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Long-Term Debt | 12 Months Ended
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Dec. 31, 2021
Debt Disclosure [Abstract] |
LONG-TERM DEBT | LONG-TERM DEBT The following table is a summary of our long-term debt outstanding (excluding finance leases) as of December 31:
|  | 2021 |  | 2020
(in millions) |  | Maturity Date |  | Weighted Average Interest Rate |  | Balance |  | Weighted Average Interest Rate |  | Balance
WEC Energy Group Senior Notes (unsecured) (1) |  | 2023-2033 |  | 1.67 | % |  | $ | 3,070.0 |  |  | 2.03 | % |  | $ | 2,270.0 |
WEC Energy Group Junior Notes (unsecured) (1) (2) |  | 2067 |  | 2.27 | % |  | 500.0 |  |  | 3.65 | % |  | 500.0 |
WE Debentures (unsecured) |  | 2024-2095 |  | 4.13 | % |  | 2,785.0 |  |  | 4.26 | % |  | 2,785.0 |
WEPCo Environmental Trust (secured, nonrecourse) (6) (9) |  | 2022-2035 |  | 1.58 | % |  | 114.7 |  |  | N/A |  | — |
WPS Senior Notes (unsecured) |  | 2028-2051 |  | 3.89 | % |  | 1,675.0 |  |  | 4.04 | % |  | 1,625.0 |
WG Debentures (unsecured) |  | 2024-2046 |  | 3.35 | % |  | 790.0 |  |  | 3.65 | % |  | 640.0 |
Integrys Junior Notes (unsecured) (3) |  | 2073 |  | 6.00 | % |  | 221.4 |  |  | 6.00 | % |  | 400.0 |
PGL First and Refunding Mortgage Bonds (secured) (4) |  | 2024-2047 |  | 3.31 | % |  | 1,870.0 |  |  | 3.45 | % |  | 1,670.0 |
NSG First Mortgage Bonds (secured) (5) |  | 2027-2043 |  | 3.56 | % |  | 157.0 |  |  | 3.81 | % |  | 132.0 |
MERC Senior Notes (unsecured) |  | 2025-2047 |  | 3.04 | % |  | 210.0 |  |  | 3.27 | % |  | 170.0 |
MGU Senior Notes (unsecured) |  | 2025-2047 |  | 3.18 | % |  | 150.0 |  |  | 3.18 | % |  | 150.0 |
UMERC Senior Notes (unsecured) |  | 2029 |  | 3.26 | % |  | 160.0 |  |  | 3.26 | % |  | 160.0 |
Bluewater Gas Storage Senior Notes (unsecured) (6) |  | 2022-2047 |  | 3.76 | % |  | 115.2 |  |  | 3.76 | % |  | 117.8 |
ATC Holding Senior Notes (unsecured) |  | 2025-2030 |  | 4.05 | % |  | 475.0 |  |  | 4.05 | % |  | 475.0 |
We Power Subsidiaries Notes (secured, nonrecourse) (6) (7) |  | 2022-2041 |  | 5.60 | % |  | 934.7 |  |  | 5.59 | % |  | 970.8 |
WECC Notes (unsecured) |  | 2028 |  | 6.94 | % |  | 50.0 |  |  | 6.94 | % |  | 50.0 |
WECI Wind Holding I Senior Notes (secured, nonrecourse) (6) (8) |  | 2022-2032 |  | 2.75 | % |  | 374.6 |  |  | 2.75 | % |  | 413.6 |
Total |  |  |  |  |  | 13,652.6 |  |  |  |  | 12,529.2 |
Integrys acquisition fair value adjustment |  |  |  |  |  | 2.9 |  |  |  |  | 8.4 |
Jayhawk acquisition |  |  |  |  |  | 7.3 |  |  |  |  | — |
Unamortized debt issuance costs |  |  |  |  |  | (77.7) |  |  |  |  | (65.2) |
Unamortized discount, net and other |  |  |  |  |  | (21.7) |  |  |  |  | (21.9) |
Total long-term debt, including current portion (10) |  |  |  |  |  | 13,563.4 |  |  |  |  | 12,450.5 |
Current portion of long-term debt |  |  |  |  |  | (91.0) |  |  |  |  | (777.7) |
Total long-term debt |  |  |  |  |  | $ | 13,472.4 |  |  |  |  | $ | 11,672.8 |
(1) In connection with our outstanding 2007 Junior Notes, we executed an RCC, which we amended on June 29, 2015, for the benefit of persons that buy, hold, or sell a specified series of our long-term indebtedness (covered debt). Our 6.20% Senior Notes due April 1, 2033 have been designated as the covered debt under the RCC. The RCC provides that we may not redeem, defease, or purchase, and that our subsidiaries may not purchase, any 2007 Junior Notes on or before May 15, 2037, unless, subject to certain limitations described in the RCC, we have received a specified amount of proceeds from the sale of qualifying securities. (2) Variable interest rate reset quarterly. The rates were 2.27% and 2.33% as of December 31, 2021 and 2020, respectively. On July 12, 2018, we executed two interest rate swaps that provided a fixed rate of 4.9765% on $250.0 million of the outstanding notes. On November 15, 2021, the interest rate swaps expired. At December 31, 2020, the effective rate of 3.65% was blended rates of the variable and fixed portions. See Note 18, Derivative