OPERATING REVENUES

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

For more information about our operating revenues, see Note 1(d), Operating Revenues, in our 2019 Annual Report on Form 10-K.

Disaggregation of Operating Revenues

The following tables present our operating revenues disaggregated by revenue source. We do not have any revenues associated with our electric transmission segment, which includes investments accounted for using the equity method. We disaggregate revenues into categories that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors. For our segments, revenues are further disaggregated by electric and natural gas operations and then by customer class. Each customer class within our electric and natural gas operations have different expectations of service, energy and demand requirements, and can be impacted differently by regulatory activities within their jurisdictions.



(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Three Months Ended March 31, 2020
Electric	$	1,034.6	$	—	$	—	$	1,034.6	$	—	$	—	$	—		$	1,034.6
Natural gas	458.9		433.6		139.8		1,032.3		14.5		—		(14.1		)	1,032.7
Total regulated revenues	1,493.5		433.6		139.8		2,066.9		14.5		—		(14.1		)	2,067.3
Other non-utility revenues	—		—		4.4		4.4		16.4		0.4		(1.6		)	19.6
Total revenues from contracts with customers	1,493.5		433.6		144.2		2,071.3		30.9		0.4		(15.7		)	2,086.9
Other operating revenues	5.4		14.0		2.2		21.6		98.7		0.1		(98.7		)	21.7
Total operating revenues	$	1,498.9	$	447.6	$	146.4	$	2,092.9	$	129.6	$	0.5	$	(114.4	)	$	2,108.6



(in millions)	Wisconsin		Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Three Months Ended March 31, 2019
Electric	$	1,061.8	$	—		$	—		$	1,061.8		$	—	$	—	$	—		$	1,061.8
Natural gas	564.9		544.6			185.2			1,294.7			16.4		—		(14.7		)	1,296.4
Total regulated revenues	1,626.7		544.6			185.2			2,356.5			16.4		—		(14.7		)	2,358.2
Other non-utility revenues	—		0.1			4.1			4.2			13.3		1.5		(0.7		)	18.3
Total revenues from contracts with customers	1,626.7		544.7			189.3			2,360.7			29.7		1.5		(15.4		)	2,376.5
Other operating revenues	6.7		(8.2		)	(4.1		)	(5.6		)	98.1		0.2		(91.8		)	0.9
Total operating revenues	$	1,633.4	$	536.5		$	185.2		$	2,355.1		$	127.8	$	1.7	$	(107.2	)	$	2,377.4

Revenues from Contracts with Customers

Electric Utility Operating Revenues

The following table disaggregates electric utility operating revenues into customer class:



	Electric Utility Operating Revenues
	Three Months Ended March 31
(in millions)	2020		2019
Residential	$	404.9	$	406.7
Small commercial and industrial	323.6		333.9
Large commercial and industrial	194.6		212.3
Other	7.3		7.8
Total retail revenues	930.4		960.7
Wholesale	42.1		47.7
Resale	45.2		40.8
Steam	8.4		10.1
Other utility revenues	8.5		2.5
Total electric utility operating revenues	$	1,034.6	$	1,061.8

Natural Gas Utility Operating Revenues

The following tables disaggregate natural gas utility operating revenues into customer class:



(in millions)	Wisconsin			Illinois			Other States			Total Natural Gas Utility Operating Revenues
Three Months Ended March 31, 2020
Residential	$	313.1		$	282.9		$	95.3		$	691.3
Commercial and industrial	151.3			91.4			51.7			294.4
Total retail revenues	464.4			374.3			147.0			985.7
Transport	24.1			72.7			10.5			107.3
Other utility revenues *	(29.6		)	(13.4		)	(17.7		)	(60.7		)
Total natural gas utility operating revenues	$	458.9		$	433.6		$	139.8		$	1,032.3



(in millions)	Wisconsin			Illinois			Other States			Total Natural Gas Utility Operating Revenues
Three Months Ended March 31, 2019
Residential	$	383.9		$	354.0		$	125.2		$	863.1
Commercial and industrial	199.7			116.2			72.0			387.9
Total retail revenues	583.6			470.2			197.2			1,251.0
Transport	21.9			87.2			11.1			120.2
Other utility revenues *	(40.6		)	(12.8		)	(23.1		)	(76.5		)
Total natural gas utility operating revenues	$	564.9		$	544.6		$	185.2		$	1,294.7


*	Includes amounts refunded to customers for purchased gas adjustment costs.

Other Natural Gas Operating Revenues

We have other natural gas operating revenues from Bluewater, which is in our non-utility energy infrastructure segment. Bluewater has entered into long-term service agreements for natural gas storage services with WE, WPS, and WG, and provides service to several unaffiliated customers. All amounts associated with services from affiliates have been eliminated at the consolidated level.

Other Non-Utility Operating Revenues

Other non-utility operating revenues consist primarily of the following:



	Three Months Ended March 31
(in millions)	2020		2019
Wind generation revenues	$	9.3	$	6.2
We Power revenues *	5.5		6.4
Appliance service revenues	4.4		4.1
Distributed renewable solar project revenues	0.4		1.5
Other	—		0.1
Total other non-utility operating revenues	$	19.6	$	18.3

As part of the construction of the We Power electric generating units, we capitalized interest during construction, which is included in property, plant, and equipment. As allowed by the PSCW, we collected these carrying costs from WE's utility customers during construction. The equity portion of these carrying costs was recorded as deferred revenue, and we continually amortize the deferred carrying costs to revenues over the life of the related lease term that We Power has with WE. During the three months ended March 31, 2020 and 2019, we recorded $5.5 million and $6.4 million, respectively, of revenues related to these deferred carrying costs, which were included in the contract liability balance at the beginning of the period. This contract liability is presented as deferred revenue, net on our balance sheets.

Other Operating Revenues

Other operating revenues consist primarily of the following:



	Three Months Ended March 31
(in millions)	2020		2019
Late payment charges	$	12.1	$	13.2
Alternative revenues *	8.5		(19.7		)
Other	1.1		7.4
Total other operating revenues	$	21.7	$	0.9

Negative amounts can result from alternative revenues being reversed to revenues from contracts with customers as the customer is billed for these alternative revenues. Negative amounts can also result from revenues to be refunded to customers subject to decoupling mechanisms, wholesale true-ups, and conservation improvement rider true-ups, as discussed in Note 1(d), Operating Revenues, in our 2019 Annual Report on Form 10-K.