OPERATING REVENUES

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

OPERATING REVENUES

OPERATING REVENUES

For more information about our 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, which includes investments accounted for using the equity method. 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 September 30, 2019
Electric	$	1,185.4	$	—	$	—	$	1,185.4	$	—	$	—	$	—		$	1,185.4
Natural gas	151.1		190.0		43.8		384.9		8.9		—		(8.4		)	385.4
Total regulated revenues	1,336.5		190.0		43.8		1,570.3		8.9		—		(8.4		)	1,570.8
Other non-utility revenues	—		—		4.2		4.2		12.0		1.3		(0.7		)	16.8
Total revenues from contracts with customers	1,336.5		190.0		48.0		1,574.5		20.9		1.3		(9.1		)	1,587.6
Other operating revenues	2.8		8.0		0.9		11.7		98.5		—		(89.8		)	20.4
Total operating revenues	$	1,339.3	$	198.0	$	48.9	$	1,586.2	$	119.4	$	1.3	$	(98.9	)	$	1,608.0

(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 September 30, 2018
Electric	$	1,218.3	$	—	$	—	$	1,218.3	$	—	$	—	$	—		$	1,218.3
Natural gas	167.4		193.2		45.9		406.5		10.0		—		(12.7		)	403.8
Total regulated revenues	1,385.7		193.2		45.9		1,624.8		10.0		—		(12.7		)	1,622.1
Other non-utility revenues	—		0.1		4.0		4.1		7.9		2.3		(0.7		)	13.6
Total revenues from contracts with customers	1,385.7		193.3		49.9		1,628.9		17.9		2.3		(13.4		)	1,635.7
Other operating revenues	3.0		4.6		0.3		7.9		97.3		0.1		(97.3		)	8.0
Total operating revenues	$	1,388.7	$	197.9	$	50.2	$	1,636.8	$	115.2	$	2.4	$	(110.7	)	$	1,643.7

(in millions)	Wisconsin		Illinois		Other States			Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Nine Months Ended September 30, 2019
Electric	$	3,269.1	$	—	$	—		$	3,269.1	$	—	$	—	$	—		$	3,269.1
Natural gas	943.3		967.4		293.0			2,203.7		35.1		—		(32.2		)	2,206.6
Total regulated revenues	4,212.4		967.4		293.0			5,472.8		35.1		—		(32.2		)	5,475.7
Other non-utility revenues	—		0.1		12.5			12.6		40.6		3.6		(4.5		)	52.3
Total revenues from contracts with customers	4,212.4		967.5		305.5			5,485.4		75.7		3.6		(36.7		)	5,528.0
Other operating revenues	13.6		9.9		(2.6		)	20.9		294.8		0.3		(268.4		)	47.6
Total operating revenues	$	4,226.0	$	977.4	$	302.9		$	5,506.3	$	370.5	$	3.9	$	(305.1	)	$	5,575.6

(in millions)	Wisconsin		Illinois			Other States			Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Nine Months Ended September 30, 2018
Electric	$	3,370.2	$	—		$	—		$	3,370.2	$	—	$	—	$	—		$	3,370.2
Natural gas	921.8		974.6			287.5			2,183.9		34.9		—		(27.9		)	2,190.9
Total regulated revenues	4,292.0		974.6			287.5			5,554.1		34.9		—		(27.9		)	5,561.1
Other non-utility revenues	—		0.2			11.8			12.0		24.3		6.4		(4.5		)	38.2
Total revenues from contracts with customers	4,292.0		974.8			299.3			5,566.1		59.2		6.4		(32.4		)	5,599.3
Other operating revenues	11.3		(1.6		)	(6.8		)	2.9		291.1		0.5		(291.1		)	3.4
Total operating revenues	$	4,303.3	$	973.2		$	292.5		$	5,569.0	$	350.3	$	6.9	$	(323.5	)	$	5,602.7

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 September 30				Nine Months Ended September 30
(in millions)	2019		2018		2019		2018
Residential	$	454.7	$	465.3	$	1,218.1	$	1,243.3
Small commercial and industrial	385.6		388.2		1,050.8		1,072.2
Large commercial and industrial	237.9		249.7		668.0		695.2
Other	6.9		7.5		22.0		22.4
Total retail revenues	1,085.1		1,110.7		2,958.9		3,033.1
Wholesale	53.1		62.0		145.4		175.3
Resale	29.5		40.7		119.7		139.6
Steam	2.4		2.7		16.8		16.9
Other utility revenues	15.3		2.2		28.3		5.3
Total electric utility operating revenues	$	1,185.4	$	1,218.3	$	3,269.1	$	3,370.2

