Commission | Registrant; State of Incorporation | IRS Employer |
File Number | Address; and Telephone Number | Identification No. |
001-09057 | WISCONSIN ENERGY CORPORATION | 39-1391525 |
(A Wisconsin Corporation) | ||
231 West Michigan Street | ||
P.O. Box 1331 | ||
Milwaukee, WI 53201 | ||
(414) 221-2345 | ||
Securities Registered Pursuant to Section 12(b) of the Act: | |
Name of Each Exchange | |
Title of Each Class | on Which Registered |
Common Stock, $.01 Par Value | New York Stock Exchange |
Securities Registered Pursuant to Section 12(g) of the Act: None |
Large accelerated filer [X] | Accelerated filer [ ] | ||
Non-accelerated filer [ ] (Do not | Smaller reporting company [ ] | ||
check if a smaller reporting company) |
Common Stock, $.01 Par Value, | 230,461,537 shares outstanding |
2011 Form 10-K |
TABLE OF CONTENTS | |
Item | Page |
PART I | |
PART II | |||
Note A | |||
Note B | |||
Note C | |||
Note D | |||
Note E | |||
Note F | |||
Note G | |||
Note H | |||
Note I | |||
Note J | |||
Note K | |||
Note L | |||
Note M | |||
Note N |
3 | Wisconsin Energy Corporation |
2011 Form 10-K |
TABLE OF CONTENTS - (Cont'd) | |||
Item | Page | ||
Note O | |||
Note P | |||
Note Q | |||
Note R | |||
Note S | |||
PART III | |||
PART IV | |||
4 | Wisconsin Energy Corporation |
2011 Form 10-K |
DEFINITION OF ABBREVIATIONS AND INDUSTRY TERMS | ||
The abbreviations and terms set forth below are used throughout this report and have the meanings assigned to them below: | ||
Primary Subsidiaries | ||
We Power | W.E. Power, LLC | |
Wisconsin Electric | Wisconsin Electric Power Company | |
Wisconsin Gas | Wisconsin Gas LLC | |
Significant Assets | ||
OC 1 | Oak Creek expansion Unit 1 | |
OC 2 | Oak Creek expansion Unit 2 | |
PWGS | Port Washington Generating Station | |
PWGS 1 | Port Washington Generating Station Unit 1 | |
PWGS 2 | Port Washington Generating Station Unit 2 | |
VAPP | Valley Power Plant | |
Other Subsidiaries and Affiliates | ||
ATC | American Transmission Company LLC | |
ERGSS | Elm Road Generating Station Supercritical, LLC | |
ERS | Elm Road Services, LLC | |
Minergy | Minergy LLC | |
WECC | Wisconsin Energy Capital Corporation | |
Wispark | Wispark LLC | |
Wisvest | Wisvest LLC | |
Federal and State Regulatory Agencies | ||
DOE | United States Department of Energy | |
EPA | United States Environmental Protection Agency | |
FERC | Federal Energy Regulatory Commission | |
IRS | Internal Revenue Service | |
MPSC | Michigan Public Service Commission | |
PSCW | Public Service Commission of Wisconsin | |
SEC | Securities and Exchange Commission | |
WDNR | Wisconsin Department of Natural Resources | |
Environmental Terms | ||
Act 141 | 2005 Wisconsin Act 141 | |
BART | Best Available Retrofit Technology | |
BTA | Best Technology Available | |
CAA | Clean Air Act | |
CAIR | Clean Air Interstate Rule | |
CAVR | Clean Air Visibility Rule | |
CO2 | Carbon Dioxide | |
CSAPR | Cross-State Air Pollution Rule | |
FIP | Federal Implementation Plan | |
MACT | Maximum Achievable Control Technology | |
MATS | Mercury and Air Toxics Standards | |
NODA | Notice of Data Availability |
5 | Wisconsin Energy Corporation |
2011 Form 10-K |
DEFINITION OF ABBREVIATIONS AND INDUSTRY TERMS | ||
The abbreviations and terms set forth below are used throughout this report and have the meanings assigned to them below: | ||
NOV | Notice of Violation | |
NOx | Nitrogen Oxide | |
PM2.5 | Fine Particulate Matter | |
SIP | State Implementation Plan | |
SO2 | Sulfur Dioxide | |
Other Terms and Abbreviations | ||
AQCS | Air Quality Control System | |
ARRs | Auction Revenue Rights | |
Bechtel | Bechtel Power Corporation | |
Compensation Committee | Compensation Committee of the Board of Directors | |
CPCN | Certificate of Public Convenience and Necessity | |
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | |
Edison Sault | Edison Sault Electric Company | |
ERISA | Employee Retirement Income Security Act of 1974 | |
Exchange Act | Securities Exchange Act of 1934, as amended | |
Fitch | Fitch Ratings | |
FTRs | Financial Transmission Rights | |
GCRM | Gas Cost Recovery Mechanism | |
GDP | Gross Domestic Product | |
Junior Notes | Wisconsin Energy's 2007 Series A Junior Subordinated Notes due 2067 issued in May 2007 | |
LLC | Limited Liability Company | |
LMP | Locational Marginal Price | |
MISO | Midwest Independent Transmission System Operator, Inc. | |
MISO Energy Markets | MISO Energy and Operating Reserves Market | |
Moody's | Moody's Investor Service | |
NYMEX | New York Mercantile Exchange | |
OTC | Over-the-Counter | |
Plan | The Wisconsin Energy Corporation Retirement Account Plan | |
Point Beach | Point Beach Nuclear Power Plant | |
PTF | Power the Future | |
PUHCA 2005 | Public Utility Holding Company Act of 2005 | |
RCC | Replacement Capital Covenant dated May 11, 2007 | |
RSG | Revenue Sufficiency Guarantee | |
RTO | Regional Transmission Organization | |
Settlement Agreement | Settlement Agreement and Release between ERS and Bechtel effective as of December 16, 2009 | |
S&P | Standard & Poor's Ratings Services | |
WPL | Wisconsin Power and Light Company, a subsidiary of Alliant Energy Corp. | |
Measurements | ||
Btu | British Thermal Unit(s) | |
Dth | Dekatherm(s) (One Dth equals one million Btu) | |
kW | Kilowatt(s) (One kW equals one thousand Watts) |
6 | Wisconsin Energy Corporation |
2011 Form 10-K |
DEFINITION OF ABBREVIATIONS AND INDUSTRY TERMS | ||
The abbreviations and terms set forth below are used throughout this report and have the meanings assigned to them below: | ||
kWh | Kilowatt-hour(s) | |
MW | Megawatt(s) (One MW equals one million Watts) | |
MWh | Megawatt-hour(s) | |
Watt | A measure of power production or usage | |
Accounting Terms | ||
AFUDC | Allowance for Funds Used During Construction | |
ARO | Asset Retirement Obligation | |
CWIP | Construction Work in Progress | |
FASB | Financial Accounting Standards Board | |
GAAP | Generally Accepted Accounting Principles | |
IFRS | International Financial Reporting Standards | |
OPEB | Other Post-Retirement Employee Benefits | |
7 | Wisconsin Energy Corporation |
2011 Form 10-K |
• | Factors affecting utility operations such as catastrophic weather-related or terrorism-related damage; cyber-security threats and disruptions to our technology network; availability of electric generating facilities; unscheduled generation outages, or unplanned maintenance or repairs; unanticipated events causing scheduled generation outages to last longer than expected; unanticipated changes in fossil fuel, purchased power, coal supply, gas supply or water supply costs or availability due to higher demand, shortages, transportation problems or other developments; unanticipated changes in the cost or availability of materials needed to operate new environmental controls at our electric generating facilities or replace and/or repair our electric and gas distribution systems; nonperformance by electric energy or natural gas suppliers under existing power purchase or gas supply contracts; environmental incidents; electric transmission or gas pipeline system constraints; unanticipated organizational structure or key personnel changes; collective bargaining agreements with union employees or work stoppages; or inflation rates. |
• | Factors affecting the demand for electricity and natural gas, including weather and other natural phenomena; the economic climate in our service territories; customer growth and declines; customer business conditions, including demand for their products and services; and energy conservation efforts. |
• | Timing, resolution and impact of pending and future rate cases and negotiations, including recovery of all costs associated with our Power the Future (PTF) strategy, as well as costs associated with environmental compliance, renewable generation, transmission service, distribution system upgrades, fuel and the Midwest Independent Transmission System Operator, Inc. (MISO) Energy Markets. |
• | Increased competition in our electric and gas markets and continued industry consolidation. |
• | The ability to control costs and avoid construction delays during the development and construction of new environmental controls and renewable generation. |
• | The impact of recent and future federal, state and local legislative and regulatory changes, including any changes in rate-setting policies or procedures; electric and gas industry restructuring initiatives; transmission or distribution system operation and/or administration initiatives; any required changes in facilities or operations to reduce the risks or impacts of potential terrorist activities or cybersecurity threats; required approvals for new construction, and the siting approval process for new generation and transmission facilities and new pipeline construction; changes to the Federal Power Act and related regulations and enforcement thereof by the Federal Energy Regulatory Commission (FERC) and other regulatory agencies; changes in allocation of energy assistance, including state public benefits funds; changes in environmental, tax and other laws and regulations to which we are subject; changes in the application of existing laws and regulations; and changes in the interpretation or enforcement of permit conditions by the permitting agencies. |
8 | Wisconsin Energy Corporation |
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION - (Cont'd) | 2011 Form 10-K |
• | Restrictions imposed by various financing arrangements and regulatory requirements on the ability of our subsidiaries to transfer funds to us in the form of cash dividends, loans or advances. |
• | Current and future litigation, regulatory investigations, proceedings or inquiries, including FERC matters and IRS audits and other tax matters. |
• | Failure of the court to approve the settlement agreement reached in the lawsuit against the Wisconsin Energy Corporation Retirement Account Plan (Plan). |
• | Events in the global credit markets that may affect the availability and cost of capital. |
• | Other factors affecting our ability to access the capital markets, including general capital market conditions; our capitalization structure; market perceptions of the utility industry, us or any of our subsidiaries; and our credit ratings. |
• | The investment performance of our pension and other post-retirement benefit trusts. |
• | The financial performance of American Transmission Company LLC (ATC) and its corresponding contribution to our earnings. |
• | The impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and any regulations promulgated thereunder. |
• | The impact of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 and any related regulations. |
• | The effect of accounting pronouncements issued periodically by standard setting bodies, including any changes in regulatory accounting policies and practices and any requirement for U.S. registrants to follow International Financial Reporting Standards (IFRS) instead of Generally Accepted Accounting Principles (GAAP). |
• | Unanticipated technological developments that result in competitive disadvantages and create the potential for impairment of existing assets. |
• | Changes in the creditworthiness of the counterparties with whom we have contractual arrangements, including participants in the energy trading markets and fuel suppliers and transporters. |
• | The ability to obtain and retain short- and long-term contracts with wholesale customers. |
• | The cyclical nature of property values that could affect our real estate investments. |
• | Changes to the legislative or regulatory restrictions or caps on non-utility acquisitions, investments or projects, including the state of Wisconsin's public utility holding company law. |
• | Foreign governmental, economic, political and currency risks. |
• | Other business or investment considerations that may be disclosed from time to time in our Securities and Exchange Commission (SEC) filings or in other publicly disseminated written documents, including the risk factors set forth in Item 1A of this report. |
9 | Wisconsin Energy Corporation |
2011 Form 10-K |
ITEM 1. | BUSINESS |
10 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
Dependable Capability in MW (a) | ||||||||
2011 | 2010 | 2009 | ||||||
Coal (b) | 3,880 | 3,646 | 3,131 | |||||
Natural Gas - Combined Cycle | 1,090 | 1,090 | 1,090 | |||||
Natural Gas/Oil - Peaking Units (c) | 1,150 | 1,150 | 1,150 | |||||
Renewables (d) | 118 | 86 | 86 | |||||
Total | 6,238 | 5,972 | 5,457 |
(a) | Dependable capability is the net power output under average operating conditions with equipment in an average state of repair as of a given month in a given year. The values were established by test and may change slightly from year to year. |
11 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
(b) | The increase in 2011 as compared to 2010 reflects the January 2011 in-service date of OC 2, partially offset by the March 2011 sale of our interest in Edgewater Generating Unit 5. The increase in 2010 as compared to 2009 reflects the February 2010 in-service date of OC 1. Our share of the dependable capability of OC 1 and OC 2 is 528 MW each. |
(c) | The dual-fueled facilities generally burn oil only if natural gas is not available due to constraints on the natural gas pipeline and/or at the local gas distribution company that delivers gas to the plants. |
(d) | Includes hydroelectric and wind generation. The increase in 2011 as compared to 2010 reflects the December 2011 in-service date of the Glacier Hills Wind Park. For purposes of measuring dependable capability, the 162 MW Glacier Hills Wind Park has a dependable capability of 32 MW and the 145 MW Blue Sky Green Field wind project has a dependable capability of 29 MW. |
Estimate | Actual | ||||||||||
2012 | 2011 | 2010 | 2009 | ||||||||
Coal | 48.6 | % | 54.2 | % | 53.9 | % | 52.8 | % | |||
Wind | 2.0 | % | 1.0 | % | 1.0 | % | 1.2 | % | |||
Hydroelectric | 1.1 | % | 1.0 | % | 1.0 | % | 0.8 | % | |||
Natural Gas -Combined Cycle | 8.2 | % | 6.6 | % | 8.4 | % | 7.6 | % | |||
Natural Gas/Oil-Peaking Units | 0.1 | % | 0.1 | % | 0.3 | % | 0.2 | % | |||
Net Generation | 60.0 | % | 62.9 | % | 64.6 | % | 62.6 | % | |||
Purchased Power | 40.0 | % | 37.1 | % | 35.4 | % | 37.4 | % | |||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
2011 | 2010 | 2009 | |||||||||
Coal | $ | 29.78 | $ | 26.44 | $ | 25.01 | |||||
Natural Gas - Combined Cycle | $ | 38.02 | $ | 43.14 | $ | 51.67 | |||||
Natural Gas/Oil - Peaking Units | $ | 119.83 | $ | 97.36 | $ | 121.18 | |||||
Purchased Power | $ | 42.79 | $ | 43.11 | $ | 42.21 |
12 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
Year | Annual Tonnage | |
(Thousands) | ||
2012 | 9,868 | |
2013 | 6,205 | |
2014 | 3,270 |
13 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
Year | MW | |
2012 | 1,440 | |
2013 | 1,269 | |
2014 | 1,269 | |
2015 | 1,269 | |
2016 | 1,269 |
14 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
SELECTED CONSOLIDATED ELECTRIC UTILITY OPERATING DATA | |||||||||||||||||||
Year Ended December 31 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||
Operating Revenues (Millions) | |||||||||||||||||||
Residential | $ | 1,159.2 | $ | 1,114.3 | $ | 977.6 | $ | 962.5 | $ | 915.5 | |||||||||
Small Commercial/Industrial | 1,006.9 | 922.2 | 860.3 | 869.7 | 840.6 | ||||||||||||||
Large Commercial/Industrial | 763.7 | 677.1 | 599.4 | 646.3 | 664.2 | ||||||||||||||
Other - Retail | 22.9 | 21.9 | 21.2 | 20.8 | 19.2 | ||||||||||||||
Total Retail Revenues | 2,952.7 | 2,735.5 | 2,458.5 | 2,499.3 | 2,439.5 | ||||||||||||||
Wholesale - Other | 154.0 | 134.6 | 116.7 | 77.7 | 83.5 | ||||||||||||||
Resale - Utilities | 69.5 | 40.4 | 47.5 | 37.7 | 110.7 | ||||||||||||||
Other Operating Revenues | 35.1 | 25.8 | 62.3 | 45.9 | 40.9 | ||||||||||||||
Total Operating Revenues | $ | 3,211.3 | $ | 2,936.3 | $ | 2,685.0 | $ | 2,660.6 | $ | 2,674.6 | |||||||||
MWh Sales (Thousands) | |||||||||||||||||||
Residential | 8,278.5 | 8,426.3 | 7,949.3 | 8,277.1 | 8,416.1 | ||||||||||||||
Small Commercial/Industrial | 8,795.8 | 8,823.3 | 8,571.6 | 9,023.7 | 9,185.4 | ||||||||||||||
Large Commercial/Industrial | 9,992.2 | 9,961.5 | 9,140.3 | 10,691.7 | 11,036.7 | ||||||||||||||
Other - Retail | 153.6 | 155.3 | 156.5 | 161.5 | 162.4 | ||||||||||||||
Total Retail Sales | 27,220.1 | 27,366.4 | 25,817.7 | 28,154.0 | 28,800.6 | ||||||||||||||
Wholesale - Other | 2,024.8 | 2,004.6 | 1,529.4 | 2,620.7 | 1,939.6 | ||||||||||||||
Resale - Utilities | 2,065.7 | 1,103.8 | 1,548.9 | 881.0 | 1,920.7 | ||||||||||||||
Total Sales | 31,310.6 | 30,474.8 | 28,896.0 | 31,655.7 | 32,660.9 | ||||||||||||||
Customers - End of Year (Thousands) | |||||||||||||||||||
Residential | 1,005.5 | 1,003.6 | 1,001.2 | 999.1 | 995.6 | ||||||||||||||
Small Commercial/Industrial | 113.8 | 113.5 | 113.1 | 112.6 | 110.8 | ||||||||||||||
Large Commercial/Industrial | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | ||||||||||||||
Other | 2.5 | 2.4 | 2.4 | 2.4 | 2.4 | ||||||||||||||
Total Customers | 1,122.5 | 1,120.2 | 1,117.4 | 1,114.8 | 1,109.5 | ||||||||||||||
Customers - Average (Thousands) | 1,121.0 | 1,118.7 | 1,115.5 | 1,111.8 | 1,105.5 | ||||||||||||||
Degree Days (a) | |||||||||||||||||||
Heating (6,615 Normal) | 6,633 | 6,183 | 6,825 | 7,073 | 6,508 | ||||||||||||||
Cooling (709 Normal) | 793 | 944 | 475 | 593 | 800 |
(a) | As measured at Mitchell International Airport in Milwaukee, Wisconsin. Normal degree days are based upon a 20-year moving average. |
15 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
16 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
17 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
SELECTED CONSOLIDATED GAS UTILITY OPERATING DATA | |||||||||||||||||||
Year Ended December 31 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||
Operating Revenues (Millions) | |||||||||||||||||||
Residential | $ | 737.4 | $ | 754.2 | $ | 856.6 | $ | 1,057.6 | $ | 934.3 | |||||||||
Commercial/Industrial | 369.9 | 373.1 | 442.9 | 572.4 | 485.4 | ||||||||||||||
Interruptible | 9.4 | 11.8 | 11.9 | 21.3 | 17.5 | ||||||||||||||
Total Retail Gas Sales | 1,116.7 | 1,139.1 | 1,311.4 | 1,651.3 | 1,437.2 | ||||||||||||||
Transported Gas | 49.2 | 48.0 | 44.8 | 47.2 | 48.4 | ||||||||||||||
Other Operating Revenues | 15.3 | 3.1 | 11.7 | (3.9 | ) | (4.4 | ) | ||||||||||||
Total Operating Revenues | $ | 1,181.2 | $ | 1,190.2 | $ | 1,367.9 | $ | 1,694.6 | $ | 1,481.2 | |||||||||
Therms Delivered (Millions) | |||||||||||||||||||
Residential | 776.8 | 741.2 | 803.4 | 841.8 | 791.7 | ||||||||||||||
Commercial/Industrial | 461.7 | 429.6 | 479.4 | 503.2 | 461.9 | ||||||||||||||
Interruptible | 16.0 | 19.4 | 19.1 | 23.0 | 22.7 | ||||||||||||||
Total Retail Gas Sales | 1,254.5 | 1,190.2 | 1,301.9 | 1,368.0 | 1,276.3 | ||||||||||||||
Transported Gas | 899.6 | 914.9 | 882.0 | 905.8 | 921.6 | ||||||||||||||
Total Therms Delivered | 2,154.1 | 2,105.1 | 2,183.9 | 2,273.8 | 2,197.9 | ||||||||||||||
Customers - End of Year (Thousands) | |||||||||||||||||||
Residential | 975.2 | 971.7 | 967.7 | 963.9 | 957.9 | ||||||||||||||
Commercial/Industrial | 91.5 | 91.3 | 91.1 | 91.0 | 90.2 | ||||||||||||||
Interruptible | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||
Transported Gas | 1.4 | 1.4 | 1.3 | 1.4 | 1.3 | ||||||||||||||
Total Customers | 1,068.2 | 1,064.5 | 1,060.2 | 1,056.4 | 1,049.5 | ||||||||||||||
Customers - Average (Thousands) | 1,064.1 | 1,060.2 | 1,055.6 | 1,050.2 | 1,042.8 | ||||||||||||||
Degree Days (a) | |||||||||||||||||||
Heating (6,615 Normal) | 6,633 | 6,183 | 6,825 | 7,073 | 6,508 |
(a) | As measured at Mitchell International Airport in Milwaukee, Wisconsin. Normal degree days are based upon a 20-year moving average. |
18 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
19 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
20 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
2011 | 2010 | 2009 | ||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
(Millions of Dollars) | ||||||||||||||||||||
Electric | ||||||||||||||||||||
Wisconsin - Retail | $ | 2,775.8 | 86.4 | % | $ | 2,568.3 | 87.5 | % | $ | 2,379.2 | 88.6 | % | ||||||||
Michigan - Retail | 212.0 | 6.6 | % | 193.0 | 6.6 | % | 141.6 | 5.3 | % | |||||||||||
FERC - Wholesale | 223.5 | 7.0 | % | 175.0 | 5.9 | % | 164.2 | 6.1 | % | |||||||||||
Total | 3,211.3 | 100.0 | % | 2,936.3 | 100.0 | % | 2,685.0 | 100.0 | % | |||||||||||
Gas - Wisconsin - Retail | 1,181.2 | 100.0 | % | 1,190.2 | 100.0 | % | 1,367.9 | 100.0 | % | |||||||||||
Steam - Wisconsin - Retail | 39.0 | 100.0 | % | 38.8 | 100.0 | % | 39.1 | 100.0 | % | |||||||||||
Total Utility Operating Revenues | $ | 4,431.5 | $ | 4,165.3 | $ | 4,092.0 |
21 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
22 | Wisconsin Energy Corporation |
ITEM 1. BUSINESS - (Cont'd) | 2011 Form 10-K |
Total Employees | Represented Employees | ||||
Utility Energy Segment | |||||
Wisconsin Electric | 4,133 | 2,685 | |||
Wisconsin Gas | 450 | 314 | |||
Total | 4,583 | 2,999 | |||
Non-Utility Energy Segment | 7 | — | |||
Other | 5 | — | |||
Total Employees | 4,595 | 2,999 |
Number of Employees | Expiration Date of Current Labor Agreement | |||
Wisconsin Electric | ||||
Local 2150 of International Brotherhood of Electrical Workers | 1,853 | August 15, 2012 | ||
Local 317 of International Union of Operating Engineers | 548 | March 31, 2013 | ||
Local 2006 Unit 5 of United Steel Workers | 159 | October 31, 2013 | ||
Local 510 of International Brotherhood of Electrical Workers | 125 | April 30, 2012 | ||
Total Wisconsin Electric | 2,685 | |||
Wisconsin Gas | ||||
Local 2150 of International Brotherhood of Electrical Workers | 85 | August 15, 2012 | ||
Local 2006 Unit 1 of United Steel Workers | 223 | November 1, 2012 | ||
Local 2006 Unit 3 of United Steel Workers | 6 | February 28, 2013 | ||
Total Wisconsin Gas | 314 | |||
Total Represented Employees | 2,999 |
23 | Wisconsin Energy Corporation |
2011 Form 10-K |
ITEM 1A. | RISK FACTORS |
24 | Wisconsin Energy Corporation |
ITEM 1A. RISK FACTORS - (Cont'd) | 2011 Form 10-K |
25 | Wisconsin Energy Corporation |
ITEM 1A. RISK FACTORS - (Cont'd) | 2011 Form 10-K |
26 | Wisconsin Energy Corporation |
ITEM 1A. RISK FACTORS - (Cont'd) | 2011 Form 10-K |
27 | Wisconsin Energy Corporation |
ITEM 1A. RISK FACTORS - (Cont'd) | 2011 Form 10-K |
28 | Wisconsin Energy Corporation |
ITEM 1A. RISK FACTORS - (Cont'd) | 2011 Form 10-K |
29 | Wisconsin Energy Corporation |
ITEM 1A. RISK FACTORS - (Cont'd) | 2011 Form 10-K |
30 | Wisconsin Energy Corporation |
ITEM 1A. RISK FACTORS - (Cont'd) | 2011 Form 10-K |
31 | Wisconsin Energy Corporation |
ITEM 1A. RISK FACTORS - (Cont'd) | 2011 Form 10-K |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
32 | Wisconsin Energy Corporation |
ITEM 2. PROPERTIES - (Cont'd) | 2011 Form 10-K |
No. of | Dependable | |||||||
Generating | Capability | |||||||
Name | Fuel | Units | In MW (a) | |||||
Coal-Fired Plants | ||||||||
South Oak Creek | Coal | 4 | 1,055 | |||||
Oak Creek Expansion | Coal | 2 | 1,056 | |||||
Presque Isle | Coal | 5 | 346 | |||||
Pleasant Prairie | Coal | 2 | 1,188 | |||||
Valley | Coal | 2 | 227 | |||||
Milwaukee County | Coal | 3 | 8 | |||||
Total Coal-Fired Plants | 18 | 3,880 | ||||||
Hydro Plants (13 in number) | 33 | 57 | ||||||
Port Washington Generating Station | Gas | 2 | 1,090 | |||||
Germantown Combustion Turbines | Gas/Oil | 5 | 345 | |||||
Concord Combustion Turbines | Gas/Oil | 4 | 400 | |||||
Paris Combustion Turbines | Gas/Oil | 4 | 400 | |||||
Other Combustion Turbines & Diesel | Gas/Oil | 2 | 5 | |||||
Byron Wind Turbines | Wind | 2 | — | |||||
Blue Sky Green Field | Wind | 88 | 29 | |||||
Glacier Hills | Wind | 90 | 32 | |||||
Total System | 248 | 6,238 |
(a) | Dependable capability is the net power output under average operating conditions with equipment in an average state of repair as of a given month in a given year. We are a summer peaking electric utility. The values are established by tests and may change slightly from year to year. |
33 | Wisconsin Energy Corporation |
2011 Form 10-K |
ITEM 3. | LEGAL PROCEEDINGS |
34 | Wisconsin Energy Corporation |
ITEM 3. LEGAL PROCEEDINGS - (Cont'd) | 2011 Form 10-K |
ITEM 4. | MINE SAFETY DISCLOSURES |
35 | Wisconsin Energy Corporation |
2011 Form 10-K |
• | Wisconsin Energy -- Chairman of the Board and Chief Executive Officer since May 2004. President since April 2003. |
• | Wisconsin Electric -- Chairman of the Board since May 2004. President and Chief Executive Officer since August 2003. |
• | Wisconsin Gas -- Chairman of the Board since May 2004. President and Chief Executive Officer since August 2003. |
• | Director of Joy Global, Inc. and Badger Meter, Inc. |
• | Director of Wisconsin Energy, Wisconsin Electric and Wisconsin Gas since 2003. |
• | Wisconsin Electric -- Senior Vice President since 2001. |
• | Wisconsin Gas -- Senior Vice President since July 2004. |
• | Wisconsin Energy -- Vice President since 2005. Controller since 2000. |
• | Wisconsin Electric -- Vice President since 2005. Controller since 2000. |
• | Wisconsin Gas -- Vice President since 2005. Controller since 1998. |
• | Wisconsin Energy -- General Counsel since March 2006. Executive Vice President since January 2006. |
• | Wisconsin Electric -- General Counsel since March 2006. Executive Vice President since January 2006. |
• | Wisconsin Gas -- General Counsel since March 2006. Executive Vice President since January 2006. |
• | Wisconsin Electric -- Senior Vice President since October 2011. |
• | Wisconsin Gas -- Senior Vice President since October 2011. |
• | Georgia Power -- Vice President - Community and Economic Development from 2007 to October 2011. Georgia Power is an affiliate of The Southern Company, a public utility holding company serving the southeastern United States. |
• | Wisconsin Energy -- Senior Vice President since April 2011. |
• | Wisconsin Electric -- Senior Vice President since April 2011. |
• | Wisconsin Gas -- Senior Vice President since April 2011. |
• | American Transmission Co. -- Vice President and General Counsel from 2009 to April 2011. |
• | NextEra Energy Resources -- Vice President from 2007 to 2009. |
• | Commissioner - Public Service Commission of Wisconsin -- 2001 to 2007. |
• | Wisconsin Energy -- Executive Vice President since May 2004. Chief Financial Officer since March 2011. |
• | Wisconsin Electric -- Executive Vice President since May 2004. Chief Operating Officer from October 2003 until February 2011. Chief Financial Officer since March 2011. |
• | Wisconsin Gas -- Executive Vice President since May 2004. Chief Financial Officer since March 2011. |
36 | Wisconsin Energy Corporation |
EXECUTIVE OFFICERS OF THE REGISTRANT - (Cont'd) | 2011 Form 10-K |
• | Wisconsin Energy -- Executive Vice President since May 2004. Chief Financial Officer from July 2003 until February 2011. |
• | Wisconsin Electric -- Executive Vice President since May 2004. Chief Financial Officer from July 2003 until February 2011. |
• | Wisconsin Gas -- Executive Vice President since May 2004. Chief Financial Officer from July 2003 until February 2011. |
• | Wisconsin Energy -- Senior Vice President and Chief Administrative Officer since May 2004. |
• | Wisconsin Electric -- Senior Vice President and Chief Administrative Officer since May 2004. |
• | Wisconsin Gas -- Senior Vice President and Chief Administrative Officer since May 2004. |
ITEM 5. | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
37 | Wisconsin Energy Corporation |
ITEM 5. | MARKET FOR RESITRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES - (Cont'd) | 2011 Form 10-K |
2011 | 2010 | ||||||||||||||||||||||
Quarter | High | Low | Dividend | High | Low | Dividend | |||||||||||||||||
First | $ | 31.01 | $ | 28.83 | $ | 0.26 | $ | 25.71 | $ | 23.44 | $ | 0.20 | |||||||||||
Second | $ | 31.89 | $ | 29.39 | 0.26 | $ | 26.90 | $ | 23.42 | 0.20 | |||||||||||||
Third | $ | 32.49 | $ | 27.00 | 0.26 | $ | 29.29 | $ | 24.71 | 0.20 | |||||||||||||
Fourth | $ | 35.38 | $ | 29.82 | 0.26 | $ | 30.51 | $ | 28.76 | 0.20 | |||||||||||||
Annual | $ | 35.38 | $ | 27.00 | $ | 1.04 | $ | 30.51 | $ | 23.42 | $ | 0.80 |
2011 | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||
(Millions of Dollars) | ||||||||||||||
October 1 - October 31 | 2,598 | $ | 31.45 | — | $ | 225.1 | ||||||||
November 1 - November 30 | 777,317 | $ | 32.25 | 777,317 | $ | 200.0 | ||||||||
December 1 - December 31 | — | $ | — | — | $ | 200.0 | ||||||||
Total | 779,915 | $ | 32.24 | 777,317 |
(a) | All shares reported during October 2011 were surrendered by employees to satisfy tax withholding obligations upon vesting of restricted stock. |
(b) | On May 5, 2011, Wisconsin Energy's Board of Directors authorized a share repurchase program for up to $300 million of our common stock through December 31, 2013. |
38 | Wisconsin Energy Corporation |
2011 Form 10-K |
ITEM 6. | SELECTED FINANCIAL DATA |
WISCONSIN ENERGY CORPORATION | |||||||||||||||||||
CONSOLIDATED SELECTED FINANCIAL AND STATISTICAL DATA | |||||||||||||||||||
Financial | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||
Year Ended December 31 | |||||||||||||||||||
Net income - Continuing Operations (Millions) | $ | 512.8 | $ | 454.4 | $ | 375.7 | $ | 355.1 | $ | 332.4 | |||||||||
Earnings per share - Continuing Operations | |||||||||||||||||||
Basic | $ | 2.20 | $ | 1.94 | $ | 1.61 | $ | 1.52 | $ | 1.42 | |||||||||
Diluted | $ | 2.18 | $ | 1.92 | $ | 1.59 | $ | 1.50 | $ | 1.40 | |||||||||
