DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 6 Months Ended | |
Jun. 30, 2014 | Aug. 05, 2014 | |
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-Jun-14 | ' |
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 | ' | 79,963,091 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Utility revenues | $806.10 | $694.40 | $2,422.80 | $1,818.20 |
Nonregulated revenues | 626.5 | 421.6 | 1,934.70 | 976 |
Total revenues | 1,432.60 | 1,116 | 4,357.50 | 2,794.20 |
Utility cost of fuel, natural gas, and purchased power | 383 | 296 | 1,343.20 | 861.1 |
Nonregulated cost of sales | 576.5 | 447.9 | 1,824 | 884.7 |
Operating and maintenance expense | 334.3 | 288.7 | 698.9 | 583.8 |
Goodwill impairment loss | 6.7 | 0 | 6.7 | 0 |
Merger transaction costs | 5.9 | 0 | 5.9 | 0 |
Transaction costs related to pending sale of UPPCO | 0.9 | 0 | 0.9 | 0 |
Transaction costs related to pending sale of IES retail energy business | 0.8 | 0 | 0.8 | 0 |
Depreciation and amortization expense | 72.9 | 65.5 | 144.2 | 126.4 |
Taxes other than income taxes | 25.5 | 24.8 | 53.6 | 52 |
Operating income (loss) | 26.1 | -6.9 | 279.3 | 286.2 |
Earnings from equity method investments | 23.9 | 22.8 | 46.8 | 45.1 |
Miscellaneous income | 5 | 5.5 | 11 | 11.2 |
Interest expense | 38.7 | 28.6 | 77.8 | 57.9 |
Other expense | -9.8 | -0.3 | -20 | -1.6 |
Income (loss) before taxes | 16.3 | -7.2 | 259.3 | 284.6 |
Provision (benefit) for income taxes | 8.2 | -3.3 | 98 | 106.3 |
Net income (loss) from continuing operations | 8.1 | -3.9 | 161.3 | 178.3 |
Discontinued operations, net of tax | -0.1 | -0.8 | -0.2 | 5.3 |
Net income (loss) | 8 | -4.7 | 161.1 | 183.6 |
Preferred stock dividends of subsidiary | -0.8 | -0.8 | -1.6 | -1.6 |
Noncontrolling interest in subsidiaries | 0 | 0.1 | 0.1 | 0.1 |
Net income (loss) attributed to common shareholders | $7.20 | ($5.40) | $159.60 | $182.10 |
Average shares of common stock | ' | ' | ' | ' |
Basic (in shares) | 80.2 | 79.4 | 80.2 | 79 |
Diluted (in shares) | 80.5 | 79.4 | 80.5 | 79.7 |
Earnings (loss) per common share (basic) | ' | ' | ' | ' |
Net income (loss) from continuing operations (in dollars per share) | $0.09 | ($0.06) | $1.99 | $2.24 |
Discontinued operations, net of tax (in dollars per share) | $0 | ($0.01) | $0 | $0.07 |
Earnings (loss) per common share (basic) (in dollars per share) | $0.09 | ($0.07) | $1.99 | $2.31 |
Earnings (loss) per common share (diluted) | ' | ' | ' | ' |
Net income (loss) from continuing operations (in dollars per share) | $0.09 | ($0.06) | $1.98 | $2.22 |
Discontinued operations, net of tax (in dollars per share) | $0 | ($0.01) | $0 | $0.07 |
Earnings (loss) per common share (diluted) (in dollars per share) | $0.09 | ($0.07) | $1.98 | $2.29 |
Dividends per common share declared (in dollars per share) | $0.68 | $0.68 | $1.36 | $1.36 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $8 | ($4.70) | $161.10 | $183.60 |
Cash flow hedges | ' | ' | ' | ' |
Unrealized net gains arising during period, net of tax of an insignificant amount for all periods presented | 0 | 0.6 | 0 | 0.7 |
Reclassification of net losses (gains) to net income, net of tax of $ – million, $0.9 million, $0.9 million, and $1.5 million, respectively | 0.2 | 1.5 | -0.4 | 2.4 |
Cash flow hedges, net | 0.2 | 2.1 | -0.4 | 3.1 |
Defined benefit plans | ' | ' | ' | ' |
Pension and other postretirement benefit costs arising during period, net of tax of an insignificant amount for all periods presented | 0 | 0 | -0.1 | 0 |
Amortization of pension and other postretirement benefit costs included in net periodic benefit cost, net of tax of $0.2 million, $0.4 million, $0.5 million, and $0.8 million, respectively | 0.5 | 0.6 | 0.8 | 1.2 |
Defined benefit plans, net | 0.5 | 0.6 | 0.7 | 1.2 |
Other comprehensive income, net of tax | 0.7 | 2.7 | 0.3 | 4.3 |
Comprehensive income (loss) | 8.7 | -2 | 161.4 | 187.9 |
Preferred stock dividends of subsidiary | -0.8 | -0.8 | -1.6 | -1.6 |
Noncontrolling interest in subsidiaries | 0 | 0.1 | 0.1 | 0.1 |
Comprehensive income (loss) attributed to common shareholders | $7.90 | ($2.70) | $159.90 | $186.40 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Reclassification of net losses (gains) to net income, tax | $0 | $0.90 | $0.90 | $1.50 |
Amortization of pension and other postretirement benefit costs included in net periodic benefit cost, tax | $0.20 | $0.40 | $0.50 | $0.80 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $45 | $22.30 |
Accounts receivable and accrued unbilled revenues, net of reserves of $66.6 and $49.4, respectively | 925.6 | 1,037 |
Inventories | 223.8 | 253.1 |
Assets from risk management activities | 253.4 | 239.5 |
Regulatory assets | 119.4 | 127.4 |
Assets held for sale | 290.4 | 272.6 |
Deferred income taxes | 35.9 | 31.4 |
Prepaid taxes | 72.7 | 146.9 |
Other current assets | 72.2 | 87.4 |
Current assets | 2,038.40 | 2,217.60 |
Property, plant, and equipment, net of accumulated depreciation of $3,325.0 and $3,236.9, respectively | 6,444.50 | 6,216.70 |
Regulatory assets | 1,337.50 | 1,361.40 |
Assets from risk management activities | 88.3 | 75.4 |
Equity method investments | 559.6 | 540.9 |
Goodwill | 655.4 | 662.1 |
Other long-term assets | 250.7 | 169.4 |
Total assets | 11,374.40 | 11,243.50 |
Liabilities and Equity | ' | ' |
Short-term debt | 420.7 | 326 |
Current portion of long-term debt | 0 | 100 |
Accounts payable | 599.2 | 604.8 |
Liabilities from risk management activities | 167.9 | 163.8 |
Accrued taxes | 53.4 | 80.9 |
Regulatory liabilities | 126 | 101.1 |
Liabilities held for sale | 43 | 49.1 |
Other current liabilities | 262.1 | 228.8 |
Current liabilities | 1,672.30 | 1,654.50 |
Long-term debt | 2,956.20 | 2,956.20 |
Deferred income taxes | 1,482.80 | 1,390.30 |
Deferred investment tax credits | 60 | 57.6 |
Regulatory liabilities | 437.3 | 383.7 |
Environmental remediation liabilities | 576.3 | 600 |
Pension and other postretirement benefit obligations | 118.2 | 200.8 |
Liabilities from risk management activities | 61.1 | 62.8 |
Asset retirement obligations | 503.4 | 491 |
Other long-term liabilities | 147.3 | 133.2 |
Long-term liabilities | 6,342.60 | 6,275.60 |
Commitments and contingencies | ' | ' |
Common stock – $1 par value; 200,000,000 shares authorized; 79,963,091 shares issued; 79,529,584 shares outstanding | 80 | 79.9 |
Additional paid-in capital | 2,654.70 | 2,660.50 |
Retained earnings | 617.6 | 567.1 |
Accumulated other comprehensive loss | -22.9 | -23.2 |
Shares in deferred compensation trust | -21.1 | -23 |
Total common shareholders’ equity | 3,308.30 | 3,261.30 |
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 | 0.1 | 1 |
Total liabilities and equity | $11,374.40 | $11,243.50 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable and accrued unbilled revenues, reserves (in dollars) | $66.60 | $49.40 |
Property, plant, and equipment, accumulated depreciation (in dollars) | $3,325 | $3,236.90 |
Common stock, par value (in dollars per share) | $1 | ' |
Common stock, shares authorized | 200,000,000 | ' |
Common stock, shares issued | 79,963,091 | 79,919,176 |
Common stock, shares outstanding | 79,529,584 | 79,445,380 |
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 $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating Activities | ' | ' |
Net income | $161.10 | $183.60 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Discontinued operations, net of tax | 0.2 | -5.3 |
Goodwill impairment loss | -6.7 | 0 |
Depreciation and amortization expense | 144.2 | 126.4 |
Recoveries and refunds of regulatory assets and liabilities | 59.1 | 28.8 |
Net unrealized (gains) losses on energy contracts | -24.8 | 0.3 |
Bad debt expense | 30.8 | 14.4 |
Pension and other postretirement expense | 11.9 | 31.8 |
Pension and other postretirement contributions | -69.5 | -64.2 |
Deferred income taxes and investment tax credits | 83.1 | 144 |
Equity income, net of dividends | -9.5 | -9.6 |
Termination of tolling agreement with Fox Energy Company LLC | 0 | -50 |
Other | 12.8 | 13.3 |
Changes in working capital | ' | ' |
Collateral on deposit | -1.5 | -19.6 |
Accounts receivable and accrued unbilled revenues | 89 | 19.8 |
Inventories | 29.7 | 69.8 |
Other current assets | 41 | -54 |
Accounts payable | -16.2 | 41.3 |
Temporary LIFO liquidation credit | 57.9 | 33.4 |
Other current liabilities | -20 | -56.2 |
Net cash provided by operating activities | 586 | 448 |
Investing Activities | ' | ' |
Capital expenditures | -348.6 | -300.1 |
Capital contributions to equity method investments | -10.2 | -6.8 |
Rabbi trust funding related to potential change in control | -65 | 0 |
Acquisition of Fox Energy Company LLC | 0 | -391.6 |
Acquisitions at IES | 0 | 12.4 |
Grant received related to Crane Creek wind project | 0 | 69 |
Other | -6 | -2.5 |
Net cash used for investing activities | -429.8 | -644.4 |
Financing Activities | ' | ' |
Short-term debt, net | 94.7 | 150.8 |
Borrowing on term credit facility | 0 | 200 |
Issuance of long-term debt | 0 | 104 |
Repayment of long-term debt | -100 | -187 |
Proceeds from stock option exercises | 11.9 | 31.2 |
Shares purchased for stock-based compensation | -28.7 | -2 |
Payment of dividends | ' | ' |
Preferred stock of subsidiary | -1.6 | -1.6 |
Common stock | -108.2 | -100.7 |
Other | -8.2 | -7.4 |
Net cash (used for) provided by financing activities | -140.1 | 187.3 |
Change in cash and cash equivalents - continuing operations | 16.1 | -9.1 |
Change in cash and cash equivalents - discontinued operations | ' | ' |
Net cash provided by operating activities | 6.6 | 0.3 |
Net cash provided by investing activities | 0 | 1.6 |
Net change in cash and cash equivalents | 22.7 | -7.2 |
Cash and cash equivalents at beginning of period | 22.3 | 27.4 |
Cash and cash equivalents at end of period | 45 | 20.2 |
Supplemental Cash Flow Information | ' | ' |
Cash paid for interest | 74.5 | 57.1 |
Cash received for income taxes | ($59.20) | ($1.30) |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
Basis of Presentation | |
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, 2013. 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. | |
Reclassification | |
Assets and liabilities associated with the pending sale of UPPCO were reclassified as held for sale on our December 31, 2013, balance sheet to be consistent with the current period presentation. See Note 4, Dispositions, for more information on the pending sale of UPPCO. |
PROPOSED_MERGER_WITH_WISCONSIN
PROPOSED MERGER WITH WISCONSIN ENERGY CORPORATION | 6 Months Ended |
Jun. 30, 2014 | |
Business Combinations [Abstract] | ' |
PROPOSED MERGER WITH WISCONSIN ENERGY CORPORATION | ' |
Proposed Merger with Wisconsin Energy Corporation | |
In June 2014, we entered into an Agreement and Plan of Merger (Agreement) with Wisconsin Energy Corporation (Wisconsin Energy). Under this Agreement, upon the close of the transaction our shareholders will receive 1.128 shares of Wisconsin Energy common stock and $18.58 in cash for each share of our common stock then owned. In addition, under the Agreement all of our unvested stock-based compensation awards will fully vest upon the close of the transaction and will be paid out in cash to award recipients. Upon closing of the transaction, Integrys Energy Group shareholders will own approximately 28% of the combined company, and Wisconsin Energy shareholders will own approximately 72%. | |
The combined entity will be named WEC Energy Group, Inc. and will serve more than 4.3 million total natural gas and electric customers across Wisconsin, Illinois, Michigan, and Minnesota. | |
This transaction was approved unanimously by the Boards of Directors of both companies. It is subject to approvals from the shareholders of both companies, the FERC, Federal Communications Commission, PSCW, ICC, MPSC, and MPUC. The transaction also is subject to the notification and clearance and reporting requirements under the Hart-Scott-Rodino Act and other customary closing conditions. We expect the transaction to close in the summer of 2015. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
ACQUISITIONS | ' | ||||
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, which is expected to approximate $14 million. We anticipate closing on this transaction by the end of the first quarter of 2015. It will not be material to us. | |||||
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 being 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 9, 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. The amount is being amortized over a nine-year period that began on January 1, 2014. | |||||
WPS received regulatory approval to defer incremental costs incurred in 2013 associated with the purchase of the facility. These costs are included in WPS's 2015 proposed retail electric rate increase. See Note 22, Regulatory Environment, for more information. WPS's rate order effective January 1, 2014, included the costs of operating the Fox Energy Center. | |||||
Pro forma adjustments to our revenues and earnings prior to the date of acquisition would not be meaningful or material. Prior to the acquisition, the Fox Energy Center was a nonregulated plant and sold all of its output to third parties, with most of the output purchased by WPS. The plant is now part of WPS's regulated fleet, used to serve its customers. |
DISPOSITIONS
DISPOSITIONS | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
DISPOSITIONS | ' | ||||||||
Dispositions | |||||||||
Dispositions | |||||||||
IES Segment – Pending Sale of IES Retail Energy Business | |||||||||
In July 2014, we entered into an agreement to sell the retail energy business portion of IES to Exelon Generation Company, LLC (Exelon) for $60.0 million plus adjusted net working capital at the time of the close. For informational purposes, in the sale agreement the adjusted net working capital balance was calculated at approximately $183 million as of May 31, 2014. Any accounting gain or loss on the sale will be dependent on the fair value of derivative assets and liabilities at the time of sale. | |||||||||
The transaction is conditioned on approval by FERC and is subject to the notification and reporting requirements under the Hart-Scott-Rodino Act. We expect the sale to be completed in the fourth quarter of 2014 or in the first quarter of 2015. After the close of the sale, we will provide certain transition services at cost to Exelon for up to 15 months. | |||||||||
The retail energy business consists of mostly financial assets and liabilities; therefore, it does not qualify as held for sale under the applicable accounting guidance. | |||||||||
The June 2014 announcement of the potential sale triggered an interim goodwill impairment test. See Note 9, Goodwill and Other Intangible Assets, for more information. | |||||||||
Electric Utility Segment – Pending Sale of UPPCO | |||||||||
In January 2014, we reached a definitive agreement to sell all of the stock of UPPCO to Balfour Beatty Infrastructure Partners LP (BBIP) for approximately $298.8 million. This price is subject to adjustments for various items, including working capital, pension contributions, and the reimbursement of any capital expenditures made by UPPCO in 2014 prior to the sale. BBIP approached us in early 2013 about purchasing UPPCO, and we came to an agreement in January 2014 that was approved by our Board of Directors. The transaction has been approved by all applicable state regulatory commissions but is still subject to approval by the FERC. This sale is expected to close in the third quarter of 2014. Following the sale, we will provide certain administrative and operational services to UPPCO during a transition period of 18 to 30 months. | |||||||||
The pending sale of UPPCO does not meet the requirements under the applicable accounting guidance to qualify as discontinued operations as WPS will have significant continuing cash flows related to certain power purchase transactions that will continue as an external transaction with UPPCO after the sale. | |||||||||
The following table shows the carrying values of the major classes of assets and liabilities related to UPPCO classified as held for sale on the balance sheets: | |||||||||
(Millions) | June 30, 2014 | 31-Dec-13 | |||||||
Current assets | $ | 24.6 | $ | 26.5 | |||||
Property, plant, and equipment, net of accumulated depreciation of $90.5 and $88.9, respectively | 193.3 | 193.8 | |||||||
Other long-term assets | 71.8 | 51.6 | |||||||
Total assets | $ | 289.7 | $ | 271.9 | |||||
Current liabilities | $ | 13.8 | $ | 16.7 | |||||
Long-term liabilities | 29.2 | 32.4 | |||||||
Total liabilities | $ | 43 | $ | 49.1 | |||||
In addition to the amounts above, intercompany payables of $2.2 million and $1.6 million at June 30, 2014, and December 31, 2013, respectively, will be included in the sale. These balances were eliminated during consolidation and relate to certain power purchase transactions that will continue as an external transaction with WPS after the sale, as discussed above. | |||||||||
Discontinued Operations | |||||||||
Holding Company and Other Segment | |||||||||
During the three months ended June 30, 2013, we recorded $0.1 million of after-tax losses in discontinued operations at the holding company and other segment. During the six months ended June 30, 2013, we recorded $5.9 million of after-tax gains 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 a state income tax examination. We reduced the provision for income taxes related to this remeasurement. | |||||||||
IES Segment – Potential Sale of Combined Locks Energy Center | |||||||||
IES is currently pursuing the sale of the Combined Locks Energy Center (Combined Locks), a natural gas-fired co-generation facility located in Wisconsin. | |||||||||
Combined Locks had $0.7 million of assets that were classified as held for sale on the balance sheets at June 30, 2014, and December 31, 2013, which included inventories and property, plant, and equipment. During the three months ended June 30, 2014, and 2013, IES recorded after-tax losses of $0.1 million and $0.7 million, respectively, in discontinued operations related to Combined Locks. During the six months ended June 30, 2014, and 2013, IES recorded after-tax losses of $0.2 million and $0.8 million, respectively, in discontinued operations related to Combined Locks. | |||||||||
IES Segment – Sale of WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC | |||||||||
In March 2013, WPS Empire State, Inc., a subsidiary of IES, sold all of the membership interests of WPS Beaver Falls Generation, LLC (Beaver Falls) and WPS Syracuse Generation, LLC (Syracuse), both of which owned natural gas-fired generation plants located in the state of New York. During the six months ended June 30, 2013, IES recorded after-tax earnings of $0.2 million in discontinued operations related to the gain on sale, partially offset by a net loss from operations at Beaver Falls and Syracuse. |
CASH_AND_CASH_EQUIVALENTS
CASH AND CASH EQUIVALENTS | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
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. | |||||||||
Significant noncash transactions were: | |||||||||
Six Months Ended June 30 | |||||||||
(Millions) | 2014 | 2013 | |||||||
Construction costs funded through accounts payable | $ | 123.3 | $ | 81.8 | |||||
Equity issued for employee stock ownership plan | 1.7 | 6.7 | |||||||
Equity issued for stock-based compensation plans | — | 16 | |||||||
Equity issued for reinvested dividends | — | 6.1 | |||||||
Contingent consideration and payables related to the acquisition of Compass Energy Services | — | 9.1 | |||||||
At June 30, 2014, restricted cash recorded within other long-term assets on our balance sheet included $65.0 million that was transferred to the rabbi trust, triggered by the proposed merger with Wisconsin Energy Corporation. See Note 2, Proposed Merger with Wisconsin Energy Corporation, for more information on the merger. See Note 15, Employee Benefit Plans, for more information on the rabbi trust funding requirements. |
RISK_MANAGEMENT_ACTIVITIES
RISK MANAGEMENT ACTIVITIES | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
RISK MANAGEMENT ACTIVITIES | ' | ||||||||||||||||||
Risk Management Activities | |||||||||||||||||||
In July 2014, we entered into an agreement to sell IES's retail energy business. IES's risk management assets and liabilities reflected below will be included in the sale. See Note 4, Dispositions, for more information. | |||||||||||||||||||
The following tables show our assets and liabilities from risk management activities: | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
(Millions) | Balance Sheet Presentation (1) | Assets from | Liabilities from | ||||||||||||||||
Risk Management Activities | Risk Management Activities | ||||||||||||||||||
Utility Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | $ | 9 | $ | 0.9 | ||||||||||||||
Natural gas contracts | Long-term | 1.2 | 0.1 | ||||||||||||||||
Financial transmission rights (FTRs) (2) | Current | 5.9 | 0.7 | ||||||||||||||||
Petroleum product contracts | Current | 0.3 | — | ||||||||||||||||
Coal contracts | Current | — | 1.6 | ||||||||||||||||
Coal contracts | Long-term | 2.7 | 0.2 | ||||||||||||||||
IES Segment | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | 54.8 | 41.3 | ||||||||||||||||
Natural gas contracts | Long-term | 24.7 | 13.4 | ||||||||||||||||
Electric contracts | Current | 184.6 | 123.4 | ||||||||||||||||
Electric contracts | Long-term | 59.7 | 47.4 | ||||||||||||||||
Current | 254.6 | 167.9 | |||||||||||||||||
Long-term | 88.3 | 61.1 | |||||||||||||||||
Total | $ | 342.9 | $ | 229 | |||||||||||||||
(1) | We classify assets and liabilities from risk management activities as current or long-term based on the maturities of the underlying contracts. | ||||||||||||||||||
(2) | Includes a $1.2 million risk management asset that was classified as held for sale at UPPCO. See Note 4, Dispositions, for more information. | ||||||||||||||||||
31-Dec-13 | |||||||||||||||||||
(Millions) | Balance Sheet Presentation (1) | Assets from | Liabilities from | ||||||||||||||||
Risk Management Activities | Risk Management Activities | ||||||||||||||||||
Utility Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | $ | 8.3 | $ | 1 | ||||||||||||||
Natural gas contracts | Long-term | 1.8 | 0.1 | ||||||||||||||||
FTRs (2) | Current | 2.1 | 0.3 | ||||||||||||||||
Petroleum product contracts | Current | 0.1 | — | ||||||||||||||||
Coal contracts | Current | — | 1.9 | ||||||||||||||||
Coal contracts | Long-term | 0.2 | 0.8 | ||||||||||||||||
IES Segment | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | 57.6 | 42.9 | ||||||||||||||||
Natural gas contracts | Long-term | 29.5 | 18.6 | ||||||||||||||||
Electric contracts | Current | 172 | 117.7 | ||||||||||||||||
Electric contracts | Long-term | 43.9 | 43.3 | ||||||||||||||||
Current | 240.1 | 163.8 | |||||||||||||||||
Long-term | 75.4 | 62.8 | |||||||||||||||||
Total | $ | 315.5 | $ | 226.6 | |||||||||||||||
(1) | We classify assets and liabilities from risk management activities as current or long-term based on the maturities of the underlying contracts. | ||||||||||||||||||
(2) | Includes a $0.6 million risk management asset that was classified as held for sale at UPPCO. See Note 4, Dispositions, for more information. | ||||||||||||||||||
The following tables show the potential effect on our financial position of netting arrangements for recognized derivative assets and liabilities: | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | ||||||||||||||||
Derivative assets subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 16.3 | $ | 1.7 | $ | 14.6 | |||||||||||||
IES segment | 323.8 | 197.7 | 126.1 | ||||||||||||||||
Total | 340.1 | 199.4 | 140.7 | ||||||||||||||||
Derivative assets not subject to master netting or similar arrangements | 2.8 | 2.8 | |||||||||||||||||
Total risk management assets | $ | 342.9 | $ | 143.5 | |||||||||||||||
Derivative liabilities subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 1.7 | $ | 1.7 | $ | — | |||||||||||||
IES segment | 225.4 | 198.3 | 27.1 | ||||||||||||||||
Total | 227.1 | 200 | 27.1 | ||||||||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 1.9 | 1.9 | |||||||||||||||||
Total risk management liabilities | $ | 229 | $ | 29 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | ||||||||||||||||
Derivative assets subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 12.3 | $ | 2.1 | $ | 10.2 | |||||||||||||
IES segment | 301.9 | 178.1 | 123.8 | ||||||||||||||||
Total | 314.2 | 180.2 | 134 | ||||||||||||||||
Derivative assets not subject to master netting or similar arrangements | 1.3 | 1.3 | |||||||||||||||||
Total risk management assets | $ | 315.5 | $ | 135.3 | |||||||||||||||
Derivative liabilities subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 1.4 | $ | 1.4 | $ | — | |||||||||||||
IES segment | 222.1 | 178.1 | 44 | ||||||||||||||||
Total | 223.5 | 179.5 | 44 | ||||||||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 3.1 | 3.1 | |||||||||||||||||
Total risk management liabilities | $ | 226.6 | $ | 47.1 | |||||||||||||||
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 tables. These amounts may offset (or conditionally offset) the net amounts presented in the above tables. | |||||||||||||||||||
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) | June 30, 2014 | December 31, 2013 | |||||||||||||||||
Cash collateral provided to others: (1) | |||||||||||||||||||
Related to contracts under master netting or similar arrangements (2) | $ | 39.1 | $ | 37.6 | |||||||||||||||
Other | 1.1 | 1.1 | |||||||||||||||||
Cash collateral received from others related to contracts under master netting or similar arrangements (1) | — | 0.7 | |||||||||||||||||
(1) | Cash collateral provided to others is reflected in other current assets and cash collateral received from others is reflected in other current liabilities on the balance sheets. | ||||||||||||||||||
(2) | Includes $1.3 million of cash collateral provided to others that was classified as held for sale at UPPCO at June 30, 2014, and December 31, 2013. See Note 4, Dispositions, for more information. | ||||||||||||||||||
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) | June 30, 2014 | 31-Dec-13 | |||||||||||||||||
Utility segments | $ | 0.6 | $ | 0.6 | |||||||||||||||
IES segment | 44.9 | 76.7 | |||||||||||||||||
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) | June 30, 2014 | 31-Dec-13 | |||||||||||||||||
Collateral that would have been required: | |||||||||||||||||||
Utility segments | $ | — | $ | — | |||||||||||||||
IES segment | 173.3 | 197.6 | |||||||||||||||||
Collateral already satisfied: | |||||||||||||||||||
IES segment — Letters of credit | 4 | 4.5 | |||||||||||||||||
Collateral remaining: | |||||||||||||||||||
IES segment | 169.3 | 193.1 | |||||||||||||||||
Utility Segments | |||||||||||||||||||
Non-Hedge Derivatives | |||||||||||||||||||
Utility derivatives include natural gas purchase contracts, coal purchase contracts, financial derivative contracts, and FTRs used to manage electric transmission congestion costs. The electric and natural gas utility segments use financial derivative contracts to manage the risks associated with the market price volatility of natural gas supply costs. In addition, IBS enters into financial derivative contracts on behalf of the utilities to manage the cost of gasoline and diesel fuel used by utility vehicles. | |||||||||||||||||||
The notional volumes of outstanding derivative contracts at the utilities and IBS were as follows: | |||||||||||||||||||
June 30, 2014 | 31-Dec-13 | ||||||||||||||||||
(Millions) | Purchases | Sales | Other Transactions | Purchases | Sales | Other Transactions | |||||||||||||
Natural gas (therms) | 2,213.00 | 2 | N/A | 3,124.80 | 29.3 | N/A | |||||||||||||
FTRs (kilowatt-hours) | N/A | N/A | 8,359.80 | N/A | N/A | 3,633.10 | |||||||||||||
Petroleum products (barrels) | 0.1 | — | N/A | 0.1 | — | N/A | |||||||||||||
Coal (tons) | 4 | — | N/A | 4.8 | — | N/A | |||||||||||||
The table below shows the unrealized gains (losses) recorded related to derivative contracts at the utilities and IBS: | |||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||
(Millions) | Financial Statement Presentation | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Natural gas | Balance Sheet — Regulatory assets (current) | $ | (1.0 | ) | $ | (5.6 | ) | $ | (0.1 | ) | $ | 7.4 | |||||||
Natural gas | Balance Sheet — Regulatory assets (long-term) | — | (1.0 | ) | (0.2 | ) | (0.2 | ) | |||||||||||
Natural gas | Balance Sheet — Regulatory liabilities (current) | (3.4 | ) | (5.7 | ) | — | 0.2 | ||||||||||||
Natural gas | Balance Sheet — Regulatory liabilities (long-term) | 0.1 | (1.1 | ) | (0.3 | ) | (0.3 | ) | |||||||||||
Natural gas | Income Statement — Operating and maintenance expense | (0.1 | ) | (0.3 | ) | 0.1 | (0.1 | ) | |||||||||||
FTRs | Balance Sheet — Regulatory assets (current) * | (1.1 | ) | (1.0 | ) | (0.9 | ) | (0.8 | ) | ||||||||||
FTRs | Balance Sheet — Regulatory liabilities (current) * | 1.3 | 0.3 | 1.1 | (0.1 | ) | |||||||||||||
Petroleum | Balance Sheet — Regulatory assets (current) | — | (0.1 | ) | — | (0.1 | ) | ||||||||||||
Petroleum | Income Statement — Operating and maintenance expense | 0.1 | — | 0.1 | — | ||||||||||||||
Coal | Balance Sheet — Regulatory assets (current) | (0.3 | ) | 0.8 | (0.1 | ) | 2.7 | ||||||||||||
Coal | Balance Sheet — Regulatory assets (long-term) | 0.2 | 1.7 | 0.6 | 4 | ||||||||||||||
Coal | Balance Sheet — Regulatory liabilities (current) | — | (0.1 | ) | — | (0.3 | ) | ||||||||||||
Coal | Balance Sheet — Regulatory liabilities (long-term) | 0.9 | — | 2.5 | (2.2 | ) | |||||||||||||
* | Includes insignificant unrealized losses and gains recorded to regulatory assets and liabilities, respectively, that were classified as held for sale at UPPCO. See Note 4, Dispositions, for more information. | ||||||||||||||||||
IES Segment | |||||||||||||||||||
Nonhedge Derivatives | |||||||||||||||||||
IES enters into physical and financial derivative contracts that are used to manage commodity price risk primarily associated with retail electric and natural gas customer contracts. | |||||||||||||||||||
IES had the following notional volumes of outstanding derivative contracts: | |||||||||||||||||||
June 30, 2014 | 31-Dec-13 | ||||||||||||||||||
(Millions) | Purchases | Sales | Purchases | Sales | |||||||||||||||
Commodity contracts | |||||||||||||||||||
Natural gas (therms) | 1,164.60 | 1,262.50 | 1,199.90 | 1,065.40 | |||||||||||||||
Electric (kilowatt-hours) | 40,031.90 | 23,508.90 | 49,186.30 | 30,813.80 | |||||||||||||||
Gains (losses) related to derivative contracts are recognized currently in earnings, as shown in the table below: | |||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||
(Millions) | Income Statement Presentation | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Natural gas | Nonregulated revenue | $ | 10 | $ | 33.8 | $ | (26.9 | ) | $ | 37.2 | |||||||||
Natural gas | Nonregulated cost of sales | (5.0 | ) | (32.9 | ) | 28 | (34.5 | ) | |||||||||||
Natural gas | Nonregulated revenue (reclassified from accumulated OCI) * | — | (0.1 | ) | — | (0.2 | ) | ||||||||||||
Electric | Nonregulated revenue | 15.8 | (77.6 | ) | 176.1 | (13.6 | ) | ||||||||||||
Electric | Nonregulated cost of sales | 1.4 | 8.7 | 2 | 8.7 | ||||||||||||||
Electric | Nonregulated revenue (reclassified from accumulated OCI) * | — | (2.0 | ) | — | (3.0 | ) | ||||||||||||
Total | $ | 22.2 | $ | (70.1 | ) | $ | 179.2 | $ | (5.4 | ) | |||||||||
* | Represents amounts reclassified from accumulated other comprehensive loss (OCI) related to cash flow hedges that were dedesignated in prior periods. |
INVESTMENT_IN_ATC
INVESTMENT IN ATC | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 June 30, 2014. ATC is a for-profit, transmission-only company regulated by FERC. | |||||||||||||||||
The following table shows changes to our investment in ATC: | |||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at the beginning of period | $ | 517.6 | $ | 482.7 | $ | 508.4 | $ | 476.6 | |||||||||
Add: Earnings from equity method investment | 23 | 22 | 45.5 | 43.7 | |||||||||||||
Add: Capital contributions | 5.1 | 5.1 | 10.2 | 6.8 | |||||||||||||
Less: Dividends received | 18.4 | 17.6 | 36.8 | 34.9 | |||||||||||||
Balance at the end of period | $ | 527.3 | $ | 492.2 | $ | 527.3 | $ | 492.2 | |||||||||
Financial data for all of ATC is included in the following tables: | |||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Income statement data | |||||||||||||||||
Revenues | $ | 160 | $ | 152.1 | $ | 323.3 | $ | 303.9 | |||||||||
Operating expenses | 74.4 | 69.9 | 153 | 139.7 | |||||||||||||
Other expense | 21.9 | 20.9 | 43.5 | 42.4 | |||||||||||||
Net income | $ | 63.7 | $ | 61.3 | $ | 126.8 | $ | 121.8 | |||||||||
(Millions) | June 30, 2014 | 31-Dec-13 | |||||||||||||||
Balance sheet data | |||||||||||||||||
Current assets | $ | 80.6 | $ | 80.7 | |||||||||||||
Noncurrent assets | 3,612.70 | 3,509.50 | |||||||||||||||
Total assets | $ | 3,693.30 | $ | 3,590.20 | |||||||||||||
Current liabilities | $ | 419.8 | $ | 381.5 | |||||||||||||
Long-term debt | 1,550.00 | 1,550.00 | |||||||||||||||
Other noncurrent liabilities | 135.3 | 126.1 | |||||||||||||||
Shareholders’ equity | 1,588.20 | 1,532.60 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,693.30 | $ | 3,590.20 | |||||||||||||
