OPERATING REVENUES

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

OPERATING REVENUES

OPERATING REVENUES

For more information about our operating revenues, see Note 1(d), Operating Revenues, in our 2022 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 has 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 September 30, 2023
Electric	$	1,457.8	$	—	$	—	$	1,457.8	$	—	$	—	$	—		$	1,457.8
Natural gas	159.5		234.8		42.5		436.8		12.9		—		(12.3)			437.4
Total regulated revenues	1,617.3		234.8		42.5		1,894.6		12.9		—		(12.3)			1,895.2
Other non-utility revenues	—		—		4.9		4.9		45.6		—		(1.7)			48.8
Total revenues from contracts with customers	1,617.3		234.8		47.4		1,899.5		58.5		—		(14.0)			1,944.0
Other operating revenues	4.7		8.5		0.2		13.4		101.3		—		(101.3)		(1)	13.4
Total operating revenues	$	1,622.0	$	243.3	$	47.6	$	1,912.9	$	159.8	$	—	$	(115.3)		$	1,957.4

(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 September 30, 2022
Electric	$	1,436.9	$	—	$	—	$	1,436.9	$	—	$	—	$	—		$	1,436.9
Natural gas	234.9		224.0		63.9		522.8		12.1		—		(11.3)			523.6
Total regulated revenues	1,671.8		224.0		63.9		1,959.7		12.1		—		(11.3)			1,960.5
Other non-utility revenues	—		—		4.8		4.8		27.3		—		(1.5)			30.6
Total revenues from contracts with customers	1,671.8		224.0		68.7		1,964.5		39.4		—		(12.8)			1,991.1
Other operating revenues	5.0		6.3		0.5		11.8		100.5		0.1		(100.5)		(1)	11.9
Total operating revenues	$	1,676.8	$	230.3	$	69.2	$	1,976.3	$	139.9	$	0.1	$	(113.3)		$	2,003.0

(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Nine Months Ended September 30, 2023
Electric	$	3,840.1	$	—	$	—	$	3,840.1	$	—	$	—	$	—		$	3,840.1
Natural gas	1,183.8		1,072.5		364.4		2,620.7		48.3		—		(47.0)			2,622.0
Total regulated revenues	5,023.9		1,072.5		364.4		6,460.8		48.3		—		(47.0)			6,462.1
Other non-utility revenues	—		—		14.8		14.8		142.4		—		(7.1)			150.1
Total revenues from contracts with customers	5,023.9		1,072.5		379.2		6,475.6		190.7		—		(54.1)			6,612.2
Other operating revenues	18.9		44.0		0.3		63.2		304.3		0.1		(304.3)		(1)	63.3
Total operating revenues	$	5,042.8	$	1,116.5	$	379.5	$	6,538.8	$	495.0	$	0.1	$	(358.4)		$	6,675.5

(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Nine Months Ended September 30, 2022
Electric	$	3,845.5	$	—	$	—	$	3,845.5	$	—	$	—	$	—		$	3,845.5
Natural gas	1,311.2		1,346.1		397.9		3,055.2		39.4		—		(37.1)			3,057.5
Total regulated revenues	5,156.7		1,346.1		397.9		6,900.7		39.4		—		(37.1)			6,903.0
Other non-utility revenues	—		—		13.9		13.9		102.1		—		(7.1)			108.9
Total revenues from contracts with customers	5,156.7		1,346.1		411.8		6,914.6		141.5		—		(44.2)			7,011.9
Other operating revenues	19.8		8.7		(1.8)		26.7		301.5		0.4		(301.5)		(1)	27.1
Total operating revenues	$	5,176.5	$	1,354.8	$	410.0	$	6,941.3	$	443.0	$	0.4	$	(345.7)		$	7,039.0

(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 by customer class:

	Three Months Ended September 30				Nine Months Ended September 30
(in millions)	2023		2022		2023		2022
Residential	$	584.9	$	529.7	$	1,530.5	$	1,442.5
Small commercial and industrial	462.2		424.8		1,257.3		1,173.3
Large commercial and industrial	289.9		316.8		759.6		814.1
Other	7.2		7.1		22.4		22.1
Total retail revenues	1,344.2		1,278.4		3,569.8		3,452.0
Wholesale	31.9		39.7		96.5		122.9
Resale	75.3		102.7		147.8		220.2
Steam	2.6		3.0		18.2		19.8
Other utility revenues	3.8		13.1		7.8		30.6
Total electric utility operating revenues	$	1,457.8	$	1,436.9	$	3,840.1	$	3,845.5

Natural Gas Utility Operating Revenues

The following tables disaggregate natural gas utility operating revenues by customer class:

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Three Months Ended September 30, 2023
Residential	$	81.7	$	148.3	$	27.5	$	257.5
Commercial and industrial	34.0		30.8		12.1		76.9
Total retail revenues	115.7		179.1		39.6		334.4
Transportation	18.2		41.9		6.3		66.4
Other utility revenues (1)	25.6		13.8		(3.4)		36.0
Total natural gas utility operating revenues	$	159.5	$	234.8	$	42.5	$	436.8

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Three Months Ended September 30, 2022
Residential	$	122.1	$	177.0	$	31.5	$	330.6
Commercial and industrial	75.5		52.6		21.5		149.6
Total retail revenues	197.6		229.6		53.0		480.2
Transportation	15.9		46.1		5.3		67.3
Other utility revenues (1)	21.4		(51.7)		5.6		(24.7)
Total natural gas utility operating revenues	$	234.9	$	224.0	$	63.9	$	522.8

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Nine Months Ended September 30, 2023
Residential	$	756.6	$	697.2	$	245.6	$	1,699.4
Commercial and industrial	379.8		191.1		129.8		700.7
Total retail revenues	1,136.4		888.3		375.4		2,400.1
Transportation	67.5		167.3		23.4		258.2
Other utility revenues (1)	(20.1)		16.9		(34.4)		(37.6)
Total natural gas utility operating revenues	$	1,183.8	$	1,072.5	$	364.4	$	2,620.7

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Nine Months Ended September 30, 2022
Residential	$	823.1	$	911.1	$	256.3	$	1,990.5
Commercial and industrial	450.1		289.1		144.9		884.1
Total retail revenues	1,273.2		1,200.2		401.2		2,874.6
Transportation	59.4		181.5		25.2		266.1
Other utility revenues (1)	(21.4)		(35.6)		(28.5)		(85.5)
Total natural gas utility operating revenues	$	1,311.2	$	1,346.1	$	397.9	$	3,055.2

(1)Includes the revenues subject to the purchased gas recovery mechanisms of our utilities, which fluctuate by segment based on actual natural gas costs incurred at our utilities, compared with the recovery of natural gas costs that were anticipated in rates.

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 September 30				Nine Months Ended September 30
(in millions)	2023		2022		2023		2022
Wind generation revenues	$	38.2	$	20.0	$	117.8	$	77.5
We Power revenues (1)	5.7		5.8		17.5		17.5
Appliance service revenues	4.9		4.8		14.8		13.9
Total other non-utility operating revenues	$	48.8	$	30.6	$	150.1	$	108.9

(1)As part of the construction of the We Power electric utility 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, 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 September 30				Nine Months Ended September 30
(in millions)	2023		2022		2023		2022
Late payment charges	$	12.4	$	13.6	$	45.8	$	43.5
Alternative revenues (1)	—		(2.4)		13.9		(19.7)
Other	1.0		0.7		3.6		3.3
Total other operating revenues	$	13.4	$	11.9	$	63.3	$	27.1

(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.