Dividends per share of common stock | $ | 1.04 | $ | 0.80 | $ | 0.675 | $ | 0.54 | $ | 0.50 | |||||||||
Operating revenues (Millions) | |||||||||||||||||||
Utility energy | $ | 4,431.5 | $ | 4,165.3 | $ | 4,092.0 | $ | 4,395.5 | $ | 4,190.9 | |||||||||
Non-utility energy | 435.1 | 320.2 | 163.1 | 126.2 | 75.7 | ||||||||||||||
Eliminations and Other | (380.2 | ) | (283.0 | ) | (154.2 | ) | (119.3 | ) | (62.3 | ) | |||||||||
Total operating revenues | $ | 4,486.4 | $ | 4,202.5 | $ | 4,100.9 | $ | 4,402.4 | $ | 4,204.3 | |||||||||
As of December 31 (Millions) | |||||||||||||||||||
Total assets | $ | 13,862.1 | $ | 13,059.8 | $ | 12,697.9 | $ | 12,617.8 | $ | 11,720.3 | |||||||||
Long-term debt (including current maturities) and capital lease obligations | $ | 4,646.9 | $ | 4,405.4 | $ | 4,171.5 | $ | 4,136.5 | $ | 3,525.3 | |||||||||
Common Stock Closing Price | $ | 34.96 | $ | 29.43 | $ | 24.92 | $ | 20.99 | $ | 24.36 | |||||||||
CONSOLIDATED SELECTED QUARTERLY FINANCIAL DATA (Unaudited) | |||||||||||||||||||
(Millions of Dollars, Except Per Share Amounts) (a) | |||||||||||||||||||
March | June | ||||||||||||||||||
Three Months Ended | 2011 | 2010 | 2011 | 2010 | |||||||||||||||
Operating revenues | $ | 1,328.7 | $ | 1,248.6 | $ | 991.7 | $ | 890.9 | |||||||||||
Operating income | 295.6 | 228.4 | 174.4 | 163.3 | |||||||||||||||
Income from Continuing Operations | 170.9 | 129.0 | 98.0 | 87.5 | |||||||||||||||
Income (loss) from Discontinued Operations | — | 0.7 | 11.5 | 1.2 | |||||||||||||||
Total Net Income | $ | 170.9 | $ | 129.7 | $ | 109.5 | $ | 88.7 | |||||||||||
Earnings per share of common stock (basic) (b) | |||||||||||||||||||
Continuing operations | $ | 0.73 | $ | 0.55 | $ | 0.42 | $ | 0.37 | |||||||||||
Discontinued operations | — | — | 0.05 | 0.01 | |||||||||||||||
Total earnings per share (basic) | $ | 0.73 | $ | 0.55 | $ | 0.47 | $ | 0.38 | |||||||||||
Earnings per share of common stock (diluted) (b) | |||||||||||||||||||
Continuing operations | $ | 0.72 | $ | 0.55 | $ | 0.41 | $ | 0.37 | |||||||||||
Discontinued operations | — | — | 0.05 | — | |||||||||||||||
Total earnings per share (diluted) | $ | 0.72 | $ | 0.55 | $ | 0.46 | $ | 0.37 | |||||||||||
September | December | ||||||||||||||||||
Three Months Ended | 2011 | 2010 | 2011 | 2010 | |||||||||||||||
Operating revenues | $ | 1,052.8 | $ | 973.2 | $ | 1,113.2 | $ | 1,089.8 | |||||||||||
Operating income | 224.3 | 203.0 | 193.0 | 215.7 | |||||||||||||||
Income from Continuing Operations | 129.8 | 112.3 | 114.1 | 125.6 | |||||||||||||||
Income (loss) from Discontinued Operations | — | (0.1 | ) | 1.9 | 0.3 | ||||||||||||||
Total Net Income | $ | 129.8 | $ | 112.2 | $ | 116.0 | $ | 125.9 | |||||||||||
Earnings per share of common stock (basic) (b) | |||||||||||||||||||
Continuing operations | $ | 0.56 | $ | 0.48 | $ | 0.49 | $ | 0.54 | |||||||||||
Discontinued operations | — | — | 0.01 | — | |||||||||||||||
Total earnings per share (basic) | $ | 0.56 | $ | 0.48 | $ | 0.50 | $ | 0.54 | |||||||||||
Earnings per share of common stock (diluted) (b) | |||||||||||||||||||
Continuing operations | $ | 0.55 | $ | 0.47 | $ | 0.49 | $ | 0.53 | |||||||||||
Discontinued operations | — | — | 0.01 | — | |||||||||||||||
Total earnings per share (diluted) | $ | 0.55 | $ | 0.47 | $ | 0.50 | $ | 0.53 | |||||||||||
(a) | Quarterly results of operations are not directly comparable because of seasonal and other factors. See Management's Discussion and Analysis of Financial Condition and Results of Operations. |
(b) | Quarterly earnings per share may not total to the amounts reported for the year because the computation is based on the weighted average common shares outstanding during each quarter. |
39 | Wisconsin Energy Corporation |
2011 Form 10-K |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION |
40 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Wisconsin Energy Corporation | 2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | ||||||||||||
Utility Energy | $ | 544.8 | $ | 564.0 | $ | 550.9 | ||||||
Non-Utility Energy | 348.9 | 252.4 | 120.1 | |||||||||
Corporate and Other | (6.4 | ) | (6.0 | ) | (10.7 | ) | ||||||
Total Operating Income | 887.3 | 810.4 | 660.3 | |||||||||
Equity in Earnings of Transmission Affiliate | 62.5 | 60.1 | 59.1 | |||||||||
Other Income and Deductions, net | 62.7 | 40.2 | 28.5 | |||||||||
Interest Expense, net | 235.8 | 206.4 | 156.7 | |||||||||
Income from Continuing Operations Before Income Taxes | 776.7 | 704.3 | 591.2 | |||||||||
Income Tax Expense | 263.9 | 249.9 | 215.5 | |||||||||
Income from Continuing Operations | 512.8 | 454.4 | 375.7 | |||||||||
Income from Discontinued Operations, Net of Tax | 13.4 | 2.1 | 6.7 | |||||||||
Net Income | $ | 526.2 | $ | 456.5 | $ | 382.4 | ||||||
Diluted Earnings Per Share | ||||||||||||
Continuing Operations | $ | 2.18 | $ | 1.92 | $ | 1.59 | ||||||
Discontinued Operations | 0.06 | 0.01 | 0.03 | |||||||||
Total Diluted Earnings Per Share | $ | 2.24 | $ | 1.93 | $ | 1.62 |
Utility Energy Segment | 2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | ||||||||||||
Operating Revenues | ||||||||||||
Electric | $ | 3,211.3 | $ | 2,936.3 | $ | 2,685.0 | ||||||
Gas | 1,181.2 | 1,190.2 | 1,367.9 | |||||||||
Other | 39.0 | 38.8 | 39.1 | |||||||||
Total Operating Revenues | 4,431.5 | 4,165.3 | 4,092.0 | |||||||||
Fuel and Purchased Power | 1,174.5 | 1,104.7 | 1,064.5 | |||||||||
Cost of Gas Sold | 728.7 | 751.5 | 912.0 | |||||||||
Gross Margin | 2,528.3 | 2,309.1 | 2,115.5 | |||||||||
Other Operating Expenses | ||||||||||||
Other Operation and Maintenance | 1,613.4 | 1,587.0 | 1,372.3 | |||||||||
Depreciation and Amortization | 257.0 | 251.4 | 313.1 | |||||||||
Property and Revenue Taxes | 113.1 | 105.1 | 109.9 | |||||||||
Total Operating Expenses | 3,886.7 | 3,799.7 | 3,771.8 | |||||||||
Amortization of Gain | — | 198.4 | 230.7 | |||||||||
Operating Income | $ | 544.8 | $ | 564.0 | $ | 550.9 |
41 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Electric Revenues and Gross Margin | MWh Sales | ||||||||||||||||||||
Electric Utility Operations | 2011 | 2010 | 2009 | 2011 | 2010 | 2009 | |||||||||||||||
(Millions of Dollars) | (Thousands, Except Degree Days) | ||||||||||||||||||||
Customer Class | |||||||||||||||||||||
Residential | $ | 1,159.2 | $ | 1,114.3 | $ | 977.6 | 8,278.5 | 8,426.3 | 7,949.3 | ||||||||||||
Small Commercial/Industrial | 1,006.9 | 922.2 | 860.3 | 8,795.8 | 8,823.3 | 8,571.6 | |||||||||||||||
Large Commercial/Industrial | 763.7 | 677.1 | 599.4 | 9,992.2 | 9,961.5 | 9,140.3 | |||||||||||||||
Other - Retail | 22.9 | 21.9 | 21.2 | 153.6 | 155.3 | 156.5 | |||||||||||||||
Total Retail | 2,952.7 | 2,735.5 | 2,458.5 | 27,220.1 | 27,366.4 | 25,817.7 | |||||||||||||||
Wholesale - Other | 154.0 | 134.6 | 116.7 | 2,024.8 | 2,004.6 | 1,529.4 | |||||||||||||||
Resale - Utilities | 69.5 | 40.4 | 47.5 | 2,065.7 | 1,103.8 | 1,548.9 | |||||||||||||||
Other Operating Revenues | 35.1 | 25.8 | 62.3 | — | — | — | |||||||||||||||
Total | 3,211.3 | 2,936.3 | 2,685.0 | 31,310.6 | 30,474.8 | 28,896.0 | |||||||||||||||
Fuel and Purchased Power | |||||||||||||||||||||
Fuel | 644.4 | 570.5 | 518.3 | ||||||||||||||||||
Purchased Power | 514.8 | 521.0 | 533.8 | ||||||||||||||||||
Total Fuel and Purchased Power | 1,159.2 | 1,091.5 | 1,052.1 | ||||||||||||||||||
Total Electric Gross Margin | $ | 2,052.1 | $ | 1,844.8 | $ | 1,632.9 | |||||||||||||||
Weather - Degree Days (a) | |||||||||||||||||||||
Heating (6,615 Normal) | 6,633 | 6,183 | 6,825 | ||||||||||||||||||
Cooling (709 Normal) | 793 | 944 | 475 |
(a) | As measured at Mitchell International Airport in Milwaukee, Wisconsin. Normal degree days are based upon a 20-year moving average. |
• | 2011 increase of approximately $198.4 million, reflecting the reduction of Point Beach bill credits to retail customers. For information on the bill credits, see Amortization of Gain below. |
• | Net pricing increases totaling $48.8 million, which includes rates related to our 2010 fuel recovery request that became effective March 25, 2010, and our request to review 2011 fuel costs that became effective April 29, 2011. For information on these rate orders, see Factors Affecting Results, Liquidity and Capital Resources -- Utility Rates and Regulatory Matters. |
42 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
• | Unfavorable weather as compared to the prior year that decreased electric revenues by an estimated $40.5 million. |
• | A $20.4 million increase in revenue from energy sold into the MISO Energy Markets, which was driven by increased MWh generation from our Oak Creek expansion units. |
• | Net economic growth that increased electric revenues by an estimated $16.2 million as compared to 2010. |
• | Higher MWh sales to our wholesale customers, which increased revenue by an estimated $10.4 million as compared to 2010. |
• | Net pricing increases totaling $121.0 million related to Wisconsin and Michigan rate orders that became effective in 2010. For information on these rate orders, see Factors Affecting Results, Liquidity and Capital Resources -- Utility Rates and Regulatory Matters. |
• | Favorable weather that increased electric revenues by an estimated $103.4 million as compared to 2009. |
• | Net economic growth that increased electric revenues by an estimated $43.0 million as compared to 2009. |
• | 2010 pricing increases totaling approximately $32.3 million, reflecting the reduction of Point Beach bill credits to retail customers. |
43 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Gas Utility Operations | 2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | ||||||||||||
Operating Revenues | $ | 1,181.2 | $ | 1,190.2 | $ | 1,367.9 | ||||||
Cost of Gas Sold | 728.7 | 751.5 | 912.0 | |||||||||
Gross Margin | $ | 452.5 | $ | 438.7 | $ | 455.9 |
Gross Margin | Therm Deliveries | ||||||||||||||||||||
Gas Utility Operations | 2011 | 2010 | 2009 | 2011 | 2010 | 2009 | |||||||||||||||
(Millions of Dollars) | (Millions, Except Degree Days) | ||||||||||||||||||||
Customer Class | |||||||||||||||||||||
Residential | $ | 290.2 | $ | 282.2 | $ | 291.5 | 776.8 | 741.2 | 803.4 | ||||||||||||
Commercial/Industrial | 101.5 | 95.8 | 104.6 | 461.7 | 429.6 | 479.4 | |||||||||||||||
Interruptible | 1.8 | 2.2 | 2.0 | 16.0 | 19.4 | 19.1 | |||||||||||||||
Total Retail | 393.5 | 380.2 | 398.1 | 1,254.5 | 1,190.2 | 1,301.9 | |||||||||||||||
Transported Gas | 52.6 | 51.3 | 49.6 | 899.6 | 914.9 | 882.0 | |||||||||||||||
Other Operating | 6.4 | 7.2 | 8.2 | — | — | — | |||||||||||||||
Total | $ | 452.5 | $ | 438.7 | $ | 455.9 | 2,154.1 | 2,105.1 | 2,183.9 | ||||||||||||
Weather - Degree Days (a) | |||||||||||||||||||||
Heating (6,615 Normal) | 6,633 | 6,183 | 6,825 |
(a) | As measured at Mitchell International Airport in Milwaukee, Wisconsin. Normal degree days are based upon a 20-year moving average. |
44 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
• | A full year's earnings for 2011, 2010 and 2009 for: |
◦ | PWGS 1; |
◦ | PWGS 2; |
◦ | the coal handling system for the Oak Creek expansion; and |
◦ | the water intake system for the Oak Creek expansion |
• | A full year's earnings for 2011 and approximately eleven months of earnings for 2010 for OC 1; and |
• | Approximately eleven and a half months of earnings for 2011 for OC 2. |
45 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Year Ended December 31, 2011 | |||||||||||||||
Port Washington | Oak Creek Expansion | All Other | Total | ||||||||||||
(Millions of Dollars) | |||||||||||||||
Operating Revenues | $ | 104.7 | $ | 320.5 | $ | 9.9 | $ | 435.1 | |||||||
Operation and Maintenance Expense | 0.8 | 4.6 | 8.3 | 13.7 | |||||||||||
Depreciation Expense | 19.8 | 51.0 | 1.7 | 72.5 | |||||||||||
Operating Income (Loss) | $ | 84.1 | $ | 264.9 | $ | (0.1 | ) | $ | 348.9 |
Year Ended December 31, 2010 | |||||||||||||||
Port Washington | Oak Creek Expansion | All Other | Total | ||||||||||||
(Millions of Dollars) | |||||||||||||||
Operating Revenues | $ | 104.6 | $ | 203.3 | $ | 12.3 | $ | 320.2 | |||||||
Operation and Maintenance Expense | 0.8 | 4.7 | 8.8 | 14.3 | |||||||||||
Depreciation Expense | 19.8 | 32.0 | 1.7 | 53.5 | |||||||||||
Operating Income | $ | 84.0 | $ | 166.6 | $ | 1.8 | $ | 252.4 |
Year Ended December 31, 2009 | |||||||||||||||
Port Washington | Oak Creek Expansion | All Other | Total | ||||||||||||
(Millions of Dollars) | |||||||||||||||
Operating Revenues | $ | 104.8 | $ | 48.0 | $ | 10.3 | $ | 163.1 | |||||||
Operation and Maintenance Expense | 0.9 | 5.2 | 7.7 | 13.8 | |||||||||||
Depreciation Expense | 19.8 | 7.8 | 1.6 | 29.2 | |||||||||||
Operating Income | $ | 84.1 | $ | 35.0 | $ | 1.0 | $ | 120.1 |
46 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Other Income and Deductions, net | 2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | ||||||||||||
AFUDC - Equity | $ | 59.4 | $ | 32.5 | $ | 16.0 | ||||||
Gain on Property Sales | 2.4 | 4.4 | 1.7 | |||||||||
Other, net | 0.9 | 3.3 | 10.8 | |||||||||
Total Other Income and Deductions, net | $ | 62.7 | $ | 40.2 | $ | 28.5 |
Interest Expense, net | 2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | ||||||||||||
Gross Interest Costs | $ | 262.5 | $ | 258.7 | $ | 235.4 | ||||||
Less: Capitalized Interest | 26.7 | 52.3 | 78.7 | |||||||||
Interest Expense, net | $ | 235.8 | $ | 206.4 | $ | 156.7 |
47 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Wisconsin Energy Corporation | 2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | ||||||||||||
Cash Provided by (Used in) | ||||||||||||
Operating Activities | $ | 993.4 | $ | 810.4 | $ | 628.9 | ||||||
Investing Activities | $ | (892.5 | ) | $ | (633.5 | ) | $ | (736.1 | ) | |||
Financing Activities | $ | (111.3 | ) | $ | (172.6 | ) | $ | 95.7 |
48 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Capital Expenditures | 2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | ||||||||||||
Utility | $ | 792.2 | $ | 687.0 | $ | 547.0 | ||||||
We Power | 31.2 | 109.3 | 253.2 | |||||||||
Other | 7.4 | 1.9 | 14.4 | |||||||||
Total Capital Expenditures | $ | 830.8 | $ | 798.2 | $ | 814.6 |
2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | |||||||||||
Net Increase in Debt | $ | 265.4 | $ | 71.1 | $ | 263.2 | |||||
Dividends on Common Stock | (242.0 | ) | (187.0 | ) | (157.8 | ) | |||||
Common Stock Repurchased, Net | (139.5 | ) | (65.7 | ) | (12.6 | ) | |||||
Other | 4.8 | 9.0 | 2.9 | ||||||||
Cash (Used in) Provided by Financing | $ | (111.3 | ) | $ | (172.6 | ) | $ | 95.7 |
49 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Company | Total Facility | Letters of Credit | Credit Available | Facility Expiration | ||||||||||
(Millions of Dollars) | ||||||||||||||
Wisconsin Energy | $ | 450.0 | $ | 0.4 | $ | 449.6 | December 2013 | |||||||
Wisconsin Electric | $ | 500.0 | $ | 5.9 | $ | 494.1 | December 2013 | |||||||
Wisconsin Gas | $ | 300.0 | $ | — | $ | 300.0 | December 2013 |
50 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
2011 | 2010 | |||||||||||||||
Capitalization Structure | Actual | Adjusted | Actual | Adjusted | ||||||||||||
(Millions of Dollars) | ||||||||||||||||
Common Equity | $ | 3,963.3 | $ | 4,213.3 | $ | 3,802.1 | $ | 4,052.1 | ||||||||
Preferred Stock of Subsidiary | 30.4 | 30.4 | 30.4 | 30.4 | ||||||||||||
Long-Term Debt (including current maturities) | 4,646.9 | 4,396.9 | 4,405.4 | 4,155.4 | ||||||||||||
Short-Term Debt | 669.9 | 669.9 | 657.9 | 657.9 | ||||||||||||
Total Capitalization | $ | 9,310.5 | $ | 9,310.5 | $ | 8,895.8 | $ | 8,895.8 | ||||||||
Total Debt | $ | 5,316.8 | $ | 5,066.8 | $ | 5,063.3 | $ | 4,813.3 | ||||||||
Ratio of Debt to Total Capitalization | 57.1 | % | 54.4 | % | 56.9 | % | 54.1 | % |
51 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Capital Expenditures | 2012 | 2013 | 2014 | |||||||||
(Millions of Dollars) | ||||||||||||
Utility | ||||||||||||
Renewable | $ | 160.6 | $ | 24.4 | $ | — | ||||||
Environmental | 71.0 | 43.3 | 38.8 | |||||||||
Base Spending | 473.2 | 611.0 | 586.4 | |||||||||
Total Utility | 704.8 | 678.7 | 625.2 | |||||||||
We Power | 20.1 | 41.4 | 16.5 | |||||||||
Other | 15.3 | 9.3 | 1.7 | |||||||||
Total | $ | 740.2 | $ | 729.4 | $ | 643.4 |
52 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations (a) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
(Millions of Dollars) | ||||||||||||||||||||
Long-Term Debt Obligations (b) | $ | 8,245.2 | $ | 273.1 | $ | 1,181.6 | $ | 891.1 | $ | 5,899.4 | ||||||||||
Capital Lease Obligations (c) | 295.1 | 38.9 | 82.3 | 88.6 | 85.3 | |||||||||||||||
Operating Lease Obligations (d) | 63.3 | 16.3 | 10.4 | 7.6 | 29.0 | |||||||||||||||
Purchase Obligations (e) | 13,473.1 | 974.1 | 1,446.1 | 1,072.4 | 9,980.5 | |||||||||||||||
Other Long-Term Liabilities (f) | 111.4 | 110.3 | 0.8 | 0.3 | — | |||||||||||||||
Total Contractual Obligations | $ | 22,188.1 | $ | 1,412.7 | $ | 2,721.2 | $ | 2,060.0 | $ | 15,994.2 |
(a) | The amounts included in the table are calculated using current market prices, forward curves and other estimates. |
(b) | Principal and interest payments on Long-Term Debt (excluding capital lease obligations). For the purpose of determining our contractual obligations and commercial commitments only, we assumed the Junior Notes would be retired in 2017 with the proceeds from the issuance of qualifying securities pursuant to the terms of the Replacement Capital Covenant (RCC). |
(c) | Capital Lease Obligations of Wisconsin Electric for power purchase commitments. |
(d) | Operating Lease Obligations for power purchase commitments and vehicle and rail car leases. |
(e) | Purchase Obligations under various contracts for the procurement of fuel, power, gas supply and associated transportation related to utility operations and for construction, information technology and other services for utility and We Power operations. This includes the power purchase agreement for Point Beach. |
(f) | Other Long-Term Liabilities includes the expected 2012 supplemental executive retirement plan obligation. For additional information on employer contributions to our benefit plans, see Note N -- Benefits in the Notes to Consolidated Financial Statements. |
53 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
54 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Wisconsin Energy Corporation | Millions of Dollars | |||
Pension trust funds | $ | 1,262.5 | ||
Other post-retirement benefits trust funds | $ | 255.4 |
55 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Unit Name | In Service | Cash Costs (a) | ||
PWGS 1 | July 2005 | $333 million | ||
PWGS 2 | May 2008 | $331 million | ||
OC 1 | February 2010 | $1,354 million | ||
OC 2 | January 2011 | $662 million |
(a) | Cash costs represent actual and current projected costs, excluding capitalized interest. Approximate costs for OC 1 and OC 2 include the cost of the settlement agreement with Bechtel adjusted for our ownership percentage. |
56 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
• | Initial lease term of 25 years with the potential for subsequent renewals at reduced rates; |
• | Cost recovery over a 25 year period on a mortgage basis amortization schedule; |
• | Imputed capital structure of 53% equity, 47% debt; |
• | Authorized rate of return of 12.7% after tax on equity; |
• | Fixed construction cost of PWGS 1 and PWGS 2 at $309.6 million and $280.3 million (2001 dollars) subject to escalation at the GDP inflation rate; |
• | Recovery of carrying costs during construction; and |
• | Ongoing PSCW supervisory authority over those lease terms and conditions specifically identified in the order, which do not include the key financial terms. |
• | Initial lease term of 30 years with the potential for subsequent renewals at reduced rates; |
• | Cost recovery over a 30 year period on a mortgage basis amortization schedule; |
• | Imputed capital structure of 55% equity, 45% debt; |
• | Authorized rate of return of 12.7% after tax on equity; |
• | Recovery of carrying costs during construction; and |
• | Ongoing PSCW supervisory authority over those lease terms and conditions specifically identified in the order, which do not include the key financial terms. |
• | Authorizes Wisconsin Electric to suspend the amortization of $148 million of regulatory costs during 2012, with amortization to begin again in 2013. |
• | Authorizes $148 million of carrying costs and depreciation on previously authorized air quality and renewable energy projects, effective January 1, 2012. |
• | Authorizes the refund of $26 million of net proceeds from Wisconsin Electric's settlement of the spent nuclear fuel litigation with the DOE. |
• | Authorizes Wisconsin Electric to reopen the rate proceeding in 2012 to address, for rates effective in 2013, all issues set aside during 2012, including the determination of the final approved construction costs for the Oak Creek expansion. |
• | Schedules a proceeding to establish a 2012 fuel cost plan. |
57 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
• | An increase of approximately $85.8 million (3.35%) in retail electric rates for Wisconsin Electric, which was partially offset by bill credits in 2010 and included a decrease in base fuel revenues of approximately $111.0 million, or a fuel rate component decrease of 13.8%; |
• | A decrease of approximately $2.0 million (0.35%) for natural gas service for Wisconsin Electric; |
• | An increase of approximately $5.7 million (0.70%) for natural gas service for Wisconsin Gas; and |
• | A decrease of approximately $0.4 million (1.65%) for Wisconsin Electric's Valley steam utility customers and a decrease of approximately $0.1 million (0.47%) for its Milwaukee County steam utility customers. |
• | New depreciation rates were incorporated into the new base rates approved in the rate case; |
• | Certain regulatory assets that were scheduled to be fully amortized over four years are instead being amortized over eight years; and |
• | Wisconsin Electric will continue to receive AFUDC on 100% of Construction Work in Progress for the environmental control projects at our Oak Creek Power Plant and at Edgewater Generating Unit 5, and on the Glacier Hills Wind Park. Wisconsin Electric sold its interest in Edgewater Generating Unit 5 in March 2011 and completed construction of Glacier Hills in December 2011. |
58 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
59 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
60 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
61 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
62 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
63 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
• | Repowering the Port Washington Power Plant from coal to natural gas-fired combined cycle units. |
• | Adding coal-fired units as part of the Oak Creek expansion that are the most thermally efficient coal units in our system. |
• | Increasing investment in energy efficiency and conservation. |
• | Adding renewable capacity and promoting increased participation in the Energy for Tomorrow® renewable energy program. |
• | Retirement of coal units 1-4 at the Presque Isle Power Plant. |
64 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
65 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
66 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
67 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
68 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
69 | Wisconsin Energy Corporation |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (Cont'd) | 2011 Form 10-K |
Pension Plan | Impact on | |
Actuarial Assumption | Annual Cost | |
(Millions of Dollars) | ||
0.5% decrease in discount rate and lump sum conversion rate | $4.7 | |
0.5% decrease in expected rate of return on plan assets | $5.7 |
OPEB Plan | Impact on | |
Actuarial Assumption | Annual Cost | |
(Millions of Dollars) | ||
0.5% decrease in discount rate | $2.3 | |
0.5% decrease in health care cost trend rate in all future years | $(3.1) | |
0.5% decrease in expected rate of return on plan assets | $1.2 |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
70 | Wisconsin Energy Corporation |
2011 Form 10-K |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
WISCONSIN ENERGY CORPORATION | |||||||||||
CONSOLIDATED INCOME STATEMENTS | |||||||||||
Year Ended December 31 | |||||||||||
2011 | 2010 | 2009 | |||||||||
(Millions of Dollars, Except Per Share Amounts) | |||||||||||
Operating Revenues | $ | 4,486.4 | $ | 4,202.5 | $ | 4,100.9 | |||||
Operating Expenses | |||||||||||
Fuel and purchased power | 1,169.7 | 1,099.9 | 1,059.7 | ||||||||
Cost of gas sold | 728.7 | 751.5 | 912.0 | ||||||||
Other operation and maintenance | 1,256.8 | 1,327.5 | 1,246.1 | ||||||||
Depreciation and amortization | 330.2 | 305.6 | 343.0 | ||||||||
Property and revenue taxes | 113.7 | 106.0 | 110.5 | ||||||||
Total Operating Expenses | 3,599.1 | 3,590.5 | 3,671.3 | ||||||||
Amortization of Gain | — | 198.4 | 230.7 | ||||||||
Operating Income | 887.3 | 810.4 | 660.3 | ||||||||
Equity in Earnings of Transmission Affiliate | 62.5 | 60.1 | 59.1 | ||||||||
Other Income and Deductions, net | 62.7 | 40.2 | 28.5 | ||||||||
Interest Expense, net | 235.8 | 206.4 | 156.7 | ||||||||
Income from Continuing Operations Before Income Taxes | 776.7 | 704.3 | 591.2 | ||||||||
Income Tax Expense | 263.9 | 249.9 | 215.5 | ||||||||
Income from Continuing Operations | 512.8 | 454.4 | 375.7 | ||||||||
Income from Discontinued Operations, Net of Tax | 13.4 | 2.1 | 6.7 | ||||||||
Net Income | $ | 526.2 | $ | 456.5 | $ | 382.4 | |||||
Earnings Per Share (Basic) | |||||||||||
Continuing Operations | $ | 2.20 | $ | 1.94 | $ | 1.61 | |||||
Discontinued Operations | 0.06 | 0.01 | 0.03 | ||||||||
Total Earnings Per Share (Basic) | $ | 2.26 | $ | 1.95 | $ | 1.64 | |||||
Earnings Per Share (Diluted) | |||||||||||
Continuing Operations | $ | 2.18 | $ | 1.92 | $ | 1.59 | |||||
Discontinued Operations | 0.06 | 0.01 | 0.03 | ||||||||
Total Earnings Per Share (Diluted) | $ | 2.24 | $ | 1.93 | $ | 1.62 | |||||
Weighted Average Common Shares Outstanding (Millions) | |||||||||||
Basic | 232.6 | 233.8 | 233.8 | ||||||||
Diluted | 235.4 | 236.7 | 235.9 | ||||||||
The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. |
71 | Wisconsin Energy Corporation |
2011 Form 10-K |
WISCONSIN ENERGY CORPORATION | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
December 31 | |||||||
ASSETS | |||||||
2011 | 2010 | ||||||
(Millions of Dollars) | |||||||
Property, Plant and Equipment | |||||||
In service | $ | 12,977.7 | $ | 11,590.8 | |||
Accumulated depreciation | (3,797.8 | ) | (3,624.0 | ) | |||
9,179.9 | 7,966.8 | ||||||
Construction work in progress | 921.3 | 1,569.9 | |||||
Leased facilities, net | 59.2 | 64.8 | |||||
Net Property, Plant and Equipment | 10,160.4 | 9,601.5 | |||||
Investments | |||||||
Equity investment in transmission affiliate | 349.7 | 330.5 | |||||
Other | 43.6 | 45.8 | |||||
Total Investments | 393.3 | 376.3 | |||||
Current Assets | |||||||
Cash and cash equivalents | 14.1 | 24.5 | |||||
Restricted cash | 45.5 | 8.3 | |||||
Accounts receivable, net of allowance for | |||||||
doubtful accounts of $61.7 and $58.1 | 349.4 | 344.6 | |||||
Income taxes receivable | 155.1 | 83.7 | |||||
Accrued revenues | 252.7 | 280.3 | |||||
Materials, supplies and inventories | 382.0 | 379.1 | |||||
Prepayments | 140.3 | 125.6 | |||||
Other | 87.1 | 85.0 | |||||
Total Current Assets | 1,426.2 | 1,331.1 | |||||
Deferred Charges and Other Assets | |||||||
Regulatory assets | 1,238.7 | 1,090.1 | |||||
Goodwill | 441.9 | 441.9 | |||||
Other | 201.6 | 218.9 | |||||
Total Deferred Charges and Other Assets | 1,882.2 | 1,750.9 | |||||
Total Assets | $ | 13,862.1 | $ | 13,059.8 | |||
The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. |
72 | Wisconsin Energy Corporation |
2011 Form 10-K |
WISCONSIN ENERGY CORPORATION | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
December 31 | |||||||
CAPITALIZATION AND LIABILITIES | |||||||
2011 | 2010 | ||||||
(Millions of Dollars) | |||||||
Capitalization | |||||||
Common equity | $ | 3,963.3 | $ | 3,802.1 | |||
Preferred stock of subsidiary | 30.4 | 30.4 | |||||
Long-term debt | 4,614.3 | 3,932.0 | |||||
Total Capitalization | 8,608.0 | 7,764.5 | |||||
Current Liabilities | |||||||
Long-term debt due currently | 32.6 | 473.4 | |||||
Short-term debt | 669.9 | 657.9 | |||||
Accounts payable | 325.7 | 315.4 | |||||
Accrued payroll and vacation | 105.9 | 88.3 | |||||
Other | 230.4 | 186.1 | |||||
Total Current Liabilities | 1,364.5 | 1,721.1 | |||||
Deferred Credits and Other Liabilities | |||||||
Regulatory liabilities | 902.0 | 883.8 | |||||
Deferred income taxes - long-term | 1,696.1 | 1,154.8 | |||||
Deferred revenue, net | 754.5 | 805.5 | |||||
Pension and other benefit obligations | 222.7 | 353.2 | |||||
Other long-term liabilities | 314.3 | 376.9 | |||||
Total Deferred Credits and Other Liabilities | 3,889.6 | 3,574.2 | |||||
Commitments and Contingencies (Note R) | |||||||
Total Capitalization and Liabilities | $ | 13,862.1 | $ | 13,059.8 | |||
The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. |
73 | Wisconsin Energy Corporation |
2011 Form 10-K |
WISCONSIN ENERGY CORPORATION | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
Year Ended December 31 | |||||||||||
2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | |||||||||||
Operating Activities | |||||||||||
Net income | $ | 526.2 | $ | 456.5 | $ | 382.4 | |||||
Reconciliation to cash | |||||||||||
Depreciation and amortization | 336.4 | 317.4 | 346.9 | ||||||||
