||
Petroleum | Income Statement — Operating and maintenance expense | (0.2 | ) | 0.1 | (0.2 | ) | 0.1 | ||||||||||||
Coal | Balance Sheet — Regulatory assets (current) | (0.6 | ) | 0.7 | 2.1 | (2.5 | ) | ||||||||||||
Coal | Balance Sheet — Regulatory assets (long-term) | 0.2 | (0.1 | ) | 4.2 | 0.1 | |||||||||||||
Coal | Balance Sheet — Regulatory liabilities (current) | — | — | (0.3 | ) | — | |||||||||||||
Coal | Balance Sheet — Regulatory liabilities (long-term) | 1.5 | — | (0.7 | ) | — | |||||||||||||
Nonregulated Segments | |||||||||||||||||||
Nonhedge Derivatives | |||||||||||||||||||
Integrys Energy Services enters into derivative contracts such as futures, forwards, options, and swaps that are used to manage commodity price risk primarily associated with retail electric and natural gas customer contracts. | |||||||||||||||||||
Integrys Energy Services had the following notional volumes of outstanding derivative contracts: | |||||||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||||||
(Millions) | Purchases | Sales | Purchases | Sales | |||||||||||||||
Commodity contracts | |||||||||||||||||||
Natural gas (therms) | 1,108.50 | 1,011.80 | 782 | 679 | |||||||||||||||
Electric (kilowatt-hours) | 50,956.90 | 32,059.60 | 54,127.60 | 31,809.60 | |||||||||||||||
Foreign exchange contracts (Canadian dollars) | — | — | 0.4 | 0.4 | |||||||||||||||
Gains (losses) related to derivative contracts are recognized currently in earnings, as shown in the table below: | |||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||
(Millions) | Income Statement Presentation | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Natural gas | Nonregulated revenue | $ | (21.1 | ) | $ | (4.4 | ) | $ | 16.1 | $ | 7 | ||||||||
Natural gas | Nonregulated cost of sales | 25 | — | (9.5 | ) | — | |||||||||||||
Natural gas | Nonregulated revenue (reclassified from accumulated OCI) * | — | (0.1 | ) | (0.2 | ) | (1.6 | ) | |||||||||||
Electric | Nonregulated revenue | 36 | 49.1 | 22.4 | (10.5 | ) | |||||||||||||
Electric | Nonregulated cost of sales | (6.6 | ) | — | 2.1 | — | |||||||||||||
Electric | Nonregulated revenue (reclassified from accumulated OCI) * | (0.2 | ) | (1.9 | ) | (3.2 | ) | (3.3 | ) | ||||||||||
Total | $ | 33.1 | $ | 42.7 | $ | 27.7 | $ | (8.4 | ) | ||||||||||
* | Represents amounts reclassified from accumulated OCI related to cash flow hedges that were dedesignated in prior periods. | ||||||||||||||||||
In the next 12 months, insignificant losses related to discontinued cash flow hedges of natural gas and electric contracts are expected to be recognized in earnings as the forecasted transactions occur. These amounts are expected to be offset by the settlement of the related nonderivative customer contracts. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
Business Combination Disclosure [Text Block] | ' | ||||
ACQUISITIONS | |||||
Agreement to Purchase Alliant Energy Corporation's Natural Gas Distribution Business in Southeast Minnesota | |||||
In September 2013, MERC entered into an agreement to purchase Alliant Energy Corporation's natural gas distribution business in southeast Minnesota. This transaction is subject to state and federal regulatory approvals. The purchase price will be based on book value as of the closing date, and will be around $11 million. This acquisition will not be material to us. | |||||
Acquisition of Compass Energy Services | |||||
In May 2013, Integrys Energy Services acquired all of the equity interests of Compass Energy Services, Inc. and its wholly-owned subsidiary (Compass), a nonregulated retail natural gas business supplying commercial and industrial customers primarily in the Mid Atlantic and Ohio regions. This transaction expands Integrys Energy Services' retail natural gas presence and provides a solid foundation for future growth in these regions. | |||||
This acquisition was not material to us. Integrys Energy Services paid $12.4 million to acquire this business. Under the terms of the purchase agreement, the former owners of Compass will be eligible to receive additional cash consideration of up to $8.0 million (but no less than $3.0 million), based upon the financial performance of Compass over the next five years. Integrys Energy Services recorded liabilities of $7.7 million related to this contingent consideration. | |||||
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 | |||||
Inventories | $ | 0.7 | |||
Assets from risk management activities (current) | 15.1 | ||||
Other current assets | 1.1 | ||||
Assets from risk management activities (long-term) | 9.3 | ||||
Other long-term assets | 6.1 | ||||
Total assets acquired | $ | 32.3 | |||
Liabilities assumed | |||||
Liabilities from risk management activities (current) | $ | 8.3 | |||
Other current liabilities | 0.5 | ||||
Liabilities from risk management activities (long-term) | 3.4 | ||||
Total liabilities assumed | $ | 12.2 | |||
Acquisition of Fox Energy Center | |||||
In March 2013, WPS acquired all of the equity interests in Fox Energy Company LLC for $391.6 million. Fox Energy Company LLC was dissolved into WPS 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 expected to run primarily on natural gas. This plant gives WPS 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 | $ | 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 8, "Goodwill and Other Intangible Assets," for more information. | ||||
Prior to the purchase, WPS supplied natural gas for the facility and purchased 500 megawatts of capacity and the associated energy output under a tolling arrangement. WPS paid $50.0 million for the early termination of the tolling arrangement. This amount was recorded as a regulatory asset, as WPS is authorized recovery by the PSCW. In the current rate case, WPS proposed amortizing the regulatory asset over a nine-year period, beginning January 1, 2014. This has not been challenged, and WPS expects PSCW approval in the final decision in this rate case. | |||||
The purchase was financed with a combination of short-term debt and cash provided by operations. WPS intends to replace the short-term debt in the fourth quarter of 2013 with long-term financing. | |||||
WPS received regulatory approval to defer incremental costs associated with the purchase of the facility. Operating costs for the Fox Energy Center subsequent to the date of acquisition are included in our income statement. Due to regulatory deferral, these costs had no impact on net income. 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 WPS. The plant is now part of WPS's regulated fleet, used to serve its customers. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
DISCONTINUED OPERATIONS | ' | ||||||||||||||||
DISCONTINUED OPERATIONS | |||||||||||||||||
Discontinued Operations at Holding Company and Other Segment | |||||||||||||||||
During the nine months ended September 30, 2013, and 2012, we recorded $5.9 million and $1.8 million of after-tax gains, respectively, in discontinued operations at the holding company and other segment. In 2013, we remeasured uncertain tax positions included in our liability for unrecognized tax benefits after effectively settling certain state income tax examinations. We reduced the provision for income taxes related to these remeasurements. | |||||||||||||||||
Discontinued Operations at Integrys Energy Services Segment | |||||||||||||||||
Potential Sale of Combined Locks Energy Center | |||||||||||||||||
Integrys Energy Services is currently pursuing the sale of the Combined Locks Energy Center (Combined Locks), a natural gas-fired co-generation facility located in Wisconsin, as part of its long-term energy asset strategy. An agreement to sell Combined Locks is expected to be entered into by the end of 2013. | |||||||||||||||||
The carrying values of the major classes of assets related to Combined Locks classified as held for sale on the balance sheets were as follows: | |||||||||||||||||
(Millions) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
Inventories | $ | 0.5 | $ | 0.5 | |||||||||||||
Property, plant, and equipment, net of accumulated depreciation of $ – and $0.5 million, respectively | 0.2 | 2 | |||||||||||||||
Total assets | $ | 0.7 | $ | 2.5 | |||||||||||||
A summary of the components of discontinued operations related to Combined Locks recorded on the income statements follows: | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Nonregulated revenues | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | $ | 0.3 | |||||||
Nonregulated cost of sales | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.5 | ) | |||||||||
Operating and maintenance expense | (0.8 | ) | (0.1 | ) | (2.0 | ) | (0.3 | ) | |||||||||
Depreciation and amortization expense | — | (0.1 | ) | — | (0.2 | ) | |||||||||||
Taxes other than income taxes | — | — | — | (0.1 | ) | ||||||||||||
Loss before taxes | (1.0 | ) | (0.3 | ) | (2.3 | ) | (0.8 | ) | |||||||||
Benefit for income taxes | 0.4 | 0.2 | 0.9 | 0.3 | |||||||||||||
Discontinued operations, net of tax | $ | (0.6 | ) | $ | (0.1 | ) | $ | (1.4 | ) | $ | (0.5 | ) | |||||
Sale of WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC | |||||||||||||||||
In March 2013, WPS Empire State, Inc, a subsidiary of Integrys Energy Services, sold all of the membership interests of WPS Beaver Falls Generation, LLC (Beaver Falls) and WPS Syracuse Generation, LLC (Syracuse), both of which own natural gas-fired generation plants located in the state of New York. The cash proceeds from the sale were $1.6 million. The sale agreement also included a potential annual payment to Integrys Energy Services for a four-year period following the sale based on a certain level of earnings achieved by the buyer (an earn-out). Integrys Energy Services recorded a pre-tax impairment loss in operating and maintenance expense of $4.0 million ($2.4 million after tax) related to Beaver Falls and Syracuse during the third quarter of 2012 when the assets and liabilities were classified as held for sale. | |||||||||||||||||
The carrying values of the major classes of assets and liabilities related to Beaver Falls and Syracuse classified as held for sale on the balance sheet were as follows: | |||||||||||||||||
(Millions) | As of | ||||||||||||||||
31-Dec-12 | |||||||||||||||||
Inventories | $ | 1.8 | |||||||||||||||
Property, plant, and equipment | 5.7 | ||||||||||||||||
Other long-term assets | 0.1 | ||||||||||||||||
Total assets | $ | 7.6 | |||||||||||||||
Total liabilities – other current liabilities | $ | 0.2 | |||||||||||||||
In conjunction with the sale, the buyer assumed certain derivative contracts from WPS Empire State, Inc. Integrys Energy Services maintained these contracts to secure physical capacity for both its retail electric business obligations, as well as sales to external counterparties. The carrying value of the derivative contract liabilities assumed by the buyer was $6.8 million at closing. As of September 30, 2013, Integrys Energy Services is in the process of novating the external capacity contracts to the buyer. | |||||||||||||||||
A summary of the components of discontinued operations related to Beaver Falls and Syracuse recorded on the income statements were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 30-Sep-12 | 2013 | 2012 | ||||||||||||||
Nonregulated revenues | $ | 1.2 | $ | 1.2 | $ | 1.5 | |||||||||||
Nonregulated cost of sales | (0.7 | ) | (0.9 | ) | (1.6 | ) | |||||||||||
Operating and maintenance expense | (4.6 | ) | 0.4 | * | (5.7 | ) | |||||||||||
Depreciation and amortization expense | (0.2 | ) | — | (0.6 | ) | ||||||||||||
Taxes other than income taxes | — | (0.3 | ) | (1.1 | ) | ||||||||||||
Income (loss) before taxes | (4.3 | ) | 0.4 | (7.5 | ) | ||||||||||||
(Provision) benefit for income taxes | 1.7 | (0.2 | ) | 3 | |||||||||||||
Discontinued operations, net of tax | $ | (2.6 | ) | $ | 0.2 | $ | (4.5 | ) | |||||||||
* | Includes a $1.0 million gain on sale at closing. | ||||||||||||||||
The sale of Beaver Falls and Syracuse may generate immaterial cash flows from a four-year annual earn-out payment. Integrys Energy Services will also continue to purchase capacity from these facilities to satisfy certain capacity obligations, but is in the process of novating a majority of these obligations to the buyer, and will continue to settle certain forward financial natural gas swaps under contracts that existed at the time of sale. Both of these transactions will generate cash flows, of which the majority will expire upon novation or within two years of the sale, and are not considered significant to the overall operations of Beaver Falls and Syracuse. Integrys Energy Services does not have the ability to significantly influence the operating or financial policies of Beaver Falls and Syracuse and also does not have significant continuing involvement in the operations of Beaver Falls and Syracuse. Therefore, the continuing cash flows discussed above are not considered direct cash flows of Beaver Falls and Syracuse. | |||||||||||||||||
Sale of WPS Westwood Generation, LLC | |||||||||||||||||
In November 2012, Sunbury Holdings, LLC, a subsidiary of Integrys Energy Services, sold all of the membership interests of WPS Westwood Generation, LLC (Westwood), a waste coal generation plant located in Pennsylvania. The cash proceeds related to the sale were $2.6 million. Integrys Energy Services also received a $4.0 million note receivable from the buyer with a seven and one-half year term. Integrys Energy Services recorded a pre-tax impairment loss in operating and maintenance expense of $8.4 million ($5.0 million after tax) related to Westwood during the third quarter of 2012 when the assets and liabilities were classified as held for sale. | |||||||||||||||||
A summary of the components of discontinued operations related to Westwood recorded on the income statements were as follows: | |||||||||||||||||
(Millions) | Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||
Nonregulated revenues | $ | 2.2 | $ | 8.2 | |||||||||||||
Nonregulated cost of sales | (1.2 | ) | (3.6 | ) | |||||||||||||
Operating and maintenance expense | (9.3 | ) | (12.9 | ) | |||||||||||||
Depreciation and amortization expense | (0.3 | ) | (1.0 | ) | |||||||||||||
Taxes other than income taxes | (0.1 | ) | (0.2 | ) | |||||||||||||
Interest expense | (0.1 | ) | (0.4 | ) | |||||||||||||
Loss before taxes | (8.8 | ) | (9.9 | ) | |||||||||||||
Benefit for income taxes | 3.5 | 3.9 | |||||||||||||||
Discontinued operations, net of tax | $ | (5.3 | ) | $ | (6.0 | ) | |||||||||||
Integrys Energy Services will receive interest income for seven and one-half years from the sale date related to the note receivable from the buyer. Integrys Energy Services does not have the ability to significantly influence the operating or financial policies of Westwood and also does not have significant continuing involvement in the operations of Westwood. Therefore, the continuing cash flows discussed above are not considered direct cash flows of Westwood. |
INVESTMENT_IN_ATC
INVESTMENT IN ATC | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||
INVESTMENT IN ATC | ' | ||||||||||||||||
INVESTMENT IN ATC | |||||||||||||||||
Our electric transmission investment segment consists of WPS Investments LLC’s ownership interest in ATC, which was approximately 34% at September 30, 2013. ATC is a for-profit, transmission-only company regulated by FERC. | |||||||||||||||||
The following table shows changes to our investment in ATC. | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Balance at the beginning of period | $ | 492.2 | $ | 456.4 | $ | 476.6 | $ | 439.4 | |||||||||
Add: Earnings from equity method investment | 22.3 | 21.7 | 66 | 63.8 | |||||||||||||
Add: Capital contributions | 3.4 | 8.5 | 10.2 | 17 | |||||||||||||
Less: Dividends received | 17.8 | 17.3 | 52.7 | 50.9 | |||||||||||||
Balance at the end of period | $ | 500.1 | $ | 469.3 | $ | 500.1 | $ | 469.3 | |||||||||
Financial data for all of ATC is included in the following tables: | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Income statement data | |||||||||||||||||
Revenues | $ | 160.4 | $ | 150.3 | $ | 464.3 | $ | 450.1 | |||||||||
Operating expenses | 77.5 | 68.8 | 217.2 | 210.1 | |||||||||||||
Other expense | 20.2 | 21 | 62.6 | 62.1 | |||||||||||||
Net income | $ | 62.7 | $ | 60.5 | $ | 184.5 | $ | 177.9 | |||||||||
(Millions) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
Balance sheet data | |||||||||||||||||
Current assets | $ | 77.8 | $ | 63.1 | |||||||||||||
Noncurrent assets | 3,455.40 | 3,274.70 | |||||||||||||||
Total assets | $ | 3,533.20 | $ | 3,337.80 | |||||||||||||
Current liabilities | $ | 353.6 | $ | 251.5 | |||||||||||||
Long-term debt | 1,550.00 | 1,550.00 | |||||||||||||||
Other noncurrent liabilities | 119.9 | 95.8 | |||||||||||||||
Shareholders’ equity | 1,509.70 | 1,440.50 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,533.20 | $ | 3,337.80 | |||||||||||||
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2013 | |
Inventory Disclosure [Abstract] | ' |
Inventory Disclosure [Text Block] | ' |
INVENTORIES | |
PGL and NSG price natural gas storage injections at the calendar year average of the cost of natural gas supply purchased. Withdrawals from storage are priced on the LIFO cost method. For interim periods, the difference between current projected replacement cost and the LIFO cost for quantities of natural gas temporarily withdrawn from storage is recorded as a temporary LIFO liquidation debit or credit. At September 30, 2013, all LIFO layers were replenished, and the LIFO liquidation balance was zero. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||||
The following table shows changes to our goodwill balances by segment during the nine months ended September 30, 2013: | |||||||||||||||||||||||||
(Millions) | Natural Gas Utility | Integrys Energy Services | Holding Company and Other | Total | |||||||||||||||||||||
Balance as of January 1, 2013 | |||||||||||||||||||||||||
Gross goodwill | $ | 933.5 | $ | 6.6 | $ | 15.8 | $ | 955.9 | |||||||||||||||||
Accumulated impairment losses | (297.6 | ) | — | — | (297.6 | ) | |||||||||||||||||||
Net goodwill | 635.9 | 6.6 | 15.8 | 658.3 | |||||||||||||||||||||
Adjustment to ITF patents/intellectual property * | — | — | 3.8 | 3.8 | |||||||||||||||||||||
Balance as of September 30, 2013 | |||||||||||||||||||||||||
Gross goodwill | 933.5 | 6.6 | 19.6 | 959.7 | |||||||||||||||||||||
Accumulated impairment losses | (297.6 | ) | — | — | (297.6 | ) | |||||||||||||||||||
Net goodwill | $ | 635.9 | $ | 6.6 | $ | 19.6 | $ | 662.1 | |||||||||||||||||
* | An immaterial adjustment was made to the gross goodwill balance at ITF in the second quarter of 2013 due to a correction to the life of certain intangible assets. | ||||||||||||||||||||||||
In the second quarter of 2013, annual impairment tests were completed at all of our reporting units that carried a goodwill balance. No impairments resulted from these tests. | |||||||||||||||||||||||||
The identifiable intangible assets other than goodwill listed below are part of other current and long-term assets on the balance sheets. An insignificant amount was recorded as assets held for sale on the balance sheets. | |||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
(Millions) | Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||||
Amortized intangible assets | |||||||||||||||||||||||||
Customer-related (1) | $ | 26.8 | $ | (15.3 | ) | $ | 11.5 | $ | 22.4 | $ | (14.7 | ) | $ | 7.7 | |||||||||||
Contractual service agreements (2) | 15.6 | (1.2 | ) | 14.4 | — | — | — | ||||||||||||||||||
Patents/intellectual property (3) | 3.4 | (0.4 | ) | 3 | 7.2 | (0.3 | ) | 6.9 | |||||||||||||||||
Compressed natural gas fueling contract assets (4) | 5.6 | (2.3 | ) | 3.3 | 5.6 | (1.3 | ) | 4.3 | |||||||||||||||||
Renewable energy credits (5) | 5.1 | — | 5.1 | 3.1 | — | 3.1 | |||||||||||||||||||
Nonregulated easements (6) | 3.7 | (1.1 | ) | 2.6 | 3.8 | (0.9 | ) | 2.9 | |||||||||||||||||
Customer-owned equipment modifications (7) | 4 | (0.8 | ) | 3.2 | 4 | (0.5 | ) | 3.5 | |||||||||||||||||
Other | 2.6 | (0.8 | ) | 1.8 | 0.5 | (0.2 | ) | 0.3 | |||||||||||||||||
Total | $ | 66.8 | $ | (21.9 | ) | $ | 44.9 | $ | 46.6 | $ | (17.9 | ) | $ | 28.7 | |||||||||||
Unamortized intangible assets | |||||||||||||||||||||||||
MGU trade name | $ | 5.2 | $ | — | $ | 5.2 | $ | 5.2 | $ | — | $ | 5.2 | |||||||||||||
Trillium trade name (8) | 3.5 | — | 3.5 | 3.5 | — | 3.5 | |||||||||||||||||||
Pinnacle trade name (8) | 1.5 | — | 1.5 | 1.5 | — | 1.5 | |||||||||||||||||||
Total intangible assets | $ | 77 | $ | (21.9 | ) | $ | 55.1 | $ | 56.8 | $ | (17.9 | ) | $ | 38.9 | |||||||||||
(1) | Represents customer relationship assets associated with PELLC’s former nonregulated retail natural gas and electric operations, ITF's compressed natural gas fueling operations, and Compass Energy Services. See Note 4, "Acquisitions," for more information regarding Integrys Energy Services' acquisition of Compass Energy Services. The remaining weighted-average amortization period for customer-related intangible assets at September 30, 2013, was approximately 11 years. | ||||||||||||||||||||||||
(2) | Represents contractual service agreements related to maintenance on the combustion turbine generators at the Fox Energy Center. The remaining amortization period for these intangible assets at September 30, 2013, was approximately seven years. | ||||||||||||||||||||||||
(3) | Represents the fair value of patents/intellectual property at ITF related to a system for more efficiently compressing natural gas to allow for faster fueling. An immaterial adjustment was made to the intangible assets balance in the second quarter of 2013 as a result of a correction to the life of the intangible assets. The remaining amortization period at September 30, 2013, was approximately nine years. | ||||||||||||||||||||||||
(4) | Represents the fair value of ITF contracts acquired in September 2011. The remaining amortization period at September 30, 2013, was approximately seven years. | ||||||||||||||||||||||||
(5) | Used at Integrys Energy Services to comply with state Renewable Portfolio Standards and to support customer commitments. | ||||||||||||||||||||||||
(6) | Relates to easements supporting a pipeline at Integrys Energy Services. The easements are amortized on a straight-line basis, with a remaining amortization period at September 30, 2013, of approximately 11 years. | ||||||||||||||||||||||||
(7) | Relates to modifications made by Integrys Energy Services and ITF to customer-owned equipment. These intangible assets are amortized on a straight-line basis, with a remaining weighted-average amortization period at September 30, 2013, of approximately 11 years. | ||||||||||||||||||||||||
(8) | Trillium USA (Trillium) and Pinnacle CNG Systems (Pinnacle) are wholly-owned subsidiaries of ITF. | ||||||||||||||||||||||||
Amortization expense recorded as a component of nonregulated cost of sales in the statements of income for the three months ended September 30, 2013, and 2012, was $0.6 million and $0.3 million, respectively. Amortization expense for the nine months ended September 30, 2013, and 2012, was $1.5 million and $2.2 million, respectively. | |||||||||||||||||||||||||
Amortization expense recorded as a component of depreciation and amortization expense in the statements of income for the three months ended September 30, 2013, and 2012, was $1.3 million and $0.5 million, respectively. Amortization expense for the nine months ended September 30, 2013, and 2012, was $3.0 million and $2.0 million, respectively. | |||||||||||||||||||||||||
An insignificant amount of amortization expense was recorded in discontinued operations for the three and nine months ended September 30, 2013, and 2012. | |||||||||||||||||||||||||
The following table shows our estimated amortization expense for the next five years, including amounts recorded through September 30, 2013: | |||||||||||||||||||||||||
For the Year Ending December 31 | |||||||||||||||||||||||||
(Millions) | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||||||||||
Amortization to be recorded in nonregulated cost of sales | $ | 7.2 | $ | 2.2 | $ | 1.4 | $ | 0.9 | $ | 0.9 | |||||||||||||||
Amortization to be recorded in depreciation and amortization expense | 4.2 | 4.3 | 4.2 | 4 | 3.9 | ||||||||||||||||||||
SHORTTERM_DEBT_AND_LINES_OF_CR
SHORT-TERM DEBT AND LINES OF CREDIT | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
SHORT-TERM DEBT AND LINES OF CREDIT | ' | ||||||||||
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) | 30-Sep-13 | 31-Dec-12 | |||||||||
Commercial paper | $ | 188 | $ | 482.4 | |||||||
Average discount rate on commercial paper | 0.17 | % | 0.4 | % | |||||||
Loan under term credit facility | $ | 200 | $ | — | |||||||
Average interest rate on loan under term credit facility | 0.78 | % | — | ||||||||
Our average amount of commercial paper borrowings based on daily outstanding balances during the nine months ended September 30, 2013, and 2012, was $423.0 million and $299.2 million, respectively. | |||||||||||
We manage our liquidity by maintaining adequate external financing commitments. The information in the table below relates to our short-term debt and revolving credit facilities used to support our commercial paper borrowing program, including remaining available capacity under these facilities: | |||||||||||
(Millions) | Maturity | 30-Sep-13 | 31-Dec-12 | ||||||||
Revolving credit facility (Integrys Energy Group) | 5/17/14 | $ | 275 | $ | 275 | ||||||
Revolving credit facility (Integrys Energy Group) | 5/17/16 | 200 | 200 | ||||||||
Revolving credit facility (Integrys Energy Group) | 6/13/17 | 635 | 635 | ||||||||
Revolving credit facility (WPS) | 5/17/14 | 135 | 135 | ||||||||
Revolving credit facility (WPS) | 6/13/17 | 115 | 115 | ||||||||
Revolving credit facility (PGL) | 6/13/17 | 250 | 250 | ||||||||
Term credit facility (WPS) | 12/31/13 | 200 | — | ||||||||
Total short-term credit capacity | $ | 1,810.00 | $ | 1,610.00 | |||||||
Less: | |||||||||||
Letters of credit issued inside credit facilities | $ | 37.4 | $ | 25.5 | |||||||
Loan outstanding under term credit facility | 200 | — | |||||||||
Commercial paper outstanding | 188 | 482.4 | |||||||||
Available capacity under existing agreements | $ | 1,384.60 | $ | 1,102.10 | |||||||
The loan outstanding under the term credit facility relates to the purchase of Fox Energy Company LLC and must be repaid upon the earlier of WPS's issuance of replacement long-term debt or December 31, 2013. See Note 4, "Acquisitions," for more information regarding this purchase. The commercial paper outstanding at September 30, 2013, had maturity dates ranging from October 1, 2013, through October 7, 2013. |
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
LONG-TERM DEBT | ' | ||||||||
LONG-TERM DEBT | |||||||||
(Millions) | 30-Sep-13 | 31-Dec-12 | |||||||
WPS (1) | $ | 850.1 | $ | 872.1 | |||||
PGL (2) | 770 | 625 | |||||||
NSG (3) | 88.5 | 74.5 | |||||||
Integrys Energy Group (4) | 1,074.80 | 674.8 | |||||||
Total | 2,783.40 | 2,246.40 | |||||||
Unamortized discount on debt | (0.7 | ) | (1.2 | ) | |||||
Total debt | 2,782.70 | 2,245.20 | |||||||
Less current portion | 276.5 | 313.5 | |||||||
Total long-term debt | $ | 2,506.20 | $ | 1,931.70 | |||||
(1) | In February 2013, WPS’s $22.0 million of 3.95% Senior Notes matured, and the outstanding principal balance was repaid. | ||||||||
In December 2013, WPS’s 4.80% 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 sheets. | |||||||||
(2) | In April 2013, PGL bought back its $50.0 million of 5.00% Series KK First and Refunding Mortgage Bonds that were due in February 2033. In the same month, PGL issued $50.0 million of 4.00% Series ZZ First and Refunding Mortgage Bonds. These bonds are due in February 2033. | ||||||||
In May 2013, PGL’s $75.0 million of 4.625% Series NN-2 First and Refunding Mortgage Bonds matured, and the outstanding principal balance was repaid. | |||||||||
In August 2013, PGL issued $220.0 million of 3.96% Series AAA First and Refunding Mortgage Bonds. These bonds are due in August 2043. | |||||||||
On November 1, 2013, PGL’s 7.00% Series SS First and Refunding Mortgage Bonds matured. As a result, the $45.0 million balance of these bonds was included in the current portion of long-term debt on our balance sheets. | |||||||||
(3) | In May 2013, NSG’s $40.0 million of 4.625% Series N-2 First Mortgage Bonds matured, and the outstanding principal balance was repaid. In the same month, NSG issued $54.0 million of 3.96% Series Q First Mortgage Bonds. These bonds are due in May 2043. | ||||||||
On November 1, 2013, NSG’s 7.00% Series O First Mortgage Bonds matured. As a result, the $6.5 million balance of these bonds was included in the current portion of long-term debt on our balance sheets. | |||||||||
(4) | In August 2013, we issued $400.0 million of Junior Subordinated Notes. Interest is payable quarterly at the stated rate of 6.00% for the first ten years, after which time it changes to a floating rate. These notes are due in August 2073. | ||||||||
In June 2014, our 7.27% Unsecured Senior Notes will mature. As a result, the $100.0 million balance of these notes was included in the current portion of long-term debt on our balance sheet at September 30, 2013. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
INCOME TAXES | |||||||||||||
We calculate our interim period provision for income taxes based on our projected annual effective tax rate as adjusted for certain discrete items. | |||||||||||||
The table below shows our effective tax rates attributable to continuing operations: | |||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Effective Tax Rate | 31.4 | % | 28.5 | % | 36.3 | % | 32.2 | % | |||||
Our effective tax rate normally differs from the federal statutory tax rate of 35% due to additional provision for multistate income tax obligations. Other significant items that had an impact on our effective tax rates are noted below. | |||||||||||||
Our effective tax rate for the three months ended September 30, 2013, was lower than the federal statutory tax rate of 35%. This difference was primarily due to a $3.7 million decrease in our provision for income taxes due to the reversal of a regulatory liability. This amount was related to deferred income taxes that had been recorded in prior years as a result of scheduled income tax rate changes in Illinois. We recorded the reversal based on the income tax treatment included in the 2013 final rate order for PGL and NSG. | |||||||||||||
Our effective tax rate for the three months ended September 30, 2012, was lower than the federal statutory tax rate of 35%. This difference was partially due to a $5.9 million decrease in the provision for income taxes resulting from WPS's 2013 rate case settlement agreement. In the third quarter of 2012, WPS recorded a regulatory asset after the settlement agreement authorized recovery of deferred income taxes expensed in previous years in connection with the 2010 federal health care reform. See Note 21, "Regulatory Environment," for more information. Our effective tax rate was also impacted by the federal income tax benefit of tax credits related to wind production and other miscellaneous tax adjustments. | |||||||||||||
Our effective tax rate for the nine months ended September 30, 2012, was lower than the federal statutory tax rate of 35%. This difference was partially due to the settlement of certain state income tax examinations and the remeasurement of uncertain tax positions included in our liability for unrecognized tax benefits in 2012. We decreased our provision for income taxes $6.2 million in 2012 primarily related to these items. In addition, our provision for income taxes decreased $5.9 million in 2012 related to the impact of WPS's 2013 rate case settlement agreement, as described above. Our effective tax rate was also impacted by the federal income tax benefit of tax credits related to wind production. | |||||||||||||
During the three months ended September 30, 2013, there was not a significant change in our liability for unrecognized tax benefits. During the nine months ended September 30, 2013, we decreased our liability for unrecognized tax benefits by $7.7 million. This decrease primarily related to remeasurements of uncertain tax positions driven by an effective settlement of certain state income tax examinations. We reduced the provision for income taxes related to these remeasurements, of which the majority was reported as discontinued operations. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||||||||||||
(a) Unconditional Purchase Obligations and Purchase Order Commitments | |||||||||||||||||||||||||||||||
We and our subsidiaries routinely enter into long-term purchase and sale commitments for various quantities and lengths of time. The regulated natural gas utilities have obligations to distribute and sell natural gas to their customers, and the regulated electric utilities have obligations to distribute and sell electricity to their customers. The utilities expect to recover costs related to these obligations in future customer rates. Additionally, the majority of the energy supply contracts entered into by Integrys Energy Services are to meet its contractual obligations to deliver energy to customers. The following table shows our minimum future commitments related to these purchase obligations as of September 30, 2013, including those of our subsidiaries. | |||||||||||||||||||||||||||||||
Payments Due By Period | |||||||||||||||||||||||||||||||
(Millions) | Date Contracts Extend Through | Total Amounts Committed | 2013 | 2014 | 2015 | 2016 | 2017 | Later Years | |||||||||||||||||||||||
Natural gas utility supply and transportation | 2028 | $ | 839.8 | $ | 48.5 | $ | 171 | $ | 162.4 | $ | 148.5 | $ | 103.4 | $ | 206 | ||||||||||||||||
Electric utility | |||||||||||||||||||||||||||||||
Purchased power | 2029 | 795.5 | 37.6 | 66.5 | 32.6 | 28.8 | 27.7 | 602.3 | |||||||||||||||||||||||
Coal supply and transportation | 2018 | 110.6 | 17.3 | 44.4 | 31.9 | 9.5 | 6 | 1.5 | |||||||||||||||||||||||
Nonregulated electricity and natural gas supply | 2020 | 634.6 | 150 | 329.7 | 111.4 | 36 | 6.1 | 1.4 | |||||||||||||||||||||||
Total | $ | 2,380.50 | $ | 253.4 | $ | 611.6 | $ | 338.3 | $ | 222.8 | $ | 143.2 | $ | 811.2 | |||||||||||||||||
We and our subsidiaries also had commitments of $770.9 million in the form of purchase orders issued to various vendors at September 30, 2013, that relate to normal business operations, including construction projects. | |||||||||||||||||||||||||||||||
(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 WPS 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. WPS 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 (various options, including capital projects, are available), 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. As of September 30, 2013, no decision had been made on how to address this requirement. Therefore, retirement of the Weston and Pulliam 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. | |||||||||||||||||||||||||||||||
In May 2010, WPS received from the Sierra Club a Notice of Intent to file a civil lawsuit based on allegations that WPS violated the CAA at the Weston and Pulliam plants. WPS 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 September 30, 2013. 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 WPS. The NOV alleges violations of the CAA's New Source Review requirements related to certain projects completed at those plants. WPS, WP&L, and Madison Gas and Electric (Joint Owners) 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 WPS's portion totaling $1.3 million (various options, including capital projects, are available), and | ||||||||||||||||||||||||||||||