Instruments, for more information on the two interest rate swaps. (3) The terms of Integrys's 2013 Junior Notes provide that, effective August 2023, they will bear interest at the three-month LIBOR plus 322 basis points and will reset quarterly. (4) PGL's First Mortgage Bonds are subject to the terms and conditions of PGL's First Mortgage Indenture dated January 2, 1926, as supplemented. Under the terms of the Indenture, substantially all property owned by PGL is pledged as collateral for these outstanding debt securities. PGL has used certain First Mortgage Bonds to secure tax exempt interest rates. The Illinois Finance Authority has issued Tax Exempt Bonds, and the proceeds from the sale of these bonds were loaned to PGL. In return, PGL issued $100 million of collateralized First Mortgage Bonds. (5) NSG's First Mortgage Bonds are subject to the terms and conditions of NSG's First Mortgage Indenture dated April 1, 1955, as supplemented. Under the terms of the Indenture, substantially all property owned by NSG is pledged as collateral for these outstanding debt securities. (6) The long-term debt of Bluewater, WECI Wind Holding I, WEPCo Environmental Trust, and We Power's subsidiaries requires periodic principal payments. (7) We Power's subsidiaries' senior notes are secured by a collateral assignment of the leases between We Power's subsidiaries and WE related to PWGS and ERGS, as applicable. (8) WECI Wind Holding I's Senior Notes are secured by a first priority security interest in the ownership interest of its subsidiaries as well as a pledge of equity in WECI Wind Holding I. (9) WEPCo Environmental Trust’s ETBs are secured by a pledge of and lien on environmental control property, which includes the right to impose, collect and receive a non-bypassable environmental control charge paid by all of WE's retail electric distribution customers, the right to obtain true-up adjustments of the environmental control charges, and all revenues or other proceeds arising from those rights and interests. See Note 23, Variable Interest Entities, for more information. (10) The amount of long-term debt on our balance sheets includes finance lease obligations of $129.7 million and $63.4 million at December 31, 2021 and 2020, respectively. We amortize debt premiums, discounts, and debt issuance costs over the life of the debt and we include the costs in interest expense. WEC Energy Group, Inc. In March 2021, we issued $600.0 million of 0.80% Senior Notes due March 15, 2024, and used the net proceeds to repay the $340.0 million 364-day term loan entered into in March 2020 and for general corporate purposes. In December 2021, we issued $500.0 million of 2.20% Senior Notes due December 15, 2028, and used the net proceeds to repay short-term debt and for other general corporate purposes. In December 2021, we redeemed $300.0 million of the $420.0 million outstanding of our 3.55% Senior Notes due June 15, 2025 with the proceeds we received from the issuance of $500 million of 2.20% Senior Notes due December 15, 2028. As a result of the redemption prior to maturity, we recognized a $23.1 million loss on early extinguishment of debt. The loss is comprised of the make-whole premium associated with the early redemption and the write-off of the related unamortized debt discount and debt issuance costs as of the redemption date. Wisconsin Electric Power Company In June 2021, WE issued $300.0 million of 1.70% Debentures due June 15, 2028, and used the net proceeds to redeem early all $300.0 million outstanding of its 2.95% Debentures due September 15, 2021 at par. WEPCo Environmental Trust Finance I, LLC In May 2021, WEPCo Environmental Trust, a special purpose entity formed by WE, issued $118.8 million of 1.578% ETBs due December 15, 2035, and used the net proceeds to purchase environmental control property from WE. Semiannual principal and interest payments began December 15, 2021, and the ETBs are expected to be fully repaid by December 15, 2033. The ETBs have a final maturity date of