Amortization of gain | — | (198.4 | ) | (230.7 | ) | ||||||
Deferred income taxes and investment tax credits, net | 430.6 | 104.9 | 187.4 | ||||||||
Deferred revenue | 3.5 | 100.8 | 201.7 | ||||||||
Contributions to qualified benefit plans | (277.4 | ) | — | (289.3 | ) | ||||||
Change in - Accounts receivable and accrued revenues | 30.1 | (50.4 | ) | 111.1 | |||||||
Inventories | (2.9 | ) | (1.0 | ) | (34.6 | ) | |||||
Other current assets | (20.5 | ) | 14.1 | 24.8 | |||||||
Accounts payable | 11.8 | 21.3 | (119.1 | ) | |||||||
Accrued income taxes, net | (87.4 | ) | (42.7 | ) | 43.4 | ||||||
Deferred costs, net | 25.9 | 25.9 | 46.2 | ||||||||
Other current liabilities | 44.1 | 22.0 | (11.7 | ) | |||||||
Other, net | (27.0 | ) | 40.0 | (29.6 | ) | ||||||
Cash Provided by Operating Activities | 993.4 | 810.4 | 628.9 | ||||||||
Investing Activities | |||||||||||
Capital expenditures | (830.8 | ) | (798.2 | ) | (814.6 | ) | |||||
Investment in transmission affiliate | (6.6 | ) | (5.2 | ) | (25.9 | ) | |||||
Proceeds from asset sales | 41.5 | 68.7 | 16.8 | ||||||||
Change in restricted cash | (37.2 | ) | 186.2 | 192.0 | |||||||
Other, net | (59.4 | ) | (85.0 | ) | (104.4 | ) | |||||
Cash Used in Investing Activities | (892.5 | ) | (633.5 | ) | (736.1 | ) | |||||
Financing Activities | |||||||||||
Exercise of stock options | 54.4 | 90.9 | 17.0 | ||||||||
Purchase of common stock | (193.9 | ) | (156.6 | ) | (29.6 | ) | |||||
Dividends paid on common stock | (242.0 | ) | (187.0 | ) | (157.8 | ) | |||||
Issuance of long-term debt | 720.0 | 530.0 | 261.5 | ||||||||
Retirement and repurchase of long-term debt | (466.6 | ) | (291.7 | ) | (221.1 | ) | |||||
Change in short-term debt | 12.0 | (167.2 | ) | 222.8 | |||||||
Other, net | 4.8 | 9.0 | 2.9 | ||||||||
Cash (Used in) Provided by Financing Activities | (111.3 | ) | (172.6 | ) | 95.7 | ||||||
Change in Cash and Cash Equivalents | (10.4 | ) | 4.3 | (11.5 | ) | ||||||
Cash and Cash Equivalents at Beginning of Year | 24.5 | 20.2 | 31.7 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 14.1 | $ | 24.5 | $ | 20.2 | |||||
The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. |
74 | Wisconsin Energy Corporation |
2011 Form 10-K |
WISCONSIN ENERGY CORPORATION | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMMON EQUITY | |||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||
Other | Stock | ||||||||||||||||||||||
Common | Other Paid | Retained | Comprehensive | Options | |||||||||||||||||||
Stock | In Capital | Earnings | Income (Loss) | Exercisable | Total | ||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||||
Balance - December 31, 2008 | $ | 2.3 | $ | 751.2 | $ | 2,584.2 | $ | (0.9 | ) | $ | 0.1 | $ | 3,336.9 | ||||||||||
Net income | 382.4 | 382.4 | |||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Hedging, net | 0.4 | 0.4 | |||||||||||||||||||||
Comprehensive income | — | — | 382.4 | 0.4 | — | 382.8 | |||||||||||||||||
Common stock cash | |||||||||||||||||||||||
dividends of $0.675 per share | (157.8 | ) | (157.8 | ) | |||||||||||||||||||
Exercise of stock options | 17.0 | 17.0 | |||||||||||||||||||||
Purchase of common stock | (29.6 | ) | (29.6 | ) | |||||||||||||||||||
Tax benefit from share based compensation | 6.3 | 6.3 | |||||||||||||||||||||
Stock-based compensation and other | 11.4 | — | (0.1 | ) | 11.3 | ||||||||||||||||||
Balance - December 31, 2009 | 2.3 | 756.3 | 2,808.8 | (0.5 | ) | — | 3,566.9 | ||||||||||||||||
Net income | 456.5 | 456.5 | |||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Hedging, net | 0.4 | 0.4 | |||||||||||||||||||||
Comprehensive income | — | — | 456.5 | 0.4 | — | 456.9 | |||||||||||||||||
Common stock cash | |||||||||||||||||||||||
dividends of $0.80 per share | (187.0 | ) | (187.0 | ) | |||||||||||||||||||
Exercise of stock options | 90.9 | 90.9 | |||||||||||||||||||||
Purchase of common stock | (156.6 | ) | (156.6 | ) | |||||||||||||||||||
Tax benefit from share based compensation | 21.9 | 21.9 | |||||||||||||||||||||
Stock-based compensation and other | 9.1 | 9.1 | |||||||||||||||||||||
Balance - December 31, 2010 | 2.3 | 721.6 | 3,078.3 | (0.1 | ) | — | 3,802.1 | ||||||||||||||||
Net income | 526.2 | 526.2 | |||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Hedging, net | 0.2 | 0.2 | |||||||||||||||||||||
Comprehensive income | — | — | 526.2 | 0.2 | — | 526.4 | |||||||||||||||||
Common stock cash | |||||||||||||||||||||||
dividends of $1.04 per share | (242.0 | ) | (242.0 | ) | |||||||||||||||||||
Exercise of stock options | 54.4 | 54.4 | |||||||||||||||||||||
Purchase of common stock | (193.9 | ) | (193.9 | ) | |||||||||||||||||||
Tax benefit from share based compensation | 11.9 | 11.9 | |||||||||||||||||||||
Stock-based compensation and other | 4.4 | 4.4 | |||||||||||||||||||||
Balance - December 31, 2011 | $ | 2.3 | $ | 598.4 | $ | 3,362.5 | $ | 0.1 | $ | — | $ | 3,963.3 | |||||||||||
The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. |
75 | Wisconsin Energy Corporation |
2011 Form 10-K |
WISCONSIN ENERGY CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF CAPITALIZATION | ||||||||
December 31 | ||||||||
2011 | 2010 | |||||||
(Millions of Dollars) | ||||||||
Common Equity (see accompanying statement) | $ | 3,963.3 | $ | 3,802.1 | ||||
Preferred Stock | ||||||||
Wisconsin Energy | ||||||||
$.01 par value; authorized 15,000,000 shares; none outstanding | — | — | ||||||
Wisconsin Electric | ||||||||
Six Per Cent. Preferred Stock - $100 par value; | ||||||||
authorized 45,000 shares; outstanding - 44,498 shares | 4.4 | 4.4 | ||||||
Serial preferred stock - | ||||||||
$100 par value; authorized 2,286,500 shares; 3.60% Series | ||||||||
redeemable at $101 per share; outstanding - 260,000 shares | 26.0 | 26.0 | ||||||
$25 par value; authorized 5,000,000 shares; none outstanding | — | — | ||||||
Total Preferred Stock | 30.4 | 30.4 | ||||||
Long-Term Debt | ||||||||
Debentures (unsecured) | 4.50% due 2013 | 300.0 | 300.0 | |||||
6.60% due 2013 | 45.0 | 45.0 | ||||||
6.00% due 2014 | 300.0 | 300.0 | ||||||
5.20% due 2015 | 125.0 | 125.0 | ||||||
6.25% due 2015 | 250.0 | 250.0 | ||||||
4.25% due 2019 | 250.0 | 250.0 | ||||||
2.95% due 2021 | 300.0 | — | ||||||
6-1/2% due 2028 | 150.0 | 150.0 | ||||||
5.625% due 2033 | 335.0 | 335.0 | ||||||
5.90% due 2035 | 90.0 | 90.0 | ||||||
5.70% due 2036 | 300.0 | 300.0 | ||||||
6-7/8% due 2095 | 100.0 | 100.0 | ||||||
Notes (secured, nonrecourse) | 4.81% effective rate due 2030 | 2.0 | 2.0 | |||||
4.91% due 2011-2030 | 131.2 | 135.4 | ||||||
5.209% due 2011-2030 | 245.4 | 251.9 | ||||||
4.673% due 2011-2031 | 202.3 | — | ||||||
6.00% due 2011-2033 | 145.5 | 148.7 | ||||||
6.09% due 2030-2040 | 275.0 | 275.0 | ||||||
5.848% due 2031-2041 | 215.0 | — | ||||||
Notes (unsecured) | 6.50% due 2011 | — | 450.0 | |||||
6.51% due 2013 | 30.0 | 30.0 | ||||||
6.94% due 2028 | 50.0 | 50.0 | ||||||
0.504% variable rate due 2016 (a) | 67.0 | 67.0 | ||||||
0.504% variable rate due 2030 (a) | 80.0 | 80.0 | ||||||
Variable rate notes held by Wisconsin Electric | (147.0 | ) | (147.0 | ) | ||||
6.20% due 2033 | 200.0 | 200.0 | ||||||
Junior Notes (unsecured) | 6.25% due 2067 | 500.0 | 500.0 | |||||
Obligations under capital leases | 132.4 | 141.9 | ||||||
Unamortized discount, net and other | (26.9 | ) | (24.5 | ) | ||||
Long-term debt due currently | (32.6 | ) | (473.4 | ) | ||||
Total Long-Term Debt | 4,614.3 | 3,932.0 | ||||||
Total Capitalization | $ | 8,608.0 | $ | 7,764.5 |
76 | Wisconsin Energy Corporation |
2011 Form 10-K |
• | Utility Energy Segment -- Consisting of Wisconsin Electric and Wisconsin Gas, engaged primarily in the generation of electricity and the distribution of electricity and natural gas; and |
• | Non-Utility Energy Segment -- Consisting primarily of We Power, engaged principally in the design, development, construction and ownership of electric power generating facilities for long-term lease to Wisconsin Electric. |
77 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Other Income and Deductions, net | 2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | ||||||||||||
AFUDC - Equity | $ | 59.4 | $ | 32.5 | $ | 16.0 | ||||||
Gain on Property Sales | 2.4 | 4.4 | 1.7 | |||||||||
Other, net | 0.9 | 3.3 | 10.8 | |||||||||
Total Other Income and Deductions, net | $ | 62.7 | $ | 40.2 | $ | 28.5 |
Property In Service | 2011 | 2010 | ||||||
(Millions of Dollars) | ||||||||
Utility Energy | $ | 9,817.7 | $ | 9,221.1 | ||||
Non-Utility Energy | 3,067.5 | 2,283.4 | ||||||
Other | 92.5 | 86.3 | ||||||
Total | $ | 12,977.7 | $ | 11,590.8 |
CWIP | 2011 | 2010 | ||||||
(Millions of Dollars) | ||||||||
Utility Energy | $ | 910.3 | $ | 806.9 | ||||
Non-Utility Energy | 8.9 | 761.3 | ||||||
Other | 2.1 | 1.7 | ||||||
Total | $ | 921.3 | $ | 1,569.9 |
78 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | |||||||||||
AFUDC - Debt | $ | 24.7 | $ | 13.5 | $ | 6.7 | |||||
AFUDC - Equity | $ | 59.4 | $ | 32.5 | $ | 16.0 |
79 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Materials, Supplies and Inventories | 2011 | 2010 | ||||||
(Millions of Dollars) | ||||||||
Fossil Fuel | $ | 169.2 | $ | 182.4 | ||||
Materials and Supplies | 114.1 | 105.2 | ||||||
Natural Gas in Storage | 98.7 | 91.5 | ||||||
Total | $ | 382.0 | $ | 379.1 |
80 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
2011 | 2010 | 2009 | |||
Risk-free interest rate | 0.2% - 3.4% | 0.2% - 3.9% | 0.3% - 2.5% | ||
Dividend yield | 3.9% | 3.7% | 3.0% | ||
Expected volatility | 19.0% | 20.3% | 25.9% | ||
Expected life (years) | 5.5 | 5.9 | 6.2 | ||
Expected forfeiture rate | 2.0% | 2.0% | 2.0% | ||
Weighted-average fair value | |||||
of our stock options granted | $3.17 | $3.36 | $4.01 |
81 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
82 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
2011 | 2010 | ||||||
(Millions of Dollars) | |||||||
Regulatory Assets | |||||||
Deferred unrecognized pension costs | $ | 647.8 | $ | 542.6 | |||
Deferred income tax related | 121.2 | 89.9 | |||||
Escrowed electric transmission costs | 118.3 | 138.0 | |||||
Deferred unrecognized OPEB costs | 102.9 | 85.7 | |||||
Deferred plant related -- capital lease | 73.2 | 77.1 | |||||
Deferred environmental costs | 48.5 | 56.7 | |||||
Other, net | 153.8 | 154.5 | |||||
Total regulatory assets | $ | 1,265.7 | $ | 1,144.5 | |||
Regulatory Liabilities | |||||||
Deferred cost of removal obligations | $ | 728.2 | $ | 723.9 | |||
Escrowed bad debt costs | 69.0 | 18.5 | |||||
Other, net | 118.7 | 156.7 | |||||
Total regulatory liabilities | $ | 915.9 | $ | 899.1 |
2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | |||||||||||
Income from Continuing Operations | $ | 512.8 | $ | 454.4 | $ | 375.7 | |||||
Income from Discontinued Edison Sault operations, net of tax | — | 0.7 | 1.5 | ||||||||
Income from Discontinued Water operations, net of tax | — | — | 0.3 | ||||||||
Income from Discontinued other operations, net of tax (a) | 13.4 | 1.4 | 4.9 | ||||||||
Net Income | $ | 526.2 | $ | 456.5 | $ | 382.4 |
(a) | Primarily relates to the favorable resolution of uncertain state and federal tax positions associated with our previously discontinued manufacturing business. |
83 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
2011 | 2010 | ||||||
(Millions of Dollars) | |||||||
Balance as of January 1 | $ | 52.6 | $ | 57.9 | |||
Liabilities Incurred | 0.6 | — | |||||
Liabilities Settled | (2.2 | ) | (2.5 | ) | |||
Accretion | 3.0 | 3.1 | |||||
Cash Flow Revisions | 1.5 | (5.9 | ) | ||||
Balance as of December 31 | $ | 55.5 | $ | 52.6 |
84 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Income Taxes | 2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | ||||||||||||
Current tax expense (benefit) | $ | (166.7 | ) | $ | 144.9 | $ | 28.1 | |||||
Deferred income taxes, net | 434.8 | 108.6 | 191.2 | |||||||||
Investment tax credit, net | (4.2 | ) | (3.6 | ) | (3.8 | ) | ||||||
Total Income Tax Expense | $ | 263.9 | $ | 249.9 | $ | 215.5 |
2011 | 2010 | 2009 | |||||||||||||||||||
Effective | Effective | Effective | |||||||||||||||||||
Income Tax Expense | Amount | Tax Rate | Amount | Tax Rate | Amount | Tax Rate | |||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||
Expected tax at statutory federal tax rates | $ | 271.8 | 35.0 | % | $ | 246.5 | 35.0 | % | $ | 206.9 | 35.0 | % | |||||||||
State income taxes net of federal tax benefit | 40.1 | 5.2 | % | 35.8 | 5.1 | % | 31.8 | 5.4 | % | ||||||||||||
AFUDC - Equity | (20.8 | ) | (2.7 | )% | (11.4 | ) | (1.6 | )% | (5.6 | ) | (0.9 | )% | |||||||||
Domestic production activities deduction | (12.6 | ) | (1.6 | )% | (12.6 | ) | (1.8 | )% | (8.3 | ) | (1.4 | )% | |||||||||
Production tax credits - wind | (8.7 | ) | (1.1 | )% | (7.2 | ) | (1.0 | )% | (7.1 | ) | (1.2 | )% | |||||||||
Investment tax credit restored | (4.2 | ) | (0.5 | )% | (3.6 | ) | (0.5 | )% | (3.8 | ) | (0.6 | )% | |||||||||
Other, net | (1.7 | ) | (0.3 | )% | 2.4 | 0.3 | % | 1.6 | 0.2 | % | |||||||||||
Total Income Tax Expense | $ | 263.9 | 34.0 | % | $ | 249.9 | 35.5 | % | $ | 215.5 | 36.5 | % |
85 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Deferred Tax Assets | 2011 | 2010 | ||||||
(Millions of Dollars) | ||||||||
Current | ||||||||
Employee benefits and compensation | $ | 14.6 | $ | 14.3 | ||||
Other | 57.1 | 33.5 | ||||||
Total Current Deferred Tax Assets | 71.7 | 47.8 | ||||||
Non-current | ||||||||
Future federal tax benefits | 328.5 | — | ||||||
Deferred revenues | 279.7 | 305.9 | ||||||
Employee benefits and compensation | 103.6 | 110.2 | ||||||
Property-related | 28.3 | 30.3 | ||||||
Construction advances | 25.4 | 118.3 | ||||||
Emission allowances | 1.0 | 2.6 | ||||||
Other | 34.0 | 30.8 | ||||||
Total Non-Current Deferred Tax Assets | 800.5 | 598.1 | ||||||
Total Deferred Tax Assets | $ | 872.2 | $ | 645.9 |
Deferred Tax Liabilities | 2011 | 2010 | ||||||
(Millions of Dollars) | ||||||||
Current | ||||||||
Prepaid items | $ | 50.1 | $ | 46.9 | ||||
Total Current Deferred Tax Liabilities | 50.1 | 46.9 | ||||||
Non-current | ||||||||
Property-related | 2,020.7 | 1,346.8 | ||||||
Employee benefits and compensation | 232.8 | 179.5 | ||||||
Investment in transmission affiliate | 129.2 | 112.4 | ||||||
Deferred transmission costs | 47.4 | 53.1 | ||||||
Other | 66.5 | 61.1 | ||||||
Total Non-current Deferred Tax Liabilities | 2,496.6 | 1,752.9 | ||||||
Total Deferred Tax Liabilities | $ | 2,546.7 | $ | 1,799.8 | ||||
Consolidated Balance Sheet Presentation | 2011 | 2010 | ||||||
Current Deferred Tax Asset | $ | 21.6 | $ | 0.9 | ||||
Non-Current Deferred Tax Liability | $ | 1,696.1 | $ | 1,154.8 |
86 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
2011 | 2010 | ||||||
(Millions of Dollars) | |||||||
Balance as of January 1 | $ | 29.5 | $ | 35.4 | |||
Additions based on tax positions related to the current year | — | 0.8 | |||||
Additions for tax positions of prior years | — | 10.4 | |||||
Reductions for tax positions of prior years | (13.9 | ) | (2.5 | ) | |||
Reductions due to statute of limitations | (2.5 | ) | (0.3 | ) | |||
Settlements during the period | (2.0 | ) | (14.3 | ) | |||
Balance as of December 31 | $ | 11.1 | $ | 29.5 |
87 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | |||||||||||
Performance units | $ | 24.1 | $ | 26.0 | $ | 14.0 | |||||
Stock options | 2.6 | 7.6 | 10.8 | ||||||||
Restricted stock | 1.8 | 1.5 | 1.0 | ||||||||
Share-based compensation expense | $ | 28.5 | $ | 35.1 | $ | 25.8 | |||||
Related Tax Benefit | $ | 11.4 | $ | 14.1 | $ | 10.3 |
Stock Options | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value (Millions) | |||||||||
Outstanding as of January 1, 2011 | 13,036,466 | $ | 20.81 | ||||||||||
Granted | 458,180 | $ | 29.35 | ||||||||||
Exercised | (2,855,896 | ) | $ | 19.07 | |||||||||
Forfeited | — | $ | — | ||||||||||
Outstanding as of December 31, 2011 | 10,638,750 | $ | 21.65 | 5.4 | $ | 141.6 | |||||||
Exercisable as of December 31, 2011 | 7,534,980 | $ | 21.14 | 4.5 | $ | 104.1 |
Options Outstanding | Options Exercisable | |||||||||||||||||
Weighted-Average | Weighted-Average | |||||||||||||||||
Range of Exercise Prices | Number of Options | Exercise Price | Remaining Contractual Life (Years) | Number of Options | Exercise Price | Remaining Contractual Life (Years) | ||||||||||||
$11.52 to $17.10 | 1,972,594 | $ | 16.07 | 2.3 | 1,972,594 | $ | 16.07 | 2.3 | ||||||||||
$19.74 to $21.11 | 3,586,456 | $ | 20.62 | 5.9 | 1,420,186 | $ | 19.88 | 4.3 | ||||||||||
$23.88 to $29.35 | 5,079,700 | $ | 24.54 | 6.2 | 4,142,200 | $ | 23.99 | 5.6 | ||||||||||
10,638,750 | $ | 21.65 | 5.4 | 7,534,980 | $ | 21.14 | 4.5 |
88 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Non-Vested Stock Options | Number of Options | Weighted- Average Fair Value | |||||
Non-Vested as of January 1, 2011 | 5,272,570 | $ | 4.27 | ||||
Granted | 458,180 | $ | 3.17 | ||||
Vested | (2,626,980 | ) | $ | 4.64 | |||
Forfeited | — | $ | — | ||||
Non-Vested as of December 31, 2011 | 3,103,770 | $ | 3.78 |
Restricted Shares | Number of Shares | Weighted-Average Market Price | |||||
Outstanding as of January 1, 2011 | 205,404 | ||||||
Granted | 74,850 | $ | 29.00 | ||||
Released | (83,452 | ) | $ | 18.82 | |||
Forfeited | (4,244 | ) | $ | 26.62 | |||
Outstanding as of December 31, 2011 | 192,558 |
89 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
90 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
(Millions of Dollars) | |||
2012 | $ | 20.3 | |
2013 | 396.3 | ||
2014 | 322.4 | ||
2015 | 399.5 | ||
2016 | 27.4 | ||
Thereafter | 3,375.5 | ||
Total | $ | 4,541.4 |
91 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Capital Lease Assets | 2011 | 2010 | ||||||
(Millions of Dollars) | ||||||||
Leased Facilities | ||||||||
Long-term power purchase commitment | $ | 140.3 | $ | 140.3 | ||||
Accumulated amortization | (81.1 | ) | (75.5 | ) | ||||
Total Leased Facilities | $ | 59.2 | $ | 64.8 |
(Millions of Dollars) | |||
2012 | $ | 38.9 | |
2013 | 40.4 | ||
2014 | 41.9 | ||
2015 | 43.5 | ||
2016 | 45.1 | ||
Thereafter | 85.4 | ||
Total Minimum Lease Payments | 295.2 | ||
Less: Estimated Executory Costs | (74.9 | ) | |
Net Minimum Lease Payments | 220.3 | ||
Less: Interest | (87.9 | ) | |
Present Value of Net | |||
Minimum Lease Payments | 132.4 | ||
Less: Due Currently | (12.4 | ) | |
$ | 120.0 |
92 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
2011 | 2010 | |||||||||||||
Interest | Interest | |||||||||||||
Short-Term Debt | Balance | Rate | Balance | Rate | ||||||||||
(Millions of Dollars, except for percentages) | ||||||||||||||
Commercial paper | $ | 669.9 | 0.27 | % | $ | 657.9 | 0.30 | % |
2011 | 2010 | ||||||
(Millions of Dollars, except for percentages) | |||||||
Maximum Short-Term Debt Outstanding | $ | 717.3 | $ | 821.0 | |||
Average Short-Term Debt Outstanding | $ | 505.1 | $ | 528.7 | |||
Weighted-Average Interest Rate | 0.25 | % | 0.32 | % |
93 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
December 31, 2011 | December 31, 2010 | ||||||||||||||
Derivative Asset | Derivative Liability | Derivative Asset | Derivative Liability | ||||||||||||
(Millions of Dollars) | |||||||||||||||
Natural Gas | $ | 2.1 | $ | 9.1 | $ | 2.5 | $ | 11.6 | |||||||
Fuel Oil | 0.3 | 0.1 | 4.4 | — | |||||||||||
FTRs | 5.7 | — | 5.9 | — | |||||||||||
Coal | 12.5 | — | 2.9 | — | |||||||||||
Total | $ | 20.6 | $ | 9.2 | $ | 15.7 | $ | 11.6 |
2011 | 2010 | ||||||||||
Volume | Gains (Losses) | Volume | Gains (Losses) | ||||||||
(Millions of Dollars) | (Millions of Dollars) | ||||||||||
Natural Gas | 71.8 million Dth | $ | (33.4 | ) | 83.2 million Dth | $ | (43.8 | ) | |||
Power | zero MWh | — | 234,720 MWh | (0.5 | ) | ||||||
Fuel Oil | 13.0 million gallons | 6.9 | 8.1 million gallons | (0.5 | ) | ||||||
FTRs | 23,718 MW | 12.5 | 25,234 MW | 19.2 | |||||||
Total | $ | (14.0 | ) | $ | (25.6 | ) |
94 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Recurring Fair Value Measures | As of December 31, 2011 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Millions of Dollars) | ||||||||||||||||
Assets: | ||||||||||||||||
Restricted Cash | $ | 45.5 | $ | — | $ | — | $ | 45.5 | ||||||||
Derivatives | 0.3 | 14.6 | 5.7 | 20.6 | ||||||||||||
Total | $ | 45.8 | $ | 14.6 | $ | 5.7 | $ | 66.1 | ||||||||
Liabilities: | ||||||||||||||||
Derivatives | $ | 8.2 | $ | 1.0 | $ | — | $ | 9.2 | ||||||||
Total | $ | 8.2 | $ | 1.0 | $ | — | $ | 9.2 |
Recurring Fair Value Measures | As of December 31, 2010 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Millions of Dollars) | ||||||||||||||||
Assets: | ||||||||||||||||
Restricted Cash | $ | 8.3 | $ | — | $ | — | $ | 8.3 | ||||||||
Derivatives | 4.5 | 5.3 | 5.9 | 15.7 | ||||||||||||
Total | $ | 12.8 | $ | 5.3 | $ | 5.9 | $ | 24.0 | ||||||||
Liabilities: | ||||||||||||||||
Derivatives | $ | 6.1 | $ | 5.5 | $ | — | $ | 11.6 | ||||||||
Total | $ | 6.1 | $ | 5.5 | $ | — | $ | 11.6 |
95 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
2011 | 2010 | ||||||
(Millions of Dollars) | |||||||
Balance as of January 1 | $ | 5.9 | $ | 5.8 | |||
Realized and unrealized gains (losses) | — | — | |||||
Purchases and issuances | 16.1 | 17.9 | |||||
Settlements | (16.3 | ) | (17.8 | ) | |||
Transfers in and/or out of Level 3 | — | — | |||||
Balance as of December 31 | $ | 5.7 | $ | 5.9 | |||
Change in unrealized gains (losses) relating to instruments still held as of December 31 | $ | — | $ | — |
2011 | 2010 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Financial Instruments | Amount | Value | Amount | Value | ||||||||||||
(Millions of Dollars) | ||||||||||||||||
Preferred stock, no redemption required | $ | 30.4 | $ | 25.1 | $ | 30.4 | $ | 23.5 | ||||||||
Long-term debt including current portion | $ | 4,541.4 | $ | 5,179.9 | $ | 4,288.0 | $ | 4,578.0 |
96 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Pension | OPEB | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
(Millions of Dollars) | |||||||||||||||
Change in Benefit Obligation | |||||||||||||||
Benefit Obligation at January 1 | $ | 1,222.8 | $ | 1,160.7 | $ | 368.3 | $ | 374.7 | |||||||
Service cost | 15.9 | 23.7 | 10.4 | 11.2 | |||||||||||
Interest cost | 67.6 | 68.4 | 20.8 | 21.2 | |||||||||||
Participants' contributions | — | — | 11.6 | 6.5 | |||||||||||
Plan amendments | — | — | 0.4 | 0.3 | |||||||||||
Actuarial loss (gain) | 98.0 | 53.4 | 7.6 | (23.8 | ) | ||||||||||
Curtailments | — | — | — | (1.0 | ) | ||||||||||
Gross benefits paid | (73.7 | ) | (83.4 | ) | (30.3 | ) | (21.8 | ) | |||||||
Federal subsidy on benefits paid | N/A | N/A | 0.9 | 1.0 | |||||||||||
Benefit Obligation at December 31 | $ | 1,330.6 | $ | 1,222.8 | $ | 389.7 | $ | 368.3 | |||||||
Change in Plan Assets | |||||||||||||||
Fair Value at January 1 | $ | 1,059.5 | $ | 1,026.0 | $ | 216.7 | $ | 202.6 | |||||||
Actual earnings on plan assets | 33.8 | 110.1 | 9.0 | 24.5 | |||||||||||
Employer contributions | 242.9 | 6.8 | 48.4 | 4.9 | |||||||||||
Participants' contributions | — | — | 11.6 | 6.5 | |||||||||||
Gross benefits paid | (73.7 | ) | (83.4 | ) | (30.3 | ) | (21.8 | ) | |||||||
Fair Value at December 31 | $ | 1,262.5 | $ | 1,059.5 | $ | 255.4 | $ | 216.7 | |||||||
Net Liability | $ | 68.1 | $ | 163.3 | $ | 134.3 | $ | 151.6 |
97 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Pension | OPEB | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
(Millions of Dollars) | |||||||||||||||
Other deferred charges | $ | — | $ | — | $ | 20.3 | $ | 38.3 | |||||||
Other long-term liabilities | 68.1 | 163.3 | 154.6 | 189.9 | |||||||||||
Net liability | $ | 68.1 | $ | 163.3 | $ | 134.3 | $ | 151.6 |
Pension | OPEB | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
(Millions of Dollars) | |||||||||||||||
Net actuarial loss | $ | 633.4 | $ | 521.0 | $ | 108.1 | $ | 98.9 | |||||||
Prior service costs (credits) | 14.4 | 16.7 | (6.1 | ) | (8.5 | ) | |||||||||
Transition obligation | — | — | 0.3 | 0.6 | |||||||||||
Total | $ | 647.8 | $ | 537.7 | $ | 102.3 | $ | 91.0 |
Pension | OPEB | ||||||||||||||||||||||
2011 | 2010 | 2009 | 2011 | 2010 | 2009 | ||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||||
Service cost | $ | 15.9 | $ | 23.7 | $ | 23.3 | $ | 10.4 | $ | 11.2 | $ | 8.7 | |||||||||||
Interest cost | 67.6 | 68.4 | 72.3 | 20.8 | 21.2 | 20.5 | |||||||||||||||||
Expected return on plan assets | (82.1 | ) | (78.2 | ) | (95.4 | ) | (16.9 | ) | (14.3 | ) | (13.6 | ) | |||||||||||
Amortization of: | |||||||||||||||||||||||
Transition obligation | — | — | — | 0.3 | 0.3 | 0.3 | |||||||||||||||||
Prior service cost (credit) | 2.2 | 2.2 | 2.2 | (1.9 | ) | (11.9 | ) | (12.6 | ) | ||||||||||||||
Actuarial loss | 34.0 | 26.8 | 18.9 | 6.2 | 10.8 | 8.9 | |||||||||||||||||
Curtailment (gain) | — | — | — | — | (0.4 | ) | — | ||||||||||||||||
Net Periodic Benefit Cost | $ | 37.6 | $ | 42.9 | $ | 21.3 | $ | 18.9 | $ | 16.9 | $ | 12.2 |
98 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Pension | OPEB | ||||||||||
2011 | 2010 | 2009 | 2011 | 2010 | 2009 | ||||||
Weighted-Average assumptions used to | |||||||||||
determine benefit obligations as of Dec. 31 | |||||||||||
Discount rate | 5.05% | 5.60% | 6.05% | 5.20% | 5.70% | 5.75% | |||||
Rate of compensation increase | 4.0% | 4.0% | 4.0% | N/A | N/A | N/A | |||||
Weighted-Average assumptions used to | |||||||||||
determine net cost for year ended Dec. 31 | |||||||||||
Discount rate | 5.60% | 6.05% | 6.50% | 5.70% | 5.75% | 6.50% | |||||
Expected return on plan assets | 7.25% | 7.25% | 8.25% | 7.50% | 7.50% | 8.25% | |||||
Rate of compensation increase | 4.0% | 4.0% | 4.0% | N/A | N/A | N/A |
Assumed health care cost trend rates as of Dec. 31 | 2011 | 2010 | 2009 | |||
Health care cost trend rate assumed for next year (Pre 65 / Post 65) | 8.0%/12% | 7.5%/16% | 7.5%/20% | |||
Rate that the cost trend rate gradually adjusts to | 5.0% | 5.0% | 5.0% | |||
Year that the rate reaches the rate it is assumed to remain at (Pre 65 / Post 65) | 2017/2017 | 2015/2016 | 2015/2016 |
1% Increase | 1% Decrease | ||||||
(Millions of Dollars) | |||||||
Effect on | |||||||
Post-retirement benefit obligation | $ | 31.9 | $ | (26.8 | ) | ||
Total of service and interest cost components | $ | 3.8 | $ | (3.1 | ) |
99 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
As of December 31, 2011 | ||||||||||||||||
Asset Category - Pension | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Millions of Dollars) | ||||||||||||||||
Cash and Cash Equivalents | $ | 8.5 | $ | — | $ | — | $ | 8.5 | ||||||||
Equities: | ||||||||||||||||
U.S. Equity | 455.1 | — | — | 455.1 | ||||||||||||
International Equity | 100.4 | 33.9 | — | 134.3 | ||||||||||||
Fixed Income | ||||||||||||||||
Short, Intermediate and Long-term Bonds (a) | ||||||||||||||||
U.S. Bonds | 76.9 | 502.8 | — | 579.7 | ||||||||||||
International Bonds | 40.9 | 44.0 | — | 84.9 | ||||||||||||
Total | $ | 681.8 | $ | 580.7 | $ | — | $ | 1,262.5 |
As of December 31, 2010 | ||||||||||||||||
Asset Category - Pension | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Millions of Dollars) | ||||||||||||||||
Cash and Cash Equivalents | $ | 21.1 | $ | — | $ | — | $ | 21.1 | ||||||||
Equities: | ||||||||||||||||
U.S. Equity | 217.2 | 247.5 | — | 464.7 | ||||||||||||
International Equity | 81.1 | 21.6 | — | 102.7 | ||||||||||||
Fixed Income | ||||||||||||||||
Short, Intermediate and Long-term Bonds (a) | ||||||||||||||||
U.S. Bonds | 49.7 | 361.5 | — | 411.2 | ||||||||||||
International Bonds | 31.8 | 28.0 | — | 59.8 | ||||||||||||
Total | $ | 400.9 | $ | 658.6 | $ | — | $ | 1,059.5 |
(a) | This category represents investment grade bonds of U.S. and foreign issuers denominated in U.S. dollars from diverse industries. |
As of December 31, 2011 | ||||||||||||||||
Asset Category - OPEB | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Millions of Dollars) | ||||||||||||||||
Cash and Cash Equivalents | $ | 2.4 | $ | — | $ | — | $ | 2.4 | ||||||||
Equities: | ||||||||||||||||
U.S. Equity | 113.6 | — | — | 113.6 | ||||||||||||
International Equity | 32.1 | 2.3 | — | 34.4 | ||||||||||||
Fixed Income: | ||||||||||||||||
Short, Intermediate and Long-term Bonds (a) | ||||||||||||||||
U.S. Bonds | 8.2 | 83.0 | — | 91.2 | ||||||||||||
International Bonds | 8.7 | 5.1 | — | 13.8 | ||||||||||||
Total | $ | 165.0 | $ | 90.4 | $ | — | $ | 255.4 |
100 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
As of December 31, 2010 | ||||||||||||||||
Asset Category - OPEB | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Millions of Dollars) | ||||||||||||||||
Cash and Cash Equivalents | $ | 1.5 | $ | — | $ | — | $ | 1.5 | ||||||||
Equities: | ||||||||||||||||
U.S. Equity | 41.6 | 80.1 | — | 121.7 | ||||||||||||
International Equity | 5.2 | 1.4 | — | 6.6 | ||||||||||||
Fixed Income: | ||||||||||||||||
Short, Intermediate and Long-term Bonds (a) | ||||||||||||||||
U.S. Bonds | 21.8 | 59.4 | — | 81.2 | ||||||||||||
International Bonds | 2.0 | 3.7 | — | 5.7 | ||||||||||||
Total | $ | 72.1 | $ | 144.6 | — | $ | 216.7 |
(a) | This category represents investment grade bonds of U.S. and foreign issuers denominated in U.S. dollars from diverse industries. |
Employer | Pension | |||||||||||
Contributions | Qualified | Non-Qualified | OPEB | |||||||||
(Millions of Dollars) | ||||||||||||
2009 | $ | 270.0 | $ | 5.8 | $ | 24.3 | ||||||
2010 | $ | — | $ | 6.8 | $ | 4.9 | ||||||
2011 | $ | 236.4 | $ | 6.5 | $ | 48.4 |
Year | Pension | Gross OPEB | Expected Medicare Part D Subsidy | |||||||||
(Millions of Dollars) | ||||||||||||
2012 | $ | 110.1 | $ | 20.2 | $ | (0.9 | ) | |||||
2013 | $ | 101.3 | $ | 20.8 | $ | — | ||||||
2014 | $ | 104.4 | $ | 22.2 | $ | — | ||||||