• | WPS's 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 September 30, 2013, 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. | |||||||||||||||||||||||||||||||
In September 2010, the Sierra Club filed a lawsuit against WP&L, which included allegations that modifications made at the Edgewater plant did not comply with the CAA. A similar case had also been filed by the Sierra Club related to the Columbia plant but was dismissed without prejudice due to the impending settlement and Consent Decree. As part of the Consent Decree settlement, the Sierra Club filed a new lawsuit related to the Columbia plant, which gave notice of the filing of the Consent Decree. Both Sierra Club lawsuits against WP&L were dismissed when the Consent Decree was approved by the Court. | |||||||||||||||||||||||||||||||
Weston Title V Air Permit: | |||||||||||||||||||||||||||||||
In November 2010, the WDNR provided a draft revised permit for the Weston 4 plant. WPS objected to proposed changes in mercury limits and requirements on the boilers as beyond the authority of the WDNR and met with the WDNR to resolve these issues. In September 2011, the WDNR issued an updated draft revised permit and a request for public comments. Due to the significance of the changes to the draft revised permit, the WDNR re-issued the draft revised permit for additional comments in February 2013. In July 2012, Clean Wisconsin filed a lawsuit against the WDNR alleging failure to issue or delay in issuing the Weston Title V permit. WPS and the WDNR both filed motions to dismiss Clean Wisconsin's lawsuit, which the Court granted in February 2013. Clean Wisconsin appealed this decision but voluntarily filed a dismissal of its appeal in July 2013, closing the lawsuit. The dismissal resulted from the WDNR sending the proposed permit to the EPA for action. Later in July 2013, the WDNR issued the air permit. In September 2013, WPS challenged various requirements in the permit by filing a contested case proceeding with the WDNR and also filed a Petition for Review in the Brown County Circuit Court. The Sierra Club and Clean Wisconsin also filed Petitions for Review and requests for contested case proceedings regarding various aspects of the permit. On October 14, 2013, the WDNR granted all parties' requests for contested case proceedings, except one issue where they asked for clarifying information from WPS. The Petitions for Review, by all parties, have been stayed pending the resolution of the contested cases. | |||||||||||||||||||||||||||||||
Columbia Title V Air Permit: | |||||||||||||||||||||||||||||||
In February 2011, the Sierra Club filed a lawsuit against the EPA seeking to have the EPA take over the Title V permit process from the WDNR for the Columbia plant. The Sierra Club alleged the EPA must now act on the reconsideration of the Title V permit since the WDNR has exceeded its time frame in which to respond to an EPA order issued in 2009. In May 2011, the WDNR issued a revised draft Title V permit in response to the EPA's order. In June 2012, WP&L received notice from the EPA of the EPA's proposal for WP&L to apply for a federally-issued Title V permit since the WDNR had not addressed the EPA's objections to the Title V permit issued for the Columbia plant. Based on the entry of the Consent Decree, which covers the Columbia plant, the EPA has withdrawn its order, and this matter is now closed. This matter did not have a material impact on our financial statements. | |||||||||||||||||||||||||||||||
WDNR Issued NOVs: | |||||||||||||||||||||||||||||||
Since 2008, WPS received four NOVs from the WDNR alleging various violations of the different air permits for the entire Weston plant and Weston 1, Weston 2, and Weston 4 individually. WPS also received an NOV for a clerical error involving pages missing from a quarterly report for Weston. Corrective actions were taken for the events in the five NOVs. In December 2011, the WDNR referred several of the claims in the NOVs to the state Justice Department for enforcement. In August 2013, WPS and the state Justice Department reached a settlement on these claims, which did not have a material impact on our financial statements. | |||||||||||||||||||||||||||||||
Weston 4 Construction Permit | |||||||||||||||||||||||||||||||
From 2004 to 2009, the Sierra Club filed various petitions objecting to the construction permit issued for the Weston 4 plant. In June 2010, the Wisconsin Court of Appeals affirmed the Weston 4 construction permit, but directed the WDNR to reopen the permit to set specific visible emissions limits. In July 2010, WPS, the WDNR, and the Sierra Club filed Petitions for Review with the Wisconsin Supreme Court. In March 2011, the Wisconsin Supreme Court denied all Petitions for Review. Other than the specific visible emissions limits issue, all other challenges to the construction permit are now resolved. WPS is working with the WDNR to resolve this issue as part of the current Title V air permit issued in July 2013 and subsequent proceedings discussed above. We do not expect this matter to have a material impact on our financial statements. | |||||||||||||||||||||||||||||||
Mercury and Interstate Air Quality Rules | |||||||||||||||||||||||||||||||
Mercury: | |||||||||||||||||||||||||||||||
The State of Wisconsin's mercury rule requires 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 will be required to reduce mercury emissions by 90% from the historical baseline. Reductions can be phased in and the 90% target delayed until 2021 if additional sulfur dioxide and nitrogen oxide reductions are implemented. By 2015, electric generating units above 25 megawatts, but less than 150 megawatts, must reduce their mercury emissions to a level defined by the Best Available Control Technology rule. As of September 30, 2013, WPS estimates capital costs of approximately $9 million for its wholly owned plants to achieve the required reductions. The capital costs are expected to be recovered in future rates. | |||||||||||||||||||||||||||||||
In December 2011, the EPA issued the final Utility Mercury and Air Toxics Standards (MATS), which will regulate emissions of mercury and other hazardous air pollutants beginning in 2015. The State of Wisconsin is in the process of revising the compliance date in the state mercury rules to be consistent with the MATS rule. We are currently evaluating options for achieving the emission limits specified in this rule, but we do not anticipate the cost of compliance to be significant. We expect to recover future compliance costs 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 WPS, challenged in the United States 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. In October 2012, the EPA and several other parties filed petitions for a rehearing of the D.C. Circuit's decision, which the D.C. Circuit denied in January 2013. In March 2013, the EPA requested that the United States Supreme Court (Supreme Court) review the D.C. Circuit's rejection of CSAPR. In June 2013, the Supreme Court agreed to review the case, but a decision is not expected until 2014. | |||||||||||||||||||||||||||||||
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), and the EPA has not revised it to reflect the reinstatement of CAIR. Although particulate emissions also contribute to visibility impairment, the WDNR's modeling has shown the impairment to be so insignificant that additional capital expenditures on controls may not be warranted. | |||||||||||||||||||||||||||||||
Due to the uncertainty surrounding this rulemaking, we are currently unable to predict whether WPS will have to purchase additional emission allowances, idle or abandon certain units, or change how certain units are operated. WPS expects to recover any future compliance costs in future rates. The potential impact on Integrys Energy Services is not expected to be material. | |||||||||||||||||||||||||||||||
Manufactured Gas Plant Remediation | |||||||||||||||||||||||||||||||
Our natural gas utilities, their predecessors, and certain former affiliates 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, our natural gas utilities are required to undertake remedial action with respect to some of these materials. They are coordinating the investigation and cleanup of the sites subject to EPA jurisdiction under what is called a "multi-site" 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. | |||||||||||||||||||||||||||||||
Our natural gas utilities are responsible for the environmental remediation of 53 sites, of which 20 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. As of September 30, 2013, we estimated and accrued for $612.1 million of 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 September 30, 2013, cash expenditures for environmental remediation not yet recovered in rates were $46.2 million. We recorded a regulatory asset of $658.3 million at September 30, 2013, which is net of insurance recoveries received of $64.9 million, related to the expected recovery through rates of both cash expenditures and estimated future 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 for MGU, NSG, PGL, and WPS. 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 various regulatory commissions with respect to the prudence of costs actually incurred, could materially affect recovery of such costs through rates. |
GUARANTEES
GUARANTEES | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||
GUARANTEES | ' | ||||||||||||||||
GUARANTEES | |||||||||||||||||
The following table shows our outstanding guarantees: | |||||||||||||||||
Total Amounts Committed | Expiration | ||||||||||||||||
(Millions) | at September 30, 2013 | Less Than 1 Year | 1 to 3 Years | Over 3 Years | |||||||||||||
Guarantees supporting commodity transactions of subsidiaries (1) | $ | 605.9 | $ | 390.3 | $ | 2.7 | $ | 212.9 | |||||||||
Standby letters of credit (2) | 40.8 | 40.7 | 0.1 | — | |||||||||||||
Surety bonds (3) | 20.6 | 15.6 | 5 | — | |||||||||||||
Other guarantees (4) | 23.5 | — | — | 23.5 | |||||||||||||
Total guarantees | $ | 690.8 | $ | 446.6 | $ | 7.8 | $ | 236.4 | |||||||||
(1) | Consists of (a) $438.3 million, $5.0 million, and $2.0 million to support the business operations of Integrys Energy Services, IBS, and UPPCO, respectively, and (b) $110.5 million and $50.1 million related to natural gas supply at MERC and MGU, respectively. These guarantees are not reflected on our balance sheets. | ||||||||||||||||
(2) | At our request or the request of our subsidiaries, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. This amount consists of $38.8 million issued to support Integrys Energy Services’ operations and $2.0 million issued to support ITF, MERC, MGU, NSG, PGL, UPPCO, and WPS. These amounts are not reflected on our balance sheets. | ||||||||||||||||
(3) | Primarily for the construction and operation of compressed natural gas fueling stations, workers compensation self-insurance programs, and obtaining various licenses, permits, and rights-of-way. These guarantees are not reflected on our balance sheets. | ||||||||||||||||
(4) | Consists of (a) $10.0 million related to the sale agreement for Integrys Energy Services’ Texas retail marketing business, which included a number of customary representations, warranties, and indemnification provisions. An insignificant liability was recorded related to the possible imposition of additional miscellaneous gross receipts tax in the event of a change in law or interpretation of the tax law; (b) $5.0 million related to an environmental indemnification provided by Integrys Energy Services as part of the sale of the Stoneman generation facility, under which we expect that the likelihood of required performance is remote; (c) $2.4 million related to the performance of an operating and maintenance agreement by ITF; and (d) $6.1 million related to other indemnifications primarily for workers compensation coverage. The amounts discussed in items (b), (c), and (d) above are not reflected on our balance sheets. | ||||||||||||||||
We have provided total parental guarantees of $496.0 million on behalf of Integrys Energy Services. Our exposure under these guarantees related to existing transactions at September 30, 2013, was approximately $245.8 million. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ' | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||
The following tables show the changes, net of tax, to our accumulated other comprehensive loss during the three and nine months ended September 30, 2013: | |||||||||||||
Three Months Ended September 30, 2013 | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
(Millions) | Cash Flow Hedges | Defined Benefit Plans | |||||||||||
Beginning balance at June 30, 2013 | $ | (2.1 | ) | $ | (34.5 | ) | $ | (36.6 | ) | ||||
Amounts reclassified out of accumulated other comprehensive loss | 0.3 | 0.6 | 0.9 | ||||||||||
Ending balance at September 30, 2013 | $ | (1.8 | ) | $ | (33.9 | ) | $ | (35.7 | ) | ||||
Nine Months Ended September 30, 2013 | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
(Millions) | Cash Flow Hedges | Defined Benefit Plans | |||||||||||
Beginning balance at December 31, 2012 | $ | (5.2 | ) | $ | (35.7 | ) | $ | (40.9 | ) | ||||
Other comprehensive income before reclassifications | 0.7 | — | 0.7 | ||||||||||
Amounts reclassified out of accumulated other comprehensive loss | 2.7 | 1.8 | 4.5 | ||||||||||
Net current period other comprehensive income | 3.4 | 1.8 | 5.2 | ||||||||||
Ending balance at September 30, 2013 | $ | (1.8 | ) | $ | (33.9 | ) | $ | (35.7 | ) | ||||
The following table shows the reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2013: | |||||||||||||
Amount Reclassified | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
(Millions) | 30-Sep-13 | 30-Sep-13 | Affected Line Item in the Statements of Income | ||||||||||
Losses on cash flow hedges | |||||||||||||
Utility commodity derivative contracts | $ | — | $ | 0.2 | Operating and maintenance expense(1) | ||||||||
Nonregulated commodity derivative contracts | 0.2 | 3.4 | Nonregulated revenues | ||||||||||
Interest rate hedges | 0.3 | 0.8 | Interest expense | ||||||||||
0.5 | 4.4 | Total before tax | |||||||||||
0.2 | 1.7 | Tax expense | |||||||||||
0.3 | 2.7 | Net of tax | |||||||||||
Defined benefit plans | |||||||||||||
Amortization of prior service costs | (0.1 | ) | (0.2 | ) | (2) | ||||||||
Amortization of net actuarial losses | 1.1 | 3.2 | (2) | ||||||||||
1 | 3 | Total before tax | |||||||||||
0.4 | 1.2 | Tax expense | |||||||||||
0.6 | 1.8 | Net of tax | |||||||||||
Total reclassifications | $ | 0.9 | $ | 4.5 | |||||||||
(1) | This item relates to changes in the price of natural gas used to support utility operations. | ||||||||||||
(2) | These items are included in the computation of net periodic benefit cost. See Note 14, "Employee Benefit Plans," for additional information. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | ||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | |||||||||||||||||||||||||||||||||
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 Postretirement Benefits | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
September 30 | 30-Sep | 30-Sep | 30-Sep | ||||||||||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Service cost | $ | 7.5 | $ | 11.5 | $ | 22.6 | $ | 34.5 | $ | 6.3 | $ | 5.2 | $ | 18.7 | $ | 15.6 | |||||||||||||||||
Interest cost | 17.8 | 19.5 | 53.4 | 58.5 | 6.2 | 7.1 | 18.6 | 21.4 | |||||||||||||||||||||||||
Expected return on plan assets | (26.4 | ) | (27.0 | ) | (79.1 | ) | (80.9 | ) | (7.7 | ) | (7.1 | ) | (23.0 | ) | (21.2 | ) | |||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | 0.1 | — | 0.2 | |||||||||||||||||||||||||
Amortization of prior service cost (credit) | 1 | 1.3 | 3 | 3.8 | (0.7 | ) | (0.9 | ) | (1.9 | ) | (2.6 | ) | |||||||||||||||||||||
Amortization of net actuarial loss | 14.2 | 8.5 | 42.5 | 25.5 | 2.1 | 1.7 | 6.3 | 5 | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 14.1 | $ | 13.8 | $ | 42.4 | $ | 41.4 | $ | 6.2 | $ | 6.1 | $ | 18.7 | $ | 18.4 | |||||||||||||||||
Transition obligations, prior service costs (credits), and net actuarial losses that have not yet been recognized as a component of net periodic benefit cost are included in accumulated OCI for our nonregulated entities and are recorded as net regulatory assets for our utilities. | |||||||||||||||||||||||||||||||||
We make contributions to our plans in accordance with legal and tax requirements. These contributions do not necessarily occur evenly throughout the year. During the nine months ended September 30, 2013, we contributed $64.9 million to our pension plans and $0.1 million to our other postretirement benefit plans. We expect to contribute an additional $3.4 million to our pension plans and $32.8 million to our other postretirement benefit plans during the remainder of 2013, dependent upon various factors affecting us, including our liquidity position and tax law changes. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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 three and nine months ended September 30: | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock options | $ | 0.5 | $ | 0.5 | $ | 1.4 | $ | 1.5 | |||||||||
Performance stock rights | 1.2 | 0.5 | 4.4 | 4.8 | |||||||||||||
Restricted share units | 2.5 | 2.1 | 7.8 | 7.5 | |||||||||||||
Nonemployee director deferred stock units | 0.2 | — | 0.7 | 1 | |||||||||||||
Total stock-based compensation expense | $ | 4.4 | $ | 3.1 | $ | 14.3 | $ | 14.8 | |||||||||
Deferred income tax benefit | $ | 1.8 | $ | 1.2 | $ | 5.7 | $ | 5.9 | |||||||||
No stock-based compensation cost was capitalized during the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||
Stock Options | |||||||||||||||||
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. Our expected stock price volatility is estimated using the 10-year historical volatility of our stock price. The following table shows the weighted-average fair value per stock option granted during the nine months ended September 30, 2013, along with the assumptions incorporated into the valuation model: | |||||||||||||||||
February 2013 Grant | |||||||||||||||||
Weighted-average fair value per option | $6.03 | ||||||||||||||||
Expected term | 5 years | ||||||||||||||||
Risk-free interest rate | 0.18% – 2.11% | ||||||||||||||||
Expected dividend yield | 5.33% | ||||||||||||||||
Expected volatility | 24% | ||||||||||||||||
A summary of stock option activity for the nine months ended September 30, 2013, and information related to outstanding and exercisable stock options at September 30, 2013, is presented below: | |||||||||||||||||
Stock Options | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||
Exercise Price Per | Remaining | Intrinsic Value | |||||||||||||||
Share | Contractual Life | (Millions) | |||||||||||||||
(in Years) | |||||||||||||||||
Outstanding at December 31, 2012 | 2,046,355 | $ | 49.25 | ||||||||||||||
Granted | 319,234 | 56 | |||||||||||||||
Exercised | (793,455 | ) | 48.58 | ||||||||||||||
Forfeited | (15,510 | ) | 56 | ||||||||||||||
Outstanding at September 30, 2013 | 1,556,624 | $ | 50.91 | 6.5 | $ | 8.2 | |||||||||||
Exercisable at September 30, 2013 | 816,336 | $ | 49.92 | 4.8 | $ | 5.3 | |||||||||||
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 September 30, 2013. This is calculated as the difference between our closing stock price on September 30, 2013, and the option exercise price, multiplied by the number of in-the-money stock options. The intrinsic value of options exercised during the nine months ended September 30, 2013, and 2012, was $9.0 million and $10.8 million, respectively. The actual tax benefit realized for the tax deductions from these option exercises for the nine months ended September 30, 2013, and 2012, was $3.6 million and $4.4 million, respectively. | |||||||||||||||||
As of September 30, 2013, $1.5 million of compensation cost related to unvested and outstanding stock options was expected to be recognized over a weighted-average period of 2.0 years. | |||||||||||||||||
Performance Stock Rights | |||||||||||||||||
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. The expected volatility is estimated using two to three years of historical data. The table below reflects the assumptions used in the valuation of the outstanding grants at September 30: | |||||||||||||||||
2013 | |||||||||||||||||
Risk-free interest rate | 0.26% – 1.27% | ||||||||||||||||
Expected dividend yield | 5.18% – 5.34% | ||||||||||||||||
Expected volatility | 19% – 36% | ||||||||||||||||
A summary of the activity for the nine months ended September 30, 2013, 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, 2012 | 108,314 | $ | 65.38 | ||||||||||||||
Granted | 22,636 | 48.5 | |||||||||||||||
Award modifications (1) | 28,789 | 39.8 | |||||||||||||||
Distributed | (94,758 | ) | 72.36 | ||||||||||||||
Adjustment for final payout | 21,867 | 72.36 | |||||||||||||||
Forfeited | (1,099 | ) | 48.5 | ||||||||||||||
Outstanding at September 30, 2013 | 85,749 | $ | 46.62 | ||||||||||||||
(1) 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 our 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. | |||||||||||||||||
(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 the nine months ended September 30, 2013, and 2012, was $48.50 and $52.70, per performance stock right, respectively. | |||||||||||||||||
A summary of the activity for the nine months ended September 30, 2013, related to performance stock rights accounted for as liability awards is presented below: | |||||||||||||||||
Performance | |||||||||||||||||
Stock Rights | |||||||||||||||||
Outstanding at December 31, 2012 | 189,093 | ||||||||||||||||
Granted | 90,496 | ||||||||||||||||
Award modifications * | (28,789 | ) | |||||||||||||||
Distributed | (61,753 | ) | |||||||||||||||
Adjustment for final payout | 14,255 | ||||||||||||||||
Forfeited | (4,398 | ) | |||||||||||||||
Outstanding at September 30, 2013 | 198,904 | ||||||||||||||||
* | 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 our 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 weighted-average fair value of all outstanding performance stock rights accounted for as liability awards as of September 30, 2013, was $47.32 per performance stock right. | |||||||||||||||||
As of September 30, 2013, $3.0 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 1.5 years. | |||||||||||||||||
The total intrinsic value of performance stock rights distributed during the nine months ended September 30, 2013, and 2012, was $8.8 million and $4.7 million, respectively. The actual tax benefit realized for the tax deductions from the distribution of performance stock rights during the nine months ended September 30, 2013, and 2012, was $3.6 million and $1.9 million, respectively. | |||||||||||||||||
Restricted Share Units | |||||||||||||||||
A summary of the activity related to all restricted share unit awards (equity and liability awards) for the nine months ended September 30, 2013, is presented below: | |||||||||||||||||
Restricted Share | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Unit Awards | |||||||||||||||||
Outstanding at December 31, 2012 | 505,690 | $ | 48.38 | ||||||||||||||
Granted | 196,894 | 55.93 | |||||||||||||||
Dividend equivalents | 17,830 | 52.19 | |||||||||||||||
Vested and released | (207,411 | ) | 46.32 | ||||||||||||||
Forfeited | (5,997 | ) | 53.16 | ||||||||||||||
Outstanding at September 30, 2013 | 507,006 | $ | 52.24 | ||||||||||||||
As of September 30, 2013, $12.6 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 the nine months ended September 30, 2013, and 2012, was $11.6 million and $10.5 million, respectively. The actual tax benefit realized for the tax deductions from the vesting and release of restricted share units during the nine months ended September 30, 2013, and 2012, was $4.7 million and $4.2 million respectively. | |||||||||||||||||
The weighted-average grant date fair value of restricted share units awarded during the nine months ended September 30, 2013, and 2012, was $55.93 and $53.24 per unit, respectively. | |||||||||||||||||
Nonemployee Directors Deferred Stock Units | |||||||||||||||||
Each nonemployee director is granted deferred stock units (DSUs), typically in January of each year. The number of DSUs granted is calculated by dividing a set dollar amount by our closing common stock price on December 31 of the prior year. Prior to January 1, 2013, under the terms of the agreement, these awards vested immediately, and therefore were expensed on the grant date. Beginning in 2013, these awards generally vest over one year. Therefore, the expense for these awards is recognized pro-rata over the year in which the grant occurs. |
COMMON_EQUITY
COMMON EQUITY | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
COMMON EQUITY | ' | ||||||||||||||||
COMMON EQUITY | |||||||||||||||||
We had the following changes to issued common stock during the nine months ended September 30, 2013: | |||||||||||||||||
Common stock issued at December 31, 2012 | 78,287,906 | ||||||||||||||||
Shares issued | |||||||||||||||||
Stock-based compensation | 1,144,495 | ||||||||||||||||
Stock Investment Plan | 219,847 | ||||||||||||||||
Rabbi trust shares | 105,467 | ||||||||||||||||
Common stock issued at September 30, 2013 | 79,757,715 | ||||||||||||||||
The following table provides a summary of common stock activity to meet the requirements of our Stock Investment Plan and certain stock-based employee benefit and compensation plans: | |||||||||||||||||
Period | Method of meeting requirements | ||||||||||||||||
Beginning 02/05/2013 | Issuing new shares * | ||||||||||||||||
01/01/2012 – 02/04/2013 | Purchased shares on the open market | ||||||||||||||||
* | These stock issuances increased equity $71.1 million in 2013. | ||||||||||||||||
The following table reconciles common shares issued and outstanding: | |||||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||||
Shares | Average Cost * | Shares | Average Cost * | ||||||||||||||
Common stock issued | 79,757,715 | 78,287,906 | |||||||||||||||
Less: | |||||||||||||||||
Deferred compensation rabbi trust | 467,967 | $ | 48.42 | 385,439 | $ | 46.03 | |||||||||||
Total common shares outstanding | 79,289,748 | 77,902,467 | |||||||||||||||
* | Based on our stock price on the day the shares entered the deferred compensation rabbi trust. Shares paid out of the trust are valued at the average cost of shares in the trust. | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
Basic earnings per share is computed by dividing net income attributed to common shareholders by the weighted average number of common shares outstanding during the period, adjusted for shares we are obligated to issue under the deferred compensation and restricted share unit plans. Diluted earnings per share is computed in a similar manner, but includes the exercise and/or conversion of all potentially dilutive securities. Such dilutive items include in-the-money stock options, performance stock rights, restricted share units, and certain shares issuable under the deferred compensation plan. To the extent these items are accounted for as liability awards, the numerator is adjusted for any changes in income or loss that would have resulted had the awards been accounted for as equity awards during the period. The following table reconciles our computation of basic and diluted earnings per share: | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | |||||||||||||||||
Net income from continuing operations | $ | 39.4 | $ | 74.3 | $ | 217.7 | $ | 224.8 | |||||||||
Discontinued operations, net of tax | (0.6 | ) | (8.0 | ) | 4.7 | (9.2 | ) | ||||||||||
Preferred stock dividends of subsidiary | (0.7 | ) | (0.7 | ) | (2.3 | ) | (2.3 | ) | |||||||||
Noncontrolling interest in subsidiaries | — | 0.1 | 0.1 | 0.1 | |||||||||||||
Net income attributed to common shareholders — basic | $ | 38.1 | $ | 65.7 | $ | 220.2 | $ | 213.4 | |||||||||
Effect of dilutive securities | |||||||||||||||||
Stock-based compensation | (0.1 | ) | — | (0.1 | ) | — | |||||||||||
Net income attributed to common shareholders — diluted | $ | 38 | $ | 65.7 | $ | 220.1 | $ | 213.4 | |||||||||
Denominator: | |||||||||||||||||
Average shares of common stock — basic | 79.8 | 78.5 | 79.3 | 78.5 | |||||||||||||
Effect of dilutive securities | |||||||||||||||||
Stock-based compensation | 0.4 | 0.6 | 0.4 | 0.6 | |||||||||||||
Deferred compensation | — | 0.2 | 0.2 | 0.2 | |||||||||||||
Average shares of common stock — diluted | 80.2 | 79.3 | 79.9 | 79.3 | |||||||||||||
Earnings per common share | |||||||||||||||||
Basic | $ | 0.48 | $ | 0.84 | $ | 2.78 | $ | 2.72 | |||||||||
Diluted | 0.47 | 0.83 | 2.76 | 2.69 | |||||||||||||
The calculation of diluted earnings per share excluded the following weighted-average outstanding securities that had an anti-dilutive effect: | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock-based compensation | 0.4 | 0.9 | 0.2 | 0.6 | |||||||||||||
Deferred compensation | 0.2 | — | 0.1 | — | |||||||||||||
Dividend Restrictions | |||||||||||||||||
Our ability as a holding company to pay dividends is largely dependent upon the availability of funds from our subsidiaries. Various laws, regulations, and financial covenants impose restrictions on the ability of certain of our regulated utility subsidiaries to transfer funds to us in the form of dividends. Our regulated utility subsidiaries, with the exception of MGU, are prohibited from loaning funds to us, either directly or indirectly. | |||||||||||||||||
The PSCW allows WPS to pay dividends on its common stock of no more than 103% of the previous year’s common stock dividend. WPS may return capital to us if its average financial common equity ratio is at least 51% on a calendar-year basis. WPS must obtain PSCW approval if a return of capital would cause its average financial common equity ratio to fall below this level. Our right to receive dividends on the common stock of WPS is also subject to the prior rights of WPS’s preferred shareholders and to provisions in WPS’s restated articles of incorporation, which limit the amount of common stock dividends that WPS may pay if its common stock and common stock surplus accounts constitute less than 25% of its total capitalization. | |||||||||||||||||
NSG’s long-term debt obligations contain provisions and covenants restricting the payment of cash dividends and the purchase or redemption of its capital stock. | |||||||||||||||||
PGL and WPS have short-term debt obligations containing 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 their outstanding debt obligations. | |||||||||||||||||
We also have short-term and long-term debt obligations that 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. At September 30, 2013, these covenants did not restrict the payment of any dividends beyond the amount restricted under our subsidiary requirements described above. | |||||||||||||||||
As of September 30, 2013, total restricted net assets were $1,743.4 million. Our equity in undistributed earnings of 50% or less owned investees accounted for by the equity method was $138.2 million at September 30, 2013. | |||||||||||||||||
We have the option to defer interest payments on our outstanding Junior Subordinated Notes, from time to time, for one or more periods of up to ten consecutive years per period. During any period in which we defer interest payments, we may not declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment on, any of our capital stock. | |||||||||||||||||
Except for the restrictions described above and subject to applicable law, we do not have any other significant dividend restrictions. | |||||||||||||||||
Capital Transactions with Subsidiaries | |||||||||||||||||
During the nine months ended September 30, 2013, capital transactions with subsidiaries were as follows (in millions): | |||||||||||||||||
Subsidiary | Dividends To Parent | Return Of | Equity Contributions | ||||||||||||||
Capital To Parent | From Parent | ||||||||||||||||
ITF (1) | $ | — | $ | — | $ | 25.2 | |||||||||||
MERC | — | 21 | 3.5 | ||||||||||||||
MGU | — | 12.5 | 5 | ||||||||||||||
UPPCO | — | 5.5 | — | ||||||||||||||
WPS | 81.5 | 35 | 200 | ||||||||||||||
WPS Investments, LLC (2) | 52.7 | — | 10.2 | ||||||||||||||
Total | $ | 134.2 | $ | 74 | $ | 243.9 | |||||||||||
(1) | ITF is a direct wholly owned subsidiary of PELLC. As a result, it makes distributions to PELLC, and receives equity contributions from PELLC. Subject to applicable law, PELLC does not have any dividend restrictions or limitations on distributions to us. | ||||||||||||||||
(2) | WPS Investments, LLC is a consolidated subsidiary that is jointly owned by us, WPS, and UPPCO. At September 30, 2013, we had an 86.13% ownership interest, while WPS and UPPCO had an 11.44% and 2.43% ownership interest, respectively. Distributions from WPS Investments, LLC are made to the owners based on their respective ownership percentages. During 2013, all equity contributions to WPS Investments, LLC were made solely by us. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2013 | |
VARIABLE INTEREST ENTITIES | ' |
VARIABLE INTEREST ENTITIES | ' |
VARIABLE INTEREST ENTITIES | |
In 2012, ITF formed AMP Trillium LLC as a joint venture with AMP Americas LLC. ITF owns 30% and AMP Americas LLC owns 70% of the joint venture. The joint venture was established to own and operate compressed natural gas fueling stations. The preferred source of capital funding for the joint venture is loans from ITF. We determined that the joint venture is a variable interest entity and that ITF is the primary beneficiary, which requires us to consolidate the assets, liabilities, and statements of income of the joint venture. At September 30, 2013, and December 31, 2012, our variable interests in the joint venture included an insignificant equity investment and insignificant receivables. Our maximum exposure to loss as a result of this joint venture was not significant. The carrying amounts of AMP Trillium LLC assets and liabilities included on our balance sheets were also not significant. | |
In 2011, ITF formed Integrys PTI CNG Fuels LLC as a joint venture with Paper Transport Inc. The joint venture was established to own and operate compressed natural gas fueling stations. ITF and Paper Transport Inc. each initially owned 50% of the joint venture. We determined that the joint venture was a variable interest entity and that ITF was the primary beneficiary, which required us to consolidated the assets, liabilities, and statements of income of the joint venture. At December 31, 2012, our variable interests in the joint venture included an insignificant equity investment and insignificant receivables. The carrying amounts of Integrys PTI CNG Fuels LLC assets and liabilities included on our December 31, 2012, balance sheet were also not significant. In June 2013, ITF purchased Paper Transport Inc.'s 50% ownership interest of the joint venture, and it became a wholly-owned subsidiary. | |
