XML 26 R14.htm IDEA: XBRL DOCUMENT
v3.24.3

CREDIT LOSSES | 9 Months Ended
--- | ---
Sep. 30, 2024
Credit Loss [Abstract] |
CREDIT LOSSES | CREDIT LOSSES Our exposure to credit losses is related to our accounts receivable and unbilled revenue balances, which are primarily generated from the sale of electricity and natural gas by our regulated utility operations. Credit losses associated with our utility operations are analyzed at the reportable segment level as we believe contract terms, political and economic risks, and the regulatory environment are similar at this level as our reportable segments are generally based on the geographic location of the underlying utility operations. We have an accounts receivable and unbilled revenue balance associated with our non-utility energy infrastructure segment related to the sale of electricity from our majority-owned renewable generating facilities through agreements with several large high credit quality counterparties. We evaluate the collectability of our accounts receivable and unbilled revenue balances considering a combination of factors. For some of our larger customers and also in circumstances where we become aware of a specific customer's inability to meet its financial obligations to us, we record a specific allowance for credit losses against amounts due in order to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers, we use the accounts receivable aging method to calculate an allowance for credit losses. Using this method, we classify accounts receivable into different aging buckets and calculate a reserve percentage for each aging bucket based upon historical loss rates. The calculated reserve percentages are updated on at least an annual basis, in order to ensure recent macroeconomic, political, and regulatory trends are captured in the calculation, to the extent possible. Risks identified that we do not believe are reflected in the calculated reserve percentages, are assessed on a quarterly basis to determine whether further adjustments are required. We monitor our ongoing credit exposure through active review of counterparty accounts receivable balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution and payment confirmation. To the extent possible, we work with customers with past due balances to negotiate payment plans, but will disconnect customers for non-payment as allowed by our regulators, if necessary, and employ collection agencies and legal counsel to pursue recovery of defaulted receivables. For our larger customers, detailed credit review procedures may be performed in advance of any sales being made. We sometimes require letters of credit, parental guarantees, prepayments or other forms of credit assurance from our larger customers to mitigate credit risk. We have included tables below that show our gross third-party receivable balances and the related allowance for credit losses at September 30, 2024 and December 31, 2023, 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, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable and unbilled revenues |  | $ | 937.8 |  |  | $ | 326.8 |  |  | $ | 32.9 |  |  | $ | 1,297.5 |  |  | $ | 26.7 |  |  | $ | 6.3 |  |  | $ | 1,330.5 |
Allowance for credit losses |  | 63.9 |  |  | 86.9 |  |  | 4.2 |  |  | 155.0 |  |  | — |  |  | — |  |  | 155.0 |
Accounts receivable and unbilled revenues, net (1) |  | $ | 873.9 |  |  | $ | 239.9 |  |  | $ | 28.7 |  |  | $ | 1,142.5 |  |  | $ | 26.7 |  |  | $ | 6.3 |  |  | $ | 1,175.5 |
Total accounts receivable, net – past due greater than 90 days (1) |  | $ | 52.5 |  |  | $ | 50.2 |  |  | $ | 4.0 |  |  | $ | 106.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 106.7 |
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1) |  | 93.6 | % |  | 100.0 | % |  | — | % |  | 93.1 | % |  | — | % |  | — | % |  | 93.1 | %
(in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Total Utility Operations |  | Non-Utility Energy Infrastructure |  | Corporate and Other |  | WEC Energy Group Consolidated
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable and unbilled revenues |  | $ | 1,078.0 |  |  | $ | 481.5 |  |  | $ | 94.9 |  |  | $ | 1,654.4 |  |  | $ | 33.9 |  |  | $ | 8.4 |  |  | $ | 1,696.7 |
Allowance for credit losses |  | 77.4 |  |  | 109.7 |  |  | 6.4 |  |  | 193.5 |  |  | — |  |  | — |  |  | 193.5 |
Accounts receivable and unbilled revenues, net (1) |  | $ | 1,000.6 |  |  | $ | 371.8 |  |  | $ | 88.5 |  |  | $ | 1,460.9 |  |  | $ | 33.9 |  |  | $ | 8.4 |  |  | $ | 1,503.2 |
Total accounts receivable, net – past due greater than 90 days (1) |  | $ | 51.7 |  |  | $ | 45.0 |  |  | $ | 2.1 |  |  | $ | 98.8 |  |  | $ | — |  |  | $ | — |  |  | $ | 98.8 |
