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Goodwill and Intangibles | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLES | GOODWILL AND INTANGIBLES Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable net assets acquired. The table below shows our goodwill balances by segment at December 31, 2024. We had no changes to the carrying amount of goodwill during the years ended December 31, 2024 and 2023.
(in millions) |  | Wisconsin |  | Illinois |  | Other States |  | Non-Utility Energy Infrastructure |  | Total
Goodwill balance (1) |  | $ | 2,104.3 |  |  | $ | 758.7 |  |  | $ | 183.2 |  |  | $ | 6.6 |  |  | $ | 3,052.8 |
(1) We had no accumulated impairment losses related to our goodwill as of December 31, 2024. During the third quarter of 2024, annual impairment tests were completed at all of our reporting units that carried a goodwill balance as of July 1, 2024. No impairments resulted from these tests. Other Indefinite-Lived Intangible Assets At December 31, 2024 and 2023, we had $29.3 million of other indefinite-lived intangible assets, largely consisting of spectrum frequencies. The spectrum frequencies enable the utilities to transmit data and voice communications over a wavelength dedicated to us throughout our service territories. We also have $5.2 million of other indefinite-lived intangible assets, consisting of a MGU trade name from a previous acquisition. These indefinite-lived intangible assets are included in other long-term assets on our balance sheets. Finite-Lived Intangible Asset At December 31, 2024, we had a finite-lived intangible asset of $13.0 million related to a PPA for Maple Flats acquired by WECI in November 2024. The PPA will be amortized over a useful life of 15 years and expires in 2039. At December 31, 2024, accumulated amortization related to the intangible asset was not material. This finite-lived intangible asset is included in other long-term assets on our balance sheet. Amortization expense related to the intangible asset was not material for the year ended December 31, 2024. Amortization expense to be recorded as a decrease to operating revenues is expected to be $0.9 million in each of the next five years. See Note 2, Acquisitions, for more information on the acquisition of Maple Flats. Intangible Liabilities The intangible liabilities below were all obtained through acquisitions by WECI.
|  | December 31, 2024 |  | December 31, 2023
(in millions) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
PPAs (1) |  | $ | 679.6 |  |  | $ | (119.3) |  |  | $ | 560.3 |  |  | $ | 653.9 |  |  | $ | (66.6) |  |  | $ | 587.3 |
Proxy revenue swap (2) |  | 7.2 |  |  | (4.2) |  |  | 3.0 |  |  | 7.2 |  |  | (3.5) |  |  | 3.7 |
Interconnection agreements (3) |  | 4.7 |  |  | (1.2) |  |  | 3.5 |  |  | 4.7 |  |  | (0.9) |  |  | 3.8 |
Total intangible liabilities |  | $ | 691.5 |  |  | $ | (124.7) |  |  | $ | 566.8 |  |  | $ | 665.8 |  |  | $ | (71.0) |  |  | $ | 594.8 |
(1) Represents PPAs related to the acquisition of Blooming Grove, Tatanka Ridge, Jayhawk, Thunderhead, Samson I, Sapphire Sky, and Delilah I expiring between 2030 and 2040. The weighted-average remaining useful life of the PPAs is 11 years. See Note 2, Acquisitions, for more information on the acquisition of Delilah I in 2024. (2) Represents an agreement with a counterparty to swap the market revenue of Upstream's wind generation for fixed quarterly payments over 10 years, which expires in 2029. The remaining useful life of the proxy revenue swap is four years. (3) Represents interconnection agreements related to the acquisitions of Tatanka Ridge and Bishop Hill III, expiring in 2040 and 2041, respectively. These agreements relate to payments for connecting our facilities to the infrastructure of another utility to facilitate the movement of power onto the electric grid. The weighted-average remaining useful life of the interconnection agreements is 16 years. Amortization related to these intangible liabilities for the years ended December 31, 2024, 2023, and 2022 was $53.7 million, $50.6 million, and $11.3 million, respectively. Amortization for the next five years is estimated to be:
|  | For the Years Ending December 31
(in millions) |  | 2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029
Amortization to be recorded as an increase to operating revenues |  | $ | 53.9 |  |  | $ | 55.1 |  |  | $ | 55.1 |  |  | $ | 55.1 |  |  | $ | 55.1 |
Amortization to be recorded as a decrease to other operation and maintenance |  | 0.2 |  |  | 0.2 |  |  | 0.2 |  |  | 0.2 |  |  | 0.2 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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