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Credit Losses (Tables) | 12 Months Ended
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Dec. 31, 2022
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 December 31, 2022 and 2021, by reportable segment.
(in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Non-Utility Energy Infrastructure |  | Corporate and Other |  | WEC Energy Group Consolidated
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable and unbilled revenues |  | $ | 1,199.4 |  |  | $ | 624.2 |  |  | $ | 164.4 |  |  | $ | 1,988.0 |  |  | $ | 25.4 |  |  | $ | 4.3 |  |  | $ | 2,017.7 |
Allowance for credit losses |  | 82.0 |  |  | 111.0 |  |  | 6.3 |  |  | 199.3 |  |  | — |  |  | — |  |  | 199.3 |
Accounts receivable and unbilled revenues, net (1) |  | $ | 1,117.4 |  |  | $ | 513.2 |  |  | $ | 158.1 |  |  | $ | 1,788.7 |  |  | $ | 25.4 |  |  | $ | 4.3 |  |  | $ | 1,818.4 |
Total accounts receivable, net – past due greater than 90 days (1) |  | $ | 51.9 |  |  | $ | 52.9 |  |  | $ | 1.9 |  |  | $ | 106.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 106.7 |
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1) |  | 97.0 | % |  | 100.0 | % |  | — | % |  | 96.8 | % |  | — | % |  | — | % |  | 96.8 | %
(in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Non-Utility Energy Infrastructure |  | Corporate and Other |  | WEC Energy Group Consolidated
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable and unbilled revenues |  | $ | 1,053.1 |  |  | $ | 523.1 |  |  | $ | 105.7 |  |  | $ | 1,681.9 |  |  | $ | 17.0 |  |  | $ | 5.1 |  |  | $ | 1,704.0 |
Allowance for credit losses |  | 84.0 |  |  | 105.5 |  |  | 8.8 |  |  | 198.3 |  |  | — |  |  | — |  |  | 198.3 |
Accounts receivable and unbilled revenues, net (1) |  | $ | 969.1 |  |  | $ | 417.6 |  |  | $ | 96.9 |  |  | $ | 1,483.6 |  |  | $ | 17.0 |  |  | $ | 5.1 |  |  | $ | 1,505.7 |
Total accounts receivable, net – past due greater than 90 days (1) |  | $ | 46.5 |  |  | $ | 36.6 |  |  | $ | 3.4 |  |  | $ | 86.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 86.5 |
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1) |  | 97.6 | % |  | 100.0 | % |  | — | % |  | 94.8 | % |  | — | % |  | — | % |  | 94.8 | %
(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 December 31, 2022, $1,079.1 million, or 59.3%, of our net accounts receivable and unbilled revenues balance had regulatory protections in place to mitigate the exposure to credit losses.
Rollforward of the allowances for credit losses by reportable segment | A rollforward of the allowance for credit losses by reportable segment for the years ended December 31, 2022, 2021, and 2020, is included below:
(in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Corporate and Other |  | WEC Energy Group Consolidated
Balance at January 1, 2022 |  | $ | 84.0 |  |  | $ | 105.5 |  |  | $ | 8.8 |  |  | $ | 198.3 |  |  | $ | — |  |  | $ | 198.3 |
Provision for credit losses |  | 50.5 |  |  | 33.0 |  |  | 2.6 |  |  | 86.1 |  |  | — |  |  | 86.1 |
Provision for credit losses deferred for future recovery or refund |  | 29.7 |  |  | 33.2 |  |  | — |  |  | 62.9 |  |  | — |  |  | 62.9 |
Write-offs charged against the allowance |  | (117.0) |  |  | (82.6) |  |  | (6.4) |  |  | (206.0) |  |  | — |  |  | (206.0) |
Recoveries of amounts previously written off |  | 34.8 |  |  | 21.9 |  |  | 1.3 |  |  | 58.0 |  |  | — |  |  | 58.0 |
Balance at December 31, 2022 |  | $ | 82.0 |  |  | $ | 111.0 |  |  | $ | 6.3 |  |  | $ | 199.3 |  |  | $ | — |  |  | $ | 199.3 |
On a consolidated basis, there was a $1.0 million increase in the allowance for credit losses during the year ended December 31, 2022. We believe that the high energy costs that customers are seeing, which have been driven by high natural gas prices, contributed to higher past due accounts receivable balances and a related increase in the allowance for credit losses. The increase was substantially offset by customer write-offs related to collection practices returning to pre-pandemic levels, including the restoration of our ability to disconnect customers. After a customer is disconnected for a period of time without payment on their account, we will write off that customer balance.
