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EMPLOYEE BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2017
Retirement Benefits [Abstract]  
Reconciliation of the changes in the plans' benefit obligations and fair value of assets
The following tables provide a reconciliation of the changes in our share of the plans' benefit obligations and fair value of assets:
 
 
Pension Costs
 
OPEB Costs
(in millions)
 
2017
 
2016
 
2017
 
2016
Change in benefit obligation
 
 
 
 
 
 
 
 
Obligation at January 1
 
$
655.2

 
$
633.9

 
$
223.1

 
$
231.6

Service cost
 
9.0

 
9.9

 
6.2

 
7.3

Interest cost
 
26.7

 
27.0

 
9.1

 
10.6

Plan amendments
 
—

 
—

 
(21.7
)
 
(18.9
)
Net transfer to/from affiliates
 
—

 
6.2

(1) 
—

 
—

Actuarial loss
 
45.1

 
26.1

 
12.2

 
0.6

Participant contributions
 
—

 
—

 
1.0

 
0.4

Benefit payments
 
(31.3
)
 
(47.9
)
 
(9.7
)
 
(8.5
)
Obligation at December 31
 
$
704.7

 
$
655.2

 
$
220.2

 
$
223.1

 
 
 
 
 
 
 
 
 
Change in fair value of plan assets
 
 
 
 
 
 
 
 
Fair value at January 1
 
$
736.6

 
$
719.0

 
$
231.1

 
$
224.5

Actual return on plan assets
 
99.2

 
58.0

 
27.1

 
14.6

Employer contributions
 
65.7

 
1.3

 
1.0

 
0.1

Participant contributions
 
—

 
—

 
1.0

 
0.4

Benefit payments
 
(31.3
)
 
(47.9
)
 
(9.7
)
 
(8.5
)
Net transfer to/from affiliates
 
(157.8
)
(2) 
6.2

(1) 
—

 
—

Fair value at December 31
 
$
712.4

 
$
736.6

 
$
250.5

 
$
231.1

Funded status at December 31
 
$
7.7

 
$
81.4

 
$
30.3

 
$
8.0



(1) 
Benefit obligations and plan assets were moved along with our employees who were transferred to/from affiliated entities. As a result of the WEC Merger, certain of our employees were realigned across WEC Energy Group's various subsidiaries.

(2)  
Related to our transfer of pension trust assets in conjunction with the Integrys pension plan split for the year ended December 31, 2017. Assets were transferred out of our plan in January 2017. See Note 3, Related Parties, for more information.
Amounts recognized on the balance sheets at December 31 related to the funded status of the benefit plans
The amounts recognized on our balance sheets at December 31 related to the funded status of the benefit plans were as follows:
 
 
Pension Costs
 
OPEB Costs
(in millions)
 
2017
 
2016
 
2017
 
2016
Pension and OPEB assets
 
$
15.6

 
$
89.0

 
$
46.4

 
$
25.8

Pension and OPEB obligations
 
7.9

 
7.6

 
16.1

 
17.8

Total net assets
 
$
7.7

 
$
81.4


$
30.3


$
8.0
Information for pension plans with an accumulated benefit obligation in excess of plan assets
The following table shows information for pension plans with an accumulated benefit obligation in excess of plan assets. There were no plan assets related to these pension plans. Amounts presented are as of December 31:
(in millions)
 
2017
 
2016
Projected benefit obligation
 
$
7.9

 
$
7.6

Accumulated benefit obligation
 
7.9

 
7.6
Amounts that had not yet been recognized in the entity's net periodic benefit cost
The following table shows the amounts that had not yet been recognized in our net periodic benefit cost as of December 31:
 
 
Pension Costs
 
OPEB Costs
(in millions)
 
2017
 
2016
 
2017
 
2016
Net regulatory assets
 
 
 
 
 
 
 
 
Net actuarial loss
 
$
196.5

 
$
221.4

 
$
27.2

 
$
27.8

Prior service credits
 
—

 
—

 
(92.6
)
 
(80.6
)
Total
 
$
196.5

 
$
221.4

 
$
(65.4
)
 