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2014 | |
Inventory Disclosure [Abstract] | ' |
INVENTORIES | ' |
Inventories | |
PGL and NSG price natural gas storage injections at the calendar year average of the costs of natural gas supply purchased. Withdrawals from storage are priced on the Last-in, First-out (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 June 30, 2014, we had a temporary LIFO liquidation credit of $57.9 million recorded within other current liabilities on our balance sheet. Due to seasonality requirements, PGL and NSG expect interim reductions in LIFO layers to be replenished by year end. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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 six months ended June 30, 2014: | |||||||||||||||||||||||||
(Millions) | Natural Gas Utility | IES | Holding Company and Other | Total | |||||||||||||||||||||
Balance as of January 1, 2014 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||
Rounding adjustment | (0.1 | ) | 0.1 | — | — | ||||||||||||||||||||
Goodwill impairment loss | — | (6.7 | ) | — | (6.7 | ) | |||||||||||||||||||
Balance as of June 30, 2014 | |||||||||||||||||||||||||
Gross goodwill | 933.5 | 6.7 | 19.6 | 959.8 | |||||||||||||||||||||
Accumulated impairment losses | (297.7 | ) | (6.7 | ) | — | (304.4 | ) | ||||||||||||||||||
Net goodwill | $ | 635.8 | $ | — | $ | 19.6 | $ | 655.4 | |||||||||||||||||
In June 2014, we announced that we were in the late stages of a process to divest of IES's retail energy business. In anticipation of this divestiture, IES performed an interim goodwill impairment analysis. Based on the results of the interim goodwill impairment analysis, IES recorded a non-cash goodwill impairment loss of $6.7 million in the second quarter of 2014. This goodwill impairment loss reflected the offers received for IES's retail energy business. See Note 4, Dispositions, for more information on the pending sale of IES's retail energy business. | |||||||||||||||||||||||||
In the second quarter of 2014, annual impairment tests were completed at all of our reporting units that carried a goodwill balance as of April 1, 2014. No impairments resulted from our annual impairment tests. As discussed above, IES recorded a goodwill impairment loss as a result of an interim test in June 2014. | |||||||||||||||||||||||||
The identifiable intangible assets other than goodwill listed below are part of other current and long-term assets on the balance sheets. | |||||||||||||||||||||||||
June 30, 2014 | 31-Dec-13 | ||||||||||||||||||||||||
(Millions) | Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||||
Amortized intangible assets | |||||||||||||||||||||||||
Contractual service agreements (1) | 15.6 | (3.0 | ) | 12.6 | 15.6 | (1.8 | ) | 13.8 | |||||||||||||||||
Customer-related (2) | 26.8 | (16.5 | ) | 10.3 | 26.8 | (15.7 | ) | 11.1 | |||||||||||||||||
Renewable energy credits (3) | 7.2 | — | 7.2 | 8.4 | — | 8.4 | |||||||||||||||||||
Customer-owned equipment modifications (4) | 4 | (1.0 | ) | 3 | 4 | (0.9 | ) | 3.1 | |||||||||||||||||
Patents/intellectual property (5) | 3.4 | (0.6 | ) | 2.8 | 3.4 | (0.5 | ) | 2.9 | |||||||||||||||||
Compressed natural gas fueling contract assets (6) | 5.6 | (3.1 | ) | 2.5 | 5.6 | (2.7 | ) | 2.9 | |||||||||||||||||
Nonregulated easements (7) | 3.7 | (1.3 | ) | 2.4 | 3.7 | (1.1 | ) | 2.6 | |||||||||||||||||
Natural gas and electric contract assets (8) | 3.9 | (2.0 | ) | 1.9 | 3.9 | (0.5 | ) | 3.4 | |||||||||||||||||
Other | 0.5 | (0.3 | ) | 0.2 | 0.5 | (0.3 | ) | 0.2 | |||||||||||||||||
Total | $ | 70.7 | $ | (27.8 | ) | $ | 42.9 | $ | 71.9 | $ | (23.5 | ) | $ | 48.4 | |||||||||||
Unamortized intangible assets | |||||||||||||||||||||||||
MGU trade name | $ | 5.2 | $ | — | $ | 5.2 | $ | 5.2 | $ | — | $ | 5.2 | |||||||||||||
Trillium trade name (9) | 3.5 | — | 3.5 | 3.5 | — | 3.5 | |||||||||||||||||||
Pinnacle trade name (9) | 1.5 | — | 1.5 | 1.5 | — | 1.5 | |||||||||||||||||||
Total intangible assets | $ | 80.9 | $ | (27.8 | ) | $ | 53.1 | $ | 82.1 | $ | (23.5 | ) | $ | 58.6 | |||||||||||
(1) | 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 June 30, 2014, was approximately six years. | ||||||||||||||||||||||||
(2) | Represents customer relationship assets associated with PELLC’s former nonregulated retail natural gas and electric operations, ITF's compressed natural gas fueling operations, and IES's retail natural gas operations. The remaining weighted-average amortization period for customer-related intangible assets at June 30, 2014, was approximately 11 years. | ||||||||||||||||||||||||
(3) | Used at IES to comply with state Renewable Portfolio Standards and to support customer commitments. | ||||||||||||||||||||||||
(4) | Relates to modifications made by IES and ITF to customer-owned equipment. These intangible assets are amortized on a straight-line basis, with a remaining weighted-average amortization period at June 30, 2014, of approximately ten years. | ||||||||||||||||||||||||
(5) | 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. The remaining amortization period at June 30, 2014, was approximately eight years. | ||||||||||||||||||||||||
(6) | Represents the fair value of ITF contracts acquired in September 2011. The remaining amortization period at June 30, 2014, was approximately seven years. | ||||||||||||||||||||||||
(7) | Relates to easements supporting a pipeline at IES. The easements are amortized on a straight-line basis, with a remaining amortization period at June 30, 2014, of approximately ten years. | ||||||||||||||||||||||||
(8) | Represents the fair value of certain natural gas and electric customer contracts acquired by IES during 2013 that were not considered to be derivative instruments. The remaining amortization period for these intangible assets at June 30, 2014, was approximately three years. | ||||||||||||||||||||||||
(9) | Trillium USA (Trillium) and Pinnacle CNG Systems (Pinnacle) are wholly-owned subsidiaries of ITF. | ||||||||||||||||||||||||
The table below shows our amortization expense recognized in the statements of income: | |||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Amortization recorded in nonregulated cost of sales | $ | 1.1 | $ | 0.5 | $ | 2.1 | $ | 0.9 | |||||||||||||||||
Amortization recorded in depreciation and amortization expense | 1.1 | 1.2 | 2.2 | 1.7 | |||||||||||||||||||||
An insignificant amount of amortization expense was recorded in discontinued operations for the six months ended June 30, 2013. | |||||||||||||||||||||||||
The following table shows our estimated amortization expense for the next five years, including amounts recorded through June 30, 2014: | |||||||||||||||||||||||||
For the Year Ending December 31 | |||||||||||||||||||||||||
(Millions) | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||||||
Amortization to be recorded in nonregulated cost of sales | $ | 3.4 | $ | 2 | $ | 1.1 | $ | 0.9 | $ | 0.8 | |||||||||||||||
Amortization to be recorded in depreciation and amortization expense | 4.3 | 4.2 | 4 | 3.9 | 3.8 | ||||||||||||||||||||
SHORTTERM_DEBT_AND_LINES_OF_CR
SHORT-TERM DEBT AND LINES OF CREDIT | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Short-term Debt [Abstract] | ' | ||||||||||
SHORT-TERM DEBT AND LINES OF CREDIT | ' | ||||||||||
Short-Term Debt and Lines of Credit | |||||||||||
Our outstanding short-term borrowings were as follows: | |||||||||||
(Millions, except percentages) | June 30, 2014 | 31-Dec-13 | |||||||||
Commercial paper | $ | 420.7 | $ | 326 | |||||||
Average interest rate on commercial paper | 0.24 | % | 0.22 | % | |||||||
The commercial paper outstanding at June 30, 2014, had maturity dates ranging from July 1, 2014, through July 21, 2014. | |||||||||||
Our average amount of commercial paper borrowings based on daily outstanding balances during the six months ended June 30, 2014, and 2013, was $215.6 million and $443.2 million, respectively. | |||||||||||
We manage our liquidity by maintaining adequate external financing commitments. The information in the table below relates to our revolving credit facilities used to support our commercial paper borrowing program, including remaining available capacity under these facilities: | |||||||||||
(Millions) | Maturity | June 30, 2014 | 31-Dec-13 | ||||||||
Revolving credit facility (Integrys Energy Group) (1) | 5/17/14 | $ | — | $ | 275 | ||||||
Revolving credit facility (Integrys Energy Group) (1) | 5/17/16 | — | 200 | ||||||||
Revolving credit facility (Integrys Energy Group) | 6/13/17 | 635 | 635 | ||||||||
Revolving credit facility (Integrys Energy Group) | 5/8/19 | 465 | — | ||||||||
Revolving credit facility (WPS) (1) | 5/17/14 | — | 135 | ||||||||
Revolving credit facility (WPS) (2) | 5/7/15 | 135 | — | ||||||||
Revolving credit facility (WPS) | 6/13/17 | 115 | 115 | ||||||||
Revolving credit facility (PGL) | 6/13/17 | 250 | 250 | ||||||||
Total short-term credit capacity | $ | 1,600.00 | $ | 1,610.00 | |||||||
Less: | |||||||||||
Letters of credit issued inside credit facilities | $ | 22.6 | $ | 52.4 | |||||||
Commercial paper outstanding | 420.7 | 326 | |||||||||
Available capacity under existing agreements | $ | 1,156.70 | $ | 1,231.60 | |||||||
(1) | These credit facilities were terminated and replaced with new credit facilities in May 2014. | ||||||||||
(2) | WPS requested approval from the PSCW to extend this facility through May 8, 2019. |
LONGTERM_DEBT
LONG-TERM DEBT | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
LONG-TERM DEBT | ' | ||||||||
Long-Term Debt | |||||||||
(Millions) | June 30, 2014 | 31-Dec-13 | |||||||
WPS | $ | 1,175.10 | $ | 1,175.10 | |||||
PGL (1) | 725 | 725 | |||||||
NSG | 82 | 82 | |||||||
Integrys Energy Group (2) | 974.8 | 1,074.80 | |||||||
Total | 2,956.90 | 3,056.90 | |||||||
Unamortized discount on debt | (0.7 | ) | (0.7 | ) | |||||
Total debt | 2,956.20 | 3,056.20 | |||||||
Less current portion | — | 100 | |||||||
Total long-term debt | $ | 2,956.20 | $ | 2,956.20 | |||||
(1) | PGL's $50.0 million of 2.125% Series VV Bonds were subject to a mandatory interest reset on July 1, 2014. The new interest rate on these bonds is 3.90%, and they are due in March 2030. | ||||||||
(1) | In June 2014, our $100.0 million of 7.27% Senior Notes matured, and the outstanding principal balance was repaid. |
INCOME_TAXES
INCOME TAXES | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
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 June 30 | Six Months Ended June 30 | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Effective tax rate | 50.3 | % | 45.8 | % | 37.8 | % | 37.4 | % | |||||
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 June 30, 2014, was higher than the federal statutory rate of 35%. In the second quarter of 2014, IES recorded a $6.7 million goodwill impairment loss. This amount is not deductible for income tax purposes. | |||||||||||||
Our effective tax rate for the three months ended June 30, 2013, was higher than the federal statutory rate of 35%. Various favorable tax adjustments were recorded in the second quarter of 2013, which when combined with a net loss for the quarter, caused the effective tax rate to increase. | |||||||||||||
During the three and six months ended June 30, 2014, there was not a significant change in our liability for unrecognized tax benefits. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | ||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||
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 IES 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 June 30, 2014, including those of our subsidiaries. | |||||||||||||||||||||||||||||||
Payments Due By Period | |||||||||||||||||||||||||||||||
(Millions) | Year Contracts Extend Through | Total Amounts Committed | 2014 | 2015 | 2016 | 2017 | 2018 | Later Years | |||||||||||||||||||||||
Natural gas utility supply and transportation | 2028 | $ | 772.5 | $ | 91.7 | $ | 171.3 | $ | 161.8 | $ | 127 | $ | 76.2 | $ | 144.5 | ||||||||||||||||
Electric utility | |||||||||||||||||||||||||||||||
Purchased power (1) | 2029 | 907.2 | 42.1 | 54.7 | 42.9 | 53.5 | 56.5 | 657.5 | |||||||||||||||||||||||
Coal supply and transportation | 2018 | 127.9 | 26.1 | 42.8 | 18.5 | 20.6 | 19.9 | — | |||||||||||||||||||||||
Nonregulated electricity and natural gas supply (2) | 2020 | 613.7 | 258.9 | 265.4 | 70.6 | 15 | 2.7 | 1.1 | |||||||||||||||||||||||
Total | $ | 2,421.30 | $ | 418.8 | $ | 534.2 | $ | 293.8 | $ | 216.1 | $ | 155.3 | $ | 803.1 | |||||||||||||||||
(1) | Includes minimum future commitments for UPPCO related to power purchase contracts of $14.3 million for the years 2014 to 2024. In January 2014, we announced an agreement to sell UPPCO. See Note 4, Dispositions, for more information. | ||||||||||||||||||||||||||||||
(2) | Represents minimum future commitments for IES. In July 2014, we entered into a definitive agreement to sell the retail energy business of IES. See Note 4, Dispositions, for more information. | ||||||||||||||||||||||||||||||
We and our subsidiaries also had commitments of $1,173.0 million in the form of purchase orders issued to various vendors at June 30, 2014, that relate to normal business operations, including construction projects. Included in this amount are purchase orders issued to various vendors of UPPCO for $13.1 million and IES for $46.7 million. | |||||||||||||||||||||||||||||||
(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, 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. WPS announced that certain Weston and Pulliam units mentioned in the Consent Decree will be retired early, in June 2015. In July 2014, WPS filed for approval from the PSCW to reclassify the undepreciated book value of the retired units to a regulatory asset in 2015, with recovery of a full return, and for future amortization at current depreciable rates. WPS believes that it will receive approval of this treatment from the PSCW. | |||||||||||||||||||||||||||||||
WPS received approval from the PSCW in its 2014 rate order to recover prudently incurred 2014 costs as a result of complying with the terms of the Consent Decree, with the exception of the civil penalty. We also believe that prudently incurred costs after 2014 will be recoverable from customers based on past precedent with the PSCW. | |||||||||||||||||||||||||||||||
The majority of the beneficial environmental projects proposed by WPS have been approved by the EPA. Amounts have been accrued and recorded to regulatory assets, excluding costs associated with capital projects. | |||||||||||||||||||||||||||||||
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 June 30, 2014. It is unknown whether the Sierra Club will take further action in the future. | |||||||||||||||||||||||||||||||
Columbia and Edgewater CAA Issues: | |||||||||||||||||||||||||||||||
In December 2009, the EPA issued an NOV to Wisconsin Power and Light (WP&L), the operator of the Columbia and Edgewater plants, and the other joint owners of these plants, including Madison Gas and Electric and 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, 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 June 30, 2014, no decision had been made on how to address this requirement. Therefore, retirement of the Columbia and Edgewater units mentioned in the Consent Decree was not considered probable. | |||||||||||||||||||||||||||||||
We believe that significant costs prudently incurred as a result of complying with the terms of the Consent Decree, with the exception of the civil penalty, will be recoverable from customers. | |||||||||||||||||||||||||||||||
All of the beneficial environmental projects proposed by WPS have been approved by the EPA. Amounts have been accrued and recorded to regulatory assets, excluding costs associated with capital projects. | |||||||||||||||||||||||||||||||
Weston Title V Air Permit: | |||||||||||||||||||||||||||||||
In August 2013, the WDNR issued the Weston Title V air permit. In September 2013, WPS challenged various requirements in the permit by filing a contested case proceeding with the WDNR and also filed a Petition for Judicial Review in the Brown County Circuit Court. The Sierra Club and Clean Wisconsin also filed Petitions for Judicial Review and requests for contested case proceedings regarding various aspects of the permit. The WDNR granted all parties' requests for contested case proceedings. WPS has filed permit amendment applications such that, if the facility permits and the Title V air permit are amended in accordance with the applications, several of the issues WPS raised would be resolved. The contested case petitions have not yet been referred to an Administrative Law Judge. The Petitions for Judicial Review, by all parties, have been stayed pending the resolution of the contested cases. | |||||||||||||||||||||||||||||||
In May 2014, the WDNR issued an NOV to WPS alleging that WPS failed to maintain a minimum sorbent feed rate prior to the Continuous Emissions Monitoring System (CEMS) certification. WPS and the WDNR have begun discussing resolution of this matter. We do not expect this matter to have a material impact on our financial statements. | |||||||||||||||||||||||||||||||
In May 2014, the WDNR issued a Notice of Inquiry (NOI) to WPS alleging that WPS failed to comply with excess emission summary reporting requirements in the 2013 Weston Title V permit. WPS believes that such requirements are stayed pursuant to state law pending the outcome of the Weston Title V air permit contested case and has filed a motion with the administrative law judge requesting confirmation of the stay. Briefing is in progress, and we anticipate a decision from the administrative law judge by mid-September 2014. 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 from fuel combusted by a minimum of 90%, or meet certain mercury emission limits annually based on gigawatt-hours of electricity produced. 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. | |||||||||||||||||||||||||||||||
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 state mercury rule to be consistent with the MATS rule. Projects approved and initiated to address the State of Wisconsin mercury rule are expected to ensure compliance with the mercury limits in the MATS rule. | |||||||||||||||||||||||||||||||
WPS expects to be in compliance with the State of Wisconsin's mercury rule by the end of 2014. In addition, WPS is making progress toward compliance with the MATS rule in 2015. WPS estimated capital costs of approximately $9 million for its wholly owned plants to achieve the required reductions for MATS compliance, of which approximately $3 million has been expended as of June 30, 2014. The capital costs are expected to be recovered in future rates. | |||||||||||||||||||||||||||||||
Sulfur Dioxide and Nitrogen Oxide: | |||||||||||||||||||||||||||||||
In July 2011, the EPA issued a final rule known as the Cross State Air Pollution Rule (CSAPR), which numerous parties, including 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. The case was appealed to the United States Supreme Court, and in April 2014, the Supreme Court upheld the CSAPR rule and remanded the case to the Court of Appeals for the D.C. Circuit. There are remaining issues before the D.C. Circuit, and there will need to be additional rulemakings before CSAPR is implemented. As a result, it is premature to speculate on what additional controls or other actions, if any, we may be required to implement. WPS expects to recover any future compliance costs in future rates. | |||||||||||||||||||||||||||||||
In June 2014, the EPA requested that the D.C. Circuit lift the stay of CSAPR. Further, the EPA asked the D.C. Circuit to change the CSAPR compliance deadlines by three years, so that Phase 1 emissions budgets would apply in 2015 and 2016, and Phase 2 emissions budgets would apply to 2017 and beyond. The stay of CSAPR is still in effect, pending the D.C. Circuit's action on the EPA's request. 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. | |||||||||||||||||||||||||||||||
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. The natural gas utilities are coordinating the investigation and cleanup of the sites subject to EPA jurisdiction under what is called a "multisite" program. This program involves prioritizing the work to be done at the sites, preparation and approval of documents common to all of the sites, and use of a consistent approach in selecting remedies. | |||||||||||||||||||||||||||||||
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. Our balance sheets include liabilities of $576.1 million that we have estimated and accrued for as of June 30, 2014, for future undiscounted investigation and cleanup costs for all sites. We may adjust these estimates in the future due to remedial technology, regulatory requirements, remedy determinations, and any claims of natural resource damages. As of June 30, 2014, cash expenditures for environmental remediation not yet recovered in rates were $43.3 million. Our balance sheets include a regulatory asset of $619.4 million at June 30, 2014, which is net of insurance recoveries, 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 | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||
GUARANTEES | ' | ||||||||||||||||
Guarantees | |||||||||||||||||
The following table shows our outstanding guarantees: | |||||||||||||||||
Total Amounts Committed | Expiration | ||||||||||||||||
(Millions) | at June 30, 2014 | Less Than 1 Year | 1 to 3 Years | Over 3 Years | |||||||||||||
Guarantees supporting commodity transactions of subsidiaries (1) | $ | 705.3 | $ | 460.5 | $ | 4.6 | $ | 240.2 | |||||||||
Standby letters of credit (2) | 27.7 | 27.3 | 0.3 | 0.1 | |||||||||||||
Surety bonds (3) | 32.7 | 32.7 | — | — | |||||||||||||
Other guarantees (4) | 55.4 | 1.5 | — | 53.9 | |||||||||||||
Total guarantees (5) | $ | 821.1 | $ | 522 | $ | 4.9 | $ | 294.2 | |||||||||
(1) | Consists of (a) $520.4 million, $5.0 million, and $2.0 million to support the business operations of IES, IBS, and UPPCO, respectively, and (b) $120.0 million, $57.5 million, and $0.4 million related to natural gas supply at MERC, MGU, and ITF, 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 $26.0 million issued to support IES’s operations and $1.7 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) $35.0 million to support IES's future payment obligations related to its distributed solar generation projects. This guarantee is not reflected on our balance sheets; (b) $10.0 million related to the sale agreement for IES's 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 law; (c) $1.8 million related to the sale of WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC. IES guaranteed the buyer's performance under certain derivative contracts that the buyer assumed from WPS Empire State, Inc. in conjunction with the sale; (d) $2.4 million related to the performance of an operating and maintenance agreement by ITF; and (e) $6.2 million related to other indemnifications primarily for workers compensation coverage. The amounts discussed in items (c) through (e) above are not reflected on our balance sheets. | ||||||||||||||||
(5) | Consists of $597.1 million of guarantees related to IES and $3.2 million of guarantees related to UPPCO. See Note 4, Dispositions, for information on the pending sale of IES's retail energy business and the pending sale of UPPCO. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | ||||||||||||||||||||||||||||||||
Employee Benefit Plans | |||||||||||||||||||||||||||||||||
Defined 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 | Six Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||
30-Jun | 30-Jun | 30-Jun | 30-Jun | ||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Service cost | $ | 5.9 | $ | 7.6 | $ | 12.5 | $ | 15.1 | $ | 4.8 | $ | 5.9 | $ | 10.7 | $ | 12.4 | |||||||||||||||||
Interest cost | 19.3 | 17.8 | 39 | 35.6 | 5.2 | 6.1 | 12.3 | 12.4 | |||||||||||||||||||||||||
Expected return on plan assets | (28.5 | ) | (26.1 | ) | (57.4 | ) | (52.7 | ) | (7.9 | ) | (7.6 | ) | (16.7 | ) | (15.3 | ) | |||||||||||||||||
Loss on plan settlement | 0.9 | — | 0.9 | — | — | — | — | — | |||||||||||||||||||||||||
Amortization of prior service cost (credit) | 0.1 | 1 | 0.3 | 2 | (2.8 | ) | (0.6 | ) | (4.1 | ) | (1.2 | ) | |||||||||||||||||||||
Amortization of net actuarial loss | 8.6 | 14.8 | 17 | 28.3 | 0.8 | 2.2 | 1.5 | 4.2 | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 6.3 | $ | 15.1 | $ | 12.3 | $ | 28.3 | $ | 0.1 | $ | 6 | $ | 3.7 | $ | 12.5 | |||||||||||||||||
Prior service costs (credits) and net actuarial losses that have not yet been recognized as a component of net periodic benefit cost are recorded in accumulated other comprehensive income for our nonregulated entities and as net regulatory assets or liabilities for our regulated utilities. | |||||||||||||||||||||||||||||||||
On March 1, 2014, we remeasured the obligations of certain other postretirement benefit plans. The remeasurement was necessary because we will replace the current retiree medical plans for participants age 65 and older with a Medicare Advantage plan starting in 2015. | |||||||||||||||||||||||||||||||||
Our funding policy is to contribute at least the minimum amounts that are required to be funded under the Employee Retirement Income Security Act, but not more than the maximum amounts that are currently deductible for income tax purposes. During the six months ended June 30, 2014, we contributed $69.4 million to our pension plans and $0.1 million to our other postretirement benefit plans. We expect to contribute an additional $3.1 million to our pension plans and $10.9 million to our other postretirement benefit plans during the remainder of 2014, dependent upon various factors affecting us, including our liquidity position and possible tax law changes. Of the remaining contributions for 2014, contributions of $2.0 million will be funded through a transfer of assets from the rabbi trust for certain nonqualified pension plans. See the discussion below in regard to the triggering of the full funding of the rabbi trust. | |||||||||||||||||||||||||||||||||
Rabbi Trust Funding Requirement | |||||||||||||||||||||||||||||||||
Historically, our deferred compensation programs were partially funded through shares of common stock held in a rabbi trust. The Agreement and Plan of Merger entered into with Wisconsin Energy Corporation in June 2014 triggered the potential change in control provisions in the rabbi trust agreement. These provisions required the full funding of the present value of each participant's total benefit under the deferred compensation program and certain nonqualified pension plans. As a result, $65.0 million was moved to the rabbi trust on June 30, 2014, and was recorded as restricted cash and included in other long-term assets on the balance sheet. An additional $64.8 million, consisting of cash and exchange-traded funds, was moved to the rabbi trust in July 2014. See Note 2, Proposed Merger with Wisconsin Energy Corporation, for more information on the merger. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
In May 2014, our shareholders approved the 2014 Omnibus Incentive Compensation Plan (2014 Omnibus Plan). Under the provisions of the 2014 Omnibus Plan, the number of shares of stock that may be issued in satisfaction of plan awards may not exceed 3,000,000 shares, plus any shares forfeited under prior plans. No single employee who is our chief executive officer, chief financial officer, or any one of our other three highest compensated officers (including officers of our subsidiaries) can be granted stock options for more than 1,000,000 shares or receive a payout in excess of 250,000 shares for performance stock rights during any calendar year. Additional awards will not be issued under prior plans, although the plans continue to exist for purposes of the existing outstanding stock-based compensation awards. At June 30, 2014, stock options, performance stock rights, and restricted share units were outstanding under prior plans. | |||||||||||||||||
The following table reflects the stock-based compensation expense and the related deferred income tax benefit recognized in income for the three and six months ended June 30: | |||||||||||||||||
Three Months Ended June | Six Months Ended June 30 | ||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options | $ | 0.5 | $ | 0.5 | $ | 0.8 | $ | 0.9 | |||||||||
Performance stock rights | 9.2 | 1 | 9.7 | 3.2 | |||||||||||||
Restricted share units | 3 | 2.5 | 6.1 | 5.3 | |||||||||||||
Nonemployee director deferred stock units | 0.2 | 0.2 | 0.4 | 0.5 | |||||||||||||
Total stock-based compensation expense | $ | 12.9 | $ | 4.2 | $ | 17 | $ | 9.9 | |||||||||
Deferred income tax benefit | $ | 5.2 | $ | 1.7 | $ | 6.8 | $ | 4 | |||||||||
No stock-based compensation cost was capitalized during the three and six months ended June 30, 2014, and 2013. | |||||||||||||||||
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. The expected stock price volatility is estimated using the 10-year historical volatility of our stock price. The following table shows the assumptions incorporated into the valuation model: | |||||||||||||||||
February 2014 Grant | |||||||||||||||||
Expected term | 8 years | ||||||||||||||||
Risk-free interest rate | 0.12% – 2.88% | ||||||||||||||||
Expected dividend yield | 5.28% | ||||||||||||||||
Expected volatility | 18% | ||||||||||||||||
The weighted-average fair value per stock option granted during the six months ended June 30, 2014, and 2013, was $6.70 and $6.03, respectively. | |||||||||||||||||
A summary of stock option activity for the six months ended June 30, 2014, and information related to outstanding and exercisable stock options at June 30, 2014, 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, 2013 | 1,550,374 | $ | 50.93 | ||||||||||||||
Granted | 264,332 | 55.23 | |||||||||||||||
Exercised | (240,673 | ) | 49.32 | ||||||||||||||
Outstanding at June 30, 2014 | 1,574,033 | $ | 51.9 | 6.6 | $ | 30.3 | |||||||||||
Exercisable at June 30, 2014 | 884,858 | $ | 49.82 | 5 | $ | 18.9 | |||||||||||
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 June 30, 2014. This is calculated as the difference between our closing stock price on June 30, 2014, and the option exercise price, multiplied by the number of in-the-money stock options. The intrinsic value of options exercised during the six months ended June 30, 2014, and 2013, was $4.1 million and $6.9 million, respectively. The actual tax benefit realized for the tax deductions from these option exercises was $1.6 million and $2.8 million for the six months ended June 30, 2014, and 2013, respectively. | |||||||||||||||||
As of June 30, 2014, $2.0 million of compensation cost related to unvested and outstanding stock options was expected to be recognized over a weighted-average period of 1.9 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 stock price volatility is estimated using one to three years of historical data. The table below reflects the assumptions used in the valuation of the outstanding grants at June 30: | |||||||||||||||||
2014 | |||||||||||||||||
Risk-free interest rate | 0.06% – 0.60% | ||||||||||||||||
Expected dividend yield | 5.28% – 5.33% | ||||||||||||||||
Expected volatility | 17% – 23% | ||||||||||||||||
A summary of the activity for the six months ended June 30, 2014, related to performance stock rights accounted for as equity awards is presented below: | |||||||||||||||||
Performance | Weighted-Average | ||||||||||||||||
Stock Rights | Fair Value * | ||||||||||||||||
Outstanding at December 31, 2013 | 85,749 | $ | 46.62 | ||||||||||||||
Granted | 21,146 | 44.28 | |||||||||||||||
Adjustment for shares not distributed | (45,748 | ) | 43.29 | ||||||||||||||
Outstanding at June 30, 2014 | 61,147 | $ | 48.31 | ||||||||||||||
* | 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 six months ended June 30, 2014, and 2013, was $44.28 and $48.50, per performance stock right, respectively. | |||||||||||||||||
A summary of the activity for the six months ended June 30, 2014, related to performance stock rights accounted for as liability awards is presented below: | |||||||||||||||||
Performance | |||||||||||||||||
Stock Rights | |||||||||||||||||
Outstanding at December 31, 2013 | 198,904 | ||||||||||||||||
Granted | 84,529 | ||||||||||||||||
Adjustment for shares not distributed | (39,001 | ) | |||||||||||||||
Outstanding at June 30, 2014 | 244,432 | ||||||||||||||||
The weighted-average fair value of all outstanding performance stock rights accounted for as liability awards as of June 30, 2014, was $85.98 per performance stock right. | |||||||||||||||||
No shares of common stock were distributed for performance stock rights during the six months ended June 30, 2014, because the performance percentage was below the threshold payout level for those rights that were eligible for distribution. The total intrinsic value of shares distributed during the six months ended June 30, 2013, was $8.8 million. The actual tax benefit realized for the tax deductions from the distribution of shares during the six months ended June 30, 2013, was $3.6 million. | |||||||||||||||||
As of June 30, 2014, $7.6 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. | |||||||||||||||||
Restricted Share Units | |||||||||||||||||
