| OPERATING REVENUES |
OPERATING REVENUES For more information about our operating revenues, see Note 1(d), Operating Revenues, in our 2021 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 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, 2022 | | | | | | | | | | | | | | | | | | Electric | | $ | 1,221.1 | | | $ | — | | | $ | — | | | $ | 1,221.1 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,221.1 | | | Natural gas | | 329.5 | | | 442.2 | | | 95.8 | | | 867.5 | | | 12.0 | | | — | | | (11.0) | | | 868.5 | | | Total regulated revenues | | 1,550.6 | | | 442.2 | | | 95.8 | | | 2,088.6 | | | 12.0 | | | — | | | (11.0) | | | 2,089.6 | | | Other non-utility revenues | | — | | | — | | | 4.5 | | | 4.5 | | | 31.1 | | | — | | | (4.0) | | | 31.6 | | | Total revenues from contracts with customers | | 1,550.6 | | | 442.2 | | | 100.3 | | | 2,093.1 | | | 43.1 | | | — | | | (15.0) | | | 2,121.2 | | | Other operating revenues | | 6.8 | | | 0.2 | | | (0.4) | | | 6.6 | | | 100.5 | | | 0.1 | | | (100.5) | | (1) | 6.7 | | | Total operating revenues | | $ | 1,557.4 | | | $ | 442.4 | | | $ | 99.9 | | | $ | 2,099.7 | | | $ | 143.6 | | | $ | 0.1 | | | $ | (115.5) | | | $ | 2,127.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (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, 2021 | | | | | | | | | | | | | | | | | | Electric | | $ | 1,083.2 | | | $ | — | | | $ | — | | | $ | 1,083.2 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,083.2 | | | Natural gas | | 212.7 | | | 266.1 | | | 66.9 | | | 545.7 | | | 9.4 | | | — | | | (8.7) | | | 546.4 | | | Total regulated revenues | | 1,295.9 | | | 266.1 | | | 66.9 | | | 1,628.9 | | | 9.4 | | | — | | | (8.7) | | | 1,629.6 | | | Other non-utility revenues | | — | | | — | | | 4.4 | | | 4.4 | | | 24.2 | | | — | | | (3.9) | | | 24.7 | | | Total revenues from contracts with customers | | 1,295.9 | | | 266.1 | | | 71.3 | | | 1,633.3 | | | 33.6 | | | — | | | (12.6) | | | 1,654.3 | | | Other operating revenues | | 11.6 | | | 9.4 | | | 0.8 | | | 21.8 | | | 99.9 | | | 0.1 | | | (99.9) | | (1) | 21.9 | | | Total operating revenues | | $ | 1,307.5 | | | $ | 275.5 | | | $ | 72.1 | | | $ | 1,655.1 | | | $ | 133.5 | | | $ | 0.1 | | | $ | (112.5) | | | $ | 1,676.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (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, 2022 | | | | | | | | | | | | | | | | | | Electric | | $ | 2,408.6 | | | $ | — | | | $ | — | | | $ | 2,408.6 | | | | | $ | — | | | $ | — | | | $ | 2,408.6 | | | Natural gas | | 1,076.3 | | | 1,122.1 | | | 334.0 | | | 2,532.4 | | | 27.3 | | | — | | | (25.8) | | | 2,533.9 | | | Total regulated revenues | | 3,484.9 | | | 1,122.1 | | | 334.0 | | | 4,941.0 | | | 27.3 | | | — | | | (25.8) | | | 4,942.5 | | | Other non-utility revenues | | — | | | — | | | 9.1 | | | 9.1 | | | 74.8 | | | — | | | (5.6) | | | 78.3 | | | Total revenues from contracts with customers | | 3,484.9 | | | 1,122.1 | | | 343.1 | | | 4,950.1 | | | 102.1 | | | — | | | (31.4) | | | 5,020.8 | | | Other operating revenues | | 14.8 | | | 2.4 | | | (2.3) | | | 14.9 | | | 201.0 | | | 0.3 | | | (201.0) | | (1) | 15.2 | | | Total operating revenues | | $ | 3,499.7 | | | $ | 1,124.5 | | | $ | 340.8 | | | $ | 4,965.0 | | | $ | 303.1 | | | $ | 0.3 | | | $ | (232.4) | | | $ | 5,036.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (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, 2021 | | | | | | | | | | | | | | | | | | Electric | | $ | 2,178.2 | | | $ | — | | | $ | — | | | $ | 2,178.2 | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,178.2 | | | Natural gas | | 840.0 | | | 959.6 | | | 292.5 | | | 2,092.1 | | | 24.0 | | | — | | | (22.0) | | | 2,094.1 | | | Total regulated revenues | | 3,018.2 | | | 959.6 | | | 292.5 | | | 4,270.3 | | | 24.0 | | | — | | | (22.0) | | | 4,272.3 | | | Other non-utility revenues | | — | | | — | | | 9.1 | | | 9.1 | | | 47.4 | | | — | | | (5.5) | | | 51.0 | | | Total revenues from contracts with customers | | 3,018.2 | | | 959.6 | | | 301.6 | | | 4,279.4 | | | 71.4 | | | — | | | (27.5) | | | 4,323.3 | | | Other operating revenues | | 21.0 | | | 19.3 | | | 3.8 | | | 44.1 | | | 199.7 | | | 0.2 | | | (199.7) | | (1) | 44.3 | | | Total operating revenues | | $ | 3,039.2 | | | $ | 978.9 | | | $ | 305.4 | | | $ | 4,323.5 | | | $ | 271.1 | | | $ | 0.2 | | | $ | (227.2) | | | $ | 4,367.6 | |
