Commission File Number | Registrant; State of Incorporation; Address; and Telephone Number | IRS Employer Identification No. | ||
1-11337 | INTEGRYS ENERGY GROUP, INC. (A Wisconsin Corporation) 130 East Randolph Street Chicago, IL 60601-6207 (312) 228-5400 | 39-1775292 |
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AFUDC | Allowance for Funds Used During Construction |
AMRP | Accelerated Natural Gas Main Replacement Program |
ASC | Accounting Standards Codification |
ATC | American Transmission Company LLC |
EPA | United States Environmental Protection Agency |
FASB | Financial Accounting Standards Board |
FERC | Federal Energy Regulatory Commission |
GAAP | United States Generally Accepted Accounting Principles |
IBS | Integrys Business Support, LLC |
ICC | Illinois Commerce Commission |
IRS | United States Internal Revenue Service |
ITF | Integrys Transportation Fuels, LLC (doing business as Trillium CNG) |
LIFO | Last-in, First-out |
MERC | Minnesota Energy Resources Corporation |
MGU | Michigan Gas Utilities Corporation |
MISO | Midwest Independent Transmission System Operator, Inc. |
MPSC | Michigan Public Service Commission |
MPUC | Minnesota Public Utilities Commission |
N/A | Not Applicable |
NSG | North Shore Gas Company |
OCI | Other Comprehensive Income |
PELLC | Peoples Energy, LLC (formerly known as Peoples Energy Corporation) |
PGL | The Peoples Gas Light and Coke Company |
PSCW | Public Service Commission of Wisconsin |
SEC | United States Securities and Exchange Commission |
UPPCO | Upper Peninsula Power Company |
WDNR | Wisconsin Department of Natural Resources |
WPS | Wisconsin Public Service Corporation |
• | The timing and resolution of rate cases and related negotiations, including recovery of deferred and current costs and the ability to earn a reasonable return on investment, and other regulatory decisions impacting our regulated businesses; |
• | Federal and state legislative and regulatory changes relating to the environment, including climate change and other environmental regulations impacting generation facilities and renewable energy standards; |
• | Other federal and state legislative and regulatory changes, including deregulation and restructuring of the electric and natural gas utility industries, financial reform, health care reform, energy efficiency mandates, reliability standards, pipeline integrity and safety standards, and changes in tax and other laws and regulations to which we and our subsidiaries are subject; |
• | Costs and effects of litigation and administrative proceedings, settlements, investigations, and claims; |
• | Changes in credit ratings and interest rates caused by volatility in the financial markets and actions of rating agencies and their impact on our and our subsidiaries’ liquidity and financing efforts; |
• | The risks associated with changing commodity prices, particularly natural gas and electricity, and the available sources of fuel, natural gas, and purchased power, including their impact on margins, working capital, and liquidity requirements; |
• | The timing and outcome of any audits, disputes, and other proceedings related to taxes; |
• | The effects, extent, and timing of additional competition or regulation in the markets in which our subsidiaries operate; |
• | The ability to retain market-based rate authority; |
• | The risk associated with the value of goodwill or other intangible assets and their possible impairment; |
• | The investment performance of employee benefit plan assets and related actuarial assumptions, which impact future funding requirements; |
• | The impact of unplanned facility outages; |
• | Changes in technology, particularly with respect to new, developing, or alternative sources of generation; |
• | The effects of political developments, as well as changes in economic conditions and the related impact on customer use, customer growth, and our ability to adequately forecast energy use for our customers; |
• | Potential business strategies, including mergers, acquisitions, and construction or disposition of assets or businesses, which cannot be assured to be completed timely or within budgets; |
• | The risk of terrorism or cyber security attacks, including the associated costs to protect our assets and respond to such events; |
• | The risk of failure to maintain the security of personally identifiable information, including the associated costs to notify affected persons and to mitigate their information security concerns; |
• | The effectiveness of risk management strategies, the use of financial and derivative instruments, and the related recovery of these costs from customers in rates; |
• | The risk of financial loss, including increases in bad debt expense, associated with the inability of our and our subsidiaries’ counterparties, affiliates, and customers to meet their obligations; |
• | Unusual weather and other natural phenomena, including related economic, operational, and/or other ancillary effects of any such events; |
• | The ability to use tax credit and loss carryforwards; |
• | The financial performance of ATC and its corresponding contribution to our earnings; |
• | The effect of accounting pronouncements issued periodically by standard-setting bodies; and |
• | Other factors discussed elsewhere herein and in other reports we file with the SEC. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | Three Months Ended | |||||||
March 31 | ||||||||
(Millions, except per share data) | 2013 | 2012 | ||||||
Utility revenues | $ | 1,123.8 | $ | 971.0 | ||||
Nonregulated revenues | 554.4 | 276.9 | ||||||
Total revenues | 1,678.2 | 1,247.9 | ||||||
Utility cost of fuel, natural gas, and purchased power | 565.1 | 472.3 | ||||||
Nonregulated cost of sales | 436.8 | 273.7 | ||||||
Operating and maintenance expense | 295.1 | 259.3 | ||||||
Depreciation and amortization expense | 60.9 | 62.1 | ||||||
Taxes other than income taxes | 27.2 | 27.4 | ||||||
Operating income | 293.1 | 153.1 | ||||||
Earnings from equity method investments | 22.3 | 21.1 | ||||||
Miscellaneous income | 5.7 | 2.4 | ||||||
Interest expense | (29.3 | ) | (30.4 | ) | ||||
Other expense | (1.3 | ) | (6.9 | ) | ||||
Income before taxes | 291.8 | 146.2 | ||||||
Provision for income taxes | 109.6 | 47.4 | ||||||
Net income from continuing operations | 182.2 | 98.8 | ||||||
Discontinued operations, net of tax | 6.1 | 0.9 | ||||||
Net income | 188.3 | 99.7 | ||||||
Preferred stock dividends of subsidiary | (0.8 | ) | (0.8 | ) | ||||
Net income attributed to common shareholders | $ | 187.5 | $ | 98.9 | ||||
Average shares of common stock | ||||||||
Basic | 78.7 | 78.6 | ||||||
Diluted | 79.3 | 79.2 | ||||||
Earnings per common share (basic) | ||||||||
Net income from continuing operations | $ | 2.30 | $ | 1.25 | ||||
Discontinued operations, net of tax | 0.08 | 0.01 | ||||||
Earnings per common share (basic) | $ | 2.38 | $ | 1.26 | ||||
Earnings per common share (diluted) | ||||||||
Net income from continuing operations | $ | 2.29 | $ | 1.24 | ||||
Discontinued operations, net of tax | 0.08 | 0.01 | ||||||
Earnings per common share (diluted) | $ | 2.37 | $ | 1.25 | ||||
Dividends per common share declared | $ | 0.68 | $ | 0.68 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | Three Months Ended | |||||||
March 31 | ||||||||
(Millions) | 2013 | 2012 | ||||||
Net income | $ | 188.3 | $ | 99.7 | ||||
Other comprehensive income, net of tax: | ||||||||
Cash flow hedges | ||||||||
Unrealized net gains (losses) arising during period, net of tax of $ – million and $(0.2) million, respectively | 0.1 | (0.3 | ) | |||||
Reclassification of net losses to net income, net of tax of $0.6 million and $1.0 million, respectively | 0.9 | 1.5 | ||||||
Cash flow hedges, net | 1.0 | 1.2 | ||||||
Defined benefit pension plans | ||||||||
Amortization of pension and other postretirement benefit costs included in net periodic benefit cost, net of tax of $0.4 million and $0.3 million, respectively | 0.6 | 0.3 | ||||||
Other comprehensive income, net of tax | 1.6 | 1.5 | ||||||
Comprehensive income | 189.9 | 101.2 | ||||||
Preferred stock dividends of subsidiary | (0.8 | ) | (0.8 | ) | ||||
Comprehensive income attributed to common shareholders | $ | 189.1 | $ | 100.4 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | March 31 | December 31 | ||||||
(Millions) | 2013 | 2012 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 72.0 | $ | 27.4 | ||||
Collateral on deposit | 25.4 | 41.0 | ||||||
Accounts receivable and accrued unbilled revenues, net of reserves of $47.2 and $43.5, respectively | 899.0 | 796.8 | ||||||
Inventories | 140.2 | 271.9 | ||||||
Assets from risk management activities | 182.5 | 145.4 | ||||||
Regulatory assets | 88.4 | 110.8 | ||||||
Assets held for sale | 2.5 | 10.1 | ||||||
Deferred income taxes | 42.8 | 64.3 | ||||||
Prepaid taxes | 116.6 | 152.8 | ||||||
Other current assets | 31.3 | 38.6 | ||||||
Current assets | 1,600.7 | 1,659.1 | ||||||
Property, plant, and equipment, net of accumulated depreciation of $3,225.5 and $3,114.7, respectively | 5,941.8 | 5,501.9 | ||||||
Regulatory assets | 1,842.7 | 1,813.8 | ||||||
Assets from risk management activities | 50.3 | 45.3 | ||||||
Equity method investments | 518.3 | 512.2 | ||||||
Goodwill | 658.3 | 658.3 | ||||||
Other long-term assets | 152.3 | 136.8 | ||||||
Total assets | $ | 10,764.4 | $ | 10,327.4 | ||||
Liabilities and Equity | ||||||||
Short-term debt | $ | 756.4 | $ | 482.4 | ||||
Current portion of long-term debt | 291.5 | 313.5 | ||||||
Accounts payable | 450.1 | 457.7 | ||||||
Liabilities from risk management activities | 140.9 | 181.9 | ||||||
Accrued taxes | 95.9 | 83.0 | ||||||
Regulatory liabilities | 84.8 | 65.6 | ||||||
Liabilities held for sale | — | 0.2 | ||||||
Other current liabilities | 287.1 | 229.0 | ||||||
Current liabilities | 2,106.7 | 1,813.3 | ||||||
Long-term debt | 1,931.7 | 1,931.7 | ||||||
Deferred income taxes | 1,263.9 | 1,203.8 | ||||||
Deferred investment tax credits | 48.9 | 49.3 | ||||||
Regulatory liabilities | 377.6 | 370.5 | ||||||
Environmental remediation liabilities | 641.2 | 651.5 | ||||||
Pension and other postretirement benefit obligations | 566.4 | 625.2 | ||||||
Liabilities from risk management activities | 49.3 | 58.4 | ||||||
Asset retirement obligations | 416.3 | 411.2 | ||||||
Other long-term liabilities | 138.3 | 135.7 | ||||||
Long-term liabilities | 5,433.6 | 5,437.3 | ||||||
Commitments and contingencies | ||||||||
Common stock – $1 par value; 200,000,000 shares authorized; 78,809,948 shares issued; 78,353,096 shares outstanding | 78.8 | 78.3 | ||||||
Additional paid-in capital | 2,590.2 | 2,574.6 | ||||||
Retained earnings | 565.4 | 431.5 | ||||||
Accumulated other comprehensive loss | (39.3 | ) | (40.9 | ) | ||||
Shares in deferred compensation trust | (22.0 | ) | (17.7 | ) | ||||
Total common shareholders’ equity | 3,173.1 | 3,025.8 | ||||||
Preferred stock of subsidiary – $100 par value; 1,000,000 shares authorized; 511,882 shares issued; 510,495 shares outstanding | 51.1 | 51.1 | ||||||