A summary of the activity related to all restricted share unit awards (equity and liability awards) for the six months ended June 30, 2014, is presented below: | |||||||||||||||||
Restricted Share | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Unit Awards | |||||||||||||||||
Outstanding at December 31, 2013 | 511,301 | $ | 52.24 | ||||||||||||||
Granted | 214,953 | 55.23 | |||||||||||||||
Dividend equivalents | 12,023 | 54.45 | |||||||||||||||
Vested and released | (204,821 | ) | 49.73 | ||||||||||||||
Forfeited | (3,212 | ) | 54.73 | ||||||||||||||
Outstanding at June 30, 2014 | 530,244 | $ | 54.46 | ||||||||||||||
The weighted-average grant date fair value of restricted share units awarded during the six months ended June 30, 2014, and 2013, was $55.23 and $56.01 per unit, respectively. | |||||||||||||||||
The total intrinsic value of restricted share unit awards vested and released during the six months ended June 30, 2014, and 2013, was $11.1 million and $11.4 million, respectively. The actual tax benefit realized for the tax deductions from the vesting and release of restricted share units during the six months ended June 30, 2014, and 2013, was $4.5 million and $4.6 million, respectively. | |||||||||||||||||
As of June 30, 2014, $16.1 million of compensation cost related to unvested and outstanding restricted share units was expected to be recognized over a weighted-average period of 2.4 years. | |||||||||||||||||
Nonemployee Directors Deferred Stock Units | |||||||||||||||||
Each nonemployee director is granted deferred stock units (DSUs), typically in January of each year. These awards generally vest over one year; therefore, the expense is recognized pro-rata over the year in which the grant occurs. 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. Nonemployee directors also receive forfeitable dividend equivalents in the form of additional DSUs. |
COMMON_EQUITY
COMMON EQUITY | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
COMMON EQUITY | ' | ||||||||||||||||
Common Equity | |||||||||||||||||
We had the following changes to issued common stock during the six months ended June 30, 2014: | |||||||||||||||||
Balance at December 31, 2013 | 79,919,176 | ||||||||||||||||
Shares issued | |||||||||||||||||
Employee Stock Ownership Plan | 31,764 | ||||||||||||||||
Stock Investment Plan | 12,151 | ||||||||||||||||
Balance at June 30, 2014 | 79,963,091 | ||||||||||||||||
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 02/05/14 | Purchasing shares on the open market | ||||||||||||||||
02/05/2013 – 02/04/2014 | Issued new shares | ||||||||||||||||
01/01/2013 – 02/04/2013 | Purchased shares on the open market | ||||||||||||||||
The following table reconciles common shares issued and outstanding: | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
Shares | Average Cost * | Shares | Average Cost * | ||||||||||||||
Common stock issued | 79,963,091 | 79,919,176 | |||||||||||||||
Less: | |||||||||||||||||
Deferred compensation rabbi trust | 433,507 | $ | 48.74 | 473,796 | $ | 48.5 | |||||||||||
Total common shares outstanding | 79,529,584 | 79,445,380 | |||||||||||||||
* | 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. | ||||||||||||||||
Under the merger agreement with Wisconsin Energy Corporation (Wisconsin Energy), we can no longer issue shares of our common stock. | |||||||||||||||||
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. As the obligation for the shares issuable under the deferred compensation plan is accounted for as a liability, the numerator is adjusted for any changes in income or loss that would have resulted had it been accounted for as an equity instrument during the period. | |||||||||||||||||
The following table reconciles our computation of basic and diluted earnings per share: | |||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
(Millions, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) from continuing operations | $ | 8.1 | $ | (3.9 | ) | $ | 161.3 | $ | 178.3 | ||||||||
Discontinued operations, net of tax | (0.1 | ) | (0.8 | ) | (0.2 | ) | 5.3 | ||||||||||
Preferred stock dividends of subsidiary | (0.8 | ) | (0.8 | ) | (1.6 | ) | (1.6 | ) | |||||||||
Noncontrolling interest in subsidiaries | — | 0.1 | 0.1 | 0.1 | |||||||||||||
Net income (loss) attributed to common shareholders | $ | 7.2 | $ | (5.4 | ) | $ | 159.6 | $ | 182.1 | ||||||||
Denominator: | |||||||||||||||||
Average shares of common stock — basic | 80.2 | 79.4 | 80.2 | 79 | |||||||||||||
Effect of dilutive securities | |||||||||||||||||
Stock-based compensation | 0.3 | — | 0.3 | 0.3 | |||||||||||||
Deferred compensation | — | — | — | 0.4 | |||||||||||||
Average shares of common stock — diluted | 80.5 | 79.4 | 80.5 | 79.7 | |||||||||||||
Earnings (loss) per common share | |||||||||||||||||
Basic | $ | 0.09 | $ | (0.07 | ) | $ | 1.99 | $ | 2.31 | ||||||||
Diluted | 0.09 | (0.07 | ) | 1.98 | 2.29 | ||||||||||||
The calculation of diluted earnings per share excluded the following weighted-average outstanding securities that had an anti-dilutive effect: | |||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
(Millions) | 2014 | 2013 * | 2014 | 2013 | |||||||||||||
Stock-based compensation | — | — | 0.4 | 0.2 | |||||||||||||
Deferred compensation | 0.3 | — | 0.3 | — | |||||||||||||
* | Since we had a loss during the period, diluted earnings per share was the same as basic earnings per share, as any impacts would be anti-dilutive. | ||||||||||||||||
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 June 30, 2014, these covenants restricted the payment of any dividends beyond the amount allowed under our subsidiary requirements described above. | |||||||||||||||||
As of June 30, 2014, total restricted net assets were $1,845.8 million. Our equity in undistributed earnings of 50% or less owned investees accounted for by the equity method was $151.7 million at June 30, 2014. | |||||||||||||||||
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. | |||||||||||||||||
Under the merger agreement with Wisconsin Energy, we may not declare or pay any dividends or distributions on our common stock other than the regular quarterly dividend of $0.68 per share. | |||||||||||||||||
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 six months ended June 30, 2014, capital transactions with subsidiaries were as follows (in millions): | |||||||||||||||||
Subsidiary | Dividends To Parent | Return Of | Equity Contributions | ||||||||||||||
Capital To Parent | From Parent | ||||||||||||||||
IBS | $ | — | $ | — | $ | 25 | |||||||||||
ITF (1) | — | — | 33.4 | ||||||||||||||
MERC | — | 27 | — | ||||||||||||||
MGU | — | 13 | — | ||||||||||||||
UPPCO | — | 12.5 | — | ||||||||||||||
WPS | 55.9 | — | 40 | ||||||||||||||
WPS Investments, LLC (2) | 36.8 | — | 10.2 | ||||||||||||||
Total | $ | 92.7 | $ | 52.5 | $ | 108.6 | |||||||||||
(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 June 30, 2014, we had an 86.51% ownership interest, while WPS and UPPCO had an 11.12% and 2.37% ownership interest, respectively. Distributions from WPS Investments, LLC are made to the owners based on their respective ownership percentages. During 2014, all equity contributions to WPS Investments, LLC were made solely by us. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
(Millions) | Cash Flow Hedges | Defined Benefit Plans | Accumulated Other Comprehensive Loss | Cash Flow Hedges | Defined Benefit Plans | Accumulated Other Comprehensive Loss | |||||||||||||||||||
Balance at the beginning of period | $ | (3.7 | ) | $ | (19.9 | ) | $ | (23.6 | ) | $ | (3.1 | ) | $ | (20.1 | ) | $ | (23.2 | ) | |||||||
Other comprehensive loss before reclassifications | — | — | — | — | (0.1 | ) | (0.1 | ) | |||||||||||||||||
Amounts reclassified out of accumulated other comprehensive loss | 0.2 | 0.5 | 0.7 | (0.4 | ) | 0.8 | 0.4 | ||||||||||||||||||
Net current period other comprehensive income (loss) | 0.2 | 0.5 | 0.7 | (0.4 | ) | 0.7 | 0.3 | ||||||||||||||||||
Balance at the end of period | $ | (3.5 | ) | $ | (19.4 | ) | $ | (22.9 | ) | $ | (3.5 | ) | $ | (19.4 | ) | $ | (22.9 | ) | |||||||
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
(Millions) | Cash Flow Hedges | Defined Benefit Plans | Accumulated Other Comprehensive Loss | Cash Flow Hedges | Defined Benefit Plans | Accumulated Other Comprehensive Loss | |||||||||||||||||||
Balance at the beginning of period | $ | (4.2 | ) | $ | (35.1 | ) | $ | (39.3 | ) | $ | (5.2 | ) | $ | (35.7 | ) | $ | (40.9 | ) | |||||||
Other comprehensive income before reclassifications | 0.6 | — | 0.6 | 0.7 | — | 0.7 | |||||||||||||||||||
Amounts reclassified out of accumulated other comprehensive loss | 1.5 | 0.6 | 2.1 | 2.4 | 1.2 | 3.6 | |||||||||||||||||||
Net current period other comprehensive income | 2.1 | 0.6 | 2.7 | 3.1 | 1.2 | 4.3 | |||||||||||||||||||
Balance at the end of period | $ | (2.1 | ) | $ | (34.5 | ) | $ | (36.6 | ) | $ | (2.1 | ) | $ | (34.5 | ) | $ | (36.6 | ) | |||||||
The following table shows the reclassifications out of accumulated other comprehensive loss during the three and six months ended June 30: | |||||||||||||||||||||||||
Amount Reclassified | |||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | Affected Line Item in the Statements of Income | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Losses on cash flow hedges | |||||||||||||||||||||||||
Utility commodity derivative contracts | $ | — | $ | — | $ | — | $ | 0.2 | Operating and maintenance expense (1) (2) | ||||||||||||||||
Nonregulated commodity derivative contracts | — | 2.1 | — | 3.2 | Nonregulated revenues (2) | ||||||||||||||||||||
Interest rate hedges | 0.2 | 0.3 | 0.5 | 0.5 | Interest expense | ||||||||||||||||||||
0.2 | 2.4 | 0.5 | 3.9 | Total before tax | |||||||||||||||||||||
— | 0.9 | 0.9 | 1.5 | Tax expense | |||||||||||||||||||||
0.2 | 1.5 | (0.4 | ) | 2.4 | Net of tax | ||||||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||
Amortization of prior service credits | — | — | (0.1 | ) | (0.1 | ) | (3) | ||||||||||||||||||
Amortization of net actuarial losses | 0.7 | 1 | 1.4 | 2.1 | (3) | ||||||||||||||||||||
0.7 | 1 | 1.3 | 2 | Total before tax | |||||||||||||||||||||
0.2 | 0.4 | 0.5 | 0.8 | Tax expense | |||||||||||||||||||||
0.5 | 0.6 | 0.8 | 1.2 | Net of tax | |||||||||||||||||||||
Total reclassifications | $ | 0.7 | $ | 2.1 | $ | 0.4 | $ | 3.6 | |||||||||||||||||
(1) | This item relates to changes in the price of natural gas used to support utility operations. | ||||||||||||||||||||||||
(2) | We no longer designate commodity contracts as cash flow hedges. | ||||||||||||||||||||||||
(3) | These items are included in the computation of net periodic benefit cost. See Note 15, Employee Benefit Plans, for more information. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2014 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Determination Methodology and Factors [Abstract] | ' |
VARIABLE INTEREST ENTITIES | ' |
Variable Interest Entities | |
Unconsolidated Variable Interest Entities | |
In 2012, ITF formed AMP Trillium LLC as a joint venture with AMP Americas LLC. This joint venture was established to own and operate compressed natural gas fueling stations. ITF owns 30% and AMP Americas LLC owns 70% of the joint venture. At December 31, 2013, ITF was the primary beneficiary of this variable interest entity, and, as a result, we consolidated the assets, liabilities, and statements of income of the joint venture. However, in April 2014, ITF and AMP Americas LLC restructured this joint venture. Due to the restructuring, our influence over the activities that most significantly impact the variable interest entity's economic performance decreased. We have determined that ITF is no longer the primary beneficiary of this variable interest entity and that we are no longer required to consolidate the joint venture. Therefore, we started accounting for this variable interest entity as an equity method investment in April 2014. At June 30, 2014, and December 31, 2013, 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 also not significant. | |
In 2013, ITF formed EVO Trillium LLC as a joint venture with Environmental Alternative Fuels LLC. ITF owns 15% and Environmental Alternative Fuels LLC owns 85% of the joint venture. This joint venture was established to own and operate compressed natural gas fueling stations. We determined that this joint venture is a variable interest entity but that consolidation is not required since we are not its primary beneficiary, as we do not have the power to direct its activities. We instead account for this variable interest entity as an equity method investment. At June 30, 2014, and December 31, 2013, the assets and liabilities on our balance sheets related to our involvement with this variable interest entity consisted of insignificant receivables. Our maximum exposure to loss as a result of involvement with this variable interest entity was also not significant. | |
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 December 2014. 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 this variable interest entity and that consolidation is not required. At June 30, 2014, and December 31, 2013, 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. Our maximum exposure to loss as a result of involvement with this variable interest entity was not significant. In January 2014, we announced an agreement to sell UPPCO. See Note 4, Dispositions, for more information on the pending sale of UPPCO. |
FAIR_VALUE
FAIR VALUE | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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 methods. | |||||||||||||||||||||||||
Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methods 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. | |||||||||||||||||||||||||
Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||||||
We primarily determine fair value using a market-based approach that uses observable market inputs where available, and internally developed inputs only when 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), and price correlation (for cross commodity contracts). These inputs are available through multiple sources, including exchanges and brokers. Transactions valued using these inputs are classified in Level 2. | |||||||||||||||||||||||||
Certain derivatives 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 department 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. | |||||||||||||||||||||||||
We conduct a thorough review of fair value hierarchy classifications on a quarterly basis. | |||||||||||||||||||||||||
In July 2014, we entered into an agreement to sell IES's retail energy business. IES's risk management assets and liabilities reflected below will be included in the sale. See Note 4, Dispositions, for more information. 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: | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Risk Management Assets | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 1.1 | $ | 9.1 | $ | — | $ | 10.2 | |||||||||||||||||
Financial transmission rights (FTRs) | — | — | 5.9 | 5.9 | |||||||||||||||||||||
Petroleum product contracts | 0.3 | — | — | 0.3 | |||||||||||||||||||||
Coal contracts | — | — | 2.7 | 2.7 | |||||||||||||||||||||
IES Segment | |||||||||||||||||||||||||
Natural gas contracts | 20.6 | 29 | 29.9 | 79.5 | |||||||||||||||||||||
Electric contracts | 98.6 | 126.2 | 19.5 | 244.3 | |||||||||||||||||||||
Total Risk Management Assets | $ | 120.6 | $ | 164.3 | $ | 58 | $ | 342.9 | |||||||||||||||||
Investment in exchange-traded funds | $ | 16.8 | $ | — | $ | — | $ | 16.8 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Risk Management Liabilities | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 0.4 | $ | 0.6 | $ | — | $ | 1 | |||||||||||||||||
FTRs | — | — | 0.7 | 0.7 | |||||||||||||||||||||
Coal contracts | — | — | 1.8 | 1.8 | |||||||||||||||||||||
IES Segment | |||||||||||||||||||||||||
Natural gas contracts | 9.5 | 20.3 | 24.9 | 54.7 | |||||||||||||||||||||
Electric contracts | 122.3 | 43.9 | 4.6 | 170.8 | |||||||||||||||||||||
Total Risk Management Liabilities | $ | 132.2 | $ | 64.8 | $ | 32 | $ | 229 | |||||||||||||||||
Contingent consideration related to the acquisition of Compass Energy Services (Compass) * | $ | — | $ | — | $ | 6.6 | $ | 6.6 | |||||||||||||||||
* | In July 2014, IES settled the contingent liability for $4.3 million. | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Risk Management Assets | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 2.4 | $ | 7.7 | $ | — | $ | 10.1 | |||||||||||||||||
FTRs | — | — | 2.1 | 2.1 | |||||||||||||||||||||
Petroleum product contracts | 0.1 | — | — | 0.1 | |||||||||||||||||||||
Coal contracts | — | — | 0.2 | 0.2 | |||||||||||||||||||||
IES Segment | |||||||||||||||||||||||||
Natural gas contracts | 16.3 | 35.2 | 35.6 | 87.1 | |||||||||||||||||||||
Electric contracts | 65.1 | 134.9 | 15.9 | 215.9 | |||||||||||||||||||||
Total Risk Management Assets | $ | 83.9 | $ | 177.8 | $ | 53.8 | $ | 315.5 | |||||||||||||||||
Investment in exchange-traded funds | $ | 15.9 | $ | — | $ | — | $ | 15.9 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Risk Management Liabilities | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 0.5 | $ | 0.6 | $ | — | $ | 1.1 | |||||||||||||||||
FTRs | — | — | 0.3 | 0.3 | |||||||||||||||||||||
Coal contracts | — | — | 2.7 | 2.7 | |||||||||||||||||||||
IES Segment | |||||||||||||||||||||||||
Natural gas contracts | 14.3 | 22 | 25.2 | 61.5 | |||||||||||||||||||||
Electric contracts | 98.8 | 58.7 | 3.5 | 161 | |||||||||||||||||||||
Total Risk Management Liabilities | $ | 113.6 | $ | 81.3 | $ | 31.7 | $ | 226.6 | |||||||||||||||||
Contingent consideration related to the acquisition of Compass * | $ | — | $ | — | $ | 7.8 | $ | 7.8 | |||||||||||||||||
* | In July 2014, IES settled the contingent liability for $4.3 million. | ||||||||||||||||||||||||
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. They also include FTRs, which are used to manage electric transmission congestion costs in the MISO market. See Note 6, Risk Management Activities, for more information. | |||||||||||||||||||||||||
The following tables show net risk management assets transferred between the levels of the fair value hierarchy: | |||||||||||||||||||||||||
IES Segment — Natural Gas Contracts | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | 0.1 | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 0.4 | $ | — | N/A | — | |||||||||||||||||
Transfers into Level 3 from | — | 0.7 | N/A | — | 1.3 | N/A | |||||||||||||||||||
IES Segment — Natural Gas Contracts | |||||||||||||||||||||||||
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | 0.1 | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 0.5 | $ | — | N/A | — | |||||||||||||||||
Transfers into Level 3 from | — | 1.6 | N/A | — | 1.5 | N/A | |||||||||||||||||||
IES Segment — Electric Contracts | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | 0.2 | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 4.1 | $ | — | N/A | (0.1 | ) | ||||||||||||||||
Transfers into Level 3 from | — | 3.8 | N/A | — | 6.2 | N/A | |||||||||||||||||||
IES Segment — Electric Contracts | |||||||||||||||||||||||||
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | 0.2 | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 8.5 | $ | — | N/A | 5.4 | |||||||||||||||||
Transfers into Level 3 from | — | 6.4 | N/A | — | 6.2 | 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 amounts and percentages listed in the table below represent the range of unobservable inputs used in the valuations that individually had a significant impact on the fair value determination and caused a derivative to be classified as Level 3 at June 30, 2014: | |||||||||||||||||||||||||
Fair Value (Millions) | |||||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Unobservable Input | Average or Range | |||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
FTRs | $ | 5.9 | $ | 0.7 | Market-based | Forward market prices ($/megawatt-month) (1) | $222.54 | ||||||||||||||||||
Coal contracts | 2.7 | 1.8 | Market-based | Forward market prices ($/ton) (2) | $12.49 — $15.90 | ||||||||||||||||||||
IES Segment | |||||||||||||||||||||||||
Natural gas contracts | 29.9 | 24.9 | Market-based | Forward market prices ($/dekatherm) (3) | ($1.55) — $8.68 | ||||||||||||||||||||
Probability of default (4) | 11.7% — 51.0% | ||||||||||||||||||||||||
Electric contracts | 19.5 | 4.6 | Market-based | Forward market prices ($/megawatt-hours) (3) | ($3.55) — $12.13 | ||||||||||||||||||||
Probability of default (4) | 26.00% | ||||||||||||||||||||||||
Option volatilities (5) | 18.8% — 163.5% | ||||||||||||||||||||||||
Monthly curve shaping (6) | (65.2)% — (14.8)% | ||||||||||||||||||||||||
Contingent consideration related to the acquisition of Compass | N/A | 6.6 | Income-based | Growth rate (7) | (34.3)% — 48.7% | ||||||||||||||||||||
(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. In July 2014, IES settled this contingent liability for $4.3 million. | ||||||||||||||||||||||||
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. Changes in the growth rate used to value the contingent consideration will not impact its fair value as IES settled the contingent liability for $4.3 million in July 2014. | |||||||||||||||||||||||||
The following tables set forth a reconciliation of changes in the fair value of items categorized as Level 3 measurements: | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | IES Segment | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration | FTRs | Coal | Total | |||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance at the beginning of the period | $ | 5.5 | $ | 18.7 | $ | (7.8 | ) | $ | 0.7 | $ | 0.3 | $ | 17.4 | ||||||||||||
Net realized and unrealized gains (losses) included in earnings | 0.2 | (1.0 | ) | — | — | — | (0.8 | ) | |||||||||||||||||
Net unrealized gains recorded as regulatory assets or liabilities | — | — | — | 0.2 | 0.8 | 1 | |||||||||||||||||||
Purchases | — | 0.6 | — | 5.6 | — | 6.2 | |||||||||||||||||||
Sales | — | — | — | — | — | — | |||||||||||||||||||
Settlements | (1.0 | ) | (3.1 | ) | 1.2 | (1.3 | ) | (0.2 | ) | (4.4 | ) | ||||||||||||||
Net transfers into Level 3 | 0.7 | 3.8 | — | — | — | 4.5 | |||||||||||||||||||
Net transfers out of Level 3 | (0.4 | ) | (4.1 | ) | — | — | — | (4.5 | ) | ||||||||||||||||
Balance at the end of the period | $ | 5 | $ | 14.9 | $ | (6.6 | ) | $ | 5.2 | $ | 0.9 | $ | 19.4 | ||||||||||||
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period | $ | 0.2 | $ | (1.0 | ) | $ | — | $ | — | $ | — | $ | (0.8 | ) | |||||||||||
Three Months Ended June 30, 2013 | IES Segment | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration | FTRs | Coal | Total | |||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance at the beginning of the period | $ | 1.7 | $ | 6.1 | $ | — | $ | 0.9 | $ | (4.6 | ) | $ | 4.1 | ||||||||||||
Net realized and unrealized (losses) gains included in earnings | (1.4 | ) | (9.4 | ) | — | 0.1 | — | (10.7 | ) | ||||||||||||||||
Net unrealized (losses) gains recorded as regulatory assets or liabilities | — | — | — | (0.7 | ) | 3.6 | 2.9 | ||||||||||||||||||
Purchases | 7 | 0.9 | (7.7 | ) | 4.9 | — | 5.1 | ||||||||||||||||||
Sales | — | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||||||
Settlements | (0.9 | ) | 0.2 | — | (1.2 | ) | (1.3 | ) | (3.2 | ) | |||||||||||||||
Net transfers into Level 3 | 1.3 | 6.2 | — | — | — | 7.5 | |||||||||||||||||||
Net transfers out of Level 3 | — | 0.1 | — | — | — | 0.1 | |||||||||||||||||||
Balance at the end of the period | $ | 7.7 | $ | 4.1 | $ | (7.7 | ) | $ | 3.9 | $ | (2.3 | ) | $ | 5.7 | |||||||||||
Net unrealized losses included in earnings related to instruments still held at the end of the period | $ | (1.4 | ) | $ | (9.4 | ) | $ | — | $ | — | $ | — | $ | (10.8 | ) | ||||||||||
Six Months Ended June 30, 2014 | IES Segment | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration | FTRs | Coal | Total | |||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance at the beginning of the period | $ | 10.4 | $ | 12.4 | $ | (7.8 | ) | $ | 1.8 | $ | (2.5 | ) | $ | 14.3 | |||||||||||
Net realized and unrealized (losses) gains included in earnings | (6.0 | ) | 11.6 | — | 0.4 | — | 6 | ||||||||||||||||||
Net unrealized gains recorded as regulatory assets or liabilities | — | — | — | 0.2 | 3 | 3.2 | |||||||||||||||||||
Purchases | — | 1.3 | — | 5.5 | — | 6.8 | |||||||||||||||||||
Sales | — | (0.7 | ) | — | — | — | (0.7 | ) | |||||||||||||||||
Settlements | (0.5 | ) | (7.6 | ) | 1.2 | (2.7 | ) | 0.4 | (9.2 | ) | |||||||||||||||
Net transfers into Level 3 | 1.6 | 6.4 | — | — | — | 8 | |||||||||||||||||||
Net transfers out of Level 3 | (0.5 | ) | (8.5 | ) | — | — | — | (9.0 | ) | ||||||||||||||||
Balance at the end of the period | $ | 5 | $ | 14.9 | $ | (6.6 | ) | $ | 5.2 | $ | 0.9 | $ | 19.4 | ||||||||||||
Net unrealized (losses) gains included in earnings related to instruments still held at the end of the period | $ | (6.0 | ) | $ | 11.6 | $ | — | $ | — | $ | — | $ | 5.6 | ||||||||||||
Six Months Ended June 30, 2013 | IES Segment | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration | FTRs | Coal | Total | |||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance at the beginning of the period | $ | 3.9 | $ | (4.3 | ) | $ | — | $ | 2 | $ | (6.5 | ) | $ | (4.9 | ) | ||||||||||
Net realized and unrealized (losses) gains included in earnings | (2.9 | ) | 5.7 | — | 0.4 | — | 3.2 | ||||||||||||||||||
Net unrealized (losses) gains recorded as regulatory assets or liabilities | — | — | — | (0.9 | ) | 6.7 | 5.8 | ||||||||||||||||||
Purchases | 7 | 1.6 | (7.7 | ) | 4.9 | — | 5.8 | ||||||||||||||||||
Sales | — | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||||||
Settlements | (1.8 | ) | 0.3 | — | (2.4 | ) | (2.5 | ) | (6.4 | ) | |||||||||||||||
Net transfers into Level 3 | 1.5 | 6.2 | — | — | — | 7.7 | |||||||||||||||||||
Net transfers out of Level 3 | — | (5.4 | ) | — | — | — | (5.4 | ) | |||||||||||||||||
Balance at the end of the period | $ | 7.7 | $ | 4.1 | $ | (7.7 | ) | $ | 3.9 | $ | (2.3 | ) | $ | 5.7 | |||||||||||
Net unrealized (losses) gains included in earnings related to instruments still held at the end of the period | $ | (2.9 | ) | $ | 5.7 | $ | — | $ | — | $ | — | $ | 2.8 | ||||||||||||
Realized and unrealized gains and losses included in earnings related to IES’s 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: | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(Millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||
Long-term debt | $ | 2,956.20 | $ | 3,083.10 | $ | 3,056.20 | $ | 3,031.60 | |||||||||||||||||
Preferred stock of subsidiary | 51.1 | 60.9 | 51.1 | 61.2 | |||||||||||||||||||||
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, and outstanding commercial paper, the carrying amount for each of these items approximates fair value. |
ADVERTISING_COSTS
ADVERTISING COSTS | 6 Months Ended |
Jun. 30, 2014 | |
Marketing and Advertising Expense [Abstract] | ' |
ADVERTISING COSTS | ' |
Advertising Costs | |
Costs associated with certain natural gas and electric direct-response advertising campaigns at IES 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 $4.3 million and $5.2 million as of June 30, 2014, and December 31, 2013, 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 six months ended June 30, 2014, and 2013. | |
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 $0.4 million and $1.0 million for the three months ended June 30, 2014, and 2013, respectively. The amortization of direct-response advertising costs was $1.7 million and $4.0 million for the six months ended June 30, 2014, and 2013, respectively. | |
We expense all advertising costs as incurred, except for those capitalized as direct-response advertising, as discussed above. Other advertising expense was $2.1 million for the three months ended June 30, 2014, and 2013. Other advertising expense was $3.8 million and $4.4 million for the six months ended June 30, 2014, and 2013, respectively. |
REGULATORY_ENVIRONMENT
REGULATORY ENVIRONMENT | 6 Months Ended |
Jun. 30, 2014 | |
Regulated Operations [Abstract] | ' |
REGULATORY ENVIRONMENT | ' |
Regulatory Environment | |
Wisconsin | |
2015 Rate Case | |
In April 2014, WPS filed an application with the PSCW to increase retail electric rates $76.8 million and to decrease natural gas rates $1.6 million, with rates expected to be effective January 1, 2015. WPS's request reflects a 10.60% return on common equity and a target common equity ratio of 50.51% in WPS's regulatory capital structure. | |
The proposed retail electric rate increase is primarily driven by the completion of a partial refund to customers of the 2013 fuel cost over-collections in 2014 rates, which kept rates flat in 2014, as well as a reduction in refunds associated with decoupling. In 2015, fuel and purchased power costs are expected to increase, as are transmission costs and general inflation. The proposed retail electric rate increase also includes WPS's request to recover deferred costs over four years related to the 2013 acquisition of the Fox Energy Center. Finally, capital costs associated with both previously approved environmental upgrades at the Columbia plant as well as our efforts to improve electric reliability by converting historically low performance overhead distribution lines to underground are also contributing to the requested increase in retail electric rates. The requested increase in retail electric rates was partially offset by the remaining 2013 fuel cost over-collections to customers. In July 2014, the PSCW authorized WPS to refund the remaining 2013 fuel cost over-collections to customers, all in 2014 rates, which differed from the original application to refund them in 2015 and 2016 rates. A final decision by the PSCW on the 2015 rates is expected in December 2014. | |
The proposed retail natural gas rate decrease is driven by 2013 decoupling over-collections, which will be refunded to customers in 2015. An increase in non-fuel operating and maintenance costs, including the impact of general inflation, and an increase in return on equity partially offset the effect of the 2013 decoupling over-collections. | |
In May 2014, WPS filed its proposed electric and natural gas rate designs with the PSCW. These rate designs include significantly higher fixed charges, which better matches the related fixed costs of providing service. The PSCW will review the new rate design as part of the rate-setting process, with a final decision expected in December 2014. | |
2014 Rates | |
In December 2013, the PSCW issued a final written order for WPS, effective January 1, 2014. It authorized a net retail electric rate decrease of $12.8 million and a net retail natural gas rate increase of $4.0 million, reflecting a 10.20% return on common equity. The order also included a common equity ratio of 50.14% in WPS's regulatory capital structure. The retail electric rate impact consisted of a rate increase, including recovery of the difference between the 2012 fuel refund and the 2013 rate increase discussed below, entirely offset by a portion of estimated fuel cost over-collections from customers in 2013. Retail electric rates were further decreased by 2012 decoupling over-collections to be returned to customers in 2014. The retail natural gas rate impact consisted of a rate decrease, which was more than offset by the positive impact of 2012 decoupling under-collections to be recovered from customers in 2014. Both the retail electric and retail natural gas rate changes included the recovery of pension and other employee benefit increases that were deferred in the 2013 rate case, as discussed below. The PSCW also authorized the recovery of prudently incurred 2014 environmental mitigation project costs related to compliance with a Consent Decree signed in January 2013 related to the Pulliam and Weston sites. See Note 13, Commitments and Contingencies, for more information. Additionally, the order required WPS to terminate its existing decoupling mechanism, beginning January 1, 2014. | |
2013 Rates | |
In December 2012, the PSCW issued a final written order for WPS, effective January 1, 2013. The order included a $28.5 million retail electric rate increase, partially offset by the 2012 fuel refund of $20.5 million. The difference between the 2012 fuel refund and the rate increase was deferred for recovery in 2014 rates. As a result, there was no change to customers' 2013 retail electric rates. The order also included a $3.4 million retail natural gas rate decrease. The order reflected a 10.30% return on common equity and a common equity ratio of 51.61% in WPS's regulatory capital structure. The rate changes included deferrals of $7.3 million for retail electric and $2.1 million for retail natural gas of pension and other employee benefit costs that are being recovered in 2014 rates. In addition, 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 order also authorized the recovery of direct Cross State Air Pollution Rule costs incurred through the end of 2012. Lastly, the order authorized WPS to switch from production tax credits to Section 1603 Grants for the Crane Creek wind project. | |
