Regulatory Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

The following regulatory assets were reflected on our balance sheets as of December 31:



(in millions)	2016		2015		See Note
Regulatory assets ^{(1) (2)}
Unrecognized pension and OPEB costs ⁽³⁾	$	1,252.1	$	1,306.4	17
Environmental remediation costs ⁽⁴⁾	702.7		697.0		18
Income tax related items ⁽⁵⁾	285.1		248.3
Electric transmission costs	234.1		191.5		22
SSR	188.1		86.1		22
AROs	179.2		173.0		9
We Power generation ⁽⁶⁾	54.1		45.4
Energy efficiency programs ⁽⁷⁾	36.7		48.7
Derivatives	17.9		70.4		1(t)
Other, net	188.3		234.9
Total regulatory assets	$	3,138.3	$	3,101.7

Balance Sheet Presentation
Current assets ⁽⁸⁾	$	50.4	$	37.1
Regulatory assets	3,087.9		3,064.6
Total regulatory assets	$	3,138.3	$	3,101.7


⁽¹⁾	Based on prior and current rate treatment, we believe it is probable that our utilities will continue to recover from customers the regulatory assets in the table.


⁽²⁾	As of December 31, 2016, we had $32.7 million of regulatory assets not earning a return and $204.0 million of regulatory assets earning a return based on short-term interest rates. The regulatory assets not earning a return relate to certain environmental remediation costs, the recovery of which depends on the timing of the actual expenditures.


⁽³⁾	Represents the unrecognized future pension and OPEB costs resulting from actuarial gains and losses on defined benefit and OPEB plans. We are authorized recovery of this regulatory asset over the average remaining service life of each plan.


⁽⁴⁾	As of December 31, 2016, we had not yet made cash expenditures for $633.6 million of these environmental remediation costs.


⁽⁵⁾	Represents adjustments related to deferred income taxes, which are recovered in rates as the temporary differences that generated the income tax benefit reverse.


⁽⁶⁾	Represents amounts recoverable from customers related to WE's costs of the generating units leased from We Power, including subsequent capital additions.


⁽⁷⁾	Represents amounts recoverable from customers related to programs at the utilities designed to meet energy efficiency standards.


⁽⁸⁾	Short-term regulatory assets are recorded in accounts receivable and unbilled revenues on our balance sheets.

The following regulatory liabilities were reflected on our balance sheets as of December 31:



(in millions)	2016		2015		See Note
Regulatory liabilities
Removal costs ⁽¹⁾	$	1,262.7	$	1,209.6
Mines deferral ⁽²⁾	70.2		31.6
Energy costs refundable through rate adjustments ⁽³⁾	88.7		76.9
Unrecognized pension and OPEB costs ⁽⁴⁾	63.0		26.3		17
Derivatives	41.1		12.6		1(t)
Uncollectible expense ⁽⁵⁾	36.1		31.8
Other, net	35.4		37.2
Total regulatory liabilities	$	1,597.2	$	1,426.0

Balance Sheet Presentation
Other current liabilities	$	33.4	$	33.8
Regulatory liabilities	1,563.8		1,392.2
Total regulatory liabilities	$	1,597.2	$	1,426.0


⁽¹⁾	Represents amounts collected from customers to cover the cost of future removal of property, plant, and equipment.


⁽²⁾	Represents the deferral of revenues less the associated cost of sales related to sales to the mines, which were not included in the 2015 rate order. We intend to request that this deferral be applied for the benefit of Wisconsin retail electric customers in a future rate proceeding.


⁽³⁾	Represents energy costs that will be refunded to customers in the future.


⁽⁴⁾	Represents the unrecognized future pension and OPEB costs resulting from actuarial gains and losses on defined benefit and OPEB plans. We will amortize this regulatory liability into net periodic benefit cost over the average remaining service life of each plan.


⁽⁵⁾	Represents amounts refundable to customers related to our uncollectible expense tracking mechanisms and riders. These mechanisms allow us to recover or refund the difference between actual uncollectible write-offs and the amounts recovered in rates.