We have a variable interest in an entity through a power purchase agreement at UPPCO that reimburses an independent power producing entity for coal costs relating to purchased energy. There is no obligation to purchase energy under this agreement. This contract for 17.5 megawatts of capacity expires in 2014. We evaluated this variable interest entity for possible consolidation. We considered which interest holder has the power to direct the activities that most significantly impact the economics of the variable interest entity; this interest holder is considered the primary beneficiary of the entity and is required to consolidate the entity. For a variety of reasons, including qualitative factors such as the length of the remaining term of the contract compared with the remaining life of the plant and the fact that we do not have the power to direct the operations and maintenance of the facility, we determined we are not the primary beneficiary of the variable interest entity. At September 30, 2013, and December 31, 2012, the assets and liabilities on our balance sheets that related to our involvement with this variable interest entity pertained to working capital accounts and represented the amounts we owed for current deliveries of power. We have not guaranteed any debt or provided any equity support, liquidity arrangements, performance guarantees, or other commitments associated with the contract. There is not a significant potential exposure to loss as a result of involvement with the variable interest entity. | |
We also had a variable interest in Fox Energy Company LLC through a power purchase agreement at WPS that contained a tolling arrangement related to the cost of fuel. In connection with the purchase of Fox Energy Company LLC in March 2013, WPS paid $50.0 million for the early termination of this 500-megawatt agreement. See Note 4, "Acquisitions," for more information regarding this purchase. We evaluated this variable interest entity for possible consolidation and determined that consolidation was not required since we were not the primary beneficiary of the variable interest entity. The assets and liabilities on our December 31, 2012, balance sheet that related to our involvement with this variable interest entity pertained to working capital accounts and represented the amounts we owed for current deliveries of power. |
FAIR_VALUE
FAIR VALUE | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
FAIR VALUE | ' | ||||||||||||||||||||||||
FAIR VALUE | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
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. These assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. | |||||||||||||||||||||||||
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 methodologies. | |||||||||||||||||||||||||
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. Level 3 instruments include those that may be more structured or otherwise tailored to customers' needs. | |||||||||||||||||||||||||
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||||||
We determine fair value using a market-based approach that uses observable market inputs where available, and internally developed inputs where observable market data is not readily available. For the unobservable inputs, consideration is given to the assumptions that market participants would use in valuing the asset or liability. These factors include not only the credit standing of the counterparties involved, but also the impact of our nonperformance risk on our liabilities. | |||||||||||||||||||||||||
When possible, we base the valuations of our risk management assets and liabilities on quoted prices for identical assets in active markets. These valuations are classified in Level 1. The valuations of certain contracts include inputs related to market price risk (commodity or interest rate), price volatility (for option contracts), price correlation (for cross commodity contracts), probability of default, and time value. These inputs are available through multiple sources, including brokers and over-the-counter and online exchanges. Transactions valued using these inputs are classified in Level 2. | |||||||||||||||||||||||||
Certain assets and liabilities are categorized in Level 3 due to the significance of unobservable or internally-developed inputs. The primary reasons for a Level 3 classification are as follows: | |||||||||||||||||||||||||
• | While forward price curves may have been based on observable information, significant assumptions may have been made regarding monthly shaping and locational basis differentials. | ||||||||||||||||||||||||
• | Certain transactions were valued using price curves that extended beyond an observable period. Assumptions were made to extrapolate prices from the last observable period through the end of the transaction term, primarily through the use of historically settled data or correlations to other locations. | ||||||||||||||||||||||||
We have established risk oversight committees 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 any of the trading functions within the organization. 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. | |||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Risk Management Assets | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 0.9 | $ | 1.8 | $ | — | $ | 2.7 | |||||||||||||||||
Financial transmission rights (FTRs) | — | — | 3.4 | 3.4 | |||||||||||||||||||||
Coal contracts | — | — | 1.5 | 1.5 | |||||||||||||||||||||
Nonregulated Segments | |||||||||||||||||||||||||
Natural gas contracts | 9.9 | 42.3 | 21.3 | 73.5 | |||||||||||||||||||||
Electric contracts | 70.1 | 49 | 12.8 | 131.9 | |||||||||||||||||||||
Total Risk Management Assets | $ | 80.9 | $ | 93.1 | $ | 39 | $ | 213 | |||||||||||||||||
Investment in exchange-traded funds | $ | 13.4 | $ | — | $ | — | $ | 13.4 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Risk Management Liabilities | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 0.8 | $ | 5.2 | $ | — | $ | 6 | |||||||||||||||||
Petroleum product contracts | 0.2 | — | — | 0.2 | |||||||||||||||||||||
FTRs | — | — | 0.4 | 0.4 | |||||||||||||||||||||
Coal contracts | — | — | 2.7 | 2.7 | |||||||||||||||||||||
Nonregulated Segments | |||||||||||||||||||||||||
Natural gas contracts | 16 | 26.5 | 9.7 | 52.2 | |||||||||||||||||||||
Electric contracts | 75.6 | 69.9 | 10.1 | 155.6 | |||||||||||||||||||||
Total Risk Management Liabilities | $ | 92.6 | $ | 101.6 | $ | 22.9 | $ | 217.1 | |||||||||||||||||
Contingent consideration related to the acquisition of Compass Energy Services (Compass) * | $ | — | $ | — | $ | 7.7 | $ | 7.7 | |||||||||||||||||
* | See Note 4, "Acquisitions," for more information. | ||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Risk Management Assets | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 0.3 | $ | 3.1 | $ | — | $ | 3.4 | |||||||||||||||||
FTRs | — | — | 2.1 | 2.1 | |||||||||||||||||||||
Petroleum product contracts | 0.2 | — | — | 0.2 | |||||||||||||||||||||
Coal contracts | — | — | 2.5 | 2.5 | |||||||||||||||||||||
Nonregulated Segments | |||||||||||||||||||||||||
Natural gas contracts | 21.4 | 36.4 | 5.4 | 63.2 | |||||||||||||||||||||
Electric contracts | 48.4 | 61.3 | 9.6 | 119.3 | |||||||||||||||||||||
Total Risk Management Assets | $ | 70.3 | $ | 100.8 | $ | 19.6 | $ | 190.7 | |||||||||||||||||
Investment in exchange-traded funds | $ | 11.8 | $ | — | $ | — | $ | 11.8 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Risk Management Liabilities | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 1.1 | $ | 14.1 | $ | — | $ | 15.2 | |||||||||||||||||
FTRs | — | — | 0.1 | 0.1 | |||||||||||||||||||||
Coal contracts | — | — | 9 | 9 | |||||||||||||||||||||
Nonregulated Segments | |||||||||||||||||||||||||
Natural gas contracts | 17.7 | 36.9 | 1.5 | 56.1 | |||||||||||||||||||||
Electric contracts | 54.9 | 91.1 | 13.9 | 159.9 | |||||||||||||||||||||
Total Risk Management Liabilities | $ | 73.7 | $ | 142.1 | $ | 24.5 | $ | 240.3 | |||||||||||||||||
The risk management assets and liabilities listed in the tables above include options, swaps, futures, physical commodity contracts, and other instruments used to manage market risks related to changes in commodity prices. For more information on derivative instruments, see Note 3, "Risk Management Activities." | |||||||||||||||||||||||||
The following tables show net risk management assets (liabilities) transferred between the levels of the fair value hierarchy: | |||||||||||||||||||||||||
Nonregulated Segments — Natural Gas Contracts | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | — | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 0.3 | $ | — | N/A | 0.3 | |||||||||||||||||
Transfers into Level 3 from | — | 2.5 | N/A | — | 0.4 | N/A | |||||||||||||||||||
Nonregulated Segments — Natural Gas Contracts | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | — | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 0.3 | $ | — | N/A | 1.7 | |||||||||||||||||
Transfers into Level 3 from | — | 4 | N/A | — | 3.2 | N/A | |||||||||||||||||||
Nonregulated Segments — Electric Contracts | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | — | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | (0.8 | ) | $ | — | N/A | (1.9 | ) | |||||||||||||||
Transfers into Level 3 from | (0.2 | ) | — | N/A | — | 1 | N/A | ||||||||||||||||||
Nonregulated Segments — Electric Contracts | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | — | — | N/A | $ | — | $ | — | ||||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 4.6 | $ | — | N/A | (5.8 | ) | ||||||||||||||||
Transfers into Level 3 from | (0.2 | ) | 6.2 | N/A | — | (7.8 | ) | N/A | |||||||||||||||||
Derivatives are transferred between the levels of the fair value hierarchy primarily due to changes in the source of data used to construct price curves as a result of changes in market liquidity. We recognize transfers between the levels at the value as of the end of the reporting period. | |||||||||||||||||||||||||
The significant unobservable inputs used in the valuation that resulted in categorization within Level 3 were as follows at September 30, 2013. The amounts and percentages 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 transaction to be classified as Level 3. | |||||||||||||||||||||||||
Fair Value (Millions) | |||||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Unobservable Input | Average or Range | |||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
FTRs | $ | 3.4 | $ | 0.4 | Market-based | Forward market prices ($/megawatt-month) (1) | $180.59 | ||||||||||||||||||
Coal contracts | 1.5 | 2.7 | Market-based | Forward market prices ($/ton) (2) | $12.21 — $14.63 | ||||||||||||||||||||
Nonregulated Segments | |||||||||||||||||||||||||
Natural gas contracts | 21.3 | 9.7 | Market-based | Forward market prices ($/dekatherm) (3) | ($2.36) — $8.17 | ||||||||||||||||||||
Probability of default(4) | 11.6% — 51.0% | ||||||||||||||||||||||||
Electric contracts | 12.8 | 10.1 | Market-based | Forward market prices ($/megawatt-hours) (3) | ($7.15) — $9.25 | ||||||||||||||||||||
Probability of default(4) | 26 | % | |||||||||||||||||||||||
Option volatilities(5) | 19.3% — 118.0% | ||||||||||||||||||||||||
Monthly curve shaping(6) | (37.5)% — 25.6% | ||||||||||||||||||||||||
Contingent consideration related to the acquisition of Compass | N/A | 7.7 | Monte Carlo analysis | Growth rate(7) | (32)% — 157% | ||||||||||||||||||||
(1) | Represents forward market prices developed using historical cleared pricing data from MISO. | ||||||||||||||||||||||||
(2) | Represents third-party forward market pricing. | ||||||||||||||||||||||||
(3) | Represents unobservable basis spreads developed using historical settled prices that are applied to observable market prices at various natural gas and electric locations, as well as unobservable adjustments made to extend observable market prices beyond the quoted period through the end of the transaction term. | ||||||||||||||||||||||||
(4) | Based on Moody's one-year counterparty default percentages. | ||||||||||||||||||||||||
(5) | Represents the range of volatilities used in the valuation of options. Volatilities are derived from an internal model using volatility curves from third parties. | ||||||||||||||||||||||||
(6) | Represents adjustments made to forward market price curves to disaggregate average prices of multiple periods into discrete monthly prices. | ||||||||||||||||||||||||
(7) | Represents the range of assumed growth rates of earnings before interest, taxes, and amortization input into the valuation model. | ||||||||||||||||||||||||
Significant changes in historical settlement prices, forward commodity prices, and option volatilities would result in a directionally similar significant change in fair value. Significant changes in probability of default would result in a significant directionally opposite change in fair value. Changes in the adjustments to prices related to monthly curve shaping would affect fair value differently depending on their direction. A significant decrease in the growth rate used to value the contingent consideration would result in a directionally similar significant change in fair value. A significant increase in the growth rate would not have a significant impact on the fair value as the contingent consideration is limited to $8.0 million. | |||||||||||||||||||||||||
The following tables set forth a reconciliation of changes in the fair value of items categorized as Level 3 measurements: | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nonregulated Segments | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration* | FTRs | Coal Contracts | Total | |||||||||||||||||||
Balance at the beginning of the period | $ | 7.7 | $ | 4.1 | $ | (7.7 | ) | $ | 3.9 | $ | (2.3 | ) | $ | 5.7 | |||||||||||
Net realized and unrealized gains included in earnings | 4.2 | 1.9 | — | 1.3 | — | 7.4 | |||||||||||||||||||
Net unrealized gains (losses) recorded as regulatory assets or liabilities | — | — | — | 0.6 | (4.5 | ) | (3.9 | ) | |||||||||||||||||
Purchases | — | 0.7 | — | — | — | 0.7 | |||||||||||||||||||
Settlements | (2.5 | ) | (4.6 | ) | — | (2.8 | ) | 5.6 | (4.3 | ) | |||||||||||||||
Net transfers into Level 3 | 2.5 | (0.2 | ) | — | — | — | 2.3 | ||||||||||||||||||
Net transfers out of Level 3 | (0.3 | ) | 0.8 | — | — | — | 0.5 | ||||||||||||||||||
Balance at the end of the period | $ | 11.6 | $ | 2.7 | $ | (7.7 | ) | $ | 3 | $ | (1.2 | ) | $ | 8.4 | |||||||||||
Net unrealized gains included in earnings related to instruments still held at the end of the period | $ | 4.2 | $ | 1.9 | $ | — | $ | — | $ | — | $ | 6.1 | |||||||||||||
* | Represents the contingent consideration related to the acquisition of Compass. See Note 4 "Acquisitions," for more information. | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nonregulated Segments | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration* | FTRs | Coal Contracts | Total | |||||||||||||||||||
Balance at the beginning of the period | $ | 3.9 | $ | (4.3 | ) | $ | — | $ | 2 | $ | (6.5 | ) | $ | (4.9 | ) | ||||||||||
Net realized and unrealized gains included in earnings | 1.3 | 7.6 | — | 1.7 | — | 10.6 | |||||||||||||||||||
Net unrealized (losses) gains recorded as regulatory assets or liabilities | — | — | — | (0.3 | ) | 2.2 | 1.9 | ||||||||||||||||||
Purchases | 7 | 2.3 | (7.7 | ) | 4.9 | — | 6.5 | ||||||||||||||||||
Sales | — | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||||||
Settlements | (4.3 | ) | (4.3 | ) | — | (5.2 | ) | 3.1 | (10.7 | ) | |||||||||||||||
Net transfers into Level 3 | 4 | 6 | — | — | — | 10 | |||||||||||||||||||
Net transfers out of Level 3 | (0.3 | ) | (4.6 | ) | — | — | — | (4.9 | ) | ||||||||||||||||
Balance at the end of the period | $ | 11.6 | $ | 2.7 | $ | (7.7 | ) | $ | 3 | $ | (1.2 | ) | $ | 8.4 | |||||||||||
Net unrealized gains included in earnings related to instruments still held at the end of the period | $ | 1.3 | $ | 7.6 | $ | — | $ | — | $ | — | $ | 8.9 | |||||||||||||
* | Represents the contingent consideration related to the acquisition of Compass. See Note 4 "Acquisitions," for more information. | ||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Nonregulated Segments | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | FTRs | Coal Contracts | Total | ||||||||||||||||||||
Balance at the beginning of the period | $ | 6.3 | $ | (14.7 | ) | $ | 4.8 | $ | (9.8 | ) | $ | (13.4 | ) | ||||||||||||
Net realized and unrealized gains (losses) included in earnings | 2.7 | 2.6 | * | (1.0 | ) | — | 4.3 | ||||||||||||||||||
Net unrealized (losses) gains recorded as regulatory assets or liabilities | — | — | (0.2 | ) | 2.1 | 1.9 | |||||||||||||||||||
Settlements | (6.7 | ) | (0.1 | ) | (0.4 | ) | (1.6 | ) | (8.8 | ) | |||||||||||||||
Net transfers into Level 3 | 0.4 | 1 | — | — | 1.4 | ||||||||||||||||||||
Net transfers out of Level 3 | (0.3 | ) | 1.9 | — | — | 1.6 | |||||||||||||||||||
Balance at the end of the period | $ | 2.4 | $ | (9.3 | ) | $ | 3.2 | $ | (9.3 | ) | $ | (13.0 | ) | ||||||||||||
Net unrealized gains included in earnings related to instruments still held at the end of the period | $ | 2.7 | $ | 2.6 | * | $ | — | $ | — | $ | 5.3 | ||||||||||||||
* | Includes a $0.2 million net unrealized loss reported as discontinued operations. See Note 5, "Discontinued Operations," for more information. | ||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | Nonregulated Segments | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | FTRs | Coal Contracts | Total | ||||||||||||||||||||
Balance at the beginning of the period | $ | 8.3 | $ | (11.5 | ) | $ | 2.2 | $ | (6.9 | ) | $ | (7.9 | ) | ||||||||||||
Net realized and unrealized gains (losses) included in earnings | 1.9 | (5.3 | ) | * | 1.5 | — | (1.9 | ) | |||||||||||||||||
Net unrealized gains recorded as regulatory assets or liabilities | — | — | 0.1 | 1.5 | 1.6 | ||||||||||||||||||||
Purchases | — | 2.1 | 4.9 | — | 7 | ||||||||||||||||||||
Sales | — | — | (0.1 | ) | — | (0.1 | ) | ||||||||||||||||||
Settlements | (9.3 | ) | 7.4 | (5.4 | ) | (3.9 | ) | (11.2 | ) | ||||||||||||||||
Net transfers into Level 3 | 3.2 | (7.8 | ) | — | — | (4.6 | ) | ||||||||||||||||||
Net transfers out of Level 3 | (1.7 | ) | 5.8 | — | — | 4.1 | |||||||||||||||||||
Balance at the end of the period | $ | 2.4 | $ | (9.3 | ) | $ | 3.2 | $ | (9.3 | ) | $ | (13.0 | ) | ||||||||||||
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period | $ | 1.9 | $ | (5.3 | ) | * | $ | — | $ | — | $ | (3.4 | ) | ||||||||||||
* | Includes a $0.6 million net unrealized loss reported as discontinued operations. See Note 5, "Discontinued Operations," for more information. | ||||||||||||||||||||||||
Realized and unrealized gains and losses included in earnings related to Integrys Energy Services’ risk management assets and liabilities are recorded through nonregulated revenue or nonregulated cost of sales on the statements of income, depending on the nature of the instrument. Unrealized gains and losses on Level 3 derivatives at the utilities are deferred as regulatory assets or liabilities. Therefore, these fair value measurements have no impact on earnings. Realized gains and losses on these instruments flow through utility 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: | |||||||||||||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||||||||||||
(Millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||
Long-term debt | $ | 2,782.70 | $ | 2,768.50 | $ | 2,245.20 | $ | 2,425.80 | |||||||||||||||||
Preferred stock of subsidiary | 51.1 | 61.6 | 51.1 | 52.7 | |||||||||||||||||||||
The fair values of long-term debt instruments 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, notes payable, and outstanding commercial paper, the carrying amount for each of these items approximates fair value. |
ADVERTISING_COSTS
ADVERTISING COSTS | 9 Months Ended |
Sep. 30, 2013 | |
Other Assets, Noncurrent [Abstract] | ' |
ADVERTISING COSTS | ' |
ADVERTISING COSTS | |
Costs associated with certain natural gas and electric direct-response advertising campaigns at Integrys Energy Services were capitalized and reported as other long-term assets on the balance sheets. The capitalized costs result in probable future benefits and were incurred to solicit sales to customers who could be shown to have responded specifically to the advertising. Capitalized direct-response advertising costs, net of accumulated amortization, totaled $5.2 million and $5.5 million as of September 30, 2013, and December 31, 2012, respectively. The asset balances for each of the direct-response advertising cost pools are reviewed quarterly for impairment. We did not record any significant impairments during the three and nine months ended September 30, 2013, and 2012. | |
Direct-response advertising costs are amortized to operating and maintenance expense over the estimated period of benefit, which is approximately two years. The amortization of direct-response advertising costs was $0.1 million and $1.0 million for the three months ended September 30, 2013, and 2012, respectively. The amortization of direct-response advertising costs was $4.1 million and $2.3 million for the nine months ended September 30, 2013, and 2012, respectively. | |
We expense all advertising costs as incurred, except for those capitalized as direct-response advertising, as discussed above. Other advertising expense was $2.2 million and $2.1 million, for the three months ended September 30, 2013, and 2012, respectively. Other advertising expense was $6.6 million and $5.2 million, for the nine months ended September 30, 2013, and 2012, respectively. |
REGULATORY_ENVIRONMENT
REGULATORY ENVIRONMENT | 9 Months Ended |
Sep. 30, 2013 | |
Regulated Operations [Abstract] | ' |
REGULATORY ENVIRONMENT | ' |
REGULATORY ENVIRONMENT | |
Wisconsin | |
2014 Rate Case | |
In March 2013, WPS filed an application with the PSCW to increase retail electric and natural gas rates $71.1 million and $19.0 million, respectively, with rates proposed to be effective January 1, 2014. The filing includes a request for a 10.75% return on common equity and a common equity ratio of 51.11% in WPS's regulatory capital structure. The proposed retail electric rate increase is primarily driven by the purchase and operation of the Fox Energy Center, the completion of a one-time fuel refund to customers in 2013, increased electric transmission costs, additional construction related to the installation of environmental controls and the improvement of electric reliability, the recovery of pension and other employee benefit costs deferred in 2013 rates, and general inflation. Partially offsetting these increases are lower purchased power capacity costs and a refund to customers resulting from WPS's decoupling mechanism. The proposed retail natural gas rate increase is generally the result of the recovery of amounts related to decoupling, increased costs of inspecting natural gas lines for safety, the recovery of pension and other employee benefit costs deferred in 2013 rates, and general inflation. | |
In August 2013, the PSCW Staff submitted testimony and recommended rate increases of $9.3 million and $7.8 million for retail electric and natural gas, respectively, reflecting a 10.20% return on common equity. Their recommendation also included a common equity ratio of 50.14% in WPS's regulatory capital structure. The PSCW held both technical and public hearings in September 2013. In October 2013, WPS issued an initial brief revising its requested retail electric and natural gas rate increases to approximately $60 million and approximately $14 million, respectively, including a reduced return on common equity of 10.60%. Included in these revised amounts, is WPS's request for recovery of $1.7 million for the Wisconsin retail allocation of environmental remediation capital and operating costs related to WPS's Consent Decree with the EPA. See Note 12, "Commitments and Contingencies," for more information. Finally, WPS requested the removal of the annual caps associated with the decoupling mechanism that is currently in place. WPS's revised request is a result of WPS's current position on contested issues. New rates are expected to be effective January 1, 2014. | |
2013 Rates | |
In December 2012, the PSCW issued an order approving a settlement agreement for WPS, effective January 1, 2013. The settlement agreement included a $28.5 million imputed 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 is being deferred for recovery in a future rate proceeding. As a result, there was no change to customers' 2013 retail electric rates. The settlement agreement also included a $3.4 million retail natural gas rate decrease, which included a deferral of $2.1 million of pension and other employee benefit costs that will be recovered in a future rate proceeding. The 2013 electric and natural gas rates were reduced based on updated December 31, 2012, pension and other employee benefit cost estimates, which were filed with the PSCW in March 2013. The settlement agreement reflected a 10.30% return on common equity and a common equity ratio of 51.61% in WPS's regulatory capital structure. In addition, WPS was 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 settlement agreement also authorized the recovery of direct Cross State Air Pollution Rule (CSAPR) costs incurred through the end of 2012. Lastly, the settlement agreement authorized WPS to switch from production tax credits to Section 1603 Grants for the Crane Creek Wind Project. | |
A new decoupling mechanism for natural gas and electric residential and small commercial and industrial customers was approved as part of the settlement agreement on a pilot basis for 2013. The mechanism is based on total rate case-approved margins, rather than being calculated on a per-customer basis. The mechanism does not cover all customer classes, and it continues to include 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 are subject to these caps and are included in rates upon approval in a rate proceeding. | |
2012 Rates | |
In December 2011, the PSCW issued a final written order for WPS, effective January 1, 2012. It authorized an electric rate increase of $8.1 million and required a natural gas rate decrease of $7.2 million. The electric rate increase was driven by projected increases in fuel and purchased power costs. However, to the extent that actual fuel and purchased power costs exceeded a 2% price variance from costs included in rates, they were deferred for recovery or refund in a future rate proceeding. The rate order allowed for the netting of the 2010 electric decoupling under-collection with the 2011 electric decoupling over-collection and reflected reduced contributions to the Focus on Energy Program. The rate order also allowed for the deferral of direct CSAPR compliance costs, including carrying costs. | |
Michigan | |
2014 MGU Rate Case | |
In October 2013, MGU entered into a settlement agreement with the MPSC and all other involved parties resolving all issues in the MGU 2014 rate case. The settlement agreement provides for a retail natural gas rate increase of $4.5 million, effective January 1, 2014. The rates reflect a 10.25% return on common equity and a common equity ratio of 48.62% in MGU's regulatory capital structure. Additionally, the order requires MGU to terminate its existing decoupling mechanism, effective December 31, 2013, and replace it with a new decoupling mechanism based on total margins, beginning January 1, 2015. The decoupling mechanism does not cover variations in volumes due to actual weather being different from rate case-assumed weather. The rate order also terminates MGU's existing uncollectible expense true-up mechanism after December 31, 2013. | |
MGU Depreciation Case | |
In January 2013, the Michigan Court of Appeals issued an order reversing the MPSC's 2010 disallowance of $2.5 million associated with the early retirement of certain MGU assets. As a result, a $2.5 million reduction to depreciation expense was recorded in the first quarter of 2013. In June 2013, the MPSC issued an order related to MGU's most recent depreciation case. This order also approved a settlement agreement reflecting recovery of these previously disallowed costs. | |
2014 UPPCO Rate Case | |
In June 2013, UPPCO filed an application with the MPSC to increase retail electric rates $7.9 million. Interim rates could be effective on January 1, 2014. UPPCO's request reflects a 10.75% return on common equity and a common equity ratio of 54.98% in its regulatory capital structure. The request was primarily driven by capital investments associated with FERC mandated replacements and upgrades of hydroelectric facilities, and increased costs associated with uncollectibles expense, line clearance, system losses, and general inflation. UPPCO is also requesting authority from the MPSC to implement a revenue adjustment mechanism that operates similar to a decoupling mechanism. | |
2012 UPPCO Rates | |
In December 2011, the MPSC issued an order approving a settlement agreement for UPPCO authorizing a retail electric rate increase of $4.2 million, effective January 1, 2012. The new rates reflect a 10.20% return on common equity and a common equity ratio of 54.90% in its regulatory capital structure. The order stated that if UPPCO filed a rate case in 2013, the earliest effective date for new final rates or self-implemented rates would be January 1, 2014. Additionally, the order required UPPCO to terminate its existing decoupling mechanism, effective December 31, 2011, and replace it with a new decoupling mechanism based on total margins, beginning January 1, 2013. The new decoupling mechanism does not cover variations in volumes due to actual weather being different from rate case-assumed weather. It includes an annual 1.5% cap based on distribution revenues approved in the rate case. UPPCO had no decoupling mechanism in place during 2012. | |
In April 2012, the State of Michigan Court of Appeals ruled in a Detroit Edison proceeding that the MPSC did not have authority to approve electric decoupling mechanisms. This decision was not appealed. As a result of this ruling, UPPCO expensed $1.5 million in the first quarter of 2012 related to electric decoupling amounts previously deferred for regulatory recovery. However, in August 2012, the MPSC issued an order stating it had the authority to approve UPPCO's decoupling mechanism, as UPPCO's decoupling mechanism was authorized pursuant to an MPSC-approved settlement agreement. Therefore, in the third quarter of 2012, UPPCO reversed the $1.5 million previously expensed in the first quarter of 2012. | |
Illinois | |
Qualifying Infrastructure Plant (QIP) Rider | |
In July 2013, Illinois Public Act 98-0057 (formerly Senate Bill 2266), The Natural Gas Consumer, Safety & Reliability Act, became law. The Act gives PGL a cost recovery mechanism for Illinois natural gas infrastructure upgrades that will be collected through a surcharge on customer bills. Later in July 2013, the ICC adopted emergency rules to implement the law. The ICC also opened a docket to develop permanent rules, which will replace the emergency rules. This Act eliminates a requirement for PGL and NSG to file biennial rate proceedings under existing Illinois coal-to-gas legislation once PGL obtains an infrastructure tariff. In September 2013, PGL filed with the ICC requesting the proposed rider. The ICC must act no later than January 17, 2014. The ICC may modify the rider only to ensure compliance with the law. The rider would take effect on January 1 of the year in which the ICC issues its order. | |
2013 Rates | |
In June 2013, the ICC issued a final order authorizing a retail natural gas rate increase of $57.2 million for PGL and $6.6 million for NSG, effective June 27, 2013. The rates for PGL reflect a 9.28% return on common equity and a common equity ratio of 50.43% in its regulatory capital structure. The rates for NSG reflect a 9.28% return on common equity and a common equity ratio of 50.32% in its regulatory capital structure. The rate order also allows PGL and NSG to continue the use of their decoupling mechanisms, as affirmed by the Illinois Appellate Court (Court). | |
In August 2013, the ICC granted certain rehearing requests on tax-related issues filed by PGL, NSG, and other intervenors. PGL and NSG had asked for a correction of the revenue requirement for deferred tax assets related to tax net operating losses (NOLs) incurred in 2012 and 2013. In the ICC’s order, these deferred tax assets were included in rate base, but computational errors were made. Other intervenors have requested the exclusion from rate base of the deferred tax asset related to the 2012 tax NOL. The tax NOLs in question resulted from PGL and NSG claiming accelerated depreciation deductions in 2012 and 2013. If the deferred tax asset created by the 2012 tax NOL is excluded from rate base or the corrections requested by PGL and NSG are not made, there is a potential that the federal income tax "normalization" rules could be violated. These rules specify that the benefit of claiming accelerated depreciation for federal income tax purposes cannot be given to customers before the tax cash flow is received by the company. Once received, the benefit must be given to customers over the useful life of the underlying property. A violation could cause PGL and NSG to lose the ability to claim accelerated depreciation deductions for income tax purposes. We believe this outcome is unlikely. | |
2012 Rates | |
In January 2012, the ICC issued a final order authorizing a retail natural gas rate increase of $57.8 million for PGL and $1.9 million for NSG, effective January 21, 2012. The rates for PGL reflected a 9.45% return on common equity and a common equity ratio of 49.00% in PGL's regulatory capital structure. The rates for NSG reflected a 9.45% return on common equity and a common equity ratio of 50.00% in NSG's regulatory capital structure. The rate order also approved a permanent decoupling mechanism. | |
The Illinois Attorney General and Citizens Utility Board appealed to the Court the ICC's authority to approve PGL's and NSG's decoupling mechanism and filed a motion to stay the implementation of the permanent decoupling mechanism or make collections subject to refund. In May 2012, the ICC issued a revised amendatory order granting the Illinois Attorney General's motion to make revenues collected under the permanent decoupling mechanism subject to refund. Refunds would have been required if the Court found that the ICC did not have authority to approve decoupling and ordered a refund. As a result, the recovery of amounts related to decoupling in 2012 were uncertain, and PGL and NSG had established offsetting reserves equal to decoupling amounts accrued. In March 2013, the Court issued an opinion that affirmed the ICC's order approving the permanent decoupling mechanism. As a result, the reserves recorded in 2012 were reversed in the first quarter of 2013. PGL's and NSG's permanent decoupling mechanism is in place for 2013. In June 2013, the Illinois Attorney General and Citizens Utility Board petitioned the Illinois Supreme Court to appeal the Court's decision. The Illinois Supreme Court granted the request in September 2013. The Illinois Supreme Court has no deadline by which it must act. Decoupling amounts recorded in 2012 and 2013 are expected to be recovered or refunded, absent an adverse Illinois Supreme Court decision. Between April 1, 2013 and December 31, 2013, PGL and NSG expect to recover $14.8 million and $1.7 million, respectively, related to their 2012 decoupling mechanisms. As of September 30, 2013, PGL and NSG have recovered $6.4 million and $0.8 million, respectively, related to the 2012 decoupling mechanisms. | |
Minnesota | |
2014 Rate Case | |
