CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of gross receivables and related allowances for credit losses

We have included tables below that show our gross third-party receivable balances and the related allowance for credit losses at March 31, 2022 and December 31, 2021, by reportable segment.


(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
March 31, 2022
Accounts receivable and unbilled revenues	$	1,072.2		$	612.8		$	125.7		$	1,810.7		$	17.1		$	8.5		$	1,836.3
Allowance for credit losses	85.7			107.0			7.9			200.6			—			—			200.6
Accounts receivable and unbilled revenues, net (1)	$	986.5		$	505.8		$	117.8		$	1,610.1		$	17.1		$	8.5		$	1,635.7

Total accounts receivable, net – past due greater than 90 days (1)	$	55.5		$	43.7		$	3.7		$	102.9		$	—		$	—		$	102.9
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	98.2		%	100.0		%	—		%	95.4		%	—		%	—		%	95.4		%


(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
December 31, 2021
Accounts receivable and unbilled revenues	$	1,053.1		$	523.1		$	105.7		$	1,681.9		$	17.0		$	5.1		$	1,704.0
Allowance for credit losses	84.0			105.5			8.8			198.3			—			—			198.3
Accounts receivable and unbilled revenues, net (1)	$	969.1		$	417.6		$	96.9		$	1,483.6		$	17.0		$	5.1		$	1,505.7

Total accounts receivable, net – past due greater than 90 days (1)	$	46.5		$	36.6		$	3.4		$	86.5		$	—		$	—		$	86.5
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	97.6		%	100.0		%	—		%	94.8		%	—		%	—		%	94.8		%

(1)Our exposure to credit losses for certain regulated utility customers is mitigated by regulatory mechanisms we have in place. Specifically, rates related to all of the customers in our Illinois segment, as well as the residential rates of WE, WPS, and WG in our Wisconsin segment, include riders or other mechanisms for cost recovery or refund of uncollectible expense based on the difference between the actual provision for credit losses and the amounts recovered in rates. As a result, at March 31, 2022, $1,008.4 million, or 61.6%, of our net accounts receivable and unbilled revenues balance had regulatory protections in place to mitigate the exposure to credit losses.

Rollforward of the allowances for credit losses by reportable segment

A rollforward of the allowance for credit losses by reportable segment for the three months ended March 31, 2022 and 2021 is included below:


Three Months Ended March 31, 2022 (in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2022	$	84.0	$	105.5	$	8.8	$	198.3
Provision for credit losses	11.8		11.3		0.2		23.3
Provision for credit losses deferred for future recovery or refund	8.8		12.1		—		20.9
Write-offs charged against the allowance	(28.8)		(27.3)		(1.4)		(57.5)
Recoveries of amounts previously written off	9.9		5.4		0.3		15.6
Balance at March 31, 2022	$	85.7	$	107.0	$	7.9	$	200.6

On a consolidated basis, there was a $2.3 million increase in the allowance for credit losses at March 31, 2022, compared to January 1, 2022, driven by an increase in past due accounts receivable balances at our Wisconsin and Illinois reportable segments. We believe that the higher year-over-year energy costs that customers were seeing, which were driven by high natural gas prices, contributed to the higher past due accounts receivable balances. An increase in past due balances is also a trend we generally see over the winter moratorium months, when we are not allowed to disconnect customer service as a result of non-payment. In Wisconsin, the winter moratorium begins on November 1 and ends on April 15, and in Illinois the winter moratorium begins on December 1 and ends on March 31.


Three Months Ended March 31, 2021 (in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2021	$	102.1	$	111.6	$	6.4	$	220.1
Provision for credit losses	13.7		7.1		1.3		22.1
Provision for credit losses deferred for future recovery or refund	22.3		3.1		—		25.4
Write-offs charged against the allowance	(18.5)		(2.8)		(0.5)		(21.8)
Recoveries of amounts previously written off	9.9		3.0		0.4		13.3
Balance at March 31, 2021	$	129.5	$	122.0	$	7.6	$	259.1

The increase in the allowance for credit losses at March 31, 2021, compared to January 1, 2021, was driven by higher past due accounts receivable balances at our utility segments, primarily related to residential customers. This increase in accounts receivable balances in arrears was driven by the continued economic disruptions caused by the COVID-19 pandemic, including continued high unemployment rates. Also, as a result of the winter moratorium rules and the COVID-19 pandemic and related regulatory orders we received, we were unable to disconnect any of our Wisconsin and Illinois residential customers in the first quarter of 2021 and during all of 2020.