XML 47 R35.htm IDEA: XBRL DOCUMENT
v3.21.2

CREDIT LOSSES (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2021
Credit Loss [Abstract] |
Schedule of gross receivables and related allowances for credit losses | We have included tables below that show our gross third-party receivable balances and the related allowance for credit losses at September 30, 2021 and December 31, 2020, by reportable segment.
(in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Non-Utility Energy Infrastructure |  | Corporate and Other |  | WEC Energy Group Consolidated
September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable and unbilled revenues |  | $ | 927.9 |  |  | $ | 316.6 |  |  | $ | 45.2 |  |  | $ | 1,289.7 |  |  | $ | 9.4 |  |  | $ | 4.4 |  |  | $ | 1,303.5 |
Allowance for credit losses |  | 76.4 |  |  | 114.7 |  |  | 8.6 |  |  | 199.7 |  |  | — |  |  | — |  |  | 199.7 |
Accounts receivable and unbilled revenues, net (1) |  | $ | 851.5 |  |  | $ | 201.9 |  |  | $ | 36.6 |  |  | $ | 1,090.0 |  |  | $ | 9.4 |  |  | $ | 4.4 |  |  | $ | 1,103.8 |
Total accounts receivable, net – past due greater than 90 days (1) |  | $ | 51.9 |  |  | $ | 26.4 |  |  | $ | 8.9 |  |  | $ | 87.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 87.2 |
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1) |  | 96.5 | % |  | 100.0 | % |  | — | % |  | 87.7 | % |  | — | % |  | — | % |  | 87.7 | %
(in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Non-Utility Energy Infrastructure |  | Corporate and Other |  | WEC Energy Group Consolidated
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable and unbilled revenues |  | $ | 899.8 |  |  | $ | 393.9 |  |  | $ | 79.8 |  |  | $ | 1,373.5 |  |  | $ | 45.0 |  |  | $ | 4.4 |  |  | $ | 1,422.9 |
Allowance for credit losses |  | 102.1 |  |  | 111.6 |  |  | 6.4 |  |  | 220.1 |  |  | — |  |  | — |  |  | 220.1 |
Accounts receivable and unbilled revenues, net (1) |  | $ | 797.7 |  |  | $ | 282.3 |  |  | $ | 73.4 |  |  | $ | 1,153.4 |  |  | $ | 45.0 |  |  | $ | 4.4 |  |  | $ | 1,202.8 |
Total accounts receivable, net – past due greater than 90 days (1) |  | $ | 84.8 |  |  | $ | 34.5 |  |  | $ | 3.5 |  |  | $ | 122.8 |  |  | $ | — |  |  | $ | — |  |  | $ | 122.8 |
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1) |  | 97.6 | % |  | 100.0 | % |  | — | % |  | 95.5 | % |  | — | % |  | — | % |  | 95.5 | %
(1)Our exposure to credit losses for certain regulated utility customers is mitigated by regulatory mechanisms we have in place. Specifically, rates related to all of the customers in our Illinois segment, as well as the residential rates of WE, WPS, and WG in our Wisconsin segment, include riders or other mechanisms for cost recovery or refund of uncollectible expense based on the difference between the actual provision for credit losses and the amounts recovered in rates. As a result, at September 30, 2021, $527.5 million, or 47.8%, of our net accounts receivable and unbilled revenues balance had regulatory protections in place to mitigate the exposure to credit losses. In addition, we have received specific orders related to the deferral of certain costs (including credit losses) incurred as a result of the COVID-19 pandemic. The additional protections related to our accounts receivable and unbilled revenue balances provided by these orders are subject to prudency reviews and are still being assessed. They are not reflected in the percentages in the above table or this note. See Note 22, Regulatory Environment, for more information on these orders.