In September 2013, MERC filed an application with the MPUC to increase retail natural gas distribution rates by $14.2 million. Interim rates could be effective on January 1, 2014. MERC's request reflects a 10.75% return on common equity and a common equity ratio of 50.31% in its regulatory capital structure. The request was primarily driven by general inflation, property taxes, improvements to customer service programs, efforts to expand the customer base which would have a positive rate effect in the future, and operating and maintenance projects to ensure reliability and safety for customers. | |
2011 Rates | |
In July 2012, the MPUC approved a written order for MERC authorizing a retail natural gas rate increase of $11.0 million, effective January 1, 2013. The new rates reflect a 9.70% return on common equity and a common equity ratio of 50.48% in its regulatory capital structure. In addition, the order set recovery of MERC's 2011 test-year pension expense at 2010 levels. The MPUC also approved a decoupling mechanism for MERC that covers residential and small commercial and industrial customers on a three-year trial basis, effective January 1, 2013. The decoupling mechanism does not adjust for variations in volumes resulting from changes in customer count compared to rate case levels. It includes an annual 10% cap based on distribution revenues approved in the rate case. Amounts recoverable from or refundable to customers are subject to this cap. | |
Federal | |
Through a series of orders issued by the FERC, Regional Through and Out Rates for transmission service between the MISO and the PJM Interconnection were eliminated effective December 1, 2004. To compensate transmission owners for the revenue they would no longer receive due to this rate elimination, the FERC ordered a transitional pricing mechanism called the Seams Elimination Charge Adjustment (SECA) be put into place. Load-serving entities paid these SECA charges during a 16-month transition period from December 1, 2004, through March 31, 2006. | |
Integrys Energy Services initially expensed the majority of the total $19.2 million of billings paid during the transitional period. The remaining amount was considered probable of recovery due to inconsistencies between the FERC's SECA order and the transmission owners' FERC-ordered compliance filings. Integrys Energy Services protested the FERC’s SECA order, and through various rulings, ultimately received adverse decisions on most substantive issues. Integrys Energy Services appealed the adverse FERC decisions to the U.S. Court of Appeals for the D.C. Circuit. | |
In January 2013, Integrys Energy Services reached a settlement on all remaining issues with American Electric Power Service Corporation (AEP), the transmission owner affected the most from SECA payments collected from Integrys Energy Services. The parties filed a Joint Stipulation and Agreement ("Settlement Agreement") with the FERC in January 2013. In July 2013, the FERC issued an order approving the uncontested Settlement Agreement. In September 2013, AEP made a lump sum payment of $9.5 million to Integrys Energy Services in complete settlement of the matters at issue (which included a $3.8 million receivable previously recorded). As a result, Integrys Energy Services recorded $5.7 million in other income, representing the portion of the $9.5 million settlement not previously recognized. In September 2013, Integrys Energy Services withdrew its petitions for review filed with the U.S. Court of Appeals for the D.C. Circuit, as discussed above. |
SEGMENTS_OF_BUSINESS
SEGMENTS OF BUSINESS | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
SEGMENTS OF BUSINESS | ' | ||||||||||||||||||||||||||||||||
SEGMENTS OF BUSINESS | |||||||||||||||||||||||||||||||||
At September 30, 2013, we reported five segments, which are described below. | |||||||||||||||||||||||||||||||||
• | The natural gas utility segment includes the regulated natural gas utility operations of MERC, MGU, NSG, PGL, and WPS. | ||||||||||||||||||||||||||||||||
• | The electric utility segment includes the regulated electric utility operations of UPPCO and WPS. | ||||||||||||||||||||||||||||||||
• | The electric transmission investment segment includes our approximate 34% ownership interest in ATC. ATC is a federally regulated electric transmission company. | ||||||||||||||||||||||||||||||||
• | Integrys Energy Services is a diversified nonregulated retail energy supply and services company that primarily sells electricity and natural gas in deregulated markets. In addition, Integrys Energy Services invests in energy assets with renewable attributes. | ||||||||||||||||||||||||||||||||
• | The holding company and other segment includes the operations of the Integrys Energy Group holding company, ITF, and the PELLC holding company, along with any nonutility activities at IBS, MERC, MGU, NSG, PGL, UPPCO, and WPS. | ||||||||||||||||||||||||||||||||
The tables below present information related to our reportable segments: | |||||||||||||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated | ||||||||||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | Integrys | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Energy | Company | Eliminations | Energy Group | ||||||||||||||||||||||||||
Investment | Operations | Services | and Other | Consolidated | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
External revenues | $ | 253 | $ | 353.9 | $ | — | $ | 606.9 | $ | 512.7 | $ | 10.1 | $ | — | $ | 1,129.70 | |||||||||||||||||
Intersegment revenues | 4.2 | 0.1 | — | 4.3 | 0.3 | 0.3 | (4.9 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 35.6 | 25.7 | — | 61.3 | 2.9 | 5.5 | (0.1 | ) | 69.6 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 22.3 | 22.3 | 0.5 | 0.3 | — | 23.1 | |||||||||||||||||||||||||
Miscellaneous income | 0.4 | 2.8 | — | 3.2 | 6.2 | 5.7 | (3.0 | ) | 12.1 | ||||||||||||||||||||||||
Interest expense | 12.7 | 8.8 | — | 21.5 | 0.5 | 14.1 | (3.0 | ) | 33.1 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | (19.5 | ) | 25.1 | 8.6 | 14.2 | 6.6 | (2.8 | ) | — | 18 | |||||||||||||||||||||||
Net income (loss) from continuing operations | (19.5 | ) | 40.9 | 13.7 | 35.1 | 12.3 | (8.0 | ) | — | 39.4 | |||||||||||||||||||||||
Discontinued operations | — | — | — | — | (0.6 | ) | — | — | (0.6 | ) | |||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.1 | ) | (0.6 | ) | — | (0.7 | ) | — | — | — | (0.7 | ) | |||||||||||||||||||||
Net income (loss) attributed to common shareholders | (19.6 | ) | 40.3 | 13.7 | 34.4 | 11.7 | (8.0 | ) | — | 38.1 | |||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated | ||||||||||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | Integrys | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Energy | Company | Eliminations | Energy Group | ||||||||||||||||||||||||||
Investment | Operations | Services | and Other | Consolidated | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
External revenues | $ | 215.5 | $ | 366.8 | $ | — | $ | 582.3 | $ | 335.5 | $ | 9.9 | $ | — | $ | 927.7 | |||||||||||||||||
Intersegment revenues | 4.5 | — | — | 4.5 | 0.1 | 0.3 | (4.9 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 33.2 | 22.3 | — | 55.5 | 2.7 | 4.8 | (0.1 | ) | 62.9 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 21.7 | 21.7 | 0.5 | — | — | 22.2 | |||||||||||||||||||||||||
Miscellaneous income | 0.1 | 0.9 | — | 1 | 0.3 | 5.7 | (3.9 | ) | 3.1 | ||||||||||||||||||||||||
Interest expense | 11.7 | 8.9 | — | 20.6 | 0.5 | 12.7 | (3.9 | ) | 29.9 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | (11.5 | ) | 19.5 | 8.3 | 16.3 | 16.1 | (2.8 | ) | — | 29.6 | |||||||||||||||||||||||
Net income (loss) from continuing operations | (13.9 | ) | 47.8 | 13.4 | 47.3 | 32.2 | (5.2 | ) | — | 74.3 | |||||||||||||||||||||||
Discontinued operations | — | — | — | — | (8.0 | ) | — | — | (8.0 | ) | |||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.1 | ) | (0.6 | ) | — | (0.7 | ) | — | — | — | (0.7 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | (14.0 | ) | 47.2 | 13.4 | 46.6 | 24.2 | (5.1 | ) | — | 65.7 | |||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated | ||||||||||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | Integrys | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Energy | Company | Eliminations | Energy Group | ||||||||||||||||||||||||||
Investment | Operations | Services | and Other | Consolidated | |||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
External revenues | $ | 1,412.40 | $ | 1,012.70 | $ | — | $ | 2,425.10 | $ | 1,470.70 | $ | 28.1 | $ | — | $ | 3,923.90 | |||||||||||||||||
Intersegment revenues | 8.6 | 0.1 | — | 8.7 | 0.9 | 1 | (10.6 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 100.1 | 73 | — | 173.1 | 8.4 | 14.9 | (0.4 | ) | 196 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 66 | 66 | 1.2 | 1 | — | 68.2 | |||||||||||||||||||||||||
Miscellaneous income | 0.8 | 6.6 | — | 7.4 | 8 | 18 | (10.1 | ) | 23.3 | ||||||||||||||||||||||||
Interest expense | 37.3 | 26.4 | — | 63.7 | 1.5 | 35.9 | (10.1 | ) | 91 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | 43.1 | 56.9 | 25.3 | 125.3 | 11.7 | (12.7 | ) | — | 124.3 | ||||||||||||||||||||||||
Net income (loss) from continuing operations | 72 | 94.5 | 40.7 | 207.2 | 22.5 | (12.0 | ) | — | 217.7 | ||||||||||||||||||||||||
Discontinued operations | — | — | — | — | (1.2 | ) | 5.9 | — | 4.7 | ||||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.4 | ) | (1.9 | ) | — | (2.3 | ) | — | — | — | (2.3 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | 71.6 | 92.6 | 40.7 | 204.9 | 21.3 | (6.0 | ) | — | 220.2 | ||||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated | ||||||||||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||||||||||
(Millions) | Natural Gas Utility | Electric | Electric | Total | Integrys | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Transmission | Regulated | Energy | Company | Eliminations | Energy Group | |||||||||||||||||||||||||||
Investment | Operations | Services | and Other | Consolidated | |||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
External revenues | $ | 1,131.30 | $ | 985.6 | $ | — | $ | 2,116.90 | $ | 873.7 | $ | 24.6 | $ | — | $ | 3,015.20 | |||||||||||||||||
Intersegment revenues | 8.1 | — | — | 8.1 | 0.6 | 1.5 | (10.2 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 98.3 | 66.4 | — | 164.7 | 7.4 | 15.9 | (0.4 | ) | 187.6 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 63.8 | 63.8 | 1.2 | 0.5 | — | 65.5 | |||||||||||||||||||||||||
Miscellaneous income | 0.6 | 1.5 | — | 2.1 | 0.8 | 16.4 | (12.1 | ) | 7.2 | ||||||||||||||||||||||||
Interest expense | 35.1 | 27.1 | — | 62.2 | 1.5 | 38.4 | (12.1 | ) | 90 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | 32.6 | 42.4 | 24 | 99 | 23.6 | (16.0 | ) | — | 106.6 | ||||||||||||||||||||||||
Net income (loss) from continuing operations | 53.8 | 94.3 | 39.8 | 187.9 | 46 | (9.1 | ) | — | 224.8 | ||||||||||||||||||||||||
Discontinued operations | — | — | — | — | (11.0 | ) | 1.8 | — | (9.2 | ) | |||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.4 | ) | (1.9 | ) | — | (2.3 | ) | — | — | — | (2.3 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | 53.4 | 92.4 | 39.8 | 185.6 | 35 | (7.2 | ) | — | 213.4 | ||||||||||||||||||||||||
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
NEW ACCOUNTING PRONOUNCEMENTS | ' |
NEW ACCOUNTING PRONOUNCEMENTS | |
Recently Issued Accounting Guidance Not Yet Effective | |
Accounting Standards Update (ASU) 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date," was issued in February 2013. The guidance requires an entity to measure obligations under these arrangements, for which the total amount of the obligation is fixed at the reporting date, as the sum of the reporting entity's portion and any additional amount it expects to pay on behalf of its co-obligors. The guidance also requires additional disclosures about the nature and amount of the obligations. The guidance is effective for reporting periods beginning after December 15, 2013. Adoption of this guidance is not expected to have a significant impact on our financial statements. | |
ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," was issued in July 2013. The guidance states that an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. There are certain exceptions, however, under which the unrecognized tax benefit would be presented in the balance sheet as a liability. The guidance is effective for reporting periods beginning after December 15, 2013. Adoption of this guidance is not expected to have a significant impact on our financial statements. |
FINANCIAL_INFORMATION_Level_2_
FINANCIAL INFORMATION Level 2 (Policies) | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
Consolidation, Policy [Policy Text Block] | ' | |
As used in these notes, the term "financial statements" refers to the condensed consolidated financial statements. This includes the condensed consolidated statements of income, condensed consolidated statements of comprehensive income, condensed consolidated balance sheets, and condensed consolidated statements of cash flows, unless otherwise noted. In this report, when we refer to "us," "we," "our," or "ours," we are referring to Integrys Energy Group, Inc. | ||
We prepare our financial statements in conformity with the rules and regulations of the SEC for Quarterly Reports on Form 10-Q and in accordance with GAAP. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2012. Financial results for an interim period may not give a true indication of results for the year. | ||
In management’s opinion, these unaudited financial statements include all adjustments necessary for a fair presentation of financial results. All adjustments are normal and recurring, unless otherwise noted. All intercompany transactions have been eliminated in consolidation. | ||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |
Short-term investments with an original maturity of three months or less are reported as cash equivalents. | ||
Inventory, Policy [Policy Text Block] | ' | |
PGL and NSG price natural gas storage injections at the calendar year average of the cost of natural gas supply purchased. Withdrawals from storage are priced on the LIFO cost method. For interim periods, the difference between current projected replacement cost and the LIFO cost for quantities of natural gas temporarily withdrawn from storage is recorded as a temporary LIFO liquidation debit or credit. | ||
Income Tax, Policy [Policy Text Block] | ' | |
We calculate our interim period provision for income taxes based on our projected annual effective tax rate as adjusted for certain discrete items. | ||
Earnings Per Share, Policy [Policy Text Block] | ' | |
Basic earnings per share is computed by dividing net income attributed to common shareholders by the weighted average number of common shares outstanding during the period, adjusted for shares we are obligated to issue under the deferred compensation and restricted share unit plans. Diluted earnings per share is computed in a similar manner, but includes the exercise and/or conversion of all potentially dilutive securities. Such dilutive items include in-the-money stock options, performance stock rights, restricted share units, and certain shares issuable under the deferred compensation plan. To the extent these items are accounted for as liability awards, the numerator is adjusted for any changes in income or loss that would have resulted had the awards been accounted for as equity awards during the period. | ||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |
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. These assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. | ||
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 methodologies. | ||
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. Level 3 instruments include those that may be more structured or otherwise tailored to customers' needs. | ||
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||
We determine fair value using a market-based approach that uses observable market inputs where available, and internally developed inputs where observable market data is not readily available. For the unobservable inputs, consideration is given to the assumptions that market participants would use in valuing the asset or liability. These factors include not only the credit standing of the counterparties involved, but also the impact of our nonperformance risk on our liabilities. | ||
When possible, we base the valuations of our risk management assets and liabilities on quoted prices for identical assets in active markets. These valuations are classified in Level 1. The valuations of certain contracts include inputs related to market price risk (commodity or interest rate), price volatility (for option contracts), price correlation (for cross commodity contracts), probability of default, and time value. These inputs are available through multiple sources, including brokers and over-the-counter and online exchanges. Transactions valued using these inputs are classified in Level 2. | ||
Certain assets and liabilities are categorized in Level 3 due to the significance of unobservable or internally-developed inputs. The primary reasons for a Level 3 classification are as follows: | ||
• | While forward price curves may have been based on observable information, significant assumptions may have been made regarding monthly shaping and locational basis differentials. | |
• | Certain transactions were valued using price curves that extended beyond an observable period. Assumptions were made to extrapolate prices from the last observable period through the end of the transaction term, primarily through the use of historically settled data or correlations to other locations. | |
We have established risk oversight committees 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 any of the trading functions within the organization. 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. | ||
Advertising Costs, Policy, Capitalized Direct Response Advertising [Policy Text Block] | ' | |
Costs associated with certain natural gas and electric direct-response advertising campaigns at Integrys Energy Services were capitalized and reported as other long-term assets on the balance sheets. The capitalized costs result in probable future benefits and were incurred to solicit sales to customers who could be shown to have responded specifically to the advertising. Capitalized direct-response advertising costs, net of accumulated amortization, totaled $5.2 million and $5.5 million as of September 30, 2013, and December 31, 2012, respectively. The asset balances for each of the direct-response advertising cost pools are reviewed quarterly for impairment. We did not record any significant impairments during the three and nine months ended September 30, 2013, and 2012. | ||
Direct-response advertising costs are amortized to operating and maintenance expense over the estimated period of benefit, which is approximately two years. The amortization of direct-response advertising costs was $0.1 million and $1.0 million for the three months ended September 30, 2013, and 2012, respectively. The amortization of direct-response advertising costs was $4.1 million and $2.3 million for the nine months ended September 30, 2013, and 2012, respectively. | ||
We expense all advertising costs as incurred, except for those capitalized as direct-response advertising, as discussed above. Other advertising expense was $2.2 million and $2.1 million, for the three months ended September 30, 2013, and 2012, respectively. Other advertising expense was $6.6 million and $5.2 million, for the nine months ended September 30, 2013, and 2012, respectively. | ||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |
Recently Issued Accounting Guidance Not Yet Effective | ||
Accounting Standards Update (ASU) 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date," was issued in February 2013. The guidance requires an entity to measure obligations under these arrangements, for which the total amount of the obligation is fixed at the reporting date, as the sum of the reporting entity's portion and any additional amount it expects to pay on behalf of its co-obligors. The guidance also requires additional disclosures about the nature and amount of the obligations. The guidance is effective for reporting periods beginning after December 15, 2013. Adoption of this guidance is not expected to have a significant impact on our financial statements. | ||
ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," was issued in July 2013. The guidance states that an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. There are certain exceptions, however, under which the unrecognized tax benefit would be presented in the balance sheet as a liability. The guidance is effective for reporting periods beginning after December 15, 2013. Adoption of this guidance is not expected to have a significant impact on our financial statements. | ||
Stock Options | ' | |
Information related to share based awards | ' | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |
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. Our expected stock price volatility is estimated using the 10-year historical volatility of our stock price. | ||
Performance Stock Rights | ' | |
Information related to share based awards | ' | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |
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. The expected volatility is estimated using two to three years of historical data. | ||
Nonemployee Director Deferred Stock Units | ' | |
Information related to share based awards | ' | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |
Each nonemployee director is granted deferred stock units (DSUs), typically in January of each year. The number of DSUs granted is calculated by dividing a set dollar amount by our closing common stock price on December 31 of the prior year. Prior to January 1, 2013, under the terms of the agreement, these awards vested immediately, and therefore were expensed on the grant date. Beginning in 2013, these awards generally vest over one year. Therefore, the expense for these awards is recognized pro-rata over the year in which the grant occurs. |
CASH_AND_CASH_EQUIVALENTS_Tabl
CASH AND CASH EQUIVALENTS (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||
Schedule of supplemental disclosure to statements of cash flows | ' | ||||||||
The following is a supplemental disclosure to our statements of cash flows: | |||||||||
Nine Months Ended September 30 | |||||||||
(Millions) | 2013 | 2012 | |||||||
Cash paid for interest | $ | 60.7 | $ | 60 | |||||
Cash received for income taxes | (2.6 | ) | (45.7 | ) | |||||
Schedule of significant noncash transactions | ' | ||||||||
Significant noncash transactions were: | |||||||||
Nine Months Ended September 30 | |||||||||
(Millions) | 2013 | 2012 | |||||||
Construction costs funded through accounts payable | $ | 98.4 | $ | 78.8 | |||||
Equity issued for stock-based compensation plans | 26.5 | — | |||||||
Equity issued for reinvested dividends | 9.1 | — | |||||||
Contingent consideration and payables related to the acquisition of Compass Energy Services * | 7.9 | — | |||||||
* | See Note 4, "Acquisitions," for more information on the contingent consideration. |
RISK_MANAGEMENT_ACTIVITIES_Tab
RISK MANAGEMENT ACTIVITIES (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Assets and liabilities from risk management activities | ' | ||||||||||||||||||
The following tables show our assets and liabilities from risk management activities: | |||||||||||||||||||
30-Sep-13 | |||||||||||||||||||
(Millions) | Balance Sheet Presentation * | Assets from | Liabilities from | ||||||||||||||||
Risk Management Activities | Risk Management Activities | ||||||||||||||||||
Utility Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | $ | 2.2 | $ | 5.4 | ||||||||||||||
Natural gas contracts | Long-term | 0.5 | 0.6 | ||||||||||||||||
Financial transmission rights (FTRs) | Current | 3.4 | 0.4 | ||||||||||||||||
Petroleum product contracts | Current | — | 0.2 | ||||||||||||||||
Coal contracts | Current | — | 2.6 | ||||||||||||||||
Coal contracts | Long-term | 1.5 | 0.1 | ||||||||||||||||
Nonregulated Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | 48.9 | 37.6 | ||||||||||||||||
Natural gas contracts | Long-term | 24.6 | 14.6 | ||||||||||||||||
Electric contracts | Current | 100.4 | 111.3 | ||||||||||||||||
Electric contracts | Long-term | 31.5 | 44.3 | ||||||||||||||||
Current | 154.9 | 157.5 | |||||||||||||||||
Long-term | 58.1 | 59.6 | |||||||||||||||||
Total | $ | 213 | $ | 217.1 | |||||||||||||||
* We classify assets and liabilities from risk management activities as current or long-term based upon the maturities of the underlying contracts. | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||
(Millions) | Balance Sheet Presentation * | Assets from | Liabilities from | ||||||||||||||||
Risk Management Activities | Risk Management Activities | ||||||||||||||||||
Utility Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | $ | 2.5 | $ | 14 | ||||||||||||||
Natural gas contracts | Long-term | 0.9 | 0.8 | ||||||||||||||||
FTRs | Current | 2.1 | 0.1 | ||||||||||||||||
Petroleum product contracts | Current | 0.2 | — | ||||||||||||||||
Coal contracts | Current | 0.3 | 4.7 | ||||||||||||||||
Coal contracts | Long-term | 2.2 | 4.3 | ||||||||||||||||
Cash flow hedges | |||||||||||||||||||
Natural gas contracts | Current | — | 0.4 | ||||||||||||||||
Nonregulated Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | 51.7 | 48.5 | ||||||||||||||||
Natural gas contracts | Long-term | 11.5 | 7.6 | ||||||||||||||||
Electric contracts | Current | 88.6 | 114.2 | ||||||||||||||||
Electric contracts | Long-term | 30.7 | 45.7 | ||||||||||||||||
Current | 145.4 | 181.9 | |||||||||||||||||
Long-term | 45.3 | 58.4 | |||||||||||||||||
Total | $ | 190.7 | $ | 240.3 | |||||||||||||||
* We classify assets and liabilities from risk management activities as current or long-term based upon the maturities of the underlying contracts. | |||||||||||||||||||
Schedule of potential effect of netting arrangements on financial position 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: | |||||||||||||||||||
30-Sep-13 | |||||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | ||||||||||||||||
Derivative assets subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 5.9 | $ | 2.3 | $ | 3.6 | |||||||||||||
Nonregulated segments | 205.4 | 119.2 | 86.2 | ||||||||||||||||
Total | 211.3 | 121.5 | 89.8 | ||||||||||||||||
Derivative assets not subject to master netting or similar arrangements | 1.7 | 1.7 | |||||||||||||||||
Total risk management assets | $ | 213 | $ | 91.5 | |||||||||||||||
Derivative liabilities subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 6.6 | $ | 2.7 | $ | 3.9 | |||||||||||||
Nonregulated segments | 207.1 | 145.2 | 61.9 | ||||||||||||||||
Total | 213.7 | 147.9 | 65.8 | ||||||||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 3.4 | 3.4 | |||||||||||||||||
Total risk management liabilities | $ | 217.1 | $ | 69.2 | |||||||||||||||
31-Dec-12 | |||||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | ||||||||||||||||
Derivative assets subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 5.7 | $ | 3 | $ | 2.7 | |||||||||||||
Nonregulated segments | 182.5 | 145.4 | 37.1 | ||||||||||||||||
Total | 188.2 | 148.4 | 39.8 | ||||||||||||||||
Derivative assets not subject to master netting or similar arrangements | 2.5 | 2.5 | |||||||||||||||||
Total risk management assets | $ | 190.7 | $ | 42.3 | |||||||||||||||
Derivative liabilities subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 15.3 | $ | 3.8 | $ | 11.5 | |||||||||||||
Nonregulated segments | 215.4 | 159.8 | 55.6 | ||||||||||||||||
Total | 230.7 | 163.6 | 67.1 | ||||||||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 9.6 | 9.6 | |||||||||||||||||
Total risk management liabilities | $ | 240.3 | $ | 76.7 | |||||||||||||||
Cash collateral positions | ' | ||||||||||||||||||
The following table shows our cash collateral positions: | |||||||||||||||||||
(Millions) | 30-Sep-13 | December 31, 2012 | |||||||||||||||||
Cash collateral provided to others: | |||||||||||||||||||
Related to contracts under master netting or similar arrangements | $ | 60 | $ | 39.9 | |||||||||||||||
Other | 1.1 | 1.1 | |||||||||||||||||
Cash collateral received from others related to contracts under master netting or similar arrangements * | — | 0.2 | |||||||||||||||||
* Reflected in other current liabilities on the balance sheets. | |||||||||||||||||||
Credit risk derivatives in a liability position | ' | ||||||||||||||||||
The following table shows the aggregate fair value of all derivative instruments with specific credit risk-related contingent features that were in a liability position: | |||||||||||||||||||
(Millions) | 30-Sep-13 | December 31, 2012 | |||||||||||||||||
Integrys Energy Services | $ | 83.3 | $ | 108.9 | |||||||||||||||
Utility segments | 5.2 | 14 | |||||||||||||||||
Collateral requirements related to credit-risk related contingent features in commodity instruments | ' | ||||||||||||||||||
If all of the credit risk-related contingent features contained in commodity instruments (including derivatives, nonderivatives, normal purchase and normal sales contracts, and applicable payables and receivables) had been triggered, our collateral requirement would have been as follows: | |||||||||||||||||||
(Millions) | 30-Sep-13 | December 31, 2012 | |||||||||||||||||
Collateral that would have been required: | |||||||||||||||||||
Integrys Energy Services | $ | 185.4 | $ | 173.8 | |||||||||||||||
Utility segments | 2.2 | 10.1 | |||||||||||||||||
Collateral already satisfied: | |||||||||||||||||||
Integrys Energy Services — Letters of credit | 4.5 | 3.2 | |||||||||||||||||
Collateral remaining: | |||||||||||||||||||
Integrys Energy Services | 180.9 | 170.6 | |||||||||||||||||
Utility segments | 2.2 | 10.1 | |||||||||||||||||
Utility Segments, Notional volumes of outstanding non-hedge derivative contracts | ' | ||||||||||||||||||
The utilities had the following notional volumes of outstanding derivative contracts: | |||||||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||||||
Purchases | Sales | Other Transactions | Purchases | Sales | Other Transactions | ||||||||||||||
Natural gas (millions of therms) | 1,104.10 | 1.7 | N/A | 1,072.60 | 0.1 | N/A | |||||||||||||
FTRs (millions of kilowatt-hours) | N/A | N/A | 5,858.10 | N/A | N/A | 4,057.20 | |||||||||||||
Petroleum products (barrels) | 76,822.00 | 9,000.00 | N/A | 62,811.00 | — | N/A | |||||||||||||
Coal (millions of tons) | 5.1 | N/A | N/A | 5.1 | N/A | N/A | |||||||||||||
Utility Segments, Unrealized gains (losses) related to non-hedge derivatives at the utilities | ' | ||||||||||||||||||
The table below shows the unrealized gains (losses) recorded related to derivative contracts at the utilities: | |||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||
(Millions) | Financial Statement Presentation | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Natural gas | Balance Sheet — Regulatory assets (current) | $ | (0.5 | ) | $ | 10.2 | $ | 6.9 | $ | 22.9 | |||||||||
Natural gas | Balance Sheet — Regulatory assets (long-term) | 1.8 | 3.8 | 1.6 | 7.7 | ||||||||||||||
Natural gas | Balance Sheet — Regulatory liabilities (current) | (0.4 | ) | (3.4 | ) | (0.2 | ) | (2.9 | ) | ||||||||||
Natural gas | Balance Sheet — Regulatory liabilities (long-term) | — | 0.8 | (0.3 | ) | 1.3 | |||||||||||||
Natural gas | Income Statement — Utility cost of fuel, natural gas, and purchased power | — | 0.1 | — | 0.2 | ||||||||||||||
Natural gas | Income Statement — Operating and maintenance expense | (0.1 | ) | 0.1 | (0.2 | ) | 0.1 | ||||||||||||
FTRs | Balance Sheet — Regulatory assets (current) | 0.8 | — | — | (0.4 | ) | |||||||||||||
FTRs | Balance Sheet — Regulatory liabilities (current) | (0.2 | ) | (0.2 | ) | (0.3 | ) | 0.5 | |||||||||||
Petroleum | Balance Sheet — Regulatory assets (current) | 0.1 | 0.2 | — | 0.1 | ||||||||||||||
Petroleum | Balance Sheet — Regulatory liabilities (current) | — | 0.1 | — | 0.1 | ||||||||||||||
Petroleum | Income Statement — Operating and maintenance expense | (0.2 | ) | 0.1 | (0.2 | ) | 0.1 | ||||||||||||
Coal | Balance Sheet — Regulatory assets (current) | (0.6 | ) | 0.7 | 2.1 | (2.5 | ) | ||||||||||||
Coal | Balance Sheet — Regulatory assets (long-term) | 0.2 | (0.1 | ) | 4.2 | 0.1 | |||||||||||||
Coal | Balance Sheet — Regulatory liabilities (current) | — | — | (0.3 | ) | — | |||||||||||||
Coal | Balance Sheet — Regulatory liabilities (long-term) | 1.5 | — | (0.7 | ) | — | |||||||||||||
Nonregulated Segments, Notional volumes of outstanding non-hedge derivative contracts | ' | ||||||||||||||||||
Integrys Energy Services had the following notional volumes of outstanding derivative contracts: | |||||||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||||||
(Millions) | Purchases | Sales | Purchases | Sales | |||||||||||||||
Commodity contracts | |||||||||||||||||||
Natural gas (therms) | 1,108.50 | 1,011.80 | 782 | 679 | |||||||||||||||
Electric (kilowatt-hours) | 50,956.90 | 32,059.60 | 54,127.60 | 31,809.60 | |||||||||||||||
Foreign exchange contracts (Canadian dollars) | — | — | 0.4 | 0.4 | |||||||||||||||
Nonregulated Segments, gains (losses) related to non-hedge derivatives | ' | ||||||||||||||||||
Gains (losses) related to derivative contracts are recognized currently in earnings, as shown in the table below: | |||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||
(Millions) | Income Statement Presentation | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Natural gas | Nonregulated revenue | $ | (21.1 | ) | $ | (4.4 | ) | $ | 16.1 | $ | 7 | ||||||||
Natural gas | Nonregulated cost of sales | 25 | — | (9.5 | ) | — | |||||||||||||
Natural gas | Nonregulated revenue (reclassified from accumulated OCI) * | — | (0.1 | ) | (0.2 | ) | (1.6 | ) | |||||||||||
Electric | Nonregulated revenue | 36 | 49.1 | 22.4 | (10.5 | ) | |||||||||||||
Electric | Nonregulated cost of sales | (6.6 | ) | — | 2.1 | — | |||||||||||||
Electric | Nonregulated revenue (reclassified from accumulated OCI) * | (0.2 | ) | (1.9 | ) | (3.2 | ) | (3.3 | ) | ||||||||||
Total | $ | 33.1 | $ | 42.7 | $ | 27.7 | $ | (8.4 | ) | ||||||||||
* | Represents amounts reclassified from accumulated OCI related to cash flow hedges that were dedesignated in prior periods. |
ACQUISITIONS_ACQUISITIONS_Tabl
ACQUISITIONS ACQUISITIONS (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Compass Energy Services Inc [Member] | ' | ||||
Acquisitions | ' | ||||
Schedule of Purchase Price Allocation [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 | |||||
Inventories | $ | 0.7 | |||
Assets from risk management activities (current) | 15.1 | ||||
Other current assets | 1.1 | ||||
Assets from risk management activities (long-term) | 9.3 | ||||
Other long-term assets | 6.1 | ||||
Total assets acquired | $ | 32.3 | |||
Liabilities assumed | |||||
Liabilities from risk management activities (current) | $ | 8.3 | |||
Other current liabilities | 0.5 | ||||
Liabilities from risk management activities (long-term) | 3.4 | ||||
Total liabilities assumed | $ | 12.2 | |||
Fox Energy Company LLC | ' | ||||
Acquisitions | ' | ||||
Schedule of Purchase Price Allocation [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 | $ | 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 8, "Goodwill and Other Intangible Assets," for more information. |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Combined Locks | ' | ||||||||||||||||