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1) |  | 93.6 | % |  | 100.0 | % |  | — | % |  | 94.5 | % |  | — | % |  | — | % |  | 94.5 | %
(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, 2024, $670.1 million, or 57.0%, of our net accounts receivable and unbilled revenues balance had regulatory protections in place to mitigate the exposure to credit losses. A roll-forward of the allowance for credit losses by reportable segment is included below:
Three Months Ended September 30, 2024 (in millions) |  | Wisconsin |  | Illinois |  | Other States |  | WEC Energy Group Consolidated
Balance at July 1, 2024 |  | $ | 68.7 |  |  | $ | 93.2 |  |  | $ | 5.0 |  |  | $ | 166.9 |
Provision for credit losses |  | 12.6 |  |  | 11.5 |  |  | (0.3) |  |  | 23.8 |
Provision for credit losses deferred for future recovery or refund |  | 3.8 |  |  | (11.0) |  |  | — |  |  | (7.2) |
Write-offs charged against the allowance |  | (30.8) |  |  | (12.9) |  |  | (2.5) |  |  | (46.2) |
Recoveries of amounts previously written off |  | 9.6 |  |  | 6.1 |  |  | 2.0 |  |  | 17.7 |
Balance at September 30, 2024 |  | $ | 63.9 |  |  | $ | 86.9 |  |  | $ | 4.2 |  |  | $ | 155.0 |
Nine Months Ended September 30, 2024 (in millions) |  | Wisconsin |  | Illinois |  | Other States |  | WEC Energy Group Consolidated
Balance at January 1, 2024 |  | $ | 77.4 |  |  | $ | 109.7 |  |  | $ | 6.4 |  |  | $ | 193.5 |
Provision for credit losses |  | 36.2 |  |  | 38.8 |  |  | (1.6) |  |  | 73.4 |
Provision for credit losses deferred for future recovery or refund |  | 20.9 |  |  | (17.2) |  |  | — |  |  | 3.7 |
Write-offs charged against the allowance |  | (102.3) |  |  | (63.2) |  |  | (4.9) |  |  | (170.4) |
Recoveries of amounts previously written off |  | 31.7 |  |  | 18.8 |  |  | 4.3 |  |  | 54.8 |
Balance at September 30, 2024 |  | $ | 63.9 |  |  | $ | 86.9 |  |  | $ | 4.2 |  |  | $ | 155.0 |
On a consolidated basis, there was a $38.5 million decrease in the allowance for credit losses at September 30, 2024, compared to January 1, 2024, largely 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 have seen lower required reserve percentages at many of our regulated utilities as a result of an improvement in loss rates. We also believe that the lower energy costs that customers were seeing, which were driven by warmer than normal weather conditions in the first half of 2024 and low average 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 September 30, 2023 (in millions) |  | Wisconsin |  | Illinois |  | Other States |  | WEC Energy Group Consolidated
Balance at July 1, 2023 |  | $ | 76.4 |  |  | $ | 97.0 |  |  | $ | 5.3 |  |  | $ | 178.7 |
Provision for credit losses |  | 10.2 |  |  | 4.0 |  |  | 0.6 |  |  | 14.8 |
Provision for credit losses deferred for future recovery or refund |  | 9.8 |  |  | 7.1 |  |  | — |  |  | 16.9 |
Write-offs charged against the allowance |  | (31.8) |  |  | (14.4) |  |  | (1.5) |  |  | (47.7) |
Recoveries of amounts previously written off |  | 7.4 |  |  | 6.3 |  |  | 0.4 |  |  | 14.1 |
Balance at September 30, 2023 |  | $ | 72.0 |  |  | $ | 100.0 |  |  | $ | 4.8 |  |  | $ | 176.8 |
Nine Months Ended September 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 |  | 28.1 |  |  | 17.3 |  |  | 1.5 |  |  | 46.9 |
Provision for credit losses deferred for future recovery or refund |  | 26.3 |  |  | 13.8 |  |  | — |  |  | 40.1 |
Write-offs charged against the allowance |  | (89.8) |  |  | (58.7) |  |  | (4.2) |  |  | (152.7) |
Recoveries of amounts previously written off |  | 25.4 |  |  | 16.6 |  |  | 1.2 |  |  | 43.2 |
Balance at September 30, 2023 |  | $ | 72.0 |  |  | $ | 100.0 |  |  | $ | 4.8 |  |  | $ | 176.8 |
On a consolidated basis, there was a $22.5 million decrease in the allowance for credit losses at September 30, 2023, compared to January 1, 2023, driven by customer write-offs related to the end of the winter moratorium. In addition, lower energy costs 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.

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 The entire disclosure for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-42 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 44 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-44 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-5 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-21 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479106/326-30-50-4 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-11 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479106/326-30-50-7 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-8 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 20 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-20 + Details
Name: | us-gaap_CreditLossFinancialInstrumentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration