CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024 and December 31, 2023, 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, 2024
Accounts receivable and unbilled revenues	$	1,100.6		$	516.7		$	90.9		$	1,708.2		$	33.0		$	6.5		$	1,747.7
Allowance for credit losses	83.0			104.6			3.1			190.7			—			—			190.7
Accounts receivable and unbilled revenues, net (1)	$	1,017.6		$	412.1		$	87.8		$	1,517.5		$	33.0		$	6.5		$	1,557.0

Total accounts receivable, net – past due greater than 90 days (1)	$	68.2		$	45.7		$	1.3		$	115.2		$	—		$	—		$	115.2
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	95.0		%	100.0		%	—		%	95.9		%	—		%	—		%	95.9		%


(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
December 31, 2023
Accounts receivable and unbilled revenues	$	1,078.0		$	481.5		$	94.9		$	1,654.4		$	33.9		$	8.4		$	1,696.7
Allowance for credit losses	77.4			109.7			6.4			193.5			—			—			193.5
Accounts receivable and unbilled revenues, net (1)	$	1,000.6		$	371.8		$	88.5		$	1,460.9		$	33.9		$	8.4		$	1,503.2

Total accounts receivable, net – past due greater than 90 days (1)	$	51.7		$	45.0		$	2.1		$	98.8		$	—		$	—		$	98.8
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	93.6		%	100.0		%	—		%	94.5		%	—		%	—		%	94.5		%

(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, 2024, $1,000.4 million, or 64.3%, 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 roll-forward of the allowance for credit losses by reportable segment is included below:


Three Months Ended March 31, 2024 (in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2024	$	77.4	$	109.7	$	6.4	$	193.5
Provision for credit losses	13.8		15.1		(3.0)		25.9
Provision for credit losses deferred for future recovery or refund	15.7		1.3		—		17.0
Write-offs charged against the allowance	(35.6)		(28.0)		(1.3)		(64.9)
Recoveries of amounts previously written off	11.7		6.5		1.0		19.2
Balance at March 31, 2024	$	83.0	$	104.6	$	3.1	$	190.7

On a consolidated basis, there was a $2.8 million decrease in the allowance for credit losses at March 31, 2024, compared to January 1, 2024, driven by lower required reserve percentages at our Illinois and Other States segments as a result of an improvement in loss rates. Reserve percentages at our Wisconsin segment did not change significantly from those calculated in 2023. Largely offsetting the decrease in the allowance for credit losses, we saw an increase in past due accounts receivable balances at our Wisconsin and Illinois segments. An increase in past due balances is a trend we generally see over the winter moratorium months, when we are not allowed to disconnect 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, 2023 (in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2023	$	82.0	$	111.0	$	6.3	$	199.3
Provision for credit losses	11.2		8.5		1.3		21.0
Provision for credit losses deferred for future recovery or refund	20.4		15.2		—		35.6
Write-offs charged against the allowance	(28.9)		(23.0)		(1.6)		(53.5)
Recoveries of amounts previously written off	6.2		4.8		0.4		11.4
Balance at March 31, 2023	$	90.9	$	116.5	$	6.4	$	213.8

On a consolidated basis, there was a $14.5 million increase in the allowance for credit losses at March 31, 2023, compared to January 1, 2023, driven by an increase in past due accounts receivable balances at our Wisconsin and Illinois reportable segments. As discussed above, an increase in past due balances is a trend we generally see over the winter moratorium months.