Discontinued operations | ' | ||||||||||||||||
Carrying values of major classes of assets and liabilities classified as held for sale on balance sheets | ' | ||||||||||||||||
The carrying values of the major classes of assets related to Combined Locks classified as held for sale on the balance sheets were as follows: | |||||||||||||||||
(Millions) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
Inventories | $ | 0.5 | $ | 0.5 | |||||||||||||
Property, plant, and equipment, net of accumulated depreciation of $ – and $0.5 million, respectively | 0.2 | 2 | |||||||||||||||
Total assets | $ | 0.7 | $ | 2.5 | |||||||||||||
Components of discontinued operations recorded on the income statements | ' | ||||||||||||||||
A summary of the components of discontinued operations related to Combined Locks recorded on the income statements follows: | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Nonregulated revenues | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | $ | 0.3 | |||||||
Nonregulated cost of sales | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.5 | ) | |||||||||
Operating and maintenance expense | (0.8 | ) | (0.1 | ) | (2.0 | ) | (0.3 | ) | |||||||||
Depreciation and amortization expense | — | (0.1 | ) | — | (0.2 | ) | |||||||||||
Taxes other than income taxes | — | — | — | (0.1 | ) | ||||||||||||
Loss before taxes | (1.0 | ) | (0.3 | ) | (2.3 | ) | (0.8 | ) | |||||||||
Benefit for income taxes | 0.4 | 0.2 | 0.9 | 0.3 | |||||||||||||
Discontinued operations, net of tax | $ | (0.6 | ) | $ | (0.1 | ) | $ | (1.4 | ) | $ | (0.5 | ) | |||||
WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC | ' | ||||||||||||||||
Discontinued operations | ' | ||||||||||||||||
Carrying values of major classes of assets and liabilities classified as held for sale on balance sheets | ' | ||||||||||||||||
The carrying values of the major classes of assets and liabilities related to Beaver Falls and Syracuse classified as held for sale on the balance sheet were as follows: | |||||||||||||||||
(Millions) | As of | ||||||||||||||||
31-Dec-12 | |||||||||||||||||
Inventories | $ | 1.8 | |||||||||||||||
Property, plant, and equipment | 5.7 | ||||||||||||||||
Other long-term assets | 0.1 | ||||||||||||||||
Total assets | $ | 7.6 | |||||||||||||||
Total liabilities – other current liabilities | $ | 0.2 | |||||||||||||||
Components of discontinued operations recorded on the income statements | ' | ||||||||||||||||
A summary of the components of discontinued operations related to Beaver Falls and Syracuse recorded on the income statements were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 30-Sep-12 | 2013 | 2012 | ||||||||||||||
Nonregulated revenues | $ | 1.2 | $ | 1.2 | $ | 1.5 | |||||||||||
Nonregulated cost of sales | (0.7 | ) | (0.9 | ) | (1.6 | ) | |||||||||||
Operating and maintenance expense | (4.6 | ) | 0.4 | * | (5.7 | ) | |||||||||||
Depreciation and amortization expense | (0.2 | ) | — | (0.6 | ) | ||||||||||||
Taxes other than income taxes | — | (0.3 | ) | (1.1 | ) | ||||||||||||
Income (loss) before taxes | (4.3 | ) | 0.4 | (7.5 | ) | ||||||||||||
(Provision) benefit for income taxes | 1.7 | (0.2 | ) | 3 | |||||||||||||
Discontinued operations, net of tax | $ | (2.6 | ) | $ | 0.2 | $ | (4.5 | ) | |||||||||
* | Includes a $1.0 million gain on sale at closing. | ||||||||||||||||
WPS Westwood Generation, LLC | ' | ||||||||||||||||
Discontinued operations | ' | ||||||||||||||||
Components of discontinued operations recorded on the income statements | ' | ||||||||||||||||
A summary of the components of discontinued operations related to Westwood recorded on the income statements were as follows: | |||||||||||||||||
(Millions) | Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||
Nonregulated revenues | $ | 2.2 | $ | 8.2 | |||||||||||||
Nonregulated cost of sales | (1.2 | ) | (3.6 | ) | |||||||||||||
Operating and maintenance expense | (9.3 | ) | (12.9 | ) | |||||||||||||
Depreciation and amortization expense | (0.3 | ) | (1.0 | ) | |||||||||||||
Taxes other than income taxes | (0.1 | ) | (0.2 | ) | |||||||||||||
Interest expense | (0.1 | ) | (0.4 | ) | |||||||||||||
Loss before taxes | (8.8 | ) | (9.9 | ) | |||||||||||||
Benefit for income taxes | 3.5 | 3.9 | |||||||||||||||
Discontinued operations, net of tax | $ | (5.3 | ) | $ | (6.0 | ) |
INVESTMENT_IN_ATC_Tables
INVESTMENT IN ATC (Tables) (ATC) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
ATC | ' | ||||||||||||||||
Schedule of Equity Method Investments | ' | ||||||||||||||||
Schedule of changes to Integrys Energy Group's investment in ATC | ' | ||||||||||||||||
The following table shows changes to our investment in ATC. | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Balance at the beginning of period | $ | 492.2 | $ | 456.4 | $ | 476.6 | $ | 439.4 | |||||||||
Add: Earnings from equity method investment | 22.3 | 21.7 | 66 | 63.8 | |||||||||||||
Add: Capital contributions | 3.4 | 8.5 | 10.2 | 17 | |||||||||||||
Less: Dividends received | 17.8 | 17.3 | 52.7 | 50.9 | |||||||||||||
Balance at the end of period | $ | 500.1 | $ | 469.3 | $ | 500.1 | $ | 469.3 | |||||||||
Summarized income statement information of ATC | ' | ||||||||||||||||
Financial data for all of ATC is included in the following tables: | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Income statement data | |||||||||||||||||
Revenues | $ | 160.4 | $ | 150.3 | $ | 464.3 | $ | 450.1 | |||||||||
Operating expenses | 77.5 | 68.8 | 217.2 | 210.1 | |||||||||||||
Other expense | 20.2 | 21 | 62.6 | 62.1 | |||||||||||||
Net income | $ | 62.7 | $ | 60.5 | $ | 184.5 | $ | 177.9 | |||||||||
Summarized balance sheet information of ATC | ' | ||||||||||||||||
(Millions) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
Balance sheet data | |||||||||||||||||
Current assets | $ | 77.8 | $ | 63.1 | |||||||||||||
Noncurrent assets | 3,455.40 | 3,274.70 | |||||||||||||||
Total assets | $ | 3,533.20 | $ | 3,337.80 | |||||||||||||
Current liabilities | $ | 353.6 | $ | 251.5 | |||||||||||||
Long-term debt | 1,550.00 | 1,550.00 | |||||||||||||||
Other noncurrent liabilities | 119.9 | 95.8 | |||||||||||||||
Shareholders’ equity | 1,509.70 | 1,440.50 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,533.20 | $ | 3,337.80 | |||||||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of changes to the carrying amount of goodwill | ' | ||||||||||||||||||||||||
The following table shows changes to our goodwill balances by segment during the nine months ended September 30, 2013: | |||||||||||||||||||||||||
(Millions) | Natural Gas Utility | Integrys Energy Services | Holding Company and Other | Total | |||||||||||||||||||||
Balance as of January 1, 2013 | |||||||||||||||||||||||||
Gross goodwill | $ | 933.5 | $ | 6.6 | $ | 15.8 | $ | 955.9 | |||||||||||||||||
Accumulated impairment losses | (297.6 | ) | — | — | (297.6 | ) | |||||||||||||||||||
Net goodwill | 635.9 | 6.6 | 15.8 | 658.3 | |||||||||||||||||||||
Adjustment to ITF patents/intellectual property * | — | — | 3.8 | 3.8 | |||||||||||||||||||||
Balance as of September 30, 2013 | |||||||||||||||||||||||||
Gross goodwill | 933.5 | 6.6 | 19.6 | 959.7 | |||||||||||||||||||||
Accumulated impairment losses | (297.6 | ) | — | — | (297.6 | ) | |||||||||||||||||||
Net goodwill | $ | 635.9 | $ | 6.6 | $ | 19.6 | $ | 662.1 | |||||||||||||||||
* | An immaterial adjustment was made to the gross goodwill balance at ITF in the second quarter of 2013 due to a correction to the life of certain intangible assets. | ||||||||||||||||||||||||
Identifiable intangible assets other than goodwill | ' | ||||||||||||||||||||||||
The identifiable intangible assets other than goodwill listed below are part of other current and long-term assets on the balance sheets. An insignificant amount was recorded as assets held for sale on the balance sheets. | |||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
(Millions) | Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||||
Amortized intangible assets | |||||||||||||||||||||||||
Customer-related (1) | $ | 26.8 | $ | (15.3 | ) | $ | 11.5 | $ | 22.4 | $ | (14.7 | ) | $ | 7.7 | |||||||||||
Contractual service agreements (2) | 15.6 | (1.2 | ) | 14.4 | — | — | — | ||||||||||||||||||
Patents/intellectual property (3) | 3.4 | (0.4 | ) | 3 | 7.2 | (0.3 | ) | 6.9 | |||||||||||||||||
Compressed natural gas fueling contract assets (4) | 5.6 | (2.3 | ) | 3.3 | 5.6 | (1.3 | ) | 4.3 | |||||||||||||||||
Renewable energy credits (5) | 5.1 | — | 5.1 | 3.1 | — | 3.1 | |||||||||||||||||||
Nonregulated easements (6) | 3.7 | (1.1 | ) | 2.6 | 3.8 | (0.9 | ) | 2.9 | |||||||||||||||||
Customer-owned equipment modifications (7) | 4 | (0.8 | ) | 3.2 | 4 | (0.5 | ) | 3.5 | |||||||||||||||||
Other | 2.6 | (0.8 | ) | 1.8 | 0.5 | (0.2 | ) | 0.3 | |||||||||||||||||
Total | $ | 66.8 | $ | (21.9 | ) | $ | 44.9 | $ | 46.6 | $ | (17.9 | ) | $ | 28.7 | |||||||||||
Unamortized intangible assets | |||||||||||||||||||||||||
MGU trade name | $ | 5.2 | $ | — | $ | 5.2 | $ | 5.2 | $ | — | $ | 5.2 | |||||||||||||
Trillium trade name (8) | 3.5 | — | 3.5 | 3.5 | — | 3.5 | |||||||||||||||||||
Pinnacle trade name (8) | 1.5 | — | 1.5 | 1.5 | — | 1.5 | |||||||||||||||||||
Total intangible assets | $ | 77 | $ | (21.9 | ) | $ | 55.1 | $ | 56.8 | $ | (17.9 | ) | $ | 38.9 | |||||||||||
(1) | Represents customer relationship assets associated with PELLC’s former nonregulated retail natural gas and electric operations, ITF's compressed natural gas fueling operations, and Compass Energy Services. See Note 4, "Acquisitions," for more information regarding Integrys Energy Services' acquisition of Compass Energy Services. The remaining weighted-average amortization period for customer-related intangible assets at September 30, 2013, was approximately 11 years. | ||||||||||||||||||||||||
(2) | Represents contractual service agreements related to maintenance on the combustion turbine generators at the Fox Energy Center. The remaining amortization period for these intangible assets at September 30, 2013, was approximately seven years. | ||||||||||||||||||||||||
(3) | Represents the fair value of patents/intellectual property at ITF related to a system for more efficiently compressing natural gas to allow for faster fueling. An immaterial adjustment was made to the intangible assets balance in the second quarter of 2013 as a result of a correction to the life of the intangible assets. The remaining amortization period at September 30, 2013, was approximately nine years. | ||||||||||||||||||||||||
(4) | Represents the fair value of ITF contracts acquired in September 2011. The remaining amortization period at September 30, 2013, was approximately seven years. | ||||||||||||||||||||||||
(5) | Used at Integrys Energy Services to comply with state Renewable Portfolio Standards and to support customer commitments. | ||||||||||||||||||||||||
(6) | Relates to easements supporting a pipeline at Integrys Energy Services. The easements are amortized on a straight-line basis, with a remaining amortization period at September 30, 2013, of approximately 11 years. | ||||||||||||||||||||||||
(7) | Relates to modifications made by Integrys Energy Services and ITF to customer-owned equipment. These intangible assets are amortized on a straight-line basis, with a remaining weighted-average amortization period at September 30, 2013, of approximately 11 years. | ||||||||||||||||||||||||
(8) | Trillium USA (Trillium) and Pinnacle CNG Systems (Pinnacle) are wholly-owned subsidiaries of ITF. | ||||||||||||||||||||||||
Intangible asset amortization expense for the next five fiscal years | ' | ||||||||||||||||||||||||
The following table shows our estimated amortization expense for the next five years, including amounts recorded through September 30, 2013: | |||||||||||||||||||||||||
For the Year Ending December 31 | |||||||||||||||||||||||||
(Millions) | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||||||||||
Amortization to be recorded in nonregulated cost of sales | $ | 7.2 | $ | 2.2 | $ | 1.4 | $ | 0.9 | $ | 0.9 | |||||||||||||||
Amortization to be recorded in depreciation and amortization expense | 4.2 | 4.3 | 4.2 | 4 | 3.9 | ||||||||||||||||||||
SHORTTERM_DEBT_AND_LINES_OF_CR1
SHORT-TERM DEBT AND LINES OF CREDIT (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
SHORT-TERM DEBT AND LINES OF CREDIT | ' | ||||||||||
Schedule of short-term borrowings | ' | ||||||||||
Our outstanding short-term borrowings were as follows: | |||||||||||
(Millions, except percentages) | 30-Sep-13 | 31-Dec-12 | |||||||||
Commercial paper | $ | 188 | $ | 482.4 | |||||||
Average discount rate on commercial paper | 0.17 | % | 0.4 | % | |||||||
Loan under term credit facility | $ | 200 | $ | — | |||||||
Average interest rate on loan under term credit facility | 0.78 | % | — | ||||||||
Schedule of revolving credit facilities and remaining available capacity | ' | ||||||||||
We manage our liquidity by maintaining adequate external financing commitments. The information in the table below relates to our short-term debt and revolving credit facilities used to support our commercial paper borrowing program, including remaining available capacity under these facilities: | |||||||||||
(Millions) | Maturity | 30-Sep-13 | 31-Dec-12 | ||||||||
Revolving credit facility (Integrys Energy Group) | 5/17/14 | $ | 275 | $ | 275 | ||||||
Revolving credit facility (Integrys Energy Group) | 5/17/16 | 200 | 200 | ||||||||
Revolving credit facility (Integrys Energy Group) | 6/13/17 | 635 | 635 | ||||||||
Revolving credit facility (WPS) | 5/17/14 | 135 | 135 | ||||||||
Revolving credit facility (WPS) | 6/13/17 | 115 | 115 | ||||||||
Revolving credit facility (PGL) | 6/13/17 | 250 | 250 | ||||||||
Term credit facility (WPS) | 12/31/13 | 200 | — | ||||||||
Total short-term credit capacity | $ | 1,810.00 | $ | 1,610.00 | |||||||
Less: | |||||||||||
Letters of credit issued inside credit facilities | $ | 37.4 | $ | 25.5 | |||||||
Loan outstanding under term credit facility | 200 | — | |||||||||
Commercial paper outstanding | 188 | 482.4 | |||||||||
Available capacity under existing agreements | $ | 1,384.60 | $ | 1,102.10 | |||||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Disclosure of long-term debt instruments | ' | ||||||||
(Millions) | 30-Sep-13 | 31-Dec-12 | |||||||
WPS (1) | $ | 850.1 | $ | 872.1 | |||||
PGL (2) | 770 | 625 | |||||||
NSG (3) | 88.5 | 74.5 | |||||||
Integrys Energy Group (4) | 1,074.80 | 674.8 | |||||||
Total | 2,783.40 | 2,246.40 | |||||||
Unamortized discount on debt | (0.7 | ) | (1.2 | ) | |||||
Total debt | 2,782.70 | 2,245.20 | |||||||
Less current portion | 276.5 | 313.5 | |||||||
Total long-term debt | $ | 2,506.20 | $ | 1,931.70 | |||||
(1) | In February 2013, WPS’s $22.0 million of 3.95% Senior Notes matured, and the outstanding principal balance was repaid. | ||||||||
In December 2013, WPS’s 4.80% 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 sheets. | |||||||||
(2) | In April 2013, PGL bought back its $50.0 million of 5.00% Series KK First and Refunding Mortgage Bonds that were due in February 2033. In the same month, PGL issued $50.0 million of 4.00% Series ZZ First and Refunding Mortgage Bonds. These bonds are due in February 2033. | ||||||||
In May 2013, PGL’s $75.0 million of 4.625% Series NN-2 First and Refunding Mortgage Bonds matured, and the outstanding principal balance was repaid. | |||||||||
In August 2013, PGL issued $220.0 million of 3.96% Series AAA First and Refunding Mortgage Bonds. These bonds are due in August 2043. | |||||||||
On November 1, 2013, PGL’s 7.00% Series SS First and Refunding Mortgage Bonds matured. As a result, the $45.0 million balance of these bonds was included in the current portion of long-term debt on our balance sheets. | |||||||||
(3) | In May 2013, NSG’s $40.0 million of 4.625% Series N-2 First Mortgage Bonds matured, and the outstanding principal balance was repaid. In the same month, NSG issued $54.0 million of 3.96% Series Q First Mortgage Bonds. These bonds are due in May 2043. | ||||||||
On November 1, 2013, NSG’s 7.00% Series O First Mortgage Bonds matured. As a result, the $6.5 million balance of these bonds was included in the current portion of long-term debt on our balance sheets. | |||||||||
(4) | In August 2013, we issued $400.0 million of Junior Subordinated Notes. Interest is payable quarterly at the stated rate of 6.00% for the first ten years, after which time it changes to a floating rate. These notes are due in August 2073. | ||||||||
In June 2014, our 7.27% Unsecured Senior Notes will mature. As a result, the $100.0 million balance of these notes was included in the current portion of long-term debt on our balance sheet at September 30, 2013. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of effective tax rates | ' | ||||||||||||
The table below shows our effective tax rates attributable to continuing operations: | |||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Effective Tax Rate | 31.4 | % | 28.5 | % | 36.3 | % | 32.2 | % |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES Schedule of minimum future commitments related to purchase obligations (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||
Schedule of minimum future commitments related to purchase obligations | ' | ||||||||||||||||||||||||||||||
(a) Unconditional Purchase Obligations and Purchase Order Commitments | |||||||||||||||||||||||||||||||
We and our subsidiaries routinely enter into long-term purchase and sale commitments for various quantities and lengths of time. The regulated natural gas utilities have obligations to distribute and sell natural gas to their customers, and the regulated electric utilities have obligations to distribute and sell electricity to their customers. The utilities expect to recover costs related to these obligations in future customer rates. Additionally, the majority of the energy supply contracts entered into by Integrys Energy Services are to meet its contractual obligations to deliver energy to customers. The following table shows our minimum future commitments related to these purchase obligations as of September 30, 2013, including those of our subsidiaries. | |||||||||||||||||||||||||||||||
Payments Due By Period | |||||||||||||||||||||||||||||||
(Millions) | Date Contracts Extend Through | Total Amounts Committed | 2013 | 2014 | 2015 | 2016 | 2017 | Later Years | |||||||||||||||||||||||
Natural gas utility supply and transportation | 2028 | $ | 839.8 | $ | 48.5 | $ | 171 | $ | 162.4 | $ | 148.5 | $ | 103.4 | $ | 206 | ||||||||||||||||
Electric utility | |||||||||||||||||||||||||||||||
Purchased power | 2029 | 795.5 | 37.6 | 66.5 | 32.6 | 28.8 | 27.7 | 602.3 | |||||||||||||||||||||||
Coal supply and transportation | 2018 | 110.6 | 17.3 | 44.4 | 31.9 | 9.5 | 6 | 1.5 | |||||||||||||||||||||||
Nonregulated electricity and natural gas supply | 2020 | 634.6 | 150 | 329.7 | 111.4 | 36 | 6.1 | 1.4 | |||||||||||||||||||||||
Total | $ | 2,380.50 | $ | 253.4 | $ | 611.6 | $ | 338.3 | $ | 222.8 | $ | 143.2 | $ | 811.2 | |||||||||||||||||
We and our subsidiaries also had commitments of $770.9 million in the form of purchase orders issued to various vendors at September 30, 2013, that relate to normal business operations, including construction projects. |
GUARANTEES_Tables
GUARANTEES (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||
Schedule of outstanding guarantees | ' | ||||||||||||||||
The following table shows our outstanding guarantees: | |||||||||||||||||
Total Amounts Committed | Expiration | ||||||||||||||||
(Millions) | at September 30, 2013 | Less Than 1 Year | 1 to 3 Years | Over 3 Years | |||||||||||||
Guarantees supporting commodity transactions of subsidiaries (1) | $ | 605.9 | $ | 390.3 | $ | 2.7 | $ | 212.9 | |||||||||
Standby letters of credit (2) | 40.8 | 40.7 | 0.1 | — | |||||||||||||
Surety bonds (3) | 20.6 | 15.6 | 5 | — | |||||||||||||
Other guarantees (4) | 23.5 | — | — | 23.5 | |||||||||||||
Total guarantees | $ | 690.8 | $ | 446.6 | $ | 7.8 | $ | 236.4 | |||||||||
(1) | Consists of (a) $438.3 million, $5.0 million, and $2.0 million to support the business operations of Integrys Energy Services, IBS, and UPPCO, respectively, and (b) $110.5 million and $50.1 million related to natural gas supply at MERC and MGU, respectively. These guarantees are not reflected on our balance sheets. | ||||||||||||||||
(2) | At our request or the request of our subsidiaries, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. This amount consists of $38.8 million issued to support Integrys Energy Services’ operations and $2.0 million issued to support ITF, MERC, MGU, NSG, PGL, UPPCO, and WPS. These amounts are not reflected on our balance sheets. | ||||||||||||||||
(3) | Primarily for the construction and operation of compressed natural gas fueling stations, workers compensation self-insurance programs, and obtaining various licenses, permits, and rights-of-way. These guarantees are not reflected on our balance sheets. | ||||||||||||||||
(4) | Consists of (a) $10.0 million related to the sale agreement for Integrys Energy Services’ Texas retail marketing business, which included a number of customary representations, warranties, and indemnification provisions. An insignificant liability was recorded related to the possible imposition of additional miscellaneous gross receipts tax in the event of a change in law or interpretation of the tax law; (b) $5.0 million related to an environmental indemnification provided by Integrys Energy Services as part of the sale of the Stoneman generation facility, under which we expect that the likelihood of required performance is remote; (c) $2.4 million related to the performance of an operating and maintenance agreement by ITF; and (d) $6.1 million related to other indemnifications primarily for workers compensation coverage. The amounts discussed in items (b), (c), and (d) above are not reflected on our balance sheets. |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||
Schedule of changes, net of tax, in accumulated other comprehensive loss | ' | ||||||||||||
The following tables show the changes, net of tax, to our accumulated other comprehensive loss during the three and nine months ended September 30, 2013: | |||||||||||||
Three Months Ended September 30, 2013 | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
(Millions) | Cash Flow Hedges | Defined Benefit Plans | |||||||||||
Beginning balance at June 30, 2013 | $ | (2.1 | ) | $ | (34.5 | ) | $ | (36.6 | ) | ||||
Amounts reclassified out of accumulated other comprehensive loss | 0.3 | 0.6 | 0.9 | ||||||||||
Ending balance at September 30, 2013 | $ | (1.8 | ) | $ | (33.9 | ) | $ | (35.7 | ) | ||||
Nine Months Ended September 30, 2013 | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
(Millions) | Cash Flow Hedges | Defined Benefit Plans | |||||||||||
Beginning balance at December 31, 2012 | $ | (5.2 | ) | $ | (35.7 | ) | $ | (40.9 | ) | ||||
Other comprehensive income before reclassifications | 0.7 | — | 0.7 | ||||||||||
Amounts reclassified out of accumulated other comprehensive loss | 2.7 | 1.8 | 4.5 | ||||||||||
Net current period other comprehensive income | 3.4 | 1.8 | 5.2 | ||||||||||
Ending balance at September 30, 2013 | $ | (1.8 | ) | $ | (33.9 | ) | $ | (35.7 | ) | ||||
Schedule of reclassifications out of accumulated other comprehensive loss | ' | ||||||||||||
The following table shows the reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2013: | |||||||||||||
Amount Reclassified | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
(Millions) | 30-Sep-13 | 30-Sep-13 | Affected Line Item in the Statements of Income | ||||||||||
Losses on cash flow hedges | |||||||||||||
Utility commodity derivative contracts | $ | — | $ | 0.2 | Operating and maintenance expense(1) | ||||||||
Nonregulated commodity derivative contracts | 0.2 | 3.4 | Nonregulated revenues | ||||||||||
Interest rate hedges | 0.3 | 0.8 | Interest expense | ||||||||||
0.5 | 4.4 | Total before tax | |||||||||||
0.2 | 1.7 | Tax expense | |||||||||||
0.3 | 2.7 | Net of tax | |||||||||||
Defined benefit plans | |||||||||||||
Amortization of prior service costs | (0.1 | ) | (0.2 | ) | (2) | ||||||||
Amortization of net actuarial losses | 1.1 | 3.2 | (2) | ||||||||||
1 | 3 | Total before tax | |||||||||||
0.4 | 1.2 | Tax expense | |||||||||||
0.6 | 1.8 | Net of tax | |||||||||||
Total reclassifications | $ | 0.9 | $ | 4.5 | |||||||||
(1) | This item relates to changes in the price of natural gas used to support utility operations. | ||||||||||||
(2) | These items are included in the computation of net periodic benefit cost. See Note 14, "Employee Benefit Plans," for additional information. |
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of components of net periodic benefit cost for benefit plans | ' | ||||||||||||||||||||||||||||||||
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 Postretirement Benefits | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
September 30 | 30-Sep | 30-Sep | 30-Sep | ||||||||||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Service cost | $ | 7.5 | $ | 11.5 | $ | 22.6 | $ | 34.5 | $ | 6.3 | $ | 5.2 | $ | 18.7 | $ | 15.6 | |||||||||||||||||
Interest cost | 17.8 | 19.5 | 53.4 | 58.5 | 6.2 | 7.1 | 18.6 | 21.4 | |||||||||||||||||||||||||
Expected return on plan assets | (26.4 | ) | (27.0 | ) | (79.1 | ) | (80.9 | ) | (7.7 | ) | (7.1 | ) | (23.0 | ) | (21.2 | ) | |||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | 0.1 | — | 0.2 | |||||||||||||||||||||||||
Amortization of prior service cost (credit) | 1 | 1.3 | 3 | 3.8 | (0.7 | ) | (0.9 | ) | (1.9 | ) | (2.6 | ) | |||||||||||||||||||||
Amortization of net actuarial loss | 14.2 | 8.5 | 42.5 | 25.5 | 2.1 | 1.7 | 6.3 | 5 | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 14.1 | $ | 13.8 | $ | 42.4 | $ | 41.4 | $ | 6.2 | $ | 6.1 | $ | 18.7 | $ | 18.4 | |||||||||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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 three and nine months ended September 30: | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock options | $ | 0.5 | $ | 0.5 | $ | 1.4 | $ | 1.5 | |||||||||
Performance stock rights | 1.2 | 0.5 | 4.4 | 4.8 | |||||||||||||
Restricted share units | 2.5 | 2.1 | 7.8 | 7.5 | |||||||||||||
Nonemployee director deferred stock units | 0.2 | — | 0.7 | 1 | |||||||||||||
Total stock-based compensation expense | $ | 4.4 | $ | 3.1 | $ | 14.3 | $ | 14.8 | |||||||||
Deferred income tax benefit | $ | 1.8 | $ | 1.2 | $ | 5.7 | $ | 5.9 | |||||||||
Schedule of weighted-average fair values per stock option along with the assumptions incorporated into the valuation models | ' | ||||||||||||||||
The following table shows the weighted-average fair value per stock option granted during the nine months ended September 30, 2013, along with the assumptions incorporated into the valuation model: | |||||||||||||||||
February 2013 Grant | |||||||||||||||||
Weighted-average fair value per option | $6.03 | ||||||||||||||||
Expected term | 5 years | ||||||||||||||||
Risk-free interest rate | 0.18% – 2.11% | ||||||||||||||||
Expected dividend yield | 5.33% | ||||||||||||||||
Expected volatility | 24% | ||||||||||||||||
Summary of stock option activity and information related to outstanding and exercisable stock options | ' | ||||||||||||||||
A summary of stock option activity for the nine months ended September 30, 2013, and information related to outstanding and exercisable stock options at September 30, 2013, is presented below: | |||||||||||||||||
Stock Options | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||
Exercise Price Per | Remaining | Intrinsic Value | |||||||||||||||
Share | Contractual Life | (Millions) | |||||||||||||||
(in Years) | |||||||||||||||||
Outstanding at December 31, 2012 | 2,046,355 | $ | 49.25 | ||||||||||||||
Granted | 319,234 | 56 | |||||||||||||||
Exercised | (793,455 | ) | 48.58 | ||||||||||||||
Forfeited | (15,510 | ) | 56 | ||||||||||||||
Outstanding at September 30, 2013 | 1,556,624 | $ | 50.91 | 6.5 | $ | 8.2 | |||||||||||
Exercisable at September 30, 2013 | 816,336 | $ | 49.92 | 4.8 | $ | 5.3 | |||||||||||
Disclosure of performance stock rights assumptions | ' | ||||||||||||||||
The table below reflects the assumptions used in the valuation of the outstanding grants at September 30: | |||||||||||||||||
2013 | |||||||||||||||||
Risk-free interest rate | 0.26% – 1.27% | ||||||||||||||||
Expected dividend yield | 5.18% – 5.34% | ||||||||||||||||
Expected volatility | 19% – 36% | ||||||||||||||||
Summary of the activity related to restricted share unit awards (equity and liability awards) | ' | ||||||||||||||||
A summary of the activity related to all restricted share unit awards (equity and liability awards) for the nine months ended September 30, 2013, is presented below: | |||||||||||||||||
Restricted Share | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Unit Awards | |||||||||||||||||
Outstanding at December 31, 2012 | 505,690 | $ | 48.38 | ||||||||||||||
Granted | 196,894 | 55.93 | |||||||||||||||
Dividend equivalents | 17,830 | 52.19 | |||||||||||||||
Vested and released | (207,411 | ) | 46.32 | ||||||||||||||
Forfeited | (5,997 | ) | 53.16 | ||||||||||||||
Outstanding at September 30, 2013 | 507,006 | $ | 52.24 | ||||||||||||||
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 activity for the nine months ended September 30, 2013, 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, 2012 | 108,314 | $ | 65.38 | ||||||||||||||
Granted | 22,636 | 48.5 | |||||||||||||||
Award modifications (1) | 28,789 | 39.8 | |||||||||||||||
Distributed | (94,758 | ) | 72.36 | ||||||||||||||
Adjustment for final payout | 21,867 | 72.36 | |||||||||||||||
Forfeited | (1,099 | ) | 48.5 | ||||||||||||||
Outstanding at September 30, 2013 | 85,749 | $ | 46.62 | ||||||||||||||
(1) 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 our 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. | |||||||||||||||||
(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 activity for the nine months ended September 30, 2013, related to performance stock rights accounted for as liability awards is presented below: | |||||||||||||||||
Performance | |||||||||||||||||
Stock Rights | |||||||||||||||||
Outstanding at December 31, 2012 | 189,093 | ||||||||||||||||
Granted | 90,496 | ||||||||||||||||
Award modifications * | (28,789 | ) | |||||||||||||||
Distributed | (61,753 | ) | |||||||||||||||
Adjustment for final payout | 14,255 | ||||||||||||||||
Forfeited | (4,398 | ) | |||||||||||||||
Outstanding at September 30, 2013 | 198,904 | ||||||||||||||||
* | 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 our 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. |
COMMON_EQUITY_Tables
COMMON EQUITY (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Schedule Of Shares Issued Roll Forward | ' | ||||||||||||||||
We had the following changes to issued common stock during the nine months ended September 30, 2013: | |||||||||||||||||
Common stock issued at December 31, 2012 | 78,287,906 | ||||||||||||||||
Shares issued | |||||||||||||||||
Stock-based compensation | 1,144,495 | ||||||||||||||||
Stock Investment Plan | 219,847 | ||||||||||||||||
Rabbi trust shares | 105,467 | ||||||||||||||||
Common stock issued at September 30, 2013 | 79,757,715 | ||||||||||||||||
Schedule Of Common Stock Activity To Meet Requirements Of Stock Investment Plan And Certain Stock Based Employee Benefit And Compensation Plans | ' | ||||||||||||||||
The following table provides a summary of common stock activity to meet the requirements of our Stock Investment Plan and certain stock-based employee benefit and compensation plans: | |||||||||||||||||
Period | Method of meeting requirements | ||||||||||||||||
Beginning 02/05/2013 | Issuing new shares * | ||||||||||||||||
01/01/2012 – 02/04/2013 | Purchased shares on the open market | ||||||||||||||||
* | These stock issuances increased equity $71.1 million in 2013. | ||||||||||||||||
Reconciliation of shares issued and outstanding | ' | ||||||||||||||||
The following table reconciles common shares issued and outstanding: | |||||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||||
Shares | Average Cost * | Shares | Average Cost * | ||||||||||||||
Common stock issued | 79,757,715 | 78,287,906 | |||||||||||||||
Less: | |||||||||||||||||
Deferred compensation rabbi trust | 467,967 | $ | 48.42 | 385,439 | $ | 46.03 | |||||||||||
Total common shares outstanding | 79,289,748 | 77,902,467 | |||||||||||||||
* | Based on our stock price on the day the shares entered the deferred compensation rabbi trust. Shares paid out of the trust are valued at the average cost of shares in the trust. | ||||||||||||||||
Computation of basic and diluted earnings per share | ' | ||||||||||||||||
The following table reconciles our computation of basic and diluted earnings per share: | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | |||||||||||||||||
Net income from continuing operations | $ | 39.4 | $ | 74.3 | $ | 217.7 | $ | 224.8 | |||||||||
Discontinued operations, net of tax | (0.6 | ) | (8.0 | ) | 4.7 | (9.2 | ) | ||||||||||
Preferred stock dividends of subsidiary | (0.7 | ) | (0.7 | ) | (2.3 | ) | (2.3 | ) | |||||||||
Noncontrolling interest in subsidiaries | — | 0.1 | 0.1 | 0.1 | |||||||||||||
Net income attributed to common shareholders — basic | $ | 38.1 | $ | 65.7 | $ | 220.2 | $ | 213.4 | |||||||||
Effect of dilutive securities | |||||||||||||||||
Stock-based compensation | (0.1 | ) | — | (0.1 | ) | — | |||||||||||
Net income attributed to common shareholders — diluted | $ | 38 | $ | 65.7 | $ | 220.1 | $ | 213.4 | |||||||||
Denominator: | |||||||||||||||||
Average shares of common stock — basic | 79.8 | 78.5 | 79.3 | 78.5 | |||||||||||||
Effect of dilutive securities | |||||||||||||||||
Stock-based compensation | 0.4 | 0.6 | 0.4 | 0.6 | |||||||||||||
Deferred compensation | — | 0.2 | 0.2 | 0.2 | |||||||||||||
Average shares of common stock — diluted | 80.2 | 79.3 | 79.9 | 79.3 | |||||||||||||
Earnings per common share | |||||||||||||||||
Basic | $ | 0.48 | $ | 0.84 | $ | 2.78 | $ | 2.72 | |||||||||
Diluted | 0.47 | 0.83 | 2.76 | 2.69 | |||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ||||||||||||||||
The calculation of diluted earnings per share excluded the following weighted-average outstanding securities that had an anti-dilutive effect: | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock-based compensation | 0.4 | 0.9 | 0.2 | 0.6 | |||||||||||||
Deferred compensation | 0.2 | — | 0.1 | — | |||||||||||||
Capital transactions with subsidiaries | ' | ||||||||||||||||
During the nine months ended September 30, 2013, capital transactions with subsidiaries were as follows (in millions): | |||||||||||||||||
Subsidiary | Dividends To Parent | Return Of | Equity Contributions | ||||||||||||||
Capital To Parent | From Parent | ||||||||||||||||
ITF (1) | $ | — | $ | — | $ | 25.2 | |||||||||||
MERC | — | 21 | 3.5 | ||||||||||||||
MGU | — | 12.5 | 5 | ||||||||||||||
UPPCO | — | 5.5 | — | ||||||||||||||
WPS | 81.5 | 35 | 200 | ||||||||||||||
WPS Investments, LLC (2) | 52.7 | — | 10.2 | ||||||||||||||
Total | $ | 134.2 | $ | 74 | $ | 243.9 | |||||||||||
(1) | ITF is a direct wholly owned subsidiary of PELLC. As a result, it makes distributions to PELLC, and receives equity contributions from PELLC. Subject to applicable law, PELLC does not have any dividend restrictions or limitations on distributions to us. | ||||||||||||||||