A decoupling mechanism for natural gas and electric residential and small commercial and industrial customers was approved on a pilot basis as part of the order. The mechanism was based on total rate case-approved margins, rather than being calculated on a per-customer basis. The mechanism did not cover all customer classes, and it included an annual $14.0 million cap for electric service and an annual $8.0 million cap for natural gas service. Amounts recoverable from or refundable to customers were subject to these caps. | |
Michigan | |
2014 MGU Rates | |
In November 2013, the MPSC issued a final written order for MGU, effective January 1, 2014. The order authorized a retail natural gas rate increase of $4.5 million. 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 required MGU to terminate its existing decoupling mechanism after December 31, 2013, and replace it with a new decoupling mechanism based on total margins, beginning January 1, 2015. The new decoupling mechanism does not cover variations in volumes due to actual weather being different from rate case-assumed weather. The rate order also terminated 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 Rates | |
In December 2013, the MPSC issued a final written order for UPPCO, effective January 1, 2014. The order authorized a retail electric rate increase of $5.8 million. The rates reflected a 10.15% return on common equity and a common equity ratio of 56.74% in UPPCO's regulatory capital structure. The order required UPPCO to terminate its existing decoupling mechanism after December 31, 2013. In addition, the order required UPPCO to achieve certain minimum line clearance performance metrics for recovery of costs related to clearing trees and other natural obstructions away from power lines. If these metrics are not achieved, or if the minimum spending level is not reached, UPPCO may be required to refund certain amounts to customers. UPPCO is on course to achieve the required annual performance metrics by year end. | |
Illinois | |
2015 Rate Cases | |
In February 2014, PGL and NSG filed applications with the ICC to increase retail natural gas rates $128.9 million and $7.1 million, respectively, with rates expected to be effective in early 2015. Both PGL's and NSG's requests reflect a 10.25% return on common equity. The requests reflect target common equity ratios of 50.31% for PGL and 50.41% for NSG in their respective regulatory capital structures. The proposed retail natural gas rate increases are primarily driven by increased capital investments, in particular for main replacement, a loss in revenues as a result of lower projected sales volumes, increased costs of debt and common equity, and increased operating expenses. The increase in operating expenses relates to pipeline safety and other compliance work, a general wage increase, higher depreciation costs, and higher invested capital taxes. PGL's application also removes from the proposed 2015 rates the investment and related expenses that PGL plans to recover through its new Qualifying Infrastructure Plant rider, as discussed below. PGL and NSG proposed no changes to the continued use of their decoupling mechanisms and uncollectible expense true-up mechanisms. | |
The ICC staff and intervenors filed their direct testimony in July 2014. The ICC staff recommended rate increases of $97.1 million and $3.5 million for PGL and NSG, respectively, which reflected a 9.06% return on common equity for both companies. The intervenors recommended a rate increase of $54.8 million for PGL and a rate decrease of $1.0 million for NSG, which reflected a 9.15% return on common equity for both companies. Staff and intervenors both recommended a common equity ratio of 50.31% for PGL and 50.41% for NSG in their respective regulatory capital structures. | |
In August 2014, PGL and NSG filed rebuttal testimony and revised their rate increase requests to $102.3 million and $6.5 million, respectively. The revised requests were primarily driven by updated capital investment amounts, including main replacement for PGL; certain updated pension and employee benefit costs based on a recent actuarial study; and adjustments for uncontested operating expenses. A final decision on the 2015 rates is expected by the ICC in January of 2015. | |
Qualifying Infrastructure Plant 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 recovery mechanism for prudently incurred costs to upgrade Illinois natural gas infrastructure that will be collected through a surcharge on customer bills. This Act eliminated a requirement for PGL and NSG to file biennial rate proceedings under existing Illinois coal-to-gas legislation. In September 2013, PGL filed with the ICC requesting the proposed rider, which was approved in January 2014. The rider became effective on January 1, 2014. | |
2013 Rates | |
In June 2013, the ICC issued a final written order for PGL and NSG, effective June 27, 2013. The order authorized a retail natural gas rate increase of $57.2 million for PGL and $6.6 million for NSG. The rates for PGL reflected a 9.28% return on common equity and a common equity ratio of 50.43% in PGL's regulatory capital structure. The rates for NSG reflected a 9.28% return on common equity and a common equity ratio of 50.32% in NSG's regulatory capital structure. The rate order also allowed PGL and NSG to continue the use of their decoupling mechanisms, as affirmed by the Illinois Appellate Court (Court). In addition, the ICC is required to conduct an investigation to monitor the costs and progress of the accelerated natural gas main replacement program. | |
In August 2013, the ICC granted certain rehearing requests on tax-related issues filed by PGL, NSG, and other intervenors. PGL and NSG 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 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. In December 2013, the ICC evaluated and approved a correction of the computational errors and rejected the intervenors' proposed exclusion of the 2012 tax NOL. Customer rates were increased by $2.6 million for PGL and $0.1 million for NSG for the impact of this correction, effective January 1, 2014. In January 2014, the Illinois Attorney General and Citizens Utility Board each filed an appeal with the Court. | |
2012 Decoupling | |
The ICC issued a final written order, effective January 21, 2012, which approved permanent decoupling mechanisms for PGL and NSG. The Illinois Attorney General and Citizens Utility Board appealed to the Court the ICC's authority to approve PGL's and NSG's decoupling mechanisms 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 and directing PGL and NSG to track amounts that would be due to customers or the companies from the permanent decoupling mechanisms. 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 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 was in place for 2013. In June 2013, the Illinois Attorney General and Citizens Utility Board petitioned the Illinois Supreme Court to review the Court's decision. The Illinois Supreme Court granted the request in September 2013, and briefing is in progress. The Illinois Supreme Court has no deadline by which it must act. Decoupling amounts recorded in 2012 were fully recovered and amounts in 2013 are being refunded to customers in 2014. Decoupling amounts in 2014 will continue to be accrued, absent an adverse Illinois Supreme Court decision. | |
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. MERC's request reflected a 10.75% return on common equity and a common equity ratio of 50.31% in MERC's 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 will have a positive rate effect in the future, and operating and maintenance projects to ensure reliability and safety for customers. | |
In December 2013, the MPUC approved an interim rate order authorizing a retail natural gas rate increase for MERC of $10.5 million, effective January 1, 2014. The interim rates reflect a 9.70% return on common equity and a common equity ratio of 50.31% in MERC's regulatory capital structure. The interim rate increase is subject to refund pending the final rate order. | |
In April 2014, MERC filed rebuttal testimony in response to recommendations of the Department of Commerce and the Attorney General to increase retail natural gas rates between $3.5 million and $5.7 million. MERC's rebuttal testimony reflected a revised increase in retail natural gas rates of $12.2 million. The revised request is lower than the initial application and is primarily driven by increased sales volume forecasts and revised natural gas costs based on more recent data available. Lower pension and benefit cost estimates also contributed to the revised request. The revised request reflects a 10.75% return on common equity and a common equity ratio of 50.31% in MERC's regulatory capital structure, which did not change from the initial application. Technical hearings were completed in May 2014, and initial briefs were filed in June 2014. A final order is expected in the fourth quarter of 2014. | |
2011 Rates Finalized in 2013 | |
In July 2012, the MPUC approved a final written order for MERC, effective January 1, 2013. The order authorized a retail natural gas rate increase of $11.0 million. The rates reflected a 9.70% return on common equity and a common equity ratio of 50.48% in MERC's 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. |
SEGMENTS_OF_BUSINESS
SEGMENTS OF BUSINESS | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
SEGMENTS OF BUSINESS | ' | ||||||||||||||||||||||||||||||||
Segments of Business | |||||||||||||||||||||||||||||||||
At June 30, 2014, 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. See Note 4, Dispositions, for information on the pending sale of UPPCO. | ||||||||||||||||||||||||||||||||
• | The electric transmission investment segment includes our approximate 34% ownership interest in ATC. ATC is a federally regulated electric transmission company. | ||||||||||||||||||||||||||||||||
• | The IES segment consists of a diversified nonregulated retail energy supply and services company that primarily sells electricity and natural gas in deregulated markets. See Note 4, Dispositions, for information on the pending sale of IES's retail energy business. In addition, IES invests in energy assets with renewable attributes, primarily distributed solar assets. These renewable energy asset operations will be included in the holding company and other segment after the sale of IES's retail energy business has closed. | ||||||||||||||||||||||||||||||||
• | 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 | IES | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Company | Eliminations | Energy Group | |||||||||||||||||||||||||||
Investment | Operations | and Other | Consolidated | ||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||||||
External revenues | $ | 493.5 | $ | 312.6 | $ | — | $ | 806.1 | $ | 600 | $ | 26.5 | $ | — | $ | 1,432.60 | |||||||||||||||||
Intersegment revenues | 2.8 | — | — | 2.8 | 0.4 | 0.3 | (3.5 | ) | — | ||||||||||||||||||||||||
Goodwill impairment loss | — | — | — | — | 6.7 | — | — | 6.7 | |||||||||||||||||||||||||
Merger transaction costs | — | — | — | — | — | 5.9 | — | 5.9 | |||||||||||||||||||||||||
Transaction costs related to pending sale of UPPCO | — | — | — | — | — | 0.9 | — | 0.9 | |||||||||||||||||||||||||
Transaction costs related to pending sale of IES retail energy business | — | — | — | — | — | 0.8 | — | 0.8 | |||||||||||||||||||||||||
Depreciation and amortization expense | 36.9 | 26.3 | — | 63.2 | 3 | 6.9 | (0.2 | ) | 72.9 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 23 | 23 | 0.8 | 0.1 | — | 23.9 | |||||||||||||||||||||||||
Miscellaneous income (expense) | (0.4 | ) | 2.8 | — | 2.4 | 0.4 | 5.4 | (3.2 | ) | 5 | |||||||||||||||||||||||
Interest expense | 13.2 | 12.1 | — | 25.3 | 0.5 | 16.1 | (3.2 | ) | 38.7 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | (7.3 | ) | 11 | 9.2 | 12.9 | 2.4 | (7.1 | ) | — | 8.2 | |||||||||||||||||||||||
Net income (loss) from continuing operations | (10.5 | ) | 17.8 | 13.8 | 21.1 | (1.5 | ) | (11.5 | ) | — | 8.1 | ||||||||||||||||||||||
Discontinued operations | — | — | — | — | (0.1 | ) | — | — | (0.1 | ) | |||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.1 | ) | (0.7 | ) | — | (0.8 | ) | — | — | — | (0.8 | ) | |||||||||||||||||||||
Net income (loss) attributed to common shareholders | (10.6 | ) | 17.1 | 13.8 | 20.3 | (1.6 | ) | (11.5 | ) | — | 7.2 | ||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated Operations | ||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | IES | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Company | Eliminations | Energy Group | |||||||||||||||||||||||||||
Investment | Operations | and Other | Consolidated | ||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||||||
External revenues | $ | 367.4 | $ | 327 | $ | — | $ | 694.4 | $ | 412.6 | $ | 9 | $ | — | $ | 1,116.00 | |||||||||||||||||
Intersegment revenues | 2.5 | — | — | 2.5 | 0.3 | 0.3 | (3.1 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 32.3 | 25.8 | — | 58.1 | 2.8 | 4.8 | (0.2 | ) | 65.5 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 22 | 22 | 0.5 | 0.3 | — | 22.8 | |||||||||||||||||||||||||
Miscellaneous income | 0.2 | 2.2 | — | 2.4 | 1.4 | 5.1 | (3.4 | ) | 5.5 | ||||||||||||||||||||||||
Interest expense | 11.9 | 8.5 | — | 20.4 | 0.5 | 11.1 | (3.4 | ) | 28.6 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | (0.7 | ) | 15.7 | 8.4 | 23.4 | (22.2 | ) | (4.5 | ) | — | (3.3 | ) | |||||||||||||||||||||
Net income (loss) from continuing operations | 1.7 | 24.3 | 13.6 | 39.6 | (41.1 | ) | (2.4 | ) | — | (3.9 | ) | ||||||||||||||||||||||
Discontinued operations | — | — | — | — | (0.7 | ) | (0.1 | ) | — | (0.8 | ) | ||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.2 | ) | (0.6 | ) | — | (0.8 | ) | — | — | — | (0.8 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | 1.5 | 23.7 | 13.6 | 38.8 | (41.8 | ) | (2.4 | ) | — | (5.4 | ) | ||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated Operations | ||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | IES | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Company | Eliminations | Energy Group | |||||||||||||||||||||||||||
Investment | Operations | and Other | Consolidated | ||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||||||
External revenues | $ | 1,761.00 | $ | 661.8 | $ | — | $ | 2,422.80 | $ | 1,889.60 | $ | 45.1 | $ | — | $ | 4,357.50 | |||||||||||||||||
Intersegment revenues | 7.3 | — | — | 7.3 | 3 | 0.7 | (11.0 | ) | — | ||||||||||||||||||||||||
Goodwill impairment loss | — | — | — | — | 6.7 | — | — | 6.7 | |||||||||||||||||||||||||
Merger transaction costs | — | — | — | — | — | 5.9 | — | 5.9 | |||||||||||||||||||||||||
Transaction costs related to pending sale of UPPCO | — | — | — | — | — | 0.9 | — | 0.9 | |||||||||||||||||||||||||
Transaction costs related to pending sale of IES retail energy business | — | — | — | — | — | 0.8 | — | 0.8 | |||||||||||||||||||||||||
Depreciation and amortization expense | 73.3 | 51.9 | — | 125.2 | 5.9 | 13.4 | (0.3 | ) | 144.2 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 45.5 | 45.5 | 0.9 | 0.4 | — | 46.8 | |||||||||||||||||||||||||
Miscellaneous income (expense) | (0.1 | ) | 6.3 | — | 6.2 | 0.7 | 10.8 | (6.7 | ) | 11 | |||||||||||||||||||||||
Interest expense | 26.6 | 23.8 | — | 50.4 | 1 | 33.1 | (6.7 | ) | 77.8 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | 59.4 | 29.1 | 18 | 106.5 | 8.3 | (16.8 | ) | — | 98 | ||||||||||||||||||||||||
Net income (loss) from continuing operations | 88.7 | 49.6 | 27.5 | 165.8 | 9.4 | (13.9 | ) | — | 161.3 | ||||||||||||||||||||||||
Discontinued operations | — | — | — | — | (0.2 | ) | — | — | (0.2 | ) | |||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.2 | ) | (1.4 | ) | — | (1.6 | ) | — | — | — | (1.6 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | 88.5 | 48.2 | 27.5 | 164.2 | 9.2 | (13.8 | ) | — | 159.6 | ||||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated Operations | ||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | IES | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Company | Eliminations | Energy Group | |||||||||||||||||||||||||||
Investment | Operations | and Other | Consolidated | ||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||||||
External revenues | $ | 1,159.40 | $ | 658.8 | $ | — | $ | 1,818.20 | $ | 958 | $ | 18 | $ | — | $ | 2,794.20 | |||||||||||||||||
Intersegment revenues | 4.4 | — | — | 4.4 | 0.6 | 0.7 | (5.7 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 64.5 | 47.3 | — | 111.8 | 5.5 | 9.4 | (0.3 | ) | 126.4 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 43.7 | 43.7 | 0.7 | 0.7 | — | 45.1 | |||||||||||||||||||||||||
Miscellaneous income | 0.4 | 3.8 | — | 4.2 | 1.8 | 12.3 | (7.1 | ) | 11.2 | ||||||||||||||||||||||||
Interest expense | 24.6 | 17.6 | — | 42.2 | 1 | 21.8 | (7.1 | ) | 57.9 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | 62.6 | 31.8 | 16.7 | 111.1 | 5.1 | (9.9 | ) | — | 106.3 | ||||||||||||||||||||||||
Net income (loss) from continuing operations | 91.5 | 53.6 | 27 | 172.1 | 10.2 | (4.0 | ) | — | 178.3 | ||||||||||||||||||||||||
Discontinued operations | — | — | — | — | (0.6 | ) | 5.9 | — | 5.3 | ||||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.3 | ) | (1.3 | ) | — | (1.6 | ) | — | — | — | (1.6 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income attributed to common shareholders | 91.2 | 52.3 | 27 | 170.5 | 9.6 | 2 | — | 182.1 | |||||||||||||||||||||||||
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
NEW ACCOUNTING PRONOUNCEMENTS | ' |
New Accounting Pronouncements | |
Recently Issued Accounting Guidance Not Yet Effective | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers." This ASU supersedes the revenue recognition requirements in Topic 605 of the FASB's Accounting Standards Codification and most industry-specific guidance throughout the Codification. The guidance is based on the principle that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts. The guidance is effective for us for the reporting period ending March 31, 2017. The standard requires either retrospective application by restating each prior period presented in the financial statements, or modified retrospective application by recording the cumulative effect of prior reporting periods to beginning retained earnings in the year that the standard becomes effective. Management is currently evaluating the impact that the adoption of this standard will have on our financial statements. | |
In April 2014, the FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." The guidance raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance is effective for us for the reporting period ending March 31, 2015. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. | |
In January 2014, the FASB issued ASU 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects." The guidance allows investors to use the proportional amortization method to account for investments in qualified affordable housing projects if certain conditions are met. Under that method, which replaces the effective yield method, an investor amortizes the cost of its investment, in proportion to the tax credits and other tax benefits it receives, to income tax expense. The guidance also requires new disclosures for all investments in these types of projects. The guidance is effective for us for the reporting period ending March 31, 2015. Although we have investments in affordable housing projects, adoption of this guidance is not expected to have a significant impact on our financial statements. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting policies | ' | |
Consolidation | ' | |
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. | ||
Basis of accounting | ' | |
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, 2013. 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. | ||
Reclassification | ' | |
Assets and liabilities associated with the pending sale of UPPCO were reclassified as held for sale on our December 31, 2013, balance sheet to be consistent with the current period presentation. See Note 4, Dispositions, for more information on the pending sale of UPPCO. | ||
Cash and cash equivalents | ' | |
Short-term investments with an original maturity of three months or less are reported as cash equivalents. | ||
Inventory | ' | |
PGL and NSG price natural gas storage injections at the calendar year average of the costs of natural gas supply purchased. Withdrawals from storage are priced on the Last-in, First-out (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 taxes | ' | |
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 | ' | |
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. As the obligation for the shares issuable under the deferred compensation plan is accounted for as a liability, the numerator is adjusted for any changes in income or loss that would have resulted had it been accounted for as an equity instrument during the period. | ||
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 methods. | ||
Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methods 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. | ||
Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||
We primarily determine fair value using a market-based approach that uses observable market inputs where available, and internally developed inputs only when 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), and price correlation (for cross commodity contracts). These inputs are available through multiple sources, including exchanges and brokers. Transactions valued using these inputs are classified in Level 2. | ||
Certain derivatives 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 department 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. | ||
We conduct a thorough review of fair value hierarchy classifications on a quarterly basis. | ||
Fair value transfers | ' | |
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. | ||
Advertising costs | ' | |
Costs associated with certain natural gas and electric direct-response advertising campaigns at IES 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 $4.3 million and $5.2 million as of June 30, 2014, and December 31, 2013, 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 six months ended June 30, 2014, and 2013. | ||
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 $0.4 million and $1.0 million for the three months ended June 30, 2014, and 2013, respectively. The amortization of direct-response advertising costs was $1.7 million and $4.0 million for the six months ended June 30, 2014, and 2013, respectively. | ||
We expense all advertising costs as incurred, except for those capitalized as direct-response advertising, as discussed above. Other advertising expense was $2.1 million for the three months ended June 30, 2014, and 2013. Other advertising expense was $3.8 million and $4.4 million for the six months ended June 30, 2014, and 2013, respectively. | ||
New accounting pronouncements | ' | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers." This ASU supersedes the revenue recognition requirements in Topic 605 of the FASB's Accounting Standards Codification and most industry-specific guidance throughout the Codification. The guidance is based on the principle that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts. The guidance is effective for us for the reporting period ending March 31, 2017. The standard requires either retrospective application by restating each prior period presented in the financial statements, or modified retrospective application by recording the cumulative effect of prior reporting periods to beginning retained earnings in the year that the standard becomes effective. Management is currently evaluating the impact that the adoption of this standard will have on our financial statements. | ||
In April 2014, the FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." The guidance raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance is effective for us for the reporting period ending March 31, 2015. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. | ||
In January 2014, the FASB issued ASU 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects." The guidance allows investors to use the proportional amortization method to account for investments in qualified affordable housing projects if certain conditions are met. Under that method, which replaces the effective yield method, an investor amortizes the cost of its investment, in proportion to the tax credits and other tax benefits it receives, to income tax expense. The guidance also requires new disclosures for all investments in these types of projects. The guidance is effective for us for the reporting period ending March 31, 2015. Although we have investments in affordable housing projects, adoption of this guidance is not expected to have a significant impact on our financial statements. | ||
Omnibus Incentive Compensation Plan 2014 | ' | |
Information related to share based awards | ' | |
Stock-based compensation | ' | |
In May 2014, our shareholders approved the 2014 Omnibus Incentive Compensation Plan (2014 Omnibus Plan). Under the provisions of the 2014 Omnibus Plan, the number of shares of stock that may be issued in satisfaction of plan awards may not exceed 3,000,000 shares, plus any shares forfeited under prior plans. No single employee who is our chief executive officer, chief financial officer, or any one of our other three highest compensated officers (including officers of our subsidiaries) can be granted stock options for more than 1,000,000 shares or receive a payout in excess of 250,000 shares for performance stock rights during any calendar year. Additional awards will not be issued under prior plans, although the plans continue to exist for purposes of the existing outstanding stock-based compensation awards. | ||
Stock options | ' | |
Information related to share based awards | ' | |
Stock-based compensation | ' | |
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. The 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 | ' | |
Stock-based compensation | ' | |
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 stock price volatility is estimated using one to three years of historical data. | ||
Nonemployee director deferred stock units | ' | |
Information related to share based awards | ' | |
Stock-based compensation | ' | |
Each nonemployee director is granted deferred stock units (DSUs), typically in January of each year. These awards generally vest over one year; therefore, the expense is recognized pro-rata over the year in which the grant occurs. 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. Nonemployee directors also receive forfeitable dividend equivalents in the form of additional DSUs. |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) (Fox Energy Company LLC) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Fox Energy Company LLC | ' | ||||
Acquisitions | ' | ||||
Schedule of purchase price allocation | ' | ||||
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 9, Goodwill and Other Intangible Assets, for more information. |
DISPOSITIONS_Tables
DISPOSITIONS (Tables) (Electric Utility, UPPCO) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Electric Utility | UPPCO | ' | ||||||||
Dispositions | ' | ||||||||
Carrying values of major classes of assets and liabilities classified as held for sale on balance sheets | ' | ||||||||
The following table shows the carrying values of the major classes of assets and liabilities related to UPPCO classified as held for sale on the balance sheets: | |||||||||
(Millions) | June 30, 2014 | 31-Dec-13 | |||||||
Current assets | $ | 24.6 | $ | 26.5 | |||||
Property, plant, and equipment, net of accumulated depreciation of $90.5 and $88.9, respectively | 193.3 | 193.8 | |||||||
Other long-term assets | 71.8 | 51.6 | |||||||
Total assets | $ | 289.7 | $ | 271.9 | |||||
Current liabilities | $ | 13.8 | $ | 16.7 | |||||
Long-term liabilities | 29.2 | 32.4 | |||||||
Total liabilities | $ | 43 | $ | 49.1 | |||||
CASH_AND_CASH_EQUIVALENTS_Tabl
CASH AND CASH EQUIVALENTS (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||
Table of significant noncash transactions | ' | ||||||||
Significant noncash transactions were: | |||||||||
Six Months Ended June 30 | |||||||||
(Millions) | 2014 | 2013 | |||||||
Construction costs funded through accounts payable | $ | 123.3 | $ | 81.8 | |||||
Equity issued for employee stock ownership plan | 1.7 | 6.7 | |||||||
Equity issued for stock-based compensation plans | — | 16 | |||||||
Equity issued for reinvested dividends | — | 6.1 | |||||||
Contingent consideration and payables related to the acquisition of Compass Energy Services | — | 9.1 | |||||||
RISK_MANAGEMENT_ACTIVITIES_Tab
RISK MANAGEMENT ACTIVITIES (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Risk management activities | ' | ||||||||||||||||||
Assets and liabilities from risk management activities | ' | ||||||||||||||||||
The following tables show our assets and liabilities from risk management activities: | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
(Millions) | Balance Sheet Presentation (1) | Assets from | Liabilities from | ||||||||||||||||
Risk Management Activities | Risk Management Activities | ||||||||||||||||||
Utility Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | $ | 9 | $ | 0.9 | ||||||||||||||
Natural gas contracts | Long-term | 1.2 | 0.1 | ||||||||||||||||
Financial transmission rights (FTRs) (2) | Current | 5.9 | 0.7 | ||||||||||||||||
Petroleum product contracts | Current | 0.3 | — | ||||||||||||||||
Coal contracts | Current | — | 1.6 | ||||||||||||||||
Coal contracts | Long-term | 2.7 | 0.2 | ||||||||||||||||
IES Segment | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | 54.8 | 41.3 | ||||||||||||||||
Natural gas contracts | Long-term | 24.7 | 13.4 | ||||||||||||||||
Electric contracts | Current | 184.6 | 123.4 | ||||||||||||||||
Electric contracts | Long-term | 59.7 | 47.4 | ||||||||||||||||
Current | 254.6 | 167.9 | |||||||||||||||||
Long-term | 88.3 | 61.1 | |||||||||||||||||
Total | $ | 342.9 | $ | 229 | |||||||||||||||
(1) | We classify assets and liabilities from risk management activities as current or long-term based on the maturities of the underlying contracts. | ||||||||||||||||||
(2) | Includes a $1.2 million risk management asset that was classified as held for sale at UPPCO. See Note 4, Dispositions, for more information. | ||||||||||||||||||
31-Dec-13 | |||||||||||||||||||
(Millions) | Balance Sheet Presentation (1) | Assets from | Liabilities from | ||||||||||||||||
Risk Management Activities | Risk Management Activities | ||||||||||||||||||
Utility Segments | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | $ | 8.3 | $ | 1 | ||||||||||||||
Natural gas contracts | Long-term | 1.8 | 0.1 | ||||||||||||||||
FTRs (2) | Current | 2.1 | 0.3 | ||||||||||||||||
Petroleum product contracts | Current | 0.1 | — | ||||||||||||||||
Coal contracts | Current | — | 1.9 | ||||||||||||||||
Coal contracts | Long-term | 0.2 | 0.8 | ||||||||||||||||
IES Segment | |||||||||||||||||||
Nonhedge derivatives | |||||||||||||||||||
Natural gas contracts | Current | 57.6 | 42.9 | ||||||||||||||||
Natural gas contracts | Long-term | 29.5 | 18.6 | ||||||||||||||||
Electric contracts | Current | 172 | 117.7 | ||||||||||||||||
Electric contracts | Long-term | 43.9 | 43.3 | ||||||||||||||||
Current | 240.1 | 163.8 | |||||||||||||||||
Long-term | 75.4 | 62.8 | |||||||||||||||||
Total | $ | 315.5 | $ | 226.6 | |||||||||||||||
(1) | We classify assets and liabilities from risk management activities as current or long-term based on the maturities of the underlying contracts. | ||||||||||||||||||
(2) | Includes a $0.6 million risk management asset that was classified as held for sale at UPPCO. See Note 4, Dispositions, for more information. | ||||||||||||||||||
Potential effect of netting arrangements for recognized derivative assets and liabilities | ' | ||||||||||||||||||
The following tables show the potential effect on our financial position of netting arrangements for recognized derivative assets and liabilities: | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | ||||||||||||||||
Derivative assets subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 16.3 | $ | 1.7 | $ | 14.6 | |||||||||||||
IES segment | 323.8 | 197.7 | 126.1 | ||||||||||||||||
Total | 340.1 | 199.4 | 140.7 | ||||||||||||||||
Derivative assets not subject to master netting or similar arrangements | 2.8 | 2.8 | |||||||||||||||||
Total risk management assets | $ | 342.9 | $ | 143.5 | |||||||||||||||
Derivative liabilities subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 1.7 | $ | 1.7 | $ | — | |||||||||||||
IES segment | 225.4 | 198.3 | 27.1 | ||||||||||||||||
Total | 227.1 | 200 | 27.1 | ||||||||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 1.9 | 1.9 | |||||||||||||||||
Total risk management liabilities | $ | 229 | $ | 29 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||
(Millions) | Gross Amount | Potential Effects of Netting, Including Cash Collateral | Net Amount | ||||||||||||||||
Derivative assets subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 12.3 | $ | 2.1 | $ | 10.2 | |||||||||||||
IES segment | 301.9 | 178.1 | 123.8 | ||||||||||||||||
Total | 314.2 | 180.2 | 134 | ||||||||||||||||
Derivative assets not subject to master netting or similar arrangements | 1.3 | 1.3 | |||||||||||||||||