$
(52.8
)
Estimated amounts that will be amortized into net periodic benefit cost
The following table shows the estimated amounts that will be amortized into net periodic benefit cost during 2018:
(in millions)
 
Pension Costs
 
OPEB Costs
Net actuarial loss
 
$
20.0

 
$
2.5

Prior service credits
 
—

 
(11.3
)
Total 2018 – estimated amortization
 
$
20.0

 
$
(8.8
)
Schedule of the components of net periodic benefit cost
The components of net periodic benefit cost (including amounts capitalized to our balance sheets) for the years ended December 31 were as follows:
 
 
Pension Costs
 
OPEB Costs
(in millions)
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Service cost
 
$
9.0

 
$
9.9

 
$
10.7

 
$
6.2

 
$
7.3

 
$
8.7

Interest cost
 
26.7

 
27.0

 
31.7

 
9.1

 
10.6

 
10.4

Expected return on plan assets
 
(46.4
)
 
(52.6
)
 
(64.8
)
 
(16.7
)
 
(15.9
)
 
(16.0
)
Loss on plan settlement
 
—

 
3.4

 
0.1

 
—

 
—

 
—

Amortization of prior service cost (credit)
 
—

 
—

 
0.2

 
(9.8
)
 
(7.4
)
 
(9.3
)
Amortization of net actuarial loss
 
17.3

 
18.0

 
21.0

 
2.5

 
2.5

 
3.7

Net periodic benefit cost (credit)
 
$
6.6

 
$
5.7

 
$
(1.1
)
 
$
(8.7
)
 
$
(2.9
)
 
$
(2.5
)
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost for the plans
The weighted-average assumptions used to determine the benefit obligations for the plans were as follows for the years ended December 31:
 
 
Pension
 
OPEB
 
 
2017
 
2016
 
2017
 
2016
Discount rate
 
3.70%
 
4.19%
 
3.67%
 
4.21%
Rate of compensation increase
 
4.00%
 
4.00%
 
N/A
 
N/A
Assumed medical cost trend rate (Pre 65)
 
N/A
 
N/A
 
6.50%
 
7.00%
Ultimate trend rate
 
N/A
 
N/A
 
5.00%
 
5.00%
Year ultimate trend rate is reached
 
N/A
 
N/A
 
2024
 
2021
Assumed medical cost trend rate (Post 65)
 
N/A
 
N/A
 
6.00%
 
7.00%
Ultimate trend rate
 
N/A
 
N/A
 
5.00%
 
5.00%
Year ultimate trend rate is reached
 
N/A
 
N/A
 
2028
 
2021

The weighted-average assumptions used to determine net periodic benefit cost for the plans were as follows for the years ended December 31:
 
 
Pension Costs
 
 
2017
 
2016
 
2015
Discount rate
 
4.19%
 
4.25%
 
4.08%
Expected return on assets
 
7.25%
 
7.25%
 
7.75%
Rate of compensation increase
 
4.00%
 
4.00%
 
4.23%

 
 
OPEB Costs
 
 
2017
 
2016
 
2015
Discount rate
 
4.11%
 
4.46%
 
4.11%
Expected return on assets
 
7.25%
 
7.25%
 
7.75%
Assumed medical cost trend rate (Pre 65/Post 65)
 
7.00%
 
7.50%
 
6.00%
Ultimate trend rate
 
5.00%
 
5.00%
 
5.00%
Year ultimate trend rate is reached
 
2021
 
2021
 
2023
Effects of a one-percentage-point change in assumed health care cost trend rates
For the year ended December 31, 2017, a one-percentage-point change in assumed health care cost trend rates would have had the following effects:
(in millions)
 
1% Increase
 
1% Decrease
Effect on total of service and interest cost components of net periodic postretirement health care benefit cost
 
$
2.7

 
$
(2.0
)
Effect on the health care component of the accumulated postretirement benefit obligation
 
27.9

 
(21.9
)
Investments recorded at fair value, by asset class
The following tables provide the fair values of our investments by asset class:
 
 
December 31, 2017
 
 
Pension Plan Assets
 
OPEB Assets
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Asset Class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
22.2

