FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy

The following tables show assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy:

	September 30, 2013
(Millions)	Level 1		Level 2		Level 3		Total
Risk management assets
Natural gas contracts	$	0.3	$	—	$	—	$	0.3
Financial transmission rights (FTRs)	—		—		2.2		2.2
Coal contracts	—		—		1.5		1.5
Total	$	0.3	$	—	$	3.7	$	4.0
Risk management liabilities
Natural gas contracts	$	0.2	$	—	$	—	$	0.2
FTRs	—		—		0.4		0.4
Petroleum product contracts	0.1		—		—		0.1
Coal contracts	—		—		2.7		2.7
Total	$	0.3	$	—	$	3.1	$	3.4

	December 31, 2012
(Millions)	Level 1		Level 2		Level 3		Total
Risk management assets
Natural gas contracts	$	0.1	$	—	$	—	$	0.1
FTRs	—		—		1.2		1.2
Petroleum product contracts	0.1		—		—		0.1
Coal contracts	—		—		2.5		2.5
Total	$	0.2	$	—	$	3.7	$	3.9
Risk management liabilities
Natural gas contracts	$	0.6	$	—	$	—	$	0.6
FTRs	—		—		0.1		0.1
Coal contracts	—		—		9.0		9.0
Total	$	0.6	$	—	$	9.1	$	9.7

Significant internally-developed unobservable inputs used in the valuation of derivatives categorized in Level 3

The significant unobservable inputs used in the valuation that resulted in categorization within Level 3 were as follows at September 30, 2013. The amounts and percentages listed in the table below represent the range of unobservable inputs that individually had a significant impact on the fair value determination and caused a derivative to be classified as Level 3.

	Fair Value (Millions)
	Assets		Liabilities		Valuation Technique	Unobservable Input	Average or Range
FTRs	$	2.2	$	0.4	Market-based	Forward market prices ($/megawatt-month) (1)	$116.47
Coal contract	1.5		2.7		Market-based	Forward market prices ($/ton) (2)	$12.21 - $14.63

⁽¹⁾  Represents forward market prices developed using historical cleared pricing data from MISO.

⁽²⁾  Represents third-party forward market pricing.

Schedule of reconciliation of changes in the fair value of items categorized as Level 3 measurements

The following tables set forth a reconciliation of changes in the fair value of items categorized as Level 3 measurements:

	Three Months Ended September 30, 2013									Nine Months Ended September 30, 2013
(Millions)	FTRs			Coal Contracts			Total			FTRs			Coal Contracts			Total
Balance at the beginning of period	$	2.1		$	(2.3	)	$	(0.2	)	$	1.1		$	(6.5	)	$	(5.4	)
Net realized gains included in earnings	1.5			—			1.5			2.5			—			2.5
Net unrealized gains (losses) recorded as regulatory assets or liabilities	0.8			(4.5		)	(3.7		)	(0.3		)	2.2			1.9
Purchases	—			—			—			3.2			—			3.2
Sales	—			—			—			(0.1		)	—			(0.1		)
Settlements	(2.6		)	5.6			3.0			(4.6		)	3.1			(1.5		)
Balance at the end of period	$	1.8		$	(1.2	)	$	0.6		$	1.8		$	(1.2	)	$	0.6

	Three Months Ended September 30, 2012									Nine Months Ended September 30, 2012
(Millions)	FTRs			Coal Contracts			Total			FTRs			Coal Contracts			Total
Balance at the beginning of period	$	2.5		$	(9.8	)	$	(7.3	)	$	1.2		$	(6.9	)	$	(5.7	)
Net realized (losses) gains included in earnings	(0.6		)	—			(0.6		)	1.4			—			1.4
Net unrealized gains (losses) recorded as regulatory assets or liabilities	—			2.1			2.1			(0.3		)	1.5			1.2
Purchases	—			—			—			2.8			—			2.8
Sales	—			—			—			(0.1		)	—			(0.1		)
Settlements	(0.2		)	(1.6		)	(1.8		)	(3.3		)	(3.9		)	(7.2		)
Balance at the end of period	$	1.7		$	(9.3	)	$	(7.6	)	$	1.7		$	(9.3	)	$	(7.6	)

Schedule of carrying value and estimated fair value of financial instruments

The following table shows the financial instruments included on our balance sheets that are not recorded at fair value.

	September 30, 2013				December 31, 2012
(Millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt	$	849.5	$	858.4	$	871.4	$	966.2
Long-term debt to parent	6.6		7.2		7.2		8.2
Preferred stock	51.2		61.8		51.2		52.8