Total risk management assets | $ | 315.5 | $ | 135.3 | |||||||||||||||
Derivative liabilities subject to master netting or similar arrangements | |||||||||||||||||||
Utility segments | $ | 1.4 | $ | 1.4 | $ | — | |||||||||||||
IES segment | 222.1 | 178.1 | 44 | ||||||||||||||||
Total | 223.5 | 179.5 | 44 | ||||||||||||||||
Derivative liabilities not subject to master netting or similar arrangements | 3.1 | 3.1 | |||||||||||||||||
Total risk management liabilities | $ | 226.6 | $ | 47.1 | |||||||||||||||
Cash collateral positions | ' | ||||||||||||||||||
The following table shows our cash collateral positions: | |||||||||||||||||||
(Millions) | June 30, 2014 | December 31, 2013 | |||||||||||||||||
Cash collateral provided to others: (1) | |||||||||||||||||||
Related to contracts under master netting or similar arrangements (2) | $ | 39.1 | $ | 37.6 | |||||||||||||||
Other | 1.1 | 1.1 | |||||||||||||||||
Cash collateral received from others related to contracts under master netting or similar arrangements (1) | — | 0.7 | |||||||||||||||||
(1) | Cash collateral provided to others is reflected in other current assets and cash collateral received from others is reflected in other current liabilities on the balance sheets. | ||||||||||||||||||
(2) | Includes $1.3 million of cash collateral provided to others that was classified as held for sale at UPPCO at June 30, 2014, and December 31, 2013. See Note 4, Dispositions, for more information. | ||||||||||||||||||
Derivatives with credit risk-related contingent features that were 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) | June 30, 2014 | 31-Dec-13 | |||||||||||||||||
Utility segments | $ | 0.6 | $ | 0.6 | |||||||||||||||
IES segment | 44.9 | 76.7 | |||||||||||||||||
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) | June 30, 2014 | 31-Dec-13 | |||||||||||||||||
Collateral that would have been required: | |||||||||||||||||||
Utility segments | $ | — | $ | — | |||||||||||||||
IES segment | 173.3 | 197.6 | |||||||||||||||||
Collateral already satisfied: | |||||||||||||||||||
IES segment — Letters of credit | 4 | 4.5 | |||||||||||||||||
Collateral remaining: | |||||||||||||||||||
IES segment | 169.3 | 193.1 | |||||||||||||||||
Utility segments | ' | ||||||||||||||||||
Risk management activities | ' | ||||||||||||||||||
Notional volumes of outstanding non-hedge derivative contracts | ' | ||||||||||||||||||
The notional volumes of outstanding derivative contracts at the utilities and IBS were as follows: | |||||||||||||||||||
June 30, 2014 | 31-Dec-13 | ||||||||||||||||||
(Millions) | Purchases | Sales | Other Transactions | Purchases | Sales | Other Transactions | |||||||||||||
Natural gas (therms) | 2,213.00 | 2 | N/A | 3,124.80 | 29.3 | N/A | |||||||||||||
FTRs (kilowatt-hours) | N/A | N/A | 8,359.80 | N/A | N/A | 3,633.10 | |||||||||||||
Petroleum products (barrels) | 0.1 | — | N/A | 0.1 | — | N/A | |||||||||||||
Coal (tons) | 4 | — | N/A | 4.8 | — | N/A | |||||||||||||
Unrealized gains (losses) related to non-hedge derivatives | ' | ||||||||||||||||||
The table below shows the unrealized gains (losses) recorded related to derivative contracts at the utilities and IBS: | |||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||
(Millions) | Financial Statement Presentation | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Natural gas | Balance Sheet — Regulatory assets (current) | $ | (1.0 | ) | $ | (5.6 | ) | $ | (0.1 | ) | $ | 7.4 | |||||||
Natural gas | Balance Sheet — Regulatory assets (long-term) | — | (1.0 | ) | (0.2 | ) | (0.2 | ) | |||||||||||
Natural gas | Balance Sheet — Regulatory liabilities (current) | (3.4 | ) | (5.7 | ) | — | 0.2 | ||||||||||||
Natural gas | Balance Sheet — Regulatory liabilities (long-term) | 0.1 | (1.1 | ) | (0.3 | ) | (0.3 | ) | |||||||||||
Natural gas | Income Statement — Operating and maintenance expense | (0.1 | ) | (0.3 | ) | 0.1 | (0.1 | ) | |||||||||||
FTRs | Balance Sheet — Regulatory assets (current) * | (1.1 | ) | (1.0 | ) | (0.9 | ) | (0.8 | ) | ||||||||||
FTRs | Balance Sheet — Regulatory liabilities (current) * | 1.3 | 0.3 | 1.1 | (0.1 | ) | |||||||||||||
Petroleum | Balance Sheet — Regulatory assets (current) | — | (0.1 | ) | — | (0.1 | ) | ||||||||||||
Petroleum | Income Statement — Operating and maintenance expense | 0.1 | — | 0.1 | — | ||||||||||||||
Coal | Balance Sheet — Regulatory assets (current) | (0.3 | ) | 0.8 | (0.1 | ) | 2.7 | ||||||||||||
Coal | Balance Sheet — Regulatory assets (long-term) | 0.2 | 1.7 | 0.6 | 4 | ||||||||||||||
Coal | Balance Sheet — Regulatory liabilities (current) | — | (0.1 | ) | — | (0.3 | ) | ||||||||||||
Coal | Balance Sheet — Regulatory liabilities (long-term) | 0.9 | — | 2.5 | (2.2 | ) | |||||||||||||
* | Includes insignificant unrealized losses and gains recorded to regulatory assets and liabilities, respectively, that were classified as held for sale at UPPCO. See Note 4, Dispositions, for more information. | ||||||||||||||||||
Integrys Energy Services | ' | ||||||||||||||||||
Risk management activities | ' | ||||||||||||||||||
Notional volumes of outstanding non-hedge derivative contracts | ' | ||||||||||||||||||
IES had the following notional volumes of outstanding derivative contracts: | |||||||||||||||||||
June 30, 2014 | 31-Dec-13 | ||||||||||||||||||
(Millions) | Purchases | Sales | Purchases | Sales | |||||||||||||||
Commodity contracts | |||||||||||||||||||
Natural gas (therms) | 1,164.60 | 1,262.50 | 1,199.90 | 1,065.40 | |||||||||||||||
Electric (kilowatt-hours) | 40,031.90 | 23,508.90 | 49,186.30 | 30,813.80 | |||||||||||||||
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 June 30 | Six Months Ended June 30 | ||||||||||||||||||
(Millions) | Income Statement Presentation | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Natural gas | Nonregulated revenue | $ | 10 | $ | 33.8 | $ | (26.9 | ) | $ | 37.2 | |||||||||
Natural gas | Nonregulated cost of sales | (5.0 | ) | (32.9 | ) | 28 | (34.5 | ) | |||||||||||
Natural gas | Nonregulated revenue (reclassified from accumulated OCI) * | — | (0.1 | ) | — | (0.2 | ) | ||||||||||||
Electric | Nonregulated revenue | 15.8 | (77.6 | ) | 176.1 | (13.6 | ) | ||||||||||||
Electric | Nonregulated cost of sales | 1.4 | 8.7 | 2 | 8.7 | ||||||||||||||
Electric | Nonregulated revenue (reclassified from accumulated OCI) * | — | (2.0 | ) | — | (3.0 | ) | ||||||||||||
Total | $ | 22.2 | $ | (70.1 | ) | $ | 179.2 | $ | (5.4 | ) | |||||||||
* | Represents amounts reclassified from accumulated other comprehensive loss (OCI) related to cash flow hedges that were dedesignated in prior periods. |
INVESTMENT_IN_ATC_Tables
INVESTMENT IN ATC (Tables) (ATC) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 June 30 | Six Months Ended June 30 | ||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at the beginning of period | $ | 517.6 | $ | 482.7 | $ | 508.4 | $ | 476.6 | |||||||||
Add: Earnings from equity method investment | 23 | 22 | 45.5 | 43.7 | |||||||||||||
Add: Capital contributions | 5.1 | 5.1 | 10.2 | 6.8 | |||||||||||||
Less: Dividends received | 18.4 | 17.6 | 36.8 | 34.9 | |||||||||||||
Balance at the end of period | $ | 527.3 | $ | 492.2 | $ | 527.3 | $ | 492.2 | |||||||||
Summarized income statement information of ATC | ' | ||||||||||||||||
Financial data for all of ATC is included in the following tables: | |||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Income statement data | |||||||||||||||||
Revenues | $ | 160 | $ | 152.1 | $ | 323.3 | $ | 303.9 | |||||||||
Operating expenses | 74.4 | 69.9 | 153 | 139.7 | |||||||||||||
Other expense | 21.9 | 20.9 | 43.5 | 42.4 | |||||||||||||
Net income | $ | 63.7 | $ | 61.3 | $ | 126.8 | $ | 121.8 | |||||||||
Summarized balance sheet information of ATC | ' | ||||||||||||||||
(Millions) | June 30, 2014 | 31-Dec-13 | |||||||||||||||
Balance sheet data | |||||||||||||||||
Current assets | $ | 80.6 | $ | 80.7 | |||||||||||||
Noncurrent assets | 3,612.70 | 3,509.50 | |||||||||||||||
Total assets | $ | 3,693.30 | $ | 3,590.20 | |||||||||||||
Current liabilities | $ | 419.8 | $ | 381.5 | |||||||||||||
Long-term debt | 1,550.00 | 1,550.00 | |||||||||||||||
Other noncurrent liabilities | 135.3 | 126.1 | |||||||||||||||
Shareholders’ equity | 1,588.20 | 1,532.60 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,693.30 | $ | 3,590.20 | |||||||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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 six months ended June 30, 2014: | |||||||||||||||||||||||||
(Millions) | Natural Gas Utility | IES | Holding Company and Other | Total | |||||||||||||||||||||
Balance as of January 1, 2014 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||
Rounding adjustment | (0.1 | ) | 0.1 | — | — | ||||||||||||||||||||
Goodwill impairment loss | — | (6.7 | ) | — | (6.7 | ) | |||||||||||||||||||
Balance as of June 30, 2014 | |||||||||||||||||||||||||
Gross goodwill | 933.5 | 6.7 | 19.6 | 959.8 | |||||||||||||||||||||
Accumulated impairment losses | (297.7 | ) | (6.7 | ) | — | (304.4 | ) | ||||||||||||||||||
Net goodwill | $ | 635.8 | $ | — | $ | 19.6 | $ | 655.4 | |||||||||||||||||
Schedule of 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. | |||||||||||||||||||||||||
June 30, 2014 | 31-Dec-13 | ||||||||||||||||||||||||
(Millions) | Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||||
Amortized intangible assets | |||||||||||||||||||||||||
Contractual service agreements (1) | 15.6 | (3.0 | ) | 12.6 | 15.6 | (1.8 | ) | 13.8 | |||||||||||||||||
Customer-related (2) | 26.8 | (16.5 | ) | 10.3 | 26.8 | (15.7 | ) | 11.1 | |||||||||||||||||
Renewable energy credits (3) | 7.2 | — | 7.2 | 8.4 | — | 8.4 | |||||||||||||||||||
Customer-owned equipment modifications (4) | 4 | (1.0 | ) | 3 | 4 | (0.9 | ) | 3.1 | |||||||||||||||||
Patents/intellectual property (5) | 3.4 | (0.6 | ) | 2.8 | 3.4 | (0.5 | ) | 2.9 | |||||||||||||||||
Compressed natural gas fueling contract assets (6) | 5.6 | (3.1 | ) | 2.5 | 5.6 | (2.7 | ) | 2.9 | |||||||||||||||||
Nonregulated easements (7) | 3.7 | (1.3 | ) | 2.4 | 3.7 | (1.1 | ) | 2.6 | |||||||||||||||||
Natural gas and electric contract assets (8) | 3.9 | (2.0 | ) | 1.9 | 3.9 | (0.5 | ) | 3.4 | |||||||||||||||||
Other | 0.5 | (0.3 | ) | 0.2 | 0.5 | (0.3 | ) | 0.2 | |||||||||||||||||
Total | $ | 70.7 | $ | (27.8 | ) | $ | 42.9 | $ | 71.9 | $ | (23.5 | ) | $ | 48.4 | |||||||||||
Unamortized intangible assets | |||||||||||||||||||||||||
MGU trade name | $ | 5.2 | $ | — | $ | 5.2 | $ | 5.2 | $ | — | $ | 5.2 | |||||||||||||
Trillium trade name (9) | 3.5 | — | 3.5 | 3.5 | — | 3.5 | |||||||||||||||||||
Pinnacle trade name (9) | 1.5 | — | 1.5 | 1.5 | — | 1.5 | |||||||||||||||||||
Total intangible assets | $ | 80.9 | $ | (27.8 | ) | $ | 53.1 | $ | 82.1 | $ | (23.5 | ) | $ | 58.6 | |||||||||||
(1) | 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 June 30, 2014, was approximately six years. | ||||||||||||||||||||||||
(2) | Represents customer relationship assets associated with PELLC’s former nonregulated retail natural gas and electric operations, ITF's compressed natural gas fueling operations, and IES's retail natural gas operations. The remaining weighted-average amortization period for customer-related intangible assets at June 30, 2014, was approximately 11 years. | ||||||||||||||||||||||||
(3) | Used at IES to comply with state Renewable Portfolio Standards and to support customer commitments. | ||||||||||||||||||||||||
(4) | Relates to modifications made by IES and ITF to customer-owned equipment. These intangible assets are amortized on a straight-line basis, with a remaining weighted-average amortization period at June 30, 2014, of approximately ten years. | ||||||||||||||||||||||||
(5) | 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. The remaining amortization period at June 30, 2014, was approximately eight years. | ||||||||||||||||||||||||
(6) | Represents the fair value of ITF contracts acquired in September 2011. The remaining amortization period at June 30, 2014, was approximately seven years. | ||||||||||||||||||||||||
(7) | Relates to easements supporting a pipeline at IES. The easements are amortized on a straight-line basis, with a remaining amortization period at June 30, 2014, of approximately ten years. | ||||||||||||||||||||||||
(8) | Represents the fair value of certain natural gas and electric customer contracts acquired by IES during 2013 that were not considered to be derivative instruments. The remaining amortization period for these intangible assets at June 30, 2014, was approximately three years. | ||||||||||||||||||||||||
(9) | Trillium USA (Trillium) and Pinnacle CNG Systems (Pinnacle) are wholly-owned subsidiaries o | ||||||||||||||||||||||||
Schedule of intangible asset amortization expense | ' | ||||||||||||||||||||||||
The table below shows our amortization expense recognized in the statements of income: | |||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Amortization recorded in nonregulated cost of sales | $ | 1.1 | $ | 0.5 | $ | 2.1 | $ | 0.9 | |||||||||||||||||
Amortization recorded in depreciation and amortization expense | 1.1 | 1.2 | 2.2 | 1.7 | |||||||||||||||||||||
Schedule of intangible asset amortization expense for the next five years | ' | ||||||||||||||||||||||||
The following table shows our estimated amortization expense for the next five years, including amounts recorded through June 30, 2014: | |||||||||||||||||||||||||
For the Year Ending December 31 | |||||||||||||||||||||||||
(Millions) | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||||||
Amortization to be recorded in nonregulated cost of sales | $ | 3.4 | $ | 2 | $ | 1.1 | $ | 0.9 | $ | 0.8 | |||||||||||||||
Amortization to be recorded in depreciation and amortization expense | 4.3 | 4.2 | 4 | 3.9 | 3.8 | ||||||||||||||||||||
SHORTTERM_DEBT_AND_LINES_OF_CR1
SHORT-TERM DEBT AND LINES OF CREDIT (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Short-term Debt [Abstract] | ' | ||||||||||
Schedule of short-term borrowings | ' | ||||||||||
Our outstanding short-term borrowings were as follows: | |||||||||||
(Millions, except percentages) | June 30, 2014 | 31-Dec-13 | |||||||||
Commercial paper | $ | 420.7 | $ | 326 | |||||||
Average interest rate on commercial paper | 0.24 | % | 0.22 | % | |||||||
Schedule of revolving credit facilities and remaining available capacity | ' | ||||||||||
The information in the table below relates to our revolving credit facilities used to support our commercial paper borrowing program, including remaining available capacity under these facilities: | |||||||||||
(Millions) | Maturity | June 30, 2014 | 31-Dec-13 | ||||||||
Revolving credit facility (Integrys Energy Group) (1) | 5/17/14 | $ | — | $ | 275 | ||||||
Revolving credit facility (Integrys Energy Group) (1) | 5/17/16 | — | 200 | ||||||||
Revolving credit facility (Integrys Energy Group) | 6/13/17 | 635 | 635 | ||||||||
Revolving credit facility (Integrys Energy Group) | 5/8/19 | 465 | — | ||||||||
Revolving credit facility (WPS) (1) | 5/17/14 | — | 135 | ||||||||
Revolving credit facility (WPS) (2) | 5/7/15 | 135 | — | ||||||||
Revolving credit facility (WPS) | 6/13/17 | 115 | 115 | ||||||||
Revolving credit facility (PGL) | 6/13/17 | 250 | 250 | ||||||||
Total short-term credit capacity | $ | 1,600.00 | $ | 1,610.00 | |||||||
Less: | |||||||||||
Letters of credit issued inside credit facilities | $ | 22.6 | $ | 52.4 | |||||||
Commercial paper outstanding | 420.7 | 326 | |||||||||
Available capacity under existing agreements | $ | 1,156.70 | $ | 1,231.60 | |||||||
(1) | These credit facilities were terminated and replaced with new credit facilities in May 2014. | ||||||||||
(2) | WPS requested approval from the PSCW to extend this facility through May 8, 2019. |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long-term Debt Instruments | ' | ||||||||
Long-Term Debt | |||||||||
(Millions) | June 30, 2014 | 31-Dec-13 | |||||||
WPS | $ | 1,175.10 | $ | 1,175.10 | |||||
PGL (1) | 725 | 725 | |||||||
NSG | 82 | 82 | |||||||
Integrys Energy Group (2) | 974.8 | 1,074.80 | |||||||
Total | 2,956.90 | 3,056.90 | |||||||
Unamortized discount on debt | (0.7 | ) | (0.7 | ) | |||||
Total debt | 2,956.20 | 3,056.20 | |||||||
Less current portion | — | 100 | |||||||
Total long-term debt | $ | 2,956.20 | $ | 2,956.20 | |||||
(1) | PGL's $50.0 million of 2.125% Series VV Bonds were subject to a mandatory interest reset on July 1, 2014. The new interest rate on these bonds is 3.90%, and they are due in March 2030. | ||||||||
(1) | In June 2014, our $100.0 million of 7.27% Senior Notes matured, and the outstanding principal balance was repaid. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of effective tax rates | ' | ||||||||||||
The table below shows our effective tax rates attributable to continuing operations: | |||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Effective tax rate | 50.3 | % | 45.8 | % | 37.8 | % | 37.4 | % |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||
Schedule of minimum future commitments related to purchase obligations | ' | ||||||||||||||||||||||||||||||
The following table shows our minimum future commitments related to these purchase obligations as of June 30, 2014, including those of our subsidiaries. | |||||||||||||||||||||||||||||||
Payments Due By Period | |||||||||||||||||||||||||||||||
(Millions) | Year Contracts Extend Through | Total Amounts Committed | 2014 | 2015 | 2016 | 2017 | 2018 | Later Years | |||||||||||||||||||||||
Natural gas utility supply and transportation | 2028 | $ | 772.5 | $ | 91.7 | $ | 171.3 | $ | 161.8 | $ | 127 | $ | 76.2 | $ | 144.5 | ||||||||||||||||
Electric utility | |||||||||||||||||||||||||||||||
Purchased power (1) | 2029 | 907.2 | 42.1 | 54.7 | 42.9 | 53.5 | 56.5 | 657.5 | |||||||||||||||||||||||
Coal supply and transportation | 2018 | 127.9 | 26.1 | 42.8 | 18.5 | 20.6 | 19.9 | — | |||||||||||||||||||||||
Nonregulated electricity and natural gas supply (2) | 2020 | 613.7 | 258.9 | 265.4 | 70.6 | 15 | 2.7 | 1.1 | |||||||||||||||||||||||
Total | $ | 2,421.30 | $ | 418.8 | $ | 534.2 | $ | 293.8 | $ | 216.1 | $ | 155.3 | $ | 803.1 | |||||||||||||||||
(1) | Includes minimum future commitments for UPPCO related to power purchase contracts of $14.3 million for the years 2014 to 2024. In January 2014, we announced an agreement to sell UPPCO. See Note 4, Dispositions, for more information. | ||||||||||||||||||||||||||||||
(2) | Represents minimum future commitments for IES. In July 2014, we entered into a definitive agreement to sell the retail energy business of IES. See Note 4, Dispositions, for more information. |
GUARANTEES_Tables
GUARANTEES (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||
Schedule of outstanding guarantees | ' | ||||||||||||||||
The following table shows our outstanding guarantees: | |||||||||||||||||
Total Amounts Committed | Expiration | ||||||||||||||||
(Millions) | at June 30, 2014 | Less Than 1 Year | 1 to 3 Years | Over 3 Years | |||||||||||||
Guarantees supporting commodity transactions of subsidiaries (1) | $ | 705.3 | $ | 460.5 | $ | 4.6 | $ | 240.2 | |||||||||
Standby letters of credit (2) | 27.7 | 27.3 | 0.3 | 0.1 | |||||||||||||
Surety bonds (3) | 32.7 | 32.7 | — | — | |||||||||||||
Other guarantees (4) | 55.4 | 1.5 | — | 53.9 | |||||||||||||
Total guarantees (5) | $ | 821.1 | $ | 522 | $ | 4.9 | $ | 294.2 | |||||||||
(1) | Consists of (a) $520.4 million, $5.0 million, and $2.0 million to support the business operations of IES, IBS, and UPPCO, respectively, and (b) $120.0 million, $57.5 million, and $0.4 million related to natural gas supply at MERC, MGU, and ITF, 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 $26.0 million issued to support IES’s operations and $1.7 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) $35.0 million to support IES's future payment obligations related to its distributed solar generation projects. This guarantee is not reflected on our balance sheets; (b) $10.0 million related to the sale agreement for IES's 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 law; (c) $1.8 million related to the sale of WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC. IES guaranteed the buyer's performance under certain derivative contracts that the buyer assumed from WPS Empire State, Inc. in conjunction with the sale; (d) $2.4 million related to the performance of an operating and maintenance agreement by ITF; and (e) $6.2 million related to other indemnifications primarily for workers compensation coverage. The amounts discussed in items (c) through (e) above are not reflected on our balance sheets. | ||||||||||||||||
(5) | Consists of $597.1 million of guarantees related to IES and $3.2 million of guarantees related to UPPCO. See Note 4, Dispositions, for information on the pending sale of IES's retail energy business and the pending sale of UPPCO. |
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of the components of net periodic benefit cost | ' | ||||||||||||||||||||||||||||||||
The following table shows the components of net periodic benefit cost (including amounts capitalized to our balance sheets) for our benefit plans: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||
30-Jun | 30-Jun | 30-Jun | 30-Jun | ||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Service cost | $ | 5.9 | $ | 7.6 | $ | 12.5 | $ | 15.1 | $ | 4.8 | $ | 5.9 | $ | 10.7 | $ | 12.4 | |||||||||||||||||
Interest cost | 19.3 | 17.8 | 39 | 35.6 | 5.2 | 6.1 | 12.3 | 12.4 | |||||||||||||||||||||||||
Expected return on plan assets | (28.5 | ) | (26.1 | ) | (57.4 | ) | (52.7 | ) | (7.9 | ) | (7.6 | ) | (16.7 | ) | (15.3 | ) | |||||||||||||||||
Loss on plan settlement | 0.9 | — | 0.9 | — | — | — | — | — | |||||||||||||||||||||||||
Amortization of prior service cost (credit) | 0.1 | 1 | 0.3 | 2 | (2.8 | ) | (0.6 | ) | (4.1 | ) | (1.2 | ) | |||||||||||||||||||||
Amortization of net actuarial loss | 8.6 | 14.8 | 17 | 28.3 | 0.8 | 2.2 | 1.5 | 4.2 | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 6.3 | $ | 15.1 | $ | 12.3 | $ | 28.3 | $ | 0.1 | $ | 6 | $ | 3.7 | $ | 12.5 | |||||||||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of stock-based compensation expense and the related deferred tax benefit recognized in income | ' | ||||||||||||||||
The following table reflects the stock-based compensation expense and the related deferred income tax benefit recognized in income for the three and six months ended June 30: | |||||||||||||||||
Three Months Ended June | Six Months Ended June 30 | ||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options | $ | 0.5 | $ | 0.5 | $ | 0.8 | $ | 0.9 | |||||||||
Performance stock rights | 9.2 | 1 | 9.7 | 3.2 | |||||||||||||
Restricted share units | 3 | 2.5 | 6.1 | 5.3 | |||||||||||||
Nonemployee director deferred stock units | 0.2 | 0.2 | 0.4 | 0.5 | |||||||||||||
Total stock-based compensation expense | $ | 12.9 | $ | 4.2 | $ | 17 | $ | 9.9 | |||||||||
Deferred income tax benefit | $ | 5.2 | $ | 1.7 | $ | 6.8 | $ | 4 | |||||||||
Schedule of the assumptions incorporated into the valuation of stock options granted | ' | ||||||||||||||||
The following table shows the assumptions incorporated into the valuation model: | |||||||||||||||||
February 2014 Grant | |||||||||||||||||
Expected term | 8 years | ||||||||||||||||
Risk-free interest rate | 0.12% – 2.88% | ||||||||||||||||
Expected dividend yield | 5.28% | ||||||||||||||||
Expected volatility | 18% | ||||||||||||||||
Summary of stock option activity and information related to outstanding and exercisable stock options | ' | ||||||||||||||||
A summary of stock option activity for the six months ended June 30, 2014, and information related to outstanding and exercisable stock options at June 30, 2014, 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, 2013 | 1,550,374 | $ | 50.93 | ||||||||||||||
Granted | 264,332 | 55.23 | |||||||||||||||
Exercised | (240,673 | ) | 49.32 | ||||||||||||||
Outstanding at June 30, 2014 | 1,574,033 | $ | 51.9 | 6.6 | $ | 30.3 | |||||||||||
Exercisable at June 30, 2014 | 884,858 | $ | 49.82 | 5 | $ | 18.9 | |||||||||||
Schedule of assumptions incorporated into the valuation models for performance stock rights | ' | ||||||||||||||||
The table below reflects the assumptions used in the valuation of the outstanding grants at June 30: | |||||||||||||||||
2014 | |||||||||||||||||
Risk-free interest rate | 0.06% – 0.60% | ||||||||||||||||
Expected dividend yield | 5.28% – 5.33% | ||||||||||||||||
Expected volatility | 17% – 23% | ||||||||||||||||
Information related to share based awards | ' | ||||||||||||||||
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 six months ended June 30, 2014, is presented below: | |||||||||||||||||
Restricted Share | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Unit Awards | |||||||||||||||||
Outstanding at December 31, 2013 | 511,301 | $ | 52.24 | ||||||||||||||
Granted | 214,953 | 55.23 | |||||||||||||||
Dividend equivalents | 12,023 | 54.45 | |||||||||||||||
Vested and released | (204,821 | ) | 49.73 | ||||||||||||||
Forfeited | (3,212 | ) | 54.73 | ||||||||||||||
Outstanding at June 30, 2014 | 530,244 | $ | 54.46 | ||||||||||||||
Performance Stock Rights Accounted For As Equity Awards | ' | ||||||||||||||||
Information related to share based awards | ' | ||||||||||||||||
Summary of the activity related to performance stock rights | ' | ||||||||||||||||
A summary of the activity for the six months ended June 30, 2014, related to performance stock rights accounted for as equity awards is presented below: | |||||||||||||||||
Performance | Weighted-Average | ||||||||||||||||
Stock Rights | Fair Value * | ||||||||||||||||
Outstanding at December 31, 2013 | 85,749 | $ | 46.62 | ||||||||||||||
Granted | 21,146 | 44.28 | |||||||||||||||
Adjustment for shares not distributed | (45,748 | ) | 43.29 | ||||||||||||||
Outstanding at June 30, 2014 | 61,147 | $ | 48.31 | ||||||||||||||
* | 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 six months ended June 30, 2014, related to performance stock rights accounted for as liability awards is presented below: | |||||||||||||||||
Performance | |||||||||||||||||
Stock Rights | |||||||||||||||||
Outstanding at December 31, 2013 | 198,904 | ||||||||||||||||
Granted | 84,529 | ||||||||||||||||
Adjustment for shares not distributed | (39,001 | ) | |||||||||||||||
Outstanding at June 30, 2014 | 244,432 | ||||||||||||||||
COMMON_EQUITY_Tables
COMMON EQUITY (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Roll forward of issued common stock | ' | ||||||||||||||||
We had the following changes to issued common stock during the six months ended June 30, 2014: | |||||||||||||||||
Balance at December 31, 2013 | 79,919,176 | ||||||||||||||||
Shares issued | |||||||||||||||||
Employee Stock Ownership Plan | 31,764 | ||||||||||||||||
Stock Investment Plan | 12,151 | ||||||||||||||||
Balance at June 30, 2014 | 79,963,091 | ||||||||||||||||
Schedule of common stock activity to meet requirements of our stock investment plan and 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 02/05/14 | Purchasing shares on the open market | ||||||||||||||||
02/05/2013 – 02/04/2014 | Issued new shares | ||||||||||||||||
01/01/2013 – 02/04/2013 | Purchased shares on the open market | ||||||||||||||||
Reconciliation of shares issued and outstanding | ' | ||||||||||||||||
The following table reconciles common shares issued and outstanding: | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
Shares | Average Cost * | Shares | Average Cost * | ||||||||||||||
Common stock issued | 79,963,091 | 79,919,176 | |||||||||||||||
Less: | |||||||||||||||||
Deferred compensation rabbi trust | 433,507 | $ | 48.74 | 473,796 | $ | 48.5 | |||||||||||
Total common shares outstanding | 79,529,584 | 79,445,380 | |||||||||||||||
* | 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 June 30 | Six Months Ended June 30 | ||||||||||||||||
(Millions, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) from continuing operations | $ | 8.1 | $ | (3.9 | ) | $ | 161.3 | $ | 178.3 | ||||||||
Discontinued operations, net of tax | (0.1 | ) | (0.8 | ) | (0.2 | ) | 5.3 | ||||||||||
Preferred stock dividends of subsidiary | (0.8 | ) | (0.8 | ) | (1.6 | ) | (1.6 | ) | |||||||||
Noncontrolling interest in subsidiaries | — | 0.1 | 0.1 | 0.1 | |||||||||||||
Net income (loss) attributed to common shareholders | $ | 7.2 | $ | (5.4 | ) | $ | 159.6 | $ | 182.1 | ||||||||
Denominator: | |||||||||||||||||
Average shares of common stock — basic | 80.2 | 79.4 | 80.2 | 79 | |||||||||||||
Effect of dilutive securities | |||||||||||||||||
Stock-based compensation | 0.3 | — | 0.3 | 0.3 | |||||||||||||
Deferred compensation | — | — | — | 0.4 | |||||||||||||
Average shares of common stock — diluted | 80.5 | 79.4 | 80.5 | 79.7 | |||||||||||||
Earnings (loss) per common share | |||||||||||||||||
Basic | $ | 0.09 | $ | (0.07 | ) | $ | 1.99 | $ | 2.31 | ||||||||
Diluted | 0.09 | (0.07 | ) | 1.98 | 2.29 | ||||||||||||
Schedule of antidilutive securities | ' | ||||||||||||||||
The calculation of diluted earnings per share excluded the following weighted-average outstanding securities that had an anti-dilutive effect: | |||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
(Millions) | 2014 | 2013 * | 2014 | 2013 | |||||||||||||
Stock-based compensation | — | — | 0.4 | 0.2 | |||||||||||||
Deferred compensation | 0.3 | — | 0.3 | — | |||||||||||||
Capital transactions with subsidiaries | ' | ||||||||||||||||
During the six months ended June 30, 2014, capital transactions with subsidiaries were as follows (in millions): | |||||||||||||||||
Subsidiary | Dividends To Parent | Return Of | Equity Contributions | ||||||||||||||
Capital To Parent | From Parent | ||||||||||||||||
IBS | $ | — | $ | — | $ | 25 | |||||||||||
ITF (1) | — | — | 33.4 | ||||||||||||||
MERC | — | 27 | — | ||||||||||||||
MGU | — | 13 | — | ||||||||||||||
UPPCO | — | 12.5 | — | ||||||||||||||
WPS | 55.9 | — | 40 | ||||||||||||||
WPS Investments, LLC (2) | 36.8 | — | 10.2 | ||||||||||||||
Total | $ | 92.7 | $ | 52.5 | $ | 108.6 | |||||||||||
(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 June 30, 2014, we had an 86.51% ownership interest, while WPS and UPPCO had an 11.12% and 2.37% ownership interest, respectively. Distributions from WPS Investments, LLC are made to the owners based on their respective ownership percentages. During 2014, all equity contributions to WPS Investments, LLC were made solely by us. |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
(Millions) | Cash Flow Hedges | Defined Benefit Plans | Accumulated Other Comprehensive Loss | Cash Flow Hedges | Defined Benefit Plans | Accumulated Other Comprehensive Loss | |||||||||||||||||||
Balance at the beginning of period | $ | (3.7 | ) | $ | (19.9 | ) | $ | (23.6 | ) | $ | (3.1 | ) | $ | (20.1 | ) | $ | (23.2 | ) | |||||||
Other comprehensive loss before reclassifications | — | — | — | — | (0.1 | ) | (0.1 | ) | |||||||||||||||||
Amounts reclassified out of accumulated other comprehensive loss | 0.2 | 0.5 | 0.7 | (0.4 | ) | 0.8 | 0.4 | ||||||||||||||||||
Net current period other comprehensive income (loss) | 0.2 | 0.5 | 0.7 | (0.4 | ) | 0.7 | 0.3 | ||||||||||||||||||
Balance at the end of period | $ | (3.5 | ) | $ | (19.4 | ) | $ | (22.9 | ) | $ | (3.5 | ) | $ | (19.4 | ) | $ | (22.9 | ) | |||||||
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
(Millions) | Cash Flow Hedges | Defined Benefit Plans | Accumulated Other Comprehensive Loss | Cash Flow Hedges | Defined Benefit Plans | Accumulated Other Comprehensive Loss | |||||||||||||||||||
Balance at the beginning of period | $ | (4.2 | ) | $ | (35.1 | ) | $ | (39.3 | ) | $ | (5.2 | ) | $ | (35.7 | ) | $ | (40.9 | ) | |||||||
Other comprehensive income before reclassifications | 0.6 | — | 0.6 | 0.7 | — | 0.7 | |||||||||||||||||||
Amounts reclassified out of accumulated other comprehensive loss | 1.5 | 0.6 | 2.1 | 2.4 | 1.2 | 3.6 | |||||||||||||||||||
Net current period other comprehensive income | 2.1 | 0.6 | 2.7 | 3.1 | 1.2 | 4.3 | |||||||||||||||||||
Balance at the end of period | $ | (2.1 | ) | $ | (34.5 | ) | $ | (36.6 | ) | $ | (2.1 | ) | $ | (34.5 | ) | $ | (36.6 | ) | |||||||
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 six months ended June 30: | |||||||||||||||||||||||||
Amount Reclassified | |||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | Affected Line Item in the Statements of Income | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Losses on cash flow hedges | |||||||||||||||||||||||||
Utility commodity derivative contracts | $ | — | $ | — | $ | — | $ | 0.2 | Operating and maintenance expense (1) (2) | ||||||||||||||||
Nonregulated commodity derivative contracts | — | 2.1 | — | 3.2 | Nonregulated revenues (2) | ||||||||||||||||||||
Interest rate hedges | 0.2 | 0.3 | 0.5 | 0.5 | Interest expense | ||||||||||||||||||||
0.2 | 2.4 | 0.5 | 3.9 | Total before tax | |||||||||||||||||||||
— | 0.9 | 0.9 | 1.5 | Tax expense | |||||||||||||||||||||
0.2 | 1.5 | (0.4 | ) | 2.4 | Net of tax | ||||||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||
Amortization of prior service credits | — | — | (0.1 | ) | (0.1 | ) | (3) | ||||||||||||||||||
Amortization of net actuarial losses | 0.7 | 1 | 1.4 | 2.1 | (3) | ||||||||||||||||||||
0.7 | 1 | 1.3 | 2 | Total before tax | |||||||||||||||||||||
0.2 | 0.4 | 0.5 | 0.8 | Tax expense | |||||||||||||||||||||
