XML 35 R17.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Regulatory Assets and Liabilities | 12 Months Ended
--- | ---
Dec. 31, 2024
Regulatory Assets and Liabilities Disclosure [Abstract] |
REGULATORY ASSETS AND LIABILITIES | REGULATORY ASSETS AND LIABILITIES The following regulatory assets were reflected on our balance sheets as of December 31:
(in millions) |  | 2024 |  | 2023 |  | See Note
Regulatory assets (1) (2) |  |  |  |  |  |
Plant retirement related items (3) |  | $ | 810.5 |  |  | $ | 646.2 |  |  | 24
Pension and OPEB costs (4) |  | 684.9 |  |  | 731.7 |  |  | 20, 26
Environmental remediation costs (5) |  | 570.1 |  |  | 596.8 |  |  | 24
Income tax related items |  | 438.5 |  |  | 449.9 |  |  | 1(q), 16
AROs |  | 166.7 |  |  | 162.0 |  |  | 1(l), 9
Uncollectible expense |  | 151.5 |  |  | 127.7 |  |  | 5
Decoupling |  | 110.0 |  |  | 27.3 |  |  | 1(d)
SSR (6) |  | 102.9 |  |  | 113.2 |  |  |
Securitization |  | 76.5 |  |  | 85.9 |  |  | 23
Bluewater (7) |  | 57.7 |  |  | 45.3 |  |  |
Derivatives |  | 38.2 |  |  | 130.3 |  |  | 1(s)
Energy efficiency programs (8) |  | 26.5 |  |  | 33.9 |  |  |
Finance and operating leases |  | 22.0 |  |  | 12.0 |  |  | 15
Other, net |  | 122.7 |  |  | 112.5 |  |  |
Total regulatory assets |  | $ | 3,378.7 |  |  | $ | 3,274.7 |  |  |
Balance sheet presentation |  |  |  |  |  |
Other current assets |  | $ | 39.0 |  |  | $ | 24.9 |  |  |
Regulatory assets |  | 3,339.7 |  |  | 3,249.8 |  |  |
Total regulatory assets |  | $ | 3,378.7 |  |  | $ | 3,274.7 |  |  |
(1) Based on prior and current rate treatment, we believe it is probable that our utilities will continue to recover from customers the regulatory assets in this table. In accordance with GAAP, our regulatory assets do not include the allowance for ROE that is capitalized for regulatory purposes. This allowance was $26.7 million at both December 31, 2024 and 2023. (2) As of December 31, 2024, we had $281.3 million of regulatory assets not earning a return, $2.3 million of regulatory assets earning a return based on short-term interest rates, $117.9 million of regulatory assets earning a return based on long-term interest rates, and $5.8 million of regulatory assets earning a return based on the applicable utility's ROE. The regulatory assets not earning a return primarily relate to decoupling mechanisms, certain environmental remediation costs, uncollectible expense, unamortized loss on reacquired debt, and PGL's invested capital tax rider. The other regulatory assets in the table either earn a return at the applicable utility's weighted average cost of capital or the cash has not yet been expended, in which case the regulatory assets are offset by liabilities. (3) At December 31, 2024, plant retirement related items included $121.3 million of capitalized retirement costs related to the new EPA CCR Rule that was enacted in April 2024. (4) Primarily represents the unrecognized future pension and OPEB costs related to our defined benefit pension and OPEB plans. We are authorized recovery of these regulatory assets over the average remaining service life of each plan. (5) As of December 31, 2024, we had made cash expenditures of $124.3 million related to these environmental remediation costs. The remaining $445.8 million represents our estimated future cash expenditures. (6) This regulatory asset relates to WE's 2014 announcement to retire the PIPP. Despite WE's intent to retire the PIPP, MISO designated the PIPP as a SSR, which meant the PIPP's operation was necessary for reliability, and the plant could not be shut down until new generation or transmission facilities were built. In December 2014, the PSCW authorized escrow accounting for WE's SSR revenues because of the fluctuations in the actual revenues WE received under the PIPP SSR agreements. The rate order WE received from the PSCW in December 2019 authorized recovery of this SSR regulatory asset over a 15-year period that began on January 1, 2020. (7) Primarily relates to costs associated with the long-term service agreements our Wisconsin utilities have with Bluewater for natural gas storage services. The PSCW has approved escrow accounting for these costs. As a result, our Wisconsin utilities defer as a regulatory asset or liability the difference between actual storage costs and those included in rates until recovery or refund is authorized in a future rate proceeding. (8) Represents amounts recoverable from customers related to programs at the utilities designed to meet energy efficiency standards. The following regulatory liabilities were reflected on our balance sheets as of December 31:
(in millions) |  | 2024 |  | 2023 |  | See Note
Regulatory liabilities |  |  |  |  |  |