2015 | $ | 103.6 | $ | 23.5 | $ | — | ||||||
2016 | $ | 103.9 | $ | 24.7 | $ | — | ||||||
2017-2021 | $ | 535.2 | $ | 136.4 | $ | — |
101 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Maximum Potential | Liability | ||||
Future Payments | Outstanding | Recorded | |||
(Millions of Dollars) | |||||
Guarantees | $2.7 | $0.1 | $— | ||
Letters of Credit | $1.6 | $0.1 | $— |
Operating Segments | Eliminations | |||||||||||||||||||
Energy | Corporate & | & Reconciling | Total | |||||||||||||||||
Year Ended | Utility | Non-Utility | Other (a) | Items | Consolidated | |||||||||||||||
(Millions of Dollars) | ||||||||||||||||||||
December 31, 2011 | ||||||||||||||||||||
Operating Revenues (b) | $ | 4,431.5 | $ | 435.1 | $ | 0.9 | $ | (381.1 | ) | $ | 4,486.4 | |||||||||
Depreciation and Amortization | $ | 257.0 | $ | 72.5 | $ | 0.7 | $ | — | $ | 330.2 | ||||||||||
Operating Income (Loss) | $ | 544.8 | $ | 348.9 | $ | (6.4 | ) | $ | — | $ | 887.3 | |||||||||
Equity in Earnings of Unconsolidated Affiliates | $ | 62.5 | $ | — | $ | (0.9 | ) | $ | — | $ | 61.6 | |||||||||
Interest Expense, Net | $ | 110.0 | $ | 66.7 | $ | 59.5 | $ | (0.4 | ) | $ | 235.8 | |||||||||
Income Tax Expense (Benefit) | $ | 182.7 | $ | 112.8 | $ | (31.6 | ) | $ | — | $ | 263.9 | |||||||||
Income from Discontinued Operations, Net of Tax | $ | — | $ | — | $ | 13.4 | $ | — | $ | 13.4 | ||||||||||
Net Income (Loss) | $ | 376.3 | $ | 169.8 | $ | 525.9 | $ | (545.8 | ) | $ | 526.2 | |||||||||
Capital Expenditures | $ | 792.2 | $ | 31.2 | $ | 7.4 | $ | — | $ | 830.8 | ||||||||||
Total Assets (c) | $ | 13,433.5 | $ | 2,949.0 | $ | 4,694.8 | $ | (7,215.2 | ) | $ | 13,862.1 |
102 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Operating Segments | Eliminations | |||||||||||||||||||
Energy | Corporate & | & Reconciling | Total | |||||||||||||||||
Year Ended | Utility | Non-Utility | Other (a) | Items | Consolidated | |||||||||||||||
(Millions of Dollars) | ||||||||||||||||||||
December 31, 2010 | ||||||||||||||||||||
Operating Revenues (b) | $ | 4,165.3 | $ | 320.2 | $ | 0.5 | $ | (283.5 | ) | $ | 4,202.5 | |||||||||
Depreciation and Amortization | $ | 251.4 | $ | 53.5 | $ | 0.7 | $ | — | $ | 305.6 | ||||||||||
Operating Income (Loss) | $ | 564.0 | $ | 252.4 | $ | (6.0 | ) | $ | — | $ | 810.4 | |||||||||
Equity in Earnings of Unconsolidated Affiliates | $ | 60.1 | $ | — | $ | (0.2 | ) | $ | — | $ | 59.9 | |||||||||
Interest Expense, Net | $ | 117.2 | $ | 40.3 | $ | 52.8 | $ | (3.9 | ) | $ | 206.4 | |||||||||
Income Tax Expense (Benefit) | $ | 192.1 | $ | 84.9 | $ | (27.1 | ) | $ | — | $ | 249.9 | |||||||||
Income from Discontinued Operations, Net of Tax | $ | 0.7 | $ | — | $ | 1.4 | $ | — | $ | 2.1 | ||||||||||
Net Income (Loss) | $ | 354.2 | $ | 128.4 | $ | 456.4 | $ | (482.5 | ) | $ | 456.5 | |||||||||
Capital Expenditures | $ | 687.0 | $ | 109.3 | $ | 1.9 | $ | — | $ | 798.2 | ||||||||||
Total Assets (c) | $ | 11,997.4 | $ | 2,914.2 | $ | 5,075.9 | $ | (6,927.7 | ) | $ | 13,059.8 |
December 31, 2009 | ||||||||||||||||||||
Operating Revenues (b) | $ | 4,092.0 | $ | 163.1 | $ | 0.2 | $ | (154.4 | ) | $ | 4,100.9 | |||||||||
Depreciation and Amortization | $ | 313.1 | $ | 29.2 | $ | 0.7 | $ | — | $ | 343.0 | ||||||||||
Operating Income (Loss) | $ | 550.9 | $ | 120.1 | $ | (10.7 | ) | $ | — | $ | 660.3 | |||||||||
Equity in Earnings of Unconsolidated Affiliates | $ | 59.1 | $ | — | $ | (0.2 | ) | $ | — | $ | 58.9 | |||||||||
Interest Expense, Net | $ | 117.5 | $ | 14.7 | $ | 54.3 | $ | (29.8 | ) | $ | 156.7 | |||||||||
Income Tax Expense (Benefit) | $ | 186.7 | $ | 43.4 | $ | (14.6 | ) | $ | — | $ | 215.5 | |||||||||
Income from Discontinued Operations, Net of Tax | $ | 1.8 | $ | — | $ | 4.9 | $ | — | $ | 6.7 | ||||||||||
Net Income (Loss) | $ | 334.2 | $ | 63.8 | $ | 382.3 | $ | (397.9 | ) | $ | 382.4 | |||||||||
Capital Expenditures | $ | 547.0 | $ | 253.2 | $ | 14.4 | $ | — | $ | 814.6 | ||||||||||
Total Assets (c) | $ | 10,784.6 | $ | 2,754.1 | $ | 5,385.5 | $ | (6,226.3 | ) | $ | 12,697.9 |
(a) | Corporate & Other includes all other non-utility activities, primarily non-utility real estate investment and development by Wispark as well as interest on corporate debt. |
(b) | An elimination for intersegment revenues is included in Operating Revenues. This elimination is primarily between We Power and Wisconsin Electric. |
(c) | An elimination of $2,369.0 million, $1,785.9 million and $889.1 million is included in Total Assets as of December 31, 2011, 2010 and 2009, respectively, for all PTF-related activity between We Power and Wisconsin Electric. |
103 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Equity Investee | 2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | ||||||||||||
Services Provided | ||||||||||||
–ATC | $ | 10.8 | $ | 16.9 | $ | 22.3 | ||||||
Services Received | ||||||||||||
–ATC | $ | 219.2 | $ | 220.8 | $ | 196.0 |
Equity Investee | 2011 | 2010 | ||||||
(Millions of Dollars) | ||||||||
Services Provided | ||||||||
–ATC | $ | 0.7 | $ | 0.9 | ||||
Services Received | ||||||||
–ATC | $ | 18.1 | $ | 18.5 |
(Millions of Dollars) | |||
2012 | $ | 16.3 | |
2013 | 6.5 | ||
2014 | 3.9 | ||
2015 | 4.0 | ||
2016 | 3.7 | ||
Thereafter | 29.0 | ||
Total | $ | 63.4 |
104 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
105 | Wisconsin Energy Corporation |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
106 | Wisconsin Energy Corporation |
2011 Form 10-K |
107 | Wisconsin Energy Corporation |
2011 Form 10-K |
108 | Wisconsin Energy Corporation |
2011 Form 10-K |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 9B. | OTHER INFORMATION |
109 | Wisconsin Energy Corporation |
2011 Form 10-K |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OF THE REGISTRANT |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
110 | Wisconsin Energy Corporation |
2011 Form 10-K |
(a) | (b) | (c) | |||||||||
Number of securities | |||||||||||
Number of securities to | Weighted-average | remaining available for | |||||||||
be issued upon exercise | exercise price of | future issuance under equity | |||||||||
of outstanding options, | outstanding options, | compensation plans (excluding | |||||||||
Plan Category | warrants and rights | warrants and rights | securities reflected in column (a)) | ||||||||
Equity compensation plans approved by security holders | 10,638,750 | (1) | $ | 21.65 | 34,409,796 | ||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||
Total | 10,638,750 | $ | 21.65 | 34,409,796 | |||||||
(1) Represents options to purchase our common stock granted under our 1993 Omnibus Stock Incentive Plan, | |||||||||||
amended and restated effective May 5, 2011. |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
111 | Wisconsin Energy Corporation |
2011 Form 10-K |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
(a) 1. | FINANCIAL STATEMENTS AND REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM INCLUDED IN PART II OF THIS REPORT |
Description | Page in 10-K | ||
Consolidated Income Statements for the three years ended December 31, 2011. | |||
Consolidated Balance Sheets at December 31, 2011 and 2010. | |||
Consolidated Statements of Cash Flows for the three years ended December 31, 2011. | |||
Consolidated Statements of Common Equity for the three years ended December 31, 2011. | |||
Consolidated Statements of Capitalization at December 31, 2011 and 2010. | |||
Notes to Consolidated Financial Statements. | |||
Reports of Independent Registered Public Accounting Firm. |
2. | FINANCIAL STATEMENT SCHEDULES INCLUDED IN PART IV OF THIS REPORT |
Schedule I, Condensed Parent Company Financial Statements, including Income Statements and Cash Flows for the three years ended December 31, 2011 and Balance Sheets as of December 31, 2011 and 2010. | |
Schedule II, Valuation and Qualifying Accounts, for the three years ended December 31, 2011. | |
Other schedules are omitted because of the absence of conditions under which they are required or because the required information is given in the financial statements or notes thereto. |
3. | EXHIBITS AND EXHIBIT INDEX |
See the Exhibit Index included as the last part of this report, which is incorporated herein by reference. Each management contract and compensatory plan or arrangement required to be filed as an exhibit to this report is identified in the Exhibit Index by two asterisks (**) following the description of the exhibit. |
112 | Wisconsin Energy Corporation |
2011 Form 10-K |
Year Ended December 31 | |||||||||||
2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | |||||||||||
Other Income, Net | $ | 2.7 | $ | 4.2 | $ | 24.2 | |||||
Corporate Expense | 4.8 | 4.0 | 8.9 | ||||||||
Interest Expense | 61.8 | 53.8 | 50.2 | ||||||||
Loss before Taxes | (63.9 | ) | (53.6 | ) | (34.9 | ) | |||||
Income Tax Benefit | 30.8 | 25.9 | 14.7 | ||||||||
Loss after Taxes | (33.1 | ) | (27.7 | ) | (20.2 | ) | |||||
Equity in Subsidiaries' Continuing Operations | 545.9 | 482.1 | 395.9 | ||||||||
Income from Continuing Operations | 512.8 | 454.4 | 375.7 | ||||||||
Income from Discontinued Operations including Equity in Subsidiaries' Discontinued Operations | 13.4 | 2.1 | 6.7 | ||||||||
Net Income | $ | 526.2 | $ | 456.5 | $ | 382.4 | |||||
See accompanying notes to condensed parent company financial statements. |
113 | Wisconsin Energy Corporation |
2011 Form 10-K |
Year Ended December 31 | |||||||||||
2011 | 2010 | 2009 | |||||||||
(Millions of Dollars) | |||||||||||
Operating Activities | |||||||||||
Net income | $ | 526.2 | $ | 456.5 | $ | 382.4 | |||||
Reconciliation to cash | |||||||||||
Equity in subsidiaries' earnings | (545.9 | ) | (482.9 | ) | (397.7 | ) | |||||
Dividends and distributions from subsidiaries | 995.5 | 305.3 | 225.2 | ||||||||
Deferred income taxes, net | (350.9 | ) | (29.7 | ) | 28.2 | ||||||
Accrued income taxes, net | 363.4 | 41.9 | (15.5 | ) | |||||||
Change in - Other current assets | (0.1 | ) | 11.5 | 8.1 | |||||||
Change in - Other current liabilities | 8.9 | 3.0 | (0.4 | ) | |||||||
Change in - Accounts receivable | (18.7 | ) | 477.2 | 1.7 | |||||||
Other, net | (10.2 | ) | (1.4 | ) | 6.6 | ||||||
Cash Provided by Operating Activities | 968.2 | 781.4 | 238.6 | ||||||||
Investing Activities | |||||||||||
Proceeds from asset sales | — | 63.1 | — | ||||||||
Capital contributions to associated companies | (36.5 | ) | (64.5 | ) | (108.9 | ) | |||||
Capitalized interest and other | 2.4 | (57.3 | ) | (42.7 | ) | ||||||
Cash Used in Investing Activities | (34.1 | ) | (58.7 | ) | (151.6 | ) | |||||
Financing Activities | |||||||||||
Exercise of stock options | 54.4 | 90.9 | 17.0 | ||||||||
Purchase of common stock | (193.9 | ) | (156.6 | ) | (29.6 | ) | |||||
Dividends paid on common stock | (242.0 | ) | (187.0 | ) | (157.8 | ) | |||||
Issuance of long-term debt | — | — | 11.4 | ||||||||
Retirement of long-term debt | (450.0 | ) | (281.5 | ) | — | ||||||
Change in short-term debt | (116.5 | ) | (310.5 | ) | 74.0 | ||||||
Change in notes payable due associated companies | 3.9 | 106.1 | (6.6 | ) | |||||||
Other, net | 9.9 | 15.8 | 3.4 | ||||||||
Cash Used in Financing Activities | (934.2 | ) | (722.8 | ) | (88.2 | ) | |||||
Change in Cash and Cash Equivalents | (0.1 | ) | (0.1 | ) | (1.2 | ) | |||||
Cash and Cash Equivalents at Beginning of Year | 0.6 | 0.7 | 1.9 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 0.5 | $ | 0.6 | $ | 0.7 | |||||
See accompanying notes to condensed parent company financial statements. |
114 | Wisconsin Energy Corporation |
2011 Form 10-K |
December 31 | |||||||
2011 | 2010 | ||||||
(Millions of Dollars) | |||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 0.5 | $ | 0.6 | |||
Accounts and notes receivable from associated companies | 55.8 | 38.6 | |||||
Prepaid taxes and other | 2.2 | 93.8 | |||||
Total Current Assets | 58.5 | 133.0 | |||||
Property and Investments | |||||||
Investment in subsidiary companies | 4,906.9 | 5,242.2 | |||||
Other | 2.6 | 70.3 | |||||
Total Property and Investments | 4,909.5 | 5,312.5 | |||||
Deferred Charges and Other Assets | 433.3 | 104.0 | |||||
Total Assets | $ | 5,401.3 | $ | 5,549.5 | |||
Liabilities and Equity | |||||||
Current Liabilities | |||||||
Long-term debt due currently | $ | — | $ | 450.0 | |||
Short-term debt | 146.5 | 263.0 | |||||
Notes payable due associated companies | 136.8 | 132.9 | |||||
Accrued taxes and other | 327.3 | 34.3 | |||||
Total Current Liabilities | 610.6 | 880.2 | |||||
Long-term debt | 693.6 | 692.9 | |||||
Other Long-term liabilities | 133.8 | 174.3 | |||||
Stockholder's equity | 3,963.3 | 3,802.1 | |||||
Total Liabilities and Equity | $ | 5,401.3 | $ | 5,549.5 | |||
See accompanying notes to condensed parent company financial statements. |
115 | Wisconsin Energy Corporation |
2011 Form 10-K |
(Millions of Dollars) | |||
2012 | $ | — | |
2013 | — | ||
2014 | — | ||
2015 | — | ||
2016 | — | ||
Thereafter | 700.0 | ||
Total | $ | 700.0 |
116 | Wisconsin Energy Corporation |
SCHEDULE I - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
Maximum | Liability | ||||||||||
Potential | Outstanding | Recorded | |||||||||
Future | as of | as of | |||||||||
Payments | Dec 31, 2011 | Dec 31, 2011 | |||||||||
(Millions of Dollars) | |||||||||||
Wisconsin Energy Guarantees | |||||||||||
Utility | $ | 9.9 | $ | 9.9 | $ | — | |||||
Non-Utility Energy | 58.1 | — | — | ||||||||
Other | 0.3 | — | — | ||||||||
Total | $ | 68.3 | $ | 9.9 | $ | — | |||||
Letters of Credit | $ | 0.4 | $ | 0.4 | $ | — |
2011 | 2010 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Financial Instruments | Amount | Value | Amount | Value | ||||||||||||
(Millions of Dollars) | ||||||||||||||||
Long-term debt including current portion | $ | 700.0 | $ | 750.8 | $ | 1,150.0 | $ | 1,217.4 |
117 | Wisconsin Energy Corporation |
SCHEDULE I - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS - (Cont'd) | 2011 Form 10-K |
118 | Wisconsin Energy Corporation |
2011 Form 10-K |
SCHEDULE II | VALUATION AND QUALIFYING ACCOUNTS |
Allowance for Doubtful Accounts | Balance at Beginning of the Period | Expense | Deferral | Net Write-offs | Balance at End of the Period | |||||||||||||||
(Millions of Dollars) | ||||||||||||||||||||
December 31, 2011 | $ | 58.1 | $ | 85.8 | $ | (35.9 | ) | $ | (46.3 | ) | $ | 61.7 | ||||||||
December 31, 2010 | $ | 57.9 | $ | 86.2 | $ | (32.5 | ) | $ | (53.5 | ) | $ | 58.1 | ||||||||
December 31, 2009 | $ | 48.8 | $ | 54.6 | $ | 12.9 | $ | (58.4 | ) | $ | 57.9 |
119 | Wisconsin Energy Corporation |
2011 Form 10-K |
WISCONSIN ENERGY CORPORATION | ||
By | /s/GALE E. KLAPPA | |
Date: | February 28, 2012 | Gale E. Klappa, Chairman of the Board, President |
and Chief Executive Officer |
/s/GALE E. KLAPPA | February 28, 2012 | |
Gale E. Klappa, Chairman of the Board, President and Chief | ||
Executive Officer and Director -- Principal Executive Officer | ||
/s/FREDERICK D. KUESTER | February 28, 2012 | |
Frederick D. Kuester, Executive Vice President and Chief | ||
Financial Officer -- Principal Financial Officer | ||
/s/STEPHEN P. DICKSON | February 28, 2012 | |
Stephen P. Dickson, Vice President and | ||
Controller -- Principal Accounting Officer | ||
/s/JOHN F. BERGSTROM | February 28, 2012 | |
John F. Bergstrom, Director | ||
/s/BARBARA L. BOWLES | February 28, 2012 | |
Barbara L. Bowles, Director | ||
/s/PATRICIA W. CHADWICK | February 28, 2012 | |
Patricia W. Chadwick, Director | ||
/s/ROBERT A. CORNOG | February 28, 2012 | |
Robert A. Cornog, Director | ||
/s/CURT S. CULVER | February 28, 2012 | |
Curt S. Culver, Director | ||
/s/THOMAS J. FISCHER | February 28, 2012 | |
Thomas J. Fischer, Director | ||
/s/ULICE PAYNE, JR. | February 28, 2012 | |
Ulice Payne, Jr., Director | ||
/s/MARY ELLEN STANEK | February 28, 2012 | |
Mary Ellen Stanek, Director | ||
/s/FREDERICK P. STRATTON, JR. | February 28, 2012 | |
Frederick P. Stratton, Jr., Director |
120 | Wisconsin Energy Corporation |
2011 Form 10-K |
Number | Exhibit | ||
3 | Articles of Incorporation and By-laws | ||
3.1* | Restated Articles of Incorporation of Wisconsin Energy Corporation, as amended and restated effective June 12, 1995. (Exhibit (3)-1 to Wisconsin Energy Corporation's 06/30/95 Form 10-Q.) | ||
3.2* | Bylaws of Wisconsin Energy Corporation, as amended to May 5, 2005. (Exhibit 3.2(b) to Wisconsin Energy Corporation's 12/31/04 Form 10-K.) | ||
4 | Instruments defining the rights of security holders, including indentures | ||
4.1* | Reference is made to Article III of the Restated Articles of Incorporation and the Bylaws of Wisconsin Energy Corporation. (Exhibits 3.1 and 3.2 herein.) | ||
4.2* | Replacement Capital Covenant, dated May 11, 2007, by Wisconsin Energy Corporation for the benefit of certain debtholders named therein. (Exhibit 4.2 to Wisconsin Energy Corporation's 05/08/07 Form 8-K.) | ||
Indentures and Securities Resolutions: | |||
4.3* | Indenture for Debt Securities of Wisconsin Electric Power Company (the "Wisconsin Electric Indenture"), dated December 1, 1995. (Exhibit (4)-1 under File No. 1-1245, Wisconsin Electric's 12/31/95 Form 10-K.) | ||
4.4* | Securities Resolution No. 1 of Wisconsin Electric under the Wisconsin Electric Indenture, dated December 5, 1995. (Exhibit (4)-2 under File No. 1-1245, Wisconsin Electric's 12/31/95 Form 10-K.) | ||
4.5* | Securities Resolution No. 2 of Wisconsin Electric under the Wisconsin Electric Indenture, dated November 12, 1996. (Exhibit 4.44 to Wisconsin Energy Corporation's 12/31/96 Form 10-K.) | ||
4.6* | Securities Resolution No. 3 of Wisconsin Electric under the Wisconsin Electric Indenture, dated May 27, 1998. (Exhibit (4)-1 under File No. 1-1245, Wisconsin Electric's 06/30/98 Form 10-Q.) | ||
4.7* | Securities Resolution No. 4 of Wisconsin Electric under the Wisconsin Electric Indenture, dated November 30, 1999. (Exhibit 4.46 under File No. 1-1245, Wisconsin Energy Corporation's/Wisconsin Electric's 12/31/99 Form 10-K.) | ||
E-1 | Wisconsin Energy Corporation |
2011 Form 10-K |
Number | Exhibit | ||
4.8* | Securities Resolution No. 5 of Wisconsin Electric under the Wisconsin Electric Indenture, dated as of May 1, 2003. (Exhibit 4.47 filed with Post-Effective Amendment No. 1 to Wisconsin Electric's Registration Statement on Form S-3 (File No. 333-101054), filed May 6, 2003.) | ||
4.9* | Securities Resolution No. 6 of Wisconsin Electric under the Wisconsin Electric Indenture, dated as of November 17, 2004. (Exhibit 4.48 filed with Post-Effective Amendment No. 1 to Wisconsin Electric's Registration Statement on Form S-3 (File No. 333-113414), filed November 23, 2004.) | ||
4.10* | Securities Resolution No. 7 of Wisconsin Electric under the Wisconsin Electric Indenture, dated as of November 2, 2006. (Exhibit 4.1 to Wisconsin Electric's 11/02/06 Form 8-K.) | ||
4.11* | Securities Resolution No. 8 of Wisconsin Electric under the Wisconsin Electric Indenture, dated as of September 25, 2008. (Exhibit 4.1 to Wisconsin Electric's 09/25/08 Form 8-K.) | ||
4.12* | Securities Resolution No. 9 of Wisconsin Electric under the Wisconsin Electric Indenture, dated as of December 8, 2008. (Exhibit 4.1 to Wisconsin Electric's 12/08/08 Form 8-K.) | ||
4.13* | Securities Resolution No. 10 of Wisconsin Electric under the Wisconsin Electric Indenture, dated as of December 8, 2009. (Exhibit 4.1 to Wisconsin Electric's 12/08/09 Form 8-K.) | ||
4.14* | Securities Resolution No. 11 of Wisconsin Electric under the Wisconsin Electric Indenture, dated as of September 7, 2011. (Exhibit 4.1 to Wisconsin Electric's 09/07/11 Form 8-K.) | ||
4.15* | Indenture for Debt Securities of Wisconsin Energy Corporation (the "Wisconsin Energy Indenture"), dated as of March 15, 1999. (Exhibit 4.46 to Wisconsin Energy Corporation's 03/25/99 Form 8-K.) | ||
4.16* | Securities Resolution No. 1 of Wisconsin Energy under the Wisconsin Energy Indenture, dated as of March 16, 1999. (Exhibit 4.47 to Wisconsin Energy Corporation's 03/25/99 Form 8-K.) | ||
4.17* | Securities Resolution No. 2 of Wisconsin Energy under the Wisconsin Energy Indenture, dated as of March 23, 2001. (Exhibit 4.1 to Wisconsin Energy Corporation's 03/31/01 Form 10-Q.) | ||
4.18* | Securities Resolution No. 3 of Wisconsin Energy under the Wisconsin Energy Indenture, dated as of November 13, 2001. (Exhibit 4.52 to Wisconsin Energy Corporation's 12/31/01 Form 10-K.) | ||
4.19* | Securities Resolution No. 4 of Wisconsin Energy under the Wisconsin Energy Indenture, dated as of March 17, 2003. (Exhibit 4.12 filed with Post-Effective Amendment No. 1 to Wisconsin Energy Corporation's Registration Statement on Form S-3 (File No. 333-69592), filed March 20, 2003.) | ||
4.20* | Securities Resolution No. 5 of Wisconsin Energy under the Wisconsin Energy Indenture, dated as of May 8, 2007. (Exhibit 4.1 to Wisconsin Energy Corporation's 05/08/07 Form 8-K.) | ||
E-2 | Wisconsin Energy Corporation |
2011 Form 10-K |
Number | Exhibit | ||
Certain agreements and instruments with respect to unregistered long-term debt not exceeding 10 percent of the total assets of the Registrant and its subsidiaries on a consolidated basis have been omitted as permitted by related instructions. The Registrant agrees pursuant to Item 601(b)(4) of Regulation S-K to furnish to the Securities and Exchange Commission, upon request, a copy of all such agreements and instruments. | |||
10 | Material Contracts | ||
10.1* | Asset Sale Agreement by and among Wisconsin Electric Power Company, FPL Energy Point Beach, LLC, as Buyer, and FPL Group Capital Inc., as Buyer's Parent, dated December 19, 2006 (the "Asset Sale Agreement"). (Exhibit 2.1 to Wisconsin Energy Corporation's 12/31/06 Form 10-K.) | ||
10.2* | Letter Agreement between Wisconsin Electric Power Company and FPL Energy Point Beach, LLC, dated May 24, 2007, which effectively amends the Asset Sale Agreement. (Exhibit 2.1 to Wisconsin Energy Corporation's 06/30/07 Form 10-Q.) | ||
10.3* | Letter Agreement between Wisconsin Electric Power Company, FPL Energy Point Beach, LLC and FPL Group Capital, Inc., dated September 28, 2007, which amends the Asset Sale Agreement. (Exhibit 2.3 to Wisconsin Energy Corporation's 09/28/07 Form 8-K.) | ||
10.4* | Wisconsin Energy Corporation Supplemental Pension Plan, effective as of January 1, 2005. (Exhibit 10.9 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
10.5* | Service Agreement, dated April 25, 2000, between Wisconsin Electric Power Company and Wisconsin Gas Company (n/k/a Wisconsin Gas LLC). (Exhibit 10.32 to Wisconsin Energy Corporation's 12/31/00 Form 10-K.) | ||
10.6* | Service Agreement, dated December 29, 2000, between Wisconsin Electric Power Company and American Transmission Company LLC. (Exhibit 10.33 to Wisconsin Energy Corporation's 12/31/00 Form 10-K.) | ||
10.7* | Executive Deferred Compensation Plan of Wisconsin Energy Corporation, as amended and restated as of July 23, 2004 (including amendments approved effective as of November 2, 2005) (the "Legacy EDCP"). (Exhibit 10.2 to Wisconsin Energy Corporation's 09/30/05 Form 10-Q.)** See Note. | ||
10.8* | First Amendment to the Legacy EDCP, effective as of January 1, 2005. (Exhibit 10.12 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
10.9 | Wisconsin Energy Corporation Executive Deferred Compensation Plan, amended and restated effective as of September 8, 2009.** See Note. | ||
10.10* | Directors' Deferred Compensation Plan of Wisconsin Energy Corporation, as amended and restated as of May 1, 2004 (the "Legacy DDCP"). (Exhibit 10.3 to Wisconsin Energy Corporation's 06/30/04 Form 10-Q.)** See Note. | ||
10.11* | First Amendment to the Legacy DDCP, effective as of January 1, 2005. (Exhibit 10.15 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
E-3 | Wisconsin Energy Corporation |
2011 Form 10-K |
Number | Exhibit | ||
10.12* | Wisconsin Energy Corporation Directors' Deferred Compensation Plan, effective as of January 1, 2005. (Exhibit 10.16 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
10.13* | Wisconsin Energy Corporation Death Benefit Only Plan, as amended and restated as of July 22, 2010. (Exhibit 10.1 to Wisconsin Energy Corporation's 09/30/10 Form 10-Q.) ** See Note. | ||
10.14* | Wisconsin Energy Corporation Short-Term Performance Plan, as amended and restated effective as of January 1, 2010. (Exhibit 10.1 to Wisconsin Energy Corporation's 12/03/09 Form 8-K.)** See Note. | ||
10.15* | Wisconsin Energy Corporation Amended and Restated Executive Severance Policy, effective as of January 1, 2008. (Exhibit 10.18 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
10.16* | Restated Non-Qualified Trust Agreement by and between Wisconsin Energy Corporation and The Northern Trust Company dated February 11, 2004, regarding trust established to provide a source of funds to assist in meeting of the liabilities under various nonqualified deferred compensation plans made between Wisconsin Energy Corporation or its subsidiaries and various plan participants. (Exhibit 10.16 to Wisconsin Energy Corporation's 12/31/07 Form 10-K.)** See Note. | ||
10.17* | Affiliated Interest Agreement (Service Agreement), dated December 12, 2002, by and among Wisconsin Energy Corporation and its affiliates. (Exhibit 10.14 to Wisconsin Energy Corporation's 12/31/02 Form 10-K.) | ||
10.18* | Employment arrangement with Charles R. Cole, effective August 1, 1999. (Exhibit 10.3 to Wisconsin Energy Corporation's 12/31/00 Form 10-K.)** See Note. | ||
10.19* | Amendment of the employment arrangement with Charles R. Cole, dated December 11, 2008. (Exhibit 10.23 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.) | ||
10.20* | Amended and Restated Senior Officer Employment and Non-Compete Agreement between Wisconsin Energy Corporation and Gale E. Klappa, dated as of December 29, 2008. (Exhibit 10.25 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
10.21* | Amended and Restated Senior Officer Employment and Non-Compete Agreement between Wisconsin Energy Corporation and Allen L. Leverett, dated as of December 30, 2008. (Exhibit 10.26 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
10.22* | Amended and Restated Senior Officer Employment and Non-Compete Agreement between Wisconsin Energy Corporation and Frederick D. Kuester, dated as of December 30, 2008. (Exhibit 10.27 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
10.23* | Letter Agreement by and between Wisconsin Energy Corporation and James C. Fleming, dated as of November 23, 2005, which became effective January 3, 2006. (Exhibit 10.31 to Wisconsin Energy Corporation's 12/31/05 Form 10-K.)** See Note. | ||
E-4 | Wisconsin Energy Corporation |
2011 Form 10-K |
Number | Exhibit | ||
10.24* | Amendment to the Letter Agreement between Wisconsin Energy Corporation and James C. Fleming, dated December 23, 2008. (Exhibit 10.29 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
10.25* | Amended and Restated Senior Officer, Change in Control, Severance and Non-Compete Agreement between Wisconsin Energy Corporation and Kristine A. Rappé, dated as of December 30, 2008. (Exhibit 10.30 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
10.26* | Supplemental Pension Benefit Agreement between Wisconsin Energy Corporation and Stephen Dickson, effective May 23, 2001. (Exhibit 10.1 to Wisconsin Energy Corporation's 06/30/01 Form 10-Q.)** See Note. | ||
10.27* | Amendment to the Supplemental Pension Benefit Agreement between Wisconsin Energy Corporation and Stephen Dickson, dated December 29, 2008. (Exhibit 10.32 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
10.28* | Amended and Restated Non-Compete and Special Severance Tax Protection Agreement between Wisconsin Energy Corporation and Stephen P. Dickson, effective as of January 1, 2008. (Exhibit 10.33 to Wisconsin Energy Corporation's 12/31/08 Form 10-K.)** See Note. | ||
10.29* | Letter Agreement by and between Wisconsin Energy Corporation and Robert Garvin, dated January 31, 2011. (Exhibit 10.1 to Wisconsin Energy Corporation's 03/31/11 Form 10-Q.)** See Note. | ||
10.30* | Letter Agreement by and between Wisconsin Energy Corporation and Joseph Kevin Fletcher, dated as of August 17, 2011. (Exhibit 10.1 to Wisconsin Energy Corporation's 09/30/11 Form 10-Q.)** See Note. | ||
10.31* | 1998 Revised forms of award agreements under 1993 Omnibus Stock Incentive Plan for non-qualified stock option awards to non-employee directors, restricted stock awards and option awards. (Exhibit 10.11 to Wisconsin Energy Corporation's 12/31/98 Form 10-K.)** See Note. | ||
10.32* | 2001 Revised forms of award agreements under 1993 Omnibus Stock Incentive Plan for restricted stock awards, incentive stock option awards and non-qualified stock option awards. (Exhibit 10.3 to Wisconsin Energy Corporation's 03/31/01 Form 10-Q.)** See Note. | ||
10.33* | 1993 Omnibus Stock Incentive Plan, amended and restated effective as of May 5, 2011, as approved by the stockholders at the 2011 annual meeting of stockholders. (Exhibit 10.1 to Wisconsin Energy Corporation's 06/30/11 Form 10-Q.)** See Note. | ||
10.34* | 2005 Terms and Conditions Governing Non-Qualified Stock Option Award under 1993 Omnibus Stock Incentive Plan. (Exhibit 10.1 to Wisconsin Energy Corporation's 12/28/04 Form 8-K.)** See Note. | ||
10.35* | Terms and Conditions Governing Non-Qualified Stock Option Award under the 1993 Omnibus Stock Incentive Plan. (Exhibit 10.1 to Wisconsin Energy Corporation's 09/30/07 Form 10-Q.)** See Note. | ||
E-5 | Wisconsin Energy Corporation |
2011 Form 10-K |
Number | Exhibit | ||