Noncontrolling interest in subsidiaries | (0.1 | ) | (0.1 | ) | ||||
Total liabilities and equity | $ | 10,764.4 | $ | 10,327.4 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | Three Months Ended | |||||||
March 31 | ||||||||
(Millions) | 2013 | 2012 | ||||||
Operating Activities | ||||||||
Net income | $ | 188.3 | $ | 99.7 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Discontinued operations, net of tax | (6.1 | ) | (0.9 | ) | ||||
Depreciation and amortization expense | 60.9 | 62.1 | ||||||
Recoveries and refunds of regulatory assets and liabilities | 16.5 | 9.5 | ||||||
Net unrealized (gains) losses on energy contracts | (65.2 | ) | 43.7 | |||||
Bad debt expense | 9.3 | 10.1 | ||||||
Pension and other postretirement expense | 15.9 | 17.5 | ||||||
Pension and other postretirement contributions | (63.2 | ) | (246.2 | ) | ||||
Deferred income taxes and investment tax credits | 68.3 | 29.7 | ||||||
Equity income, net of dividends | (4.4 | ) | (3.8 | ) | ||||
Termination of tolling agreement with Fox Energy Company LLC | (50.0 | ) | — | |||||
Other | 6.3 | 2.7 | ||||||
Changes in working capital | ||||||||
Collateral on deposit | 15.4 | (13.7 | ) | |||||
Accounts receivable and accrued unbilled revenues | (182.8 | ) | 49.8 | |||||
Inventories | 137.9 | 133.0 | ||||||
Other current assets | 45.4 | 54.6 | ||||||
Accounts payable | 24.7 | (77.7 | ) | |||||
Temporary LIFO liquidation credit | 83.2 | 36.7 | ||||||
Other current liabilities | 19.2 | 18.0 | ||||||
Net cash provided by operating activities | 319.6 | 224.8 | ||||||
Investing Activities | ||||||||
Capital expenditures | (147.0 | ) | (123.0 | ) | ||||
Proceeds from the sale or disposal of assets | 1.1 | 1.4 | ||||||
Capital contributions to equity method investments | (1.7 | ) | (10.4 | ) | ||||
Acquisition of Fox Energy Company LLC | (391.6 | ) | — | |||||
Grant received related to Crane Creek Wind Project | 69.0 | — | ||||||
Other | (3.0 | ) | (4.6 | ) | ||||
Net cash used for investing activities | (473.2 | ) | (136.6 | ) | ||||
Financing Activities | ||||||||
Short-term debt, net | 74.0 | 2.2 | ||||||
Borrowing on term credit facility | 200.0 | — | ||||||
Repayment of long-term debt | (22.0 | ) | — | |||||
Proceeds from stock option exercises | 6.4 | 10.1 | ||||||
Shares purchased for stock-based compensation | (2.0 | ) | (24.6 | ) | ||||
Payment of dividends | ||||||||
Preferred stock of subsidiary | (0.8 | ) | (0.8 | ) | ||||
Common stock | (50.1 | ) | (53.0 | ) | ||||
Payments made on derivative contracts related to divestitures classified as financing activities | (3.8 | ) | (9.0 | ) | ||||
Other | (4.5 | ) | 0.2 | |||||
Net cash provided by (used for) financing activities | 197.2 | (74.9 | ) | |||||
Change in cash and cash equivalents – continuing operations | 43.6 | 13.3 | ||||||
Change in cash and cash equivalents – discontinued operations | ||||||||
Net cash (used for) provided by operating activities | (0.6 | ) | 1.0 | |||||
Net cash provided by (used for) investing activities | 1.6 | (0.1 | ) | |||||
Net change in cash and cash equivalents | 44.6 | 14.2 | ||||||
Cash and cash equivalents at beginning of period | 27.4 | 28.1 | ||||||
Cash and cash equivalents at end of period | $ | 72.0 | $ | 42.3 |
Three Months Ended March 31 | ||||||||
(Millions) | 2013 | 2012 | ||||||
Cash paid for interest | $ | 4.8 | $ | 8.9 | ||||
Cash received for income taxes | (1.0 | ) | (33.2 | ) |
Three Months Ended March 31 | ||||||||
(Millions) | 2013 | 2012 | ||||||
Construction costs funded through accounts payable | $ | 59.8 | $ | 50.2 | ||||
Equity issued for stock-based compensation plans | 18.7 | — | ||||||
Equity issued for reinvested dividends | 3.0 | — | ||||||
Risk management asset related to sale of Beaver Falls and Syracuse * | 6.8 | — |
March 31, 2013 | ||||||||||
(Millions) | Balance Sheet Presentation * | Assets from Risk Management Activities | Liabilities from Risk Management Activities | |||||||
Utility Segments | ||||||||||
Nonhedge derivatives | ||||||||||
Natural gas contracts | Current | $ | 9.8 | $ | 3.7 | |||||
Natural gas contracts | Long-term | 1.9 | — | |||||||
Financial transmission rights (FTRs) | Current | 1.0 | 0.1 | |||||||
Petroleum product contracts | Current | 0.1 | — | |||||||
Coal contracts | Current | 0.1 | 2.8 | |||||||
Coal contracts | Long-term | — | 2.0 | |||||||
Cash flow hedges | ||||||||||
Natural gas contracts | Current | — | 0.1 | |||||||
Nonregulated Segments | ||||||||||
Nonhedge derivatives | ||||||||||
Natural gas contracts | Current | 24.3 | 19.7 | |||||||
Natural gas contracts | Long-term | 10.0 | 5.3 | |||||||
Electric contracts | Current | 147.2 | 114.5 | |||||||
Electric contracts | Long-term | 38.4 | 42.0 | |||||||
Current | 182.5 | 140.9 | ||||||||
Long-term | 50.3 | 49.3 | ||||||||
Total | $ | 232.8 | $ | 190.2 |
December 31, 2012 | ||||||||||
(Millions) | Balance Sheet Presentation * | Assets from Risk Management Activities | Liabilities from Risk Management Activities | |||||||
Utility Segments | ||||||||||
Nonhedge derivatives | ||||||||||
Natural gas contracts | Current | $ | 2.5 | $ | 14.0 | |||||
Natural gas contracts | Long-term | 0.9 | 0.8 | |||||||
FTRs | Current | 2.1 | 0.1 | |||||||
Petroleum product contracts | Current | 0.2 | — | |||||||
Coal contracts | Current | 0.3 | 4.7 | |||||||
Coal contracts | Long-term | 2.2 | 4.3 | |||||||
Cash flow hedges | ||||||||||
Natural gas contracts | Current | — | 0.4 | |||||||
Nonregulated Segments | ||||||||||
Nonhedge derivatives | ||||||||||
Natural gas contracts | Current | 51.7 | 48.5 | |||||||
Natural gas contracts | Long-term | 11.5 | 7.6 | |||||||
Electric contracts | Current | 88.6 | 114.2 | |||||||
Electric contracts | Long-term | 30.7 | 45.7 | |||||||
Current | 145.4 | 181.9 | ||||||||
Long-term | 45.3 | 58.4 | ||||||||
Total | $ | 190.7 | $ | 240.3 |
March 31, 2013 | ||||||||||||
(Millions) | Gross Amount | Gross Amount Not Offset in the Balance Sheet, including Cash Collateral | Net Amount | |||||||||
Derivative assets subject to master netting or similar arrangements | ||||||||||||
Utility Segments | $ | 12.8 | $ | 3.4 | $ | 9.4 | ||||||
Nonregulated Segments | 219.7 | 160.3 | 59.4 | |||||||||
Total | 232.5 | 163.7 | 68.8 | |||||||||
Derivative assets not subject to master netting or similar arrangements | 0.3 | 0.3 | ||||||||||
Total risk management assets | $ | 232.8 | $ | 69.1 | ||||||||
Derivative liabilities subject to master netting or similar arrangements | ||||||||||||
Utility Segments | $ | 3.9 | $ | 3.4 | $ | 0.5 | ||||||
Nonregulated Segments | 181.4 | 160.3 | 21.1 | |||||||||
Total | 185.3 | 163.7 | 21.6 | |||||||||
Derivative liabilities not subject to master netting or similar arrangements | 4.9 | 4.9 | ||||||||||
Total risk management liabilities | $ | 190.2 | $ | 26.5 |
December 31, 2012 | ||||||||||||
(Millions) | Gross Amount | Gross Amount Not Offset in the Balance Sheet, including Cash Collateral | Net Amount | |||||||||
Derivative assets subject to master netting or similar arrangements | ||||||||||||
Utility Segments | $ | 5.7 | $ | 3.0 | $ | 2.7 | ||||||
Nonregulated Segments | 182.5 | 145.4 | 37.1 | |||||||||
Total | 188.2 | 148.4 | 39.8 | |||||||||
Derivative assets not subject to master netting or similar arrangements | 2.5 | 2.5 | ||||||||||
Total risk management assets | $ | 190.7 | $ | 42.3 | ||||||||
Derivative liabilities subject to master netting or similar arrangements | ||||||||||||
Utility Segments | $ | 15.3 | $ | 3.8 | $ | 11.5 | ||||||
Nonregulated Segments | 215.4 | 159.8 | 55.6 | |||||||||
Total | 230.7 | 163.6 | 67.1 | |||||||||
Derivative liabilities not subject to master netting or similar arrangements | 9.6 | 9.6 | ||||||||||
Total risk management liabilities | $ | 240.3 | $ | 76.7 |
(Millions) | March 31, 2013 | December 31, 2012 | ||||||
Cash collateral provided to others: | ||||||||
Related to contracts under master netting or similar arrangements | $ | 24.3 | $ | 39.9 | ||||
Other | 1.1 | 1.1 | ||||||
Cash collateral received from others related to contracts under master netting or similar arrangements * | — | 0.2 |
(Millions) | March 31, 2013 | December 31, 2012 | ||||||
Integrys Energy Services | $ | 67.2 | $ | 108.9 | ||||
Utility segments | 3.8 | 14.0 |
(Millions) | March 31, 2013 | December 31, 2012 | ||||||
Collateral that would have been required: | ||||||||
Integrys Energy Services | $ | 124.6 | $ | 173.8 | ||||
Utility segments | 0.4 | 10.1 | ||||||
Collateral already satisfied: | ||||||||
Integrys Energy Services — Letters of credit | 3.2 | 3.2 | ||||||
Collateral remaining: | ||||||||
Integrys Energy Services | 121.4 | 170.6 | ||||||
Utility segments | 0.4 | 10.1 |
March 31, 2013 | December 31, 2012 | ||||||||||||||||
Purchases | Sales | Other Transactions | Purchases | Sales | Other Transactions | ||||||||||||
Natural gas (millions of therms) | 595.4 | — | N/A | 1,072.6 | 0.1 | N/A | |||||||||||
FTRs (millions of kilowatt-hours) | N/A | N/A | 1,579.0 | N/A | N/A | 4,057.2 | |||||||||||
Petroleum products (barrels) | 50,855.0 | N/A | N/A | 62,811.0 | N/A | N/A | |||||||||||
Coal contracts (millions of tons) | 4.7 | 0.2 | N/A | 5.1 | N/A | N/A |
Three Months Ended March 31 | ||||||||||
(Millions) | Financial Statement Presentation | 2013 | 2012 | |||||||
Natural gas contracts | Balance Sheet — Regulatory assets (current) | $ | 13.0 | $ | (6.4 | ) | ||||
Natural gas contracts | Balance Sheet — Regulatory assets (long-term) | 0.8 | (0.8 | ) | ||||||
Natural gas contracts | Balance Sheet — Regulatory liabilities (current) | 5.9 | (3.7 | ) | ||||||
Natural gas contracts | Balance Sheet — Regulatory liabilities (long-term) | 0.8 | 0.1 | |||||||
Natural gas contracts | Income Statement — Utility cost of fuel, natural gas, and purchased power | — | 0.1 | |||||||
Natural gas contracts | Income Statement — Operating and maintenance expense | 0.2 | — | |||||||
FTRs | Balance Sheet — Regulatory assets (current) | 0.2 | 0.4 | |||||||
FTRs | Balance Sheet — Regulatory liabilities (current) | (0.4 | ) | (0.3 | ) | |||||
Petroleum product contracts | Balance Sheet — Regulatory assets (current) | — | 0.1 | |||||||
Petroleum product contracts | Balance Sheet — Regulatory liabilities (current) | — | 0.1 | |||||||
Petroleum product contracts | Income Statement — Operating and maintenance expense | — | 0.1 | |||||||
Coal contracts | Balance Sheet — Regulatory assets (current) | 1.9 | (3.1 | ) | ||||||
Coal contracts | Balance Sheet — Regulatory assets (long-term) | 2.3 | (3.5 | ) | ||||||
Coal contracts | Balance Sheet — Regulatory liabilities (current) | (0.2 | ) | — | ||||||
Coal contracts | Balance Sheet — Regulatory liabilities (long-term) | (2.2 | ) | — |
March 31, 2013 | December 31, 2012 | |||||||||||
(Millions) | Purchases | Sales | Purchases | Sales | ||||||||
Commodity contracts | ||||||||||||
Natural gas (therms) | 641.5 | 556.2 | 782.0 | 679.0 | ||||||||
Electric (kilowatt-hours) | 56,100.1 | 34,502.0 | 54,127.6 | 31,809.6 | ||||||||
Foreign exchange contracts (Canadian dollars) | 0.4 | 0.4 | 0.4 | 0.4 |
Three Months Ended March 31 | ||||||||||
(Millions) | Income Statement Presentation | 2013 | 2012 | |||||||
