Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies (Tables) [Abstract]

Other Income and Deductions, Net: We recorded the following items in Other Income and Deductions, net for the years ended December 31:



Other Income and Deductions, net	2013		2012			2011
	(Millions of Dollars)

AFUDC - Equity	$	18.3	$	35.3		$	59.4
Other, net	0.5		(0.5		)	3.3
Total Other Income and Deductions, net	$	18.8	$	34.8		$	62.7

Property In Service By Segment

Property and Depreciation: We record property, plant and equipment at cost. Cost includes material, labor, overheads and capitalized interest. Utility property also includes AFUDC - Equity. Additions to and significant replacements of property are charged to property, plant and equipment at cost; minor items are charged to maintenance expense. The cost of depreciable utility property less salvage value is charged to accumulated depreciation when property is retired.

We recorded the following property in service by segment as of December 31:



Property In Service	2013		2012
	(Millions of Dollars)

Utility Energy	$	11,779.8	$	11,080.9
Non-Utility Energy	3,091.3		3,068.5
Other	95.2		89.4
Total	$	14,966.3	$	14,238.8

Our utility depreciation rates are certified by the PSCW and MPSC and include estimates for salvage value and removal costs. Depreciation as a percent of average depreciable utility plant was 2.9% in 2013 and 2012, and 2.8% in 2011.

We depreciate our We Power assets over the estimated useful life of the various property components. The components have useful lives of between 10 to 45 years for PWGS 1 and PWGS 2, and 10 to 55 years for OC 1 and OC 2.

Our regulated utilities collect in their rates amounts representing future removal costs for many assets that do not have an associated Asset Retirement Obligation (ARO). We record a regulatory liability on our balance sheet for the estimated amounts we have collected in rates for future removal costs less amounts we have spent in removal activities. This regulatory liability was $724.5 million as of December 31, 2013 and $725.0 million as of December 31, 2012.

We recorded the following Construction Work in Progress (CWIP) by segment as of December 31:



CWIP	2013		2012
	(Millions of Dollars)

Utility Energy	$	132.7	$	298.2
Non-Utility Energy	16.5		13.3
Other	0.4		4.4
Total	$	149.6	$	315.9

Construction Work in Progress (CWIP) by segment

We recorded the following Construction Work in Progress (CWIP) by segment as of December 31:



CWIP	2013		2012
	(Millions of Dollars)

Utility Energy	$	132.7	$	298.2
Non-Utility Energy	16.5		13.3
Other	0.4		4.4
Total	$	149.6	$	315.9

Allowance For Funds Used During Construction

Our regulated utility segment recorded the following AFUDC for the years ended December 31:



	2013		2012		2011
	(Millions of Dollars)

AFUDC - Debt	$	7.7	$	14.7	$	24.7
AFUDC - Equity	$	18.3	$	35.3	$	59.4

Inventories

Materials, Supplies and Inventories: Our inventory as of December 31 consists of:



Materials, Supplies and Inventories	2013		2012
	(Millions of Dollars)

Fossil Fuel	$	117.7	$	165.5
Materials and Supplies	133.9		121.9
Natural Gas in Storage	77.8		73.3
Total	$	329.4	$	360.7

Substantially all fossil fuel, materials and supplies, and natural gas in storage inventories are recorded using the weighted-average cost method of accounting.

Fair value of stock options

The fair value of our stock options was calculated using a binomial option-pricing model using the following weighted-average assumptions:



	2013	2012	2011
Risk-free interest rate	0.1% - 1.9%	0.1% - 2.0%	0.2% - 3.4%
Dividend yield	3.7%	3.9%	3.9%
Expected volatility	18.0%	19.0%	19.0%
Expected life (years)	5.9	5.9	5.5
Expected forfeiture rate	2.0%	2.0%	2.0%
Weighted-average fair value
of our stock options granted	$3.45	$3.34	$3.17

Property In Services By Segment [Text Block]

We recorded the following property in service by segment as of December 31:



Property In Service	2013		2012
	(Millions of Dollars)

Utility Energy	$	11,779.8	$	11,080.9
Non-Utility Energy	3,091.3		3,068.5
Other	95.2		89.4
Total	$	14,966.3	$	14,238.8

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

+ References+ Details

- Definition

Disclosure of accounting policy for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, basis of assets, depreciation and depletion methods used, including composite deprecation, estimated useful lives, capitalization policy, accounting treatment for costs incurred for repairs and maintenance, capitalized interest and the method it is calculated, disposals and impairments.

+ References+ Details