(2) | WPS Investments, LLC is a consolidated subsidiary that is jointly owned by us, WPS, and UPPCO. At September 30, 2013, we had an 86.13% ownership interest, while WPS and UPPCO had an 11.44% and 2.43% ownership interest, respectively. Distributions from WPS Investments, LLC are made to the owners based on their respective ownership percentages. During 2013, all equity contributions to WPS Investments, LLC were made solely by us. |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value | ' | ||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Risk Management Assets | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 0.9 | $ | 1.8 | $ | — | $ | 2.7 | |||||||||||||||||
Financial transmission rights (FTRs) | — | — | 3.4 | 3.4 | |||||||||||||||||||||
Coal contracts | — | — | 1.5 | 1.5 | |||||||||||||||||||||
Nonregulated Segments | |||||||||||||||||||||||||
Natural gas contracts | 9.9 | 42.3 | 21.3 | 73.5 | |||||||||||||||||||||
Electric contracts | 70.1 | 49 | 12.8 | 131.9 | |||||||||||||||||||||
Total Risk Management Assets | $ | 80.9 | $ | 93.1 | $ | 39 | $ | 213 | |||||||||||||||||
Investment in exchange-traded funds | $ | 13.4 | $ | — | $ | — | $ | 13.4 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Risk Management Liabilities | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 0.8 | $ | 5.2 | $ | — | $ | 6 | |||||||||||||||||
Petroleum product contracts | 0.2 | — | — | 0.2 | |||||||||||||||||||||
FTRs | — | — | 0.4 | 0.4 | |||||||||||||||||||||
Coal contracts | — | — | 2.7 | 2.7 | |||||||||||||||||||||
Nonregulated Segments | |||||||||||||||||||||||||
Natural gas contracts | 16 | 26.5 | 9.7 | 52.2 | |||||||||||||||||||||
Electric contracts | 75.6 | 69.9 | 10.1 | 155.6 | |||||||||||||||||||||
Total Risk Management Liabilities | $ | 92.6 | $ | 101.6 | $ | 22.9 | $ | 217.1 | |||||||||||||||||
Contingent consideration related to the acquisition of Compass Energy Services (Compass) * | $ | — | $ | — | $ | 7.7 | $ | 7.7 | |||||||||||||||||
* | See Note 4, "Acquisitions," for more information. | ||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Risk Management Assets | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 0.3 | $ | 3.1 | $ | — | $ | 3.4 | |||||||||||||||||
FTRs | — | — | 2.1 | 2.1 | |||||||||||||||||||||
Petroleum product contracts | 0.2 | — | — | 0.2 | |||||||||||||||||||||
Coal contracts | — | — | 2.5 | 2.5 | |||||||||||||||||||||
Nonregulated Segments | |||||||||||||||||||||||||
Natural gas contracts | 21.4 | 36.4 | 5.4 | 63.2 | |||||||||||||||||||||
Electric contracts | 48.4 | 61.3 | 9.6 | 119.3 | |||||||||||||||||||||
Total Risk Management Assets | $ | 70.3 | $ | 100.8 | $ | 19.6 | $ | 190.7 | |||||||||||||||||
Investment in exchange-traded funds | $ | 11.8 | $ | — | $ | — | $ | 11.8 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Risk Management Liabilities | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 1.1 | $ | 14.1 | $ | — | $ | 15.2 | |||||||||||||||||
FTRs | — | — | 0.1 | 0.1 | |||||||||||||||||||||
Coal contracts | — | — | 9 | 9 | |||||||||||||||||||||
Nonregulated Segments | |||||||||||||||||||||||||
Natural gas contracts | 17.7 | 36.9 | 1.5 | 56.1 | |||||||||||||||||||||
Electric contracts | 54.9 | 91.1 | 13.9 | 159.9 | |||||||||||||||||||||
Total Risk Management Liabilities | $ | 73.7 | $ | 142.1 | $ | 24.5 | $ | 240.3 | |||||||||||||||||
Schedule of transfers between the levels of the fair value hierarchy | ' | ||||||||||||||||||||||||
The following tables show net risk management assets (liabilities) transferred between the levels of the fair value hierarchy: | |||||||||||||||||||||||||
Nonregulated Segments — Natural Gas Contracts | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | — | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 0.3 | $ | — | N/A | 0.3 | |||||||||||||||||
Transfers into Level 3 from | — | 2.5 | N/A | — | 0.4 | N/A | |||||||||||||||||||
Nonregulated Segments — Natural Gas Contracts | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | — | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 0.3 | $ | — | N/A | 1.7 | |||||||||||||||||
Transfers into Level 3 from | — | 4 | N/A | — | 3.2 | N/A | |||||||||||||||||||
Nonregulated Segments — Electric Contracts | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | — | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | (0.8 | ) | $ | — | N/A | (1.9 | ) | |||||||||||||||
Transfers into Level 3 from | (0.2 | ) | — | N/A | — | 1 | N/A | ||||||||||||||||||
Nonregulated Segments — Electric Contracts | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | — | — | N/A | $ | — | $ | — | ||||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 4.6 | $ | — | N/A | (5.8 | ) | ||||||||||||||||
Transfers into Level 3 from | (0.2 | ) | 6.2 | N/A | — | (7.8 | ) | N/A | |||||||||||||||||
Significant unobservable inputs used in the valuation of derivatives categorized in Level 3 | ' | ||||||||||||||||||||||||
The significant unobservable inputs used in the valuation that resulted in categorization within Level 3 were as follows at September 30, 2013. The amounts and percentages 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 transaction to be classified as Level 3. | |||||||||||||||||||||||||
Fair Value (Millions) | |||||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Unobservable Input | Average or Range | |||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
FTRs | $ | 3.4 | $ | 0.4 | Market-based | Forward market prices ($/megawatt-month) (1) | $180.59 | ||||||||||||||||||
Coal contracts | 1.5 | 2.7 | Market-based | Forward market prices ($/ton) (2) | $12.21 — $14.63 | ||||||||||||||||||||
Nonregulated Segments | |||||||||||||||||||||||||
Natural gas contracts | 21.3 | 9.7 | Market-based | Forward market prices ($/dekatherm) (3) | ($2.36) — $8.17 | ||||||||||||||||||||
Probability of default(4) | 11.6% — 51.0% | ||||||||||||||||||||||||
Electric contracts | 12.8 | 10.1 | Market-based | Forward market prices ($/megawatt-hours) (3) | ($7.15) — $9.25 | ||||||||||||||||||||
Probability of default(4) | 26 | % | |||||||||||||||||||||||
Option volatilities(5) | 19.3% — 118.0% | ||||||||||||||||||||||||
Monthly curve shaping(6) | (37.5)% — 25.6% | ||||||||||||||||||||||||
Contingent consideration related to the acquisition of Compass | N/A | 7.7 | Monte Carlo analysis | Growth rate(7) | (32)% — 157% | ||||||||||||||||||||
(1) | Represents forward market prices developed using historical cleared pricing data from MISO. | ||||||||||||||||||||||||
(2) | Represents third-party forward market pricing. | ||||||||||||||||||||||||
(3) | Represents unobservable basis spreads developed using historical settled prices that are applied to observable market prices at various natural gas and electric locations, as well as unobservable adjustments made to extend observable market prices beyond the quoted period through the end of the transaction term. | ||||||||||||||||||||||||
(4) | Based on Moody's one-year counterparty default percentages. | ||||||||||||||||||||||||
(5) | Represents the range of volatilities used in the valuation of options. Volatilities are derived from an internal model using volatility curves from third parties. | ||||||||||||||||||||||||
(6) | Represents adjustments made to forward market price curves to disaggregate average prices of multiple periods into discrete monthly prices. | ||||||||||||||||||||||||
(7) | Represents the range of assumed growth rates of earnings before interest, taxes, and amortization input into the valuation model. | ||||||||||||||||||||||||
Schedule of the 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: | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nonregulated Segments | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration* | FTRs | Coal Contracts | Total | |||||||||||||||||||
Balance at the beginning of the period | $ | 7.7 | $ | 4.1 | $ | (7.7 | ) | $ | 3.9 | $ | (2.3 | ) | $ | 5.7 | |||||||||||
Net realized and unrealized gains included in earnings | 4.2 | 1.9 | — | 1.3 | — | 7.4 | |||||||||||||||||||
Net unrealized gains (losses) recorded as regulatory assets or liabilities | — | — | — | 0.6 | (4.5 | ) | (3.9 | ) | |||||||||||||||||
Purchases | — | 0.7 | — | — | — | 0.7 | |||||||||||||||||||
Settlements | (2.5 | ) | (4.6 | ) | — | (2.8 | ) | 5.6 | (4.3 | ) | |||||||||||||||
Net transfers into Level 3 | 2.5 | (0.2 | ) | — | — | — | 2.3 | ||||||||||||||||||
Net transfers out of Level 3 | (0.3 | ) | 0.8 | — | — | — | 0.5 | ||||||||||||||||||
Balance at the end of the period | $ | 11.6 | $ | 2.7 | $ | (7.7 | ) | $ | 3 | $ | (1.2 | ) | $ | 8.4 | |||||||||||
Net unrealized gains included in earnings related to instruments still held at the end of the period | $ | 4.2 | $ | 1.9 | $ | — | $ | — | $ | — | $ | 6.1 | |||||||||||||
* | Represents the contingent consideration related to the acquisition of Compass. See Note 4 "Acquisitions," for more information. | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nonregulated Segments | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration* | FTRs | Coal Contracts | Total | |||||||||||||||||||
Balance at the beginning of the period | $ | 3.9 | $ | (4.3 | ) | $ | — | $ | 2 | $ | (6.5 | ) | $ | (4.9 | ) | ||||||||||
Net realized and unrealized gains included in earnings | 1.3 | 7.6 | — | 1.7 | — | 10.6 | |||||||||||||||||||
Net unrealized (losses) gains recorded as regulatory assets or liabilities | — | — | — | (0.3 | ) | 2.2 | 1.9 | ||||||||||||||||||
Purchases | 7 | 2.3 | (7.7 | ) | 4.9 | — | 6.5 | ||||||||||||||||||
Sales | — | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||||||
Settlements | (4.3 | ) | (4.3 | ) | — | (5.2 | ) | 3.1 | (10.7 | ) | |||||||||||||||
Net transfers into Level 3 | 4 | 6 | — | — | — | 10 | |||||||||||||||||||
Net transfers out of Level 3 | (0.3 | ) | (4.6 | ) | — | — | — | (4.9 | ) | ||||||||||||||||
Balance at the end of the period | $ | 11.6 | $ | 2.7 | $ | (7.7 | ) | $ | 3 | $ | (1.2 | ) | $ | 8.4 | |||||||||||
Net unrealized gains included in earnings related to instruments still held at the end of the period | $ | 1.3 | $ | 7.6 | $ | — | $ | — | $ | — | $ | 8.9 | |||||||||||||
* | Represents the contingent consideration related to the acquisition of Compass. See Note 4 "Acquisitions," for more information. | ||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Nonregulated Segments | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | FTRs | Coal Contracts | Total | ||||||||||||||||||||
Balance at the beginning of the period | $ | 6.3 | $ | (14.7 | ) | $ | 4.8 | $ | (9.8 | ) | $ | (13.4 | ) | ||||||||||||
Net realized and unrealized gains (losses) included in earnings | 2.7 | 2.6 | * | (1.0 | ) | — | 4.3 | ||||||||||||||||||
Net unrealized (losses) gains recorded as regulatory assets or liabilities | — | — | (0.2 | ) | 2.1 | 1.9 | |||||||||||||||||||
Settlements | (6.7 | ) | (0.1 | ) | (0.4 | ) | (1.6 | ) | (8.8 | ) | |||||||||||||||
Net transfers into Level 3 | 0.4 | 1 | — | — | 1.4 | ||||||||||||||||||||
Net transfers out of Level 3 | (0.3 | ) | 1.9 | — | — | 1.6 | |||||||||||||||||||
Balance at the end of the period | $ | 2.4 | $ | (9.3 | ) | $ | 3.2 | $ | (9.3 | ) | $ | (13.0 | ) | ||||||||||||
Net unrealized gains included in earnings related to instruments still held at the end of the period | $ | 2.7 | $ | 2.6 | * | $ | — | $ | — | $ | 5.3 | ||||||||||||||
* | Includes a $0.2 million net unrealized loss reported as discontinued operations. See Note 5, "Discontinued Operations," for more information. | ||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | Nonregulated Segments | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | FTRs | Coal Contracts | Total | ||||||||||||||||||||
Balance at the beginning of the period | $ | 8.3 | $ | (11.5 | ) | $ | 2.2 | $ | (6.9 | ) | $ | (7.9 | ) | ||||||||||||
Net realized and unrealized gains (losses) included in earnings | 1.9 | (5.3 | ) | * | 1.5 | — | (1.9 | ) | |||||||||||||||||
Net unrealized gains recorded as regulatory assets or liabilities | — | — | 0.1 | 1.5 | 1.6 | ||||||||||||||||||||
Purchases | — | 2.1 | 4.9 | — | 7 | ||||||||||||||||||||
Sales | — | — | (0.1 | ) | — | (0.1 | ) | ||||||||||||||||||
Settlements | (9.3 | ) | 7.4 | (5.4 | ) | (3.9 | ) | (11.2 | ) | ||||||||||||||||
Net transfers into Level 3 | 3.2 | (7.8 | ) | — | — | (4.6 | ) | ||||||||||||||||||
Net transfers out of Level 3 | (1.7 | ) | 5.8 | — | — | 4.1 | |||||||||||||||||||
Balance at the end of the period | $ | 2.4 | $ | (9.3 | ) | $ | 3.2 | $ | (9.3 | ) | $ | (13.0 | ) | ||||||||||||
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period | $ | 1.9 | $ | (5.3 | ) | * | $ | — | $ | — | $ | (3.4 | ) | ||||||||||||
* | Includes a $0.6 million net unrealized loss reported as discontinued operations. See Note 5, "Discontinued Operations," for more information. | ||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||||||||||||
(Millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||
Long-term debt | $ | 2,782.70 | $ | 2,768.50 | $ | 2,245.20 | $ | 2,425.80 | |||||||||||||||||
Preferred stock of subsidiary | 51.1 | 61.6 | 51.1 | 52.7 | |||||||||||||||||||||
SEGMENTS_OF_BUSINESS_Tables
SEGMENTS OF BUSINESS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of segment revenues and net income (loss) attributed to common shareholders | ' | ||||||||||||||||||||||||||||||||
The tables below present information related to our reportable segments: | |||||||||||||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated | ||||||||||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | Integrys | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Energy | Company | Eliminations | Energy Group | ||||||||||||||||||||||||||
Investment | Operations | Services | and Other | Consolidated | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
External revenues | $ | 253 | $ | 353.9 | $ | — | $ | 606.9 | $ | 512.7 | $ | 10.1 | $ | — | $ | 1,129.70 | |||||||||||||||||
Intersegment revenues | 4.2 | 0.1 | — | 4.3 | 0.3 | 0.3 | (4.9 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 35.6 | 25.7 | — | 61.3 | 2.9 | 5.5 | (0.1 | ) | 69.6 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 22.3 | 22.3 | 0.5 | 0.3 | — | 23.1 | |||||||||||||||||||||||||
Miscellaneous income | 0.4 | 2.8 | — | 3.2 | 6.2 | 5.7 | (3.0 | ) | 12.1 | ||||||||||||||||||||||||
Interest expense | 12.7 | 8.8 | — | 21.5 | 0.5 | 14.1 | (3.0 | ) | 33.1 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | (19.5 | ) | 25.1 | 8.6 | 14.2 | 6.6 | (2.8 | ) | — | 18 | |||||||||||||||||||||||
Net income (loss) from continuing operations | (19.5 | ) | 40.9 | 13.7 | 35.1 | 12.3 | (8.0 | ) | — | 39.4 | |||||||||||||||||||||||
Discontinued operations | — | — | — | — | (0.6 | ) | — | — | (0.6 | ) | |||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.1 | ) | (0.6 | ) | — | (0.7 | ) | — | — | — | (0.7 | ) | |||||||||||||||||||||
Net income (loss) attributed to common shareholders | (19.6 | ) | 40.3 | 13.7 | 34.4 | 11.7 | (8.0 | ) | — | 38.1 | |||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated | ||||||||||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | Integrys | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Energy | Company | Eliminations | Energy Group | ||||||||||||||||||||||||||
Investment | Operations | Services | and Other | Consolidated | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
External revenues | $ | 215.5 | $ | 366.8 | $ | — | $ | 582.3 | $ | 335.5 | $ | 9.9 | $ | — | $ | 927.7 | |||||||||||||||||
Intersegment revenues | 4.5 | — | — | 4.5 | 0.1 | 0.3 | (4.9 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 33.2 | 22.3 | — | 55.5 | 2.7 | 4.8 | (0.1 | ) | 62.9 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 21.7 | 21.7 | 0.5 | — | — | 22.2 | |||||||||||||||||||||||||
Miscellaneous income | 0.1 | 0.9 | — | 1 | 0.3 | 5.7 | (3.9 | ) | 3.1 | ||||||||||||||||||||||||
Interest expense | 11.7 | 8.9 | — | 20.6 | 0.5 | 12.7 | (3.9 | ) | 29.9 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | (11.5 | ) | 19.5 | 8.3 | 16.3 | 16.1 | (2.8 | ) | — | 29.6 | |||||||||||||||||||||||
Net income (loss) from continuing operations | (13.9 | ) | 47.8 | 13.4 | 47.3 | 32.2 | (5.2 | ) | — | 74.3 | |||||||||||||||||||||||
Discontinued operations | — | — | — | — | (8.0 | ) | — | — | (8.0 | ) | |||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.1 | ) | (0.6 | ) | — | (0.7 | ) | — | — | — | (0.7 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | (14.0 | ) | 47.2 | 13.4 | 46.6 | 24.2 | (5.1 | ) | — | 65.7 | |||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated | ||||||||||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | Integrys | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Energy | Company | Eliminations | Energy Group | ||||||||||||||||||||||||||
Investment | Operations | Services | and Other | Consolidated | |||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
External revenues | $ | 1,412.40 | $ | 1,012.70 | $ | — | $ | 2,425.10 | $ | 1,470.70 | $ | 28.1 | $ | — | $ | 3,923.90 | |||||||||||||||||
Intersegment revenues | 8.6 | 0.1 | — | 8.7 | 0.9 | 1 | (10.6 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 100.1 | 73 | — | 173.1 | 8.4 | 14.9 | (0.4 | ) | 196 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 66 | 66 | 1.2 | 1 | — | 68.2 | |||||||||||||||||||||||||
Miscellaneous income | 0.8 | 6.6 | — | 7.4 | 8 | 18 | (10.1 | ) | 23.3 | ||||||||||||||||||||||||
Interest expense | 37.3 | 26.4 | — | 63.7 | 1.5 | 35.9 | (10.1 | ) | 91 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | 43.1 | 56.9 | 25.3 | 125.3 | 11.7 | (12.7 | ) | — | 124.3 | ||||||||||||||||||||||||
Net income (loss) from continuing operations | 72 | 94.5 | 40.7 | 207.2 | 22.5 | (12.0 | ) | — | 217.7 | ||||||||||||||||||||||||
Discontinued operations | — | — | — | — | (1.2 | ) | 5.9 | — | 4.7 | ||||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.4 | ) | (1.9 | ) | — | (2.3 | ) | — | — | — | (2.3 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | 71.6 | 92.6 | 40.7 | 204.9 | 21.3 | (6.0 | ) | — | 220.2 | ||||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated | ||||||||||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||||||||||
(Millions) | Natural Gas Utility | Electric | Electric | Total | Integrys | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Transmission | Regulated | Energy | Company | Eliminations | Energy Group | |||||||||||||||||||||||||||
Investment | Operations | Services | and Other | Consolidated | |||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
External revenues | $ | 1,131.30 | $ | 985.6 | $ | — | $ | 2,116.90 | $ | 873.7 | $ | 24.6 | $ | — | $ | 3,015.20 | |||||||||||||||||
Intersegment revenues | 8.1 | — | — | 8.1 | 0.6 | 1.5 | (10.2 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 98.3 | 66.4 | — | 164.7 | 7.4 | 15.9 | (0.4 | ) | 187.6 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 63.8 | 63.8 | 1.2 | 0.5 | — | 65.5 | |||||||||||||||||||||||||
Miscellaneous income | 0.6 | 1.5 | — | 2.1 | 0.8 | 16.4 | (12.1 | ) | 7.2 | ||||||||||||||||||||||||
Interest expense | 35.1 | 27.1 | — | 62.2 | 1.5 | 38.4 | (12.1 | ) | 90 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | 32.6 | 42.4 | 24 | 99 | 23.6 | (16.0 | ) | — | 106.6 | ||||||||||||||||||||||||
Net income (loss) from continuing operations | 53.8 | 94.3 | 39.8 | 187.9 | 46 | (9.1 | ) | — | 224.8 | ||||||||||||||||||||||||
Discontinued operations | — | — | — | — | (11.0 | ) | 1.8 | — | (9.2 | ) | |||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.4 | ) | (1.9 | ) | — | (2.3 | ) | — | — | — | (2.3 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | 53.4 | 92.4 | 39.8 | 185.6 | 35 | (7.2 | ) | — | 213.4 | ||||||||||||||||||||||||
CASH_AND_CASH_EQUIVALENTS_Deta
CASH AND CASH EQUIVALENTS (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental disclosure of statements of cash flows | ' | ' |
Cash paid for interest | $60.70 | $60 |
Cash received for income taxes | -2.6 | -45.7 |
Decrease in cash received for income taxes | 43.1 | ' |
Significant noncash transactions | ' | ' |
Construction costs funded through accounts payable | 98.4 | 78.8 |
Equity issued for stock-based compensation plans | 26.5 | 0 |
Equity issued for reinvested dividends | 9.1 | 0 |
BusinessAcquisitionContingentConsiderationandPayablesPotentialCashPayment | $7.90 | $0 |
RISK_MANAGEMENT_ACTIVITIES_Det
RISK MANAGEMENT ACTIVITIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | $154.90 | $145.40 |
Long-term assets from risk management activities | 58.1 | 45.3 |
Risk Management Assets | 213 | 190.7 |
Current liabilities from risk management activities | 157.5 | 181.9 |
Long-term liabilities from risk management activities | 59.6 | 58.4 |
Risk Management Liabilities | 217.1 | 240.3 |
Utility Segments | Non-hedge derivatives | Natural gas contracts | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 2.2 | 2.5 |
Long-term assets from risk management activities | 0.5 | 0.9 |
Current liabilities from risk management activities | 5.4 | 14 |
Long-term liabilities from risk management activities | 0.6 | 0.8 |
Utility Segments | Non-hedge derivatives | FTRs | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 3.4 | 2.1 |
Current liabilities from risk management activities | 0.4 | 0.1 |
Utility Segments | Non-hedge derivatives | Petroleum product contracts | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 0 | 0.2 |
Current liabilities from risk management activities | 0.2 | 0 |
Utility Segments | Non-hedge derivatives | Coal Contracts | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 0 | 0.3 |
Long-term assets from risk management activities | 1.5 | 2.2 |
Current liabilities from risk management activities | 2.6 | 4.7 |
Long-term liabilities from risk management activities | 0.1 | 4.3 |
Utility Segments | Cash flow hedges | Natural gas contracts | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | ' | 0 |
Current liabilities from risk management activities | ' | 0.4 |
Nonregulated Segments | Non-hedge derivatives | Natural gas contracts | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 48.9 | 51.7 |
Long-term assets from risk management activities | 24.6 | 11.5 |
Current liabilities from risk management activities | 37.6 | 48.5 |
Long-term liabilities from risk management activities | 14.6 | 7.6 |
Nonregulated Segments | Non-hedge derivatives | Electric contracts | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 100.4 | 88.6 |
Long-term assets from risk management activities | 31.5 | 30.7 |
Current liabilities from risk management activities | 111.3 | 114.2 |
Long-term liabilities from risk management activities | $44.30 | $45.70 |
RISK_MANAGEMENT_ACTIVITIES_Det1
RISK MANAGEMENT ACTIVITIES (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Derivative assets subject to master netting or similar arrangements, gross amount | $211.30 | $188.20 |
Potential Effects of Netting, Including Cash Collateral | 121.5 | 148.4 |
Derivative assets subject to master netting or similar arrangements, net amount | 89.8 | 39.8 |
Derivative assets not subject to master netting or similar arrangements | 1.7 | 2.5 |
Risk Management Assets | 213 | 190.7 |
Total Risk Management Assets, Net Amount | 91.5 | 42.3 |
Liabilities | ' | ' |
Derivative liabilities subject to master netting or similar arrangements, gross amount | 213.7 | 230.7 |
Potential Effects of Netting, Including Cash Collateral | 147.9 | 163.6 |
Derivative liabilities subject to master netting or similar arrangements, net amount | 65.8 | 67.1 |
Derivative liabilities not subject to master netting or similar arrangement | 3.4 | 9.6 |
Risk Management Liabilities | 217.1 | 240.3 |
Total Risk Management Liabilities, Net Amount | 69.2 | 76.7 |
Nonregulated Segments | ' | ' |
Assets | ' | ' |
Derivative assets subject to master netting or similar arrangements, gross amount | 205.4 | 182.5 |
Potential Effects of Netting, Including Cash Collateral | 119.2 | 145.4 |
Derivative assets subject to master netting or similar arrangements, net amount | 86.2 | 37.1 |
Liabilities | ' | ' |
Derivative liabilities subject to master netting or similar arrangements, gross amount | 207.1 | 215.4 |
Potential Effects of Netting, Including Cash Collateral | 145.2 | 159.8 |
Derivative liabilities subject to master netting or similar arrangements, net amount | 61.9 | 55.6 |
Utility Segments | ' | ' |
Assets | ' | ' |
Derivative assets subject to master netting or similar arrangements, gross amount | 5.9 | 5.7 |
Potential Effects of Netting, Including Cash Collateral | 2.3 | 3 |
Derivative assets subject to master netting or similar arrangements, net amount | 3.6 | 2.7 |
Liabilities | ' | ' |
Derivative liabilities subject to master netting or similar arrangements, gross amount | 6.6 | 15.3 |
Potential Effects of Netting, Including Cash Collateral | 2.7 | 3.8 |
Derivative liabilities subject to master netting or similar arrangements, net amount | $3.90 | $11.50 |
RISK_MANAGEMENT_ACTIVITIES_Det2
RISK MANAGEMENT ACTIVITIES (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Risk management activities | ' | ' |
Cash collateral provided to others, related to contracts under master netting or similar arrangements | $60 | $39.90 |
Cash collateral provided to others, other | 1.1 | 1.1 |
Cash collateral received from others related to contracts under master netting or similar arrangements | 0 | 0.2 |
Utility Segments | ' | ' |
Risk management activities | ' | ' |
Aggregate fair value of credit-risk derivative instruments | 5.2 | 14 |
Collateral that would have been required | 2.2 | 10.1 |
Collateral remaining | 2.2 | 10.1 |
Subsidiary Integrys Energy Services [Member] | ' | ' |
Risk management activities | ' | ' |
Aggregate fair value of credit-risk derivative instruments | 83.3 | 108.9 |
Collateral that would have been required | 185.4 | 173.8 |
Collateral already satisfied, letters of credit | 4.5 | 3.2 |
Collateral remaining | $180.90 | $170.60 |
RISK_MANAGEMENT_ACTIVITIES_Det3
RISK MANAGEMENT ACTIVITIES (Details 4) (Utility Segments, USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | FTRs | FTRs | FTRs | FTRs | FTRs | FTRs | FTRs | FTRs | Petroleum product contracts | Petroleum product contracts | Petroleum product contracts | Petroleum product contracts | Petroleum product contracts | Petroleum product contracts | Petroleum product contracts | Petroleum product contracts | Petroleum product contracts | Petroleum product contracts | Petroleum product contracts | Petroleum product contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Coal Contracts | Purchases | Purchases | Purchases | Purchases | Purchases | Purchases | Sales | Sales | Sales | Sales | Other transactions | Other transactions | |
Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (long-term) | Balance Sheet - Regulatory assets (long-term) | Balance Sheet - Regulatory assets (long-term) | Balance Sheet - Regulatory assets (long-term) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (long-term) | Balance Sheet - Regulatory liabilities (long-term) | Balance Sheet - Regulatory liabilities (long-term) | Balance Sheet - Regulatory liabilities (long-term) | Income Statement - Utility cost of fuel, natural gas and purchased power | Income Statement - Utility cost of fuel, natural gas and purchased power | Income Statement - Utility cost of fuel, natural gas and purchased power | Income Statement - Utility cost of fuel, natural gas and purchased power | Income Statement - Operating and maintenance expense | Income Statement - Operating and maintenance expense | Income Statement - Operating and maintenance expense | Income Statement - Operating and maintenance expense | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Income Statement - Operating and maintenance expense | Income Statement - Operating and maintenance expense | Income Statement - Operating and maintenance expense | Income Statement - Operating and maintenance expense | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (current) | Balance Sheet - Regulatory assets (long-term) | Balance Sheet - Regulatory assets (long-term) | Balance Sheet - Regulatory assets (long-term) | Balance Sheet - Regulatory assets (long-term) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (current) | Balance Sheet - Regulatory liabilities (long-term) | Balance Sheet - Regulatory liabilities (long-term) | Balance Sheet - Regulatory liabilities (long-term) | Balance Sheet - Regulatory liabilities (long-term) | Natural gas contracts | Natural gas contracts | Petroleum product contracts | Petroleum product contracts | Coal Contracts | Coal Contracts | Natural gas contracts | Natural gas contracts | Petroleum product contracts | Petroleum product contracts | FTRs | FTRs | |
Btu | Btu | bbl | bbl | T | T | Btu | Btu | bbl | bbl | kWh | kWh | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk management activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) recorded related to non-hedge derivatives | ($0.50) | $10.20 | $6.90 | $22.90 | $1.80 | $3.80 | $1.60 | $7.70 | ($0.40) | ($3.40) | ($0.20) | ($2.90) | $0 | $0.80 | ($0.30) | $1.30 | $0 | $0.10 | $0 | $0.20 | ($0.10) | $0.10 | ($0.20) | $0.10 | $0.80 | $0 | $0 | ($0.40) | ($0.20) | ($0.20) | ($0.30) | $0.50 | $0.10 | $0.20 | $0 | $0.10 | $0 | $0.10 | $0 | $0.10 | ($0.20) | $0.10 | ($0.20) | $0.10 | ($0.60) | $0.70 | $2.10 | ($2.50) | $0.20 | ($0.10) | $4.20 | $0.10 | $0 | $0 | ($0.30) | $0 | $1.50 | $0 | ($0.70) | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional volume of outstanding non-hedge derivative contracts (therms) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,104,100,000 | 1,072,600,000 | ' | ' | ' | ' | 1,700,000 | 100,000 | ' | ' | ' | ' |
Notional volume of outstanding non-hedge derivative contracts (kwh) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,858,100,000 | 4,057,200,000 |
Notional volume of outstanding non-hedge derivative contracts (barrels) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,822 | 62,811 | ' | ' | ' | ' | 9,000 | 0 | ' | ' |
Notional volume of outstanding non-hedge derivative contracts (tons) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,100,000 | 5,100,000 | ' | ' | ' | ' | ' | ' |
RISK_MANAGEMENT_ACTIVITIES_Det4
RISK MANAGEMENT ACTIVITIES (Details 5) (Nonregulated Segments) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | USD ($) | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | Purchases | Purchases | Purchases | Purchases | Purchases | Purchases | Sales | Sales | Sales | Sales | Sales | Sales | |
Nonregulated revenue | Nonregulated revenue | Nonregulated revenue | Nonregulated revenue | Nonregulated cost of sales | Nonregulated cost of sales | Nonregulated cost of sales | Nonregulated cost of sales | Nonregulated revenue (reclassified from accumulated OCI) | Nonregulated revenue (reclassified from accumulated OCI) | Nonregulated revenue (reclassified from accumulated OCI) | Nonregulated revenue (reclassified from accumulated OCI) | Nonregulated revenue | Nonregulated revenue | Nonregulated revenue | Nonregulated revenue | Nonregulated cost of sales | Nonregulated cost of sales | Nonregulated cost of sales | Nonregulated cost of sales | Nonregulated revenue (reclassified from accumulated OCI) | Nonregulated revenue (reclassified from accumulated OCI) | Nonregulated revenue (reclassified from accumulated OCI) | Nonregulated revenue (reclassified from accumulated OCI) | Natural gas contracts | Natural gas contracts | Electric contracts | Electric contracts | Foreign exchange contracts | Foreign exchange contracts | Natural gas contracts | Natural gas contracts | Electric contracts | Electric contracts | Foreign exchange contracts | Foreign exchange contracts | |||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Btu | Btu | kWh | kWh | CAD | CAD | Btu | Btu | kWh | kWh | CAD | CAD | |||||
Risk management activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional volume of outstanding non-hedge derivative contracts (therms) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,108,500,000 | 782,000,000 | ' | ' | ' | ' | 1,011,800,000 | 679,000,000 | ' | ' | ' | ' |
Notional volume of outstanding non-hedge derivative contracts (kwh) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,956,900,000 | 54,127,600,000 | ' | ' | ' | ' | 32,059,600,000 | 31,809,600,000 | ' | ' |
Notional volume of outstanding foreign exchange non-hedge derivative contracts, monetary (in Canadian dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0.4 | ' | ' | ' | ' | 0 | 0.4 |
Gains (losses) recorded related to non-hedge derivatives | ' | ' | ' | ' | -21.1 | -4.4 | 16.1 | 7 | 25 | 0 | -9.5 | 0 | ' | ' | ' | ' | 36 | 49.1 | 22.4 | -10.5 | -6.6 | 0 | 2.1 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) recorded related to non-hedge derivatives (prior cash flow hedge) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -0.1 | -0.2 | -1.6 | ' | ' | ' | ' | ' | ' | ' | ' | -0.2 | -1.9 | -3.2 | -3.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) recorded related to non-hedge derivatives (total) | $33.10 | $42.70 | $27.70 | ($8.40) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | Sep. 30, 2013 | 31-May-13 | 31-May-13 | 31-May-13 | Mar. 31, 2013 |
In Millions, unless otherwise specified | Alliant Energy Corporation's Natural Gas Distribution Business in Southeast Minnesota [Member] | Compass Energy Services Inc [Member] | Compass Energy Services Inc [Member] | Compass Energy Services Inc [Member] | Fox Energy Company LLC |
MERC | Subsidiary Integrys Energy Services [Member] | Subsidiary Integrys Energy Services [Member] | Subsidiary Integrys Energy Services [Member] | WPS | |
Minimum | Maximum | MW | |||
Acquisitions | ' | ' | ' | ' | ' |
Period of financial performance of acquiree as basis for contingent consideration | ' | '5 years | ' | ' | ' |
Liabilities recorded related to contingent consideration | ' | $7.70 | ' | ' | ' |
Contingent Consideration | ' | ' | 3 | 8 | ' |
Capacity of Fox Energy Center (in megawatts) | ' | ' | ' | ' | 593 |
Contracted capacity under tolling arrangement (in megawatts) | ' | ' | ' | ' | 500 |
Amount paid for the acquisition | 11 | 12.4 | ' | ' | 391.6 |
Contract termination fee related to tolling arrangement | ' | ' | ' | ' | 50 |
Amortization period of regulatory asset | ' | ' | ' | ' | '9 years |
Assets acquired | ' | ' | ' | ' | ' |
Inventories | ' | 0.7 | ' | ' | 3 |
Assets from risk managment activities (current) | ' | 15.1 | ' | ' | ' |
Other current assets | ' | 1.1 | ' | ' | 0.4 |
Assets from risk management activities (long-term) | ' | 9.3 | ' | ' | ' |
Property, plant, and equipment | ' | ' | ' | ' | 374.4 |
Other long-term assets | ' | 6.1 | ' | ' | 15.6 |
Total assets acquired | ' | 32.3 | ' | ' | 393.4 |
Liabilities assumed | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' | 1.8 |
Liabilities from risk management activities (current) | ' | 8.3 | ' | ' | ' |
Other current liabilities | ' | 0.5 | ' | ' | ' |
Liabilities from risk management activities (long-term) | ' | 3.4 | ' | ' | ' |
Total liabilities assumed | ' | $12.20 | ' | ' | $1.80 |
DISCONTINUED_OPERATIONS_HOLDIN
DISCONTINUED OPERATIONS HOLDING COMPANY AND OTHER DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Discontinued operations | ' | ' | ' | ' |
Discontinued operations, net of tax | ($0.60) | ($8) | $4.70 | ($9.20) |
Nonutility and Nonregulated Operations | Holding Company and Other | ' | ' | ' | ' |
Discontinued operations | ' | ' | ' | ' |
Discontinued operations, net of tax | $0 | $0 | $5.90 | $1.80 |
INTEGRYS_ENERGY_SERVICES_DISCO
INTEGRYS ENERGY SERVICES DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2013 | Nov. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 |