Rollforward of the allowances for credit losses by reportable segment | A rollforward of the allowance for credit losses by reportable segment for the three and nine months ended September 30, 2021 and 2020 is included below:
Three Months Ended September 30, 2021 (in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Corporate and Other |  | WEC Energy Group Consolidated
Balance at June 30, 2021 |  | $ | 114.4 |  |  | $ | 109.0 |  |  | $ | 8.3 |  |  | $ | 231.7 |  |  | $ | — |  |  | $ | 231.7 |
Provision for credit losses |  | 10.7 |  |  | 4.4 |  |  | 0.8 |  |  | 15.9 |  |  | — |  |  | 15.9 |
Provision for credit losses deferred for future recovery or refund |  | (38.2) |  |  | 26.5 |  |  | — |  |  | (11.7) |  |  | — |  |  | (11.7) |
Write-offs charged against the allowance |  | (16.2) |  |  | (29.9) |  |  | (0.7) |  |  | (46.8) |  |  | — |  |  | (46.8) |
Recoveries of amounts previously written off |  | 5.7 |  |  | 4.7 |  |  | 0.2 |  |  | 10.6 |  |  | — |  |  | 10.6 |
Balance at September 30, 2021 |  | $ | 76.4 |  |  | $ | 114.7 |  |  | $ | 8.6 |  |  | $ | 199.7 |  |  | $ | — |  |  | $ | 199.7 |
Nine Months Ended September 30, 2021 (in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Corporate and Other |  | WEC Energy Group Consolidated
Balance at December 31, 2020 |  | $ | 102.1 |  |  | $ | 111.6 |  |  | $ | 6.4 |  |  | $ | 220.1 |  |  | $ | — |  |  | $ | 220.1 |
Provision for credit losses |  | 33.8 |  |  | 16.7 |  |  | 3.1 |  |  | 53.6 |  |  | — |  |  | 53.6 |
Provision for credit losses deferred for future recovery or refund |  | (28.1) |  |  | 10.7 |  |  | — |  |  | (17.4) |  |  | — |  |  | (17.4) |
Write-offs charged against the allowance |  | (51.2) |  |  | (36.7) |  |  | (1.8) |  |  | (89.7) |  |  | — |  |  | (89.7) |
Recoveries of amounts previously written off |  | 19.8 |  |  | 12.4 |  |  | 0.9 |  |  | 33.1 |  |  | — |  |  | 33.1 |
Balance at September 30, 2021 |  | $ | 76.4 |  |  | $ | 114.7 |  |  | $ | 8.6 |  |  | $ | 199.7 |  |  | $ | — |  |  | $ | 199.7 |
In total, the allowance for credit losses decreased over both the three and nine month periods ended September 30, 2021. The allowance for credit losses related to our Wisconsin segment decreased, as normal collection practices began in April 2021 for our Wisconsin Utilities, earlier than in our other service territories. Normal collection practices in our Illinois and Other States segments didn't begin until June 30, 2021 and August 2, 2021, respectively. As a result, we continued to see an increase in the allowance for credit losses in these service territories through September 30, 2021, but expect that the allowance for credit losses will decrease as we continue to ramp up our collection efforts. See Note 22, Regulatory Environment, for more information on the impact that the COVID-19 pandemic has had on our allowed collection practices.
Three Months Ended September 30, 2020 (in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Corporate and Other |  | WEC Energy Group Consolidated
Balance at June 30, 2020 |  | $ | 77.9 |  |  | $ | 82.7 |  |  | $ | 4.0 |  |  | $ | 164.6 |  |  | $ | 0.1 |  |  | $ | 164.7 |
Provision for credit losses |  | 14.8 |  |  | 6.3 |  |  | 1.0 |  |  | 22.1 |  |  | 0.1 |  |  | 22.2 |
Provision for credit losses deferred for future recovery or refund |  | 2.5 |  |  | (3.2) |  |  | — |  |  | (0.7) |  |  | — |  |  | (0.7) |
Write-offs charged against the allowance |  | (14.5) |  |  | (10.0) |  |  | (0.9) |  |  | (25.4) |  |  | — |  |  | (25.4) |
Recoveries of amounts previously written off |  | 7.8 |  |  | 4.4 |  |  | 0.3 |  |  | 12.5 |  |  | — |  |  | 12.5 |
Balance at September 30, 2020 |  | $ | 88.5 |  |  | $ | 80.2 |  |  | $ | 4.4 |  |  | $ | 173.1 |  |  | $ | 0.2 |  |  | $ | 173.3 |
Nine Months Ended September 30, 2020 (in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Corporate and Other |  | WEC Energy Group Consolidated
Balance at December 31, 2019 |  | $ | 59.9 |  |  | $ | 75.9 |  |  | $ | 4.1 |  |  | $ | 139.9 |  |  | $ | 0.1 |  |  | $ | 140.0 |
Provision for credit losses |  | 40.8 |  |  | 28.3 |  |  | 2.1 |  |  | 71.2 |  |  | 0.1 |  |  | 71.3 |
Provision for credit losses deferred for future recovery or refund |  | 11.6 |  |  | 22.4 |  |  | — |  |  | 34.0 |  |  | — |  |  | 34.0 |
Write-offs charged against the allowance |  | (52.2) |  |  | (59.5) |  |  | (2.9) |  |  | (114.6) |  |  | — |  |  | (114.6) |
Recoveries of amounts previously written off |  | 28.4 |  |  | 13.1 |  |  | 1.1 |  |  | 42.6 |  |  | — |  |  | 42.6 |
Balance at September 30, 2020 |  | $ | 88.5 |  |  | $ | 80.2 |  |  | $ | 4.4 |  |  | $ | 173.1 |  |  | $ | 0.2 |  |  | $ | 173.3 |
The increase in the allowance for credit losses at our Wisconsin and Illinois reportable segments was driven by an increase in past due accounts receivable balances from December 31, 2019 to September 30, 2020. This is a trend we generally see over the winter moratorium months, when we are not allowed to disconnect customer service as a result of non-payment. In Wisconsin, the winter moratorium begins on November 1 and ends on April 15, and in Illinois the winter moratorium begins on December 1 and ends on March 31. However, as a result of the COVID-19 pandemic and related regulatory orders we received, we were also unable to disconnect any of our Wisconsin and Illinois customers during the second and third quarters of 2020.

X
- Definition Tabular disclosure of allowance for credit loss on accounts receivable. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919249-210447 + Details
Name: | us-gaap_AccountsReceivableAllowanceForCreditLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_CreditLossAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682 + Details
Name: | us-gaap_ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration