Long-Term Debt

12 Months Ended

Dec. 31, 2020

The following table is a summary of our long-term debt outstanding (excluding finance leases) as of December 31:


	2020					2019
(in millions)	Maturity Date	Weighted Average Interest Rate		Balance		Weighted Average Interest Rate		Balance
WEC Energy Group Senior Notes (unsecured) (1)	2023-2033	2.03	%	$	2,270.0	3.47	%	$	2,050.0
WEC Energy Group Junior Notes (unsecured) (1) (2)	2067	3.65	%	500.0		4.50	%	500.0
WE Debentures (unsecured)	2021-2095	4.26	%	2,785.0		4.26	%	2,785.0
WPS Senior Notes (unsecured)	2021-2049	4.04	%	1,625.0		4.04	%	1,625.0
WG Debentures (unsecured)	2024-2046	3.65	%	640.0		3.65	%	640.0
Integrys Senior Notes (unsecured)	2020	N/A		—		4.17	%	250.0
Integrys Junior Notes (unsecured) (3)	2073	6.00	%	400.0		6.00	%	400.0
PGL First and Refunding Mortgage Bonds (secured) (4)	2024-2047	3.45	%	1,670.0		3.59	%	1,520.0
NSG First Mortgage Bonds (secured) (5)	2027-2043	3.81	%	132.0		3.81	%	132.0
MERC Senior Notes (unsecured)	2025-2047	3.27	%	170.0		3.51	%	120.0
MGU Senior Notes (unsecured)	2025-2047	3.18	%	150.0		3.51	%	90.0
UMERC Senior Notes (unsecured)	2029	3.26	%	160.0		3.26	%	160.0
Bluewater Gas Storage Senior Notes (unsecured) (6)	2021-2047	3.76	%	117.8		3.76	%	120.3
ATC Holding Senior Notes (unsecured)	2025-2030	4.05	%	475.0		4.05	%	475.0
We Power Subsidiaries Notes (secured, nonrecourse) (6) (7)	2021-2041	5.59	%	970.8		5.57	%	1,005.2
WECC Notes (unsecured)	2028	6.94	%	50.0		6.94	%	50.0
WECI Wind Holding I Senior Notes (secured) (6) (8)	2032	2.75	%	413.6		N/A		—
Total				12,529.2				11,922.5
Integrys acquisition fair value adjustment				8.4				14.3
Unamortized debt issuance costs				(65.2)				(52.9)
Unamortized discount, net and other				(21.9)				(25.6)
Total long-term debt, including current portion (9)				12,450.5				11,858.3
Current portion of long-term debt				(777.7)				(686.9)
Total long-term debt				$	11,672.8			$	11,171.4

(1) In connection with our outstanding 2007 Junior Notes, we executed an RCC, which we amended on June 29, 2015, for the benefit of persons that buy, hold, or sell a specified series of our long-term indebtedness (covered debt). Our 6.20% Senior Notes due April 1, 2033 have been designated as the covered debt under the RCC. The RCC provides that we may not redeem, defease, or purchase, and that our subsidiaries may not purchase, any 2007 Junior Notes on or before May 15, 2037, unless, subject to certain limitations described in the RCC, we have received a specified amount of proceeds from the sale of qualifying securities.

(2) Variable interest rate reset quarterly. The rates were 2.33% and 4.02% as of December 31, 2020 and 2019, respectively. On July 12, 2018, we executed two interest rate swaps that provided a fixed rate of 4.9765% on $250.0 million of the outstanding notes. The effective rates of 3.65% and 4.50% as of December 31, 2020 and 2019, respectively, were blended rates of the variable and fixed portions.

(3) Effective August 2023, Integrys's $400.0 million of 2013 6.00% Junior Subordinated Notes due 2073 will bear interest at the three-month LIBOR plus 322 basis points and will reset quarterly.

(4) PGL's First Mortgage Bonds are subject to the terms and conditions of PGL's First Mortgage Indenture dated January 2, 1926, as supplemented. Under the terms of the Indenture, substantially all property owned by PGL is pledged as collateral for these outstanding debt securities.

PGL has used certain First Mortgage Bonds to secure tax exempt interest rates. The Illinois Finance Authority has issued Tax Exempt Bonds, and the proceeds from the sale of these bonds were loaned to PGL. In return, PGL issued equal principal amounts of certain collateralized First Mortgage Bonds.

(5) NSG's First Mortgage Bonds are subject to the terms and conditions of NSG's First Mortgage Indenture dated April 1, 1955, as supplemented. Under the terms of the Indenture, substantially all property owned by NSG is pledged as collateral for these outstanding debt securities.

(6) The long-term debt of Bluewater, WECI Wind Holding I, and We Power's subsidiaries requires periodic principal payments.

(7) We Power's subsidiaries' senior notes are secured by a collateral assignment of the leases between We Power's subsidiaries and WE related to PWGS and ERGS, as applicable.