Natural gas contracts | Nonregulated revenue | $ | 3.4 | $ | 4.0 | |||||
Natural gas contracts | Nonregulated cost of sales | (1.6 | ) | — | ||||||
Natural gas contracts | Nonregulated revenue (reclassified from accumulated OCI) * | (0.1 | ) | (1.2 | ) | |||||
Electric contracts | Nonregulated revenue | 64.0 | (68.6 | ) | ||||||
Electric contracts | Nonregulated revenue (reclassified from accumulated OCI) * | (1.0 | ) | (0.7 | ) | |||||
Total | $ | 64.7 | $ | (66.5 | ) |
(Millions) | ||||
Assets acquired | ||||
Inventories | $ | 3.0 | ||
Other current assets | 0.6 | |||
Property, plant, and equipment | 374.4 | |||
Other long-term assets * | 15.6 | |||
Total assets acquired | $ | 393.6 | ||
Liabilities assumed | ||||
Accounts payable | $ | 2.0 | ||
Total liabilities assumed | $ | 2.0 |
(Millions) | March 31, 2013 | December 31, 2012 | ||||||
Inventories | $ | 0.5 | $ | 0.5 | ||||
Property, plant, and equipment, net of accumulated depreciation of $0.5 million | 2.0 | 2.0 | ||||||
Total assets | $ | 2.5 | $ | 2.5 |
(Millions) | 2013 | 2012 | ||||||
Nonregulated revenues | $ | — | $ | 0.4 | ||||
Nonregulated cost of sales | (0.1 | ) | (0.3 | ) | ||||
Operating and maintenance expense | (0.1 | ) | (0.2 | ) | ||||
Depreciation and amortization expense | — | (0.1 | ) | |||||
Taxes other than income taxes | — | (0.1 | ) | |||||
Loss before taxes | (0.2 | ) | (0.3 | ) | ||||
Benefit for income taxes | 0.1 | 0.1 | ||||||
Discontinued operations, net of tax | $ | (0.1 | ) | $ | (0.2 | ) |
(Millions) | As of the Closing Date on March 14, 2013 | As of December 31, 2012 | ||||||
Inventories | $ | 1.8 | $ | 1.8 | ||||
Other current assets | 0.2 | — | ||||||
Property, plant, and equipment | 5.7 | 5.7 | ||||||
Other long-term assets | 0.1 | 0.1 | ||||||
Total assets | $ | 7.8 | $ | 7.6 | ||||
Total liabilities – other current liabilities | $ | 0.4 | $ | 0.2 |
(Millions) | 2013 | 2012 | ||||||
Nonregulated revenues | $ | 1.2 | $ | (0.7 | ) | |||
Nonregulated cost of sales | (0.9 | ) | (0.4 | ) | ||||
Operating and maintenance expense * | 0.4 | (0.5 | ) | |||||
Depreciation and amortization expense | — | (0.2 | ) | |||||
Taxes other than income taxes | (0.3 | ) | (0.8 | ) | ||||
Income (loss) before taxes | 0.4 | (2.6 | ) | |||||
(Provision) benefit for income taxes | (0.2 | ) | 1.0 | |||||
Discontinued operations, net of tax | $ | 0.2 | $ | (1.6 | ) |
(Millions) | 2012 | |||
Nonregulated revenues | $ | 4.1 | ||
Nonregulated cost of sales | (1.3 | ) | ||
Operating and maintenance expense | (1.0 | ) | ||
Depreciation and amortization expense | (0.3 | ) | ||
Taxes other than income taxes | (0.1 | ) | ||
Interest expense | (0.1 | ) | ||
Income before taxes | 1.3 | |||
Provision for income taxes | (0.5 | ) | ||
Discontinued operations, net of tax | $ | 0.8 |
Three Months Ended March 31 | ||||||||
(Millions) | 2013 | 2012 | ||||||
Balance at the beginning of period | $ | 476.6 | $ | 439.4 | ||||
Add: Earnings from equity method investment | 21.7 | 20.8 | ||||||
Add: Capital contributions | 1.7 | 3.4 | ||||||
Less: Dividends received | 17.3 | 16.7 | ||||||
Balance at the end of period | $ | 482.7 | $ | 446.9 |
Three Months Ended March 31 | ||||||||
(Millions) | 2013 | 2012 | ||||||
Income statement data | ||||||||
Revenues | $ | 151.8 | $ | 147.7 | ||||
Operating expenses | 69.8 | 69.6 | ||||||
Other expense | 21.5 | 20.0 | ||||||
Net income | $ | 60.5 | $ | 58.1 |
(Millions) | March 31, 2013 | December 31, 2012 | ||||||
Balance sheet data | ||||||||
Current assets | $ | 69.3 | $ | 63.1 | ||||
Noncurrent assets | 3,325.3 | 3,274.7 | ||||||
Total assets | $ | 3,394.6 | $ | 3,337.8 | ||||
Current liabilities | $ | 261.5 | $ | 251.5 | ||||
Long-term debt | 1,550.0 | 1,550.0 | ||||||
Other noncurrent liabilities | 124.8 | 95.8 | ||||||
Shareholders’ equity | 1,458.3 | 1,440.5 | ||||||
Total liabilities and shareholders’ equity | $ | 3,394.6 | $ | 3,337.8 |
March 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
(Millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortized intangible assets | ||||||||||||||||||||||||
Customer-related (1) | $ | 22.4 | $ | (15.0 | ) | $ | 7.4 | $ | 22.4 | $ | (14.7 | ) | $ | 7.7 | ||||||||||
Contractual service agreements (2) | 15.6 | — | 15.6 | — | — | — | ||||||||||||||||||
Patents/intellectual property (3) | 7.2 | (0.3 | ) | 6.9 | 7.2 | (0.3 | ) | 6.9 | ||||||||||||||||
Compressed natural gas fueling contract assets (4) | 5.6 | (1.7 | ) | 3.9 | 5.6 | (1.3 | ) | 4.3 | ||||||||||||||||
Renewable energy credits (5) | 5.1 | — | 5.1 | 3.1 | — | 3.1 | ||||||||||||||||||
Nonregulated easements (6) | 3.8 | (1.0 | ) | 2.8 | 3.8 | (0.9 | ) | 2.9 | ||||||||||||||||
Customer-owned equipment modifications (7) | 4.0 | (0.6 | ) | 3.4 | 4.0 | (0.5 | ) | 3.5 | ||||||||||||||||
Other | 0.5 | (0.3 | ) | 0.2 | 0.5 | (0.2 | ) | 0.3 | ||||||||||||||||
Total | $ | 64.2 | $ | (18.9 | ) | $ | 45.3 | $ | 46.6 | $ | (17.9 | ) | $ | 28.7 | ||||||||||
Unamortized intangible assets | ||||||||||||||||||||||||
MGU trade name | $ | 5.2 | $ | — | $ | 5.2 | $ | 5.2 | $ | — | $ | 5.2 | ||||||||||||
Trillium trade name | 3.5 | — | 3.5 | 3.5 | — | 3.5 | ||||||||||||||||||
Pinnacle trade name | 1.5 | — | 1.5 | 1.5 | — | 1.5 | ||||||||||||||||||
Total intangible assets | $ | 74.4 | $ | (18.9 | ) | $ | 55.5 | $ | 56.8 | $ | (17.9 | ) | $ | 38.9 |
(1) | Represents customer relationship assets associated with PELLC’s former nonregulated retail natural gas and electric operations and Trillium USA (Trillium) and Pinnacle CNG Systems (Pinnacle) compressed natural gas fueling operations. The remaining weighted-average amortization period for customer-related intangible assets at March 31, 2013, was approximately 9 years. |
(2) | Represents contractual service agreements related to maintenance on the combustion turbine generators at the Fox Energy Center. The remaining amortization period for these intangible assets at March 31, 2013, was approximately 7 years. |
(3) | Represents the fair value of patents/intellectual property at Pinnacle related to a system for more efficiently compressing natural gas to allow for faster fueling. The remaining amortization period at March 31, 2013, was approximately 9 years. |
(4) | Represents the fair value of Trillium and Pinnacle contracts acquired in September 2011. The remaining amortization period at March 31, 2013, was approximately 8 years. |
(5) | Used at Integrys Energy Services to comply with state Renewable Portfolio Standards and to support customer commitments. |
(6) | Relates to easements supporting a pipeline at Integrys Energy Services. The easements are amortized on a straight-line basis, with a remaining amortization period at March 31, 2013, of approximately 11 years. |
(7) | Relates to modifications made by Integrys Energy Services and Trillium to customer-owned equipment. These intangible assets are amortized on a straight-line basis, with a remaining weighted-average amortization period at March 31, 2013, of approximately 11 years. |
For the Year Ending December 31 | ||||||||||||||||||||
(Millions) | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||
Amortization to be recorded in nonregulated cost of sales | $ | 6.7 | $ | 1.2 | $ | 1.1 | $ | 0.9 | $ | 0.9 | ||||||||||
Amortization to be recorded in depreciation and amortization expense | 3.8 | 4.1 | 4.1 | 3.9 | 3.8 |
(Millions, except percentages) | March 31, 2013 | December 31, 2012 | ||||||
Commercial paper | $ | 556.4 | $ | 482.4 | ||||
Average discount rate on commercial paper | 0.33% | 0.40% | ||||||
Loan under term credit facility * | $ | 200.0 | — | |||||
Average interest rate on loan under term credit facility | 0.80% | — |
* | Relates to the purchase of Fox Energy Company LLC. See Note 4, "Acquisitions," for more information regarding this purchase. |
(Millions) | 2013 | 2012 | ||||||
Average amount of commercial paper | $ | 400.7 | $ | 357.5 | ||||
Average amount of loan under term credit facility | 8.9 | — |
(Millions) | Maturity | March 31, 2013 | December 31, 2012 | |||||||
Revolving credit facility (Integrys Energy Group) | 05/17/2014 | $ | 275.0 | $ | 275.0 | |||||
Revolving credit facility (Integrys Energy Group) | 05/17/2016 | 200.0 | 200.0 | |||||||
Revolving credit facility (Integrys Energy Group) | 06/13/2017 | 635.0 | 635.0 | |||||||
Revolving credit facility (WPS) | 05/17/2014 | 135.0 | 135.0 | |||||||
Revolving credit facility (WPS) | 06/13/2017 | 115.0 | 115.0 | |||||||
Revolving credit facility (PGL) | 06/13/2017 | 250.0 | 250.0 | |||||||
Term credit facility (WPS) * | 12/31/2013 | 200.0 | — | |||||||
Total short-term credit capacity | $ | 1,810.0 | $ | 1,610.0 | ||||||
Less: | ||||||||||
Letters of credit issued inside credit facilities | $ | 29.1 | $ | 25.5 | ||||||
Loan outstanding under term credit facility * | 200.0 | — | ||||||||
Commercial paper outstanding | 556.4 | 482.4 | ||||||||
Accrued interest or original discount on outstanding commercial paper | 0.1 | — | ||||||||
Available capacity under existing agreements | $ | 1,024.4 | $ | 1,102.1 |
* | Relates to the purchase of Fox Energy Company LLC. See Note 4, "Acquisitions," for more information regarding this purchase. |
(Millions) | March 31, 2013 | December 31, 2012 | ||||||
WPS (1) | $ | 850.1 | $ | 872.1 | ||||
PGL (2) | 625.0 | 625.0 | ||||||
NSG (3) | 74.5 | 74.5 | ||||||
Integrys Energy Group | 674.8 | 674.8 | ||||||
Total | 2,224.4 | 2,246.4 | ||||||
Unamortized discount on debt | (1.2 | ) | (1.2 | ) | ||||
Total debt | 2,223.2 | 2,245.2 | ||||||
Less current portion | (291.5 | ) | (313.5 | ) | ||||
Total long-term debt | $ | 1,931.7 | $ | 1,931.7 |
(1) | In February 2013, WPS’s $22.0 million of 3.95% Senior Notes matured, and the outstanding principal balance was repaid. |
(2) | In April 2013, PGL bought back its $50.0 million of 5.00% Series KK First and Refunding Mortgage Bonds that were due in February 2033. |
(3) | On May 1, 2013, NSG issued $54.0 million of 3.96% Series Q First Mortgage Bonds. These bonds are due in May 2043. |
Three Months Ended March 31 | ||||||
2013 | 2012 | |||||
Effective Tax Rate | 37.6 | % | 32.4 | % |
Payments Due By Period | ||||||||||||||||||||||||||||||
(Millions) | Date Contracts Extend Through | Total Amounts Committed | 2013 | 2014 | 2015 | 2016 | 2017 | Later Years | ||||||||||||||||||||||
Natural gas utility supply and transportation | 2028 | $ | 823.2 | $ | 124.9 | $ | 156.3 | $ | 137.9 | $ | 125.7 | $ | 86.9 | $ | 191.5 | |||||||||||||||
Electric utility | ||||||||||||||||||||||||||||||
Purchased power | 2029 | 852.6 | 121.3 | 37.7 | 33.0 | 29.4 | 28.4 | 602.8 | ||||||||||||||||||||||
Coal supply and transportation | 2017 | 122.7 | 44.4 | 41.2 | 30.4 | 6.2 | 0.5 | — | ||||||||||||||||||||||
Nonregulated electricity and natural gas supply | 2020 | 830.6 | 479.8 | 305.9 | 34.3 | 4.6 | 1.3 | 4.7 | ||||||||||||||||||||||
Total | $ | 2,629.1 | $ | 770.4 | $ | 541.1 | $ | 235.6 | $ | 165.9 | $ | 117.1 | $ | 799.0 |
• | the installation of emission control technology, including ReACT™ or an approved alternative, on Weston 3, |