10.36* | Terms and Conditions Governing Restricted Stock Awards under the 1993 Omnibus Stock Incentive Plan, approved December 3, 2009. (Exhibit 10.3 to Wisconsin Energy Corporation's 12/03/09 Form 8-K.)** See Note. | ||
10.37* | Terms and Conditions Governing Restricted Stock Awards under the 1993 Omnibus Stock Incentive Plan, approved December 1, 2010. (Exhibit 10.1 to Wisconsin Energy Corporation's 12/01/10 Form 8-K.)** See Note. | ||
10.38* | Wisconsin Energy Corporation Terms and Conditions Governing Director Restricted Stock Award under the 1993 Omnibus Stock Incentive Plan, amended and restated effective May 5, 2011. (Exhibit 10.1 to Wisconsin Energy Corporation's 01/19/12 Form 8-K.)** See Note. | ||
10.39* | Wisconsin Energy Corporation Performance Unit Plan, amended and restated effective as of January 1, 2010. (Exhibit 10.2 to Wisconsin Energy Corporation's 12/03/09 Form 8-K.)** See Note. | ||
10.40* | Form of Award of Performance Units under the Wisconsin Energy Corporation Performance Unit Plan. (Exhibit 10.2 to Wisconsin Energy Corporation's 12/06/04 Form 8-K.)** See Note. | ||
10.41* | Port Washington I Facility Lease Agreement between Port Washington Generating Station, LLC, as Lessor, and Wisconsin Electric Power Company, as Lessee, dated as of May 28, 2003. (Exhibit 10.7 to Wisconsin Electric Power Company's 06/30/03 Form 10-Q (File No. 001-01245).) | ||
10.42* | Port Washington II Facility Lease Agreement between Port Washington Generating Station, LLC, as Lessor, and Wisconsin Electric Power Company, as Lessee, dated as of May 28, 2003. (Exhibit 10.8 to Wisconsin Electric Power Company's 06/30/03 Form 10-Q (File No. 001-01245).) | ||
10.43* | Elm Road I Facility Lease Agreement between Elm Road Generating Station Supercritical, LLC, as Lessor, and Wisconsin Electric Power Company, as Lessee, dated as of November 9, 2004. (Exhibit 10.56 to Wisconsin Energy Corporation's 12/31/04 Form 10-K.) | ||
10.44* | Elm Road II Facility Lease Agreement between Elm Road Generating Station Supercritical, LLC, as Lessor, and Wisconsin Electric Power Company, as Lessee, dated as of November 9, 2004. (Exhibit 10.57 to Wisconsin Energy Corporation's 12/31/04 Form 10-K.) | ||
10.45* | Point Beach Nuclear Plant Power Purchase Agreement between FPL Energy Point Beach, LLC and Wisconsin Electric Power Company, dated as of December 19, 2006 (the "PPA"). (Exhibit 10.1 to Wisconsin Energy Corporation's 03/31/08 Form 10-Q.) | ||
10.46* | Letter Agreement between Wisconsin Electric Power Company and FPL Energy Point Beach, LLC dated October 31, 2007, which amends the PPA. (Exhibit 10.45 to Wisconsin Energy Corporation's 12/31/07 Form 10-K.) | ||
Note: Two asterisks (**) identify management contracts and executive compensation plans or arrangements required to be filed as exhibits pursuant to Item 15(b) of Form 10-K. | |||
E-6 | Wisconsin Energy Corporation |
2011 Form 10-K |
Number | Exhibit | ||
21 | Subsidiaries of the registrant | ||
21.1 | Subsidiaries of Wisconsin Energy Corporation. | ||
23 | Consents of experts and counsel | ||
23.1 | Deloitte & Touche LLP -- Milwaukee, WI, Consent of Independent Registered Public Accounting Firm. | ||
31 | Rule 13a-14(a) / 15d-14(a) Certifications | ||
31.1 | Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31.2 | Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
32 | Section 1350 Certifications | ||
32.1 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
32.2 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101 | Interactive Data File | ||
E-7 | Wisconsin Energy Corporation |
TABLE OF CONTENTS | |||
Page | |||
INTRODUCTION | 1 | ||
ARTICLE 1 DEFINITIONS | 1 | ||
ARTICLE 2 ELIGIBILITY AND PARTICIPATION | 7 | ||
2.1 | Selection by Committee | 7 | |
2.2 | Participation | 7 | |
2.3 | Enrollment Requirements | 8 | |
2.4 | Cessation of Participation | 8 | |
ARTICLE 3 DEFERRALS AND CONTRIBUTIONS | 9 | ||
3.1 | Base Annual Salary | 9 | |
3.2 | Annual or Long-Term Performance Awards | 9 | |
3.3 | Restricted Stock | 10 | |
3.4 | Performance Shares or Units | 10 | |
3.5 | Dividend Equivalents | 11 | |
3.6 | Newly-Eligible Employees | 11 | |
3.7 | Annual Company Contribution Amount | 11 | |
3.8 | Company Matching Amount | 12 | |
ARTICLE 4 ACCOUNTS | 13 | ||
4.1 | Establishment of Accounts | 13 | |
4.2 | Vesting | 14 | |
4.3 | Deemed Investments | 15 | |
4.4 | Taxes | 17 | |
ARTICLE 5 DISTRIBUTION OF ACCOUNT | 17 | ||
5.1 | Time for Distribution | 17 | |
5.2 | In-Service Payout | 18 | |
5.3 | Benefits Upon Retirement | 18 | |
5.4 | Benefits Upon Separation from Service | 18 | |
5.5 | Benefits Upon Death | 19 | |
5.6 | Changes to Form of Payment | 20 | |
5.7 | Unforeseeable Emergency | 21 | |
5.8 | Change in Control | 21 | |
5.9 | Discretion to Accelerate Distribution | 22 | |
ARTICLE 6 LEAVE OF ABSENCE | 22 | ||
ARTICLE 7 BENEFICIARY DESIGNATION | 23 | ||
7.1 | Beneficiary | 23 | |
7.2 | Beneficiary Designation; Change | 23 | |
7.3 | Acknowledgment | 23 | |
7.4 | No Beneficiary Designation | 23 | |
7.5 | Doubt as to Beneficiary | 23 | |
7.6 | Discharge of Obligations | 24 |
TABLE OF CONTENTS | |||
(cont) | |||
Page | |||
ARTICLE 8 TERMINATION, AMENDMENT OR MODIFICATION | 24 | ||
8.1 | Termination | 24 | |
8.2 | Amendment | 24 | |
8.3 | Effect of Payment | 25 | |
ARTICLE 9 ADMINISTRATION | 25 | ||
9.1 | Plan Administration | 25 | |
9.2 | Powers, Duties and Procedures | 25 | |
9.3 | Administration Upon Change In Control | 26 | |
9.4 | Agents | 26 | |
9.5 | Binding Effect of Decisions | 26 | |
9.6 | Indemnity of Committee | 26 | |
9.7 | Employer Information | 27 | |
9.8 | Coordination with Other Benefits | 27 | |
ARTICLE 10 CLAIMS PROCEDURES | 27 | ||
10.1 | Presentation of Claim | 27 | |
10.2 | Decision on Initial Claim | 27 | |
10.3 | Right to Review | 28 | |
10.4 | Decision on Review | 28 | |
10.5 | Form of Notice and Decision | 29 | |
10.6 | Legal Action | 29 | |
ARTICLE 11 TRUST | 29 | ||
11.1 | Establishment of the Trust | 29 | |
11.2 | Interrelationship of the Plan and the Trust | 29 | |
11.3 | Distributions From the Trust | 29 | |
ARTICLE 12 MISCELLANEOUS | 29 | ||
12.1 | Status of Plan | 29 | |
12.2 | Unsecured General Creditor | 30 | |
12.3 | Employer's Liability | 30 | |
12.4 | Nonassignability | 30 | |
12.5 | Not a Contract of Employment | 30 | |
12.6 | Furnishing Information | 30 | |
12.7 | Receipt and Release | 30 | |
12.8 | Incompetent | 31 | |
12.9 | Governing Law and Severability | 31 | |
12.10 | Notices and Communications | 31 | |
12.11 | Successors | 31 | |
12.12 | Insurance | 31 | |
12.13 | Legal Fees To Enforce Rights After Change in Control | 32 | |
12.14 | Terms | 32 | |
12.15 | Headings | 32 |
1.1 | “Account” shall mean a bookkeeping account established for the benefit of a Participant under Article 4 utilized solely to measure and determine the amounts credited under the Plan on behalf of a Participant or her Beneficiary. A Participant's Account may include one or more of the following sub-Accounts, as more fully described in Article 4. |
(a) | Company Contribution Account, |
(b) | Company Matching Account, |
(c) | Deferral Account, |
(d) | Dividend Deferral Account, |
(e) | Performance Share Account, |
(f) | Performance Unit Account, and |
(g) | Restricted Stock Account. |
1.2 | “Annual or Long-Term Performance Award” shall mean any compensation, in addition to Base Annual Salary relating to services performed during any Plan Year, whether or not paid in such Plan Year or included on the Form W-2 for such Plan Year, payable to a Participant under an Employer's annual performance award and cash incentive plans, including any long-term incentive plans as may be in existence from time to time, but excluding severance payments, non-qualified supplemental pension payments and any stock options or related gains, restricted stock, performance shares or units, dividends, dividend equivalents and any other equity-based award provided under a plan or arrangement of any Employer. |
1.3 | “Annual Company Contribution Amount” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.7. |
1.4 | “Annual Deferral Amount” shall mean the portion of a Participant's Base Annual Salary and/or Annual or Long-Term Performance Award that a Participant elects to defer in accordance with Article 3 for any one Plan Year. |
1.5 | “Annual Installment Method” shall mean an annual installment payment over a specified number of years as further described in Sections 5.3 and 5.4. To determine the value of the Participant's Account balance for calculating an installment payment, the Participant's Account balance shall be valued as of the close of business on the last business day of the Plan Year preceding the Plan Year for which payment is to be made. Notwithstanding the foregoing, when determining the Account balance for calculating the first installment payment for a Participant who is a “specified employee” within the meaning of Code Section 409A subject to a payment delay pursuant to Section 5.3 or 5.4, the Participant's Account balance shall be valued as of the close of business on the last business day of the calendar quarter preceding the date the first payment is scheduled to occur. Each annual installment shall be calculated by multiplying the Account balance determined above, as the case may be, by a fraction, the numerator of which is one, and the denominator of which is the remaining number of annual payments due to the Participant. For example, if a 10-year Annual Installment Method is specified, the first payment shall be 1/10 of the Account balance, valued as described herein. The following Plan Year, the payment shall be 1/9 of the Account balance, valued as described herein. |
1.6 | “Base Annual Salary” shall mean the annual cash compensation relating to services performed during a Plan Year, whether or not paid in, or included on the Form W-2 for, |
1.7 | “Beneficiary” shall mean one or more persons, trusts, estates or other entities designated by the Participant in accordance with Article 7 that are entitled to receive benefits under this Plan upon the death of a Participant. |
1.8 | “Board” shall mean the board of directors of the Company. |
1.9 | “Change in Control” shall mean, with respect to the Company, the occurrence of any one of the following dates, interpreted consistent with Treasury Regulation Section‑1.409A‑3(i)(5). |
(a) | Change in Ownership. The date any one Person, or more than one Person Acting as a Group, acquires ownership of stock of the Company that, together with stock held by such Person or Group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company. Notwithstanding the foregoing, for purposes of this paragraph, if any one Person, or more than one Person Acting as a Group, is considered to own more than 50% of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by the same Person or Persons is not considered to cause a Change in Control. |
(b) | Change in Effective Control. |
(i) | The date any one Person, or more than one Person Acting as a Group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons) ownership of stock of the Company possessing 30% or more of the total voting power of the stock of the Company. Notwithstanding the foregoing, for purposes of this subparagraph, if any one Person, or more than one Person Acting as a Group, is considered to effectively control the Company, the acquisition of additional control of the Company by the same Person or Persons is not considered to cause a Change in Control; or |
(ii) | The date a majority of the members of the Company's Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company's Board before the date of the appointment or election. |
(c) | Change in Ownership of a Substantial Portion of the Company's Assets. The date any one Person, or more than one Person Acting as a Group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons) assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions. For purposes of this paragraph (c), “gross fair market value” means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. Notwithstanding the foregoing, a transfer of assets is not treated as a Change in Control if the assets are transferred to: |
(i) | An entity that is controlled by the shareholders of the transferring corporation; |
(ii) | A shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to its stock; |
(iii) | An entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company; |
(iv) | A Person, or more than one Person Acting as a Group, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of the Company; or |
(v) | An entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a Person described in clause (iv). |
(d) | “Person” and “Acting as a Group.” |
(i) | For purposes of this Section, “Person” shall have the meaning set forth in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended. |
(ii) | For purposes of this Section, Persons shall be considered to be “Acting as a Group” if they are owners of a corporation that enter into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. If a Person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be Acting as a Group with the other shareholders only with respect to the ownership in that corporation before the transaction giving rise to the change and not with respect to the ownership interest in the |
1.10 | “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. |
1.11 | “Committee” shall mean an internal administrative committee appointed by the CEO to administer the Plan in accordance with Article 9. |
1.12 | “Company” shall mean Wisconsin Energy Corporation, a Wisconsin corporation, and any successor to all or substantially all of the Company's assets or business. |
1.13 | “Company Matching Amount” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.8. |
1.14 | “Election Form” shall mean the form or forms established from time to time by the Committee that a Participant completes, signs and returns to the Committee to make a deferral election, make or change a payment form election, and/or make or change an investment election. To the extent authorized by the Committee, such form may be electronic or set forth in some other media or format. |
1.15 | “Eligible Employee” shall mean an employee of an Employer who satisfies the eligibility requirements set forth in Article 2. |
1.16 | “Employer” shall mean the Company and/or any of its subsidiaries (now in existence or hereafter formed or acquired). |
1.17 | “Ending Valuation Date” shall mean the last business day of the Plan Year immediately preceding the Plan Year of distribution of a lump sum payment or final installment payment, as the case may be. |
1.18 | “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time. |
1.19 | “401(k) Plan” shall mean all tax-qualified defined contribution retirement plans maintained by the Employer that permit employee elective deferral contributions in accordance with Code Section 401(k). |
1.20 | “In-Service Payout” shall mean distribution of all or a portion of an Annual Deferral Amount (including the related Company Matching Amount, if any), as of a specified date elected by a Participant. |
1.21 | “Measurement Funds” shall mean the hypothetical investment funds available under the Plan, as provided in Section 4.3, to determine the earnings and losses credited to a Participant's Account. |
1.22 | “Participant” shall mean a current or former Eligible Employee who participates in the Plan in accordance with Article 2 and maintains an Account balance hereunder. A spouse or former spouse of a Participant shall not be treated as a Participant in the Plan or have an Account under the Plan, even if she has an interest in the Participant's Account as a result of applicable law or property settlements resulting from legal separation or divorce. |
1.23 | “Performance Shares” shall mean unvested shares with respect to Stock the amount of which vests based on achievement of certain performance criteria, all as determined under the applicable plan or arrangement of an Employer. |
1.24 | “Performance Share Amount” shall mean, for any grant of Performance Shares, the amount that would have been distributed to the Participant, but for an election to defer such amount under the Plan. |
1.25 | “Performance Units” shall mean unvested units representing the right to receive a cash payment whereby one unit has a value equal to one share of Stock, the amount of which vests based on achievement of certain performance criteria, all as determined and established pursuant to the applicable plan or arrangement of an Employer. |
1.26 | “Performance Unit Amount” shall mean, for any grant of Performance Units, the amount that would have been distributed to the Participant, but for an election to defer such amount under the Plan. |
1.27 | “Plan” shall mean the Wisconsin Energy Corporation Executive Deferred Compensation Plan, including any amendments adopted hereto. |
1.28 | “Plan Year” shall mean the calendar year. |
1.29 | “Restricted Stock” shall mean unvested shares of Stock which is restricted stock selected by the Compensation Committee, approved by the Board in its sole discretion, and awarded to the Participant under any Company stock incentive plan or arrangement. |
1.30 | “Restricted Stock Amount” shall mean, for any grant of Restricted Stock, the amount equal to the value of such Restricted Stock, calculated using the closing price for the Stock as of the day such Restricted Stock would otherwise vest (if a business day) or as of the next following business day. |
1.31 | “Retirement,” “Retire(s)” or “Retired” shall mean an Employee's Separation From Service on or after attaining age 55 for any reason other than a leave of absence or death. |
1.32 | “Separation from Service” shall mean the Participant's termination of employment with all Employers and other entities affiliated with the Company, voluntarily or involuntarily, for any reason other than on account of death, or as otherwise provided by the Department of Treasury in regulations promulgated under Code Section 409A. For purposes of the foregoing, whether an entity is affiliated with the Company shall be determined pursuant to the controlled group rules of Code Section 414, as modified by Code Section 409A. Unless the employment relationship is terminated earlier by the |
(a) | Except as provided in paragraph (b), the Participant's employment relationship with the Employer shall be treated as continuing intact while the individual is on a military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six months (or longer, if required by statute or contract). If the period of the leave exceeds six months and the Participant's right to reemployment is not provided either by statute or contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period. |
(b) | Where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where such impairment causes the Participant to be unable to perform the duties of her position of employment or any substantially similar position of employment, the Participant's relationship with the Employer shall be treated as continuing intact for a period of 29 months and will be deemed to terminate on the first date immediately following such 29 month period. |
1.33 | “Stock” shall mean Wisconsin Energy Corporation common stock. |
1.34 | “Trust” shall mean the fund created by the Wisconsin Energy Corporation Rabbi Trust Agreement dated December 1, 2000 between the Company and The Northern Trust Company, and as amended from time to time. |
1.35 | “Unforeseeable Emergency” shall mean, as determined by the Committee in its sole discretion, a severe financial hardship to the Participant resulting from (i) an illness or accident of the Participant, the Participant's spouse, the Participant's Beneficiary, or the Participant's dependent (as defined in Code Section 152, without regard to Code Section 152(b)(1), (b)(2), and (d)(1)(B)), (ii) loss of the Participant's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance), or (iii) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. |
2.1 | Selection by Committee. Participation in the Plan shall be limited to a select group of management and highly compensated employees of the Employer (as defined in ERISA Sections 201(2), 301(a)(3) and 401(a)(1)), as determined by the Committee in its sole discretion. From that group, the Committee shall select the Eligible Employees to participate in the Plan. The Committee may limit the types of deferrals (identified in Article 3) an Eligible Employee may make under the Plan. |
2.2 | Participation. To begin participation in the Plan, an Eligible Employee shall properly complete and timely submit an Election Form to the Committee in accordance with the |
2.3 | Enrollment Requirements. Election Forms shall be completed and filed with the Committee by the time periods set forth in Article 3 for the particular type of compensation elected for deferral or during such other enrollment period as the Committee determines in accordance with such Article. A Participant may change or revoke a deferral election any time before such election becomes irrevocable, which shall occur as of the applicable deadline specified in Article 3 unless the Committee establishes an earlier deadline. Unless the Committee determines otherwise, a new Election Form shall be required for each Plan Year in which a Participant wants to defer a type of compensation eligible for deferral. A Participant's Election Form shall specify the form of payment, which shall be paid at the times specified in Article 5. Beginning with the enrollment period held in 2008, the form of payment elected on the Participant's Election Form shall govern all amounts credited to her Account beginning in 2009 and shall apply to each subsequent Plan Year's deferrals, until changed on either a prospective or retroactive basis by the Participant pursuant to Section 5.6. Distribution elections made during the Code Section 409A transition period that relate to amounts deferred in Plan Years 2005, 2006, 2007 and 2008, as the case may be, shall be honored for such respective amounts, even if such amounts are not credited to a Participant's Account until a later Plan Year. |
2.4 | Cessation of Participation. |
(a) | The Committee shall have the sole discretionary authority to exclude a Participant from making further deferrals under the Plan with such exclusion becoming effective as of the first day of the immediately following Plan Year. Such Participant shall remain a Participant in the Plan until her Account balance is paid in full. |
(b) | Elective deferrals made by a Participant or Beneficiary who receives a distribution due to an Unforeseeable Emergency pursuant to Section 5.7 shall be cancelled due to such distribution if the Committee so decides in its discretion. In either event, the Participant (or Beneficiary, as applicable) shall remain a Participant in the Plan until her Account balance is paid in full. |
(c) | Notwithstanding anything in the Plan to the contrary, upon the earlier to occur of a Participant's Separation from Service or death, any outstanding deferral election shall be given effect to the extent any amounts covered by such election are paid after such event. Payment of deferred amounts shall be made pursuant to Article 5. |
3.1 | Base Annual Salary. |
(a) | For each Plan Year, a Participant may elect to defer up to 75% (in whole percentage) of her Base Annual Salary. Notwithstanding the foregoing, the Committee, in its sole discretion, may permit a Participant to elect to defer a fixed dollar amount of her Base Annual Salary; however such amount may not exceed 75% of her Base Annual Salary payable for such Plan Year. |
(b) | A Participant's Election Form with respect to the deferral of Base Annual Salary shall be filed with the Committee before the beginning of each Plan Year in which the Base Annual Salary is earned. |
(c) | Subject to Section 2.3, such deferral elections shall be irrevocable as of the first day of the Plan Year to which the Election Form relates. Elections for Participants are separate and independent elections from an election to defer compensation under the 401(k) Plan. |
3.2 | Annual or Long-Term Performance Awards. |
(a) | For each Plan Year, a Participant may elect to defer up to 75% (in whole percentage) of her Annual or Long-Term Performance Award. Notwithstanding the foregoing, the Committee, in its sole discretion, may permit a Participant to elect to defer a fixed dollar amount of her Annual or Long-Term Performance Award; however, such amount may not exceed 75% of her Annual or Long-Term Performance Award payable for such Plan Year. |
(b) | A Participant's Election Form with respect to the deferral of an Annual or Long-Term Performance Award shall be filed with the Committee before the beginning of the Plan Year in which the Award is earned. Notwithstanding the foregoing, to the extent the Committee determines that an Annual or Long-Term Performance Award constitutes “performance based compensation” (within the meaning of Code Section 409A and regulations issued thereunder), the Committee may permit a Participant to file an Election Form with the Committee on or before a date that occurs no later than six months before the end of the performance period. In no event shall an Election Form for performance based compensation be filed when such compensation is readily ascertainable (within the meaning of Code Section 409A and regulations issued thereunder). |
(c) | Subject to Section 2.3, such deferral elections shall be irrevocable as of the first day of the Plan Year to which the Election Form relates or the deadline established by the Committee for performance-based compensation, as the case may be. |
3.3 | Restricted Stock. |
(a) | For any grant of Restricted Stock, a Participant may elect to defer up to 100% (in whole percentage) of her Restricted Stock Amount, subject to such other terms or conditions as set forth in the plan or agreement under which such Restricted Stock was granted. Notwithstanding the foregoing, the Committee, in its sole discretion, may permit a Participant to elect to defer a fixed dollar amount of her Restricted Stock Amount. |
(b) | A Participant's Election Form with respect to the deferral of Restricted Stock Amounts shall be filed with the Committee before the beginning of the Plan Year in which the Restricted Stock is awarded, as determined under the terms of the plan or arrangement. Notwithstanding the foregoing, at the discretion of the Committee, an Election Form may be submitted within 30 days after the Restricted Stock is awarded, provided that the Restricted Stock's first vesting date is at least 12 months after the date the completed Election Form is delivered to and accepted by the Committee (taking into account any automatic vesting provisions upon certain terminations from employment that may occur before such 12 month period). |
(c) | Subject to Section 2.3, such deferral elections shall be irrevocable as of the first day of the Plan Year to which the Election Form relates, or the 30th day after the Restricted Stock is awarded, as the case may be. |
3.4 | Performance Shares or Units. |
(a) | A Participant may elect to defer up to 100% (in whole percentage) of her Performance Share or Unit Amount, as the case may be, subject to such other terms or conditions as set forth in the plan or arrangement under which such Performance Shares were granted. Notwithstanding the foregoing, the Committee, in its sole discretion, may permit a Participant to elect to defer a fixed dollar amount of her Performance Share or Unit Amount. |
(b) | A Participant's Election Form with respect to the deferral of Performance Share Amounts or Performance Unit Amounts shall be filed with the Committee at the following times, determined at the Committee's discretion: |
(i) | Before the beginning of the Plan Year in which the Performance Shares or Performance Units are awarded, as determined under the terms of the plan or arrangement; |
(ii) | Within 30 days after the Performance Shares or Performance Units are awarded, provided that the Performance Shares' or Performance Units' first vesting date is at least 12 months from the date the completed Election Form is delivered to and accepted by the Committee (taking into account any automatic vesting provisions upon certain terminations from employment that may occur before such 12 month period); or |
(iii) | A date that occurs no later than six months before the end of the performance period for such Award to the extent that the Committee determines that Performance Shares or Performance Units constitute “performance based compensation” (within the meaning of Code Section 409A and regulations issued thereunder). In no event shall an Election Form for performance based compensation be filed when such compensation is readily ascertainable (within the meaning of Code Section 409A and regulations issued thereunder). |
(c) | Subject to Section 2.3, such deferral elections shall be irrevocable as of: (i) the first day of the Plan Year to which the Election Form relates, (ii) the 30th day after the Performance Share or Unit Award was granted, or (iii) the deadline established by the Committee for performance-based compensation, as the case may be. |
3.5 | Dividend Equivalents. |
(a) | A Participant may elect to defer up to 100% (in whole percentage) of the dividend equivalents on any unvested Performance Shares or Performance Units under a plan or arrangement of an Employer. Notwithstanding the foregoing, the Committee, in its sole discretion, may permit a Participant to elect to defer a fixed dollar amount of such dividend equivalents. |
