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v3.23.2

CREDIT LOSSES (Tables) | 6 Months Ended
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Jun. 30, 2023
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 June 30, 2023 and December 31, 2022, by reportable segment.
(in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Non-Utility Energy Infrastructure |  | Corporate and Other |  | WEC Energy Group Consolidated
June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable and unbilled revenues |  | $ | 973.7 |  |  | $ | 402.8 |  |  | $ | 67.8 |  |  | $ | 1,444.3 |  |  | $ | 40.7 |  |  | $ | 8.8 |  |  | $ | 1,493.8 |
Allowance for credit losses |  | 76.4 |  |  | 97.0 |  |  | 5.3 |  |  | 178.7 |  |  | — |  |  | — |  |  | 178.7 |
Accounts receivable and unbilled revenues, net (1) |  | $ | 897.3 |  |  | $ | 305.8 |  |  | $ | 62.5 |  |  | $ | 1,265.6 |  |  | $ | 40.7 |  |  | $ | 8.8 |  |  | $ | 1,315.1 |
Total accounts receivable, net – past due greater than 90 days (1) |  | $ | 76.6 |  |  | $ | 78.8 |  |  | $ | 3.6 |  |  | $ | 159.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 159.0 |
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1) |  | 95.7 | % |  | 100.0 | % |  | — | % |  | 95.7 | % |  | — | % |  | — | % |  | 95.7 | %
(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 | %
(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 June 30, 2023, $767.6 million, or 58.4%, 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 roll-forward of the allowance for credit losses by reportable segment is included below:
Three Months Ended June 30, 2023 (in millions) |  | Wisconsin |  | Illinois |  | Other States |  | WEC Energy Group Consolidated
Balance at April 1, 2023 |  | $ | 90.9 |  |  | $ | 116.5 |  |  | $ | 6.4 |  |  | $ | 213.8 |
Provision for credit losses |  | 6.7 |  |  | 4.8 |  |  | (0.4) |  |  | 11.1 |
Provision for credit losses deferred for future recovery or refund |  | (3.9) |  |  | (8.5) |  |  | — |  |  | (12.4) |
Write-offs charged against the allowance |  | (29.1) |  |  | (21.3) |  |  | (1.1) |  |  | (51.5) |
Recoveries of amounts previously written off |  | 11.8 |  |  | 5.5 |  |  | 0.4 |  |  | 17.7 |
Balance at June 30, 2023 |  | $ | 76.4 |  |  | $ | 97.0 |  |  | $ | 5.3 |  |  | $ | 178.7 |
Six Months Ended June 30, 2023 (in millions) |  | Wisconsin |  | Illinois |  | Other States |  | WEC Energy Group Consolidated
Balance at January 1, 2023 |  | $ | 82.0 |  |  | $ | 111.0 |  |  | $ | 6.3 |  |  | $ | 199.3 |
Provision for credit losses |  | 17.9 |  |  | 13.3 |  |  | 0.9 |  |  | 32.1 |
Provision for credit losses deferred for future recovery or refund |  | 16.5 |  |  | 6.7 |  |  | — |  |  | 23.2 |
Write-offs charged against the allowance |  | (58.0) |  |  | (44.3) |  |  | (2.7) |  |  | (105.0) |
Recoveries of amounts previously written off |  | 18.0 |  |  | 10.3 |  |  | 0.8 |  |  | 29.1 |
Balance at June 30, 2023 |  | $ | 76.4 |  |  | $ | 97.0 |  |  | $ | 5.3 |  |  | $ | 178.7 |
On a consolidated basis, there was a $20.6 million decrease in the allowance for credit losses at June 30, 2023, compared to January 1, 2023, driven by customer write-offs related to the winter moratorium months ending. After a customer is disconnected for a period of time without payment on their account, we will write off that customer balance. 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. Also contributing to the decrease in the allowance for credit losses, we believe that the lower energy costs that customers were seeing, which were driven by lower natural gas prices, contributed to a reduction in past due accounts receivable balances and a related decrease in the allowance for credit losses.
Three Months Ended June 30, 2022 (in millions) |  | Wisconsin |  | Illinois |  | Other States |  | WEC Energy Group Consolidated
Balance at April 1, 2022 |  | $ | 85.7 |  |  | $ | 107.0 |  |  | $ | 7.9 |  |  | $ | 200.6 |
Provision for credit losses |  | 11.8 |  |  | 7.1 |  |  | (0.1) |  |  | 18.8 |
Provision for credit losses deferred for future recovery or refund |  | (5.4) |  |  | (11.2) |  |  | — |  |  | (16.6) |
Write-offs charged against the allowance |  | (22.1) |  |  | (17.9) |  |  | (1.2) |  |  | (41.2) |
Recoveries of amounts previously written off |  | 8.0 |  |  | 6.0 |  |  | 0.2 |  |  | 14.2 |
Balance at June 30, 2022 |  | $ | 78.0 |  |  | $ | 91.0 |  |  | $ | 6.8 |  |  | $ | 175.8 |
Six Months Ended June 30, 2022 (in millions) |  | Wisconsin |  | Illinois |  | Other States |  | WEC Energy Group Consolidated
Balance at January 1, 2022 |  | $ | 84.0 |  |  | $ | 105.5 |  |  | $ | 8.8 |  |  | $ | 198.3 |
Provision for credit losses |  | 23.6 |  |  | 18.4 |  |  | 0.1 |  |  | 42.1 |
Provision for credit losses deferred for future recovery or refund |  | 3.4 |  |  | 0.9 |  |  | — |  |  | 4.3 |
Write-offs charged against the allowance |  | (50.9) |  |  | (45.2) |  |  | (2.6) |  |  | (98.7) |
Recoveries of amounts previously written off |  | 17.9 |  |  | 11.4 |  |  | 0.5 |  |  | 29.8 |
Balance at June 30, 2022 |  | $ | 78.0 |  |  | $ | 91.0 |  |  | $ | 6.8 |  |  | $ | 175.8 |
On a consolidated basis, there was a $22.5 million decrease in the allowance for credit losses at June 30, 2022, compared to January 1, 2022. The decrease was driven by customer write-offs related to collection practices returning to pre-pandemic levels in 2021, including the restoration of our ability to disconnect customers. Partially offsetting the decrease in the allowance for credit losses, we believe that the high energy costs that customers were seeing, which were driven by high natural gas prices, contributed to higher past due accounts receivable balances and a related increase in the allowance for credit losses.

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- Definition Tabular disclosure of allowance for credit loss on accounts receivable. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479319/326-20-50-13 + Details
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- 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 -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1 + Details
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