0.5 | 0.6 | 0.8 | 1.2 | Net of tax | |||||||||||||||||||||
Total reclassifications | $ | 0.7 | $ | 2.1 | $ | 0.4 | $ | 3.6 | |||||||||||||||||
(1) | This item relates to changes in the price of natural gas used to support utility operations. | ||||||||||||||||||||||||
(2) | We no longer designate commodity contracts as cash flow hedges. | ||||||||||||||||||||||||
(3) | These items are included in the computation of net periodic benefit cost. See Note 15, Employee Benefit Plans, for more information. |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair value of assets and liabilities measured on a recurring basis, categorized by level within the fair value hierarchy | ' | ||||||||||||||||||||||||
The following tables show assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy: | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Risk Management Assets | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 1.1 | $ | 9.1 | $ | — | $ | 10.2 | |||||||||||||||||
Financial transmission rights (FTRs) | — | — | 5.9 | 5.9 | |||||||||||||||||||||
Petroleum product contracts | 0.3 | — | — | 0.3 | |||||||||||||||||||||
Coal contracts | — | — | 2.7 | 2.7 | |||||||||||||||||||||
IES Segment | |||||||||||||||||||||||||
Natural gas contracts | 20.6 | 29 | 29.9 | 79.5 | |||||||||||||||||||||
Electric contracts | 98.6 | 126.2 | 19.5 | 244.3 | |||||||||||||||||||||
Total Risk Management Assets | $ | 120.6 | $ | 164.3 | $ | 58 | $ | 342.9 | |||||||||||||||||
Investment in exchange-traded funds | $ | 16.8 | $ | — | $ | — | $ | 16.8 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Risk Management Liabilities | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 0.4 | $ | 0.6 | $ | — | $ | 1 | |||||||||||||||||
FTRs | — | — | 0.7 | 0.7 | |||||||||||||||||||||
Coal contracts | — | — | 1.8 | 1.8 | |||||||||||||||||||||
IES Segment | |||||||||||||||||||||||||
Natural gas contracts | 9.5 | 20.3 | 24.9 | 54.7 | |||||||||||||||||||||
Electric contracts | 122.3 | 43.9 | 4.6 | 170.8 | |||||||||||||||||||||
Total Risk Management Liabilities | $ | 132.2 | $ | 64.8 | $ | 32 | $ | 229 | |||||||||||||||||
Contingent consideration related to the acquisition of Compass Energy Services (Compass) * | $ | — | $ | — | $ | 6.6 | $ | 6.6 | |||||||||||||||||
* | In July 2014, IES settled the contingent liability for $4.3 million. | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Risk Management Assets | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 2.4 | $ | 7.7 | $ | — | $ | 10.1 | |||||||||||||||||
FTRs | — | — | 2.1 | 2.1 | |||||||||||||||||||||
Petroleum product contracts | 0.1 | — | — | 0.1 | |||||||||||||||||||||
Coal contracts | — | — | 0.2 | 0.2 | |||||||||||||||||||||
IES Segment | |||||||||||||||||||||||||
Natural gas contracts | 16.3 | 35.2 | 35.6 | 87.1 | |||||||||||||||||||||
Electric contracts | 65.1 | 134.9 | 15.9 | 215.9 | |||||||||||||||||||||
Total Risk Management Assets | $ | 83.9 | $ | 177.8 | $ | 53.8 | $ | 315.5 | |||||||||||||||||
Investment in exchange-traded funds | $ | 15.9 | $ | — | $ | — | $ | 15.9 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Risk Management Liabilities | |||||||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
Natural gas contracts | $ | 0.5 | $ | 0.6 | $ | — | $ | 1.1 | |||||||||||||||||
FTRs | — | — | 0.3 | 0.3 | |||||||||||||||||||||
Coal contracts | — | — | 2.7 | 2.7 | |||||||||||||||||||||
IES Segment | |||||||||||||||||||||||||
Natural gas contracts | 14.3 | 22 | 25.2 | 61.5 | |||||||||||||||||||||
Electric contracts | 98.8 | 58.7 | 3.5 | 161 | |||||||||||||||||||||
Total Risk Management Liabilities | $ | 113.6 | $ | 81.3 | $ | 31.7 | $ | 226.6 | |||||||||||||||||
Contingent consideration related to the acquisition of Compass * | $ | — | $ | — | $ | 7.8 | $ | 7.8 | |||||||||||||||||
* | In July 2014, IES settled the contingent liability for $4.3 million. | ||||||||||||||||||||||||
Schedule of transfers between the levels of the fair value hierarchy | ' | ||||||||||||||||||||||||
The following tables show net risk management assets transferred between the levels of the fair value hierarchy: | |||||||||||||||||||||||||
IES Segment — Natural Gas Contracts | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | 0.1 | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 0.4 | $ | — | N/A | — | |||||||||||||||||
Transfers into Level 3 from | — | 0.7 | N/A | — | 1.3 | N/A | |||||||||||||||||||
IES Segment — Natural Gas Contracts | |||||||||||||||||||||||||
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | 0.1 | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 0.5 | $ | — | N/A | — | |||||||||||||||||
Transfers into Level 3 from | — | 1.6 | N/A | — | 1.5 | N/A | |||||||||||||||||||
IES Segment — Electric Contracts | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | 0.2 | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 4.1 | $ | — | N/A | (0.1 | ) | ||||||||||||||||
Transfers into Level 3 from | — | 3.8 | N/A | — | 6.2 | N/A | |||||||||||||||||||
IES Segment — Electric Contracts | |||||||||||||||||||||||||
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Transfers into Level 1 from | N/A | $ | 0.2 | $ | — | N/A | $ | — | $ | — | |||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 8.5 | $ | — | N/A | 5.4 | |||||||||||||||||
Transfers into Level 3 from | — | 6.4 | N/A | — | 6.2 | N/A | |||||||||||||||||||
Significant unobservable inputs used in the valuation of derivatives categorized in Level 3 | ' | ||||||||||||||||||||||||
The amounts and percentages listed in the table below represent the range of unobservable inputs used in the valuations that individually had a significant impact on the fair value determination and caused a derivative to be classified as Level 3 at June 30, 2014: | |||||||||||||||||||||||||
Fair Value (Millions) | |||||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Unobservable Input | Average or Range | |||||||||||||||||||||
Utility Segments | |||||||||||||||||||||||||
FTRs | $ | 5.9 | $ | 0.7 | Market-based | Forward market prices ($/megawatt-month) (1) | $222.54 | ||||||||||||||||||
Coal contracts | 2.7 | 1.8 | Market-based | Forward market prices ($/ton) (2) | $12.49 — $15.90 | ||||||||||||||||||||
IES Segment | |||||||||||||||||||||||||
Natural gas contracts | 29.9 | 24.9 | Market-based | Forward market prices ($/dekatherm) (3) | ($1.55) — $8.68 | ||||||||||||||||||||
Probability of default (4) | 11.7% — 51.0% | ||||||||||||||||||||||||
Electric contracts | 19.5 | 4.6 | Market-based | Forward market prices ($/megawatt-hours) (3) | ($3.55) — $12.13 | ||||||||||||||||||||
Probability of default (4) | 26.00% | ||||||||||||||||||||||||
Option volatilities (5) | 18.8% — 163.5% | ||||||||||||||||||||||||
Monthly curve shaping (6) | (65.2)% — (14.8)% | ||||||||||||||||||||||||
Contingent consideration related to the acquisition of Compass | N/A | 6.6 | Income-based | Growth rate (7) | (34.3)% — 48.7% | ||||||||||||||||||||
(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. In July 2014, IES settled this contingent liability for $4.3 million. | ||||||||||||||||||||||||
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 June 30, 2014 | IES Segment | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration | FTRs | Coal | Total | |||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance at the beginning of the period | $ | 5.5 | $ | 18.7 | $ | (7.8 | ) | $ | 0.7 | $ | 0.3 | $ | 17.4 | ||||||||||||
Net realized and unrealized gains (losses) included in earnings | 0.2 | (1.0 | ) | — | — | — | (0.8 | ) | |||||||||||||||||
Net unrealized gains recorded as regulatory assets or liabilities | — | — | — | 0.2 | 0.8 | 1 | |||||||||||||||||||
Purchases | — | 0.6 | — | 5.6 | — | 6.2 | |||||||||||||||||||
Sales | — | — | — | — | — | — | |||||||||||||||||||
Settlements | (1.0 | ) | (3.1 | ) | 1.2 | (1.3 | ) | (0.2 | ) | (4.4 | ) | ||||||||||||||
Net transfers into Level 3 | 0.7 | 3.8 | — | — | — | 4.5 | |||||||||||||||||||
Net transfers out of Level 3 | (0.4 | ) | (4.1 | ) | — | — | — | (4.5 | ) | ||||||||||||||||
Balance at the end of the period | $ | 5 | $ | 14.9 | $ | (6.6 | ) | $ | 5.2 | $ | 0.9 | $ | 19.4 | ||||||||||||
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period | $ | 0.2 | $ | (1.0 | ) | $ | — | $ | — | $ | — | $ | (0.8 | ) | |||||||||||
Three Months Ended June 30, 2013 | IES Segment | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration | FTRs | Coal | Total | |||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance at the beginning of the period | $ | 1.7 | $ | 6.1 | $ | — | $ | 0.9 | $ | (4.6 | ) | $ | 4.1 | ||||||||||||
Net realized and unrealized (losses) gains included in earnings | (1.4 | ) | (9.4 | ) | — | 0.1 | — | (10.7 | ) | ||||||||||||||||
Net unrealized (losses) gains recorded as regulatory assets or liabilities | — | — | — | (0.7 | ) | 3.6 | 2.9 | ||||||||||||||||||
Purchases | 7 | 0.9 | (7.7 | ) | 4.9 | — | 5.1 | ||||||||||||||||||
Sales | — | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||||||
Settlements | (0.9 | ) | 0.2 | — | (1.2 | ) | (1.3 | ) | (3.2 | ) | |||||||||||||||
Net transfers into Level 3 | 1.3 | 6.2 | — | — | — | 7.5 | |||||||||||||||||||
Net transfers out of Level 3 | — | 0.1 | — | — | — | 0.1 | |||||||||||||||||||
Balance at the end of the period | $ | 7.7 | $ | 4.1 | $ | (7.7 | ) | $ | 3.9 | $ | (2.3 | ) | $ | 5.7 | |||||||||||
Net unrealized losses included in earnings related to instruments still held at the end of the period | $ | (1.4 | ) | $ | (9.4 | ) | $ | — | $ | — | $ | — | $ | (10.8 | ) | ||||||||||
Six Months Ended June 30, 2014 | IES Segment | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration | FTRs | Coal | Total | |||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance at the beginning of the period | $ | 10.4 | $ | 12.4 | $ | (7.8 | ) | $ | 1.8 | $ | (2.5 | ) | $ | 14.3 | |||||||||||
Net realized and unrealized (losses) gains included in earnings | (6.0 | ) | 11.6 | — | 0.4 | — | 6 | ||||||||||||||||||
Net unrealized gains recorded as regulatory assets or liabilities | — | — | — | 0.2 | 3 | 3.2 | |||||||||||||||||||
Purchases | — | 1.3 | — | 5.5 | — | 6.8 | |||||||||||||||||||
Sales | — | (0.7 | ) | — | — | — | (0.7 | ) | |||||||||||||||||
Settlements | (0.5 | ) | (7.6 | ) | 1.2 | (2.7 | ) | 0.4 | (9.2 | ) | |||||||||||||||
Net transfers into Level 3 | 1.6 | 6.4 | — | — | — | 8 | |||||||||||||||||||
Net transfers out of Level 3 | (0.5 | ) | (8.5 | ) | — | — | — | (9.0 | ) | ||||||||||||||||
Balance at the end of the period | $ | 5 | $ | 14.9 | $ | (6.6 | ) | $ | 5.2 | $ | 0.9 | $ | 19.4 | ||||||||||||
Net unrealized (losses) gains included in earnings related to instruments still held at the end of the period | $ | (6.0 | ) | $ | 11.6 | $ | — | $ | — | $ | — | $ | 5.6 | ||||||||||||
Six Months Ended June 30, 2013 | IES Segment | Utility Segments | |||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Contingent Consideration | FTRs | Coal | Total | |||||||||||||||||||
Contracts | |||||||||||||||||||||||||
Balance at the beginning of the period | $ | 3.9 | $ | (4.3 | ) | $ | — | $ | 2 | $ | (6.5 | ) | $ | (4.9 | ) | ||||||||||
Net realized and unrealized (losses) gains included in earnings | (2.9 | ) | 5.7 | — | 0.4 | — | 3.2 | ||||||||||||||||||
Net unrealized (losses) gains recorded as regulatory assets or liabilities | — | — | — | (0.9 | ) | 6.7 | 5.8 | ||||||||||||||||||
Purchases | 7 | 1.6 | (7.7 | ) | 4.9 | — | 5.8 | ||||||||||||||||||
Sales | — | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||||||
Settlements | (1.8 | ) | 0.3 | — | (2.4 | ) | (2.5 | ) | (6.4 | ) | |||||||||||||||
Net transfers into Level 3 | 1.5 | 6.2 | — | — | — | 7.7 | |||||||||||||||||||
Net transfers out of Level 3 | — | (5.4 | ) | — | — | — | (5.4 | ) | |||||||||||||||||
Balance at the end of the period | $ | 7.7 | $ | 4.1 | $ | (7.7 | ) | $ | 3.9 | $ | (2.3 | ) | $ | 5.7 | |||||||||||
Net unrealized (losses) gains included in earnings related to instruments still held at the end of the period | $ | (2.9 | ) | $ | 5.7 | $ | — | $ | — | $ | — | $ | 2.8 | ||||||||||||
Schedule of carrying value and estimated fair value of financial instruments not recorded at fair value | ' | ||||||||||||||||||||||||
The following table shows the financial instruments included on our balance sheets that are not recorded at fair value: | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(Millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||
Long-term debt | $ | 2,956.20 | $ | 3,083.10 | $ | 3,056.20 | $ | 3,031.60 | |||||||||||||||||
Preferred stock of subsidiary | 51.1 | 60.9 | 51.1 | 61.2 | |||||||||||||||||||||
SEGMENTS_OF_BUSINESS_Tables
SEGMENTS OF BUSINESS (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of information related to reportable segments | ' | ||||||||||||||||||||||||||||||||
The tables below present information related to our reportable segments: | |||||||||||||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated Operations | ||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | IES | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Company | Eliminations | Energy Group | |||||||||||||||||||||||||||
Investment | Operations | and Other | Consolidated | ||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||||||
External revenues | $ | 493.5 | $ | 312.6 | $ | — | $ | 806.1 | $ | 600 | $ | 26.5 | $ | — | $ | 1,432.60 | |||||||||||||||||
Intersegment revenues | 2.8 | — | — | 2.8 | 0.4 | 0.3 | (3.5 | ) | — | ||||||||||||||||||||||||
Goodwill impairment loss | — | — | — | — | 6.7 | — | — | 6.7 | |||||||||||||||||||||||||
Merger transaction costs | — | — | — | — | — | 5.9 | — | 5.9 | |||||||||||||||||||||||||
Transaction costs related to pending sale of UPPCO | — | — | — | — | — | 0.9 | — | 0.9 | |||||||||||||||||||||||||
Transaction costs related to pending sale of IES retail energy business | — | — | — | — | — | 0.8 | — | 0.8 | |||||||||||||||||||||||||
Depreciation and amortization expense | 36.9 | 26.3 | — | 63.2 | 3 | 6.9 | (0.2 | ) | 72.9 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 23 | 23 | 0.8 | 0.1 | — | 23.9 | |||||||||||||||||||||||||
Miscellaneous income (expense) | (0.4 | ) | 2.8 | — | 2.4 | 0.4 | 5.4 | (3.2 | ) | 5 | |||||||||||||||||||||||
Interest expense | 13.2 | 12.1 | — | 25.3 | 0.5 | 16.1 | (3.2 | ) | 38.7 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | (7.3 | ) | 11 | 9.2 | 12.9 | 2.4 | (7.1 | ) | — | 8.2 | |||||||||||||||||||||||
Net income (loss) from continuing operations | (10.5 | ) | 17.8 | 13.8 | 21.1 | (1.5 | ) | (11.5 | ) | — | 8.1 | ||||||||||||||||||||||
Discontinued operations | — | — | — | — | (0.1 | ) | — | — | (0.1 | ) | |||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.1 | ) | (0.7 | ) | — | (0.8 | ) | — | — | — | (0.8 | ) | |||||||||||||||||||||
Net income (loss) attributed to common shareholders | (10.6 | ) | 17.1 | 13.8 | 20.3 | (1.6 | ) | (11.5 | ) | — | 7.2 | ||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated Operations | ||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | IES | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Company | Eliminations | Energy Group | |||||||||||||||||||||||||||
Investment | Operations | and Other | Consolidated | ||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||||||
External revenues | $ | 367.4 | $ | 327 | $ | — | $ | 694.4 | $ | 412.6 | $ | 9 | $ | — | $ | 1,116.00 | |||||||||||||||||
Intersegment revenues | 2.5 | — | — | 2.5 | 0.3 | 0.3 | (3.1 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 32.3 | 25.8 | — | 58.1 | 2.8 | 4.8 | (0.2 | ) | 65.5 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 22 | 22 | 0.5 | 0.3 | — | 22.8 | |||||||||||||||||||||||||
Miscellaneous income | 0.2 | 2.2 | — | 2.4 | 1.4 | 5.1 | (3.4 | ) | 5.5 | ||||||||||||||||||||||||
Interest expense | 11.9 | 8.5 | — | 20.4 | 0.5 | 11.1 | (3.4 | ) | 28.6 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | (0.7 | ) | 15.7 | 8.4 | 23.4 | (22.2 | ) | (4.5 | ) | — | (3.3 | ) | |||||||||||||||||||||
Net income (loss) from continuing operations | 1.7 | 24.3 | 13.6 | 39.6 | (41.1 | ) | (2.4 | ) | — | (3.9 | ) | ||||||||||||||||||||||
Discontinued operations | — | — | — | — | (0.7 | ) | (0.1 | ) | — | (0.8 | ) | ||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.2 | ) | (0.6 | ) | — | (0.8 | ) | — | — | — | (0.8 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | 1.5 | 23.7 | 13.6 | 38.8 | (41.8 | ) | (2.4 | ) | — | (5.4 | ) | ||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated Operations | ||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | IES | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Company | Eliminations | Energy Group | |||||||||||||||||||||||||||
Investment | Operations | and Other | Consolidated | ||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||||||
External revenues | $ | 1,761.00 | $ | 661.8 | $ | — | $ | 2,422.80 | $ | 1,889.60 | $ | 45.1 | $ | — | $ | 4,357.50 | |||||||||||||||||
Intersegment revenues | 7.3 | — | — | 7.3 | 3 | 0.7 | (11.0 | ) | — | ||||||||||||||||||||||||
Goodwill impairment loss | — | — | — | — | 6.7 | — | — | 6.7 | |||||||||||||||||||||||||
Merger transaction costs | — | — | — | — | — | 5.9 | — | 5.9 | |||||||||||||||||||||||||
Transaction costs related to pending sale of UPPCO | — | — | — | — | — | 0.9 | — | 0.9 | |||||||||||||||||||||||||
Transaction costs related to pending sale of IES retail energy business | — | — | — | — | — | 0.8 | — | 0.8 | |||||||||||||||||||||||||
Depreciation and amortization expense | 73.3 | 51.9 | — | 125.2 | 5.9 | 13.4 | (0.3 | ) | 144.2 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 45.5 | 45.5 | 0.9 | 0.4 | — | 46.8 | |||||||||||||||||||||||||
Miscellaneous income (expense) | (0.1 | ) | 6.3 | — | 6.2 | 0.7 | 10.8 | (6.7 | ) | 11 | |||||||||||||||||||||||
Interest expense | 26.6 | 23.8 | — | 50.4 | 1 | 33.1 | (6.7 | ) | 77.8 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | 59.4 | 29.1 | 18 | 106.5 | 8.3 | (16.8 | ) | — | 98 | ||||||||||||||||||||||||
Net income (loss) from continuing operations | 88.7 | 49.6 | 27.5 | 165.8 | 9.4 | (13.9 | ) | — | 161.3 | ||||||||||||||||||||||||
Discontinued operations | — | — | — | — | (0.2 | ) | — | — | (0.2 | ) | |||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.2 | ) | (1.4 | ) | — | (1.6 | ) | — | — | — | (1.6 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | 88.5 | 48.2 | 27.5 | 164.2 | 9.2 | (13.8 | ) | — | 159.6 | ||||||||||||||||||||||||
Regulated Operations | Nonutility and Nonregulated Operations | ||||||||||||||||||||||||||||||||
(Millions) | Natural Gas | Electric | Electric | Total | IES | Holding | Reconciling | Integrys | |||||||||||||||||||||||||
Utility | Utility | Transmission | Regulated | Company | Eliminations | Energy Group | |||||||||||||||||||||||||||
Investment | Operations | and Other | Consolidated | ||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||||||
External revenues | $ | 1,159.40 | $ | 658.8 | $ | — | $ | 1,818.20 | $ | 958 | $ | 18 | $ | — | $ | 2,794.20 | |||||||||||||||||
Intersegment revenues | 4.4 | — | — | 4.4 | 0.6 | 0.7 | (5.7 | ) | — | ||||||||||||||||||||||||
Depreciation and amortization expense | 64.5 | 47.3 | — | 111.8 | 5.5 | 9.4 | (0.3 | ) | 126.4 | ||||||||||||||||||||||||
Earnings from equity method investments | — | — | 43.7 | 43.7 | 0.7 | 0.7 | — | 45.1 | |||||||||||||||||||||||||
Miscellaneous income | 0.4 | 3.8 | — | 4.2 | 1.8 | 12.3 | (7.1 | ) | 11.2 | ||||||||||||||||||||||||
Interest expense | 24.6 | 17.6 | — | 42.2 | 1 | 21.8 | (7.1 | ) | 57.9 | ||||||||||||||||||||||||
Provision (benefit) for income taxes | 62.6 | 31.8 | 16.7 | 111.1 | 5.1 | (9.9 | ) | — | 106.3 | ||||||||||||||||||||||||
Net income (loss) from continuing operations | 91.5 | 53.6 | 27 | 172.1 | 10.2 | (4.0 | ) | — | 178.3 | ||||||||||||||||||||||||
Discontinued operations | — | — | — | — | (0.6 | ) | 5.9 | — | 5.3 | ||||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.3 | ) | (1.3 | ) | — | (1.6 | ) | — | — | — | (1.6 | ) | |||||||||||||||||||||
Noncontrolling interest in subsidiaries | — | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||||||
Net income attributed to common shareholders | 91.2 | 52.3 | 27 | 170.5 | 9.6 | 2 | — | 182.1 | |||||||||||||||||||||||||
PROPOSED_MERGER_WITH_WISCONSIN1
PROPOSED MERGER WITH WISCONSIN ENERGY CORPORATION (Details) (USD $) | 1 Months Ended |
Jun. 30, 2014 | |
customer | |
Business Combinations [Abstract] | ' |
Number of Wisconsin Energy shares per Integrys Energy Group share | 1.128 |
Cash per share of Integrys Energy Group common stock | $18.58 |
Integrys Energy Group shareholder's ownership percentage of combined company | 28.00% |
Wisconsin Energy shareholder's ownership percentage of combined company | 72.00% |
Number of total natural gas and electric customers upon closing of the merger | 4,300,000 |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 6 Months Ended | 1 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2014 |
Alliant Energy Corporation's natural gas distribution business in southeast Minnesota | Fox Energy Company LLC | Fox Energy Company LLC | |||
MERC | WPS | WPS | |||
MW | |||||
Acquisitions | ' | ' | ' | ' | ' |
Estimated purchase price | ' | ' | $14 | ' | ' |
Purchase price | 0 | 391.6 | ' | 391.6 | ' |
Capacity of electric generating facility | ' | ' | ' | 593 | ' |
Assets acquired | ' | ' | ' | ' | ' |
Inventories | ' | ' | ' | 3 | ' |
Other current assets | ' | ' | ' | 0.4 | ' |
Property, plant, and equipment | ' | ' | ' | 374.4 | ' |
Other long-term assets | ' | ' | ' | 15.6 | ' |
Total assets acquired | ' | ' | ' | 393.4 | ' |
Liabilities assumed | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | 1.8 | ' |
Total liabilities assumed | ' | ' | ' | 1.8 | ' |
Contracted capacity from power purchase agreement | ' | ' | ' | 500 | ' |
Termination of tolling agreement with Fox Energy Company LLC | $0 | ($50) | ' | $50 | ' |
Amortization period of regulatory asset | ' | ' | ' | ' | '9 years |
DISPOSITIONS_DISPOSITIONS_EXCL
DISPOSITIONS - DISPOSITIONS EXCLUDING DISCONTINUED OPERATIONS (Details) (USD $) | 31-May-14 | Jul. 31, 2014 | Jan. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 |
In Millions, unless otherwise specified | Integrys Energy Services | Integrys Energy Services | Electric Utility | Electric Utility | Electric Utility | Electric Utility | Electric Utility |
IES retail energy business | IES retail energy business | UPPCO | UPPCO | UPPCO | UPPCO | UPPCO | |
Subsequent event | Minimum | Maximum | |||||
Disclosures related to the disposal | ' | ' | ' | ' | ' | ' | ' |
Expected proceeds from sale | ' | $60 | $298.80 | ' | ' | ' | ' |
Net working capital | 183 | ' | ' | ' | ' | ' | ' |
Transition period for services | ' | '15 months | ' | ' | ' | '18 months | '30 months |
Intercompany payables included in sale | ' | ' | ' | 2.2 | 1.6 | ' | ' |
Assets and liabilities classified as held for sale on balance sheets | ' | ' | ' | ' | ' | ' | ' |
Current assets | ' | ' | ' | 24.6 | 26.5 | ' | ' |
Property, plant, and equipment, net of accumulated depreciation of $90.5 and $88.9, respectively | ' | ' | ' | 193.3 | 193.8 | ' | ' |
Accumulated depreciation | ' | ' | ' | 90.5 | 88.9 | ' | ' |
Other long-term assets | ' | ' | ' | 71.8 | 51.6 | ' | ' |
Total assets | ' | ' | ' | 289.7 | 271.9 | ' | ' |
Current liabilities | ' | ' | ' | 13.8 | 16.7 | ' | ' |
Long-term liabilities | ' | ' | ' | 29.2 | 32.4 | ' | ' |
Total liabilities | ' | ' | ' | $43 | $49.10 | ' | ' |
DISPOSITIONS_DISCONTINUED_OPER
DISPOSITIONS - DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Discontinued operations recorded in income statements | ' | ' | ' | ' | ' |
Discontinued operations, net of tax | ($0.10) | ($0.80) | ($0.20) | $5.30 | ' |
Holding Company and Other | ' | ' | ' | ' | ' |
Discontinued operations recorded in income statements | ' | ' | ' | ' | ' |
Discontinued operations, net of tax | ' | -0.1 | ' | 5.9 | ' |
Integrys Energy Services | Combined Locks Energy Center | ' | ' | ' | ' | ' |
Assets classified as held for sale on balance sheets | ' | ' | ' | ' | ' |
Total assets | 0.7 | ' | 0.7 | ' | 0.7 |
Discontinued operations recorded in income statements | ' | ' | ' | ' | ' |
Discontinued operations, net of tax | -0.1 | -0.7 | -0.2 | -0.8 | ' |
Integrys Energy Services | WPS Empire State, Inc | WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC | ' | ' | ' | ' | ' |
Discontinued operations recorded in income statements | ' | ' | ' | ' | ' |
Discontinued operations, net of tax | ' | ' | ' | $0.20 | ' |
CASH_AND_CASH_EQUIVALENTS_Deta
CASH AND CASH EQUIVALENTS (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Significant noncash transactions | ' | ' |
Construction costs funded through accounts payable | $123.30 | $81.80 |
Equity issued for employee stock ownership plan | 1.7 | 6.7 |
Equity issued for stock-based compensation plans | 0 | 16 |
Equity issued for reinvested dividends | 0 | 6.1 |
Contingent consideration and payables related to the acquisition of Compass Energy Services | 0 | 9.1 |
Noncurrent restricted cash | ' | ' |
Rabbi trust funding related to potential change in control | $65 | ' |
RISK_MANAGEMENT_ACTIVITIES_RIS
RISK MANAGEMENT ACTIVITIES - RISK MANAGEMENT ASSETS AND LIABILITIES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | $253.40 | $239.50 |
Long-term assets from risk management activities | 88.3 | 75.4 |
Risk Management Assets | 342.9 | 315.5 |
Current liabilities from risk management activities | 167.9 | 163.8 |
Long-term liabilities from risk management activities | 61.1 | 62.8 |
Risk Management Liabilities | 229 | 226.6 |
Non-hedge derivatives | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 254.6 | 240.1 |
Long-term assets from risk management activities | 88.3 | 75.4 |
Risk Management Assets | 342.9 | 315.5 |
Current liabilities from risk management activities | 167.9 | 163.8 |
Long-term liabilities from risk management activities | 61.1 | 62.8 |
Risk Management Liabilities | 229 | 226.6 |
Non-hedge derivatives | Utility segments | Natural gas contracts | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 9 | 8.3 |
Long-term assets from risk management activities | 1.2 | 1.8 |
Current liabilities from risk management activities | 0.9 | 1 |
Long-term liabilities from risk management activities | 0.1 | 0.1 |
Non-hedge derivatives | Utility segments | FTRs | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 5.9 | 2.1 |
Current liabilities from risk management activities | 0.7 | 0.3 |
Non-hedge derivatives | Utility segments | FTRs | UPPCO | ' | ' |
Disclosures related to the disposal | ' | ' |
Current risk management assets classified as held for sale | 1.2 | 0.6 |
Non-hedge derivatives | Utility segments | Petroleum product contracts | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 0.3 | 0.1 |
Current liabilities from risk management activities | 0 | 0 |
Non-hedge derivatives | Utility segments | Coal contracts | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 0 | 0 |
Long-term assets from risk management activities | 2.7 | 0.2 |
Current liabilities from risk management activities | 1.6 | 1.9 |
Long-term liabilities from risk management activities | 0.2 | 0.8 |
Non-hedge derivatives | Integrys Energy Services | Natural gas contracts | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 54.8 | 57.6 |
Long-term assets from risk management activities | 24.7 | 29.5 |
Current liabilities from risk management activities | 41.3 | 42.9 |
Long-term liabilities from risk management activities | 13.4 | 18.6 |
Non-hedge derivatives | Integrys Energy Services | Electric contracts | ' | ' |
Derivative assets and liabilities from risk management activities | ' | ' |
Current assets from risk management activities | 184.6 | 172 |
Long-term assets from risk management activities | 59.7 | 43.9 |
Current liabilities from risk management activities | 123.4 | 117.7 |
Long-term liabilities from risk management activities | $47.40 | $43.30 |
RISK_MANAGEMENT_ACTIVITIES_NET
RISK MANAGEMENT ACTIVITIES - NETTING ARRANGEMENTS (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Derivative assets subject to master netting or similar arrangements, gross amount | $340.10 | $314.20 |
Potential effects of netting, including cash collateral | 199.4 | 180.2 |
Derivative assets subject to master netting or similar arrangements, net amount | 140.7 | 134 |
Derivative assets not subject to master netting or similar arrangements | 2.8 | 1.3 |
Risk Management Assets | 342.9 | 315.5 |
Total Risk Management Assets, Net Amount | 143.5 | 135.3 |
Liabilities | ' | ' |
Derivative liabilities subject to master netting or similar arrangements, gross amount | 227.1 | 223.5 |
Potential effects of netting, including cash collateral | 200 | 179.5 |
Derivative liabilities subject to master netting or similar arrangements, net amount | 27.1 | 44 |
Derivative liabilities not subject to master netting or similar arrangement | 1.9 | 3.1 |
Risk Management Liabilities | 229 | 226.6 |
Total Risk Management Liabilities, Net Amount | 29 | 47.1 |
Utility segments | ' | ' |
Assets | ' | ' |
Derivative assets subject to master netting or similar arrangements, gross amount | 16.3 | 12.3 |
Potential effects of netting, including cash collateral | 1.7 | 2.1 |
Derivative assets subject to master netting or similar arrangements, net amount | 14.6 | 10.2 |
Liabilities | ' | ' |
Derivative liabilities subject to master netting or similar arrangements, gross amount | 1.7 | 1.4 |
Potential effects of netting, including cash collateral | 1.7 | 1.4 |
Derivative liabilities subject to master netting or similar arrangements, net amount | 0 | 0 |
Integrys Energy Services | ' | ' |
Assets | ' | ' |
Derivative assets subject to master netting or similar arrangements, gross amount | 323.8 | 301.9 |
Potential effects of netting, including cash collateral | 197.7 | 178.1 |
Derivative assets subject to master netting or similar arrangements, net amount | 126.1 | 123.8 |
Liabilities | ' | ' |
Derivative liabilities subject to master netting or similar arrangements, gross amount | 225.4 | 222.1 |
Potential effects of netting, including cash collateral | 198.3 | 178.1 |
Derivative liabilities subject to master netting or similar arrangements, net amount | $27.10 | $44 |
RISK_MANAGEMENT_ACTIVITIES_CAS
RISK MANAGEMENT ACTIVITIES - CASH COLLATERAL AND CREDIT-RISK RELATED CONTINGENT FEATURES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Cash collateral | ' | ' |
Cash collateral provided to others, related to contracts under master netting or similar arrangements | $39.10 | $37.60 |
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 | 0.7 |
UPPCO | ' | ' |
Disclosures related to the disposal | ' | ' |
Cash collateral provided to others classified as held for sale | 1.3 | 1.3 |
Utility segments | ' | ' |
Credit-risk related contingent features | ' | ' |
Aggregate fair value of derivative instruments with credit risk-related contingent features that were in a liability position | 0.6 | 0.6 |
Collateral that would have been required | 0 | 0 |
Integrys Energy Services | ' | ' |
Credit-risk related contingent features | ' | ' |
Aggregate fair value of derivative instruments with credit risk-related contingent features that were in a liability position | 44.9 | 76.7 |
Collateral that would have been required | 173.3 | 197.6 |
Collateral already satisfied, letters of credit | 4 | 4.5 |
Collateral remaining | $169.30 | $193.10 |
RISK_MANAGEMENT_ACTIVITIES_UTI
RISK MANAGEMENT ACTIVITIES - UTILITY SEGMENTS, NOTIONAL VOLUMES (Details) (Non-hedge derivatives, Utility segments) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
MMBTU | MMBTU | |
Natural gas contracts | Purchases | ' | ' |
Risk management activities | ' | ' |
Notional volume of outstanding derivative contracts (mmbtu or kwh) | 221,300,000 | 312,480,000 |
Natural gas contracts | Sales | ' | ' |
Risk management activities | ' | ' |
Notional volume of outstanding derivative contracts (mmbtu or kwh) | 200,000 | 2,930,000 |
FTRs | Other transactions | ' | ' |
Risk management activities | ' | ' |
Notional volume of outstanding derivative contracts (mmbtu or kwh) | 8,359,800,000 | 3,633,100,000 |
Petroleum product contracts | Purchases | ' | ' |
Risk management activities | ' | ' |
Notional volume of outstanding derivative contracts (barrels) | 100,000 | 100,000 |
Petroleum product contracts | Sales | ' | ' |
Risk management activities | ' | ' |
Notional volume of outstanding derivative contracts (barrels) | 0 | 0 |
Coal contracts | Purchases | ' | ' |
Risk management activities | ' | ' |
Notional volume of outstanding non-hedge derivative contracts (tons) | 4,000,000 | 4,800,000 |
Coal contracts | Sales | ' | ' |
Risk management activities | ' | ' |
Notional volume of outstanding non-hedge derivative contracts (tons) | 0 | 0 |
RISK_MANAGEMENT_ACTIVITIES_UTI1
RISK MANAGEMENT ACTIVITIES - UTILITY SEGMENTS, UNREALIZED GAINS AND LOSSES (Details) (Utility segments, USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Natural gas contracts | Balance Sheet - Regulatory assets (current) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | ($1) | ($5.60) | ($0.10) | $7.40 |
Natural gas contracts | Balance Sheet - Regulatory assets (long-term) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | 0 | -1 | -0.2 | -0.2 |
Natural gas contracts | Balance Sheet - Regulatory liabilities (current) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | -3.4 | -5.7 | 0 | 0.2 |