 
$
—

 
$
22.2

 
$
9.2

 
$
0.3

 
$
—

 
$
9.5

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States Equity
 
97.9

 
—

 
—

 
97.9

 
26.5

 
—

 
—

 
26.5

International Equity
 
98.2

 
—

 
0.4

 
98.6

 
31.8

 
—

 
0.2

 
32.0

Fixed income securities: *
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States Bonds
 
17.8

 
129.2

 
—

 
147.0

 
47.0

 
35.7

 
—

 
82.7

International Bonds
 
2.3

 
21.2

 
—

 
23.5

 
2.5

 
1.8

 
—

 
4.3

Private Equity and Real Estate
 
—

 
62.9

 
12.5

 
75.4

 
—

 
0.7

 
0.1

 
0.8

 
 
$
216.2

 
$
235.5

 
$
12.9

 
$
464.6

 
$
117.0

 
$
38.5

 
$
0.3

 
$
155.8

Investments measured at net asset value
 
 
 
 
 
 
 
$
247.8

 
 
 
 
 
 
 
$
94.7

Total
 
$
216.2

 
$
235.5

 
$
12.9

 
$
712.4

 
$
117.0

 
$
38.5

 
$
0.3

 
$
250.5


*
This category represents investment grade bonds of United States and foreign issuers denominated in United States dollars from diverse industries.
 
 
December 31, 2016
 
 
Pension Plan Assets
 
OPEB Assets
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Asset Class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1.3

 
$
19.2

 
$
—

 
$
20.5

 
$
10.3

 
$
0.2

 
$
—

 
$
10.5

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States Equity
 
94.9

 
0.1

 
—

 
95.0

 
7.1

 
—

 
—

 
7.1

International Equity
 
18.1

 
0.3

 
—

 
18.4

 
0.3

 
0.1

 
—

 
0.4

Fixed income securities: *
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States Bonds
 
—

 
151.7

 
0.5

 
152.2

 
—

 
33.2

 
—

 
33.2

International Bonds
 
—

 
20.1

 
—

 
20.1

 
—

 
1.8

 
—

 
1.8

 
 
$
114.3

 
$
191.4

 
$
0.5

 
$
306.2

 
$
17.7

 
$
35.3

 
$
—

 
$
53.0

Investments measured at net asset value
 
 
 
 
 
 
 
$
430.4

 
 
 
 
 
 
 
$
178.1

Total
 
$
114.3

 
$
191.4

 
$
0.5

 
$
736.6

 
$
17.7

 
$
35.3

 
$
—

 
$
231.1


*
This category represents investment grade bonds of United States and foreign issuers denominated in United States dollars from diverse industries.
Reconciliation of changes in the fair value of plan assets categorized as Level 3 measurements
The following tables set forth a reconciliation of changes in the fair value of pension and OPEB plan assets categorized as Level 3 in the fair value hierarchy:
 
 
Private Equity and
Real Estate
 
International Equity
 
U.S. Bonds
(in millions)
 
Pension
 
OPEB
 
Pension
 
OPEB
 
Pension
Beginning balance at January 1, 2017
 
$
—

 
$
—

 
$
—

 
$
—

 
$
0.5

Realized and unrealized losses
 
—

 
—

 
(0.1
)
 
—

 
(0.5
)
Purchases
 
12.5

 
0.1

 
0.5

 
0.2

 
—

Ending balance at December 31, 2017
 
$
12.5

 
$
0.1

 
$
0.4

 
$
0.2

 
$
—


(in millions)
 
U.S. Bonds
Beginning balance at January 1, 2016
 
$
—

Purchases
 
0.5

Ending balance at December 31, 2016
 
$
0.5
Schedule of expected future benefit payments
The following table shows the payments, reflecting expected future service, that we expect to make for pension and OPEB.
(in millions)
 
Pension Costs
 
OPEB Costs
2018
 
$
34.4

 
$
10.4

2019
 
34.9

 
10.8

2020
 
36.3

 
10.1

2021
 
36.6

 
10.5

2022
 
34.6

 
10.8

2023-2027
 
182.8

 
58.9