OPERATING REVENUES (Tables)

6 Months Ended

Jun. 30, 2020

Disaggregation of Operating Revenues

Operating revenues disaggregated by revenue source

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 can be impacted differently 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 June 30, 2020
Electric	$	999.6	$	—	$	—	$	999.6	$	—	$	—	$	—	$	999.6
Natural gas	207.8		254.5		62.4		524.7		8.7		—		(8.2)		525.2
Total regulated revenues	1,207.4		254.5		62.4		1,524.3		8.7		—		(8.2)		1,524.8
Other non-utility revenues	—		—		4.2		4.2		17.1		0.8		(3.9)		18.2
Total revenues from contracts with customers	1,207.4		254.5		66.6		1,528.5		25.8		0.8		(12.1)		1,543.0
Other operating revenues	(1.2)		6.7		0.1		5.6		99.5		0.1		(99.5)		5.7
Total operating revenues	$	1,206.2	$	261.2	$	66.7	$	1,534.1	$	125.3	$	0.9	$	(111.6)	$	1,548.7

(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 June 30, 2019
Electric	$	1,021.9	$	—	$	—	$	1,021.9	$	—	$	—	$	—	$	1,021.9
Natural gas	227.3		232.8		64.0		524.1		9.8		—		(9.1)		524.8
Total regulated revenues	1,249.2		232.8		64.0		1,546.0		9.8		—		(9.1)		1,546.7
Other non-utility revenues	—		—		4.2		4.2		15.3		0.8		(3.1)		17.2
Total revenues from contracts with customers	1,249.2		232.8		68.2		1,550.2		25.1		0.8		(12.2)		1,563.9
Other operating revenues	4.1		10.1		0.6		14.8		98.2		0.1		(86.8)		26.3
Total operating revenues	$	1,253.3	$	242.9	$	68.8	$	1,565.0	$	123.3	$	0.9	$	(99.0)	$	1,590.2

(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations		WEC Energy Group Consolidated
Six months ended June 30, 2020
Electric	$	2,034.2	$	—	$	—	$	2,034.2	$	—	$	—	$	—	$	2,034.2
Natural gas	666.7		688.1		202.2		1,557.0		23.2		—		(22.3)		1,557.9
Total regulated revenues	2,700.9		688.1		202.2		3,591.2		23.2		—		(22.3)		3,592.1
Other non-utility revenues	—		—		8.6		8.6		33.5		1.2		(5.5)		37.8
Total revenues from contracts with customers	2,700.9		688.1		210.8		3,599.8		56.7		1.2		(27.8)		3,629.9
Other operating revenues	4.2		20.7		2.3		27.2		198.2		0.2		(198.2)		27.4
Total operating revenues	$	2,705.1	$	708.8	$	213.1	$	3,627.0	$	254.9	$	1.4	$	(226.0)	$	3,657.3

(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations		WEC Energy Group Consolidated
Six months ended June 30, 2019
Electric	$	2,083.7	$	—	$	—	$	2,083.7	$	—	$	—	$	—	$	2,083.7
Natural gas	792.2		777.4		249.2		1,818.8		26.2		—		(23.8)		1,821.2
Total regulated revenues	2,875.9		777.4		249.2		3,902.5		26.2		—		(23.8)		3,904.9
Other non-utility revenues	—		0.1		8.3		8.4		28.6		2.3		(3.8)		35.5
Total revenues from contracts with customers	2,875.9		777.5		257.5		3,910.9		54.8		2.3		(27.6)		3,940.4
Other operating revenues	10.8		1.9		(3.5)		9.2		196.3		0.3		(178.6)		27.2
Total operating revenues	$	2,886.7	$	779.4	$	254.0	$	3,920.1	$	251.1	$	2.6	$	(206.2)	$	3,967.6

Revenues from contracts with customers | Electric

Disaggregation of Operating Revenues

Operating revenues disaggregated by revenue source

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

	Electric Utility Operating Revenues
	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2020		2019		2020		2019
Residential	$	418.7	$	356.7	$	823.6	$	763.4
Small commercial and industrial	307.1		331.3		630.7		665.2
Large commercial and industrial	187.8		217.8		382.4		430.1
Other	6.9		7.3		14.2		15.1
Total retail revenues	920.5		913.1		1,850.9		1,873.8
Wholesale	41.3		44.6		83.4		92.3
Resale	28.4		49.4		73.6		90.2
Steam	4.1		4.3		12.5		14.4
Other utility revenues	5.3		10.5		13.8		13.0
Total electric utility operating revenues	$	999.6	$	1,021.9	$	2,034.2	$	2,083.7