(8) WECI Wind Holding I's Senior Notes are secured by a first priority security interest in the ownership interest of its subsidiaries as well as a pledge of equity in WECI Wind Holding I.

(9) The amount of long-term debt on our balance sheets includes finance lease obligations of $63.4 million and $45.9 million at December 31, 2020 and 2019, respectively.

We amortize debt premiums, discounts, and debt issuance costs over the life of the debt and we include the costs in interest expense.

WEC Energy Group, Inc.

In May 2020, we redeemed at par all $400.0 million outstanding of our 2.45% Senior Notes due June 15, 2020.

In September 2020, we issued $700.0 million of 0.55% Senior Notes due September 15, 2023, and used the net proceeds to repay commercial paper and for working capital and other general corporate purposes.

In October 2020, we issued $500.0 million of 1.375% Senior Notes due October 15, 2027, and $450.0 million of 1.800% Senior Notes due October 15, 2030. We used the net proceeds to redeem all $600.0 million outstanding of our 3.375% Senior Notes due June 15, 2021 and all $350.0 million outstanding of our 3.10% Senior Notes due March 8, 2022, and for other general corporate purposes. As a result of redeeming our 3.375% Senior Notes and our 3.10% Senior Notes prior to their maturity dates, we recognized a $27.9 million loss on early extinguishment of debt in October 2020. The loss is comprised of the make-whole premium associated with the early redemptions and the write-off of unamortized debt discounts and debt issuance costs as of the redemption date.

In December 2020, we redeemed $80.0 million of the $500.0 million outstanding of our 3.55% Senior Notes due June 15, 2025 with the proceeds we received from issuing commercial paper. As a result of the redemption prior to maturity, we recognized a $10.5 million loss on early extinguishment of debt. The loss is comprised of the make-whole premium associated with the early redemption and the write-off of the related unamortized debt discount and debt issuance costs as of the redemption date.

Integrys Holding, Inc.

In November 2020, Integrys' $250.0 million of 4.17% Senior Notes matured, and outstanding principal was paid with proceeds received from WEC Energy Group issuing commercial paper.

The Peoples Gas Light and Coke Company

In August 2020, PGL redeemed at par all $50.0 million outstanding of its 1.875% Series WW Bonds due February 1, 2033.

In November 2020, PGL issued $200.0 million of 1.98% Series JJJ Bonds due December 1, 2030, and used the net proceeds for general corporate purposes, including capital expenditures and the refinancing of short-term debt.

Minnesota Energy Resources Corporation

In April 2020, MERC issued $50.0 million of 2.69% Senior Notes due May 1, 2025, and used the net proceeds to repay intercompany short-term debt to its parent, Integrys, and for general corporate purposes, including capital expenditures.

Michigan Gas Utilities Corporation

In April 2020, MGU issued $60.0 million of 2.69% Senior Notes due May 1, 2025, and used the net proceeds to repay intercompany short-term debt to its parent, Integrys, and for general corporate purposes, including capital expenditures.

WEC Infrastructure Wind Holding I LLC

In December 2020, WECI Wind Holding I issued $413.6 million of 2.75% Senior Notes due December 31, 2032, and used the net proceeds to return a portion of WECI's previously invested capital in the subsidiaries of WECI Wind Holding I.

Maturities of Long-Term Debt Outstanding

The following table shows the long-term debt securities (excluding finance leases) maturing within one year of December 31, 2020:


(in millions)	Interest Rate	Maturity Date (1)	Principal Amount
WE Debentures (unsecured)	2.95%	September	$	300.0
WPS Senior Notes (unsecured)	3.35%	November	400.0
Bluewater Gas Storage Senior Notes (unsecured)	3.76%	Semi-annually	2.6
We Power Subsidiaries Notes – PWGS (secured, nonrecourse)	4.91%	Monthly	6.9
We Power Subsidiaries Notes – ERGS (secured, nonrecourse)	5.209%	Semi-annually	13.2
We Power Subsidiaries Notes – ERGS (secured, nonrecourse)	4.673%	Semi-annually	10.2
We Power Subsidiaries Notes – PWGS (secured, nonrecourse)	6.00%	Monthly	5.9
WECI Wind Holding I Senior Notes (secured)	2.75%	Semi-annually	38.9
Total			$	777.7

(1) Maturity dates listed as semi-annually and monthly are associated with debt that requires periodic principal payments.

The following table shows the future maturities of our long-term debt outstanding (excluding obligations under finance leases) as of December 31, 2020:


(in millions)	Payments
2021	$	777.7
2022	83.3
2023	784.9
2024	613.7
2025	1,156.7
Thereafter	9,112.9
Total	$	12,529.2

Certain long-term debt obligations contain financial and other covenants related to payment of principal and interest when due, maintaining certain total funded debt to capitalization ratios, and various other obligations. Failure to comply with these covenants could result in an event of default, which could result in the acceleration of outstanding debt obligations.