Combined Locks | Combined Locks | Combined Locks | Combined Locks | Combined Locks | WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC | WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC | WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC | WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC | WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC | WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC | WPS Westwood Generation, LLC | WPS Westwood Generation, LLC | WPS Westwood Generation, LLC | |||||
Integrys Energy Services | ||||||||||||||||||
Discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax impairment loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4 | ' | $4 | ' | ' | ' | $8.40 | $8.40 |
After-tax impairment loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | ' | 2.4 | ' | ' | ' | 5 | 5 |
Assets and liabilities classified as held for sale on balance sheets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventories | ' | ' | ' | ' | 0.5 | ' | 0.5 | ' | 0.5 | ' | ' | ' | ' | 1.8 | ' | ' | ' | ' |
Property, plant, and equipment, net of accumulated depreciation | ' | ' | ' | ' | 0.2 | ' | 0.2 | ' | 2 | ' | ' | ' | ' | 5.7 | ' | ' | ' | ' |
Accumulated depreciation | ' | ' | ' | ' | 0 | ' | 0 | ' | 0.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other long-term assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | ' | ' | ' | ' |
Total assets | ' | ' | ' | ' | 0.7 | ' | 0.7 | ' | 2.5 | ' | ' | ' | ' | 7.6 | ' | ' | ' | ' |
Other current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | ' | ' | ' | ' |
Carrying value of the derivative contract liabilities assumed by the buyer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.8 | ' | ' | ' |
Components of discontinued operations recorded in income statements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonregulated revenues | ' | ' | ' | ' | -0.1 | 0 | -0.1 | 0.3 | ' | ' | 1.2 | 1.2 | 1.5 | ' | ' | ' | 2.2 | 8.2 |
Nonregulated cost of sales | ' | ' | ' | ' | -0.1 | -0.1 | -0.2 | -0.5 | ' | ' | -0.7 | -0.9 | -1.6 | ' | ' | ' | -1.2 | -3.6 |
Operating and maintenance expense | ' | ' | ' | ' | -0.8 | -0.1 | -2 | -0.3 | ' | ' | -4.6 | 0.4 | -5.7 | ' | ' | ' | -9.3 | -12.9 |
Depreciation and amortization expense | ' | ' | ' | ' | 0 | -0.1 | 0 | -0.2 | ' | ' | -0.2 | 0 | -0.6 | ' | ' | ' | -0.3 | -1 |
Taxes other than income taxes | ' | ' | ' | ' | 0 | 0 | 0 | -0.1 | ' | ' | 0 | -0.3 | -1.1 | ' | ' | ' | -0.1 | -0.2 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.1 | -0.4 |
Income (loss) before taxes | ' | ' | ' | ' | -1 | -0.3 | -2.3 | -0.8 | ' | ' | -4.3 | 0.4 | -7.5 | ' | ' | ' | -8.8 | -9.9 |
(Provision) benefit for income taxes | ' | ' | ' | ' | 0.4 | 0.2 | 0.9 | 0.3 | ' | ' | 1.7 | -0.2 | 3 | ' | ' | ' | 3.5 | 3.9 |
Discontinued operations, net of tax | -0.6 | -8 | 4.7 | -9.2 | -0.6 | -0.1 | -1.4 | -0.5 | ' | ' | -2.6 | 0.2 | -4.5 | ' | ' | ' | -5.3 | -6 |
Gain on sale at closing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Earn-out mechanism period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' |
Period from the sale of discontinued operations within which cash flows will expire | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds related to sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.6 | ' | ' | ' | ' | ' | 2.6 | ' | ' |
Note receivable from the buyer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4 | ' | ' |
Term of note receivable from the buyer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years 6 months | ' | ' |
INVESTMENT_IN_ATC_ROLL_FORWARD
INVESTMENT IN ATC ROLL FORWARD (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Changes in equity method investments | ' | ' | ' | ' |
Equity method investments balance at beginning of period | ' | ' | $512.20 | ' |
Add: Earnings from equity method investment | 23.1 | 22.2 | 68.2 | 65.5 |
Add: Capital contributions | ' | ' | 10.2 | 24 |
Equity method investments balance at end of period | 534.5 | ' | 534.5 | ' |
ATC | ' | ' | ' | ' |
Investments in affiliates, at equity method | ' | ' | ' | ' |
Equity method investment, ownership interest (as a percent) | 34.00% | ' | 34.00% | ' |
Changes in equity method investments | ' | ' | ' | ' |
Equity method investments balance at beginning of period | 492.2 | 456.4 | 476.6 | 439.4 |
Add: Capital contributions | 3.4 | 8.5 | 10.2 | 17 |
Less: Dividends received | 17.8 | 17.3 | 52.7 | 50.9 |
Equity method investments balance at end of period | 500.1 | 469.3 | 500.1 | 469.3 |
Regulated Operations | ' | ' | ' | ' |
Changes in equity method investments | ' | ' | ' | ' |
Add: Earnings from equity method investment | 22.3 | 21.7 | 66 | 63.8 |
Regulated Operations | Electric Transmission Investment | ' | ' | ' | ' |
Changes in equity method investments | ' | ' | ' | ' |
Add: Earnings from equity method investment | $22.30 | $21.70 | $66 | $63.80 |
INVESTMENT_IN_ATC_INCOME_STATE
INVESTMENT IN ATC INCOME STATEMENT AND BALANCE SHEET (Details) (ATC, USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
ATC | ' | ' | ' | ' | ' |
Income statement data | ' | ' | ' | ' | ' |
Revenues | $160.40 | $150.30 | $464.30 | $450.10 | ' |
Operating expenses | 77.5 | 68.8 | 217.2 | 210.1 | ' |
Other expense | 20.2 | 21 | 62.6 | 62.1 | ' |
Net income | 62.7 | 60.5 | 184.5 | 177.9 | ' |
Balance sheet data | ' | ' | ' | ' | ' |
Current assets | 77.8 | ' | 77.8 | ' | 63.1 |
Noncurrent assets | 3,455.40 | ' | 3,455.40 | ' | 3,274.70 |
Total assets | 3,533.20 | ' | 3,533.20 | ' | 3,337.80 |
Current liabilities | 353.6 | ' | 353.6 | ' | 251.5 |
Long-term debt | 1,550 | ' | 1,550 | ' | 1,550 |
Other noncurrent liabilities | 119.9 | ' | 119.9 | ' | 95.8 |
Shareholders' equity | 1,509.70 | ' | 1,509.70 | ' | 1,440.50 |
Total liabilities and shareholders' equity | $3,533.20 | ' | $3,533.20 | ' | $3,337.80 |
INVENTORIES_Inventory_Disclosu
INVENTORIES Inventory Disclosure (Details) (PGL [Member], USD $) | Sep. 30, 2013 |
PGL [Member] | ' |
Temporary LIFO liquidation credit [Line Items] | ' |
Temporary LIFO Liquidation Credit | $0 |
GOODWILL_ROLLFORWARD_Details
GOODWILL ROLLFORWARD (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Changes in the gross carrying amount of goodwill and accumulated impairment losses | ' |
Balance at the beginning of the period, Gross goodwill | $955.90 |
Balance at the beginning of the period, Accumulated impairment losses | -297.6 |
Balance at the beginning of the period, Net goodwill | 658.3 |
Adjustment to ITF patents/intellectual property | 3.8 |
Balance at the end of the period, Gross goodwill | 959.7 |
Balance at the end of the period, Accumulated impairment losses | -297.6 |
Balance at the end of the period, Net goodwill | 662.1 |
Goodwill impairment loss | 0 |
Natural Gas Utility | ' |
Changes in the gross carrying amount of goodwill and accumulated impairment losses | ' |
Balance at the beginning of the period, Gross goodwill | 933.5 |
Balance at the beginning of the period, Accumulated impairment losses | -297.6 |
Balance at the beginning of the period, Net goodwill | 635.9 |
Adjustment to ITF patents/intellectual property | 0 |
Balance at the end of the period, Gross goodwill | 933.5 |
Balance at the end of the period, Accumulated impairment losses | -297.6 |
Balance at the end of the period, Net goodwill | 635.9 |
Integrys Energy Services | ' |
Changes in the gross carrying amount of goodwill and accumulated impairment losses | ' |
Balance at the beginning of the period, Gross goodwill | 6.6 |
Balance at the beginning of the period, Accumulated impairment losses | 0 |
Balance at the beginning of the period, Net goodwill | 6.6 |
Adjustment to ITF patents/intellectual property | 0 |
Balance at the end of the period, Gross goodwill | 6.6 |
Balance at the end of the period, Accumulated impairment losses | 0 |
Balance at the end of the period, Net goodwill | 6.6 |
Holding Company and Other | ' |
Changes in the gross carrying amount of goodwill and accumulated impairment losses | ' |
Balance at the beginning of the period, Gross goodwill | 15.8 |
Balance at the beginning of the period, Accumulated impairment losses | 0 |
Balance at the beginning of the period, Net goodwill | 15.8 |
Adjustment to ITF patents/intellectual property | 3.8 |
Balance at the end of the period, Gross goodwill | 19.6 |
Balance at the end of the period, Accumulated impairment losses | 0 |
Balance at the end of the period, Net goodwill | $19.60 |
OTHER_INTANGIBLE_ASSETS_Detail
OTHER INTANGIBLE ASSETS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Nonregulated cost of sales | Nonregulated cost of sales | Nonregulated cost of sales | Nonregulated cost of sales | Depreciation and amortization | Depreciation and amortization | Depreciation and amortization | Depreciation and amortization | Customer-related | Customer-related | Contractual service agreements | Contractual service agreements | Patents/intellectual property | Patents/intellectual property | Compressed natural gas fueling contract assets | Compressed natural gas fueling contract assets | Renewable energy credits | Renewable energy credits | Nonregulated easements | Nonregulated easements | Customer-owned equipment modifications | Customer-owned equipment modifications | Other amortized intangible assets | Other amortized intangible assets | Trade name | Trade name | Trade name | Trade name | Trade name | Trade name | ||
MGU | MGU | Trillium | Trillium | Pinnacle | Pinnacle | |||||||||||||||||||||||||||
Amortized intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized intangible assets, carrying amount, gross | $66.80 | $46.60 | ' | ' | ' | ' | ' | ' | ' | ' | $26.80 | $22.40 | $15.60 | $0 | $3.40 | $7.20 | $5.60 | $5.60 | $5.10 | $3.10 | $3.70 | $3.80 | $4 | $4 | $2.60 | $0.50 | ' | ' | ' | ' | ' | ' |
Accumulated amortization of intangible assets | -21.9 | -17.9 | ' | ' | ' | ' | ' | ' | ' | ' | -15.3 | -14.7 | -1.2 | 0 | -0.4 | -0.3 | -2.3 | -1.3 | 0 | 0 | -1.1 | -0.9 | -0.8 | -0.5 | -0.8 | -0.2 | ' | ' | ' | ' | ' | ' |
Amortized intangible assets, net | 44.9 | 28.7 | ' | ' | ' | ' | ' | ' | ' | ' | 11.5 | 7.7 | 14.4 | 0 | 3 | 6.9 | 3.3 | 4.3 | 5.1 | 3.1 | 2.6 | 2.9 | 3.2 | 3.5 | 1.8 | 0.3 | ' | ' | ' | ' | ' | ' |
Weighted-average amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P11Y | ' | 'P7Y | ' | 'P9Y | ' | 'P7Y | ' | ' | ' | 'P11Y | ' | 'P11Y | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | ' | ' | 0.6 | 0.3 | 1.5 | 2.2 | 1.3 | 0.5 | 3 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized intangible asset, carrying amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.2 | 5.2 | 3.5 | 3.5 | 1.5 | 1.5 |
Total intangible assets, gross | 77 | 56.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intangible assets, net | 55.1 | 38.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense for the next five fiscal years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, 2013 | ' | ' | 7.2 | ' | 7.2 | ' | 4.2 | ' | 4.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, 2014 | ' | ' | 2.2 | ' | 2.2 | ' | 4.3 | ' | 4.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, 2015 | ' | ' | 1.4 | ' | 1.4 | ' | 4.2 | ' | 4.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, 2016 | ' | ' | 0.9 | ' | 0.9 | ' | 4 | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, 2017 | ' | ' | $0.90 | ' | $0.90 | ' | $3.90 | ' | $3.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHORTTERM_DEBT_AND_LINES_OF_CR2
SHORT-TERM DEBT AND LINES OF CREDIT SHORT-TERM DEBT AND LINES OF CREDIT (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Short-term borrowings | ' | ' | ' |
Short-term borrowings outstanding | $388 | ' | $482.40 |
Commercial paper | ' | ' | ' |
Short-term borrowings | ' | ' | ' |
Short-term borrowings outstanding | 188 | ' | 482.4 |
Average interest rate (as a percent) | 0.17% | ' | 0.40% |
Average amount of short-term borrowings outstanding | 423 | 299.2 | ' |
Loan under term credit facility | ' | ' | ' |
Short-term borrowings | ' | ' | ' |
Short-term borrowings outstanding | $200 | ' | $0 |
Average interest rate (as a percent) | 0.78% | ' | 0.00% |
SHORTTERM_DEBT_AND_LINES_OF_CR3
SHORT-TERM DEBT AND LINES OF CREDIT (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Short-term borrowings | ' | ' |
Total short-term credit capacity | $1,810 | $1,610 |
Letters of credit issued inside credit facilities | 37.4 | 25.5 |
Short-term borrowings outstanding | 388 | 482.4 |
Available capacity under existing agreements | 1,384.60 | 1,102.10 |
Revolving credit facility maturing on May 17, 2014 | Integrys Energy Group, Inc. | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 275 | 275 |
Revolving credit facility maturing on May 17, 2014 | WPS | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 135 | 135 |
Revolving credit facility maturing on May 17, 2016 | Integrys Energy Group, Inc. | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 200 | 200 |
Revolving credit facility maturing on June 13, 2017 | Integrys Energy Group, Inc. | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 635 | 635 |
Revolving credit facility maturing on June 13, 2017 | WPS | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 115 | 115 |
Revolving credit facility maturing on June 13, 2017 | PGL | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 250 | 250 |
Term credit facility maturing on December 31, 2013 | WPS | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 200 | 0 |
Loan under term credit facility | ' | ' |
Short-term borrowings | ' | ' |
Short-term borrowings outstanding | 200 | 0 |
Commercial paper | ' | ' |
Short-term borrowings | ' | ' |
Short-term borrowings outstanding | $188 | $482.40 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2013 | 31-May-13 | Sep. 30, 2013 | Apr. 30, 2013 | Aug. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-13 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Aug. 31, 2013 |
In Millions, unless otherwise specified | WPS | WPS | WPS | WPS | PGL | PGL | PGL | PGL | PGL | PGL | PGL | NSG | NSG | NSG | NSG | NSG | Integrys Energy Group, Inc. | Integrys Energy Group, Inc. | Integrys Energy Group, Inc. | Integrys Energy Group, Inc. | ||
Senior Notes, 4.80% due 2013 | Senior Notes, 3.95% due 2013 | Fixed First and Refunding Mortgage Bonds, Series KK, 5.00% bonds due 2033 | Fixed First and Refunding Mortgage Bonds, Series NN-2, 4.625% bonds due 2013 | Fixed First and Refunding Mortgage Bonds, Series SS, 7.00% bonds due 2013 | Fixed First and Refunding Mortgage Bonds, Series ZZ, 4.0% bonds due 2033 | Fixed First and Refunding Mortgage Bonds, Series AAA, 3.96% bonds due 2043 | First Mortgage Series N-2, 4.625% bonds due 2013 | First Mortgage Series O, 7.00% bonds due 2013 | First Mortgage Series Q, 3.96% bonds due 2043 | Unsecured Senior Notes, 7.27% due 2014 | Junior Subordinated Notes, 6.00% due 2073 | |||||||||||
LONG-TERM DEBT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $2,783.40 | $2,246.40 | $850.10 | $872.10 | ' | ' | $770 | $625 | ' | ' | ' | ' | ' | $88.50 | $74.50 | ' | ' | ' | $1,074.80 | $674.80 | ' | ' |
Unamortized discount on debt | -0.7 | -1.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | 2,782.70 | 2,245.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current portion | 276.5 | 313.5 | ' | ' | 125 | ' | ' | ' | ' | ' | 45 | ' | ' | ' | ' | ' | 6.5 | ' | ' | ' | 100 | ' |
Total long-term debt | 2,506.20 | 1,931.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate stated percentage | ' | ' | ' | ' | 4.80% | 3.95% | ' | ' | 5.00% | 4.63% | 7.00% | 4.00% | 3.96% | ' | ' | 4.63% | 7.00% | 3.96% | ' | ' | 7.27% | 6.00% |
Principal balance repaid | ' | ' | ' | ' | ' | 22 | ' | ' | 50 | 75 | ' | ' | ' | ' | ' | 40 | ' | ' | ' | ' | ' | ' |
Amount of debt issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50 | $220 | ' | ' | ' | ' | $54 | ' | ' | ' | $400 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income taxes | ' | ' | ' | ' |
Effective tax rate (as a percent) | 31.40% | 28.50% | 36.30% | 32.20% |
Federal statutory tax rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% |
Decrease in provision for income taxes related to effective settlement and remeasurement of uncertain tax positions | ' | ' | ' | $6.20 |
Decrease in liability for unrecognized tax benefits | ' | ' | 7.7 | ' |
WPS | ' | ' | ' | ' |
Income taxes | ' | ' | ' | ' |
Authorized recovery of income tax amounts previously expensed related to the Federal Health Care Reform Act | ' | 5.9 | ' | 5.9 |
PGL and NSG | ' | ' | ' | ' |
Income taxes | ' | ' | ' | ' |
Reversal of regulatory liability related to Illinois income tax rate changes | 3.7 | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Unconditional purchase obligations | ' |
Total Amounts Committed | $2,380.50 |
2013 | 253.4 |
2014 | 611.6 |
2015 | 338.3 |
2016 | 222.8 |
2017 | 143.2 |
Later Years | 811.2 |
Natural gas utility supply and transportation | Natural Gas Utility | ' |
Unconditional purchase obligations | ' |
Total Amounts Committed | 839.8 |
2013 | 48.5 |
2014 | 171 |
2015 | 162.4 |
2016 | 148.5 |
2017 | 103.4 |
Later Years | 206 |
Purchased power | Electric Utility | ' |
Unconditional purchase obligations | ' |
Total Amounts Committed | 795.5 |
2013 | 37.6 |
2014 | 66.5 |
2015 | 32.6 |
2016 | 28.8 |
2017 | 27.7 |
Later Years | 602.3 |
Coal supply and transportation | Electric Utility | ' |
Unconditional purchase obligations | ' |
Total Amounts Committed | 110.6 |
2013 | 17.3 |
2014 | 44.4 |
2015 | 31.9 |
2016 | 9.5 |
2017 | 6 |
Later Years | 1.5 |
Nonregulated electricity and natural gas supply | Nonutility and Nonregulated Operations | ' |
Unconditional purchase obligations | ' |
Total Amounts Committed | 634.6 |
2013 | 150 |
2014 | 329.7 |
2015 | 111.4 |
2016 | 36 |
2017 | 6.1 |
Later Years | 1.4 |
Purchase Order | ' |
Purchase and sales commitments | ' |
Commitments in the form of purchase orders issued to vendors | $770.90 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 2) (USD $) | 9 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Manufactured Gas Plant Remediation | WPS | WPS | WPS | WPS | |
Natural Gas Utility | Weston and Pulliam Plants | Columbia And Edgewater | WDNR Issued NOV's | Mercury emission | |
site | Electric Utility | Electric Utility | Electric Utility | Electric Utility | |
NOV | MW | ||||
Air Permitting Violation Claims | ' | ' | ' | ' | ' |
Beneficial environmental project amount | ' | $6 | $1.30 | ' | ' |
Civil penalty and/or legal fees | ' | 1.2 | 0.4 | ' | ' |
Number of NOV's alleging violations of the air permits received since 2008 | ' | ' | ' | 4 | ' |
Number of corrective actions taken for NOV's received | ' | ' | ' | 5 | ' |
Mercury and Interstate Air Quality Rules | ' | ' | ' | ' | ' |
Percentage mercury 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 is required by 2015 (in MW) | ' | ' | ' | ' | 150 |
Percentage mercury reduction by 2015, required by the State of Wisconsin's mercury rule, for electric generating units above 150 MW | ' | ' | ' | ' | 90.00% |
Level of electric generating units above which a reduction in mercury emissions is required by the Best Available Control Technology rule (in MW) | ' | ' | ' | ' | 25 |
Highest level of electric generating units for which a reduction in mercury emissions is required by the Best Available Control Technology rule (in MW) | ' | ' | ' | ' | 150 |
Estimated capital cost to achieve required emission reduction | ' | ' | ' | ' | 9 |
Manufactured Gas Plant Remediation | ' | ' | ' | ' | ' |
Number of environmental remediation sites | 53 | ' | ' | ' | ' |
Number of environmental remediation sites transferred to the EPA Superfund Alternative Sites Program | 20 | ' | ' | ' | ' |
Estimated and accrued future undiscounted investigation and cleanup costs for all sites | 612.1 | ' | ' | ' | ' |
Cash expenditures for environmental remediation not yet recovered in rates | 46.2 | ' | ' | ' | ' |
Regulatory assets recorded for cash and estimated future remediation expenditures, net of insurance recoveries received | 658.3 | ' | ' | ' | ' |
Insurance recoveries received | $64.90 | ' | ' | ' | ' |
GUARANTEES_Details
GUARANTEES (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Guarantees | ' |
Total guarantees | $690.80 |
Guarantees expiring in less than 1 year | 446.6 |
Guarantees expiring within 1 to 3 years | 7.8 |
Guarantees with expiration over 3 years from balance sheet date | 236.4 |
Integrys Energy Services | Parental guarantees | ' |
Guarantees | ' |
Total guarantees | 496 |
Guarantee exposure related to open transactions | 245.8 |
Guarantees supporting commodity transactions | ' |
Guarantees | ' |
Total guarantees | 605.9 |
Guarantees expiring in less than 1 year | 390.3 |
Guarantees expiring within 1 to 3 years | 2.7 |
Guarantees with expiration over 3 years from balance sheet date | 212.9 |
Guarantees supporting commodity transactions | Integrys Energy Services | ' |
Guarantees | ' |
Total guarantees | 438.3 |
Guarantees supporting commodity transactions | MERC | ' |
Guarantees | ' |
Total guarantees | 110.5 |
Guarantees supporting commodity transactions | IBS | ' |
Guarantees | ' |
Total guarantees | 5 |
Guarantees supporting commodity transactions | MGU | ' |
Guarantees | ' |
Total guarantees | 50.1 |
Guarantees supporting commodity transactions | UPPCO | ' |
Guarantees | ' |
Total guarantees | 2 |
Standby letters of credit | ' |
Guarantees | ' |
Total guarantees | 40.8 |
Guarantees expiring in less than 1 year | 40.7 |
Guarantees expiring within 1 to 3 years | 0.1 |
Guarantees with expiration over 3 years from balance sheet date | 0 |
Standby letters of credit | Integrys Energy Services | ' |
Guarantees | ' |
Total guarantees | 38.8 |
Standby letters of credit | ITF, MERC, MGU, NSG, PGL, UPPCO, and WPS | ' |
Guarantees | ' |
Total guarantees | 2 |
Surety bonds | ' |
Guarantees | ' |
Total guarantees | 20.6 |
Guarantees expiring in less than 1 year | 15.6 |
Guarantees expiring within 1 to 3 years | 5 |
Guarantees with expiration over 3 years from balance sheet date | 0 |
Other guarantees | ' |
Guarantees | ' |
Total guarantees | 23.5 |
Guarantees expiring in less than 1 year | 0 |
Guarantees expiring within 1 to 3 years | 0 |
Guarantees with expiration over 3 years from balance sheet date | 23.5 |
Other guarantees | Integrys Energy Services | Texas Retail Electric Marketing Business | ' |
Guarantees | ' |
Total guarantees | 10 |
Other guarantees | ITF | ' |
Guarantees | ' |
Total guarantees | 2.4 |
Environment indemnification other guarantee | Integrys Energy Services | Sale of Stoneman generation facility | ' |
Guarantees | ' |
Total guarantees | 5 |
Indemnification and workers' compensation coverage | ' |
Guarantees | ' |
Total guarantees | $6.10 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Changes in accumulated other comprehensive loss | ' | ' |
Accumulated other comprehensive loss, balance at beginning of period | ($36.60) | ($40.90) |
Other comprehensive income before reclassifications | ' | 0.7 |
Amounts reclassified out of accumulated other comprehensive loss | 0.9 | 4.5 |
Net current period other comprehensive income | ' | 5.2 |
Accumulated other comprehensive loss, balance at end of period | -35.7 | -35.7 |
Cash flow hedges | ' | ' |
Changes in accumulated other comprehensive loss | ' | ' |
Accumulated other comprehensive loss, balance at beginning of period | -2.1 | -5.2 |
Other comprehensive income before reclassifications | ' | 0.7 |
Amounts reclassified out of accumulated other comprehensive loss | 0.3 | 2.7 |
Net current period other comprehensive income | ' | 3.4 |
Accumulated other comprehensive loss, balance at end of period | -1.8 | -1.8 |
Defined benefit plans | ' | ' |
Changes in accumulated other comprehensive loss | ' | ' |
Accumulated other comprehensive loss, balance at beginning of period | -34.5 | -35.7 |
Other comprehensive income before reclassifications | ' | 0 |
Amounts reclassified out of accumulated other comprehensive loss | 0.6 | 1.8 |
Net current period other comprehensive income | ' | 1.8 |
Accumulated other comprehensive loss, balance at end of period | ($33.90) | ($33.90) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE LOSS RECLASSIFICATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Operating and maintenance expense | $282.30 | $240.30 | $866.10 | $748.60 |
Nonregulated revenues | -522.8 | -345.4 | -1,498.80 | -898.3 |
Interest expense | 33.1 | 29.9 | 91 | 90 |
Total before taxes | -57.4 | -103.9 | -342 | -331.4 |
Tax expense | -18 | -29.6 | -124.3 | -106.6 |
Net of tax | -39.4 | -74.3 | -217.7 | -224.8 |
Regulated Operations | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Interest expense | 21.5 | 20.6 | 63.7 | 62.2 |
Tax expense | -14.2 | -16.3 | -125.3 | -99 |
Net of tax | -35.1 | -47.3 | -207.2 | -187.9 |
Amount reclassified | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Net of tax | 0.9 | ' | 4.5 | ' |
Losses on cash flow hedges | Amount reclassified | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Total before taxes | 0.5 | ' | 4.4 | ' |
Tax expense | 0.2 | ' | 1.7 | ' |
Net of tax | 0.3 | ' | 2.7 | ' |
Losses on cash flow hedges | Amount reclassified | Commodity derivative contracts | Regulated Operations | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Operating and maintenance expense | 0 | ' | 0.2 | ' |
Losses on cash flow hedges | Amount reclassified | Commodity derivative contracts | Nonutility and Nonregulated Operations | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Nonregulated revenues | 0.2 | ' | 3.4 | ' |
Losses on cash flow hedges | Amount reclassified | Interest rate hedges | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Interest expense | 0.3 | ' | 0.8 | ' |
Defined benefit plans | Amount reclassified | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Amortization of prior service costs | -0.1 | ' | -0.2 | ' |
Amortization of net actuarial loss | 1.1 | ' | 3.2 | ' |
Total before taxes | 1 | ' | 3 | ' |
Tax expense | 0.4 | ' | 1.2 | ' |
Net of tax | $0.60 | ' | $1.80 | ' |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Benefits | ' | ' | ' | ' |
Components of net periodic benefit cost (including amounts capitalized to the balance sheets) | ' | ' | ' | ' |
Service cost | $7.50 | $11.50 | $22.60 | $34.50 |
Interest cost | 17.8 | 19.5 | 53.4 | 58.5 |
Expected return on plan assets | -26.4 | -27 | -79.1 | -80.9 |
Amortization of transition obligation | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 1 | 1.3 | 3 | 3.8 |
Amortization of net actuarial loss | 14.2 | 8.5 | 42.5 | 25.5 |
Net periodic benefit cost | 14.1 | 13.8 | 42.4 | 41.4 |
Contributions by Employer | ' | ' | 64.9 | ' |
Additional contributions to plans during the remainder of fiscal year | 3.4 | ' | 3.4 | ' |
Other Postretirement Benefits | ' | ' | ' | ' |
Components of net periodic benefit cost (including amounts capitalized to the balance sheets) | ' | ' | ' | ' |
Service cost | 6.3 | 5.2 | 18.7 | 15.6 |
Interest cost | 6.2 | 7.1 | 18.6 | 21.4 |
Expected return on plan assets | -7.7 | -7.1 | -23 | -21.2 |
Amortization of transition obligation | 0 | 0.1 | 0 | 0.2 |
Amortization of prior service cost (credit) | -0.7 | -0.9 | -1.9 | -2.6 |
Amortization of net actuarial loss | 2.1 | 1.7 | 6.3 | 5 |
Net periodic benefit cost | 6.2 | 6.1 | 18.7 | 18.4 |
Contributions by Employer | ' | ' | 0.1 | ' |
Additional contributions to plans during the remainder of fiscal year | $32.80 | ' | $32.80 | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Information related to share based awards | ' | ' | ' | ' |
Total stock-based compensation expense | $4,400,000 | $3,100,000 | $14,300,000 | $14,800,000 |
Deferred income tax benefit | 1,800,000 | 1,200,000 | 5,700,000 | 5,900,000 |
Stock-based compensation cost capitalized | 0 | 0 | 0 | 0 |
Stock Options | ' | ' | ' | ' |
Information related to share based awards | ' | ' | ' | ' |
Total stock-based compensation expense | 500,000 | 500,000 | 1,400,000 | 1,500,000 |
Performance Stock Rights | ' | ' | ' | ' |
Information related to share based awards | ' | ' | ' | ' |
Total stock-based compensation expense | 1,200,000 | 500,000 | 4,400,000 | 4,800,000 |
Restricted Share Units | ' | ' | ' | ' |
Information related to share based awards | ' | ' | ' | ' |
Total stock-based compensation expense | 2,500,000 | 2,100,000 | 7,800,000 | 7,500,000 |
Nonemployee Director Deferred Stock Units | ' | ' | ' | ' |
Information related to share based awards | ' | ' | ' | ' |
Total stock-based compensation expense | $200,000 | $0 | $700,000 | $1,000,000 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (Stock Options, USD $) | 9 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Stock Options | ' | ' |
Assumptions Incorporated into Valuation Models and Weighted Average Grant Date Fair Value | ' | ' |
Period of historical volatility used to estimate expected volatility | '10 years | ' |
Weighted-average fair value per option (in dollars per share) | $6.03 | ' |
Expected term | '5 years | ' |
Risk-free interest rate, minimum (as a percent) | 0.18% | ' |
Risk-free interest rate, maximum (as a percent) | 2.11% | ' |
Expected dividend yield (as a percent) | 5.33% | ' |
Expected volatility (as a percent) | 24.00% | ' |
Stock Options (in shares) | ' | ' |
Outstanding, at the beginning of the period (in shares) | 2,046,355 | ' |
Granted, (in shares) | 319,234 | ' |
Exercised (in shares) | -793,455 | ' |
Forfeited (in shares) | -15,510 | ' |
Outstanding, at the end of the period (in shares) | 1,556,624 | ' |
Exercisable (in shares) | 816,336 | ' |
Weighted-Average Exercise Price (in dollars per share) | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $49.25 | ' |
Granted (in dollars per share) | $56 | ' |
Exercised (in dollars per share) | $48.58 | ' |
Forfeited (in dollars per share) | $56 | ' |
Outstanding at the end of the period (in dollars per share) | $50.91 | ' |
Exercisable at the end of the period (in dollars per share) | $49.92 | ' |
Weighted-Average Remaining Contractual Life (in Years) | ' | ' |
Outstanding at the end of the period | '6 years 6 months | ' |
Exercisable at the end of period | '4 years 9 months | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding at the end of the period (in dollars) | $8.20 | ' |
Exercisable (in dollars) | 5.3 | ' |
Exercised (in dollars) | 9 | 10.8 |
Additional disclosures | ' | ' |
Compensation cost not yet recognized | 1.5 | ' |
Weighted-average period over which compensation cost is to be recognized | '2 years | ' |
Tax benefit realized for the tax deductions from option exercises | $3.60 | $4.40 |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 3) (USD $) | 9 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Restricted Share Units | ' | ' |
Performance Stock Rights and Restricted Stock Units Activity | ' | ' |
Outstanding at the beginning of the period (in shares) | 505,690 | ' |
Granted (in shares) | 196,894 | ' |
Dividend equivalents (in shares) | 17,830 | ' |
Vested and released (in shares) | -207,411 | ' |
Forfeited (in shares) | -5,997 | ' |
Outstanding at the end of period (in shares) | 507,006 | ' |
Weighted-Average Fair Value | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $48.38 | ' |
Granted (in dollars per share) | $55.93 | $53.24 |
Dividend equivalents (in dollars per share) | $52.19 | ' |
Vested and released (in dollars per share) | $46.32 | ' |
Forfeited (in dollars per share) | $53.16 | ' |
Outstanding at the end of the period (in dollars per share) | $52.24 | ' |
Total intrinsic value | ' | ' |
Total intrinsic value of restricted share units vested and released (in dollars) | $11.60 | $10.50 |
Additional disclosures | ' | ' |
Compensation cost not yet recognized | 12.6 | ' |
Weighted-average period over which compensation cost is to be recognized | '2 years 4 months | ' |
Tax benefit realized from the distribution of shares | 4.7 | 4.2 |
Performance Stock Rights Accounted For As Liability Awards | ' | ' |
Performance Stock Rights and Restricted Stock Units Activity | ' | ' |
Outstanding at the beginning of the period (in shares) | 189,093 | ' |
Granted (in shares) | 90,496 | ' |
Award modifications (in shares) | -28,789 | ' |
Distributed (in shares) | -61,753 | ' |
Adjustment for final payout (in shares) | 14,255 | ' |
Forfeited (in shares) | -4,398 | ' |
Outstanding at the end of period (in shares) | 198,904 | ' |
Weighted-Average Fair Value | ' | ' |
Outstanding at the end of the period, fair value as of the reporting date (in dollars per share) | $47.32 | ' |
Additional disclosures | ' | ' |
Period prior to the end of the performance period during which employees cannot change their election to defer the value of award into deferred compensation plan | '6 months | ' |
Performance Stock Rights Accounted For As Equity Awards | ' | ' |
Performance Stock Rights and Restricted Stock Units Activity | ' | ' |
Outstanding at the beginning of the period (in shares) | 108,314 | ' |
Granted (in shares) | 22,636 | ' |
Award modifications (in shares) | 28,789 | ' |
Distributed (in shares) | -94,758 | ' |
Adjustment for final payout (in shares) | 21,867 | ' |
Forfeited (in shares) | -1,099 | ' |
Outstanding at the end of period (in shares) | 85,749 | ' |
Weighted-Average Fair Value | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $65.38 | ' |
Granted (in dollars per share) | $48.50 | $52.70 |
Award modifications (in dollars per share) | $39.80 | ' |
Distributed (in dollars per share) | $72.36 | ' |
Adjustment for final payout (in dollars per shares) | $72.36 | ' |
Forfeited (in dollars per share) | $48.50 | ' |
Outstanding at the end of the period (in dollars per share) | $46.62 | ' |
Additional disclosures | ' | ' |
Period prior to the end of the performance period during which employees cannot change their election to defer the value of award into deferred compensation plan | '6 months | ' |
Performance Stock Rights | ' | ' |
Total intrinsic value | ' | ' |
Total intrinsic value of performance stock rights distributed during the period (in dollars) | 8.8 | 4.7 |
Additional disclosures | ' | ' |
Compensation cost not yet recognized | 3 | ' |
Weighted-average period over which compensation cost is to be recognized | '1 year 6 months | ' |
Tax benefit realized from the distribution of shares | $3.60 | $1.90 |
Performance Stock Rights | Minimum | ' | ' |
Assumptions Incorporated into Valuation Models | ' | ' |
Period of historical volatility used to estimate expected volatility | '2 years | ' |
Risk-free interest rate, minimum (as a percent) | 0.26% | ' |
Expected dividend yield (as a percent) | 5.18% | ' |
Expected volatility, minimum (as a percent) | 19.00% | ' |
Performance Stock Rights | Maximum | ' | ' |
Assumptions Incorporated into Valuation Models | ' | ' |
Period of historical volatility used to estimate expected volatility | '3 years | ' |
Risk-free interest rate, maximum (as a percent) | 1.27% | ' |
Expected dividend yield (as a percent) | 5.34% | ' |
Expected volatility rate, maximum (as a percent) | 36.00% | ' |
COMMON_EQUITY_Details
COMMON EQUITY (Details) (USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 |
Changes to issued common stock | ' |
Common Stock, Shares, Issued, Balance at Beginning of the Period | 78,287,906 |
Shares issued - Stock-based compensation | 1,144,495 |
Shares issued - Stock Investment Plan | 219,847 |
Shares issued - Rabbi trust Shares | 105,467 |
Common Stock, Shares, Issued, Balance at End of the Period | 79,757,715 |
Value of stock issuance | $71.10 |
COMMON_EQUITY_COMMON_EQUITY_De
COMMON EQUITY COMMON EQUITY (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Reconciliation of shares outstanding | ' | ' |
Common stock, shares issued | 79,757,715 | 78,287,906 |
Deferred compensation rabbi trust (in shares) | 467,967 | 385,439 |
Total common shares outstanding | 79,289,748 | 77,902,467 |
Average cost of shares in the rabbi trust (in dollars per share) | $48.42 | $46.03 |