Revenues from contracts with customers | Natural gas

Disaggregation of Operating Revenues

Operating revenues disaggregated by revenue source

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 June 30, 2020
Residential	$	125.8	$	157.4	$	40.0	$	323.2
Commercial and industrial	47.0		36.5		16.6		100.1
Total retail revenues	172.8		193.9		56.6		423.3
Transport	17.0		46.3		7.0		70.3
Other utility revenues (1)	18.0		14.3		(1.2)		31.1
Total natural gas utility operating revenues	$	207.8	$	254.5	$	62.4	$	524.7

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Three Months Ended June 30, 2019
Residential	$	126.2	$	154.1	$	39.3	$	319.6
Commercial and industrial	55.8		45.1		20.5		121.4
Total retail revenues	182.0		199.2		59.8		441.0
Transport	16.2		46.8		6.3		69.3
Other utility revenues (1)	29.1		(13.2)		(2.1)		13.8
Total natural gas utility operating revenues	$	227.3	$	232.8	$	64.0	$	524.1

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Six months ended June 30, 2020
Residential	$	438.9	$	440.3	$	135.3	$	1,014.5
Commercial and industrial	198.3		127.9		68.3		394.5
Total retail revenues	637.2		568.2		203.6		1,409.0
Transport	41.1		119.0		17.5		177.6
Other utility revenues (1)	(11.6)		0.9		(18.9)		(29.6)
Total natural gas utility operating revenues	$	666.7	$	688.1	$	202.2	$	1,557.0

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Six months ended June 30, 2019
Residential	$	510.1	$	508.1	$	164.5	$	1,182.7
Commercial and industrial	255.5		161.3		92.5		509.3
Total retail revenues	765.6		669.4		257.0		1,692.0
Transport	38.1		134.0		17.4		189.5
Other utility revenues (1)	(11.5)		(26.0)		(25.2)		(62.7)
Total natural gas utility operating revenues	$	792.2	$	777.4	$	249.2	$	1,818.8

⁽¹⁾Includes amounts collected from (refunded to) customers for purchased gas adjustment costs.

Revenues from contracts with customers | Other non-utility revenues

Disaggregation of Operating Revenues

Operating revenues disaggregated by revenue source

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

	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2020		2019		2020		2019
Wind generation revenues	$	7.3	$	5.9	$	16.6	$	12.1
We Power revenues (1)	5.8		6.3		11.3		12.7
Appliance service revenues	4.2		4.2		8.6		8.3
Distributed renewable solar project revenues	0.7		0.8		1.1		2.3
Other	0.2		—		0.2		0.1
Total other non-utility operating revenues	$	18.2	$	17.2	$	37.8	$	35.5

⁽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 these carrying costs from WE's utility customers during construction. The equity

portion of these carrying costs was recorded as a contract liability, and we continually amortize the deferred carrying costs to revenues over the life of the related lease term that We Power has with WE. During the three and six months ended June 30, 2020, we recorded $5.8 million and $11.3 million, respectively, of revenues related to these deferred carrying costs. During the three and six months ended June 30, 2019, we recorded $6.3 million and $12.7 million, respectively, of revenues related to these deferred carrying costs. These contract liabilities are presented as deferred revenue, net on our balance sheets.

Other operating revenues

Disaggregation of Operating Revenues

Operating revenues disaggregated by revenue source

Other operating revenues consist primarily of the following:

	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2020		2019		2020		2019
Alternative revenues (1)	$	4.3	$	1.1	$	12.8	$	(18.6)
Late payment charges (2)	—		12.0		12.1		25.2
Other	1.4		13.2		2.5		20.6
Total other operating revenues	$	5.7	$	26.3	$	27.4	$	27.2

⁽¹⁾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, wholesale true-ups, and conservation improvement rider true-ups, as discussed in Note 1(d), Operating Revenues, in our 2019 Annual Report on Form 10-K.

⁽²⁾The reduction in late payment charges is a result of various regulatory orders from our utility commissions in response to the COVID-19 pandemic, which include the suspension of late payment charges during a designated time period. See Note 23, Regulatory Environment, for more information.