December 15, 2035. See Note 23, Variable Interest Entities, for more information on WEPCo Environmental Trust. Wisconsin Public Service Corporation In November 2021, WPS issued $450.0 million of 2.85% Senior Notes due December 1, 2051, and intends to allocate an amount equal to the net proceeds for the construction and development of eligible green expenditures, which include existing and new expenditures for the acquisition, construction and development of wind and solar electric generating facilities and related energy storage assets. In November 2021, WPS's $400.0 million 3.35% Senior Notes due November 21, 2021, matured, and the outstanding principal was paid with proceeds received from the issuance of the $450.0 million 2.85% Senior Notes Due December 1, 2051, pending their allocation to the payment or reimbursement of eligible green expenditures. Wisconsin Gas LLC In November 2021, WG issued $150.0 million of 2.07% Debentures due December 1, 2028, and used the net proceeds to repay short-term debt and for other general corporate purposes. Integrys Holding, Inc. In October 2021, pursuant to a tender offer, Integrys purchased $178.6 million aggregate principal amount of the $400.0 million outstanding of its 2013 Junior Notes for $196.4 million (which includes payment of accrued interest) with proceeds received from WEC Energy Group issuing commercial paper. Integrys recorded a $13.2 million loss related to the early settlement. The Peoples Gas Light and Coke Company In November 2021, PGL issued $200.0 million of 2.20% Bonds, Series LLL due November 15, 2028, and used the net proceeds for general corporate purposes, including capital expenditures and the refinancing of short-term debt. North Shore Gas Company In November 2021, NSG issued $25.0 million of 2.20% Bonds, Series S due November 15, 2028, and used the net proceeds for general corporate purposes, including capital expenditures and the refinancing of short-term debt. Minnesota Energy Resources Corporation In November 2021, MERC issued $40.0 million of 2.07% Senior Notes due December 1, 2028, and used the net proceeds to repay intercompany short-term debt to its parent, Integrys, and for other general corporate purposes. Maturities of Long-Term Debt Outstanding The following table shows the long-term debt securities (excluding finance leases) maturing within one year of December 31, 2021:
(in millions) |  | Interest Rate |  | Maturity Date (1) |  | Principal Amount
WEPCo Environmental Trust (secured, nonrecourse) |  | 1.58% |  | Semi-annually |  | $ | 8.8 |
Bluewater Gas Storage Senior Notes (unsecured) |  | 3.76% |  | Semi-annually |  | 2.7 |
We Power Subsidiaries Notes – PWGS (secured, nonrecourse) |  | 4.91% |  | Monthly |  | 7.2 |
We Power Subsidiaries Notes – ERGS (secured, nonrecourse) |  | 5.209% |  | Semi-annually |  | 13.9 |
We Power Subsidiaries Notes – ERGS (secured, nonrecourse) |  | 4.673% |  | Semi-annually |  | 10.7 |
We Power Subsidiaries Notes – PWGS (secured, nonrecourse) |  | 6.00% |  | Monthly |  | 6.2 |
WECI Wind Holding I Senior Notes (secured, nonrecourse) |  | 2.75% |  | Semi-annually |  | 41.5 |
Total |  |  |  |  |  | $ | 91.0 |
(1) Maturity dates listed as semi-annually and monthly are associated with debt that requires periodic principal payments. The following table shows the future maturities of our long-term debt outstanding (excluding obligations under finance leases) as of December 31, 2021:
(in millions) |  | Payments
2022 |  | $ | 91.0 |
2023 |  | 793.8 |
2024 |  | 1,222.7 |
2025 |  | 865.9 |
2026 |  | 104.2 |
Thereafter |  | 10,575.0 |
Total |  | $ | 13,652.6 |
Certain long-term debt obligations contain financial and other covenants related to payment of principal and interest when due, maintaining certain total funded debt to capitalization ratios, and various other obligations. Failure to comply with these covenants could result in an event of default, which could result in the acceleration of outstanding debt obligations.

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