• | changed operating conditions (including refueling, repowering, and/or retirement of units), |
• | limitations on plant emissions, |
• | beneficial environmental projects totaling $6.0 million (various options, including capital projects, are available), and |
• | a civil penalty of $1.2 million. |
• | the installation of emission control technology, including the installation of scrubbers at the Columbia plant, |
• | changed operating conditions (including refueling, repowering, and/or retirement of units), |
• | limitations on plant emissions, |
• | beneficial environmental projects, with WPS's portion totaling $1.3 million (various options, including capital projects, are available), and |
• | WPS's portion of a civil penalty and legal fees totaling $0.4 million. |
Total Amounts Committed at March 31, 2013 | Expiration | |||||||||||||||
(Millions) | Less Than 1 Year | 1 to 3 Years | Over 3 Years | |||||||||||||
Guarantees supporting commodity transactions of subsidiaries (1) | $ | 597.1 | $ | 368.8 | $ | 31.3 | $ | 197.0 | ||||||||
Standby letters of credit (2) | 34.2 | 34.1 | 0.1 | — | ||||||||||||
Surety bonds (3) | 14.4 | 14.4 | — | — | ||||||||||||
Other guarantees (4) | 22.3 | — | — | 22.3 | ||||||||||||
Total guarantees | $ | 668.0 | $ | 417.3 | $ | 31.4 | $ | 219.3 |
(1) | Consists of parental guarantees of $436.3 million to support the business operations of Integrys Energy Services; $108.5 million and $45.3 million, respectively, related to natural gas supply at MERC and MGU; and $5.0 million at IBS, and $2.0 million at UPPCO to support business operations. These guarantees are not reflected on our balance sheets. |
(2) | At our request or the request of our subsidiaries, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. This amount consists of $32.5 million issued to support Integrys Energy Services’ operations and $1.7 million issued to support MERC, MGU, NSG, PGL, Pinnacle CNG Systems, UPPCO, and WPS. These amounts are not reflected on our balance sheets. |
(3) | Primarily for workers compensation self-insurance programs and obtaining various licenses, permits, and rights-of-way. These guarantees are not reflected on our balance sheets. |
(4) | Consists of (a) $10.0 million related to the sale agreement for Integrys Energy Services’ Texas retail marketing business, which included a number of customary representations, warranties, and indemnification provisions. An insignificant liability was recorded related to the possible imposition of additional miscellaneous gross receipts tax in the event of a change in law or interpretation of the tax law; (b) $5.0 million related to an environmental indemnification provided by Integrys Energy Services as part of the sale of the Stoneman generation facility, under which we expect that the likelihood of required performance is remote. This amount is not reflected on our balance sheets; and (c) $7.3 million related to other indemnifications primarily for workers compensation coverage. These amounts are not reflected on our balance sheets. |
Pension Benefits | Other Postretirement Benefits | |||||||||||||||
Three Months Ended, March 31, | Three Months Ended, March 31, | |||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $ | 7.5 | $ | 12.4 | $ | 6.5 | $ | 5.5 | ||||||||
Interest cost | 17.8 | 19.8 | 6.3 | 7.2 | ||||||||||||
Expected return on plan assets | (26.6 | ) | (27.1 | ) | (7.7 | ) | (7.0 | ) | ||||||||
Amortization of transition obligation | — | — | — | 0.1 | ||||||||||||
Amortization of prior service cost (credit) | 1.0 | 1.2 | (0.6 | ) | (0.9 | ) | ||||||||||
Amortization of net actuarial loss | 13.5 | 8.3 | 2.0 | 1.6 | ||||||||||||
Net periodic benefit cost | $ | 13.2 | $ | 14.6 | $ | 6.5 | $ | 6.5 |
(Millions) | 2013 | 2012 | ||||||
Stock options | $ | 0.4 | $ | 0.4 | ||||
Performance stock rights | 2.2 | 1.2 | ||||||
Restricted share units | 2.8 | 2.1 | ||||||
Nonemployee director deferred stock units | 0.3 | 1.0 | ||||||
Total stock-based compensation expense | $ | 5.7 | $ | 4.7 | ||||
Deferred income tax benefit | $ | 2.3 | $ | 1.9 |
February 2013 Grant | ||
Weighted-average fair value per option | $6.03 | |
Expected term | 5 years | |
Risk-free interest rate | 0.18% – 2.11% | |
Expected dividend yield | 5.33% | |
Expected volatility | 24% |
Stock Options | Weighted-Average Exercise Price Per Share | Weighted-Average Remaining Contractual Life (in Years) | Aggregate Intrinsic Value (Millions) | |||||||||||
Outstanding at December 31, 2012 | 2,046,355 | $ | 49.25 | |||||||||||
Granted | 319,234 | 56.00 | ||||||||||||
Exercised | (145,955 | ) | 44.03 | |||||||||||
Outstanding at March 31, 2013 | 2,219,634 | $ | 50.56 | 6.01 | $ | 16.9 | ||||||||
Exercisable at March 31, 2013 | 1,463,836 | $ | 49.78 | 4.56 | $ | 12.4 |
2013 | ||
Risk-free interest rate | 0.17% – 1.27% | |
Expected dividend yield | 5.18% – 5.34% | |
Expected volatility | 19% – 36% |
Performance Stock Rights | Weighted-Average Fair Value * | ||||||
Outstanding at December 31, 2012 | 108,314 | $ | 65.38 | ||||
Granted | 22,636 | 48.50 | |||||
Distributed | (94,758 | ) | 72.36 | ||||
Adjustment for final payout | 21,867 | 72.36 | |||||
Outstanding at March 31, 2013 | 58,059 | $ | 50.04 |
* | Reflects the weighted-average fair value used to measure equity awards. Equity awards are measured using the grant date fair value or the fair value on the modification date. |
Performance Stock Rights | |||
Outstanding at December 31, 2012 | 189,093 | ||
Granted | 90,496 | ||
Distributed | (61,753 | ) | |
Adjustment for final payout | 14,255 | ||
Outstanding at March 31, 2013 | 232,091 |
Restricted Share Unit Awards | Weighted-Average Grant Date Fair Value | ||||||
Outstanding at December 31, 2012 | 505,690 | $ | 48.38 | ||||
Granted | 189,094 | 56.00 | |||||
Dividend equivalents | 5,818 | 52.20 | |||||
Vested and released | (204,072 | ) | 46.28 | ||||
Forfeited | (1,507 | ) | 48.47 | ||||
Outstanding at March 31, 2013 | 495,023 | $ | 52.20 |
Common stock at December 31, 2012 | 78,287,906 | ||
Shares issued | |||
Stock Investment Plan | 114,365 | ||
Stock-based compensation | 317,677 | ||
Rabbi trust shares | 90,000 | ||
Common stock at March 31, 2013 | 78,809,948 |
Period | Method of meeting requirements | |
Beginning 02/05/2013 | Issuing new shares * | |
01/01/2012 – 02/04/2013 | Purchased shares on the open market |
March 31, 2013 | December 31, 2012 | |||||||||||||
Shares | Average Cost * | Shares | Average Cost * | |||||||||||
Common stock issued | 78,809,948 | 78,287,906 | ||||||||||||
Less: | ||||||||||||||
Deferred compensation rabbi trust | 456,852 | $ | 48.23 | 385,439 | $ | 46.03 | ||||||||
Total common shares outstanding | 78,353,096 | 77,902,467 |
Three Months Ended March 31 | ||||||||
(Millions, except per share amounts) | 2013 | 2012 | ||||||
Numerator: | ||||||||
Net income from continuing operations | $ | 182.2 | $ | 98.8 | ||||
Discontinued operations, net of tax | 6.1 | 0.9 | ||||||
Preferred stock dividends of subsidiary | (0.8 | ) | (0.8 | ) | ||||
Net income attributed to common shareholders | $ | 187.5 | $ | 98.9 | ||||
Denominator: | ||||||||
Average shares of common stock — basic | 78.7 | 78.6 | ||||||
Effect of dilutive securities | ||||||||
Stock-based compensation | 0.4 | 0.4 | ||||||
Deferred compensation | 0.2 | 0.2 | ||||||
Average shares of common stock — diluted | 79.3 | 79.2 | ||||||
Earnings per common share | ||||||||
Basic | $ | 2.38 | $ | 1.26 | ||||
Diluted | 2.37 | 1.25 |
Subsidiary | Dividends To Parent | Return Of Capital To Parent | Equity Contributions From Parent | |||||||||
ITF (1) | $ | — | $ | — | $ | 11.7 | ||||||
MERC | — | 21.0 | — | |||||||||
WPS | 27.1 | — | 200.0 | |||||||||
WPS Investments, LLC (2) | 17.3 | — | 1.7 | |||||||||
Total | $ | 44.4 | $ | 21.0 | $ | 213.4 |
(1) | ITF is a direct wholly owned subsidiary of PELLC. As a result, it makes distributions to PELLC, and receives equity contributions from PELLC. Subject to applicable law, PELLC does not have any dividend restrictions or limitations on distributions to us. |
(2) | WPS Investments, LLC is a consolidated subsidiary that is jointly owned by us, WPS, and UPPCO. At March 31, 2013, we had an 85.86% ownership interest, while WPS and UPPCO had an 11.66% and 2.48% ownership interest, respectively. Distributions from WPS Investments, LLC are made to the owners based on their respective ownership percentages. During 2013, all equity contributions to WPS Investments, LLC were made solely by us. |
Cash Flow Hedges | Defined Benefit Pension Plans | Accumulated Other Comprehensive Income (Loss) | ||||||||||
Beginning balance at December 31, 2012 | $ | (5.2 | ) | $ | (35.7 | ) | $ | (40.9 | ) | |||
Other comprehensive income before reclassifications | 0.1 | — | 0.1 | |||||||||
Amounts reclassified out of accumulated other comprehensive loss | 0.9 | 0.6 | 1.5 | |||||||||
Net current period other comprehensive income | 1.0 | 0.6 | 1.6 | |||||||||
Ending balance at March 31, 2013 | $ | (4.2 | ) | $ | (35.1 | ) | $ | (39.3 | ) |
Amount Reclassified | Affected Line Item in the Statements of Income | |||||
Losses on cash flow hedges | ||||||
Utility commodity derivative contracts | $ | 0.2 | Operating and maintenance expense(1) | |||
Non-regulated commodity derivative contracts | 1.1 | Nonregulated revenues | ||||
Interest rate hedges | 0.2 | Interest expense | ||||
1.5 | Total before tax | |||||
0.6 | Tax expense | |||||
0.9 | Net of tax | |||||
Defined benefit pension plans | ||||||
Amortization of prior service costs | (0.1 | ) | (2) | |||
Amortization of actuarial losses | 1.1 | (2) | ||||
1.0 | Total before tax | |||||
0.4 | Tax expense | |||||
0.6 | Net of tax | |||||
Total reclassifications | $ | 1.5 |
(1) | Changes in the price of natural gas used to support utility operations is not a component of the natural gas costs recovered from customers on a one-for-one basis. |
(2) | These items are included in the computation of net periodic benefit cost. See Note 14, "Employee Benefit Plans," for additional information. |
March 31, 2013 | ||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Risk Management Assets | ||||||||||||||||
Utility Segments | ||||||||||||||||
Natural gas contracts | $ | 1.2 | $ | 10.5 | $ | — | $ | 11.7 | ||||||||
Financial transmission rights (FTRs) | — | — | 1.0 | 1.0 | ||||||||||||
Petroleum product contracts | 0.1 | — | — | 0.1 | ||||||||||||
Coal contracts | — | — | 0.1 | 0.1 | ||||||||||||
Nonregulated Segments | ||||||||||||||||
Natural gas contracts | 10.2 | 21.2 | 2.9 | 34.3 | ||||||||||||
Electric contracts | 64.0 | 107.9 | 13.7 | 185.6 | ||||||||||||
Total Risk Management Assets | $ | 75.5 | $ | 139.6 | $ | 17.7 | $ | 232.8 | ||||||||
Investment in exchange-traded funds | $ | 12.4 | $ | — | $ | — | $ | 12.4 | ||||||||
Liabilities | ||||||||||||||||
Risk Management Liabilities | ||||||||||||||||
Utility Segments | ||||||||||||||||
Natural gas contracts | $ | — | $ | 3.8 | $ | — | $ | 3.8 | ||||||||
FTRs | — | — | 0.1 | 0.1 | ||||||||||||
Coal contracts | — | 0.1 | 4.7 | 4.8 | ||||||||||||
Nonregulated Segments | ||||||||||||||||
Natural gas contracts | 9.0 | 14.8 | 1.2 | 25.0 | ||||||||||||