Income tax related items |  | $ | 1,825.4 |  |  | $ | 1,901.8 |  |  | 16
Removal costs (1) |  | 1,458.2 |  |  | 1,329.9 |  |  |
Pension and OPEB benefits (2) |  | 308.5 |  |  | 299.2 |  |  | 20, 26
Energy costs refundable through rate adjustments |  | 160.8 |  |  | 72.4 |  |  | 1(d)
Uncollectible expense |  | 47.2 |  |  | 21.2 |  |  | 5
Revenue requirements of renewable generation facilities (3) |  | 44.2 |  |  | — |  |  | 26
Derivatives |  | 36.9 |  |  | 19.2 |  |  | 1(s)
Electric transmission costs (4) |  | 19.7 |  |  | 30.3 |  |  |
Other, net |  | 102.4 |  |  | 71.2 |  |  |
Total regulatory liabilities |  | $ | 4,003.3 |  |  | $ | 3,745.2 |  |  |
Balance sheet presentation |  |  |  |  |  |
Other current liabilities |  | $ | 45.3 |  |  | $ | 47.5 |  |  |
Regulatory liabilities |  | 3,958.0 |  |  | 3,697.7 |  |  |
Total regulatory liabilities |  | $ | 4,003.3 |  |  | $ | 3,745.2 |  |  |
(1) Represents amounts collected from customers to cover the future cost of property, plant, and equipment removals that are not legally required. Legal obligations related to the removal of property, plant, and equipment are recorded as AROs. See Note 9, Asset Retirement Obligations, for more information on our legal obligations. (2) Primarily represents the unrecognized future pension and OPEB benefits related to our defined benefit pension and OPEB plans. We will amortize these regulatory liabilities into net periodic benefit cost over the average remaining service life of each plan. (3) These amounts represent the deferral of the incremental revenue requirement impact from the delayed in-service date of certain renewable generation facilities constructed by our electric utilities. (4) In accordance with the PSCW's approval of escrow accounting for ATC and MISO network transmission expenses for our Wisconsin electric utilities, WE and WPS defer as a regulatory asset or liability the difference between actual transmission costs and those included in rates until recovery or refund is authorized in a future rate proceeding. Oak Creek Power Plant Units 5-6 In May 2024, OCPP Units 5 and 6 were retired. Due to the retirement of these units and the determination that recovery was probable, their net book value of $75.3 million at December 31, 2024 was classified as a regulatory asset. In addition, a $43.8 million cost of removal reserve related to the units continued to be classified as a regulatory liability at December 31, 2024. Not included in these amounts was $8.6 million of deferred tax liabilities previously recorded for the retired units. Effective with its rate order issued by the PSCW in December 2022, WE received approval to collect a return of and on the entire net book value of OCPP Units 5 and 6 and, as a result, will continue to amortize the regulatory asset on a straight-line basis, using the composite depreciation rates approved by the PSCW before the units were retired. The amortization is included in depreciation and amortization on the income statement. WE also has FERC approval to continue to collect the net book value of OCPP Units 5 and 6 using the approved composite depreciation rates, in addition to a return on the remaining net book value. Pleasant Prairie Power Plant The Pleasant Prairie power plant was retired on April 10, 2018. The net book value of this plant was $506.8 million at December 31, 2024, representing book value less cost of removal and accumulated depreciation. In addition, previously deferred unprotected tax benefits from the Tax Legislation related to the unrecovered balance of this plant were $15.4 million as of December 31, 2024. The net amount of $491.4 million was classified as a regulatory asset on our balance sheet at December 31, 2024 due to the retirement of the plant. This regulatory asset does not include certain other previously recorded deferred tax liabilities of $138.0 million related to the retired Pleasant Prairie power plant. Pursuant to its rate order issued by the PSCW in December 2019, WE will continue to amortize this regulatory asset on a straight-line basis through 2039, using the composite depreciation rates approved by the PSCW before this plant was retired. The amortization is included in depreciation and amortization in the income statement. WE also has FERC approval to continue to collect the net book value of the Pleasant Prairie power plant using the approved composite depreciation rates, in addition to a return on the remaining net book value. WE received approval from the PSCW in December 2019 to collect a full return of the net book value of the Pleasant Prairie power plant and a return on all but $100 million of the net book value. During May 2021, WE securitized the remaining $100 million of