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GOODWILL AND INTANGIBLES | 9 Months Ended
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Sep. 30, 2025
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 September 30, 2025. We had no changes to the carrying amount of goodwill during the nine months ended September 30, 2025.
(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 September 30, 2025. During the third quarter of 2025, annual impairment tests were completed at all of our reporting units that carried a goodwill balance as of July 1, 2025. No impairments resulted from these tests. Other Indefinite-Lived Intangible Assets At both September 30, 2025 and December 31, 2024, we had $29.3 million of indefinite-lived intangible assets, largely consisting of spectrum frequencies. The spectrum frequencies enable our 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 September 30, 2025 and December 31, 2024, we had a finite-lived intangible asset with a gross carrying amount of $18.8 million and $13.0 million, respectively, related to a PPA for Maple Flats Solar Energy Center acquired by WECI in November 2024. The PPA will be amortized over a useful life of 15 years and expires in 2039. At September 30, 2025 and 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 three and nine months ended September 30, 2025. Amortization expense to be recorded as a decrease to operating revenues is expected to be $1.3 million in each of the next five years. Intangible Liabilities The intangible liabilities below were all obtained through acquisitions by WECI.
|  | September 30, 2025 |  | December 31, 2024
(in millions) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
PPAs (1) |  | $ | 751.2 |  |  | $ | (162.0) |  |  | $ | 589.2 |  |  | $ | 679.6 |  |  | $ | (119.3) |  |  | $ | 560.3 |
Proxy revenue swap (2) |  | 7.2 |  |  | (4.8) |  |  | 2.4 |  |  | 7.2 |  |  | (4.2) |  |  | 3.0 |
Interconnection agreements (3) |  | 4.7 |  |  | (1.3) |  |  | 3.4 |  |  | 4.7 |  |  | (1.2) |  |  | 3.5 |
Total intangible liabilities |  | $ | 763.1 |  |  | $ | (168.1) |  |  | $ | 595.0 |  |  | $ | 691.5 |  |  | $ | (124.7) |  |  | $ | 566.8 |
(1) Represents PPAs related to the acquisition of Blooming Grove Wind Energy Center LLC, Tatanka Ridge, Jayhawk, Thunderhead, Samson I, Sapphire Sky Wind Energy LLC, Delilah I, and Hardin III expiring between 2030 and 2040. The weighted-average remaining useful life of the PPAs is 10 years. See Note 2, Acquisitions, for more information on the acquisition of Hardin III in 2025. (2) Represents an agreement with a counterparty to swap the market revenue of Upstream Wind Energy LLC's wind generation for fixed quarterly payments over 10 years, which expires in 2029. The remaining useful life of the proxy revenue swap is three years. (3) Represents interconnection agreements related to the acquisitions of Tatanka Ridge and Bishop Hill Energy III LLC, 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 15 years. Amortization related to these intangible liabilities for the three and nine months ended September 30, 2025, was $14.7 million and $43.4 million, respectively. Amortization related to these intangible liabilities for the three and nine months ended September 30, 2024, was $13.4 million and $40.2 million, respectively. Amortization for the next five years, including amounts recorded through September 30, 2025, 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 |  | $ | 57.9 |  |  | $ | 59.9 |  |  | $ | 59.9 |  |  | $ | 59.9 |  |  | $ | 59.9 |
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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