Electric contracts | 78.6 | 70.3 | 7.6 | 156.5 | ||||||||||||
Total Risk Management Liabilities | $ | 87.6 | $ | 89.0 | $ | 13.6 | $ | 190.2 |
December 31, 2012 | ||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Risk Management Assets | ||||||||||||||||
Utility Segments | ||||||||||||||||
Natural gas contracts | $ | 0.3 | $ | 3.1 | $ | — | $ | 3.4 | ||||||||
FTRs | — | — | 2.1 | 2.1 | ||||||||||||
Petroleum product contracts | 0.2 | — | — | 0.2 | ||||||||||||
Coal contracts | — | — | 2.5 | 2.5 | ||||||||||||
Nonregulated Segments | ||||||||||||||||
Natural gas contracts | 21.4 | 36.4 | 5.4 | 63.2 | ||||||||||||
Electric contracts | 48.4 | 61.3 | 9.6 | 119.3 | ||||||||||||
Total Risk Management Assets | $ | 70.3 | $ | 100.8 | $ | 19.6 | $ | 190.7 | ||||||||
Investment in exchange-traded funds | $ | 11.8 | $ | — | $ | — | $ | 11.8 | ||||||||
Liabilities | ||||||||||||||||
Risk Management Liabilities | ||||||||||||||||
Utility Segments | ||||||||||||||||
Natural gas contracts | $ | 1.1 | $ | 14.1 | $ | — | $ | 15.2 | ||||||||
FTRs | — | — | 0.1 | 0.1 | ||||||||||||
Coal contracts | — | — | 9.0 | 9.0 | ||||||||||||
Nonregulated Segments | ||||||||||||||||
Natural gas contracts | 17.7 | 36.9 | 1.5 | 56.1 | ||||||||||||
Electric contracts | 54.9 | 91.1 | 13.9 | 159.9 | ||||||||||||
Total Risk Management Liabilities | $ | 73.7 | $ | 142.1 | $ | 24.5 | $ | 240.3 |
Nonregulated Segments — Natural Gas Contracts | ||||||||||||||||||||||||
Three Months Ended March 31, 2013 | Three Months Ended March 31, 2012 | |||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Transfers into Level 1 from | N/A | $ | — | $ | — | N/A | $ | — | $ | — | ||||||||||||||
Transfers into Level 2 from | $ | — | N/A | — | $ | — | N/A | 1.3 | ||||||||||||||||
Transfers into Level 3 from | — | 0.2 | N/A | — | 2.4 | N/A |
Nonregulated Segments — Electric Contracts | ||||||||||||||||||||||||
Three Months Ended March 31, 2013 | Three Months Ended March 31, 2012 | |||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Transfers into Level 1 from | N/A | $ | — | $ | — | N/A | $ | — | $ | — | ||||||||||||||
Transfers into Level 2 from | $ | — | N/A | 5.5 | $ | — | N/A | (0.1 | ) | |||||||||||||||
Transfers into Level 3 from | — | — | N/A | — | (5.0 | ) | N/A |
Fair Value (Millions) | |||||||||||||||
Assets | Liabilities | Valuation Technique | Unobservable Input | Average or Range | |||||||||||
Utility Segments | |||||||||||||||
FTRs | $ | 1.0 | $ | 0.1 | Market-based | Forward market prices ($/megawatt-month) (1) | 203.72 | ||||||||
Coal contracts | 0.1 | 4.7 | Market-based | Forward market prices ($/ton) (2) | 11.64 — 13.90 | ||||||||||
Nonregulated Segments | |||||||||||||||
Natural gas contracts | 2.9 | 1.2 | Market-based | Forward market prices ($/dekatherm) (3) | (0.08) — 1.99 | ||||||||||
Probability of default | 11.6% — 51.0% | ||||||||||||||
Electric contracts | 13.7 | 7.6 | Market-based | Forward market prices ($/megawatt-hours) (3) | (9.55) — 44.03 | ||||||||||
Option volatilities (4) | 19.0% — 80.0% |
(1) | Represents forward market prices developed using historical cleared pricing data from MISO used in the valuation of FTRs. |
(2) | Represents third-party forward market pricing used in the valuation of our coal contracts. |
(3) | Represents unobservable basis spreads developed using historical settled prices that are applied to observable market prices at various natural gas and electric locations, as well as unobservable adjustments made to extend observable market prices beyond the quoted period through the end of the transaction term. |
(4) | Represents the range of volatilities used in the valuation of options. |
Three Months Ended March 31, 2013 | Nonregulated Segments | Utility Segments | ||||||||||||||||||
(Millions) | Natural Gas | Electric | FTRs | Coal Contracts | Total | |||||||||||||||
Balance at the beginning of the period | $ | 3.9 | $ | (4.3 | ) | $ | 2.0 | $ | (6.5 | ) | $ | (4.9 | ) | |||||||
Net realized and unrealized (losses) gains included in earnings | (1.5 | ) | 15.1 | 0.3 | — | 13.9 | ||||||||||||||
Net unrealized (losses) gains recorded as regulatory assets or liabilities | — | — | (0.2 | ) | 3.1 | 2.9 | ||||||||||||||
Purchases | — | 0.7 | — | — | 0.7 | |||||||||||||||
Settlements | (0.9 | ) | 0.1 | (1.2 | ) | (1.2 | ) | (3.2 | ) | |||||||||||
Net transfers into Level 3 | 0.2 | — | — | — | 0.2 | |||||||||||||||
Net transfers out of Level 3 | — | (5.5 | ) | — | — | (5.5 | ) | |||||||||||||
Balance at the end of the period | $ | 1.7 | $ | 6.1 | $ | 0.9 | $ | (4.6 | ) | $ | 4.1 | |||||||||
Net unrealized (losses) gains included in earnings related to instruments still held at the end of the period | $ | (1.5 | ) | $ | 15.1 | $ | — | $ | — | $ | 13.6 |
Three Months Ended March 31, 2012 | Nonregulated Segments | Utility Segments | ||||||||||||||||||
(Millions) | Natural Gas | Electric | FTRs | Coal Contract | Total | |||||||||||||||
Balance at the beginning of the period | $ | 8.3 | $ | (11.5 | ) | $ | 2.2 | $ | (6.9 | ) | $ | (7.9 | ) | |||||||
Net realized and unrealized gains (losses) included in earnings | 4.1 | (7.7 | ) | 0.5 | — | (3.1 | ) | |||||||||||||
Net unrealized gains (losses) recorded as regulatory assets or liabilities | — | — | 0.1 | (5.8 | ) | (5.7 | ) | |||||||||||||
Purchases | — | 1.1 | — | — | 1.1 | |||||||||||||||
Sales | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||
Settlements | (2.6 | ) | 1.1 | (1.8 | ) | (0.7 | ) | (4.0 | ) | |||||||||||
Net transfers into Level 3 | 2.4 | (5.0 | ) | — | — | (2.6 | ) | |||||||||||||
Net transfers out of Level 3 | (1.3 | ) | 0.1 | — | — | (1.2 | ) | |||||||||||||
Balance at the end of the period | $ | 10.9 | $ | (21.9 | ) | $ | 0.9 | $ | (13.4 | ) | $ | (23.5 | ) | |||||||
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period | $ | 4.1 | $ | (7.7 | ) | $ | — | $ | — | $ | (3.6 | ) |
March 31, 2013 | December 31, 2012 | |||||||||||||||
(Millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-term debt | $ | 2,223.2 | $ | 2,376.2 | $ | 2,245.2 | $ | 2,425.8 | ||||||||
Preferred stock of subsidiary | 51.1 | 61.7 | 51.1 | 52.7 |
• | The natural gas utility segment includes the regulated natural gas utility operations of MERC, MGU, NSG, PGL, and WPS. |
• | The electric utility segment includes the regulated electric utility operations of UPPCO and WPS. |
• | The electric transmission investment segment includes our approximate 34% ownership interest in ATC. ATC is a federally regulated electric transmission company. |
• | Integrys Energy Services is a diversified nonregulated retail energy supply and services company that primarily sells electricity and natural gas in deregulated markets. In addition, Integrys Energy Services invests in energy assets with renewable attributes. |
• | The holding company and other segment includes the operations of the Integrys Energy Group holding company, ITF, and the PELLC holding company, along with any nonutility activities at IBS, MERC, MGU, NSG, PGL, UPPCO, and WPS. |
Regulated Operations | Nonutility and Nonregulated Operations | |||||||||||||||||||||||||||||||
(Millions) | Natural Gas Utility | Electric Utility | Electric Transmission Investment | Total Regulated Operations | Integrys Energy Services | Holding Company and Other | Reconciling Eliminations | Integrys Energy Group Consolidated | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||||||||||
External revenues | $ | 792.0 | $ | 331.8 | $ | — | $ | 1,123.8 | $ | 545.4 | $ | 9.0 | $ | — | $ | 1,678.2 | ||||||||||||||||
Intersegment revenues | 1.9 | — | — | 1.9 | 0.3 | 0.4 | (2.6 | ) | — | |||||||||||||||||||||||
Depreciation and amortization expense | 32.2 | 21.5 | — | 53.7 | 2.7 | 4.6 | (0.1 | ) | 60.9 | |||||||||||||||||||||||
Earnings from equity method investments | — | — | 21.7 | 21.7 | 0.2 | 0.4 | — | 22.3 | ||||||||||||||||||||||||
Miscellaneous income | 0.2 | 1.6 | — | 1.8 | 0.4 | 7.2 | (3.7 | ) | 5.7 | |||||||||||||||||||||||
Interest expense | 12.7 | 9.1 | — | 21.8 | 0.5 | 10.7 | (3.7 | ) | 29.3 | |||||||||||||||||||||||
Provision (benefit) for income taxes | 63.3 | 16.1 | 8.3 | 87.7 | 27.3 | (5.4 | ) | — | 109.6 | |||||||||||||||||||||||
Net income (loss) from continuing operations | 89.8 | 29.3 | 13.4 | 132.5 | 51.3 | (1.6 | ) | — | 182.2 | |||||||||||||||||||||||
Discontinued operations | — | — | — | — | 0.1 | 6.0 | — | 6.1 | ||||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.1 | ) | (0.7 | ) | — | (0.8 | ) | — | — | — | (0.8 | ) | ||||||||||||||||||||
Net income attributed to common shareholders | 89.7 | 28.6 | 13.4 | 131.7 | 51.4 | 4.4 | — | 187.5 |
Regulated Operations | Nonutility and Nonregulated Operations | |||||||||||||||||||||||||||||||
(Millions) | Natural Gas Utility | Electric Utility | Electric Transmission Investment | Total Regulated Operations | Integrys Energy Services | Holding Company and Other | Reconciling Eliminations | Integrys Energy Group Consolidated | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2012 | ||||||||||||||||||||||||||||||||
External revenues | $ | 664.0 | $ | 307.0 | $ | — | $ | 971.0 | $ | 269.4 | $ | 7.5 | $ | — | $ | 1,247.9 | ||||||||||||||||
Intersegment revenues | 1.7 | — | — | 1.7 | 0.2 | 0.7 | (2.6 | ) | — | |||||||||||||||||||||||
Depreciation and amortization expense | 32.4 | 22.0 | — | 54.4 | 2.3 | 5.5 | (0.1 | ) | 62.1 | |||||||||||||||||||||||
Earnings from equity method investments | — | — | 20.8 | 20.8 | 0.1 | 0.2 | — | 21.1 | ||||||||||||||||||||||||
Miscellaneous income | 0.2 | 0.1 | — | 0.3 | 0.6 | 5.7 | (4.2 | ) | 2.4 | |||||||||||||||||||||||
Interest expense | 12.0 | 9.2 | — | 21.2 | 0.5 | 12.9 | (4.2 | ) | 30.4 | |||||||||||||||||||||||
Provision (benefit) for income taxes | 51.5 | 10.2 | 7.5 | 69.2 | (12.3 | ) | (9.5 | ) | — | 47.4 | ||||||||||||||||||||||
Net income (loss) from continuing operations | 78.7 | 25.0 | 13.3 | 117.0 | (19.1 | ) | 0.9 | — | 98.8 | |||||||||||||||||||||||
Discontinued operations | — | — | — | — | (1.0 | ) | 1.9 | — | 0.9 | |||||||||||||||||||||||
Preferred stock dividends of subsidiary | (0.1 | ) | (0.7 | ) | — | (0.8 | ) | — | — | — | (0.8 | ) | ||||||||||||||||||||
Net income (loss) attributed to common shareholders | 78.6 | 24.3 | 13.3 | 116.2 | (20.1 | ) | 2.8 | — | 98.9 |
Three Months Ended March 31 | Change in 2013 Over 2012 | ||||||||||
(Millions, except per share amounts) | 2013 | 2012 | |||||||||
Natural gas utility operations | $ | 89.7 | $ | 78.6 | 14.1 | % | |||||
Electric utility operations | 28.6 | 24.3 | 17.7 | % | |||||||
Electric transmission investment | 13.4 | 13.3 | 0.8 | % | |||||||
Integrys Energy Services’ operations | 51.4 | (20.1 | ) | N/A | |||||||
Holding company and other operations | 4.4 | 2.8 | 57.1 | % | |||||||
Net income attributed to common shareholders | $ | 187.5 | $ | 98.9 | 89.6 | % | |||||
Basic earnings per share | $ | 2.38 | $ | 1.26 | 88.9 | % | |||||
Diluted earnings per share | $ | 2.37 | $ | 1.25 | 89.6 | % | |||||
Average shares of common stock | |||||||||||
Basic | 78.7 | 78.6 | 0.1 | % | |||||||
Diluted | 79.3 | 79.2 | 0.1 | % |