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 September 30, 2019
Residential	$	69.3	$	117.6		$	22.5	$	209.4
Commercial and industrial	30.0		29.3			11.5		70.8
Total retail revenues	99.3		146.9			34.0		280.2
Transport	14.4		44.3			5.6		64.3
Other utility revenues *	37.4		(1.2		)	4.2		40.4
Total natural gas utility operating revenues	$	151.1	$	190.0		$	43.8	$	384.9

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Three Months Ended September 30, 2018
Residential	$	71.9	$	112.7	$	20.1	$	204.7
Commercial and industrial	35.0		29.4		12.6		77.0
Total retail revenues	106.9		142.1		32.7		281.7
Transport	13.9		43.3		4.9		62.1
Other utility revenues *	46.6		7.8		8.3		62.7
Total natural gas utility operating revenues	$	167.4	$	193.2	$	45.9	$	406.5

(in millions)	Wisconsin		Illinois			Other States			Total Natural Gas Utility Operating Revenues
Nine Months Ended September 30, 2019
Residential	$	579.4	$	625.7		$	187.0		$	1,392.1
Commercial and industrial	285.5		190.6			104.0			580.1
Total retail revenues	864.9		816.3			291.0			1,972.2
Transport	52.5		178.3			23.0			253.8
Other utility revenues *	25.9		(27.2		)	(21.0		)	(22.3		)
Total natural gas utility operating revenues	$	943.3	$	967.4		$	293.0		$	2,203.7

(in millions)	Wisconsin		Illinois		Other States			Total Natural Gas Utility Operating Revenues
Nine Months Ended September 30, 2018
Residential	$	556.7	$	609.0	$	181.2		$	1,346.9
Commercial and industrial	286.4		186.1		96.0			568.5
Total retail revenues	843.1		795.1		277.2			1,915.4
Transport	51.3		175.6		21.6			248.5
Other utility revenues *	27.4		3.9		(11.3		)	20.0
Total natural gas utility operating revenues	$	921.8	$	974.6	$	287.5		$	2,183.9

* Includes amounts collected from (refunded to) customers for purchased gas adjustment costs.

Other Natural Gas Operating Revenues

We have other natural gas operating revenues from Bluewater, which is in our non-utility energy infrastructure segment. Bluewater has entered into long-term service agreements for natural gas storage services with WE, WG, and WPS, and provides service to several unaffiliated customers. All amounts associated with services from affiliates have been eliminated at the consolidated level.

Other Non-Utility Operating Revenues

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

	Three Months Ended September 30				Nine Months Ended September 30
(in millions)	2019		2018		2019		2018
We Power revenues (1)	$	6.4	$	6.4	$	19.1	$	19.0
Appliance service revenues	4.2		4.0		12.5		11.8
Distributed renewable solar project revenues	1.3		2.3		3.6		6.4
Wind generation revenues (2)	4.9		0.8		17.0		0.8
Other	—		0.1		0.1		0.2
Total other non-utility operating revenues	$	16.8	$	13.6	$	52.3	$	38.2

⁽¹⁾  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, net on our balance sheets and we continually amortize this contract liability to

revenues over the life of the related lease term that We Power has with WE. During the three and nine months ended September 30, 2019, we recorded $6.4 million and $19.1 million of revenue, respectively, related to amortization of these deferred carrying costs. During the three and nine months ended September 30, 2018, we recorded $6.4 million and $19.0 million of revenue, respectively, related to amortization of these deferred carrying costs.

⁽²⁾  In 2019, we continued to invest in wind generation facilities and recognize revenues from these wind generation facilities 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 September 30					Nine Months Ended September 30
(in millions)	2019		2018			2019			2018
Alternative revenues *	$	1.4	$	(1.9	)	$	(17.2	)	$	(32.2	)
Late payment charges	9.7		9.4			34.9			31.9
Other	9.3		0.5			29.9			3.7
Total other operating revenues	$	20.4	$	8.0		$	47.6		$	3.4

*

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.