REGULATORY ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2022

Regulatory Assets and Liabilities Disclosure [Abstract]


(in millions)	September 30, 2022		December 31, 2021
Regulatory assets
Pension and OPEB costs	$	742.9	$	802.3
Plant retirement related items	698.0		722.3
Environmental remediation costs	616.3		630.9
Income tax related items	457.8		458.8
Asset retirement obligations	181.9		194.2
System support resource	125.5		129.5
Securitization	94.0		100.7
Energy costs recoverable through rate adjustments	73.5		85.4
Derivatives (1)	70.6		33.1
MERC extraordinary natural gas costs	44.9		59.7
Uncollectible expense	36.6		42.6
Energy efficiency programs	29.6		22.0
Other, net	79.6		85.6
Total regulatory assets	$	3,251.2	$	3,367.1

Balance sheet presentation
Other current assets	$	87.0	$	102.3
Regulatory assets	3,164.2		3,264.8
Total regulatory assets	$	3,251.2	$	3,367.1

(1) For most energy-related physical and financial contracts that qualify as derivatives, our regulators allow the effects of fair value accounting to be offset to regulatory assets and liabilities. See Note 15, Derivative Instruments, for more information on our derivative asset and liability balances.

Schedule of regulatory liabilities


(in millions)	September 30, 2022		December 31, 2021
Regulatory liabilities
Income tax related items	$	1,959.0	$	1,998.5
Removal costs	1,255.5		1,248.0
Pension and OPEB benefits	384.0		397.3
Derivatives (1)	241.3		124.1
Energy costs refundable through rate adjustments (2)	45.3		13.7
Uncollectible expense	30.6		37.1
Electric transmission costs (3)	15.9		84.2
Earnings sharing mechanisms (3)	10.1		28.4
Other, net	53.2		29.0
Total regulatory liabilities	$	3,994.9	$	3,960.3

Balance sheet presentation
Other current liabilities	$	47.9	$	14.3
Regulatory liabilities	3,947.0		3,946.0
Total regulatory liabilities	$	3,994.9	$	3,960.3

(2) The increase in these regulatory liabilities was primarily related to lower natural gas costs incurred during 2022, compared to what was anticipated in rates.

(3) The decrease in these regulatory liability balances was primarily related to the PSCW's approval of certain accounting treatments that allowed our Wisconsin utilities to forego applying for a 2022 base rate increase, and instead maintain base rates consistent with 2021 levels. Among the accounting treatments approved was the amortization of certain regulatory liability balances in 2022, to offset a portion of the forecasted revenue deficiency. See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for additional information on 2022 Wisconsin base rates.