• | A $66.8 million after-tax non-cash increase in Integrys Energy Services’ margins related to derivative and inventory fair value adjustments. |
• | A $9.9 million after-tax increase in natural gas utility margins due to the reversal of reserves recorded in 2012 against decoupling accruals at PGL and NSG. In March 2013, the Illinois Appellate Court affirmed the ICC's authority to approve the permanent decoupling mechanisms. See Note 21, "Regulatory Environment," for more information. |
• | A $6.4 million after-tax increase in natural gas utility margins due to a net increase in sales volumes driven by a return to more normal weather during 2013 compared with unusually warm weather in 2012, net of decoupling. |
• | A $5.2 million increase in income from discontinued operations. See Note 5, "Discontinued Operations," for more information. |
Three Months Ended March 31 | Change in 2013 Over 2012 | ||||||||||
(Millions, except heating degree days) | 2013 | 2012 | |||||||||
Revenues | $ | 793.9 | $ | 665.7 | 19.3 | % | |||||
Purchased natural gas costs | 424.1 | 346.5 | 22.4 | % | |||||||
Margins | 369.8 | 319.2 | 15.9 | % | |||||||
Operating and maintenance expense | 162.1 | 135.3 | 19.8 | % | |||||||
Depreciation and amortization expense | 32.2 | 32.4 | (0.6 | )% | |||||||
Taxes other than income taxes | 9.9 | 9.5 | 4.2 | % | |||||||
Operating income | 165.6 | 142.0 | 16.6 | % | |||||||
Miscellaneous income | 0.2 | 0.2 | — | % | |||||||
Interest expense | (12.7 | ) | (12.0 | ) | 5.8 | % | |||||
Other expense | (12.5 | ) | (11.8 | ) | 5.9 | % | |||||
Income before taxes | $ | 153.1 | $ | 130.2 | 17.6 | % | |||||
Retail throughput in therms | |||||||||||
Residential | 775.9 | 606.4 | 28.0 | % | |||||||
Commercial and industrial | 236.8 | 183.4 | 29.1 | % | |||||||
Other | 20.0 | 18.7 | 7.0 | % | |||||||
Total retail throughput in therms | 1,032.7 | 808.5 | 27.7 | % | |||||||
Transport throughput in therms | |||||||||||
Residential | 111.3 | 87.1 | 27.8 | % | |||||||
Commercial and industrial | 551.6 | 476.7 | 15.7 | % | |||||||
Total transport throughput in therms | 662.9 | 563.8 | 17.6 | % | |||||||
Total throughput in therms | 1,695.6 | 1,372.3 | 23.6 | % | |||||||
Weather | |||||||||||
Average heating degree days | 3,506 | 2,589 | 35.4 | % |
• | An approximate $28 million net increase in margins, including the impact of decoupling, due to a 23.6% increase in volumes sold in the first quarter of 2013. |
◦ | A return to more normal weather during 2013, compared with unusually warm weather in 2012, drove an approximate $43 million increase in margins. Heating degree days increased 35.4%. |
◦ | Lower sales volumes excluding the impact of weather resulted in an approximate $1 million decrease in margins. Sales volumes were slightly lower due to lower use per customer. |
◦ | Decoupling impacts at certain natural gas utilities partially offset the net positive impact of volumes discussed above and decreased margins approximately $14 million. Decoupling does not cover all jurisdictions or customer classes. In addition, this decrease is net of the $17 million positive impact of the 2013 reversal of reserves that had been recorded in 2012 against decoupling accruals at PGL and NSG. See Note 21, "Regulatory Environment," for more information. |
• | An approximate $22 million net increase in margins related to certain riders at PGL and NSG. This increase was offset by an equal increase in operating expenses, resulting in no impact on earnings. |
◦ | PGL and NSG recovered approximately $13 million more for environmental cleanup costs at their former manufactured gas plant sites related to an increase in remediation activity during 2013. See Note 12, "Commitment and Contingencies," for more information about the manufactured gas plant sites. |
◦ | PGL and NSG billed approximately $9 million more to customers for energy efficiency programs in 2013. |
• | An approximate $1 million net increase in margins due to rate orders. See Note 21, "Regulatory Environment," for more information. |
◦ | The rate increases at PGL and NSG, effective January 21, 2012, and other impacts of rate design, had an approximate $3 million positive impact on margins. |
◦ | A reduction in rates at WPS, effective January 1, 2013, resulted in an approximate $3 million negative impact on margins. |
◦ | MERC had an approximate $1 million increase in margins primarily driven by the impact of a rate order from the MPUC finalized in January 2013. Customer refunds were accrued in the first quarter of 2012 as a result of 2011 interim rates that were in effect. |
• | An approximate $22 million net increase at PGL and NSG driven by higher amortization of regulatory assets related to environmental cleanup costs for manufactured gas plant sites and an increase in regulatory liabilities related to energy efficiency programs. Margins increased by an equal amount, resulting in no impact on earnings. |
• | A $4.6 million increase in employee benefit costs. The increase was partially due to higher pension expense, primarily at PGL, driven by a lower discount rate used in 2013. The lower discount rate did not significantly impact the other natural gas utilities due to an increase in contributions to those plans in prior years, which increased plan assets. Amortization of negative investment returns from prior years also increased pension expense in 2013. |
Three Months Ended March 31 | Change in 2013 Over 2012 | ||||||||||
(Millions, except degree days) | 2013 | 2012 | |||||||||
Revenues | $ | 331.8 | $ | 307.0 | 8.1 | % | |||||
Fuel and purchased power costs | 143.2 | 127.5 | 12.3 | % | |||||||
Margins | 188.6 | 179.5 | 5.1 | % | |||||||
Operating and maintenance expense | 101.4 | 100.3 | 1.1 | % | |||||||
Depreciation and amortization expense | 21.5 | 22.0 | (2.3 | )% | |||||||
Taxes other than income taxes | 12.8 | 12.9 | (0.8 | )% | |||||||
Operating income | 52.9 | 44.3 | 19.4 | % | |||||||
Miscellaneous income | 1.6 | 0.1 | 1,500.0 | % | |||||||
Interest expense | (9.1 | ) | (9.2 | ) | (1.1 | )% | |||||
Other expense | (7.5 | ) | (9.1 | ) | (17.6 | )% | |||||
Income before taxes | $ | 45.4 | $ | 35.2 | 29.0 | % | |||||
Sales in kilowatt-hours | |||||||||||
Residential | 823.8 | 775.2 | 6.3 | % | |||||||
Commercial and industrial | 2,072.0 | 2,087.8 | (0.8 | )% | |||||||
Wholesale | 1,046.6 | 1,023.5 | 2.3 | % | |||||||
Other | 10.7 | 10.9 | (1.8 | )% | |||||||
Total sales in kilowatt-hours | 3,953.1 | 3,897.4 | 1.4 | % | |||||||
Weather | |||||||||||
WPS: | |||||||||||
Heating degree days | 3,803 | 2,864 | 32.8 | % | |||||||
Cooling degree days | — | 11 | (100.0 | )% | |||||||
UPPCO: | |||||||||||
Heating degree days | 4,087 | 3,282 | 24.5 | % |
• | An approximate $5 million increase in margins due to a retail electric rate increase at WPS, effective January 1, 2013. For more information on the WPS 2013 rate order, see Note 21, "Regulatory Environment." |
• | An approximate $4 million net increase in margins from residential and commercial and industrial customers due to variances related to sales volumes, including the impact of decoupling. The increase was primarily due to a 6.3% increase in sales volumes to residential customers. The quarter-over-quarter impact of decoupling does not directly correlate with the quarter-over-quarter impact of the change in sales volumes, as WPS's decoupling mechanism was changed in 2013, and UPPCO did not have decoupling in 2012. See Note 21, "Regulatory Environment," for more information. |
• | A $1.5 million increase in margins due to the quarter-over-quarter impact of the write-off of UPPCO’s net regulatory asset related to its 2010 and 2011 decoupling deferrals in the first quarter of 2012. The write-off was reversed in the third quarter of 2012. |
• | Partially offsetting these increases was an approximate $2 million quarter-over-quarter decrease in margins because WPS fuel costs not included in the fuel window were lower than rate case-approved amounts in 2012. |
• | A $2.2 million increase in employee benefit related expenses, and |
• | A $2.0 million increase in electric transmission expense. |
• | The $1.8 million positive impact of the deferral of employee benefit costs that will be recovered in a future rate proceeding as a result of the WPS 2013 rate order. |
• | A $1.2 million decrease in depreciation expense primarily due to a reduction in the depreciable basis of WPS's Crane Creek Wind Project. The reduction is the result of WPS's election to claim a Section 1603 Grant for the project in lieu of production tax credits. |
• | A $1.0 million decrease in maintenance expense, mainly due to fewer storms in WPS's service territories in 2013 compared to 2012. |
Three Months Ended March 31 | Change in 2013 Over 2012 | ||||||||||
(Millions) | 2013 | 2012 | |||||||||
Earnings from equity method investments | $ | 21.7 | $ | 20.8 | 4.3 | % |
Three Months Ended March 31 | Change in 2013 Over 2012 | ||||||||||
(Millions, except natural gas sales volumes) | 2013 | 2012 | |||||||||
Revenues | $ | 545.7 | $ | 269.6 | 102.4 | % | |||||
Cost of sales | 430.7 | 270.1 | 59.5 | % | |||||||
Margins | 115.0 | (0.5 | ) | N/A | |||||||
Margin Detail | |||||||||||
Realized retail electric margins | 23.9 | 16.9 | 41.4 | % | |||||||
Realized wholesale electric margins (1) | — | (0.6 | ) | (100.0 | )% | ||||||
Realized renewable energy asset margins | 3.0 | 2.6 | 15.4 | % | |||||||
Fair value accounting adjustments | 62.7 | (42.7 | ) | N/A | |||||||
Electric and renewable energy asset margins | 89.6 | (23.8 | ) | N/A | |||||||
Realized retail natural gas margins | 18.9 | 23.5 | (19.6 | )% | |||||||
Realized wholesale natural gas margins (1) | 0.2 | (0.6 | ) | N/A | |||||||
Lower-of-cost-or-market inventory adjustments | 4.0 | 1.6 | 150.0 | % | |||||||
Fair value accounting adjustments | 2.3 | (1.2 | ) | N/A | |||||||
Natural gas margins | 25.4 | 23.3 | 9.0 | % | |||||||
Operating and maintenance expense | 32.8 | 27.5 | 19.3 | % | |||||||
Depreciation and amortization expense | 2.7 | 2.3 | 17.4 | % | |||||||
Taxes other than income taxes | 1.0 | 1.3 | (23.1 | )% | |||||||
Operating income (loss) | 78.5 | (31.6 | ) | N/A | |||||||
Earnings from equity method investments | 0.2 | 0.1 | 100.0 | % | |||||||
Miscellaneous income | 0.4 | 0.6 | (33.3 | )% | |||||||
Interest expense | (0.5 | ) | (0.5 | ) | — | % | |||||
Other income | 0.1 | 0.2 | (50.0 | )% | |||||||
Income (loss) before taxes | $ | 78.6 | $ | (31.4 | ) | N/A | |||||
Physically settled volumes | |||||||||||
Retail electric sales volumes in kwh | 4,318.2 | 2,918.9 | 47.9 | % | |||||||
Wholesale assets and distributed solar electric sales volumes in kwh (2) | 18.0 | 22.2 | (18.9 | )% | |||||||
Retail natural gas sales volumes in bcf | 50.7 | 39.6 | 28.0 | % |
(1) | Realized wholesale activity relates to remaining contracts for which offsetting positions were entered into. |
(2) | The volumes related to the remaining wholesale electric contracts are not significant. |
• | A $4.5 million increase in professional fees, primarily related to the expansion of the residential and small commercial customer segment. |
