RELATED PARTIES

We and our consolidated subsidiary, Bostco, routinely enter into transactions with related parties, including WEC Energy Group, its subsidiaries, ATC, and other entities in which we have material interests.

We provide and receive services, property, and other items of value to and from our parent, WEC Energy Group, and other subsidiaries of WEC Energy Group. On April 1, 2016, we, along with WEC Energy Group, filed a new agreement for approval with the PSCW and all other relevant state commissions that would replace our current affiliated interest agreements. The PSCW approved the new agreement in August 2016. We are awaiting approval in one other state before the new agreement will be implemented.

We provide services to and receive services from ATC for its transmission facilities under several agreements approved by the PSCW. Services are billed to ATC under these agreements at our fully allocated cost.

Bostco has a note payable to our parent company, WEC Energy Group. At September 30, 2016 and December 31, 2015, the balance of this note payable was $17.1 million and $19.6 million, respectively.

The following table shows activity associated with our related party transactions:



	Three Months Ended September 30				Nine Months Ended September 30
(in millions)	2016		2015		2016		2015
Lease agreements
Lease payments to W.E. Power, LLC ⁽¹⁾	$	91.4	$	96.9	$	308.8	$	290.1
Construction work in progress billed to W.E. Power, LLC	10.8		10.7		28.5		24.6

Transactions with WBS
Billings to WBS ⁽²⁾	46.2		9.2		156.0		9.2
Billings from WBS ⁽³⁾	40.4		0.3		266.0		0.3

Transactions with WPS
Billings to WPS	4.1		3.4		7.0		3.4
Billings from WPS	1.4		0.1		1.9		0.1

Transactions with WG
Natural gas purchases from WG	1.3		1.2		4.0		3.9
Services received from WG	6.0		6.2		16.5		17.7
Services provided to WG	15.5		19.9		45.4		60.1


⁽¹⁾	We make lease payments to W.E. Power, LLC, another subsidiary of WEC Energy Group, for Port Washington Generating Station Units 1 and 2 and Oak Creek Expansion Units 1 and 2.


⁽²⁾	Included in the amount of billings to WBS, for the nine months ended September 30, 2016, was $13.1 million for the transfer of certain software to WBS. There were no transfers of assets to WBS during the three months ended September 30, 2016.


⁽³⁾	Included in the amount of billings from WBS, for the three and nine months ended September 30, 2016, was $9.1 million and $116.1 million, respectively, for the transfer of certain benefit-related liabilities to WBS.