COMMON_EQUITY_Details_2
COMMON EQUITY (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ' | ' | ' | ' |
Net income (loss) from continuing operations | $39.40 | $74.30 | $217.70 | $224.80 |
Discontinued operations, net of tax | -0.6 | -8 | 4.7 | -9.2 |
Preferred stock dividends of subsidiary | -0.7 | -0.7 | -2.3 | -2.3 |
Noncontrolling interest in subsidiaries | 0 | 0.1 | 0.1 | 0.1 |
Net income attributed to common shareholders | 38.1 | 65.7 | 220.2 | 213.4 |
Dilutive Securities, Effect on Basic Earnings Per Share | -0.1 | 0 | -0.1 | 0 |
Net income (loss) attributed to common shareholders, diluted | $38 | $65.70 | $220.10 | $213.40 |
Denominator: | ' | ' | ' | ' |
Average shares of common stock - basic | 79.8 | 78.5 | 79.3 | 78.5 |
Effect of dilutive securities - Stock-based compensation (in shares) | 0.4 | 0.6 | 0.4 | 0.6 |
Effect of dilutive securities - Deferred compensation (in shares) | 0 | 0.2 | 0.2 | 0.2 |
Average shares of common stock - diluted | 80.2 | 79.3 | 79.9 | 79.3 |
Earnings (Loss) per common share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.48 | $0.84 | $2.78 | $2.72 |
Diluted (in dollars per share) | $0.47 | $0.83 | $2.76 | $2.69 |
Stock-based compensation | ' | ' | ' | ' |
Disclosure of antidilutive shares | ' | ' | ' | ' |
Antidilutive shares excluded from calculation of diluted earnings per share | 0.4 | 0.9 | 0.2 | 0.6 |
Deferred compensation | ' | ' | ' | ' |
Disclosure of antidilutive shares | ' | ' | ' | ' |
Antidilutive shares excluded from calculation of diluted earnings per share | 0.2 | 0 | 0.1 | 0 |
COMMON_EQUITY_Details_3
COMMON EQUITY (Details 3) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Dividend Payment Restrictions | ' |
Total restricted net assets | 1,743.40 |
Equity in undistributed earnings of 50% or less owned investees accounted for by the equity method | 138.2 |
Maximum | ' |
Dividend Payment Restrictions | ' |
Debt to capitalization ratio required to be maintained (as a percent) | 65.00% |
Equity method investment, ownership interest (as a percent) | 50.00% |
Cumulative period of interest payment deferral on Junior Subordinated Notes | '10 years |
Minimum | ' |
Dividend Payment Restrictions | ' |
Number of periods for which interest payments can be deferred on Junior Subordinated Notes | 1 |
PGL | Maximum | ' |
Dividend Payment Restrictions | ' |
Debt to capitalization ratio required to be maintained (as a percent) | 65.00% |
WPS | Maximum | ' |
Dividend Payment Restrictions | ' |
Debt to capitalization ratio required to be maintained (as a percent) | 65.00% |
WPS | Maximum | Public Service Commission of Wisconsin (PSCW) | ' |
Dividend Payment Restrictions | ' |
Percentage of previous period's dividend as restriction on current period dividends | 103.00% |
WPS | Minimum | ' |
Dividend Payment Restrictions | ' |
Percentage of common stockholders equity to total capitalization for dividend payment restrictions | 25.00% |
WPS | Minimum | Public Service Commission of Wisconsin (PSCW) | ' |
Dividend Payment Restrictions | ' |
Common equity ratio required to be maintained (as a percent) | 51.00% |
COMMON_EQUITY_Details_4
COMMON EQUITY (Details 4) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | $134.20 |
Return of capital to parent | 74 |
Equity contributions from parent | 243.9 |
WPS Investments, LLC | ' |
Capital Transactions with Subsidiaries | ' |
Ownership interest (as a percent) | 86.13% |
ITF | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 0 |
Return of capital to parent | 0 |
Equity contributions from parent | 25.2 |
MERC | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 0 |
Return of capital to parent | 21 |
Equity contributions from parent | 3.5 |
MGU | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 0 |
Return of capital to parent | 12.5 |
Equity contributions from parent | 5 |
UPPCO | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 0 |
Return of capital to parent | 5.5 |
Equity contributions from parent | 0 |
UPPCO | WPS Investments, LLC | ' |
Capital Transactions with Subsidiaries | ' |
Ownership interest (as a percent) | 2.43% |
WPS | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 81.5 |
Return of capital to parent | 35 |
Equity contributions from parent | 200 |
WPS | WPS Investments, LLC | ' |
Capital Transactions with Subsidiaries | ' |
Ownership interest (as a percent) | 11.44% |
WPS Investments, LLC | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 52.7 |
Return of capital to parent | 0 |
Equity contributions from parent | $10.20 |
VARIABLE_INTEREST_ENTITIES_Det
VARIABLE INTEREST ENTITIES (Details) (USD $) | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2011 |
In Millions, unless otherwise specified | WPS | UPPCO | AMP Trillium LLC | AMP Trillium LLC | PTI CNG Fuels LLC | PTI CNG Fuels LLC | PTI CNG Fuels LLC |
Fox Energy Company LLC | MW | Other Venturer's Ownership | ITF | Other Venturer's Ownership | ITF | ITF | |
MW | |||||||
Variable Interest Entity | ' | ' | ' | ' | ' | ' | ' |
Contract termination fee related to tolling arrangement | $50 | ' | ' | ' | ' | ' | ' |
Contracted capacity under a power purchase agreement (in megawatts) | 500 | 17.5 | ' | ' | ' | ' | ' |
Obligations to purchase energy under power purchase agreement (in megawatts) | ' | 0 | ' | ' | ' | ' | ' |
Variable interest entity ownership interest acquired (as a percent) | ' | ' | 70.00% | 30.00% | 50.00% | ' | 50.00% |
Remaining percentage ownership interest acquired (as a percent) | ' | ' | ' | ' | ' | 50.00% | ' |
FAIR_VALUE_Details
FAIR VALUE (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Risk Management Assets | $213 | $190.70 |
Liabilities | ' | ' |
Risk Management Liabilities | 217.1 | 240.3 |
Level 1 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 80.9 | 70.3 |
Investment in Exchange Traded Funds | 13.4 | 11.8 |
Liabilities | ' | ' |
Risk Management Liabilities | 92.6 | 73.7 |
Contingent Consideration | 0 | ' |
Level 2 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 93.1 | 100.8 |
Investment in Exchange Traded Funds | 0 | 0 |
Liabilities | ' | ' |
Risk Management Liabilities | 101.6 | 142.1 |
Contingent Consideration | 0 | ' |
Level 3 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 39 | 19.6 |
Investment in Exchange Traded Funds | 0 | 0 |
Liabilities | ' | ' |
Risk Management Liabilities | 22.9 | 24.5 |
Total, Fair value | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 213 | 190.7 |
Investment in Exchange Traded Funds | 13.4 | 11.8 |
Liabilities | ' | ' |
Risk Management Liabilities | 217.1 | 240.3 |
Contingent Consideration | 7.7 | ' |
Utility Segments | Natural gas contracts | Level 1 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 0.9 | 0.3 |
Liabilities | ' | ' |
Risk Management Liabilities | 0.8 | 1.1 |
Utility Segments | Natural gas contracts | Level 2 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 1.8 | 3.1 |
Liabilities | ' | ' |
Risk Management Liabilities | 5.2 | 14.1 |
Utility Segments | Natural gas contracts | Level 3 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 0 | 0 |
Liabilities | ' | ' |
Risk Management Liabilities | 0 | 0 |
Utility Segments | Natural gas contracts | Total, Fair value | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 2.7 | 3.4 |
Liabilities | ' | ' |
Risk Management Liabilities | 6 | 15.2 |
Utility Segments | FTRs | Level 1 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 0 | 0 |
Liabilities | ' | ' |
Risk Management Liabilities | 0 | 0 |
Utility Segments | FTRs | Level 2 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 0 | 0 |
Liabilities | ' | ' |
Risk Management Liabilities | 0 | 0 |
Utility Segments | FTRs | Level 3 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 3.4 | 2.1 |
Liabilities | ' | ' |
Risk Management Liabilities | 0.4 | 0.1 |
Utility Segments | FTRs | Total, Fair value | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 3.4 | 2.1 |
Liabilities | ' | ' |
Risk Management Liabilities | 0.4 | 0.1 |
Utility Segments | Petroleum product contracts | Level 1 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | ' | 0.2 |
Liabilities | ' | ' |
Risk Management Liabilities | 0.2 | ' |
Utility Segments | Petroleum product contracts | Level 2 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | ' | 0 |
Liabilities | ' | ' |
Risk Management Liabilities | 0 | ' |
Utility Segments | Petroleum product contracts | Level 3 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | ' | 0 |
Liabilities | ' | ' |
Risk Management Liabilities | 0 | ' |
Utility Segments | Petroleum product contracts | Total, Fair value | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | ' | 0.2 |
Liabilities | ' | ' |
Risk Management Liabilities | 0.2 | ' |
Utility Segments | Coal contracts | Level 1 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 0 | 0 |
Liabilities | ' | ' |
Risk Management Liabilities | 0 | 0 |
Utility Segments | Coal contracts | Level 2 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 0 | 0 |
Liabilities | ' | ' |
Risk Management Liabilities | 0 | 0 |
Utility Segments | Coal contracts | Level 3 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 1.5 | 2.5 |
Liabilities | ' | ' |
Risk Management Liabilities | 2.7 | 9 |
Utility Segments | Coal contracts | Total, Fair value | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 1.5 | 2.5 |
Liabilities | ' | ' |
Risk Management Liabilities | 2.7 | 9 |
Nonregulated Segments | Natural gas contracts | Level 1 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 9.9 | 21.4 |
Liabilities | ' | ' |
Risk Management Liabilities | 16 | 17.7 |
Nonregulated Segments | Natural gas contracts | Level 2 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 42.3 | 36.4 |
Liabilities | ' | ' |
Risk Management Liabilities | 26.5 | 36.9 |
Nonregulated Segments | Natural gas contracts | Level 3 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 21.3 | 5.4 |
Liabilities | ' | ' |
Risk Management Liabilities | 9.7 | 1.5 |
Nonregulated Segments | Natural gas contracts | Total, Fair value | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 73.5 | 63.2 |
Liabilities | ' | ' |
Risk Management Liabilities | 52.2 | 56.1 |
Nonregulated Segments | Electric contracts | Level 1 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 70.1 | 48.4 |
Liabilities | ' | ' |
Risk Management Liabilities | 75.6 | 54.9 |
Nonregulated Segments | Electric contracts | Level 2 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 49 | 61.3 |
Liabilities | ' | ' |
Risk Management Liabilities | 69.9 | 91.1 |
Nonregulated Segments | Electric contracts | Level 3 | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 12.8 | 9.6 |
Liabilities | ' | ' |
Risk Management Liabilities | 10.1 | 13.9 |
Nonregulated Segments | Electric contracts | Total, Fair value | Fair value measurements on a recurring basis | ' | ' |
Assets | ' | ' |
Risk Management Assets | 131.9 | 119.3 |
Liabilities | ' | ' |
Risk Management Liabilities | $155.60 | $159.90 |
FAIR_VALUE_Details_2
FAIR VALUE (Details 2) (Nonregulated Segments, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Natural gas contracts | ' | ' | ' | ' |
Transfers between the levels of the fair value hierarchy | ' | ' | ' | ' |
Transfers into Level 1 from Level 3 | $0 | $0 | $0 | $0 |
Transfers into Level 2 from Level 3 | 0.3 | 0.3 | 0.3 | 1.7 |
Transfers into Level 3 from Level 2 | 2.5 | 0.4 | 4 | 3.2 |
Transfers into Level 1 from Level 2 | 0 | 0 | 0 | 0 |
Transfers into Level 2 from Level 1 | 0 | 0 | 0 | 0 |
Transfers into Level 3 from Level 1 | 0 | 0 | 0 | 0 |
Electric contracts | ' | ' | ' | ' |
Transfers between the levels of the fair value hierarchy | ' | ' | ' | ' |
Transfers into Level 1 from Level 3 | 0 | 0 | 0 | 0 |
Transfers into Level 2 from Level 3 | -0.8 | -1.9 | 4.6 | -5.8 |
Transfers into Level 3 from Level 2 | 0 | 1 | 6.2 | -7.8 |
Transfers into Level 1 from Level 2 | 0 | 0 | 0 | 0 |
Transfers into Level 2 from Level 1 | 0 | 0 | 0 | 0 |
Transfers into Level 3 from Level 1 | ($0.20) | $0 | ($0.20) | $0 |
FAIR_VALUE_Details_3
FAIR VALUE (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Level 3 | Level 3 | Utility Segments | Utility Segments | Utility Segments | Utility Segments | Utility Segments | Utility Segments | Utility Segments | Utility Segments | Utility Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | Nonregulated Segments | ||
Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | |||
Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | |||||
FTRs | FTRs | FTRs | Coal contracts | Coal contracts | Coal contracts | Coal contracts | Natural gas contracts | Natural gas contracts | Contingent consideration | Market-based | Minimum | Maximum | Maximum | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | |||||
Weighted Average | Minimum | Maximum | Monte Carlo Analysis | Contingent consideration | Monte Carlo Analysis | Minimum | Maximum | Market-based | Minimum | Maximum | |||||||||||||||||
Market-based | Market-based | Market-based | Contingent consideration | Contingent consideration | Market-based | Market-based | Market-based | Market-based | |||||||||||||||||||
Significant internally-developed unobservable inputs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk Management Assets | $213 | $190.70 | $39 | $19.60 | $3.40 | $2.10 | ' | $1.50 | $2.50 | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | $21.30 | $5.40 | ' | ' | $12.80 | $9.60 | ' | ' | ' |
Risk Management Liabilities | 217.1 | 240.3 | 22.9 | 24.5 | 0.4 | 0.1 | ' | 2.7 | 9 | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | 9.7 | 1.5 | ' | ' | 10.1 | 13.9 | ' | ' | ' |
Contingent Consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.70 | ' | ' | $8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Growth rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -32.00% | ' | 157.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward market prices | ' | ' | ' | ' | ' | ' | 180.59 | ' | ' | 12.21 | 14.63 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2.36 | 8.17 | ' | ' | ' | -7.15 | 9.25 |
Probability of default (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.60% | 51.00% | ' | ' | 26.00% | ' | ' |
Counterparty default time period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option volatilities (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.30% | 118.00% |
Monthly curve shaping (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -37.50% | 25.60% |
FAIR_VALUE_Details_4
FAIR VALUE (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 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 | $5,700,000 | ($13,400,000) | ($4,900,000) | ($7,900,000) |
Net realized and unrealized (losses) gains included in earnings | 7,400,000 | 4,300,000 | 10,600,000 | -1,900,000 |
Net unrealized (losses) gains recorded as regulatory assets or liabilities | -3,900,000 | 1,900,000 | 1,900,000 | 1,600,000 |
Purchases | 700,000 | ' | 6,500,000 | 7,000,000 |
Sales | ' | ' | -100,000 | -100,000 |
Settlements | -4,300,000 | -8,800,000 | -10,700,000 | -11,200,000 |
Net transfers into Level 3 | 2,300,000 | 1,400,000 | 10,000,000 | -4,600,000 |
Net transfers out of Level 3 | 500,000 | 1,600,000 | -4,900,000 | 4,100,000 |
Balance at the end of the period | 8,400,000 | -13,000,000 | 8,400,000 | -13,000,000 |
Net unrealized (losses) gains included in earnings related to instruments still held at the end of the period | 6,100,000 | 5,300,000 | 8,900,000 | -3,400,000 |
Nonregulated Segments | Natural gas contracts | ' | ' | ' | ' |
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 | 7,700,000 | 6,300,000 | 3,900,000 | 8,300,000 |
Net realized and unrealized (losses) gains included in earnings | 4,200,000 | 2,700,000 | 1,300,000 | 1,900,000 |
Net unrealized (losses) gains recorded as regulatory assets or liabilities | 0 | 0 | 0 | 0 |
Purchases | 0 | ' | 7,000,000 | 0 |
Sales | ' | ' | 0 | 0 |
Settlements | -2,500,000 | -6,700,000 | -4,300,000 | -9,300,000 |
Net transfers into Level 3 | 2,500,000 | 400,000 | 4,000,000 | 3,200,000 |
Net transfers out of Level 3 | -300,000 | -300,000 | -300,000 | -1,700,000 |
Balance at the end of the period | 11,600,000 | 2,400,000 | 11,600,000 | 2,400,000 |
Net unrealized (losses) gains included in earnings related to instruments still held at the end of the period | 4,200,000 | 2,700,000 | 1,300,000 | 1,900,000 |
Nonregulated Segments | Electric contracts | ' | ' | ' | ' |
Changes in the fair value of items measured on a recurring basis and categorized as Level 3 measurements | ' | ' | ' | ' |
Net unrealized loss related to discontinued operations | ' | 200,000 | ' | 600,000 |
Balance at the beginning of the period | 4,100,000 | -14,700,000 | -4,300,000 | -11,500,000 |
Net realized and unrealized (losses) gains included in earnings | 1,900,000 | 2,600,000 | 7,600,000 | -5,300,000 |
Net unrealized (losses) gains recorded as regulatory assets or liabilities | 0 | 0 | 0 | 0 |
Purchases | 700,000 | ' | 2,300,000 | 2,100,000 |
Sales | ' | ' | 0 | 0 |
Settlements | -4,600,000 | -100,000 | -4,300,000 | 7,400,000 |
Net transfers into Level 3 | -200,000 | 1,000,000 | 6,000,000 | -7,800,000 |
Net transfers out of Level 3 | 800,000 | 1,900,000 | -4,600,000 | 5,800,000 |
Balance at the end of the period | 2,700,000 | -9,300,000 | 2,700,000 | -9,300,000 |
Net unrealized (losses) gains included in earnings related to instruments still held at the end of the period | 1,900,000 | 2,600,000 | 7,600,000 | -5,300,000 |
Nonregulated Segments | Contingent consideration | ' | ' | ' | ' |
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 | -7,700,000 | ' | 0 | ' |
Net realized and unrealized (losses) gains included in earnings | 0 | ' | 0 | ' |
Net unrealized (losses) gains recorded as regulatory assets or liabilities | 0 | ' | 0 | ' |
Purchases | 0 | ' | -7,700,000 | ' |
Sales | ' | ' | 0 | ' |
Settlements | 0 | ' | 0 | ' |
Net transfers into Level 3 | 0 | ' | 0 | ' |
Net transfers out of Level 3 | 0 | ' | 0 | ' |
Balance at the end of the period | -7,700,000 | ' | -7,700,000 | ' |
Net unrealized (losses) gains included in earnings related to instruments still held at the end of the period | 0 | ' | 0 | ' |
Utility Segments | ' | ' | ' | ' |
Changes in the fair value of items measured on a recurring basis and categorized as Level 3 measurements | ' | ' | ' | ' |
Unrealized gain (loss) included in income | 0 | 0 | 0 | 0 |
Utility Segments | 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 | 3,900,000 | 4,800,000 | 2,000,000 | 2,200,000 |
Net realized and unrealized (losses) gains included in earnings | 1,300,000 | -1,000,000 | 1,700,000 | 1,500,000 |
Net unrealized (losses) gains recorded as regulatory assets or liabilities | 600,000 | -200,000 | -300,000 | 100,000 |
Purchases | 0 | ' | 4,900,000 | 4,900,000 |
Sales | ' | ' | -100,000 | -100,000 |
Settlements | -2,800,000 | -400,000 | -5,200,000 | -5,400,000 |
Net transfers into Level 3 | 0 | 0 | 0 | 0 |
Net transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance at the end of the period | 3,000,000 | 3,200,000 | 3,000,000 | 3,200,000 |
Net unrealized (losses) gains included in earnings related to instruments still held at the end of the period | 0 | 0 | 0 | 0 |
Utility Segments | Coal contracts | ' | ' | ' | ' |
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 | -2,300,000 | -9,800,000 | -6,500,000 | -6,900,000 |
Net realized and unrealized (losses) gains included in earnings | 0 | 0 | 0 | 0 |
Net unrealized (losses) gains recorded as regulatory assets or liabilities | -4,500,000 | 2,100,000 | 2,200,000 | 1,500,000 |
Purchases | 0 | ' | 0 | 0 |
Sales | ' | ' | 0 | 0 |
Settlements | 5,600,000 | -1,600,000 | 3,100,000 | -3,900,000 |
Net transfers into Level 3 | 0 | 0 | 0 | 0 |
Net transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance at the end of the period | -1,200,000 | -9,300,000 | -1,200,000 | -9,300,000 |
Net unrealized (losses) gains included in earnings related to instruments still held at the end of the period | $0 | $0 | $0 | $0 |
FAIR_VALUE_Details_5
FAIR VALUE (Details 5) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Carrying value and estimated fair value of financial instruments | ' | ' |
Long-term debt | $2,782.70 | $2,245.20 |
Preferred stock | 51.1 | 51.1 |
Carrying Amount | ' | ' |
Carrying value and estimated fair value of financial instruments | ' | ' |
Long-term debt | 2,782.70 | 2,245.20 |
Preferred stock | 51.1 | 51.1 |
Total, Fair value | ' | ' |
Carrying value and estimated fair value of financial instruments | ' | ' |
Long-term debt | 2,768.50 | 2,425.80 |
Preferred stock | $61.60 | $52.70 |
ADVERTISING_COSTS_Details
ADVERTISING COSTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Other Assets, Noncurrent [Abstract] | ' | ' | ' | ' | ' |
Capitalized direct-response advertising costs, net of accumulated amortization | $5.20 | ' | $5.20 | ' | $5.50 |
Period of amortization of direct-response advertising costs over estimated period of benefit | '2 years | ' | ' | ' | ' |
Amortization of direct-response advertising costs | 0.1 | 1 | 4.1 | 2.3 | ' |
Other advertising expense | $2.20 | $2.10 | $6.60 | $5.20 | ' |
REGULATORY_ENVIRONMENT_Details
REGULATORY ENVIRONMENT (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 16 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 | Mar. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2011 | Sep. 30, 2012 | Mar. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jan. 31, 2012 | Jan. 31, 2012 | Sep. 30, 2013 | Jul. 31, 2012 | Mar. 31, 2006 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 |
WPS | WPS | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Michigan Public Service Commission (MPSC) | Michigan Public Service Commission (MPSC) | Michigan Public Service Commission (MPSC) | Michigan Public Service Commission (MPSC) | Michigan Public Service Commission (MPSC) | Illinois Commerce Commission (ICC) | Illinois Commerce Commission (ICC) | Illinois Commerce Commission (ICC) | Illinois Commerce Commission (ICC) | Illinois Commerce Commission (ICC) | Illinois Commerce Commission (ICC) | Minnesota Public Utilities Commission (MPUC) | Minnesota Public Utilities Commission (MPUC) | Federal Energy Regulatory Commission (FERC) | Federal Energy Regulatory Commission (FERC) | Federal Energy Regulatory Commission (FERC) | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |
2014 Rates | 2014 Rates | 2013 Rates | Natural gas rate case | Natural gas rate case | Natural gas rate case | Natural gas rate case | Retail electric rate case | Retail electric rate case | Retail electric rate case | Retail electric rate case | MGU | Retail electric rate case | Retail electric rate case | Retail electric rate case | Retail electric rate case | 2012 Rates | 2012 Rates | Natural gas rate case | Natural gas rate case | Natural gas rate case | Natural gas rate case | Natural gas rate case | Natural gas rate case | Seams Elimination Charge Adjustment (SECA) | Settlement agreement | Settlement agreement | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Public Service Commission of Wisconsin (PSCW) | Michigan Public Service Commission (MPSC) | |||
Entity's original request | Regulatory authority staff recommendations | Rate order | 2014 Rates | 2014 Rates | 2013 Rates | 2012 Rates | 2014 Rates | 2014 Rates | 2013 Rates | 2012 Rates | 2014 Rates | 2012 Rates | 2012 Rates | 2012 Rates | NSG | PGL | 2013 Rates | 2013 Rates | 2012 Rates | 2012 Rates | 2014 Rates | 2011 Rates | Integrys Energy Services | Seams Elimination Charge Adjustment (SECA) | Seams Elimination Charge Adjustment (SECA) | 2014 Rates | Natural gas rate case | Retail electric rate case | Natural gas rate case | ||||
WPS | WPS | WPS | Entity's original request | Regulatory authority staff recommendations | Rate order | Rate order | Entity's original request | Regulatory authority staff recommendations | Rate order | Rate order | Entity's original request | Rate order | Rate order | Rate order | Rate order | Rate order | Rate order | Rate order | Entity's original request | Rate order | Integrys Energy Services | Integrys Energy Services | Entity's revised request | 2014 Rates | 2014 Rates | 2014 Rates | |||||||
WPS | WPS | WPS | WPS | WPS | WPS | WPS | WPS | UPPCO | UPPCO | UPPCO | UPPCO | NSG | PGL | NSG | PGL | MERC | MERC | WPS | Entity's revised request | Entity's revised request | Settlement agreement | ||||||||||||
WPS | WPS | MGU | |||||||||||||||||||||||||||||||
Regulatory Proceedings: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requested rate increase (decrease) | ' | ' | ' | ' | ' | $19 | ' | ' | ' | $71.10 | ' | ' | ' | ' | $7.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14.20 | ' | ' | ' | ' | ' | $14 | $60 | ' |
Requested return on common equity percent | ' | ' | 10.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.75% | ' | ' | ' | ' | 10.60% | ' | ' | ' |
Requested recovery for the Wisconsin retail allocation of environmental remediation capital and operating costs related to the Consent Decree | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.7 | ' | ' | ' |
Requested percent of capital structure composed of common equity | ' | ' | 51.11% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54.98% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.31% | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized rate increase (decrease) | ' | ' | ' | ' | ' | ' | ' | -3.4 | -7.2 | ' | ' | 28.5 | 8.1 | ' | ' | 4.2 | ' | ' | ' | ' | 6.6 | 57.2 | 1.9 | 57.8 | ' | 11 | ' | ' | ' | ' | ' | ' | ' |
Estimated fuel refund | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferral related to pension and other employee benefit costs | ' | ' | ' | ' | ' | ' | ' | 2.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized return on common equity percent | ' | ' | ' | ' | 10.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.20% | ' | ' | ' | ' | 9.28% | 9.28% | 9.45% | 9.45% | ' | 9.70% | ' | ' | ' | ' | ' | ' | ' |
Authorized percent of capital structure composed of common equity | ' | ' | ' | ' | 51.61% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54.90% | ' | ' | ' | ' | 50.32% | 50.43% | 50.00% | 49.00% | ' | 50.48% | ' | ' | ' | ' | ' | ' | ' |
Authorized recovery of income tax amounts previously expensed related to the Federal Health Care Reform Act | 5.9 | 5.9 | ' | ' | 5.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses related to electric decoupling | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reversal of expenses related to electric decoupling | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected recovery related to decoupling mechanisms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.7 | 14.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovery related to decoupling mechanisms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.8 | 6.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual cap for decoupling | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of price variance from the cost of fuel and purchased power included in rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reversal of disallowance of depreciation expense associated with the retirement of certain assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction to depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trial basis period for decoupling mechanism | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' |
Transition period when charges paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '16 months | ' | ' | ' | ' | ' | ' |
Seams elimination charge adjustment (SECA) billings paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.2 | ' | ' | ' | ' | ' | ' |
Receivable related to favorable settlement ruled by FERC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.8 | ' | ' | ' | ' |
Settlement agreement rate increase (decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.5 |
Annual percent cap on decoupling based on distribution revenues approved in the rate case | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Recommended rate increase (decrease) | ' | ' | ' | ' | ' | ' | 7.8 | ' | ' | ' | 9.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recommended return on common equity percent | ' | ' | ' | 10.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recommended percent of capital structure composed of common equity | ' | ' | ' | 50.14% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Return on common equity per settlement agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.25% |
Percent of capital structure composed of equity per settlement agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48.62% |
Lump sum payment received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.5 | ' | ' | ' | ' | ' |
Additional income recognized as a result of a settlement agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.7 | ' | ' | ' | ' |
Amount awarded as part of a settlement agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.50 | ' | ' | ' | ' |
SEGMENTS_OF_BUSINESS_Details
SEGMENTS OF BUSINESS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
segment | ||||
Segment Reporting Information | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 5 | ' |
External revenues | $1,129.70 | $927.70 | $3,923.90 | $3,015.20 |
Intersegment revenues | 0 | 0 | 0 | 0 |
Depreciation and amortization expense | 69.6 | 62.9 | 196 | 187.6 |
Earnings from equity method investments | 23.1 | 22.2 | 68.2 | 65.5 |
Miscellaneous income | 12.1 | 3.1 | 23.3 | 7.2 |
Interest expense | 33.1 | 29.9 | 91 | 90 |
Provision (benefit) for income taxes | 18 | 29.6 | 124.3 | 106.6 |
Net income (loss) from continuing operations | 39.4 | 74.3 | 217.7 | 224.8 |
Discontinued operations, net of tax | -0.6 | -8 | 4.7 | -9.2 |
Preferred stock dividends of subsidiary | -0.7 | -0.7 | -2.3 | -2.3 |
Noncontrolling interest in subsidiaries | 0 | 0.1 | 0.1 | 0.1 |
Net income attributed to common shareholders | 38.1 | 65.7 | 220.2 | 213.4 |
ATC | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Equity method investment, ownership interest (as a percent) | 34.00% | ' | 34.00% | ' |
Reconciling Eliminations | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
External revenues | 0 | 0 | 0 | 0 |
Intersegment revenues | -4.9 | -4.9 | -10.6 | -10.2 |
Depreciation and amortization expense | -0.1 | -0.1 | -0.4 | -0.4 |
Earnings from equity method investments | 0 | 0 | 0 | 0 |
Miscellaneous income | -3 | -3.9 | -10.1 | -12.1 |
Interest expense | -3 | -3.9 | -10.1 | -12.1 |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) from continuing operations | 0 | 0 | 0 | 0 |
Discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Preferred stock dividends of subsidiary | 0 | 0 | 0 | 0 |
Noncontrolling interest in subsidiaries | ' | 0 | 0 | 0 |
Net income attributed to common shareholders | 0 | 0 | 0 | 0 |
Regulated Operations | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
External revenues | 606.9 | 582.3 | 2,425.10 | 2,116.90 |
Intersegment revenues | 4.3 | 4.5 | 8.7 | 8.1 |
Depreciation and amortization expense | 61.3 | 55.5 | 173.1 | 164.7 |
Earnings from equity method investments | 22.3 | 21.7 | 66 | 63.8 |
Miscellaneous income | 3.2 | 1 | 7.4 | 2.1 |
Interest expense | 21.5 | 20.6 | 63.7 | 62.2 |
Provision (benefit) for income taxes | 14.2 | 16.3 | 125.3 | 99 |
Net income (loss) from continuing operations | 35.1 | 47.3 | 207.2 | 187.9 |
Discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Preferred stock dividends of subsidiary | -0.7 | -0.7 | -2.3 | -2.3 |
Noncontrolling interest in subsidiaries | ' | 0 | 0 | 0 |
Net income attributed to common shareholders | 34.4 | 46.6 | 204.9 | 185.6 |
Regulated Operations | Natural Gas Utility | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
External revenues | 253 | 215.5 | 1,412.40 | 1,131.30 |
Intersegment revenues | 4.2 | 4.5 | 8.6 | 8.1 |
Depreciation and amortization expense | 35.6 | 33.2 | 100.1 | 98.3 |
Earnings from equity method investments | 0 | 0 | 0 | 0 |
Miscellaneous income | 0.4 | 0.1 | 0.8 | 0.6 |
Interest expense | 12.7 | 11.7 | 37.3 | 35.1 |
Provision (benefit) for income taxes | -19.5 | -11.5 | 43.1 | 32.6 |
Net income (loss) from continuing operations | -19.5 | -13.9 | 72 | 53.8 |
Discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Preferred stock dividends of subsidiary | -0.1 | -0.1 | -0.4 | -0.4 |
Noncontrolling interest in subsidiaries | ' | 0 | 0 | 0 |
Net income attributed to common shareholders | -19.6 | -14 | 71.6 | 53.4 |
Regulated Operations | Electric Utility | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
External revenues | 353.9 | 366.8 | 1,012.70 | 985.6 |
Intersegment revenues | 0.1 | 0 | 0.1 | 0 |
Depreciation and amortization expense | 25.7 | 22.3 | 73 | 66.4 |
Earnings from equity method investments | 0 | 0 | 0 | 0 |
Miscellaneous income | 2.8 | 0.9 | 6.6 | 1.5 |
Interest expense | 8.8 | 8.9 | 26.4 | 27.1 |
Provision (benefit) for income taxes | 25.1 | 19.5 | 56.9 | 42.4 |
Net income (loss) from continuing operations | 40.9 | 47.8 | 94.5 | 94.3 |
Discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Preferred stock dividends of subsidiary | -0.6 | -0.6 | -1.9 | -1.9 |
Noncontrolling interest in subsidiaries | ' | 0 | 0 | 0 |
Net income attributed to common shareholders | 40.3 | 47.2 | 92.6 | 92.4 |
Regulated Operations | Electric Transmission Investment | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
External revenues | 0 | 0 | 0 | 0 |
Intersegment revenues | 0 | 0 | 0 | 0 |
Depreciation and amortization expense | 0 | 0 | 0 | 0 |
Earnings from equity method investments | 22.3 | 21.7 | 66 | 63.8 |
Miscellaneous income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Provision (benefit) for income taxes | 8.6 | 8.3 | 25.3 | 24 |
Net income (loss) from continuing operations | 13.7 | 13.4 | 40.7 | 39.8 |
Discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Preferred stock dividends of subsidiary | 0 | 0 | 0 | 0 |
Noncontrolling interest in subsidiaries | ' | 0 | 0 | 0 |
Net income attributed to common shareholders | 13.7 | 13.4 | 40.7 | 39.8 |
Nonutility and Nonregulated Operations | Integrys Energy Services | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
External revenues | 512.7 | 335.5 | 1,470.70 | 873.7 |
Intersegment revenues | 0.3 | 0.1 | 0.9 | 0.6 |
Depreciation and amortization expense | 2.9 | 2.7 | 8.4 | 7.4 |
Earnings from equity method investments | 0.5 | 0.5 | 1.2 | 1.2 |
Miscellaneous income | 6.2 | 0.3 | 8 | 0.8 |
Interest expense | 0.5 | 0.5 | 1.5 | 1.5 |
Provision (benefit) for income taxes | 6.6 | 16.1 | 11.7 | 23.6 |
Net income (loss) from continuing operations | 12.3 | 32.2 | 22.5 | 46 |
Discontinued operations, net of tax | -0.6 | -8 | -1.2 | -11 |
Preferred stock dividends of subsidiary | 0 | 0 | 0 | 0 |
Noncontrolling interest in subsidiaries | ' | 0 | 0 | 0 |
Net income attributed to common shareholders | 11.7 | 24.2 | 21.3 | 35 |
Nonutility and Nonregulated Operations | Holding Company and Other | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
External revenues | 10.1 | 9.9 | 28.1 | 24.6 |
Intersegment revenues | 0.3 | 0.3 | 1 | 1.5 |
Depreciation and amortization expense | 5.5 | 4.8 | 14.9 | 15.9 |
Earnings from equity method investments | 0.3 | 0 | 1 | 0.5 |
Miscellaneous income | 5.7 | 5.7 | 18 | 16.4 |
Interest expense | 14.1 | 12.7 | 35.9 | 38.4 |
Provision (benefit) for income taxes | -2.8 | -2.8 | -12.7 | -16 |
Net income (loss) from continuing operations | -8 | -5.2 | -12 | -9.1 |
Discontinued operations, net of tax | 0 | 0 | 5.9 | 1.8 |
Preferred stock dividends of subsidiary | 0 | 0 | 0 | 0 |
Noncontrolling interest in subsidiaries | ' | 0.1 | 0.1 | 0.1 |
Net income attributed to common shareholders | ($8) | ($5.10) | ($6) | ($7.20) |