OPERATING REVENUES

For more information about our significant accounting policies related to operating revenues, see Note 1(d), Operating Revenues, in our 2018 Annual Report on Form 10-K.

Disaggregation of Operating Revenues

The following tables present our operating revenues disaggregated by revenue source. We do not have any revenues associated with our electric transmission segment. We disaggregate revenues into categories that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors. For our segments, revenues are further disaggregated by electric and natural gas operations and then by customer class. Each customer class within our electric and natural gas operations have different expectations of service, energy and demand requirements, and are impacted by regulatory activities within their jurisdictions.



(in millions)	Wisconsin		Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Three Months Ended March 31, 2019
Electric	$	1,061.8	$	—		$	—		$	1,061.8		$	—	$	—	$	—		$	1,061.8
Natural gas	564.9		544.6			185.2			1,294.7			16.4		—		(14.7		)	1,296.4
Total regulated revenues	1,626.7		544.6			185.2			2,356.5			16.4		—		(14.7		)	2,358.2
Other non-utility revenues	—		0.1			4.1			4.2			13.3		1.5		(0.7		)	18.3
Total revenues from contracts with customers	1,626.7		544.7			189.3			2,360.7			29.7		1.5		(15.4		)	2,376.5
Other operating revenues	6.7		(8.2		)	(4.1		)	(5.6		)	98.1		0.2		(91.8		)	0.9
Total operating revenues	$	1,633.4	$	536.5		$	185.2		$	2,355.1		$	127.8	$	1.7	$	(107.2	)	$	2,377.4



(in millions)	Wisconsin		Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Three Months Ended March 31, 2018
Electric	$	1,067.7	$	—		$	—		$	1,067.7		$	—	$	—	$	—		$	1,067.7
Natural gas	518.0		507.6			172.7			1,198.3			14.9		—		(2.5		)	1,210.7
Total regulated revenues	1,585.7		507.6			172.7			2,266.0			14.9		—		(2.5		)	2,278.4
Other non-utility revenues	—		—			3.9			3.9			7.1		1.3		(0.7		)	11.6
Total revenues from contracts with customers	1,585.7		507.6			176.6			2,269.9			22.0		1.3		(3.2		)	2,290.0
Other operating revenues	3.4		(0.3		)	(6.7		)	(3.6		)	96.1		0.1		(96.1		)	(3.5		)
Total operating revenues	$	1,589.1	$	507.3		$	169.9		$	2,266.3		$	118.1	$	1.4	$	(99.3	)	$	2,286.5

Revenues from Contracts with Customers

Electric Utility Operating Revenues

The following table disaggregates electric utility operating revenues into customer class:



	Electric Utility Operating Revenues
	Three Months Ended March 31
(in millions)	2019		2018
Residential	$	406.7	$	384.3
Small commercial and industrial	333.9		330.7
Large commercial and industrial	212.3		203.9
Other	7.8		7.7
Total retail revenues	960.7		926.6
Wholesale	47.7		54.9
Resale	40.8		73.8
Steam	10.1		9.7
Other utility revenues	2.5		2.7
Total electric utility operating revenues	$	1,061.8	$	1,067.7

Natural Gas Utility Operating Revenues

The following tables disaggregate natural gas utility operating revenues into customer class:



(in millions)	Wisconsin			Illinois			Other States			Total Natural Gas Utility Operating Revenues
Three Months Ended March 31, 2019
Residential	$	383.9		$	354.0		$	125.2		$	863.1
Commercial and industrial	199.7			116.2			72.0			387.9
Total retail revenues	583.6			470.2			197.2			1,251.0
Transport	21.9			87.2			11.1			120.2
Other utility revenues *	(40.6		)	(12.8		)	(23.1		)	(76.5		)
Total natural gas utility operating revenues	$	564.9		$	544.6		$	185.2		$	1,294.7



(in millions)	Wisconsin			Illinois			Other States			Total Natural Gas Utility Operating Revenues
Three Months Ended March 31, 2018
Residential	$	356.7		$	332.6		$	123.2		$	812.5
Commercial and industrial	187.9			109.4			64.7			362.0
Total retail revenues	544.6			442.0			187.9			1,174.5
Transport	21.0			77.7			9.9			108.6
Other utility revenues *	(47.6		)	(12.1		)	(25.1		)	(84.8		)
Total natural gas utility operating revenues	$	518.0		$	507.6		$	172.7		$	1,198.3


*	Includes amounts refunded to customers for purchased gas adjustment costs.

Other Non-Utility Operating Revenues

Other non-utility operating revenues consist primarily of the following:



	Three Months Ended March 31
(in millions)	2019		2018
We Power revenues	$	6.4	$	6.4
Appliance service revenues	4.1		3.9
Distributed renewable solar project revenues	1.5		1.3
Wind generation revenues	6.2		—
Other	0.1		—
Total other non-utility operating revenues	$	18.3	$	11.6

As part of the construction of the We Power electric generating units, we capitalized interest during construction, which is included in property, plant, and equipment. As allowed by the PSCW, we collected carrying costs from WE's utility customers during construction. The equity portion of these carrying costs was recorded as deferred revenue, and we continually amortize the deferred revenues over the life of the related lease term that We Power has with WE. During both the three months ended March 31, 2019 and 2018, we recorded $6.4 million of revenue related to these deferred carrying costs, which were included in the contract liability balance at the beginning of the period. This contract liability is presented as deferred revenue, net on our balance sheets.

In January 2019, we completed the acquisition of an 80% membership interest in Upstream. Upstream's revenue will be substantially fixed over a 10-year period through an agreement with an unaffiliated third party. See Note 2, Acquisitions, for more information on this acquisition. We recognize revenue as energy is produced and delivered to the customer within the production month.

Other Operating Revenues

Other operating revenues consist primarily of the following:



	Three Months Ended March 31
(in millions)	2019			2018
Alternative revenues *	$	(19.7	)	$	(16.1	)
Late payment charges	13.2			11.4
Rental revenues	7.4			1.2
Total other operating revenues	$	0.9		$	(3.5	)


*	Negative amounts can result from alternative revenues being reversed to revenues from contracts with customers as the customer is billed for these alternative revenues. Negative amounts can also result from revenues to be refunded to customers subject to decoupling mechanisms and wholesale true-ups.