• | A $1.9 million increase in payroll and employee benefit expenses. |
Three Months Ended March 31 | Change in 2013 Over 2012 | ||||||||||
(Millions) | 2013 | 2012 | |||||||||
Operating loss | $ | (3.9 | ) | $ | (1.6 | ) | 143.8 | % | |||
Other expense | (3.1 | ) | (7.0 | ) | (55.7 | )% | |||||
Net loss before taxes | $ | (7.0 | ) | $ | (8.6 | ) | (18.6 | )% |
Three Months Ended March 31 | ||||||
2013 | 2012 | |||||
Effective Tax Rate | 37.6 | % | 32.4 | % |
Three Months Ended March 31 | Change in 2013 Over 2012 | ||||||||||
(Millions) | 2013 | 2012 | |||||||||
Discontinued operations, net of tax | $ | 6.1 | $ | 0.9 | 577.8 | % |
• | A $183.0 million decrease in contributions to pension and other postretirement benefit plans. |
• | The $29.1 million quarter-over-quarter positive impact primarily related to Integrys Energy Services' collateral on deposit with brokers, mainly due to higher forward prices of natural gas and electricity. |
• | WPS paid $50.0 million in 2013 for the early termination of a tolling agreement in connection with the purchase of Fox Energy Company LLC. |
• | A $35.4 million quarter-over-quarter decrease in cash at PGL and NSG due to natural gas cost under-collections from customers in 2013 versus natural gas cost over-collections from customers in 2012. The quarter-over-quarter change was driven by higher natural gas prices in 2013. |
• | Cash received from income taxes decreased $32.2 million primarily due to refunds received in 2012 related to prior year amended tax returns. |
Reportable Segment (millions) | 2013 | 2012 | Change | |||||||||
Natural gas utility | $ | 85.8 | $ | 78.9 | $ | 6.9 | ||||||
Electric utility | 439.9 | 30.8 | 409.1 | |||||||||
Integrys Energy Services | 3.4 | 8.2 | (4.8 | ) | ||||||||
Holding company and other | 9.5 | 5.1 | 4.4 | |||||||||
Integrys Energy Group consolidated | $ | 538.6 | $ | 123.0 | $ | 415.6 |
Period | Method of meeting requirements | |
Beginning 02/05/2013 | Issuing new shares | |
01/01/2012 – 02/04/2013 | Purchased shares on the open market |
Credit Ratings | Standard & Poor's | Moody's | ||
Integrys Energy Group | ||||
Issuer credit rating | A- | N/A | ||
Senior unsecured debt | BBB+ | Baa1 | ||
Commercial paper | A-2 | P-2 | ||
Credit facility | N/A | Baa1 | ||
Junior subordinated notes | BBB | Baa2 | ||
WPS | ||||
Issuer credit rating | A- | A2 | ||
First mortgage bonds | N/A | Aa3 | ||
Senior secured debt | A | Aa3 | ||
Preferred stock | BBB | Baa1 | ||
Commercial paper | A-2 | P-1 | ||
Credit facility | N/A | A2 | ||
PGL | ||||
Issuer credit rating | A- | A3 | ||
Senior secured debt | A | A1 | ||
Commercial paper | A-2 | P-2 | ||
NSG | ||||
Issuer credit rating | A- | A3 | ||
Senior secured debt | A | A1 |
Payments Due By Period | ||||||||||||||||||||
(Millions) | Total Amounts Committed | 2013 | 2014 to 2015 | 2016 to 2017 | 2018 and Later Years | |||||||||||||||
Long-term debt principal and interest payments (1) | $ | 3,379.9 | $ | 369.5 | $ | 403.2 | $ | 632.5 | $ | 1,974.7 | ||||||||||
Operating lease obligations | 91.7 | 6.4 | 11.8 | 12.3 | 61.2 | |||||||||||||||
Energy and transportation purchase obligations (2) | 2,629.1 | 770.4 | 776.7 | 283.0 | 799.0 | |||||||||||||||
Purchase orders (3) | 713.5 | 705.2 | 3.3 | 0.8 | 4.2 | |||||||||||||||
Capital contributions to equity method investment | 5.1 | 5.1 | — | — | — | |||||||||||||||
Pension and other postretirement funding obligations (4) | 538.4 | 37.5 | 170.1 | 60.8 | 270.0 | |||||||||||||||
Uncertain tax positions | 0.3 | 0.3 | — | — | — | |||||||||||||||
Total contractual cash obligations | $ | 7,358.0 | $ | 1,894.4 | $ | 1,365.1 | $ | 989.4 | $ | 3,109.1 |
(1) | Represents bonds and notes issued, as well as loans made to us and our subsidiaries. We record all principal obligations on the balance sheet. For purposes of this table, it is assumed that the current interest rates on variable rate debt will remain in effect until the debt matures. |
(2) | Energy and related commodity supply contracts at Integrys Energy Services included as part of energy and transportation purchase obligations are primarily entered into to meet future obligations to deliver energy and related products to customers; therefore, these costs will be recovered as customer sales contracts settle. The utility subsidiaries expect to recover the costs of their contracts in future customer rates. |
(3) | Includes obligations related to normal business operations and large construction obligations. |
(4) | Obligations for pension and other postretirement benefit plans, other than the Integrys Energy Group Retirement Plan, cannot reasonably be estimated beyond 2018. |
(Millions) | ||||
Natural Gas Utility | ||||
Distribution projects and underground storage facilities | $ | 1,073 | ||
Other projects | 70 | |||
Electric Utility | ||||
Environmental projects * | 419 | |||
Acquisition of Fox Energy Center | 392 | |||
Distribution and energy supply operations projects | 347 | |||
Other projects | 57 | |||
Integrys Energy Services | ||||
Renewable energy and other projects | 145 | |||
Holding Company and Other | ||||
Compressed natural gas fueling stations | 158 | |||
Corporate or shared services software and infrastructure projects | 152 | |||
Repairs and safety measures at nonutility hydroelectric facilities | 3 | |||
Total capital expenditures | $ | 2,816 |
(Millions) | 2013 | 2012 | ||||||
As of March 31 | $ | 0.2 | $ | 0.1 | ||||
Average for 12 months ended March 31 | 0.1 | 0.1 | ||||||
High for 12 months ended March 31 | 0.2 | 0.2 | ||||||
Low for 12 months ended March 31 | 0.1 | 0.1 |
(Millions) | 2013 | 2012 | ||||||
As of March 31 | $ | 0.7 | $ | 0.4 | ||||
Average for 12 months ended March 31 | 0.6 | 0.5 | ||||||
High for 12 months ended March 31 | 0.7 | 0.7 | ||||||
Low for 12 months ended March 31 | 0.4 | 0.4 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||
01/01/13 — 01/31/13 * | 15,005 | $ | 54.16 | — | — | ||||||||
02/01/13 — 02/28/13 * | 6,405 | 55.39 | — | — | |||||||||
03/01/13 — 03/31/13 | — | — | — | — | |||||||||
Total | 21,410 | $ | 54.53 | — | — |
* | Represents shares of common stock purchased in the open market by American Stock Transfer & Trust Company to provide shares of common stock to participants in the Stock Investment Plan and to satisfy obligations under various stock-based employee benefit and compensation plans. |
INTEGRYS ENERGY GROUP, INC. | |
(Registrant) | |
Date: May 1, 2013 | /s/ Linda M. Kallas |
Linda M. Kallas | |
Vice President and Corporate Controller | |
(Duly Authorized Officer and Chief Accounting Officer) |
Exhibit No. | Description | |
31.1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934 for Integrys Energy Group, Inc. | |
31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934 for Integrys Energy Group, Inc. | |
32 | Written Statement of the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 for Integrys Energy Group, Inc. | |
101 | Financial statements from the Quarterly Report on Form 10-Q of Integrys Energy Group, Inc. for the quarter ended March 31, 2013, formatted in eXtensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Notes To Financial Statements, and (vi) document and entity information. |
1. | I have reviewed this Quarterly Report on Form 10-Q of Integrys Energy Group, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 1, 2013 | /s/ Charles A. Schrock |
Charles A. Schrock | ||
Chairman, President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Integrys Energy Group, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 1, 2013 | /s/ James F. Schott |
James F. Schott | ||
Vice President and Chief Financial Officer |
/s/ Charles A. Schrock | |
Charles A. Schrock | |
Chairman, President and Chief Executive Officer | |
/s/ James F. Schott | |
James F. Schott | |
Vice President and Chief Financial Officer |
INCOME TAXES (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||
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Mar. 31, 2013
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INCOME TAXES | |||||||||||||||||||||||||||||
Schedule of effective tax rates |
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CASH AND CASH EQUIVALENTS (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Supplemental disclosure of statements of cash flows | ||
Cash paid for interest | $ 4.8 | $ 8.9 |
Cash received for income taxes | (1.0) | (33.2) |
Decrease in cash received for income taxes | 32.2 | |
Significant noncash transactions | ||
Construction costs funded through accounts payable | 59.8 | 50.2 |
Equity issued for stock-based compensation plans | 18.7 | |
Equity issued for reinvested dividends | 3.0 | |
Risk management asset related to sale of Beaver Falls and Syracuse | $ 6.8 |
DISCONTINUED OPERATIONS (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Discontinued operations | ||
Discontinued operations, net of tax | $ 6.1 | $ 0.9 |
Holding Company and Other
|
||
Discontinued operations | ||
Discontinued operations, net of tax | $ 6.0 | $ 1.9 |
VARIABLE INTEREST ENTITIES (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2013
MW
|
Mar. 31, 2013
WPS
Fox Energy Company, LLC
MW
|
Dec. 31, 2012
AMP Trillium LLC
|
Dec. 31, 2012
AMP Trillium LLC
AMP Americas LLC
|
Dec. 31, 2011
PTI CNG Fuels LLC
|
|
VARIABLE INTEREST ENTITIES | |||||
Obligations to purchase energy under power purchase agreement (in megawatts) | 0 | ||||
Contracted capacity under a power purchase agreement (in megawatts) | 17.5 | 500 | |||
Variable Interest Entity | |||||
Contract termination fee related to tolling arrangement | $ (50.0) | $ 50.0 | |||
Variable interest entity ownership interest acquired (as a percent) | 30.00% | 70.00% | 50.00% | ||
Contracted capacity under a power purchase agreement (in megawatts) | 17.5 | 500 |
FAIR VALUE (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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FAIR VALUE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of assets and liabilities measured on a recurring basis, categorized by level within the fair value hierarchy |
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Schedule of transfers between the levels of the fair value hierarchy |
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Significant internally-developed unobservable inputs used in the valuation of derivatives categorized in Level 3 |
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Schedule of the reconciliation of changes in Level 3 fair value measurements |
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Schedule of carrying value and estimated fair value of financial instruments |
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ACQUISITIONS (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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ACQUISITIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated fair values of the assets acquired and the liabilities assumed |
* Relates to intangible assets recorded for contractual services agreements. See Note 8, "Goodwill and Other Intangible Assets," for more information.