(b) | If dividend equivalents on Performance Shares and Performance Units are earned and paid annually, a Participant's Election Form with respect to the deferral of such dividend equivalents shall be filed with the Committee before the beginning of the Plan Year in which the dividend equivalents to be deferred are otherwise earned and paid. |
(c) | Subject to Section 2.3, such deferral elections shall be irrevocable as of the first day of the Plan Year to which the Election Form relates. |
3.6 | Newly-Eligible Employees. Notwithstanding anything in the Plan to the contrary, a newly-Eligible Employee shall be given 30 days from the date she becomes eligible to participate in the Plan (as determined in accordance with plan aggregation rules set forth in Code Section 409A) to complete and submit an Election Form with respect to Base Annual Salary and Annual or Long-Term Performance Award, and such election shall apply only to amounts paid for services performed after the date on which the election is effective. |
3.7 | Annual Company Contribution Amount. For each Plan Year, an Employer, in its sole discretion, may, but is not required to, credit any amount it desires as an Annual Company Contribution Amount to the Company Contribution Account of one or more Eligible Employees. The Annual Company Contribution Amount credited to a Participant may be smaller or larger than the amount credited to any other Participant, and the amount credited to any Participant for a Plan Year may be zero, even though one or more other Participants receive an Annual Company Contribution Amount for that |
3.8 | Company Matching Amount. A Company Matching Amount shall be made for any month in which Base Annual Salary and/or an Annual Performance Award is credited to a Participant's Account under this Plan. If no Base Annual Salary and/or Annual Performance Award is credited to a Participant's Account in a month, then no Company Matching Amount will be provided for such month. |
(a) | The Company Matching Amount shall be determined by using the “matching contribution formula” under the Wisconsin Energy Corporation Employee Retirement Savings Plan (the “ERSP”), regardless of the actual 401(k) Plan, if any, that applies to the Participant. Between January 1, 2005 and December 31, 2007 (inclusive), the matching contribution formula under the ERSP is 50% on 6% of eligible compensation. On and after January 1, 2008, the matching contribution formula under the ERSP is 100% on up to 1% of eligible compensation and 50% on the next 6% of eligible compensation. Such matching contribution formula is subject to change under the ERSP. In this regard, any amendment to the ERSP that makes such change shall be incorporated herein by reference effective as of the date of any such change. |
(b) | The formula for a Participant's Company Matching Amount is the applicable matching rate multiplied by “X.” For purposes of the formula, X is the difference between (i) and (ii): |
(i) | the result of the matching contribution formula calculated using the Participant's gross compensation for the month that is eligible under the relevant Employer 401(k) Plan determined before any reduction for deferrals of Base Annual Salary and Annual Performance Awards, if applicable, under this Plan and without regard to any Code limitations, and |
(ii) | the Participant's “Deemed Maximum Match” (“DMM”). The DMM for any Participant is equal to the result of the matching contribution formula calculated using the Participant's gross compensation for the month that is eligible for matching under the relevant Employer 401(k) Plan. For purposes of this clause (ii), such Participant's gross compensation shall first be reduced by Base Annual Salary and Annual Performance Award |
4.1 | Establishment of Accounts. Bookkeeping accounts shall be established for each Participant to reflect the deferrals of amounts made for the Participant's benefit, together with adjustments for income, gains or losses attributable thereto, and any payments from the respective sub-Accounts. Accounts are established solely for the purpose of tracking deferrals made by Participants or contributions made by an Employer and any income adjustments thereto. The Accounts shall not be used to segregate assets for payment of any amounts deferred or allocated under the Plan, and shall not constitute or be treated as a trust fund of any kind. Unless the Committee determines otherwise, the Plan shall maintain and credit the following sub-Accounts: |
(a) | Company Contribution Account. The Annual Company Contribution Amount, if any, shall be credited to the Company Contribution Account as of the last day of the Plan Year, unless the Employer in its sole discretion determines otherwise. |
(b) | Company Matching Account. The Participant's Company Matching Amount shall be credited to the Company Matching Account no later than the end of the month following the month to which such amount relates. |
(c) | Deferral Account. The Participant's Deferral Account shall reflect a Participant's Annual Deferral Amounts credited on her behalf. |
(i) | Base Annual Salary deferrals shall be withheld from each regularly scheduled payroll, as adjusted from time to time for increases and decreases in Base Annual Salary, and credited to the Deferral Account as of the regularly scheduled payroll date or as soon as administratively feasible thereafter. |
(ii) | Annual or Long-Term Performance Award deferrals shall be withheld and credited to the Deferral Account at the time the Annual or Long-Term Performance Award would otherwise be paid to the Participant. |
(d) | Dividend Deferral Account. Dividend equivalent deferrals shall be credited to the Dividend Deferral Account at the time the deferred dividend equivalents would otherwise have been paid in cash, but for the election to defer. |
(e) | Performance Share Account. Performance Share Amount deferrals shall be credited to the Performance Share Account as of the date the Performance Shares would otherwise be paid following vesting, as determined under the terms of the plan or arrangement pursuant to which the Performance Shares were granted, but for the election to defer. |
(f) | Performance Unit Account. Performance Unit Amount deferrals shall be credited to the Performance Unit Account as of the date the Performance Units would otherwise be paid following vesting, as determined under the terms of the plan or arrangement pursuant to which the Performance Units were granted, but for the election to defer. |
(g) | Restricted Stock Account. Restricted Stock Amount deferrals shall be credited to the Restricted Stock Account as of the date the Restricted Stock would otherwise vest under the terms of the plan or arrangement pursuant to which the Restricted Stock was granted, but for the election to defer. |
4.2 | Vesting. A Participant shall be vested and have a nonforfeitable right to the amounts credited to her Accounts, adjusted for deemed income, gains and losses attributable thereto, as follows: |
(a) | A Participant shall at all times be 100% vested and have a nonforfeitable right to amounts credited to her Company Matching Account, Deferral Account, Dividend Deferral Account, Performance Share Account, Performance Unit Account and Restricted Stock Account. |
(b) | A Participant shall be vested and have a nonforfeitable right to amounts credited, if any, in her Company Contribution Account in accordance with the vesting schedule, if any, set forth in her Election Form or other written agreement with such Participant. However, in the event of a Change in Control, amounts credited to a Participant's Company Contribution Account shall immediately become 100% vested. |
4.3 | Deemed Investments. Subject to paragraphs (b) and (h) below, and in accordance with, and subject to, the rules and procedures that are established from time to time by the Committee in its sole discretion, amounts shall be credited or debited to a Participant's Account in accordance with the following rules. The Committee's discretion includes the right to supersede the specific rights identified below, with or without retroactive effect: |
(a) | Measurement Funds. Amounts credited to each Participant's Account shall be deemed invested, in accordance with the Participant's directions, in one or more Measurement Funds that are available under the Plan. The hypothetical investment funds available under the Plan shall be those designated by the Committee, from time to time in its discretion, following recommendations by the WEC Investment Trust Policy Committee. Subject to paragraphs (b) and (h) below, a Participant may elect one or more of the following Measurement Funds for the purpose of crediting additional amounts to her Account: (i) any Measurement Fund selected by the Committee from time to time, (ii) the Prime Rate Fund (described as a mutual fund that is 100% invested in a hypothetical debt instrument which earns interest at an annualized interest rate equal to the “Prime Rate” as reported each business day by the Wall Street Journal, with interest deemed reinvested in additional units of such hypothetical debt instrument), or (iii) a Company Stock Measurement Fund (described as a mutual fund that is 100% invested in shares of Company Stock, with dividends deemed reinvested in additional shares of Company Stock). |
(b) | Special Rule for Restricted Stock and Performance Share Amounts. Notwithstanding any provision of this Plan to the contrary, the Participant's Restricted Stock Amounts and Performance Share Amounts deferred under the Plan that would have otherwise been distributed in Stock shall be deemed invested in the Company Stock Measurement Fund at all times before distribution from this Plan. Further, the Participant's Restricted Stock and Performance Share Amounts shall be distributed from this Plan in the form of cash. |
(c) | Election of Measurement Funds. Subject to paragraphs (b) and (h), a Participant shall elect on her initial Election Form one or more Measurement Funds to be used to determine the additional amounts to be credited to her Account, unless changed pursuant to rules as the Committee shall determine, in its discretion, from time to time. However, subject to paragraphs (b) and (h) and any rules and procedures established from time to time by the Committee in its sole discretion, the Participant may elect, by submitting an Election Form to the Committee that is |
(d) | Proportionate Allocation. In making any election described in paragraph (c) above, the Participant shall specify on the Election Form, in increments of 1%, the percentage of her Account balance to be allocated to a Measurement Fund (as if the Participant was making an investment in that Measurement Fund with that portion of her Account balance). |
(e) | Crediting or Debiting Method. The performance of each elected Measurement Fund (either positive or negative) shall be determined by the Committee, in its sole discretion, based on the performance of the Measurement Funds themselves. A Participant's Account shall be credited or debited on a periodic basis based on the performance of each Measurement Fund selected by the Participant, as determined by the Committee in its sole discretion, provided that no adjustment in the value of a Participant's Account balance shall be considered after the Ending Valuation Date. |
(f) | No Actual Investment. Notwithstanding any other provision of this Plan to the contrary, the Measurement Funds shall be used for measurement purposes only, and a Participant's election of any Measurement Fund, the allocation of her Account thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant's Account shall not be considered or construed in any manner as an actual investment of her Account balance in any such Measurement Fund. If the Employer or the trustee, in its sole discretion, decides to invest funds in any or all of the Measurement Funds, no Participant shall have any rights in or to such investments themselves. Notwithstanding the foregoing, a Participant's Account balance shall at all times be a bookkeeping entry only and shall not represent any investment made on her behalf by the Employer or the trustee; the Participant shall at all times remain an unsecured creditor of the Company. |
(g) | Investment of Trust Assets. The trustee of the Trust shall be authorized, upon written instructions received from the Committee or an investment manager appointed by the Committee, to invest and reinvest the assets of the Trust in accordance with the applicable Trust Agreement, including the disposition of Stock and reinvestment of the proceeds in one or more investment vehicles designated by the Committee. |
(h) | Special Considerations for Participants Subject to Section 16 of the Securities Exchange Act of 1934. In order for any deferral election under this Plan by a Participant who is an officer subject to the reporting requirements and trading restrictions of Section 16 of the Securities Exchange Act of 1934 (“Section 16”) to conform to Section 16, the Participant shall consult with the Company's designated individual responsible for Section 16 reporting and compliance before making any election to move any part of her Account into or out of the Company Stock Measurement Fund. Any change of election to an alternative payout form made under Section 5.6 by such Participant may only be given effect if it is approved by the Compensation Committee or the Board. The Company reserves the right to impose such restrictions as it determines necessary, in its sole discretion, on any elections, transactions or other matters under this Plan relating to the Company Stock Measurement Fund to comply with or qualify for exemption under Section 16. |
4.4 | Taxes. A Participant's Employer shall withhold from a Participant's non-deferred compensation any employment taxes the Employer is required to withhold with respect to amounts deferred under the Plan at the times required under applicable regulations promulgated by the Department of the Treasury. To the extent not previously withheld, the Employer, or the trustee of the Trust, shall withhold from any payments made to a Participant under this Plan all federal, state and local income, employment and other taxes required to be withheld by the Employer, or the trustee of the Trust, in connection with such payments, in amounts and in a manner to be determined in the sole discretion of the Employer or the trustee of the Trust, as the case may be. |
5.1 | Time for Distribution. Except as otherwise provided in Section 5.7, distribution of a Participant's Account shall be made on the earliest to occur of: |
(a) | The date elected by a Participant under Section 5.2 with respect to an In-Service Payout; |
(b) | The date set forth in Section 5.3 with respect to the Participant's Retirement; |
(c) | The date set forth in Section 5.4 with respect to the Participant's Separation from Service; |
(d) | The date set forth in Section 5.5 with respect to the Participant's death; or |
(e) | The date set forth in Section 5.8 with respect to a Separation from Service after a Change in Control. |
5.2 | In-Service Payout. A Participant may irrevocably select, on her Election Form, a Plan Year to receive a lump sum In‑Service Payout of all or part of an Annual Deferral Amount (including Company Matching Amounts thereto). The earliest Plan Year in which a Participant can elect an In-Service Payout is the third Plan Year after the Plan Year in which the deferral actually occurs. For example, an election to defer Base Annual Salary in December 2004 that is actually deferred in 2005 may be distributed no earlier than in 2008. Payment shall be made during the first 90 days of the Plan Year elected for distribution. |
5.3 | Benefits Upon Retirement. Upon a Participant's Retirement, the Participant's Account shall be paid or begin to be paid during the first 90 days of the Plan Year following the Plan Year of the Participant's Retirement. Notwithstanding the foregoing, distributions made to “specified employees” (determined pursuant to Treasury Regulation Section 1.409A-1(i)) upon Retirement shall be paid or begin to be paid no earlier than the first day of the seventh month following the Participant's Retirement, unless the Participant dies during such six-month period in which case Section 5.5 shall apply. Subsequent installment payments shall be made thereafter during the first 90 days of the Plan Year in which the installment is due. |
(a) | A Participant's Account balance shall be paid in a lump sum if: |
(i) | timely elected by the Participant pursuant to the Plan, |
(ii) | the Participant's Account balance at the time of Retirement is $10,000 or less even if the Participant elected an installment payment form, or |
(iii) | no valid payment election is in effect when distribution is to be made. |
(b) | Subject to paragraph (a)(ii) and Section 5.8, a Participant may elect to receive payment of her Account balance in any number of installments up to ten. The amount of each installment shall be determined using the Annual Installment Method. |
5.4 | Benefits Upon Separation from Service. Upon a Participant's Separation from Service for any reason other than Retirement or death, the Participant's Account shall be paid or begin to be paid during the first 90 days of the Plan Year following the Plan Year of the |
(a) | A Participant's Account balance shall be paid in a lump sum if: |
(i) | timely elected by the Participant pursuant to the Plan, |
(ii) | the Participant's Account balance at the time of Separation from Service is $25,000 or less even if the Participant elected an installment payment form, or |
(iii) | no valid payment election is in effect when distribution is to be made. |
(b) | Subject to paragraph (a)(ii) and Section 5.8, a Participant may elect to receive payment of her Account balance in five installments. The amount of each installment shall be determined using the Annual Installment Method. |
5.5 | Benefits Upon Death. Upon the Participant's death, the Plan Administrator shall pay to the Participant's Beneficiary a benefit equal to the remaining balance in the Participant's Account. Payment shall be made in accordance with the provisions below. |
(a) | Death While In Pay Status. If the Participant dies after commencing an installment form of payment, but before the entire benefit is paid in full, the Participant's unpaid installment payments shall continue to be paid to the Participant's Beneficiary over the remaining number of years as that benefit would have been paid to the Participant had the Participant survived. In the event a Participant dies after a Separation from Service, but before actual payment is made or begins, this paragraph shall apply and payment to the Participant's Beneficiary shall be paid or begin to be paid at the same time as if the Participant had survived. |
(b) | Death While Actively Employed. If a Participant dies while actively employed, the Participant's Account shall be paid or begin to be paid to the Participant's Beneficiary during the first 90 days of the Plan Year following the Plan Year of the Participant's death, regardless of whether the Participant is a specified employee. Payment shall be made in such form as determined below, taking into account any changes to an elected form of payment pursuant to Section 5.6. |
(i) | A Participant's Account balance shall be paid to her Beneficiary in a lump sum if: |
(A) | timely elected by the Participant pursuant to the Plan, |
(B) | the Participant's Account balance at the time of death $25,000 or less even if the Participant elected an installment payment form, or |
(C) | no valid payment election is in effect when distribution is to be made. |
(ii) | Subject to clause (i)(B), a Participant may elect payment of her Account balance upon death in any number of installments up to ten. The amount of each installment shall be determined using the Annual Installment Method. |
5.6 | Changes to Form of Payment. |
(a) | Prospective Changes. A Participant may select an alternate form of payment for amounts not yet subject to an irrevocable election in accordance with the rules for filing elections in Section 2.3 and Article 3. |
(b) | Retroactive Changes. A Participant may elect to change the form of payment for amounts that are subject to a deferral election that is irrevocable: |
(i) | A Participant who has elected a lump sum distribution may later change such election to an installment payment, provided the first installment payment shall be deferred to a date that is at least five years after the date the lump sum distribution would otherwise have been made. |
(ii) | A Participant who has an installment election in effect may change such election to a lump sum payment, provided the lump sum payment shall be deferred to a date that is at least five years after the date the initial installment payment would otherwise have commenced. |
(iii) | A Participant who has an installment election for payment upon Retirement, may change the number of installments, provided that the first installment payment shall be deferred to a date that is at least five years after the date the initial installment payment would otherwise have commenced. |
(c) | Changes Pursuant to §409A Transition Relief. Notwithstanding the foregoing provisions of this Section, on or before December 31, 2008, Participants may make changes to payment form elections previously filed with respect to amounts deferred under the Plan that relate to Plan Years 2005, 2006, 2007 and 2008 consistent with transition relief provided by the Department of the Treasury in Notice 2006-79, Notice 2007-86 and proposed regulations promulgated under Code Section 409A. If a Participant makes such a change, then the last election validly in effect as of December 31, 2008 shall be treated as the “initial” election for purposes of applying the rules set forth in paragraph (b). |
5.7 | Unforeseeable Emergency. A Participant may request that all or a portion of her Account be distributed in a lump sum at any time by submitting a written request to the Committee demonstrating that she has suffered an Unforeseeable Emergency, and that the distribution is necessary to alleviate the financial hardship created by the Unforeseeable Emergency. |
(a) | The Committee shall have the sole discretionary authority to determine whether a Participant has suffered an Unforeseeable Emergency, which shall be determined based on the relevant facts and circumstances of each case. In making such a determination, no distribution pursuant to this Section shall be made to the extent that such Unforeseeable Emergency is or may be relieved through reimbursement or compensation by insurance or otherwise, or by liquidation of the Participant's assets (unless such liquidation itself would cause a severe financial hardship), or by the cessation of deferrals under the Plan. In this regard, all deferral elections scheduled for the remainder of the Plan Year in which such distribution is made shall be cancelled. If a Participant's outstanding deferral election is cancelled, a Participant shall be required to make a new election pursuant to Articles 2 and 3 to resume active participation in the Plan. |
(b) | Upon a finding that the Participant has suffered an Unforeseeable Emergency, the Committee shall distribute to the Participant the lesser of (i) the portion of her Account that is necessary to satisfy the Unforeseeable Emergency, plus taxes attributable thereto or (ii) the Account balance. Distributions made pursuant to this Section shall be made within 90 days after the Committee has reviewed and approved the request. |
5.8 | Change in Control. Notwithstanding any other provision of the Plan to the contrary, in the event a Participant incurs a Separation from Service within 18 months after a Change in Control, the Employer shall distribute the Participant's entire Account in a lump sum payment within 90 days after such Separation, except in the case of any individual who has previously filed a special written irrevocable deferral election form under a special written contract with an Employer (including, without limitation, the senior officer change in control, severance and non-compete agreements currently in effect) electing not to receive such an immediate lump sum but instead to be paid on another basis. Notwithstanding the foregoing, distributions made to “specified employees” (determined pursuant to Treasury Regulation Section 1.409A-1(i)) upon Separation from Service shall be paid or begin to be paid no earlier than the first day of the seventh month following the |
5.9 | Discretion to Accelerate Distribution. |
(a) | The Committee shall have the discretion to make a distribution, or accelerate the time or schedule of payment, from a Participant's Account if payment is required for: |
(i) | FICA, FUTA and/or the corresponding withholding provisions of applicable state and local taxes with respect to compensation deferred under the Plan. Any such distribution shall not exceed the aggregate of such tax withholding and shall reduce the Participant's Account balance to the extent of such distributions; or |
(ii) | payment of state, local or foreign tax obligations arising from participation in the Plan that apply to an amount deferred under the Plan and FUTA resulting from such payment. Any such payment shall not exceed the amount of such taxes due as a result of Plan participation. |
(b) | The Committee or a Plan representative is authorized to accelerate the time or schedule of a payment under the Plan to an individual other than the Participant, or to make a payment under the Plan to an individual other than the Participant, to the extent necessary to fulfill a domestic relations order (as defined in Code Section 414(p)(1)(B)). Payment to an alternate payee under a domestic relations order shall be made in a lump sum within 90 days after the Committee or Plan representative approves such order. |
(c) | The Committee shall have the discretion to accelerate the time or schedule of a payment under the Plan if the Plan fails to meet the requirements of Code Section 409A and regulations promulgated thereunder, provided that any such payment does not exceed the amount required to be included in income as a result of such failure. |
7.1 | Beneficiary. Each Participant may, at any time, designate one or more Beneficiaries (both primary as well as contingent) to receive any benefits payable under the Plan upon her death. The Beneficiary designated under this Plan may be the same as or different from the Beneficiary designation under any other plan of an Employer in which the Participant participates. |
7.2 | Beneficiary Designation; Change. A Participant shall designate her Beneficiary by completing and signing a beneficiary designation form established by the Committee or its delegate, and returning it to the Committee or its designated agent. A Participant may change her Beneficiary designation by completing, signing and otherwise complying with the terms of the beneficiary designation form and the Committee's rules and procedures, as in effect from time to time. Upon the acceptance by the Committee of a new beneficiary designation form, all Beneficiary designations previously filed shall be canceled. The Committee shall rely on the last completed beneficiary designation form filed by the Participant and accepted by the Committee before her death. |
7.3 | Acknowledgment. No Beneficiary designation or change in Beneficiary designation shall be effective until accepted by the Committee or a Plan representative. |
7.4 | No Beneficiary Designation. If a Participant fails to designate a Beneficiary as provided in this Article 7 or, if all designated Beneficiaries predecease the Participant or die before complete distribution of the Participant's Account, then the Participant's designated Beneficiary shall be deemed to be her surviving spouse. If the Participant has no surviving spouse, but was survived by a designated Beneficiary who was receiving benefits or was entitled to receive distribution under this Plan but died before a complete distribution of the Participant's Account, the remaining benefits shall be paid to such designated Beneficiary's estate. If the Participant leaves no surviving spouse and was not survived by a designated Beneficiary as provided in the foregoing sentence, the Participant's Account shall be paid to the Participant's estate. |
7.5 | Doubt as to Beneficiary. If the Committee has any doubt as to the proper Beneficiary to receive payments under this Plan, the Committee may, in its sole discretion, require the |
7.6 | Discharge of Obligations. The complete payment of benefits under the Plan to a Beneficiary shall fully and completely discharge all Employers and the Committee from all further obligations under this Plan with respect to the Participant, and the Participant's Election Form shall terminate upon such full payment of benefits. |
8.1 | Termination. |