(1)Amounts eliminated represent lease revenues related to certain plants that We Power leases to WE to supply electricity to its customers. Lease payments are billed from We Power to WE and then recovered in WE's rates as authorized by the PSCW and the FERC. WE operates the plants and is authorized by the PSCW and Wisconsin state law to fully recover prudently incurred operating and maintenance costs in electric rates.
Revenues from Contracts with Customers
Electric Utility Operating Revenues
The following table disaggregates electric utility operating revenues into customer class: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30 | | Six Months Ended June 30 | | (in millions) | | 2022 | | 2021 | | 2022 | | 2021 | | Residential | | $ | 449.7 | | | $ | 419.0 | | | $ | 912.8 | | | $ | 842.7 | | | Small commercial and industrial | | 378.4 | | | 346.6 | | | 748.5 | | | 678.0 | | | Large commercial and industrial | | 268.1 | | | 224.5 | | | 497.3 | | | 434.0 | | | Other | | 7.2 | | | 6.9 | | | 15.0 | | | 14.7 | | | Total retail revenues | | 1,103.4 | | | 997.0 | | | 2,173.6 | | | 1,969.4 | | | Wholesale | | 40.8 | | | 38.6 | | | 83.2 | | | 78.3 | | | Resale | | 60.7 | | | 37.4 | | | 117.5 | | | 100.1 | | | Steam | | 4.7 | | | 4.2 | | | 16.8 | | | 19.0 | | | Other utility revenues | | 11.5 | | | 6.0 | | | 17.5 | | | 11.4 | | | Total electric utility operating revenues | | $ | 1,221.1 | | | $ | 1,083.2 | | | $ | 2,408.6 | | | $ | 2,178.2 | |
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 June 30, 2022 | | | | | | | | | | Residential | | $ | 198.5 | | | $ | 268.6 | | | $ | 63.5 | | | $ | 530.6 | | | Commercial and industrial | | 102.1 | | | 78.2 | | | 36.6 | | | 216.9 | | | Total retail revenues | | 300.6 | | | 346.8 | | | 100.1 | | | 747.5 | | | Transportation | | 18.0 | | | 54.5 | | | 6.0 | | | 78.5 | | Other utility revenues (1) | | 10.9 | | | 40.9 | | | (10.3) | | | 41.5 | | | Total natural gas utility operating revenues | | $ | 329.5 | | | $ | 442.2 | | | $ | 95.8 | | | $ | 867.5 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | | Wisconsin | | Illinois | | Other States | | Total Natural Gas Utility Operating Revenues | | Three Months Ended June 30, 2021 | | | | | | | | | | Residential | | $ | 188.6 | | | $ | 199.1 | | | $ | 37.9 | | | $ | 425.6 | | | Commercial and industrial | | 90.2 | | | 51.5 | | | 17.3 | | | 159.0 | | | Total retail revenues | | 278.8 | | | 250.6 | | | 55.2 | | | 584.6 | | | Transportation | | 17.8 | | | 48.8 | | | 6.6 | | | 73.2 | | Other utility revenues (1) | | (83.9) | | | (33.3) | | | 5.1 | | | (112.1) | | | Total natural gas utility operating revenues | | $ | 212.7 | | | $ | 266.1 | | | $ | 66.9 | | | $ | 545.7 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | | Wisconsin | | Illinois | | Other States | | Total Natural Gas Utility Operating Revenues | | Six Months Ended June 30, 2022 | | | | | | | | | | Residential | | $ | 701.0 | | | $ | 734.1 | | | $ | 224.8 | | | $ | 1,659.9 | | | Commercial and industrial | | 374.6 | | | 236.5 | | | 123.4 | | | 734.5 | | | Total retail revenues | | 1,075.6 | | | 970.6 | | | 348.2 | | | 2,394.4 | | | Transportation | | 43.5 | | | 135.4 | | | 19.9 | | | 198.8 | | Other utility revenues (1) | | (42.8) | | | 16.1 | | | (34.1) | | | (60.8) | | | Total natural gas utility operating revenues | | $ | 1,076.3 | | | $ | 1,122.1 | | | $ | 334.0 | | | $ | 2,532.4 