the Pleasant Prairie power plant's book value, the carrying costs accrued on the $100 million during the securitization process, and the related financing fees, in accordance with a written order issued by the PSCW in November 2020. See Note 23, Variable Interest Entities, for more information on this securitization. Presque Isle Power Plant Pursuant to MISO's April 2018 approval of the retirement of the PIPP, these units were retired on March 31, 2019. The net book value of the PIPP was $142.6 million at December 31, 2024, representing book value less cost of removal and accumulated depreciation. In addition, previously deferred unprotected tax benefits from the Tax Legislation related to the unrecovered balance of these units were $4.4 million as of December 31, 2024. The net amount of $138.2 million was classified as a regulatory asset on our balance sheet at December 31, 2024 as a result of the retirement of the plant. This regulatory asset does not include certain other previously recorded deferred tax liabilities of $38.7 million related to the retired PIPP. After the retirement of the PIPP, a portion of the regulatory asset and related cost of removal reserve was transferred to UMERC for recovery from its retail customers. In WE's rate order issued by the PSCW in December 2019 and UMERC's rate order issued by the MPSC in October 2024, WE and UMERC received approval to collect a return of and on the net book value of the PIPP and, as a result, will continue to amortize the regulatory assets on a straight-line basis through 2037, using the composite depreciation rates approved by the PSCW before the units were retired. This amortization is included in depreciation and amortization in the income statement. WE also has FERC approval to continue to collect the net book value of the PIPP using the approved composite depreciation rates, in addition to a return on the remaining net book value. Pulliam Power Plant In connection with a MISO ruling, WPS retired Pulliam Units 7 and 8 on October 21, 2018. The net book value of the Pulliam units was $29.3 million at December 31, 2024, representing book value less cost of removal and accumulated depreciation. This amount was classified as a regulatory asset on our balance sheet at December 31, 2024 as a result of the retirement of the plant. Effective with its rate order issued by the PSCW in December 2019, WPS received approval to collect a return of and on the entire net book value of the Pulliam units and, as a result, will continue to amortize this regulatory asset on a straight-line basis through 2031, using the composite depreciation rates approved by the PSCW before these generating units were retired. The amortization is included in depreciation and amortization in the income statement. WPS also has FERC approval to continue to collect the net book value of the Pulliam power plant using the approved composite depreciation rates, in addition to a return on the remaining net book value. Edgewater Generating Station Unit 4 The Edgewater 4 generating unit was retired on September 28, 2018. The net book value of the generating unit was $1.0 million at December 31, 2024, representing book value less cost of removal and accumulated depreciation. This amount was classified as a regulatory asset on our balance sheet at December 31, 2024 as a result of the retirement of the plant. Effective with its rate order issued by the PSCW in December 2019, WPS received approval to collect a return of and on the entire net book value of the Edgewater 4 generating unit and, as a result, will continue to amortize this regulatory asset on a straight-line basis through 2026, using the composite depreciation rates approved by the PSCW before this generating unit was retired. The amortization is included in depreciation and amortization in the income statement. WPS also has FERC approval to continue to collect the net book value of the Edgewater 4 generating unit using the approved composite depreciation rates, in addition to a return on the remaining net book value.

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

X
- Definition The entire disclosure for detailed information about regulatory assets and liabilities, including current and noncurrent assets created when regulatory agencies permit the deferral of costs to the balance sheet that would otherwise be required to appear on the company's income statement and would be charged against current expenses or revenues, as well as current and noncurrent liabilities created when regulatory agencies permit. + References No definition available. + Details
Name: | us-gaap_ScheduleOfRegulatoryAssetsAndLiabilitiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration