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Acquisitions | 12 Months Ended
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Dec. 31, 2018
Business Combinations [Abstract] |
ACQUISITIONS | ACQUISITIONS On January 1, 2018, we adopted ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01). The amendments in this update clarify the definition of a business and provide guidance on evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 also clarifies that transaction costs are capitalized in an asset acquisition but expensed in a business combination. Acquisition of a Wind Generation Facility in South Dakota In December 2018, we acquired an 80% ownership interest in Coyote Ridge, a 97.5 MW wind generating facility under construction in Brookings County, South Dakota, for $61.4 million, which includes transaction costs. This wind generating facility is expected to be in service by the end of 2019. The project has a 12-year offtake agreement with an unaffiliated third party for all of the energy produced. Under the Tax Legislation, our investment in Coyote Ridge is expected to qualify for production tax credits and 100% bonus depreciation. We are entitled to 99% of the tax benefits related to this facility. Coyote Ridge is included in the non-utility energy infrastructure segment. The table below shows the allocation of the purchase price to the assets acquired at the date of the acquisition.
(in millions) |  |
Net property, plant, and equipment |  | $ | 66.4 |
Noncontrolling interest |  | (5.0 | )
Total purchase price |  | $ | 61.4 |
Acquisition of a Wind Generation Facility in Illinois In August 2018, we completed the acquisition of an 80% membership interest in a commercially operational 132 MW wind generating facility located in Henry County, Illinois, known as Bishop Hill III, for $144.7 million, which includes transaction costs and is net of restricted cash acquired of $4.5 million. In December 2018, we completed the acquisition of an additional 10% membership interest in Bishop Hill III, for $18.2 million. Bishop Hill III has a 22-year offtake agreement with an unaffiliated company for the sale of all energy produced by the facility. Under the Tax Legislation, our investment in Bishop Hill III qualifies for production tax credits and 100% bonus depreciation. Bishop Hill III is included in the non-utility energy infrastructure segment. The table below shows the allocation of the purchase price to the assets acquired and liabilities assumed at the date of the acquisition.
(in millions) |  |
Current assets |  | $ | 1.4 |
Net property, plant, and equipment |  | 190.2 |
Other long-term assets * |  | 4.5 |
Current liabilities |  | (1.6 | )
Long-term liabilities |  | (8.3 | )
Noncontrolling interest |  | (18.8 | )
Total purchase price |  | $ | 167.4 |
* | Represents restricted cash.
Acquisition of a Wind Generation Facility in Wisconsin In April 2018, WPS, along with two unaffiliated utilities, completed the purchase of Forward Wind Energy Center, which consists of 86 wind turbines located in Wisconsin with a total capacity of 138 MW. The aggregate purchase price was $172.9 million of which WPS’s proportionate share was 44.6%, or $77.1 million. In addition, we incurred transaction costs that are recorded to a regulatory asset. Since 2008 and up until the acquisition, WPS purchased 44.6% of the facility’s energy output under a power purchase agreement. The table below shows the allocation of the purchase price to the assets acquired at the date of the acquisition, which are included in rate base.
(in millions) |  |
Current assets |  | $ | 0.2 |
Net property, plant, and equipment |  | 76.9 |
Total purchase price |  | $ | 77.1 |
Under a joint ownership agreement with the two other utilities, WPS is entitled to its share of generating capability and output of the facility equal to its ownership interest. WPS is also paying its ownership share of additional capital expenditures and operating expenses. Forward Wind Energy Center is included in the Wisconsin segment. Acquisition of Natural Gas Storage Facilities in Michigan In June 2017, we completed the acquisition of Bluewater for $226.0 million. Bluewater owns natural gas storage facilities in Michigan that provide approximately one-third of the current storage needs for our Wisconsin natural gas utilities. In addition, we incurred $4.9 million of acquisition related costs that are recorded as a regulatory asset. The table below shows the allocation of the purchase price to the assets acquired and liabilities assumed at the date of the acquisition. The excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed was recognized as goodwill. Bluewater is included in the non-utility energy infrastructure segment.
(in millions) |  |
Current assets |  | $ | 2.0 |
Net property, plant, and equipment |  | 217.6 |
Goodwill |  | 7.3 |
Current liabilities |  | (0.9 | )
Total purchase price |  | $ | 226.0 |
Acquisition of a Wind Generation Facility in Nebraska In January 2019, we completed the acquisition of an 80% membership interest in Upstream, a commercially operational 202.5 MW wind generating facility, for $276.0 million. Upstream is located in Antelope County, Nebraska and supplies energy to the Southwest Power Pool. Upstream's revenue will be substantially fixed over a 10-year period through an agreement with an unaffiliated third party. Under the Tax Legislation, our investment in Upstream qualifies for production tax credits and 100% bonus depreciation. Upstream is included in the non-utility energy infrastructure segment.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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