Natural gas contracts | Balance Sheet - Regulatory liabilities (long-term) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | 0.1 | -1.1 | -0.3 | -0.3 |
Natural gas contracts | Income Statement - Operating and maintenance expense | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | -0.1 | -0.3 | 0.1 | -0.1 |
FTRs | Balance Sheet - Regulatory assets (current) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | -1.1 | -1 | -0.9 | -0.8 |
FTRs | Balance Sheet - Regulatory liabilities (current) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | 1.3 | 0.3 | 1.1 | -0.1 |
Petroleum product contracts | Balance Sheet - Regulatory assets (current) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | 0 | -0.1 | 0 | -0.1 |
Petroleum product contracts | Income Statement - Operating and maintenance expense | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | 0.1 | 0 | 0.1 | 0 |
Coal contracts | Balance Sheet - Regulatory assets (current) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | -0.3 | 0.8 | -0.1 | 2.7 |
Coal contracts | Balance Sheet - Regulatory assets (long-term) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | 0.2 | 1.7 | 0.6 | 4 |
Coal contracts | Balance Sheet - Regulatory liabilities (current) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | 0 | -0.1 | 0 | -0.3 |
Coal contracts | Balance Sheet - Regulatory liabilities (long-term) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Unrealized gain (loss) related to non-hedge derivative contracts | $0.90 | $0 | $2.50 | ($2.20) |
RISK_MANAGEMENT_ACTIVITIES_INT
RISK MANAGEMENT ACTIVITIES - INTEGRYS ENERGY SERVICES SEGMENT, NOTIONAL VOLUMES (Details) (Non-hedge derivatives, Integrys Energy Services) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
MMBTU | MMBTU | |
Natural gas contracts | Purchases | ' | ' |
Risk management activities | ' | ' |
Notional volume of outstanding derivative contracts (mmbtu or kwh) | 116,460,000 | 119,990,000 |
Natural gas contracts | Sales | ' | ' |
Risk management activities | ' | ' |
Notional volume of outstanding derivative contracts (mmbtu or kwh) | 126,250,000 | 106,540,000 |
Electric contracts | Purchases | ' | ' |
Risk management activities | ' | ' |
Notional volume of outstanding derivative contracts (mmbtu or kwh) | 40,031,900,000 | 49,186,300,000 |
Electric contracts | Sales | ' | ' |
Risk management activities | ' | ' |
Notional volume of outstanding derivative contracts (mmbtu or kwh) | 23,508,900,000 | 30,813,800,000 |
RISK_MANAGEMENT_ACTIVITIES_INT1
RISK MANAGEMENT ACTIVITIES - INTEGRYS ENERGY SERVICES SEGMENT, GAINS AND LOSSES (Details) (Integrys Energy Services, USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Risk management activities | ' | ' | ' | ' |
Gains (losses) recorded related to non-hedge derivatives (total) | $22.20 | ($70.10) | $179.20 | ($5.40) |
Natural gas contracts | Nonregulated revenue | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Gains (losses) recorded related to non-hedge derivatives | 10 | 33.8 | -26.9 | 37.2 |
Natural gas contracts | Nonregulated cost of sales | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Gains (losses) recorded related to non-hedge derivatives | -5 | -32.9 | 28 | -34.5 |
Natural gas contracts | Nonregulated revenue (reclassified from accumulated OCI) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Gains (losses) recorded related to non-hedge derivatives (prior cash flow hedge) | 0 | -0.1 | 0 | -0.2 |
Electric contracts | Nonregulated revenue | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Gains (losses) recorded related to non-hedge derivatives | 15.8 | -77.6 | 176.1 | -13.6 |
Electric contracts | Nonregulated cost of sales | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Gains (losses) recorded related to non-hedge derivatives | 1.4 | 8.7 | 2 | 8.7 |
Electric contracts | Nonregulated revenue (reclassified from accumulated OCI) | ' | ' | ' | ' |
Risk management activities | ' | ' | ' | ' |
Gains (losses) recorded related to non-hedge derivatives (prior cash flow hedge) | $0 | ($2) | $0 | ($3) |
INVESTMENT_IN_ATC_ROLL_FORWARD
INVESTMENT IN ATC - ROLL FORWARD (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in equity method investments | ' | ' | ' | ' |
Equity method investments balance at beginning of period | ' | ' | $540.90 | ' |
Add: Earnings from equity method investment | 23.9 | 22.8 | 46.8 | 45.1 |
Add: Capital contributions | ' | ' | 10.2 | 6.8 |
Equity method investments balance at end of period | 559.6 | ' | 559.6 | ' |
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 | 517.6 | 482.7 | 508.4 | 476.6 |
Add: Earnings from equity method investment | 23 | 22 | 45.5 | 43.7 |
Add: Capital contributions | 5.1 | 5.1 | 10.2 | 6.8 |
Less: Dividends received | 18.4 | 17.6 | 36.8 | 34.9 |
Equity method investments balance at end of period | $527.30 | $492.20 | $527.30 | $492.20 |
INVESTMENT_IN_ATC_INCOME_STATE
INVESTMENT IN ATC - INCOME STATEMENT AND BALANCE SHEET (Details) (ATC, USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
ATC | ' | ' | ' | ' | ' |
Income statement data | ' | ' | ' | ' | ' |
Revenues | $160 | $152.10 | $323.30 | $303.90 | ' |
Operating expenses | 74.4 | 69.9 | 153 | 139.7 | ' |
Other expense | 21.9 | 20.9 | 43.5 | 42.4 | ' |
Net income | 63.7 | 61.3 | 126.8 | 121.8 | ' |
Balance sheet data | ' | ' | ' | ' | ' |
Current assets | 80.6 | ' | 80.6 | ' | 80.7 |
Noncurrent assets | 3,612.70 | ' | 3,612.70 | ' | 3,509.50 |
Total assets | 3,693.30 | ' | 3,693.30 | ' | 3,590.20 |
Current liabilities | 419.8 | ' | 419.8 | ' | 381.5 |
Long-term debt | 1,550 | ' | 1,550 | ' | 1,550 |
Other noncurrent liabilities | 135.3 | ' | 135.3 | ' | 126.1 |
Shareholders' equity | 1,588.20 | ' | 1,588.20 | ' | 1,532.60 |
Total liabilities and shareholders' equity | $3,693.30 | ' | $3,693.30 | ' | $3,590.20 |
INVENTORIES_Details
INVENTORIES (Details) (PGL and NSG, USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
PGL and NSG | ' |
Temporary LIFO liquidation credit [Line Items] | ' |
Temporary LIFO liquidation credit | $57.90 |
GOODWILL_Details
GOODWILL (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in the gross carrying amount of goodwill and accumulated impairment losses | ' | ' | ' | ' | ' |
Balance at the beginning of the period, gross goodwill | ' | ' | ' | $959.70 | ' |
Balance at the beginning of the period, accumulated impairment losses | ' | ' | ' | -297.6 | ' |
Balance at the beginning of the period, net goodwill | ' | ' | ' | 662.1 | ' |
Rounding adjustment | ' | ' | ' | 0 | ' |
Goodwill impairment loss | 0 | -6.7 | 0 | -6.7 | 0 |
Balance at the end of the period, gross goodwill | ' | 959.8 | ' | 959.8 | ' |
Balance at the end of the period, accumulated impairment losses | ' | -304.4 | ' | -304.4 | ' |
Balance at the end of the period, net goodwill | ' | 655.4 | ' | 655.4 | ' |
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 | ' |
Rounding adjustment | ' | ' | ' | -0.1 | ' |
Goodwill impairment loss | ' | ' | ' | 0 | ' |
Balance at the end of the period, gross goodwill | ' | 933.5 | ' | 933.5 | ' |
Balance at the end of the period, accumulated impairment losses | ' | -297.7 | ' | -297.7 | ' |
Balance at the end of the period, net goodwill | ' | 635.8 | ' | 635.8 | ' |
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 | ' |
Rounding adjustment | ' | ' | ' | 0.1 | ' |
Goodwill impairment loss | ' | -6.7 | ' | -6.7 | ' |
Balance at the end of the period, gross goodwill | ' | 6.7 | ' | 6.7 | ' |
Balance at the end of the period, accumulated impairment losses | ' | -6.7 | ' | -6.7 | ' |
Balance at the end of the period, net goodwill | ' | 0 | ' | 0 | ' |
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 | ' | ' | ' | 19.6 | ' |
Balance at the beginning of the period, accumulated impairment losses | ' | ' | ' | 0 | ' |
Balance at the beginning of the period, net goodwill | ' | ' | ' | 19.6 | ' |
Rounding adjustment | ' | ' | ' | 0 | ' |
Goodwill impairment loss | ' | ' | ' | 0 | ' |
Balance at the end of the period, gross goodwill | ' | 19.6 | ' | 19.6 | ' |
Balance at the end of the period, accumulated impairment losses | ' | 0 | ' | 0 | ' |
Balance at the end of the period, net goodwill | ' | $19.60 | ' | $19.60 | ' |
INTANGIBLE_ASSETS_OTHER_THAN_G
INTANGIBLE ASSETS OTHER THAN GOODWILL (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
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 | Trade name | Trade name | Trade name | Trade name | Trade name | Trade name | Contractual service agreements | Contractual service agreements | Customer-related | Customer-related | Renewable energy credits | Renewable energy credits | Customer-owned equipment modifications | Customer-owned equipment modifications | Patents/intellectual property | Patents/intellectual property | Compressed natural gas fueling contract assets | Compressed natural gas fueling contract assets | Nonregulated easements | Nonregulated easements | Natural gas and electric contract assets | Natural gas and electric contract assets | Other amortized intangible assets | Other amortized intangible assets | |||
MGU | MGU | Trillium | Trillium | Pinnacle | Pinnacle | |||||||||||||||||||||||||||||
Intangible assets other than goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intangible assets, gross | $80.90 | $82.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intangible assets, net | 53.1 | 58.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized intangible assets, carrying amount, gross | 70.7 | 71.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.6 | 15.6 | 26.8 | 26.8 | 7.2 | 8.4 | 4 | 4 | 3.4 | 3.4 | 5.6 | 5.6 | 3.7 | 3.7 | 3.9 | 3.9 | 0.5 | 0.5 |
Accumulated amortization of intangible assets | -27.8 | -23.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -1.8 | -16.5 | -15.7 | 0 | 0 | -1 | -0.9 | -0.6 | -0.5 | -3.1 | -2.7 | -1.3 | -1.1 | -2 | -0.5 | -0.3 | -0.3 |
Amortized intangible assets, net | 42.9 | 48.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.6 | 13.8 | 10.3 | 11.1 | 7.2 | 8.4 | 3 | 3.1 | 2.8 | 2.9 | 2.5 | 2.9 | 2.4 | 2.6 | 1.9 | 3.4 | 0.2 | 0.2 |
Weighted-average amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | '11 years | ' | ' | ' | '10 years | ' | '8 years | ' | '7 years | ' | '10 years | ' | '3 years | ' | ' | ' |
Amortization expense | ' | ' | 1.1 | 0.5 | 2.1 | 0.9 | 1.1 | 1.2 | 2.2 | 1.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized intangible asset, carrying amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.2 | 5.2 | 3.5 | 3.5 | 1.5 | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense for the next five years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future amortization expense period | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, 2014 | ' | ' | 3.4 | ' | 3.4 | ' | 4.3 | ' | 4.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, 2015 | ' | ' | 2 | ' | 2 | ' | 4.2 | ' | 4.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, 2016 | ' | ' | 1.1 | ' | 1.1 | ' | 4 | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, 2017 | ' | ' | 0.9 | ' | 0.9 | ' | 3.9 | ' | 3.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, 2018 | ' | ' | $0.80 | ' | $0.80 | ' | $3.80 | ' | $3.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHORTTERM_DEBT_AND_LINES_OF_CR2
SHORT-TERM DEBT AND LINES OF CREDIT SHORT-TERM DEBT AND LINES OF CREDIT - SHORT-TERM BORROWINGS (Details) (USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Short-term borrowings | ' | ' | ' |
Short-term borrowings outstanding | $420.70 | ' | $326 |
Commercial paper | ' | ' | ' |
Short-term borrowings | ' | ' | ' |
Short-term borrowings outstanding | 420.7 | ' | 326 |
Average interest rate (as a percent) | 0.24% | ' | 0.22% |
Average amount of short-term borrowings outstanding | $215.60 | $443.20 | ' |
SHORTTERM_DEBT_AND_LINES_OF_CR3
SHORT-TERM DEBT AND LINES OF CREDIT - REVOLVING CREDIT FACILITIES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Short-term borrowings | ' | ' |
Total short-term credit capacity | $1,600 | $1,610 |
Letters of credit issued inside credit facilities | 22.6 | 52.4 |
Short-term borrowings outstanding | 420.7 | 326 |
Available capacity under existing agreements | 1,156.70 | 1,231.60 |
Revolving credit facility maturing on May 17, 2014 | Integrys Energy Group, Inc. | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 0 | 275 |
Revolving credit facility maturing on May 17, 2014 | WPS | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 0 | 135 |
Revolving credit facility maturing on May 7, 2015 | WPS | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 135 | 0 |
Revolving credit facility maturing on May 17, 2016 | Integrys Energy Group, Inc. | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 0 | 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 |
Revolving credit facility maturing on May 8, 2019 | Integrys Energy Group, Inc. | ' | ' |
Short-term borrowings | ' | ' |
Total short-term credit capacity | 465 | 0 |
Commercial paper | ' | ' |
Short-term borrowings | ' | ' |
Short-term borrowings outstanding | $420.70 | $326 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 01, 2014 | Jul. 01, 2014 |
In Millions, unless otherwise specified | WPS | WPS | PGL | PGL | NSG | NSG | Integrys Energy Group, Inc. | Integrys Energy Group, Inc. | Fixed First and Refunding Mortgage VV Series 2.125 Percent Bonds, Due 2030 | Unsecured Senior Notes 7.27 Percent, Due 2014 | Unsecured Senior Notes 7.27 Percent, Due 2014 | Subsequent Event | ||
PGL | Integrys Energy Group, Inc. | Integrys Energy Group, Inc. | Fixed First and Refunding Mortgage VV Series 3.9 Percent Bonds, Due 2030 | |||||||||||
PGL | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Gross | $2,956.90 | $3,056.90 | $1,175.10 | $1,175.10 | $725 | $725 | $82 | $82 | $974.80 | $1,074.80 | $50 | ' | ' | ' |
Unamortized discount on debt | -0.7 | -0.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | 2,956.20 | 3,056.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion of long-term debt | 0 | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 2,956.20 | 2,956.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.13% | ' | 7.27% | 3.90% |
Repayments of Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100 | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Effective tax rate (as a percent) | ' | 50.30% | 45.80% | 37.80% | 37.40% |
Federal statutory tax rate (as a percent) | ' | 35.00% | 35.00% | 35.00% | 35.00% |
Goodwill impairment loss | $0 | $6.70 | $0 | $6.70 | $0 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - UNCONDITIONAL PURCHASE OBLIGATIONS AND PURCHASE ORDER COMMITMENTS (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Minimum future commitments for purchase obligations | ' |
Total Amounts Committed | $2,421.30 |
2014 | 418.8 |
2015 | 534.2 |
2016 | 293.8 |
2017 | 216.1 |
2018 | 155.3 |
Later Years | 803.1 |
Purchase orders | 1,173 |
Natural gas utility supply and transportation | Regulated operations | Natural Gas Utility | ' |
Minimum future commitments for purchase obligations | ' |
Total Amounts Committed | 772.5 |
2014 | 91.7 |
2015 | 171.3 |
2016 | 161.8 |
2017 | 127 |
2018 | 76.2 |
Later Years | 144.5 |
Purchased power | Regulated operations | Electric Utility | ' |
Minimum future commitments for purchase obligations | ' |
Total Amounts Committed | 907.2 |
2014 | 42.1 |
2015 | 54.7 |
2016 | 42.9 |
2017 | 53.5 |
2018 | 56.5 |
Later Years | 657.5 |
Coal supply and transportation | Regulated operations | Electric Utility | ' |
Minimum future commitments for purchase obligations | ' |
Total Amounts Committed | 127.9 |
2014 | 26.1 |
2015 | 42.8 |
2016 | 18.5 |
2017 | 20.6 |
2018 | 19.9 |
Later Years | 0 |
Nonregulated electricity and natural gas supply | Nonutility and nonregulated operations | Integrys Energy Services | ' |
Minimum future commitments for purchase obligations | ' |
Total Amounts Committed | 613.7 |
2014 | 258.9 |
2015 | 265.4 |
2016 | 70.6 |
2017 | 15 |
2018 | 2.7 |
Later Years | 1.1 |
Purchase orders | 46.7 |
UPPCO | Regulated operations | Electric Utility | ' |
Minimum future commitments for purchase obligations | ' |
Purchase orders | 13.1 |
UPPCO | Purchased power | Regulated operations | Electric Utility | ' |
Minimum future commitments for purchase obligations | ' |
Total Amounts Committed | $14.30 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - ENVIRONMENTAL MATTERS (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 |
In Millions, unless otherwise specified | Manufactured gas plant remediation | WPS | WPS | WPS |
Natural Gas Utility | Weston and Pulliam plants | Columbia and Edgewater jointly-owned plants | Mercury emission | |
site | Electric Utility | Electric Utility | Electric Utility | |
MW | ||||
Air Permitting Violation Claims | ' | ' | ' | ' |
Beneficial environmental project amount | ' | $6 | $1.30 | ' |
Civil penalty and/or legal fees | ' | 1.2 | 0.4 | ' |
Mercury and Interstate Air Quality Rules | ' | ' | ' | ' |
Percentage mercury emission reduction required by the State of Wisconsin's mercury rule through 2014 | ' | ' | ' | 40.00% |
Level of electric generating units above which a 90% reduction in mercury emissions from fuel combusted is required by 2015 (in MW) | ' | ' | ' | 150 |
Percentage mercury emission reduction from fuel combusted 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 |
Expended environmental capital costs to achieve required emission reduction | ' | ' | ' | 3 |
Manufactured Gas Plant Remediation | ' | ' | ' | ' |
Number of environmental remediation sites | 53 | ' | ' | ' |
Number of environmental remediation sites transferred to the EPA Superfund Alternative Sites Program | 20 | ' | ' | ' |
Liabilities estimated and accrued for future undiscounted investigation and cleanup costs for all sites | 576.1 | ' | ' | ' |
Cash expenditures for environmental remediation not yet recovered in rates | 43.3 | ' | ' | ' |
Regulatory assets recorded for cash and estimated future remediation expenditures, net of insurance recoveries received | $619.40 | ' | ' | ' |
GUARANTEES_Details
GUARANTEES (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Guarantees | ' |
Total guarantees | $821.10 |
Guarantees expiring in less than 1 year | 522 |
Guarantees expiring within 1 to 3 years | 4.9 |
Guarantees with expiration over 3 years | 294.2 |
Integrys Energy Services | ' |
Guarantees | ' |
Total guarantees | 597.1 |
UPPCO | ' |
Guarantees | ' |
Total guarantees | 3.2 |
Guarantees supporting commodity transactions | ' |
Guarantees | ' |
Total guarantees | 705.3 |
Guarantees expiring in less than 1 year | 460.5 |
Guarantees expiring within 1 to 3 years | 4.6 |
Guarantees with expiration over 3 years | 240.2 |
Guarantees supporting commodity transactions | Integrys Energy Services | ' |
Guarantees | ' |
Total guarantees | 520.4 |
Guarantees supporting commodity transactions | IBS | ' |
Guarantees | ' |
Total guarantees | 5 |
Guarantees supporting commodity transactions | UPPCO | ' |
Guarantees | ' |
Total guarantees | 2 |
Guarantees supporting commodity transactions | MERC | ' |
Guarantees | ' |
Total guarantees | 120 |
Guarantees supporting commodity transactions | MGU | ' |
Guarantees | ' |
Total guarantees | 57.5 |
Guarantees supporting commodity transactions | ITF | ' |
Guarantees | ' |
Total guarantees | 0.4 |
Standby letters of credit | ' |
Guarantees | ' |
Total guarantees | 27.7 |
Guarantees expiring in less than 1 year | 27.3 |
Guarantees expiring within 1 to 3 years | 0.3 |
Guarantees with expiration over 3 years | 0.1 |
Standby letters of credit | Integrys Energy Services | ' |
Guarantees | ' |
Total guarantees | 26 |
Standby letters of credit | ITF, MERC, MGU, NSG, PGL, UPPCO, and WPS | ' |
Guarantees | ' |
Total guarantees | 1.7 |
Surety bonds | ' |
Guarantees | ' |
Total guarantees | 32.7 |
Guarantees expiring in less than 1 year | 32.7 |
Guarantees expiring within 1 to 3 years | 0 |
Guarantees with expiration over 3 years | 0 |
Other guarantees | ' |
Guarantees | ' |
Total guarantees | 55.4 |
Guarantees expiring in less than 1 year | 1.5 |
Guarantees expiring within 1 to 3 years | 0 |
Guarantees with expiration over 3 years | 53.9 |
Other guarantees | Integrys Energy Services | ' |
Guarantees | ' |
Total guarantees | 35 |
Other guarantees | Integrys Energy Services | Texas retail marketing business | ' |
Guarantees | ' |
Total guarantees | 10 |
Other guarantees | Integrys Energy Services | WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC | ' |
Guarantees | ' |
Total guarantees | 1.8 |
Other guarantees | ITF | ' |
Guarantees | ' |
Total guarantees | 2.4 |
Other indemnifications and workers compensation coverage | ' |
Guarantees | ' |
Total guarantees | $6.20 |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 31, 2014 |
In Millions, unless otherwise specified | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Other Postretirement Benefits | Other Postretirement Benefits | Other Postretirement Benefits | Other Postretirement Benefits | Subsequent Event | |
Components of net periodic benefit cost (including amounts capitalized to the balance sheets) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service cost | ' | $5.90 | $7.60 | $12.50 | $15.10 | $4.80 | $5.90 | $10.70 | $12.40 | ' |
Interest cost | ' | 19.3 | 17.8 | 39 | 35.6 | 5.2 | 6.1 | 12.3 | 12.4 | ' |
Expected return on plan assets | ' | -28.5 | -26.1 | -57.4 | -52.7 | -7.9 | -7.6 | -16.7 | -15.3 | ' |
Loss on plan settlement | ' | 0.9 | 0 | 0.9 | 0 | 0 | 0 | 0 | 0 | ' |
Amortization of prior service cost (credit) | ' | 0.1 | 1 | 0.3 | 2 | -2.8 | -0.6 | -4.1 | -1.2 | ' |
Amortization of net actuarial loss | ' | 8.6 | 14.8 | 17 | 28.3 | 0.8 | 2.2 | 1.5 | 4.2 | ' |
Net periodic benefit cost | ' | 6.3 | 15.1 | 12.3 | 28.3 | 0.1 | 6 | 3.7 | 12.5 | ' |
Contributions to the plans | ' | ' | ' | 69.4 | ' | ' | ' | 0.1 | ' | ' |
Expected contributions to the plans during the remainder of fiscal year | ' | ' | ' | 3.1 | ' | ' | ' | 10.9 | ' | ' |
Expected contributions to the plans during the remainder of the fiscal year from the Rabbi trust | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Rabbi trust funding related to potential change in control | 65 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rabbi trust funding in July 2014 related to potential change in control | ' | ' | ' | ' | ' | ' | ' | ' | ' | $64.80 |
STOCKBASED_COMPENSATION_STOCKB
STOCK-BASED COMPENSATION – STOCK-BASED COMPENSATION EXPENSE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Information related to share based awards | ' | ' | ' | ' |
Total stock-based compensation expense | $12.90 | $4.20 | $17 | $9.90 |
Deferred income tax benefit | 5.2 | 1.7 | 6.8 | 4 |
Stock-based compensation cost capitalized | 0 | 0 | 0 | 0 |
Omnibus Incentive Compensation Plan 2014 | ' | ' | ' | ' |
Information related to share based awards | ' | ' | ' | ' |
Number of shares authorized for grant | 3,000,000 | ' | 3,000,000 | ' |
Number of highest paid officers of entity or its subsidiary that cannot be granted awards in excess of a set amount | ' | ' | 3 | ' |
Stock options | ' | ' | ' | ' |
Information related to share based awards | ' | ' | ' | ' |
Total stock-based compensation expense | 0.5 | 0.5 | 0.8 | 0.9 |
Stock options | Omnibus Incentive Compensation Plan 2014 | ' | ' | ' | ' |
Information related to share based awards | ' | ' | ' | ' |
Number of shares authorized for grant to single employee who is entity's chief executive officer, chief financial officer, or other three highest compensated officers of entity or its subsidiaries | 1,000,000 | ' | 1,000,000 | ' |
Performance stock rights | ' | ' | ' | ' |
Information related to share based awards | ' | ' | ' | ' |
Total stock-based compensation expense | 9.2 | 1 | 9.7 | 3.2 |
Performance stock rights | Omnibus Incentive Compensation Plan 2014 | ' | ' | ' | ' |
Information related to share based awards | ' | ' | ' | ' |
Number of shares authorized for grant to single employee who is entity's chief executive officer, chief financial officer, or other three highest compensated officers of entity or its subsidiaries | 250,000 | ' | 250,000 | ' |
Restricted Share Units | ' | ' | ' | ' |
Information related to share based awards | ' | ' | ' | ' |
Total stock-based compensation expense | 3 | 2.5 | 6.1 | 5.3 |
Nonemployee director deferred stock units | ' | ' | ' | ' |
Information related to share based awards | ' | ' | ' | ' |
Total stock-based compensation expense | $0.20 | $0.20 | $0.40 | $0.50 |
STOCKBASED_COMPENSATION_STOCK_
STOCK-BASED COMPENSATION – STOCK OPTIONS (Details) (Stock options, USD $) | 6 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Stock options | ' | ' |
Weighted-average fair values along with the assumptions incorporated into the valuation model | ' | ' |
Period of historical volatility used to estimate expected volatility | '10 years | ' |
Expected term | '8 years | ' |
Risk-free interest rate, minimum (as a percent) | 0.12% | ' |
Risk-free interest rate, maximum (as a percent) | 2.88% | ' |
Expected dividend yield (as a percent) | 5.28% | ' |
Expected volatility (as a percent) | 18.00% | ' |
Weighted-average fair value per stock option (in dollars per share) | $6.70 | $6.03 |
Stock Options | ' | ' |
Outstanding, at the beginning of the period (in shares) | 1,550,374 | ' |
Granted (in shares) | 264,332 | ' |
Exercised (in shares) | -240,673 | ' |
Outstanding, at the end of the period (in shares) | 1,574,033 | ' |
Exercisable at the end of the period (in shares) | 884,858 | ' |
Weighted-Average Exercise Price Per Share | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $50.93 | ' |
Granted (in dollars per share) | $55.23 | ' |
Exercised (in dollars per share) | $49.32 | ' |
Outstanding at the end of the period (in dollars per share) | $51.90 | ' |
Exercisable at the end of the period (in dollars per share) | $49.82 | ' |
Weighted-Average Remaining Contractual Life (in Years) | ' | ' |
Outstanding at the end of the period | '6 years 7 months | ' |
Exercisable at the end of period | '5 years | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding at the end of the period (in dollars) | $30.30 | ' |
Exercisable at the end of the period (in dollars) | 18.9 | ' |
Options exercised (in dollars) | 4.1 | 6.9 |
Additional disclosures | ' | ' |
Tax benefit realized for the tax deductions from option exercises | 1.6 | 2.8 |
Compensation cost not yet recognized | $2 | ' |
Weighted-average period over which compensation cost is to be recognized | '1 year 11 months | ' |
STOCKBASED_COMPENSATION_PERFOR
STOCK-BASED COMPENSATION – PERFORMANCE STOCK RIGHTS (Details) (USD $) | 6 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Performance stock rights | ' | ' |
Assumptions incorporated into the valuation models | ' | ' |
Risk-free interest rate, minimum (as a percent) | 0.06% | ' |
Risk-free interest rate, maximum (as a percent) | 0.60% | ' |
Expected volatility, minimum (as a percent) | 17.00% | ' |
Expected volatility, maximum (as a percent) | 23.00% | ' |
Additional disclosures | ' | ' |
Shares distributed for performance stock rights | 0 | ' |
Total intrinsic value of shares distributed during the period | ' | $8.80 |
Tax benefit realized from the distribution of shares | ' | 3.6 |
Compensation cost not yet recognized | $7.60 | ' |
Weighted-average period over which compensation cost is to be recognized | '1 year 6 months | ' |
Performance stock rights | Minimum | ' | ' |
Assumptions incorporated into the valuation models | ' | ' |
Period of historical volatility used to estimate expected volatility | '1 year | ' |
Expected dividend yield (as a percent) | 5.28% | ' |
Performance stock rights | Maximum | ' | ' |
Assumptions incorporated into the valuation models | ' | ' |
Period of historical volatility used to estimate expected volatility | '3 years | ' |
Expected dividend yield (as a percent) | 5.33% | ' |
Performance Stock Rights Accounted For As Equity Awards | ' | ' |
Performance Stock Rights | ' | ' |
Outstanding at the beginning of the period (in shares) | 85,749 | ' |
Granted (in shares) | 21,146 | ' |
Adjustment for shares not distributed | -45,748 | ' |
Outstanding at the end of period (in shares) | 61,147 | ' |
Weighted-Average Fair Value | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $46.62 | ' |
Granted (in dollars per share) | $44.28 | $48.50 |
Adjustment for shares not distributed (in dollars per shares) | $43.29 | ' |
Outstanding at the end of the period (in dollars per share) | $48.31 | ' |
Performance Stock Rights Accounted For As Liability Awards | ' | ' |
Performance Stock Rights | ' | ' |
Outstanding at the beginning of the period (in shares) | 198,904 | ' |
Granted (in shares) | 84,529 | ' |
Adjustment for shares not distributed | -39,001 | ' |
Outstanding at the end of period (in shares) | 244,432 | ' |
Weighted-Average Fair Value | ' | ' |
Outstanding at the end of the period, fair value as of the reporting date (in dollars per share) | $85.98 | ' |
STOCKBASED_COMPENSATION_RESTRI
STOCK-BASED COMPENSATION – RESTRICTED SHARE UNITS (Details) (Restricted Share Units, USD $) | 6 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Restricted Share Units | ' | ' |
Restricted Share Unit Awards | ' | ' |
Outstanding at the beginning of the period (in shares) | 511,301 | ' |
Granted (in shares) | 214,953 | ' |
Dividend equivalents (in shares) | 12,023 | ' |
Vested and released (in shares) | -204,821 | ' |
Forfeited (in shares) | -3,212 | ' |
Outstanding at the end of period (in shares) | 530,244 | ' |
Weighted-Average Grant Date Fair Value | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $52.24 | ' |
Granted (in dollars per share) | $55.23 | $56.01 |
Dividend equivalents (in dollars per share) | $54.45 | ' |
Vested and released (in dollars per share) | $49.73 | ' |
Forfeited (in dollars per share) | $54.73 | ' |
Outstanding at the end of the period (in dollars per share) | $54.46 | ' |
Additional disclosures | ' | ' |
Total intrinsic value of restricted share units vested and released | $11.10 | $11.40 |
Tax benefit realized from the vesting and release of restricted share units | 4.5 | 4.6 |
Compensation cost not yet recognized | $16.10 | ' |
Weighted-average period over which compensation cost is to be recognized | '2 years 5 months | ' |
STOCKBASED_COMPENSATION_NONEMP
STOCK-BASED COMPENSATION - NONEMPLOYEE DIRECTOR DEFERRED STOCK UNITS (Details) (Nonemployee director deferred stock units) | 6 Months Ended |
Jun. 30, 2014 | |
Nonemployee director deferred stock units | ' |
Information related to share based awards | ' |
Vesting period | '1 year |
COMMON_EQUITY_CHANGES_TO_ISSUE
COMMON EQUITY - CHANGES TO ISSUED COMMON STOCK (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Roll forward of issued common stock | ' |
Common Stock, Shares Issued, Balance at Beginning of the Period | 79,919,176 |
Shares issued - Employee Stock Ownership Plan | 31,764 |
Shares issued - Stock Investment Plan | 12,151 |
Common Stock, Shares Issued, Balance at End of the Period | 79,963,091 |
COMMON_EQUITY_RECONCILIATION_O
COMMON EQUITY - RECONCILIATION OF SHARES ISSUED AND OUTSTANDING (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Reconciliation of Shares Issued and Outstanding | ' | ' |
Common stock issued (in shares) | 79,963,091 | 79,919,176 |
Deferred compensation rabbi trust (in shares) | 433,507 | 473,796 |
Total common shares outstanding | 79,529,584 | 79,445,380 |
Average cost of shares in the rabbi trust (in dollars per share) | $48.74 | $48.50 |
COMMON_EQUITY_EARNINGS_PER_SHA
COMMON EQUITY - EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income (loss) from continuing operations | $8.10 | ($3.90) | $161.30 | $178.30 |
Discontinued operations, net of tax | -0.1 | -0.8 | -0.2 | 5.3 |
Preferred stock dividends of subsidiary | -0.8 | -0.8 | -1.6 | -1.6 |
Noncontrolling interest in subsidiaries | 0 | 0.1 | 0.1 | 0.1 |
Net income (loss) attributed to common shareholders | $7.20 | ($5.40) | $159.60 | $182.10 |
Denominator: | ' | ' | ' | ' |
Average shares of common stock — basic | 80.2 | 79.4 | 80.2 | 79 |
Effect of dilutive securities | ' | ' | ' | ' |
Stock-based compensation (in shares) | 0.3 | 0 | 0.3 | 0.3 |
Deferred compensation (in shares) | 0 | 0 | 0 | 0.4 |
Average shares of common stock - diluted | 80.5 | 79.4 | 80.5 | 79.7 |
Earnings (loss) per common share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.09 | ($0.07) | $1.99 | $2.31 |
Diluted (in dollars per share) | $0.09 | ($0.07) | $1.98 | $2.29 |
Stock-based compensation | ' | ' | ' | ' |
Disclosure of antidilutive shares | ' | ' | ' | ' |
Weighted-average outstanding securities that had an anti-dilutive effect | 0 | 0 | 0.4 | 0.2 |
Deferred compensation | ' | ' | ' | ' |
Disclosure of antidilutive shares | ' | ' | ' | ' |
Weighted-average outstanding securities that had an anti-dilutive effect | 0.3 | 0 | 0.3 | 0 |
COMMON_EQUITY_DIVIDEND_RESTRIC
COMMON EQUITY - DIVIDEND RESTRICTIONS (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Dividend Payment Restrictions | ' | ' | ' | ' |
Total restricted net assets | $1,845.80 | ' | $1,845.80 | ' |
Equity in undistributed earnings of 50% or less owned investees accounted for by the equity method | $151.70 | ' | $151.70 | ' |
Dividends per common share declared (in dollars per share) | $0.68 | $0.68 | $1.36 | $1.36 |
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% | ' | 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 required to be maintained | ' | ' | 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_CAPITAL_TRANSACT