(in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Corporate and Other |  | WEC Energy Group Consolidated
Balance at January 1, 2021 |  | $ | 102.1 |  |  | $ | 111.6 |  |  | $ | 6.4 |  |  | $ | 220.1 |  |  | $ | — |  |  | $ | 220.1 |
Provision for credit losses |  | 46.4 |  |  | 25.6 |  |  | 3.7 |  |  | 75.7 |  |  | — |  |  | 75.7 |
Provision for credit losses deferred for future recovery or refund |  | (16.6) |  |  | 3.5 |  |  | — |  |  | (13.1) |  |  | — |  |  | (13.1) |
Write-offs charged against the allowance |  | (74.8) |  |  | (52.5) |  |  | (2.5) |  |  | (129.8) |  |  | — |  |  | (129.8) |
Recoveries of amounts previously written off |  | 26.9 |  |  | 17.3 |  |  | 1.2 |  |  | 45.4 |  |  | — |  |  | 45.4 |
Balance at December 31, 2021 |  | $ | 84.0 |  |  | $ | 105.5 |  |  | $ | 8.8 |  |  | $ | 198.3 |  |  | $ | — |  |  | $ | 198.3 |
The allowance for credit losses decreased during the year ended December 31, 2021, primarily related to normal collection practices resuming in April 2021 for our Wisconsin utilities and in June 2021 for our Illinois utilities. Across all of our reportable segments, higher year-over-year natural gas prices drove an increase in gross accounts receivable balances, partially offsetting the decrease in the allowance for credit losses attributed to collection efforts.
(in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Corporate and Other |  | WEC Energy Group Consolidated
Balance at January 1, 2020 |  | $ | 59.9 |  |  | $ | 75.9 |  |  | $ | 4.1 |  |  | $ | 139.9 |  |  | $ | 0.1 |  |  | $ | 140.0 |
Provision for credit losses |  | 47.5 |  |  | 51.1 |  |  | 4.3 |  |  | 102.9 |  |  | — |  |  | 102.9 |
Provision for credit losses deferred for future recovery or refund |  | 24.6 |  |  | 30.6 |  |  | — |  |  | 55.2 |  |  | — |  |  | 55.2 |
Write-offs charged against the allowance |  | (65.9) |  |  | (63.0) |  |  | (3.4) |  |  | (132.3) |  |  | — |  |  | (132.3) |
Recoveries of amounts previously written off |  | 36.0 |  |  | 17.0 |  |  | 1.4 |  |  | 54.4 |  |  | — |  |  | 54.4 |
Sale of PDL residential solar facilities |  | — |  |  | — |  |  | — |  |  | — |  |  | (0.1) |  |  | (0.1) |
Balance at December 31, 2020 |  | $ | 102.1 |  |  | $ | 111.6 |  |  | $ | 6.4 |  |  | $ | 220.1 |  |  | $ | — |  |  | $ | 220.1 |
The allowance for credit losses increased during the year ended December 31, 2020, driven by higher past due accounts receivable balances at our utility segments, primarily related to residential customers. This increase in accounts receivable balances in arrears was driven by economic disruptions caused by the COVID-19 pandemic, including higher unemployment rates. Also, as a result of the COVID-19 pandemic and related regulatory orders we received, we were unable to disconnect any of our Wisconsin and Illinois customers during the year ended December 31, 2020.

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