(a) | Although each Employer anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that an Employer will continue the Plan or will not terminate the Plan at any time in the future. Accordingly, each Employer reserves the right to discontinue its participation in the Plan and/or to terminate the Plan at any time with respect to all of its participating Eligible Employees, by action of its Board of Directors or Compensation Committee. Upon the termination of the Plan with respect to any Employer, any elections to defer compensation under the Plan of Participants who are employed by that Employer shall terminate as of the last day of the Plan Year containing the termination date. The termination of the Plan shall not reduce the amount of any benefit to which the Participant or Beneficiary is entitled to receive under the Plan as of the termination date. Except as provided in paragraph (b) below, Account balances shall be maintained under the Plan until such amounts would otherwise have been distributed in accordance with the terms of the Plan and Participants' validly filed payment elections. |
(b) | Notwithstanding any provision in the Plan to the contrary, upon termination of the Plan, the Board of Directors or Compensation Committee reserves the discretion to accelerate distribution of Participants' Account (including those Participants in pay status pursuant to an installment election) in accordance with regulations promulgated by the Department of the Treasury under Code Section 409A. |
8.2 | Amendment. The Company may, in its sole discretion, amend or modify the Plan at any time, in whole or in part, by action of its Board, Compensation Committee or the Committee; provided, however, that no amendment shall decrease the amount of any Participant's Account as of the date of the amendment. Further, during the pendency of a Potential Change in Control (as defined below) and at all times following a Change in Control, no amendment or modification may be made which in any way adversely affects the interests of any Participant with respect to amounts credited to such Participant's Account as of the date of the amendment. A “Potential Change in Control” shall be deemed to have occurred if one of the following events occurs: |
(a) | The Company enters into an agreement, the consummation of which would result in the occurrence of a Change in Control; |
(b) | The Company or any Person publicly announces an intention to take or to consider taking actions which, if consummated, would constitute a Change in Control; |
(c) | Any Person becomes the Beneficial Owner (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of Stock representing 15% or more of either the then outstanding shares of stock of the Company or the combined voting power of the Company's then outstanding Stock (not including the Stock beneficially owned by such Person or any Stock acquired directly from the Company or its affiliates); or |
(d) | The Board adopts a resolution to the effect that, for purposes of this Plan, a Potential Change in Control has occurred. |
8.3 | Effect of Payment. The full payment of the Participant's Account under any provision of the Plan shall completely discharge the Plan's and Employer's obligations to the Participant and her Beneficiaries under this Plan and the Participant's Election Forms shall terminate. |
9.1 | Plan Administration. Except as otherwise provided in this Article 9, the Plan shall be administered by the Committee. Members of the Committee may be Participants under this Plan. Any individual serving on the Committee who is a Participant shall not vote or act on any matter relating solely to himself or herself. The Chief Executive Officer may not act on any matter involving such officer's own participation in the Plan. All references to the Committee shall be deemed to include reference to the Chief Executive Officer. |
9.2 | Powers, Duties and Procedures. The Committee (or the Chief Executive Officer if such individual chooses to so act) shall have full and complete discretionary authority to (i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of the Plan, and (ii) decide or resolve any and all questions including interpretations of the Plan, as may arise in connection with the claims procedures set forth in Article 10 or otherwise with regard to the Plan. The Committee shall have complete control and authority to determine the rights and benefits of all claims, demands |
9.3 | Administration Upon Change In Control. For purposes of this Plan, the Company shall be the “Administrator” at all times before a Change in Control. Upon and after a Change in Control, the Administrator shall be an independent third party selected by the individual who, at any time before such event, was the Company's Chief Executive Officer or, if there is no such officer or such officer does not act, by the Company's then highest ranking officer (the “Appointing Officer”). Upon a Change in Control, the Administrator shall have full and complete discretionary power to determine all questions arising in connection with the administration of the Plan and the interpretation of the Plan and Trust including, but not limited to, benefit entitlement determinations. Upon and after a Change in Control, the Company shall (i) pay all reasonable administrative expenses and fees of the Administrator, (ii) indemnify the Administrator against any costs, expenses and liabilities (including, without limitation, attorney's fees) of whatever kind and nature which may be imposed on, asserted against or incurred by the Administrator in connection with the performance of the duties hereunder, except with respect to matters resulting from the gross negligence or willful misconduct of the Administrator or its employees or agents, and (iii) supply full and timely information to the Administrator on all matters relating to the Plan, the Trust, the Participants and their Beneficiaries, the Account balances of the Participants, including the dates of Retirement, Disability, death or Separation from Service and such other pertinent information as the Administrator may reasonably require. Upon and after a Change in Control, the Administrator may be terminated (and a replacement appointed) only by an Appointing Officer. Upon and after a Change in Control, the Administrator may not be terminated by the Company. |
9.4 | Agents. In the administration of this Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel who may be counsel to an Employer. |
9.5 | Binding Effect of Decisions. Notwithstanding any other provision of the Plan to the contrary, the Committee or its delegate shall have complete discretion to interpret the Plan and to decide all matters under the Plan. Any such interpretation shall be final, conclusive and binding on all Participants, Beneficiaries and any person claiming under or through any Participant, in the absence of clear and convincing evidence that the Committee acted arbitrarily and capriciously. |
9.6 | Indemnity of Committee. All Employers shall indemnify and hold harmless the members of the Committee, and any other employee to whom the duties of the Committee may be delegated, and the Administrator, as defined in Section 9.2, against |
9.7 | Employer Information. To enable the Committee and/or Administrator to perform its functions, each Employer shall supply full and timely information to the Committee on all matters relating to the compensation of its Participants, the dates of the Retirement, disability, death or Separation from Service and such other pertinent information as the Committee may reasonably require. |
9.8 | Coordination with Other Benefits. The benefits provided to a Participant and the Beneficiary under the Plan are in addition to any other benefits available to such Participant under any other plan or program for employees of an Employer. The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided. |
10.1 | Presentation of Claim. Any Participant or Beneficiary (such Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the Committee a written claim for benefits. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within 90 days after such notice was received by the Claimant. All other claims shall be made within 180 days of the date on which the event that caused the claim to arise occurred. The claim shall state with particularity the determination desired by the Claimant. A claim shall be considered to have been made when a written communication made by the Claimant or the Claimant's representative is received by the Committee. |
10.2 | Decision on Initial Claim. The Committee shall consider a Claimant's claim and provide written notice to the Claimant of any denial within a reasonable time, but no later than 90 days after receipt of the claim. If an extension of time beyond the initial 90-day period for processing is required, written notice of the extension shall be provided to the Claimant before the initial 90-day period expires indicating the special circumstances requiring an extension of time and the date by which the Committee expects to render a final decision. In no event shall the period, as extended, exceed 180 days. If the Committee denies, in whole or in part, the claim, the notice shall set forth in a manner calculated to be understood by the Claimant: |
(i) | The specific reasons for the denial of the claim, or any part thereof; |
(ii) | Specific references to pertinent Plan provisions upon which such denial was based; |
(iii) | A description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and |
(iv) | An explanation of the claim review procedure set forth in Section 10.3 below, which explanation shall also include a statement of the Claimant's right to bring a civil action under ERISA Section 502(a) following a denial of the claim upon review. |
10.3 | Right to Review. A Claimant is entitled to appeal any claim that has been denied in whole or in part. To do so, the Claimant must submit a written request for review with the Committee within 60 days after receiving a notice from the Committee that a claim has been denied, in whole or in part. Absent receipt by the Committee of a written request for review within such 60-day period, the claim shall be deemed to be conclusively denied. The Claimant (or the Claimant's duly authorized representative) may: |
(a) | Review and/or receive copies of, upon request and free of charge, all documents, records, and other information relevant to the Claimant's claim; |
(b) | Submit written comments, documents, records or other information relating to her claim, which the Committee shall take into account in considering the claim on review, without regard to whether such information was submitted or considered in the initial review of the claim; and/or |
(c) | Request a hearing, which the Committee, in its sole discretion, may grant. |
10.4 | Decision on Review. The Committee shall render its decision on review promptly, and not later than 60 days after it receives a written request for review of the denial, unless a hearing is held or other special circumstances require additional time. In such case, the Committee will notify the Claimant, before the expiration of the initial 60-day period and in writing, of the need for additional time, the reason the additional time is necessary, and the date (no later than 60 days after expiration of the initial 60-day period) by which the Committee expects to render its decision on review. Notwithstanding the foregoing, if the Committee determines that an extension of the initial 60-day period is required due to the Claimant's failure to submit information necessary for the Committee to decide the claim, the time period by which the Committee must make its determination on review shall be tolled from the date on which the notification of the extension is sent to the Claimant until the date on which the Claimant responds to the request for additional information. The decision on review shall be written in a manner calculated to be understood by the Claimant, and shall contain: |
(a) | Specific reasons for the decision; |
(b) | Specific references to the pertinent Plan provisions upon which the decision was based; |
(c) | A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records or other information relevant (within the meaning of Department of Labor Regulation Section 2560.503-1(m)(8)) to the Claimant's claim; |
(d) | A statement of the Claimant's right to bring a civil action under ERISA Section 502(a) following a wholly or partially denied claim for benefits; and |
(e) | Such other matters as the Committee deems relevant. |
10.5 | Form of Notice and Decision. Any notice or decision by the Committee under this Article 10 may be furnished electronically in accordance with Department of Labor Regulation Section 2520.104b-(1)(c)(i), (iii) and (iv). |
10.6 | Legal Action. Any final decision by the Committee shall be binding on all parties. A Claimant's compliance with the foregoing provisions of this Article 10 is a mandatory prerequisite to a Claimant's right to commence any legal action with respect to any claim for benefits under this Plan. Any such legal action must be initiated no later than 180 days after the Committee renders its final decision. If a final determination of the Committee is challenged in court, such determination shall not be subject to de novo review and shall not be overturned unless proven to be arbitrary and capricious based on the evidence considered by the Committee at the time of such determination. |
11.1 | Establishment of the Trust. The Company shall establish the Trust and each Employer shall contribute such amounts to the Trust from time to time as it deems desirable. |
11.2 | Interrelationship of the Plan and the Trust. The provisions of the Plan shall govern the rights of a Participant to receive distributions pursuant to the Plan. The provisions of the Trust shall govern the rights of the Employers, Participants and the creditors of the Employers to the assets transferred to the Trust. Each Employer shall at all times remain liable to carry out its obligations under the Plan. |
11.3 | Distributions From the Trust. Each Employer's obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such distribution shall reduce the Employer's obligations under this Plan. |
12.1 | Status of Plan. The Plan is intended to be a plan that is not qualified within the meaning of Code Section 401(a) and that is unfunded for tax purposes and “is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees” (within the meaning of ERISA). The Plan shall be administered and interpreted in a manner consistent with that intent. |
12.2 | Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of an Employer, Company or of any other person and nothing in the Plan shall be construed to give any employee or any other person such rights. The Plan constitutes a mere promise by the Company or Employer to make payments in accordance with the terms of the Plan and Participants and Beneficiaries shall have the status of general unsecured creditors solely of the Employer employing the Participant. |
12.3 | Employer's Liability. The liability of an Employer for the payment of benefits shall be defined only by the Plan and any Election Forms, as entered into between the Employer and a Participant. An Employer shall have no obligation to a Participant under the Plan except as expressly provided in the Plan. |
12.4 | Nonassignability. Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable to the maximum extent allowed by law. No part of the amounts payable shall, before actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, nor shall any part of the same, to the maximum extent allowed by law, be transferable by operation of law in the event of a Participant's or any other person's bankruptcy or insolvency or, except as provided in Section 5.9(b), be transferable to a spouse as a result of a property settlement or otherwise. |
12.5 | Not a Contract of Employment. The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between any Employer and the Participant. Such employment is hereby acknowledged to be an “at will” employment relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, unless expressly provided in a written employment agreement between an Employer and a Participant. Nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of any Employer as an employee, or to interfere with the right of any Employer to discipline or discharge the Participant at any time, with or without cause, or to modify the Base Salary or Annual or Long-Term Performance Award at any time. |
12.6 | Furnishing Information. A Participant or Beneficiary shall cooperate with the Committee by furnishing any and all information requested by the Committee and take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits hereunder. |
12.7 | Receipt and Release. Any payment to any Participant or Beneficiary in accordance with the provisions of the Plan shall, to the extent thereof, be in full satisfaction of all claims against the Employer, the Committee and a trustee (if any) under the Plan, and the Committee may require such Participant or Beneficiary, as a condition precedent to such payment, to execute a receipt and release to such effect. |
12.8 | Incompetent. If any Participant or Beneficiary is determined by the Committee, in its sole discretion, to be incompetent by reason of physical or mental disability (including minority) or is determined to be incapable of handling disposition of that person's property, the Committee may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person. In such circumstance, the Committee, the Employer or a trustee (if any) shall have no responsibility to follow the application of such funds. The Committee may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the Account of the Participant and the Participant's Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such payment amount. |
12.9 | Governing Law and Severability. To the extent not preempted by ERISA, the provisions of this Plan shall be construed, administered and interpreted according to the internal laws of the State of Wisconsin without regard to its conflicts of laws principles. If any provisions is held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective. |
12.10 | Notices and Communications. All notices, statements, reports and other communications from the Committee to any employee, Participant, Beneficiary or other person required or permitted under the Plan shall be deemed to have been duly given when personally delivered to, when transmitted via facsimile or other electronic media or when mailed overnight or by first-class mail, postage prepaid and addressed to, such employee, Participant, Beneficiary or other person at his or her last known address on the Employer's or Company's records. All elections, designations, requests, notices, instructions and other communications from a Participant, Beneficiary or other person to the Committee required or permitted under the Plan shall be in such form as is prescribed from time to time by the Committee, and shall be mailed by first-class mail, transmitted via facsimile or other electronic media or delivered to such location as shall be specified by the Committee. Such communication shall be deemed to have been given and delivered only upon actual receipt by the Committee at such location. |
12.11 | Successors. The provisions of this Plan shall bind and inure to the benefit of the Participant's Employer and its successors and assigns and the Participant and the Participant's designated Beneficiaries. |
12.12 | Insurance. An Employer, on its own behalf or on behalf of the trustee of the Trust, and, in its sole discretion, may apply for and procure insurance on the life of the Participant, in such amounts and in such forms as the Employer may choose. The Employer or the trustee of the Trust, as the case may be, shall be the sole owner and beneficiary of any such insurance. The Participant shall have no interest whatsoever in any such policy or policies, and at the request of the Employer shall submit to medical examinations and supply such information and execute such documents as may be required by the insurance company or companies to whom the Employer has applied for insurance. The Participant may elect not to be insured. |
12.13 | Legal Fees To Enforce Rights After Change in Control. The Employer is aware that upon the occurrence of a Change in Control, the Board (which might then be composed of new members) or a shareholder of the Employer, or of any successor corporation, might then cause or attempt to cause the Employer or such successor to refuse to comply with its obligations under the Plan and might cause or attempt to cause the Employer to institute, or may institute, litigation seeking to deny Participants the benefits intended under the Plan. In these circumstances, the purpose of the Plan could be frustrated. Accordingly, if, following a Change in Control, it should appear to any Participant that the Employer or any successor corporation has failed to comply with any of its obligations under the Plan or any agreement thereunder or, if the Employer or any other person takes any action to declare the Plan void or unenforceable or institutes any litigation or other legal action designed to deny, diminish or to recover from any Participant the benefits intended to be provided, then the Employer irrevocably authorizes such Participant to retain counsel of her choice at the expense of the Employer (who shall be jointly and severally liable for all reasonable fees of such counsel) to represent such Participant in connection with the initiation or defense of any litigation or other legal action, whether by or against the Employer or any director, officer, shareholder or other person affiliated with the Employer or any successor thereto in any jurisdiction. If paid by the Participant, the Employer shall reimburse such legal fees no later than December 31st of the year following the year in which the expense was incurred. |
12.14 | Terms. Whenever any words are used herein in the feminine, they shall be construed as though they were in the masculine in all cases where they would so apply; and whenever any words are used herein in the singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply. |
12.15 | Headings. Headings and subheadings in the Plan are inserted for convenience only and shall not control or affect the meaning or construction of any of its provisions. |
WISCONSIN ENERGY CORPORATION | |
By: | /s/ Lisa R. George |
Date: | September 8, 2009 |
State of | ||||
Incorporation | Percent | |||
Subsidiary (a) | or Organization | Ownership | ||
Wisconsin Electric Power Company | Wisconsin | 100% | ||
ATC Management Inc. | Wisconsin | 26.24% | ||
American Transmission Company LLC | Wisconsin | 23.04% | ||
Bostco LLC | Wisconsin | 100% | ||
Wisconsin Gas LLC | Wisconsin | 100% | ||
ATC Holding LLC | Wisconsin | 100% | ||
American Transmission Company LLC | Wisconsin | 3.20% | ||
W.E. Power, LLC | Wisconsin | 100% | ||
Elm Road Generating Station Supercritical, LLC | Wisconsin | 100% | ||
Elm Road Services, LLC | Wisconsin | 100% | ||
Port Washington Generating Station, LLC | Wisconsin | 100% | ||
Wisvest LLC | Wisconsin | 100% | ||
Wispark LLC | Wisconsin | 100% | ||
CenterPoint Wispark Land Company LLC | Wisconsin | 32.95% | ||
2825 Four Mile Road LLC | Wisconsin | 100% | ||
Wisconsin Energy Capital Corporation | Wisconsin | 100% | ||
(a) | Omits the names of certain subsidiaries, which if considered in the aggregate as a single subsidiary, would not constitute a "significant subsidiary" as of December 31, 2011. Indirectly owned subsidiaries are listed under the subsidiaries through which Wisconsin Energy Corporation holds ownership. |
1. | I have reviewed this annual report on Form 10-K of Wisconsin Energy Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | I have reviewed this annual report on Form 10-K of Wisconsin Energy Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
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Short-Term Debt (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Short-Term Debt (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term notes payable balances and their corresponding weighted-average interest rates | Short-term notes payable balances and their corresponding weighted-average interest rates as of December 31 consist of:
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Commercial paper | The following information relates to commercial paper for the years ended December 31:
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Accounting and Reporting for Power the Future Generating Units (Details)
|
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Accounting and Reporting for Power the Future Generating Units (Textuals) | ||
New generating units built | 4 | |
Pre-tax cost of capital used for current rates | 14.00% | |
Weighted-average pre-tax cost of interest for capitalized interest | 5.00% | |
Lease return on equity component, after tax | 12.70% | |
OC 1 [Member]
|
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Public Utility Property Plant And Equipment [Line Items] | ||
One time escalation of lease payments expected to be levelized | 10.60% | |
Years before one time escalation of lease payments | first five years | |
OC 2 [Member]
|
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Public Utility Property Plant And Equipment [Line Items] | ||
One time escalation of lease payments expected to be levelized | 10.60% | |
Years before one time escalation of lease payments | first five years |
Summary of Significant Accounting Policies (Details 1)
|
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity method investment | 50.00% | |
ATC [Member]
|
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Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity method investment | 26.20% | 26.20% |
Voting rights in ATC board members | one out of ten | |
Number of votes with each member of ATC | 1 | |
Maximum voting control for individual member in ATC | 10.00% |
Fair Value Measurements (Details 1) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Fair value of derivatives classified as Level 3 in the fair value hierarchy | ||
Change in unrealized gains (losses) relating to instruments still held as of December 31 | $ 0 | $ 0 |
Derivative [Member]
|
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Fair value of derivatives classified as Level 3 in the fair value hierarchy | ||
Balance | 5.9 | 5.8 |
Realized and unrealized gains (losses) | 0 | 0 |
Purchases and issuances | 16.1 | 17.9 |
Settlements | (16.3) | (17.8) |
Transfers in and/or out of Level 3 | 0 | 0 |
Balance | $ 5.7 | $ 5.9 |
Asset Retirement Obligations (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Change in Asset Retirement Obligations | ||
Balance as of January 1 | $ 52.6 | $ 57.9 |
Liabilities incurred | 0.6 | 0 |
Liabilities settled | (2.2) | (2.5) |
Accretion | 3.0 | 3.1 |
Cash Flow Revisions | 1.5 | (5.9) |
Balance as of December 31 | $ 55.5 | $ 52.6 |
Commitments and Contingencies (Details) (USD $)
|
12 Months Ended | 105 Months Ended | 129 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2011
Capital Expenditures [Member]
|
Dec. 31, 2011
Manufactured Gas Plant Sites [Member]
|
Dec. 31, 2011
Coal combustion product landfill sites [Member]
|
Dec. 31, 2010
Coal combustion product landfill sites [Member]
|
Dec. 31, 2009
Coal combustion product landfill sites [Member]
|
Dec. 31, 2011
Bechtel, contractor of the Oak Creek expansion [Member]
|
Dec. 31, 2011
Bechtel's first claim [Member]
|
Dec. 31, 2011
Bechtel's second claim [Member]
|
Dec. 31, 2011
EPA - Consent Decree [Member]
|
Dec. 31, 2011
EPA - Consent Decree [Member]
|
Dec. 31, 2013
EPA - Consent Decree [Member]
|
Dec. 08, 2011
Valley Power Plant [Member]
T
|
Dec. 31, 2011
Cash Balance Pension Plan [Member]
|
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Commitment and Contingencies (Textuals) [Abstract] | ||||||||||||||
Estimated total capital expenditures commitment amount | $ 740,200,000 | |||||||||||||
Reserves related to future remediation costs | 37,500,000 | |||||||||||||
Expense related to environmental remediation | 200,000 | 400,000 | 300,000 | 1,000,000,000 | ||||||||||
Reserves related to landfill sites | 0 | |||||||||||||
Loss Contingency, Damages Sought, Value | 517,500,000 | 445,500,000 | 72,000,000 | |||||||||||
Payments for legal settlements | 67,000,000 | |||||||||||||
Loss contingency, settlement agreement, terms | The remaining milestone payments are tied to final acceptance of the units. In addition, Bechtel received 120 days of schedule relief for OC 1 and 60 days for OC 2. Therefore, the guaranteed in-service date of September 29, 2009 for OC 1 was extended to January 27, 2010, and the guaranteed in-service date of September 29, 2010 for OC 2 was extended to November 28, 2010. Bechtel subsequently received an additional 21 days of schedule relief for OC 2 as part of a change order signed concurrent with the turnover of OC 2. Therefore, the total schedule relief granted to Bechtel was 120 days for OC 1 and 81 days for OC 2. | |||||||||||||
Future minimum payments for the next five years and thereafter for our operating lease contracts | ||||||||||||||
2012 | 16,300,000 | |||||||||||||
2013 | 6,500,000 | |||||||||||||
2014 | 3,900,000 | |||||||||||||
2015 | 4,000,000 | |||||||||||||
2016 | 3,700,000 | |||||||||||||
Thereafter | 29,000,000 | |||||||||||||
Total | 63,400,000 | |||||||||||||
Commitments and Contingencies (Textuals) [Abstract] | ||||||||||||||
Estimated future detailed site investigation and remediation costs, minimum | 21,000,000 | |||||||||||||