COMMON EQUITY - CAPITAL TRANSACTIONS WITH SUBSIDIARIES (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | $92.70 |
Return of capital to parent | 52.5 |
Equity contributions from parent | 108.6 |
WPS Investments, LLC | ' |
Capital Transactions with Subsidiaries | ' |
Ownership interest (as a percent) | 86.51% |
IBS | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 0 |
Return of capital to parent | 0 |
Equity contributions from parent | 25 |
ITF | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 0 |
Return of capital to parent | 0 |
Equity contributions from parent | 33.4 |
MERC | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 0 |
Return of capital to parent | 27 |
Equity contributions from parent | 0 |
MGU | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 0 |
Return of capital to parent | 13 |
Equity contributions from parent | 0 |
UPPCO | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 0 |
Return of capital to parent | 12.5 |
Equity contributions from parent | 0 |
UPPCO | WPS Investments, LLC | ' |
Capital Transactions with Subsidiaries | ' |
Ownership interest (as a percent) | 2.37% |
WPS | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 55.9 |
Return of capital to parent | 0 |
Equity contributions from parent | 40 |
WPS | WPS Investments, LLC | ' |
Capital Transactions with Subsidiaries | ' |
Ownership interest (as a percent) | 11.12% |
WPS Investments, LLC | ' |
Capital Transactions with Subsidiaries | ' |
Dividends to parent | 36.8 |
Return of capital to parent | 0 |
Equity contributions from parent | $10.20 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS - ROLLFORWARD (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in accumulated other comprehensive loss | ' | ' | ' | ' |
Accumulated other comprehensive loss, balance at beginning of period | ($23.60) | ($39.30) | ($23.20) | ($40.90) |
Other comprehensive income (loss) before reclassifications | 0 | 0.6 | -0.1 | 0.7 |
Amounts reclassified out of accumulated other comprehensive loss | 0.7 | 2.1 | 0.4 | 3.6 |
Other comprehensive income, net of tax | 0.7 | 2.7 | 0.3 | 4.3 |
Accumulated other comprehensive loss, balance at end of period | -22.9 | -36.6 | -22.9 | -36.6 |
Cash flow hedges | ' | ' | ' | ' |
Changes in accumulated other comprehensive loss | ' | ' | ' | ' |
Accumulated other comprehensive loss, balance at beginning of period | -3.7 | -4.2 | -3.1 | -5.2 |
Other comprehensive income (loss) before reclassifications | 0 | 0.6 | 0 | 0.7 |
Amounts reclassified out of accumulated other comprehensive loss | 0.2 | 1.5 | -0.4 | 2.4 |
Other comprehensive income, net of tax | 0.2 | 2.1 | -0.4 | 3.1 |
Accumulated other comprehensive loss, balance at end of period | -3.5 | -2.1 | -3.5 | -2.1 |
Defined benefit plans | ' | ' | ' | ' |
Changes in accumulated other comprehensive loss | ' | ' | ' | ' |
Accumulated other comprehensive loss, balance at beginning of period | -19.9 | -35.1 | -20.1 | -35.7 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | -0.1 | 0 |
Amounts reclassified out of accumulated other comprehensive loss | 0.5 | 0.6 | 0.8 | 1.2 |
Other comprehensive income, net of tax | 0.5 | 0.6 | 0.7 | 1.2 |
Accumulated other comprehensive loss, balance at end of period | ($19.40) | ($34.50) | ($19.40) | ($34.50) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE LOSS - RECLASSIFICATIONS (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Operating and maintenance expense | $334.30 | $288.70 | $698.90 | $583.80 |
Nonregulated revenues | -626.5 | -421.6 | -1,934.70 | -976 |
Interest expense | 38.7 | 28.6 | 77.8 | 57.9 |
Total before taxes | -16.3 | 7.2 | -259.3 | -284.6 |
Tax expense | -8.2 | 3.3 | -98 | -106.3 |
Net of tax | -8.1 | 3.9 | -161.3 | -178.3 |
Amount reclassified | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Net of tax | 0.7 | 2.1 | 0.4 | 3.6 |
Utility segments | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Interest expense | 25.3 | 20.4 | 50.4 | 42.2 |
Tax expense | -12.9 | -23.4 | -106.5 | -111.1 |
Net of tax | -21.1 | -39.6 | -165.8 | -172.1 |
Losses on cash flow hedges | Amount reclassified | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Total before taxes | 0.2 | 2.4 | 0.5 | 3.9 |
Tax expense | 0 | 0.9 | 0.9 | 1.5 |
Net of tax | 0.2 | 1.5 | -0.4 | 2.4 |
Losses on cash flow hedges | Commodity derivative contracts | Utility segments | Amount reclassified | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Operating and maintenance expense | 0 | 0 | 0 | 0.2 |
Losses on cash flow hedges | Commodity derivative contracts | Nonregulated segments | Amount reclassified | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Nonregulated revenues | 0 | 2.1 | 0 | 3.2 |
Losses on cash flow hedges | Interest rate hedges | Amount reclassified | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Interest expense | 0.2 | 0.3 | 0.5 | 0.5 |
Defined benefit plans | Amount reclassified | ' | ' | ' | ' |
Amount reclassified out of AOCI | ' | ' | ' | ' |
Amortization of prior service credits | 0 | 0 | -0.1 | -0.1 |
Amortization of net actuarial losses | 0.7 | 1 | 1.4 | 2.1 |
Total before taxes | 0.7 | 1 | 1.3 | 2 |
Tax expense | 0.2 | 0.4 | 0.5 | 0.8 |
Net of tax | $0.50 | $0.60 | $0.80 | $1.20 |
VARIABLE_INTEREST_ENTITIES_Det
VARIABLE INTEREST ENTITIES (Details) | 6 Months Ended |
Jun. 30, 2014 | |
MW | |
UPPCO | ' |
Variable interest entity | ' |
Obligations to purchase energy under power purchase agreement (in megawatts) | 0 |
Contracted capacity under a power purchase agreement (in megawatts) | 17.5 |
AMP Trillium LLC | Co-venturer | ' |
Variable interest entity | ' |
Variable interest entity ownership interest (as a percent) | 70.00% |
AMP Trillium LLC | ITF | ' |
Variable interest entity | ' |
Variable interest entity ownership interest (as a percent) | 30.00% |
EVO Trillium LLC | Co-venturer | ' |
Variable interest entity | ' |
Variable interest entity ownership interest (as a percent) | 85.00% |
EVO Trillium LLC | ITF | ' |
Variable interest entity | ' |
Variable interest entity ownership interest (as a percent) | 15.00% |
FAIR_VALUE_ASSETS_AND_LIABILIT
FAIR VALUE - ASSETS AND LIABILITIES MEASURED ON A RECURRING BASIS (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jul. 31, 2014 |
In Millions, unless otherwise specified | 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 | 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 | 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 | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Subsequent Event | ||
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total, Fair value | Total, Fair value | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Holding Company and Other | Holding Company and Other | Holding Company and Other | Holding Company and Other | Holding Company and Other | Holding Company and Other | Holding Company and Other | Holding Company and Other | Fair value measurements on a recurring basis | |||
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 | Coal contracts | Coal contracts | Coal contracts | Coal contracts | Coal contracts | Coal contracts | Coal contracts | Coal contracts | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total, Fair value | Total, Fair value | 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 | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total, Fair value | Total, Fair value | Integrys Energy Services | |||||||||||
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total, Fair value | Total, Fair value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total, Fair value | Total, Fair value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total, Fair value | Total, Fair value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total, Fair value | Total, Fair value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total, Fair value | Total, Fair value | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total, Fair value | Total, Fair value | Level 3 | |||||||||||||||||||||||||||
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk Management Assets | $342.90 | $315.50 | $120.60 | $83.90 | $164.30 | $177.80 | $58 | $53.80 | $342.90 | $315.50 | $1.10 | $2.40 | $9.10 | $7.70 | $0 | $0 | $10.20 | $10.10 | $0 | $0 | $0 | $0 | $5.90 | $2.10 | $5.90 | $2.10 | $0.30 | $0.10 | $0 | $0 | $0 | $0 | $0.30 | $0.10 | $0 | $0 | $0 | $0 | $2.70 | $0.20 | $2.70 | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | $20.60 | $16.30 | $29 | $35.20 | $29.90 | $35.60 | $79.50 | $87.10 | $98.60 | $65.10 | $126.20 | $134.90 | $19.50 | $15.90 | $244.30 | $215.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in Exchange-Traded Funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.8 | 15.9 | 0 | 0 | 0 | 0 | 16.8 | 15.9 | ' |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk Management Liabilities | 229 | 226.6 | 132.2 | 113.6 | 64.8 | 81.3 | 32 | 31.7 | 229 | 226.6 | 0.4 | 0.5 | 0.6 | 0.6 | 0 | 0 | 1 | 1.1 | 0 | 0 | 0 | 0 | 0.7 | 0.3 | 0.7 | 0.3 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 1.8 | 2.7 | 1.8 | 2.7 | ' | ' | ' | ' | ' | ' | ' | ' | 9.5 | 14.3 | 20.3 | 22 | 24.9 | 25.2 | 54.7 | 61.5 | 122.3 | 98.8 | 43.9 | 58.7 | 4.6 | 3.5 | 170.8 | 161 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration related to the acquisition of Compass | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 6.6 | 7.8 | 6.6 | 7.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement of contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.30 |
FAIR_VALUE_TRANSFERS_BETWEEN_L
FAIR VALUE - TRANSFERS BETWEEN LEVELS (Details) (Fair value measurements on a recurring basis, Integrys Energy Services, USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Natural gas contracts | ' | ' | ' | ' |
Transfers between the levels of the fair value hierarchy | ' | ' | ' | ' |
Transfers into Level 2 from Level 1 | $0 | $0 | $0 | $0 |
Transfers into Level 3 from Level 1 | 0 | 0 | 0 | 0 |
Transfers into Level 1 from Level 2 | 0.1 | 0 | 0.1 | 0 |
Transfers into Level 3 from Level 2 | 0.7 | 1.3 | 1.6 | 1.5 |
Transfers into Level 1 from Level 3 | 0 | 0 | 0 | 0 |
Transfers into Level 2 from Level 3 | 0.4 | 0 | 0.5 | 0 |
Electric contracts | ' | ' | ' | ' |
Transfers between the levels of the fair value hierarchy | ' | ' | ' | ' |
Transfers into Level 2 from Level 1 | 0 | 0 | 0 | 0 |
Transfers into Level 3 from Level 1 | 0 | 0 | 0 | 0 |
Transfers into Level 1 from Level 2 | 0.2 | 0 | 0.2 | 0 |
Transfers into Level 3 from Level 2 | 3.8 | 6.2 | 6.4 | 6.2 |
Transfers into Level 1 from Level 3 | 0 | 0 | 0 | 0 |
Transfers into Level 2 from Level 3 | $4.10 | ($0.10) | $8.50 | $5.40 |
FAIR_VALUE_SIGNIFICANT_UNOBSER
FAIR VALUE - SIGNIFICANT UNOBSERVABLE INPUTS (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jul. 31, 2014 |
In Millions, unless otherwise specified | 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 | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Subsequent Event | ||
Level 3 | Level 3 | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Integrys Energy Services | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | Utility segments | 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 | Integrys Energy Services | |||||
Valuation Technique: Market-based | Contingent consideration | Contingent consideration | Natural gas contracts | Natural gas contracts | Natural gas contracts | Natural gas contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | Electric contracts | FTRs | FTRs | FTRs | Coal contracts | Coal contracts | Coal contracts | Coal contracts | Natural gas contracts | Natural gas contracts | Level 3 | |||||||
Valuation Technique: Income-based | Valuation Technique: Income-based | Valuation Technique: Market-based | Valuation Technique: Market-based | Valuation Technique: Market-based | Valuation Technique: Market-based | Valuation Technique: Market-based | Valuation Technique: Market-based | Valuation Technique: Market-based | Valuation Technique: Market-based | |||||||||||||||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Weighted Average | Minimum | Maximum | ||||||||||||||||||||
Significant internally-developed unobservable inputs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk Management Assets | $342.90 | $315.50 | $58 | $53.80 | ' | ' | ' | ' | ' | $29.90 | $35.60 | ' | ' | $19.50 | $15.90 | ' | ' | ' | $5.90 | $2.10 | ' | $2.70 | $0.20 | ' | ' | $0 | $0 | ' |
Risk Management Liabilities | 229 | 226.6 | 32 | 31.7 | ' | ' | ' | ' | ' | 24.9 | 25.2 | ' | ' | 4.6 | 3.5 | ' | ' | ' | 0.7 | 0.3 | ' | 1.8 | 2.7 | ' | ' | 0 | 0 | ' |
Contingent consideration related to the acquisition of Compass | ' | ' | ' | ' | 6.6 | 7.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward market prices | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1.55 | 8.68 | ' | ' | ' | -3.55 | 12.13 | ' | ' | 222.54 | ' | ' | 12.49 | 15.9 | ' | ' | ' |
Probability of default (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.70% | 51.00% | ' | ' | 26.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option volatilities (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.80% | 163.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly curve shaping (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -65.20% | -14.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Growth rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | -34.30% | 48.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Counterparty default time period | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement of contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.30 |
FAIR_VALUE_LEVEL_3_RECONCILIAT
FAIR VALUE - LEVEL 3 RECONCILIATION (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
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 | $17.40 | $4.10 | $14.30 | ($4.90) |
Net realized and unrealized gains (losses) included in earnings | -0.8 | -10.7 | 6 | 3.2 |
Net unrealized gains (losses) recorded as regulatory assets or liabilities | 1 | 2.9 | 3.2 | 5.8 |
Purchases | 6.2 | 5.1 | 6.8 | 5.8 |
Sales | 0 | -0.1 | -0.7 | -0.1 |
Settlements | -4.4 | -3.2 | -9.2 | -6.4 |
Net transfers into Level 3 | 4.5 | 7.5 | 8 | 7.7 |
Net transfers out of Level 3 | -4.5 | 0.1 | -9 | -5.4 |
Balance at the end of the period | 19.4 | 5.7 | 19.4 | 5.7 |
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period | -0.8 | -10.8 | 5.6 | 2.8 |
Integrys Energy Services | 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 | -7.8 | 0 | -7.8 | 0 |
Net realized and unrealized gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Net unrealized gains (losses) recorded as regulatory assets or liabilities | 0 | 0 | 0 | 0 |
Purchases | 0 | -7.7 | 0 | -7.7 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 1.2 | 0 | 1.2 | 0 |
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 | -6.6 | -7.7 | -6.6 | -7.7 |
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period | 0 | 0 | 0 | 0 |
Integrys Energy Services | 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 | 5.5 | 1.7 | 10.4 | 3.9 |
Net realized and unrealized gains (losses) included in earnings | 0.2 | -1.4 | -6 | -2.9 |
Net unrealized gains (losses) recorded as regulatory assets or liabilities | 0 | 0 | 0 | 0 |
Purchases | 0 | 7 | 0 | 7 |
Sales | 0 | 0 | 0 | 0 |
Settlements | -1 | -0.9 | -0.5 | -1.8 |
Net transfers into Level 3 | 0.7 | 1.3 | 1.6 | 1.5 |
Net transfers out of Level 3 | -0.4 | 0 | -0.5 | 0 |
Balance at the end of the period | 5 | 7.7 | 5 | 7.7 |
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period | 0.2 | -1.4 | -6 | -2.9 |
Integrys Energy Services | Electric 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 | 18.7 | 6.1 | 12.4 | -4.3 |
Net realized and unrealized gains (losses) included in earnings | -1 | -9.4 | 11.6 | 5.7 |
Net unrealized gains (losses) recorded as regulatory assets or liabilities | 0 | 0 | 0 | 0 |
Purchases | 0.6 | 0.9 | 1.3 | 1.6 |
Sales | 0 | 0 | -0.7 | 0 |
Settlements | -3.1 | 0.2 | -7.6 | 0.3 |
Net transfers into Level 3 | 3.8 | 6.2 | 6.4 | 6.2 |
Net transfers out of Level 3 | -4.1 | 0.1 | -8.5 | -5.4 |
Balance at the end of the period | 14.9 | 4.1 | 14.9 | 4.1 |
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period | -1 | -9.4 | 11.6 | 5.7 |
Utility segments | ' | ' | ' | ' |
Changes in the fair value of items measured on a recurring basis and categorized as Level 3 measurements | ' | ' | ' | ' |
Impact on earnings of unrealized gains (losses) on level 3 instruments | 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 | 0.7 | 0.9 | 1.8 | 2 |
Net realized and unrealized gains (losses) included in earnings | 0 | 0.1 | 0.4 | 0.4 |
Net unrealized gains (losses) recorded as regulatory assets or liabilities | 0.2 | -0.7 | 0.2 | -0.9 |
Purchases | 5.6 | 4.9 | 5.5 | 4.9 |
Sales | 0 | -0.1 | 0 | -0.1 |
Settlements | -1.3 | -1.2 | -2.7 | -2.4 |
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 | 5.2 | 3.9 | 5.2 | 3.9 |
Net unrealized gains (losses) 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 | 0.3 | -4.6 | -2.5 | -6.5 |
Net realized and unrealized gains (losses) included in earnings | 0 | 0 | 0 | 0 |
Net unrealized gains (losses) recorded as regulatory assets or liabilities | 0.8 | 3.6 | 3 | 6.7 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | -0.2 | -1.3 | 0.4 | -2.5 |
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 | 0.9 | -2.3 | 0.9 | -2.3 |
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period | $0 | $0 | $0 | $0 |
FAIR_VALUE_FINANCIAL_INSTRUMEN
FAIR VALUE - FINANCIAL INSTRUMENTS NOT RECORDED AT FAIR VALUE (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying value and estimated fair value of financial instruments | ' | ' |
Long-term Debt | $2,956.20 | $3,056.20 |
Preferred stock | 51.1 | 51.1 |
Carrying Amount | ' | ' |
Carrying value and estimated fair value of financial instruments | ' | ' |
Long-term Debt | 2,956.20 | 3,056.20 |
Preferred stock | 51.1 | 51.1 |
Fair value | ' | ' |
Carrying value and estimated fair value of financial instruments | ' | ' |
Long-term Debt | 3,083.10 | 3,031.60 |
Preferred stock | $60.90 | $61.20 |
ADVERTISING_COSTS_Details
ADVERTISING COSTS (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Marketing and Advertising Expense [Abstract] | ' | ' | ' | ' | ' |
Capitalized direct-response advertising costs, net of accumulated amortization | $4.30 | ' | $4.30 | ' | $5.20 |
Amortization period of direct-response advertising costs | ' | ' | '2 years | ' | ' |
Amortization of direct-response advertising costs | 0.4 | 1 | 1.7 | 4 | ' |
Other advertising expense | $2.10 | $2.10 | $3.80 | $4.40 | ' |
REGULATORY_ENVIRONMENT_Details
REGULATORY ENVIRONMENT (Details) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Apr. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Apr. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Jul. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 |
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) | 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) | Minnesota Public Utilities Commission (MPUC) | Minnesota Public Utilities Commission (MPUC) | Minnesota Public Utilities Commission (MPUC) | Minnesota Public Utilities Commission (MPUC) | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |
2015 Rates | 2014 Rates | 2013 Rates | Retail electric rate case | Retail electric rate case | Retail electric rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | MGU | MGU | Retail electric rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Illinois Commerce Commission (ICC) | Illinois Commerce Commission (ICC) | Illinois Commerce Commission (ICC) | Illinois Commerce Commission (ICC) | |
WPS | WPS | WPS | 2015 Rates | 2014 Rates | 2013 Rates | 2015 Rates | 2014 Rates | 2013 Rates | 2014 Rates | 2014 Rates | 2015 Rates | 2015 Rates | 2013 Rates | 2013 Rates | 2013 Rates | 2013 Rates | 2014 Rates | 2014 Rates | 2014 Rates | 2014 Rates | 2014 Rates | 2011 Rates | 2015 Rates | 2015 Rates | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | Retail natural gas rate case | |||
WPS | WPS | WPS | WPS | WPS | WPS | UPPCO | MGU | PGL | NSG | PGL | PGL | NSG | NSG | MERC | MERC | MERC | MERC | MERC | MERC | PGL | NSG | 2015 Rates | 2015 Rates | 2015 Rates | 2015 Rates | ||||||
Minimum | Maximum | PGL | PGL | NSG | NSG | ||||||||||||||||||||||||||
Regulatory Environment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requested annual increase (decrease) in rates for customers | ' | ' | ' | $76.80 | ' | ' | ($1.60) | ' | ' | ' | ' | ' | ' | $128.90 | $7.10 | ' | ' | ' | ' | ' | ' | $14.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requested return on common equity percent reflected in rates of customers | 10.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.25% | 10.25% | ' | ' | ' | ' | 10.75% | ' | 10.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requested percent of capital structure composed of common equity | 50.51% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.31% | 50.41% | ' | ' | ' | ' | 50.31% | ' | 50.31% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approved annual increase (decrease) in rates for customers | ' | ' | ' | ' | -12.8 | 28.5 | ' | 4 | -3.4 | ' | ' | 5.8 | 4.5 | ' | ' | ' | 57.2 | ' | 6.6 | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' |
Approved return on common equity percent reflected in rates of customers | ' | 10.20% | 10.30% | ' | ' | ' | ' | ' | ' | ' | ' | 10.15% | 10.25% | ' | ' | ' | 9.28% | ' | 9.28% | ' | ' | ' | ' | ' | 9.70% | ' | ' | ' | ' | ' | ' |
Approved percent of capital structure composed of common equity | ' | 50.14% | 51.61% | ' | ' | ' | ' | ' | ' | ' | ' | 56.74% | 48.62% | ' | ' | ' | 50.43% | ' | 50.32% | ' | ' | ' | ' | ' | 50.48% | ' | ' | ' | ' | ' | ' |
Fuel refund | ' | ' | ' | ' | ' | 20.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferral related to pension and other employee benefits costs | ' | ' | ' | ' | ' | 7.3 | ' | ' | 2.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovery of income tax amounts previously expensed related to the Federal Health Care Reform Act | ' | ' | 5.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual cap for decoupling | ' | ' | ' | ' | ' | 14 | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reversal of disallowance of depreciation expense associated with the retirement of certain assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction to depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment to annual increase (decrease) in rates for customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.6 | ' | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interim annual rate increase (decrease) approved for customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interim rate of return on common equity approved for customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interim percent of capital structure composed of common equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.31% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recommended rate increase (decrease) in rates for customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | 5.7 | ' | 54.8 | -1 | ' | 97.1 | ' | 3.5 |
Recommended rate of return on common equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.15% | 9.15% | ' | 9.06% | ' | 9.06% |
Recommended percent of capital structure composed of common equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.31% | 50.41% | ' | ' | ' | ' |
Amended requested annual increase (decrease) in rates for customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.20 | ' | ' | ' | ' | ' | ' | ' | $102.30 | ' | $6.50 | ' |
Trial basis period for decoupling mechanism | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' |
Annual percent cap on decoupling based on distribution revenues approved in the rate case | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' |
SEGMENTS_OF_BUSINESS_Details
SEGMENTS OF BUSINESS (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
segment | |||||
Segment reporting information | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | 5 | ' |
Revenues | ' | $1,432.60 | $1,116 | $4,357.50 | $2,794.20 |
Goodwill impairment loss | 0 | 6.7 | 0 | 6.7 | 0 |
Merger transaction costs | ' | 5.9 | 0 | 5.9 | 0 |
Transaction costs related to pending sale of UPPCO | ' | 0.9 | 0 | 0.9 | 0 |
Transaction costs related to pending sale of IES retail energy business | ' | 0.8 | 0 | 0.8 | 0 |
Depreciation and amortization expense | ' | 72.9 | 65.5 | 144.2 | 126.4 |
Earnings from equity method investments | ' | 23.9 | 22.8 | 46.8 | 45.1 |
Miscellaneous income (expense) | ' | 5 | 5.5 | 11 | 11.2 |
Interest expense | ' | 38.7 | 28.6 | 77.8 | 57.9 |
Provision (benefit) for income taxes | ' | 8.2 | -3.3 | 98 | 106.3 |
Net income (loss) from continuing operations | ' | 8.1 | -3.9 | 161.3 | 178.3 |
Discontinued operations, net of tax | ' | -0.1 | -0.8 | -0.2 | 5.3 |
Preferred stock dividends of subsidiary | ' | -0.8 | -0.8 | -1.6 | -1.6 |
Noncontrolling interest in subsidiaries | ' | 0 | 0.1 | 0.1 | 0.1 |
Net income (loss) attributed to common shareholders | ' | 7.2 | -5.4 | 159.6 | 182.1 |
ATC | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Equity method investment, ownership interest (as a percent) | ' | 34.00% | ' | 34.00% | ' |
Earnings from equity method investments | ' | 23 | 22 | 45.5 | 43.7 |
Intersegment revenues | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 0 | 0 | 0 | 0 |
Natural Gas Utility | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Goodwill impairment loss | ' | ' | ' | 0 | ' |
Integrys Energy Services | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Goodwill impairment loss | ' | 6.7 | ' | 6.7 | ' |
Holding Company and Other | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Goodwill impairment loss | ' | ' | ' | 0 | ' |
Discontinued operations, net of tax | ' | ' | -0.1 | ' | 5.9 |
Reconciling Eliminations | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 0 | 0 | 0 | 0 |
Goodwill impairment loss | ' | 0 | ' | 0 | ' |
Merger transaction costs | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of UPPCO | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of IES retail energy business | ' | 0 | ' | 0 | ' |
Depreciation and amortization expense | ' | -0.2 | -0.2 | -0.3 | -0.3 |
Earnings from equity method investments | ' | 0 | 0 | 0 | 0 |
Miscellaneous income (expense) | ' | -3.2 | -3.4 | -6.7 | -7.1 |
Interest expense | ' | -3.2 | -3.4 | -6.7 | -7.1 |
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 (loss) attributed to common shareholders | ' | 0 | 0 | 0 | 0 |
Reconciling Eliminations | Intersegment revenues | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | -3.5 | -3.1 | -11 | -5.7 |
Regulated operations | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 806.1 | 694.4 | 2,422.80 | 1,818.20 |
Goodwill impairment loss | ' | 0 | ' | 0 | ' |
Merger transaction costs | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of UPPCO | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of IES retail energy business | ' | 0 | ' | 0 | ' |
Depreciation and amortization expense | ' | 63.2 | 58.1 | 125.2 | 111.8 |
Earnings from equity method investments | ' | 23 | 22 | 45.5 | 43.7 |
Miscellaneous income (expense) | ' | 2.4 | 2.4 | 6.2 | 4.2 |
Interest expense | ' | 25.3 | 20.4 | 50.4 | 42.2 |
Provision (benefit) for income taxes | ' | 12.9 | 23.4 | 106.5 | 111.1 |
Net income (loss) from continuing operations | ' | 21.1 | 39.6 | 165.8 | 172.1 |
Discontinued operations, net of tax | ' | 0 | 0 | 0 | 0 |
Preferred stock dividends of subsidiary | ' | -0.8 | -0.8 | -1.6 | -1.6 |
Noncontrolling interest in subsidiaries | ' | ' | 0 | 0 | 0 |
Net income (loss) attributed to common shareholders | ' | 20.3 | 38.8 | 164.2 | 170.5 |
Regulated operations | Intersegment revenues | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 2.8 | 2.5 | 7.3 | 4.4 |
Regulated operations | Natural Gas Utility | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 493.5 | 367.4 | 1,761 | 1,159.40 |
Goodwill impairment loss | ' | 0 | ' | 0 | ' |
Merger transaction costs | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of UPPCO | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of IES retail energy business | ' | 0 | ' | 0 | ' |
Depreciation and amortization expense | ' | 36.9 | 32.3 | 73.3 | 64.5 |
Earnings from equity method investments | ' | 0 | 0 | 0 | 0 |
Miscellaneous income (expense) | ' | -0.4 | 0.2 | -0.1 | 0.4 |
Interest expense | ' | 13.2 | 11.9 | 26.6 | 24.6 |
Provision (benefit) for income taxes | ' | -7.3 | -0.7 | 59.4 | 62.6 |
Net income (loss) from continuing operations | ' | -10.5 | 1.7 | 88.7 | 91.5 |
Discontinued operations, net of tax | ' | 0 | 0 | 0 | 0 |
Preferred stock dividends of subsidiary | ' | -0.1 | -0.2 | -0.2 | -0.3 |
Noncontrolling interest in subsidiaries | ' | ' | 0 | 0 | 0 |
Net income (loss) attributed to common shareholders | ' | -10.6 | 1.5 | 88.5 | 91.2 |
Regulated operations | Natural Gas Utility | Intersegment revenues | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 2.8 | 2.5 | 7.3 | 4.4 |
Regulated operations | Electric Utility | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 312.6 | 327 | 661.8 | 658.8 |
Goodwill impairment loss | ' | 0 | ' | 0 | ' |
Merger transaction costs | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of UPPCO | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of IES retail energy business | ' | 0 | ' | 0 | ' |
Depreciation and amortization expense | ' | 26.3 | 25.8 | 51.9 | 47.3 |
Earnings from equity method investments | ' | 0 | 0 | 0 | 0 |
Miscellaneous income (expense) | ' | 2.8 | 2.2 | 6.3 | 3.8 |
Interest expense | ' | 12.1 | 8.5 | 23.8 | 17.6 |
Provision (benefit) for income taxes | ' | 11 | 15.7 | 29.1 | 31.8 |
Net income (loss) from continuing operations | ' | 17.8 | 24.3 | 49.6 | 53.6 |
Discontinued operations, net of tax | ' | 0 | 0 | 0 | 0 |
Preferred stock dividends of subsidiary | ' | -0.7 | -0.6 | -1.4 | -1.3 |
Noncontrolling interest in subsidiaries | ' | ' | 0 | 0 | 0 |
Net income (loss) attributed to common shareholders | ' | 17.1 | 23.7 | 48.2 | 52.3 |
Regulated operations | Electric Utility | Intersegment revenues | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 0 | 0 | 0 | 0 |
Regulated operations | Electric Transmission Investment | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 0 | 0 | 0 | 0 |
Goodwill impairment loss | ' | 0 | ' | 0 | ' |
Merger transaction costs | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of UPPCO | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of IES retail energy business | ' | 0 | ' | 0 | ' |
Depreciation and amortization expense | ' | 0 | 0 | 0 | 0 |
Earnings from equity method investments | ' | 23 | 22 | 45.5 | 43.7 |
Miscellaneous income (expense) | ' | 0 | 0 | 0 | 0 |
Interest expense | ' | 0 | 0 | 0 | 0 |
Provision (benefit) for income taxes | ' | 9.2 | 8.4 | 18 | 16.7 |
Net income (loss) from continuing operations | ' | 13.8 | 13.6 | 27.5 | 27 |
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 (loss) attributed to common shareholders | ' | 13.8 | 13.6 | 27.5 | 27 |
Regulated operations | Electric Transmission Investment | Intersegment revenues | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 0 | 0 | 0 | 0 |
Nonutility and nonregulated operations | Integrys Energy Services | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 600 | 412.6 | 1,889.60 | 958 |
Goodwill impairment loss | ' | 6.7 | ' | 6.7 | ' |
Merger transaction costs | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of UPPCO | ' | 0 | ' | 0 | ' |
Transaction costs related to pending sale of IES retail energy business | ' | 0 | ' | 0 | ' |
Depreciation and amortization expense | ' | 3 | 2.8 | 5.9 | 5.5 |
Earnings from equity method investments | ' | 0.8 | 0.5 | 0.9 | 0.7 |
Miscellaneous income (expense) | ' | 0.4 | 1.4 | 0.7 | 1.8 |
Interest expense | ' | 0.5 | 0.5 | 1 | 1 |
Provision (benefit) for income taxes | ' | 2.4 | -22.2 | 8.3 | 5.1 |
Net income (loss) from continuing operations | ' | -1.5 | -41.1 | 9.4 | 10.2 |
Discontinued operations, net of tax | ' | -0.1 | -0.7 | -0.2 | -0.6 |
Preferred stock dividends of subsidiary | ' | 0 | 0 | 0 | 0 |
Noncontrolling interest in subsidiaries | ' | ' | 0 | 0 | 0 |
Net income (loss) attributed to common shareholders | ' | -1.6 | -41.8 | 9.2 | 9.6 |
Nonutility and nonregulated operations | Integrys Energy Services | Intersegment revenues | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 0.4 | 0.3 | 3 | 0.6 |
Nonutility and nonregulated operations | Holding Company and Other | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | 26.5 | 9 | 45.1 | 18 |
Goodwill impairment loss | ' | 0 | ' | 0 | ' |
Depreciation and amortization expense | ' | 6.9 | 4.8 | 13.4 | 9.4 |
Earnings from equity method investments | ' | 0.1 | 0.3 | 0.4 | 0.7 |
Miscellaneous income (expense) | ' | 5.4 | 5.1 | 10.8 | 12.3 |
Interest expense | ' | 16.1 | 11.1 | 33.1 | 21.8 |
Provision (benefit) for income taxes | ' | -7.1 | -4.5 | -16.8 | -9.9 |
Net income (loss) from continuing operations | ' | -11.5 | -2.4 | -13.9 | -4 |
Discontinued operations, net of tax | ' | 0 | -0.1 | 0 | 5.9 |
Preferred stock dividends of subsidiary | ' | 0 | 0 | 0 | 0 |
Noncontrolling interest in subsidiaries | ' | ' | 0.1 | 0.1 | 0.1 |
Net income (loss) attributed to common shareholders | ' | -11.5 | -2.4 | -13.8 | 2 |
Nonutility and nonregulated operations | Holding Company and Other | Intersegment revenues | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenues | ' | $0.30 | $0.30 | $0.70 | $0.70 |