RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

We and our subsidiary, WPS Leasing, routinely enter into transactions with related parties, including Integrys Energy Group, its subsidiaries, and other entities in which we have material interests.

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

We provide services to WRPC under an operating agreement approved by the PSCW. We are also under a service agreement with WRPC under which either party may be a service provider. Services are billed to WRPC under these agreements at our fully allocated cost.

The table below includes information summarizing transactions entered into with related parties as of:

(Millions)	September 30, 2013		December 31, 2012
Notes payable *
Integrys Energy Group	$	6.6	$	7.2
Accounts Payable
ATC	10.1		9.2
Liability related to income tax allocation
Integrys Energy Group	6.9		7.4

* WPS Leasing, our consolidated subsidiary, has a note payable to our parent company, Integrys Energy Group.

In addition to the above transactions, $22.6 million was repaid to related parties during 2012 for amounts previously paid to us for the unfunded nonqualified retirement plan.

The following table shows activity associated with related party transactions:

	Three Months Ended September 30				Nine Months Ended September 30
(Millions)	2013		2012		2013		2012
Electric transactions
Sales to UPPCO	$	6.4	$	6.1	$	17.7	$	17.1
Natural gas transactions
Sales to Integrys Energy Services	0.1		0.1		0.3		0.5
Purchases from Integrys Energy Services	0.2		0.1		0.6		0.5
Interest expense (1)
Integrys Energy Group	0.1		0.1		0.4		0.4
Transactions with equity-method investees
Charges from ATC for network transmission services	24.6		23.5		73.8		70.6
Charges to ATC for services and construction	1.9		1.8		6.0		6.9
Net proceeds from WRPC sales of energy to MISO	—		0.6		—		2.4
Purchases of energy from WRPC	1.0		1.2		3.0		3.7
Charges to WRPC for operations	0.2		0.2		0.7		0.6
Equity earnings from WPS Investments, LLC (2)	2.5		2.5		7.6		7.6

⁽¹⁾  WPS Leasing, our consolidated subsidiary, has a note payable to our parent company, Integrys Energy Group.

⁽²⁾  WPS Investments, LLC is a consolidated subsidiary of Integrys Energy Group that is jointly owned by Integrys Energy Group, UPPCO, and us. At September 30, 2013, we had an 11.44% interest in WPS Investments accounted for under the equity method. Our ownership percentage has continued to decrease as additional equity contributions are made by Integrys Energy Group to WPS Investments.