Estimated Future detailed site investigation and remediation costs, maximum | 65,000,000 | |||||||||||||
Period for future costs of detailed site investigation and remediation costs | over the next ten years | |||||||||||||
Expense related to environmental remediation | 200,000 | 400,000 | 300,000 | 1,000,000,000 | ||||||||||
Number of coal units retired | 4 | 4 | ||||||||||||
Estimated Future Environmental Remediation Expense | $ 1,100,000,000 | |||||||||||||
Responsibility for amounts paid under the settlement agreement in percentage | 85.00% | |||||||||||||
Period to recover remediation cost of manufactured gas plant sites | 5 | |||||||||||||
Period of Total cost related to installation of air quality controls and retirement of coal units under consent decree | 10 | |||||||||||||
Loss Contingency, Settlement Agreement, Consideration | In November 2011, we entered into a settlement agreement with the plaintiffs for $45.0 million, and the court promptly issued an order preliminarily approving the settlement. As part of the settlement agreement, we agreed to class certification for all similarly situated plaintiffs. | |||||||||||||
Loss Contingency Range Of Possible Loss, Per Share, Maximum | $ 0.04 | |||||||||||||
Target Annual Sulfur Dioxide Emissions Threshold | 4,500 | |||||||||||||
Target Reduction in Sulfur Dioxide Emissions, As a Percent | 65.00% |
Commitments and Contingencies (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Commitments and Contingencies (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Future minimum payments for the next five years and thereafter for our operating lease contracts | Future minimum payments for the next five years and thereafter for our operating lease contracts are as follows:
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Regulatory Assets and Liabilities (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Regulatory Assets and Liabilities (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory assets and liabilities | Our regulatory assets and liabilities as of December 31 consist of:
|
Supplemental Cash Flow Information (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Supplemental Cash Flow Information (Textuals) | |||
Interest paid, net of amounts capitalized | $ 234.0 | $ 198.0 | $ 152.3 |
Income taxes paid, net of refunds | (109.1) | 166.7 | (27.9) |
Accounts payable related to capital expenditures | 16.7 | 18.2 | 14.7 |
Amortization of deferred revenue | $ 54.4 | $ 34.6 | $ 8.0 |
Segment Reporting (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
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Financial information of reportable operating segments | ||||||||||||
Operating Revenues | $ 4,486.4 | [1] | $ 4,202.5 | [1] | $ 4,100.9 | [1] | ||||||
Depreciation and Amortization | 330.2 | 305.6 | 343.0 | |||||||||
Operating Income (Loss) | 887.3 | 810.4 | 660.3 | |||||||||
Equity in Earnings of Unconsolidated Affiliates | 61.6 | 59.9 | 58.9 | |||||||||
Interest Expense, net | 235.8 | 206.4 | 156.7 | |||||||||
Income Tax Expense (Benefit) | 263.9 | 249.9 | 215.5 | |||||||||
Income from Discontinued Operations, Net of Tax | 13.4 | 2.1 | 6.7 | |||||||||
Net Income (Loss) | 526.2 | 456.5 | 382.4 | |||||||||
Capital Expenditures | 830.8 | 798.2 | 814.6 | |||||||||
Total Assets | 13,862.1 | [2] | 13,059.8 | [2] | 12,697.9 | [2] | ||||||
Utility Energy [Member]
|
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Financial information of reportable operating segments | ||||||||||||
Operating Revenues | 4,431.5 | [1] | 4,165.3 | [1] | 4,092.0 | [1] | ||||||
Depreciation and Amortization | 257.0 | 251.4 | 313.1 | |||||||||
Operating Income (Loss) | 544.8 | 564.0 | 550.9 | |||||||||
Equity in Earnings of Unconsolidated Affiliates | 62.5 | 60.1 | 59.1 | |||||||||
Interest Expense, net | 110.0 | 117.2 | 117.5 | |||||||||
Income Tax Expense (Benefit) | 182.7 | 192.1 | 186.7 | |||||||||
Income from Discontinued Operations, Net of Tax | 0 | 0.7 | 1.8 | |||||||||
Net Income (Loss) | 376.3 | 354.2 | 334.2 | |||||||||
Capital Expenditures | 792.2 | 687.0 | 547.0 | |||||||||
Total Assets | 13,433.5 | [2] | 11,997.4 | [2] | 10,784.6 | [2] | ||||||
Non-Utility Energy [Member]
|
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Financial information of reportable operating segments | ||||||||||||
Operating Revenues | 435.1 | [1] | 320.2 | [1] | 163.1 | [1] | ||||||
Depreciation and Amortization | 72.5 | 53.5 | 29.2 | |||||||||
Operating Income (Loss) | 348.9 | 252.4 | 120.1 | |||||||||
Equity in Earnings of Unconsolidated Affiliates | 0 | 0 | 0 | |||||||||
Interest Expense, net | 66.7 | 40.3 | 14.7 | |||||||||
Income Tax Expense (Benefit) | 112.8 | 84.9 | 43.4 | |||||||||
Income from Discontinued Operations, Net of Tax | 0 | 0 | 0 | |||||||||
Net Income (Loss) | 169.8 | 128.4 | 63.8 | |||||||||
Capital Expenditures | 31.2 | 109.3 | 253.2 | |||||||||
Total Assets | 2,949.0 | [2] | 2,914.2 | [2] | 2,754.1 | [2] | ||||||
Corporate and Other [Member]
|
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Financial information of reportable operating segments | ||||||||||||
Operating Revenues | 0.9 | [1],[3] | 0.5 | [1],[3] | 0.2 | [1],[3] | ||||||
Depreciation and Amortization | 0.7 | [3] | 0.7 | [3] | 0.7 | [3] | ||||||
Operating Income (Loss) | (6.4) | [3] | (6.0) | [3] | (10.7) | [3] | ||||||
Equity in Earnings of Unconsolidated Affiliates | (0.9) | [3] | (0.2) | [3] | (0.2) | [3] | ||||||
Interest Expense, net | 59.5 | [3] | 52.8 | [3] | 54.3 | [3] | ||||||
Income Tax Expense (Benefit) | (31.6) | [3] | (27.1) | [3] | (14.6) | [3] | ||||||
Income from Discontinued Operations, Net of Tax | 13.4 | [3] | 1.4 | [3] | 4.9 | [3] | ||||||
Net Income (Loss) | 525.9 | [3] | 456.4 | [3] | 382.3 | [3] | ||||||
Capital Expenditures | 7.4 | [3] | 1.9 | [3] | 14.4 | [3] | ||||||
Total Assets | 4,694.8 | [2],[3] | 5,075.9 | [2],[3] | 5,385.5 | [2],[3] | ||||||
Reconciling Items [Member]
|
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Financial information of reportable operating segments | ||||||||||||
Operating Revenues | (381.1) | [1] | (283.5) | [1] | (154.4) | [1] | ||||||
Depreciation and Amortization | 0 | 0 | 0 | |||||||||
Operating Income (Loss) | 0 | 0 | 0 | |||||||||
Equity in Earnings of Unconsolidated Affiliates | 0 | 0 | 0 | |||||||||
Interest Expense, net | (0.4) | (3.9) | (29.8) | |||||||||
Income Tax Expense (Benefit) | 0 | 0 | 0 | |||||||||
Income from Discontinued Operations, Net of Tax | 0 | 0 | 0 | |||||||||
Net Income (Loss) | (545.8) | (482.5) | (397.9) | |||||||||
Capital Expenditures | 0 | 0 | 0 | |||||||||
Total Assets | (7,215.2) | [2] | (6,927.7) | [2] | (6,226.3) | [2] | ||||||
Elimination [Member]
|
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Financial information of reportable operating segments | ||||||||||||
Total Assets | $ 2,369.0 | $ 1,785.9 | $ 889.1 | |||||||||
|
Condensed Parent Company Financial Statements (Details 6) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2011
|
Dec. 31, 2010
|
---|---|---|
Financial Instruments | ||
Long-term debt including current portion, carrying value | $ 4,541.4 | $ 4,288.0 |
Long-term debt including current portion, fair value | 5,179.9 | 4,578.0 |
Carrying Amount [Member] | Wisconsin Energy Corporation [Member]
|
||
Financial Instruments | ||
Long-term debt including current portion, carrying value | 700.0 | 1,150.0 |
Fair Value [Member] | Wisconsin Energy Corporation [Member]
|
||
Financial Instruments | ||
Long-term debt including current portion, fair value | $ 750.8 | $ 1,217.4 |
Condensed Parent Company Financial Statements (Details 1) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
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---|---|---|---|---|---|---|---|---|---|
Current Assets | |||||||||
Cash and cash equivalents | $ 14.1 | $ 24.5 | $ 20.2 | $ 31.7 | |||||
Prepaid taxes and other | 140.3 | 125.6 | |||||||
Total Current Assets | 1,426.2 | 1,331.1 | |||||||
Property and Investments | |||||||||
Investment in subsidiary companies | 349.7 | 330.5 | |||||||
Other | 201.6 | 218.9 | |||||||
Total Deferred Charges and Other Assets | 1,882.2 | 1,750.9 | |||||||
Total Assets | 13,862.1 | [1] | 13,059.8 | [1] | 12,697.9 | [1] | |||
Current Liabilities | |||||||||
Short-term debt | 669.9 | 657.9 | |||||||
Other | 230.4 | 186.1 | |||||||
Total Current Liabilities | 1,364.5 | 1,721.1 | |||||||
Long-term debt | 4,614.3 | 3,932.0 | |||||||
Other Long-term liabilities | 314.3 | 376.9 | |||||||
Stockholder's equity | 3,963.3 | 3,802.1 | 3,566.9 | 3,336.9 | |||||
Total Capitalization and Liabilities | 13,862.1 | 13,059.8 | |||||||
Wisconsin Energy Corporation [Member]
|
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Current Assets | |||||||||
Cash and cash equivalents | 0.5 | 0.6 | 0.7 | 1.9 | |||||
Accounts and notes receivable from associated companies | 55.8 | 38.6 | |||||||
Prepaid taxes and other | 2.2 | 93.8 | |||||||
Total Current Assets | 58.5 | 133.0 | |||||||
Property and Investments | |||||||||
Investment in subsidiary companies | 4,906.9 | 5,242.2 | |||||||
Other | 2.6 | 70.3 | |||||||
Total Property and Investments | 4,909.5 | 5,312.5 | |||||||
Total Deferred Charges and Other Assets | 433.3 | 104.0 | |||||||
Total Assets | 5,401.3 | 5,549.5 | |||||||
Current Liabilities | |||||||||
Long-term debt due currently | 0 | 450.0 | |||||||
Short-term debt | 146.5 | 263.0 | |||||||
Notes payable due associated companies | 136.8 | 132.9 | |||||||
Other | 327.3 | 34.3 | |||||||
Total Current Liabilities | 610.6 | 880.2 | |||||||
Long-term debt | 693.6 | 692.9 | |||||||
Other Long-term liabilities | 133.8 | 174.3 | |||||||
Stockholder's equity | 3,963.3 | 3,802.1 | |||||||
Total Capitalization and Liabilities | $ 5,401.3 | $ 5,549.5 | |||||||
|
Valuation and Qualifying Accounts (Details) (Allowance for Doubtful Accounts [Member], USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Allowance for Doubtful Accounts [Member]
|
|||
Valuation and Qualifying Accounts | |||
Balance at Beginning of the Period | $ 58.1 | $ 57.9 | $ 48.8 |
Expense | 85.8 | 86.2 | 54.6 |
Deferral | (35.9) | (32.5) | 12.9 |
Net Write-offs | (46.3) | (53.5) | (58.4) |
Balance at End of the Period | $ 61.7 | $ 58.1 | $ 57.9 |
Related Parties (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Related Party Transaction [Line Items] | |||
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | $ 62.5 | $ 60.1 | $ 59.1 |
Distributions from transmission affiliate | 49.7 | 49.3 | 46.6 |
American Transmission Company [Member]
|
|||
Provided and received services from the associated companies | |||
Services Received, -ATC | 219.2 | 220.8 | 196.0 |
Receivable and payable balances with ATC | |||
Services Provided, -ATC | 5.4 | 3.8 | |
Services Received, -ATC | 18.1 | 18.5 | |
Related Parties (Textuals) [Abstract] | |||
Equity interest in ATC | 26.20% | ||
Services [Member] | American Transmission Company [Member]
|
|||
Provided and received services from the associated companies | |||
Services Provided, -ATC | 10.8 | 16.9 | 22.3 |
Receivable and payable balances with ATC | |||
Services Provided, -ATC | $ 0.7 | $ 0.9 |
Fair Value Measurements (Details 2) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2011
|
Dec. 31, 2010
|
---|---|---|
Financial Instruments | ||
Preferred Stock | $ 30.4 | $ 30.4 |
Long-term debt including current portion, carrying value | 4,541.4 | 4,288.0 |
Long-term debt including current portion, fair value | 5,179.9 | 4,578.0 |
Fair Value [Member]
|
||
Financial Instruments | ||
Preferred Stock | 25.1 | 23.5 |
Carrying Amount [Member]
|
||
Financial Instruments | ||
Preferred Stock | $ 30.4 | $ 30.4 |
Segment Reporting
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING Our operating segments as of December 31, 2011 include a utility energy segment and a non-utility energy segment. We have organized our operating segments based upon the regulatory environment in which our utility subsidiaries operate and on how management makes decisions and measures performance. The segments are managed separately because each business requires different technology and marketing strategies. The accounting policies of the reportable operating segments are the same as those described in Note A. Our utility energy segment primarily includes our electric and natural gas utility operations. Our electric utility operation engages in the generation, distribution and sale of electric energy in southeastern (including metropolitan Milwaukee), east central and northern Wisconsin and in the Upper Peninsula of Michigan. Our natural gas utility operation is engaged in the purchase, distribution and sale of natural gas to retail customers and the transportation of customer-owned natural gas throughout Wisconsin. Our non-utility energy segment derives its revenues primarily from the ownership of electric power generating facilities for long-term lease to Wisconsin Electric. Summarized financial information concerning our operating segments for each of the three years ended December 31, 2011 is shown in the following table. The segment information below includes income from discontinued operations as a result of the sale of Edison Sault in May 2010 and the water utility in April 2009.
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Summary of Significant Accounting Policies (Details 3) (USD $)
In Millions, except Per Share data, unless otherwise specified |
12 Months Ended | ||
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Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2009
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Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fuel Cost Tolerance Range Set by Regulators, Percent | 2.00% | ||
Regulatory liabilities | $ 915.9 | $ 899.1 | |
Fair value of stock options | |||
Dividend yield | 3.90% | 3.70% | 3.00% |
Expected volatility | 19.00% | 20.30% | 25.90% |
Expected life (years) | 5.5 | 5.9 | 6.2 |
Expected forfeiture rate | 2.00% | 2.00% | 2.00% |
Weighted average fair value of our stock options granted | $ 3.17 | $ 3.36 | $ 4.01 |
Other Income and Deductions, Net | |||
AFUDC - Equity | 59.4 | 32.5 | 16.0 |
Gain on Property Sales | 2.4 | 4.4 | 1.7 |
Other, net | 0.9 | 3.3 | 10.8 |
Other Income and Deductions, net | 62.7 | 40.2 | 28.5 |
Allowance For Funds Used During Construction | |||
AFUDC - Debt | 24.7 | 13.5 | 6.7 |
AFUDC - Equity | 59.4 | 32.5 | 16.0 |
Inventories | |||
Fossil Fuel | 169.2 | 182.4 | |
Materials and Supplies | 114.1 | 105.2 | |
Natural Gas in Storage | 98.7 | 91.5 | |
Total | 382.0 | 379.1 | |
Summary Of Significant Accounting Policies (Additional) (Textuals) [Abstract] | |||
Symmetrical Fuel Cost Tolerance Range Set By Regulatory Authority | Our retail electric rates in Wisconsin are established by the PSCW and include base amounts for fuel and purchased power costs. Beginning in January 2011, the electric fuel rules in Wisconsin allow us to defer, for subsequent rate recovery or refund, any under-collection or over-collection of fuel costs that are outside of the symmetrical fuel cost tolerance, which the PSCW set at plus or minus 2% of the approved fuel cost plan. The deferred amounts are subject to an excess revenues test. Our retail gas rates include monthly adjustments which permit the recovery or refund of actual purchased gas costs. We defer any difference between actual gas costs incurred (adjusted for a sharing mechanism) and costs recovered through rates as a current asset or liability. The deferred balance is returned to or recovered from customers at intervals throughout the year. For information regarding revenue recognition for We Power, see Note E. | ||
Depreciation percentage of average depreciable utility plant | 2.80% | 2.80% | 3.70% |
Maximum duration to recover outstanding regulatory assets | 20 | ||
Maximum regulatory current assets and current liabilities amortization period | 1 | ||
Impairment charges related to goodwill | 0 | ||
Long-lived assets held for sale | $ 0 | ||
Expiry period for stock options granted | no later than 10 years from grant date | ||
Maximum [Member]
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Fair value of stock options | |||
Risk-free interest rate | 3.40% | 3.90% | 2.50% |
Minimum [Member]
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Fair value of stock options | |||
Risk-free interest rate | 0.20% | 0.20% | 0.30% |
Benefits (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Benefits (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details about pension and OPEB plans | The following table presents details about our pension and OPEB plans:
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Amounts recognized in Consolidated Balance Sheets | Amounts recognized in our Consolidated Balance Sheets as of December 31 related to the funded status of the benefit plans consisted of:
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Amounts not yet been recognized in net periodic benefit cost | The following table shows the amounts that have not yet been recognized in our net periodic benefit cost as of December 31 and are recorded as a regulatory asset on our balance sheet:
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Components of net periodic pension and OPEB costs | The components of net periodic pension and OPEB costs for the years ended December 31 are as follows:
In addition to the costs above, in 2011 we recorded net pension costs of less than $0.04 per share related to the settlement of pension litigation. See Note R -- Commitments and Contingencies in this report. The charges were after considering insurance and reserves established in the prior year.
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A one-percentage-point change in assumed health care cost trend rates effects | A one-percentage-point change in assumed health care cost trend rates would have the following effects:
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Summary of fair value of plan assets by asset category within fair value hierarchy | The following table summarizes the fair value of our pension plan assets by asset category within the fair value hierarchy (for further level information, see Note M):
The following table summarizes the fair value of our OPEB plan assets by asset category within the fair value hierarchy:
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Employer contributions to defined benefit plan | Cash Flows:
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Expected benefit payments in future | The following table identifies our expected benefit payments over the next 10 years:
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Guarantees (Details) (USD $)
|
Dec. 31, 2011
|
---|---|
Guarantees to provide financial and performance assurance to third parties | |
Guarantees, Maximum Potential Future Payments | $ 2,700,000 |
Guarantees, Outstanding | 100,000 |
Guarantees, Liability Recorded | 0 |
Financial Standby Letter of Credit [Member]
|
|
Guarantees to provide financial and performance assurance to third parties | |
Guarantees, Maximum Potential Future Payments | 1,600,000 |
Guarantees, Outstanding | 100,000 |
Guarantees, Liability Recorded | $ 0 |
Common Equity (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Common Equity (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded pre-tax share-based compensation expense and related tax benefit for share-based awards made to employees and directors | The following table summarizes recorded pre-tax share-based compensation expense and the related tax benefit for share-based awards made to our employees and directors as of December 31:
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Stock option activity | The following is a summary of our stock option activity during 2011:
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Stock options outstanding | The following table summarizes information about stock options outstanding as of December 31, 2011:
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Non-vested options | The following table summarizes information about our non-vested options during 2011:
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Restricted stock activity | Restricted Shares: The Compensation Committee has also approved restricted stock grants to certain key employees and directors. The following restricted stock activity occurred during 2011:
|
Regulatory Assets and Liabilities (Details 1) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ 915.9 | $ 899.1 |
Regulatory Assets and Liabilities (Textuals) | ||
Regulatory assets and liabilities, current expected to be amortization period | within one year | |
Deferred cost of removal obligations [Member]
|
||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 728.2 | 723.9 |
Escrowed Bad Debt Costs [Member]
|
||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 69.0 | 18.5 |
Other, net [Member]
|
||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ 118.7 | $ 156.7 |
Derivative Instruments (Details 2) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2011
|
Dec. 31, 2010
|
---|---|---|
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities related to derivatives | $ 915.9 | $ 899.1 |
Derivative [Member]
|
||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities related to derivatives | $ 21.7 | $ 15.3 |
Common Equity (Details 3) (USD $)
|
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Non-vested options | ||||
Outstanding, Shares, Beginning Balance | 10,638,750.0 | |||
Outstanding, Weighted-Average Exercise Price, Beginning | $ 21.65 | |||
Granted, shares | 938,770 | |||
Granted, Weighted-Average Exercise Price | $ 3.17 | $ 3.36 | $ 4.01 | |
Outstanding, Shares, Ending Balance | 10,638,750.0 | |||
Outstanding, Weighted-Average Exercise Price, Ending | $ 21.65 | |||
Non-Vested Options [Member]
|
||||
Non-vested options | ||||
Outstanding, Shares, Beginning Balance | 5,272,570.0 | |||
Outstanding, Weighted-Average Exercise Price, Beginning | $ 4.27 | |||
Granted, shares | 458,180.0 | |||
Granted, Weighted-Average Exercise Price | $ 3.17 | |||
Vested, shares | (2,626,980.0) | |||
Vested, Weighted-Average Exercise Price | $ 4.64 | |||
Forfeited, shares | 0.0 | |||
Forfeited, Weighted-Average Exercise Price | $ 0.00 | |||
Outstanding, Shares, Ending Balance | 3,103,770.0 | |||
Outstanding, Weighted-Average Exercise Price, Ending | $ 3.78 |
Consolidated Statements of Capitalization (Parenthetical) (USD $)
|
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Debentures (unsecured), 4.50% due 2013 [Member]
|
||
Debt instrument stated interest rate (percentage) | 4.50% | 4.50% |
Debentures (unsecured), 6.60% due 2013 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.60% | 6.60% |
Debentures (unsecured), 6.00% due 2014 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.00% | 6.00% |
Debentures (unsecured), 5.20% due 2015 [Member]
|
||
Debt instrument stated interest rate (percentage) | 5.20% | 5.20% |
Debentures (unsecured), 6.25% due 2015 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.25% | 6.25% |
Debentures (unsecured), 4.25% due 2019 [Member]
|
||
Debt instrument stated interest rate (percentage) | 4.25% | 4.25% |
Debentures (unsecured) 2.95% due 2021 [Member]
|
||
Debt instrument stated interest rate (percentage) | 2.95% | 2.95% |
Debentures (unsecured), 6-1/2% due 2028 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.50% | 6.50% |
Debentures (unsecured), 5.625% due 2033 [Member]
|
||
Debt instrument stated interest rate (percentage) | 5.625% | 5.625% |
Debentures (unsecured), 5.90% due 2035 [Member]
|
||
Debt instrument stated interest rate (percentage) | 5.90% | 5.90% |
Debentures (unsecured), 5.70% due 2036 [Member]
|
||
Debt instrument stated interest rate (percentage) | 5.70% | 5.70% |
Debentures (unsecured), 6-7/8% due 2095 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.875% | 6.875% |
Notes (secured, nonrecourse), 4.81% effective rate due 2030 [Member]
|
||
Debt instrument stated interest rate (percentage) | 4.81% | 4.81% |
Notes (secured, nonrecourse), 4.91% due 2010-2030 [Member]
|
||
Debt instrument stated interest rate (percentage) | 4.91% | 4.91% |
Notes (secured, nonrecourse), 5.209% due 2010-2030 [Member]
|
||
Debt instrument stated interest rate (percentage) | 5.209% | 5.209% |
Notes (secured, nonrecourse), 4.673% due 2011-2031 [Member]
|
||
Debt instrument stated interest rate (percentage) | 4.673% | 4.673% |
Notes (secured, nonrecourse), 6.00% due 2011-2033 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.00% | 6.00% |
Notes (secured, nonrecourse), 6.09% due 2030-2040 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.09% | 6.09% |
Notes (secured, nonrecourse), 5.848% due 2031-2041 [Member]
|
||
Debt instrument stated interest rate (percentage) | 5.848% | 5.848% |
Notes (unsecured), 6.50% due 2011 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.50% | 6.50% |
Notes (unsecured), 6.51% due 2013 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.51% | 6.51% |
Notes (unsecured), 6.94% due 2028 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.94% | 6.94% |
Notes (unsecured), 0.504% variable rate due 2016 [Member]
|
||
Long-term debt, percentage bearing variable interest rate | 0.504% | 0.504% |
Notes (unsecured), 0.504% variable rate due 2030 [Member]
|
||
Long-term debt, percentage bearing variable interest rate | 0.504% | 0.504% |
Notes (unsecured), 6.20% due 2033 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.20% | 6.20% |
Junior Notes (unsecured), 6.25% due 2067 [Member]
|
||
Debt instrument stated interest rate (percentage) | 6.25% | 6.25% |
Wisconsin Energy Corporation [Member]
|
||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Wisconsin Electric [Member]
|
||
Preferred stock, par value | $ 25 | $ 25 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Six Per Cent. Preferred Stock [Member] | Wisconsin Electric [Member]
|
||
Preferred stock, par value | $ 100 | $ 100 |
Preferred stock, shares authorized | 45,000 | 45,000 |
Preferred stock, shares outstanding | 44,498 | 44,498 |
Preferred stock dividend rate, percentage | 6.00% | 6.00% |
Serial preferred stock, 3.60% Series Redeemable [Member] | Wisconsin Electric [Member]
|
||
Preferred stock, par value | $ 100 | $ 100 |
Preferred stock, shares authorized | 2,286,500 | 2,286,500 |
Preferred stock, shares outstanding | 260,000 | 260,000 |
Preferred stock dividend rate, percentage | 3.60% | 3.60% |
Preferred stock, redeemable per share | $ 101 | $ 101 |
Common Equity (Details 4) (USD $)
|
1 Months Ended | 12 Months Ended | 1 Months Ended | 8 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2011
Stock options [Member]
|
Dec. 31, 2011
Share Repurchases to Fulfill Exercised Stock Options and Restricted Stock Awards [Member]
|
Dec. 31, 2010
Share Repurchases to Fulfill Exercised Stock Options and Restricted Stock Awards [Member]
|
Dec. 31, 2009
Share Repurchases to Fulfill Exercised Stock Options and Restricted Stock Awards [Member]
|
May 31, 2011
Share Repurchase Plan, 2011 [Member]
|
Dec. 31, 2011
Share Repurchase Plan, 2011 [Member]
|
|
Common Equity (Textuals) | ||||||||||
Common stock shares, Authorized | 325,000,000 | 325,000,000 | ||||||||
Common stock shares, Outstanding | 230,486,804 | 233,771,194 | ||||||||
Stock options awarded under long-term incentive compensation | 938,770 | 458,180.0 | ||||||||
Exercise price of non qualified stock options | $ 34.88 | |||||||||
Intrinsic value of options exercised | $ 36,100,000 | $ 62,100,000 | $ 12,000,000 | |||||||
Exercise price of the stock option on the grant date | no less than 100% of the common stock's fair market value | |||||||||
Mimimum period after grant that stock options can be exercised | 6 months | |||||||||
Option grants vesting period in years | 3 years | |||||||||
Expiration of options from time of grant | 10 years | |||||||||
Minimum percentage award based on performance unit | 0.00 | |||||||||
Maximum percentage award based on performance unit | 1.75 | |||||||||
Shares Purchased by agents from open market | 3,000,000 | 5,800,000 | 1,400,000 | |||||||
Amount paid for Shares Purchased by agents from open market | 193,900,000 | 156,600,000 | 29,600,000 | 93,900,000 | 156,600,000 | 29,600,000 | ||||
Exercise of stock options | 54,400,000 | 90,900,000 | 17,000,000 | 54,400,000 | 90,900,000 | 17,000,000 | ||||
Maximum period to defer interest payments on the Junior Notes | We have the option to defer interest payments on the Junior Notes, from time to time, for one or more periods of up to 10 consecutive years per period. During any period in which we defer interest payments, we may not declare or pay any dividends or distributions on, or redeem, repurchase or acquire, our common stock. | |||||||||
Ability to declare common dividends limited to Percentage of Net Income by Wisconsin Electric | limited to 75% or 50% | |||||||||
Wisconsin Electric's common stock equity to total capitalization | is less than 25% and 20% | |||||||||
3.60% Serial Preferred Stock | 3.60% | |||||||||
Maximum percentage of equity method investment | 50.00% | |||||||||
Equity method investment | 3,500,000,000 | |||||||||
Percentage of equity method investment exceeding consolidated net assets | 25.00% | |||||||||
Stock Repurchase Program, Authorized Amount | 300,000,000 | |||||||||
Stock Repurchased and Retired During Period, Shares | 3,200,000 | |||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 30.79 | |||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 100,000,000 |