Segment Information

12 Months Ended

Dec. 31, 2019

We use operating income to measure segment profitability and to allocate resources to our businesses. At December 31, 2019, we reported six segments, which are described below.


•	The Wisconsin segment includes the electric and natural gas utility operations of WE, WPS, WG, and UMERC.


•	The Illinois segment includes the natural gas utility and non-utility operations of PGL and NSG.


•	The other states segment includes the natural gas utility and non-utility operations of MERC and MGU.

•

The electric transmission segment includes our approximate 60% ownership interest in ATC, a for-profit, transmission-only company regulated by the FERC for cost of service and certain state regulatory commissions for routing and siting of transmission projects, and our approximate 75% ownership interest in ATC Holdco, which was formed to invest in transmission-related projects outside of ATC's traditional footprint.


•	The non-utility energy infrastructure segment includes:


◦	We Power, which owns and leases generating facilities to WE,


◦	Bluewater, which owns underground natural gas storage facilities in Michigan that provide approximately one-third of the current storage needs for our Wisconsin natural gas utilities, and


◦	WECI, which holds our ownership interests in the following wind generating facilities:


▪	90% ownership interest in Bishop Hill III, located in Henry County, Illinois,


▪	80% ownership interest in Coyote Ridge, located in Brookings County, South Dakota, and


▪	80% ownership interest in Upstream, located in Antelope County, Nebraska.

See Note 2, Acquisitions, for more information on Bluewater, Bishop Hill III, Coyote Ridge, and Upstream.

•

The corporate and other segment includes the operations of the WEC Energy Group holding company, the Integrys holding company, the PELLC holding company, Wispark, Bostco, Wisvest, WECC, WBS, and PDL. In the first quarter of 2017, we sold substantially all of the remaining assets of Bostco, and, in October 2018, Bostco was dissolved. In 2019, we sold certain PDL solar power generating facilities. See Note 3, Dispositions, for more information on these sales.

All of our operations and assets are located within the United States. The following tables show summarized financial information related to our reportable segments for the years ended December 31, 2019, 2018, and 2017.



	Utility Operations
2019 (in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other			Reconciling Eliminations			WEC Energy Group Consolidated
External revenues	$	5,647.1	$	1,357.1	$	426.0	$	7,430.2	$	—	$	88.5	$	4.4		$	—		$	7,523.1
Intersegment revenues	—		—		—		—		—		407.4		—			(407.4		)	—
Other operation and maintenance	1,591.3		461.1		98.5		2,150.9		—		19.7		14.0			0.2			2,184.8
Depreciation and amortization	617.0		181.3		27.5		825.8		—		92.0		24.3			(15.8		)	926.3
Operating income (loss)	1,189.6		291.9		65.3		1,546.8		—		366.6		(34.4		)	(347.6		)	1,531.4
Equity in earnings of transmission affiliates	—		—		—		—		127.6		—		—			—			127.6
Interest expense	572.0		59.0		8.5		639.5		13.1		62.1		140.9			(354.1		)	501.5
Capital expenditures and asset acquisitions	1,378.6		624.9		109.1		2,112.6		—		389.9		26.5			—			2,529.0
Total assets *	23,934.8		6,932.5		1,237.8		32,105.1		1,723.1		3,654.1		814.0			(3,344.5		)	34,951.8


*	Total assets at December 31, 2019 reflect an elimination of $1,896.7 million for all lease activity between We Power and WE.



	Utility Operations
2018 (in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other			Reconciling Eliminations			WEC Energy Group Consolidated
External revenues	$	5,794.7	$	1,400.0	$	438.2	$	7,632.9	$	—	$	37.9	$	8.7		$	—		$	7,679.5
Intersegment revenues	—		—		—		—		—		430.5		—			(430.5		)	—
Other operation and maintenance	2,076.1		472.3		101.0		2,649.4		—		12.6		1.8			(393.3		)	2,270.5
Depreciation and amortization	546.6		170.3		24.1		741.0		—		75.7		29.1			—			845.8
Operating income (loss)	800.2		255.8		68.8		1,124.8		—		365.8		(22.2		)	—			1,468.4
Equity in earnings of transmission affiliates	—		—		—		—		136.7		—		—			—			136.7
Interest expense	200.7		51.2		8.7		260.6		0.3		63.7		125.8			(5.3		)	445.1
Capital expenditures and asset acquisitions	1,466.1		547.1		103.6		2,116.8		—		260.6		39.7			—			2,417.1
Total assets *	23,407.0		6,483.3		1,147.9		31,038.2		1,665.3		3,227.2		959.6			(3,414.5		)	33,475.8


*	Total assets at December 31, 2018 reflect an elimination of $1,968.5 million for all lease activity between We Power and WE.



	Utility Operations
2017 (in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other			Reconciling Eliminations			WEC Energy Group Consolidated
External revenues	$	5,829.2	$	1,355.5	$	411.2	$	7,595.9	$	—	$	38.9	$	13.7		$	—		$	7,648.5
Intersegment revenues	—		—		—		—		—		446.3		—			(446.3		)	—
Other operation and maintenance	1,923.2		464.2		101.1		2,488.5		—		7.3		1.4			(441.1		)	2,056.1
Depreciation and amortization	523.9		152.6		24.8		701.3		—		71.4		25.9			—			798.6
Operating income (loss)	1,055.2		279.9		54.4		1,389.5		—		400.5		(13.9		)	—			1,776.1
Equity in earnings of transmission affiliates	—		—		—		—		154.3		—		—			—			154.3
Interest expense	193.7		45.0		8.7		247.4		—		62.8		107.3			(1.8		)	415.7
Capital expenditures	1,152.3		545.2		74.5		1,772.0		—		35.4		152.1			—			1,959.5
Total assets *	22,237.1		6,144.7		1,067.8		29,449.6		1,593.4		2,992.8		953.6			(3,398.9		)	31,590.5

Total assets at December 31, 2017 reflect an elimination of $2,038.1 million for all lease activity between We Power and WE.