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | | Wisconsin | | Illinois | | Other States | | Total Natural Gas Utility Operating Revenues | | Six Months Ended June 30, 2021 | | | | | | | | | | Residential | | $ | 536.2 | | | $ | 533.0 | | | $ | 125.8 | | | $ | 1,195.0 | | | Commercial and industrial | | 266.6 | | | 154.2 | | | 61.2 | | | 482.0 | | | Total retail revenues | | 802.8 | | | 687.2 | | | 187.0 | | | 1,677.0 | | | Transportation | | 42.2 | | | 123.0 | | | 17.6 | | | 182.8 | | Other utility revenues (1) | | (5.0) | | | 149.4 | | | 87.9 | | | 232.3 | | | Total natural gas utility operating revenues | | $ | 840.0 | | | $ | 959.6 | | | $ | 292.5 | | | $ | 2,092.1 | | | | | | | | | | |
(1)Includes the revenues subject to the purchased gas recovery mechanisms of our utilities. The amounts for the three months ended June 30, 2022 reflect higher natural gas costs incurred than were anticipated in rates. During the six months ended June 30, 2022, we continued to recover natural gas costs we under-collected from our customers in 2021, related to the extreme weather. As these amounts were billed to customers, they were reflected in retail revenues with an offsetting decrease in other utility revenues. The negative amount during this period also relates to the over-collection of natural gas costs recorded in a regulatory liability due to these costs being lower than what was anticipated in rates. See Note 6, Regulatory Assets and Liabilities, for more information.
The negative amount for the three months ended June 30, 2021 primarily relates to the approval by our utility commissions to recover from customers, over the second quarter of 2021, the higher natural gas costs that were incurred as a result of the extreme winter weather conditions in February 2021. As these amounts were billed to customers, they were reflected in retail revenues with an offsetting decrease in other utility revenues. For the six months ended June 30, 2021, in addition to costs related to the extreme weather event, we incurred higher natural gas costs as a result of an increase in the price of natural gas.
See Note 23, Regulatory Environment, for more information.
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, WPS, and WG, and also provides limited service to unaffiliated customers. All amounts associated with the service agreements with WE, WPS, and WG 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 June 30 | | Six Months Ended June 30 | | (in millions) | | 2022 | | 2021 | | 2022 | | 2021 | | Wind generation revenues | | $ | 21.3 | | | $ | 14.5 | | | $ | 57.5 | | | $ | 30.3 | | We Power revenues (1) | | 5.8 | | | 5.8 | | | 11.7 | | | 11.6 | | | Appliance service revenues | | 4.5 | | | 4.4 | | | 9.1 | | | 9.1 | | | | | | | | | | | | | | | | | | | | | Total other non-utility operating revenues | | $ | 31.6 | | | $ | 24.7 | | | $ | 78.3 | | | $ | 51.0 | |
(1)As part of the construction of the We Power EGUs, 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, which is presented as deferred revenue, net on our balance sheets. We continually amortize the deferred carrying costs to revenues over the related lease term that We Power has with WE.
Other Operating Revenues
Other operating revenues consist primarily of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30 | | Six Months Ended June 30 | | (in millions) | | 2022 | | 2021 | | 2022 | | 2021 | | Late payment charges | | $ | 16.3 | | | $ | 17.3 | | | $ | 29.9 | | | $ | 32.3 | | Alternative revenues (1) | | (11.3) | | | 2.9 | | | (17.3) | | | 9.1 | | | Other | | 1.7 | | | 1.7 | | | 2.6 | | | 2.9 | | | Total other operating revenues | | $ | 6.7 | | | $ | 21.9 | | | $ | 15.2 | | | $ | 44.3 | |
(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, conservation improvement rider true-ups, and certain late payment charges.
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