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FAIR VALUE (Details) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Assets | ||
Risk Management Assets | $ 232.8 | $ 190.7 |
Liabilities | ||
Risk Management Liabilities | 190.2 | 240.3 |
Level 1 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 75.5 | 70.3 |
Investment in exchange-traded funds | 12.4 | 11.8 |
Liabilities | ||
Risk Management Liabilities | 87.6 | 73.7 |
Level 2 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 139.6 | 100.8 |
Liabilities | ||
Risk Management Liabilities | 89.0 | 142.1 |
Level 3 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 17.7 | 19.6 |
Liabilities | ||
Risk Management Liabilities | 13.6 | 24.5 |
Total, Fair value | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 232.8 | 190.7 |
Investment in exchange-traded funds | 12.4 | 11.8 |
Liabilities | ||
Risk Management Liabilities | 190.2 | 240.3 |
Utility Segments | Natural gas contracts | Level 1 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 1.2 | 0.3 |
Liabilities | ||
Risk Management Liabilities | 1.1 | |
Utility Segments | Natural gas contracts | Level 2 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 10.5 | 3.1 |
Liabilities | ||
Risk Management Liabilities | 3.8 | 14.1 |
Utility Segments | Natural gas contracts | Total, Fair value | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 11.7 | 3.4 |
Liabilities | ||
Risk Management Liabilities | 3.8 | 15.2 |
Utility Segments | FTRs | Level 3 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 1.0 | 2.1 |
Liabilities | ||
Risk Management Liabilities | 0.1 | 0.1 |
Utility Segments | FTRs | Total, Fair value | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 1.0 | 2.1 |
Liabilities | ||
Risk Management Liabilities | 0.1 | 0.1 |
Utility Segments | Petroleum product contracts | Level 1 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 0.1 | 0.2 |
Utility Segments | Petroleum product contracts | Total, Fair value | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 0.1 | 0.2 |
Utility Segments | Coal contract | Level 2 | Fair value measurements on a recurring basis
|
||
Liabilities | ||
Risk Management Liabilities | 0.1 | |
Utility Segments | Coal contract | Level 3 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 0.1 | 2.5 |
Liabilities | ||
Risk Management Liabilities | 4.7 | 9.0 |
Utility Segments | Coal contract | Total, Fair value | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 0.1 | 2.5 |
Liabilities | ||
Risk Management Liabilities | 4.8 | 9.0 |
Nonregulated Segments | Natural gas contracts | Level 1 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 10.2 | 21.4 |
Liabilities | ||
Risk Management Liabilities | 9.0 | 17.7 |
Nonregulated Segments | Natural gas contracts | Level 2 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 21.2 | 36.4 |
Liabilities | ||
Risk Management Liabilities | 14.8 | 36.9 |
Nonregulated Segments | Natural gas contracts | Level 3 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 2.9 | 5.4 |
Liabilities | ||
Risk Management Liabilities | 1.2 | 1.5 |
Nonregulated Segments | Natural gas contracts | Total, Fair value | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 34.3 | 63.2 |
Liabilities | ||
Risk Management Liabilities | 25.0 | 56.1 |
Nonregulated Segments | Electric contracts | Level 1 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 64.0 | 48.4 |
Liabilities | ||
Risk Management Liabilities | 78.6 | 54.9 |
Nonregulated Segments | Electric contracts | Level 2 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 107.9 | 61.3 |
Liabilities | ||
Risk Management Liabilities | 70.3 | 91.1 |
Nonregulated Segments | Electric contracts | Level 3 | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 13.7 | 9.6 |
Liabilities | ||
Risk Management Liabilities | 7.6 | 13.9 |
Nonregulated Segments | Electric contracts | Total, Fair value | Fair value measurements on a recurring basis
|
||
Assets | ||
Risk Management Assets | 185.6 | 119.3 |
Liabilities | ||
Risk Management Liabilities | $ 156.5 | $ 159.9 |
COMMON EQUITY (Details 2) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Numerator: | ||
Net income from continuing operations | $ 182.2 | $ 98.8 |
Discontinued operations, net of tax | 6.1 | 0.9 |
Preferred stock dividends of subsidiary | (0.8) | (0.8) |
Net income attributed to common shareholders | $ 187.5 | $ 98.9 |
Denominator: | ||
Average shares of common stock - basic | 78.7 | 78.6 |
Effect of dilutive securities - Stock-based compensation (in shares) | 0.4 | 0.4 |
Effect of dilutive securities - Deferred compensation (in shares) | 0.2 | 0.2 |
Average shares of common stock - diluted | 79.3 | 79.2 |
Earnings (Loss) per common share | ||
Basic (in dollars per share) | $ 2.38 | $ 1.26 |
Diluted (in dollars per share) | $ 2.37 | $ 1.25 |
Out-of-the-money stock options
|
||
Disclosure of antidilutive shares | ||
Antidilutive shares excluded from calculation of diluted earnings per share | 0.2 | 0.8 |
INVESTMENT IN ATC (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Changes in equity method investments | ||
Equity method investments balance at beginning of period | $ 512.2 | |
Add: Earnings from equity method investment | 22.3 | 21.1 |
Add: Capital contributions | 1.7 | 10.4 |
Equity method investments balance at end of period | 518.3 | |
ATC
|
||
Investments in affiliates, at equity method | ||
Equity method investment, ownership interest (as a percent) | 34.00% | |
Changes in equity method investments | ||
Equity method investments balance at beginning of period | 476.6 | 439.4 |
Add: Earnings from equity method investment | 21.7 | 20.8 |
Add: Capital contributions | 1.7 | 3.4 |
Less: Dividends received | 17.3 | 16.7 |
Equity method investments balance at end of period | $ 482.7 | $ 446.9 |
VARIABLE INTEREST ENTITIES
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | NOTE 18 — VARIABLE INTEREST ENTITIES
In 2012, ITF formed AMP Trillium LLC as a joint venture with AMP Americas LLC. ITF owns 30% and AMP Americas LLC owns 70% of the joint venture. The joint venture was established to own and operate compressed natural gas fueling stations. The preferred source of capital funding for the joint venture is loans from ITF. We determined that the joint venture is a variable interest entity and that ITF is the primary beneficiary, which requires us to consolidate the assets, liabilities, and statements of income of the joint venture. At March 31, 2013, and December 31, 2012, our variable interests in the joint venture included an insignificant equity investment and insignificant receivables. Our maximum exposure to loss as a result of this joint venture was not significant. The carrying amounts of AMP Trillium LLC assets and liabilities included on our balance sheets were also not significant.
In 2011, ITF formed Integrys PTI CNG Fuels LLC as a joint venture with Paper Transport Inc. ITF and Paper Transport Inc. each own 50% of the joint venture. The joint venture was established to own and operate compressed natural gas fueling stations. The preferred source of capital funding for the joint venture is loans from ITF. We determined that the joint venture is a variable interest entity and that ITF is the primary beneficiary, which requires us to consolidate the assets, liabilities, and statements of income of the joint venture. At March 31, 2013, and December 31, 2012, our variable interests in the joint venture included an insignificant equity investment and insignificant receivables. Our maximum exposure to loss as a result of this joint venture was not significant. The carrying amounts of Integrys PTI CNG Fuels LLC assets and liabilities included on our balance sheets were also not significant.
We have a variable interest in an entity through a power purchase agreement at UPPCO that reimburses an independent power producing entity for coal costs relating to purchased energy. There is no obligation to purchase energy under this agreement. This contract for 17.5 megawatts of capacity expires in 2014. We evaluated this variable interest entity for possible consolidation. We considered which interest holder has the power to direct the activities that most significantly impact the economics of the variable interest entity; this interest holder is considered the primary beneficiary of the entity and is required to consolidate the entity. For a variety of reasons, including qualitative factors such as the length of the remaining term of the contract compared with the remaining life of the plant and the fact that we do not have the power to direct the operations and maintenance of the facility, we determined we are not the primary beneficiary of the variable interest entity. At March 31, 2013, and December 31, 2012, the assets and liabilities on the balance sheets that related to our involvement with this variable interest entity pertained to working capital accounts and represented the amounts we owed for current deliveries of power. We have not guaranteed any debt or provided any equity support, liquidity arrangements, performance guarantees, or other commitments associated with the contract. There is not a significant potential exposure to loss as a result of involvement with the variable interest entity.
We also had a variable interest in Fox Energy Company LLC through a power purchase agreement at WPS that contained a tolling arrangement related to the cost of fuel. In connection with the purchase of Fox Energy Company LLC, WPS paid $50.0 million for the early termination of this 500 megawatt agreement. See Note 4, “Acquisitions,” for more information regarding this purchase. We evaluated this variable interest entity for possible consolidation and determined that consolidation was not required since we were not the primary beneficiary of the variable interest entity. The assets and liabilities on our December 31, 2012 balance sheet that related to our involvement with this variable interest entity pertained to working capital accounts and represented the amounts we owed for current deliveries of power.
|
EMPLOYEE BENEFITS PLANS (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
|
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EMPLOYEE BENEFITS PLANS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of net periodic benefit cost for benefit plans |
|
COMMON EQUITY (Details 4) (USD $)
In Millions, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Capital Transactions with Subsidiaries | |
Dividends To Parent | $ 44.4 |
Return Of Capital To Parent | 21.0 |
Equity Contributions From Parent | 213.4 |
WPS
|
|
Capital Transactions with Subsidiaries | |
Dividends To Parent | 27.1 |
Equity Contributions From Parent | 200.0 |
WPS | WPS Investments, LLC
|
|
Capital Transactions with Subsidiaries | |
Ownership interest (as a percent) | 11.66% |
WPS Investments, LLC
|
|
Capital Transactions with Subsidiaries | |
Dividends To Parent | 17.3 |
Equity Contributions From Parent | 1.7 |
Ownership interest (as a percent) | 85.86% |
MERC
|
|
Capital Transactions with Subsidiaries | |
Return Of Capital To Parent | 21.0 |
UPPCO | WPS Investments, LLC
|
|
Capital Transactions with Subsidiaries | |
Ownership interest (as a percent) | 2.48% |
ITF
|
|
Capital Transactions with Subsidiaries | |
Equity Contributions From Parent | $ 11.7 |
SHORT-TERM DEBT AND LINES OF CREDIT (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
|
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SHORT-TERM DEBT AND LINES OF CREDIT | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of short-term borrowings |
|
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Schedule of average amount of short-term borrowings |
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Schedule of revolving credit facilities and remaining available capacity |
|
RISK MANAGEMENT ACTIVITIES (Details 4) (Utility Segments, USD $)
In Millions, unless otherwise specified |
3 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
Natural gas contracts
Balance Sheet - Regulatory assets (current)
|
Mar. 31, 2012
Natural gas contracts
Balance Sheet - Regulatory assets (current)
|
Mar. 31, 2013
Natural gas contracts
Balance Sheet - Regulatory assets (long-term)
|
Mar. 31, 2012
Natural gas contracts
Balance Sheet - Regulatory assets (long-term)
|
Mar. 31, 2013
Natural gas contracts
Balance Sheet - Regulatory liabilities (current)
|
Mar. 31, 2012
Natural gas contracts
Balance Sheet - Regulatory liabilities (current)
|
Mar. 31, 2013
Natural gas contracts
Balance Sheet - Regulatory liabilities (long-term)
|
Mar. 31, 2012
Natural gas contracts
Balance Sheet - Regulatory liabilities (long-term)
|
Mar. 31, 2012
Natural gas contracts
Income Statement - Utility cost of fuel, natural gas and purchased power
|
Mar. 31, 2013
Natural gas contracts
Income Statement - Operating and maintenance expense
|
Mar. 31, 2013
FTRs
Balance Sheet - Regulatory assets (current)
|
Mar. 31, 2012
FTRs
Balance Sheet - Regulatory assets (current)
|
Mar. 31, 2013
FTRs
Balance Sheet - Regulatory liabilities (current)
|
Mar. 31, 2012
FTRs
Balance Sheet - Regulatory liabilities (current)
|
Mar. 31, 2012
Petroleum product contracts
Balance Sheet - Regulatory assets (current)
|
Mar. 31, 2012
Petroleum product contracts
Balance Sheet - Regulatory liabilities (current)
|
Mar. 31, 2012
Petroleum product contracts
Income Statement - Operating and maintenance expense
|
Mar. 31, 2013
Coal contract
Balance Sheet - Regulatory assets (current)
|
Mar. 31, 2012
Coal contract
Balance Sheet - Regulatory assets (current)
|
Mar. 31, 2013
Coal contract
Balance Sheet - Regulatory assets (long-term)
|
Mar. 31, 2012
Coal contract
Balance Sheet - Regulatory assets (long-term)
|
Mar. 31, 2013
Coal contract
Balance Sheet - Regulatory liabilities (current)
|
Mar. 31, 2013
Coal contract
Balance Sheet - Regulatory liabilities (long-term)
|
Mar. 31, 2013
Purchases
Natural gas contracts
therm
|
Dec. 31, 2012
Purchases
Natural gas contracts
therm
|
Mar. 31, 2013
Purchases
Petroleum product contracts
bbl
|
Dec. 31, 2012
Purchases
Petroleum product contracts
bbl
|
Mar. 31, 2013
Purchases
Coal contract
T
|
Dec. 31, 2012
Purchases
Coal contract
T
|
Dec. 31, 2012
Sales
Natural gas contracts
therm
|
Mar. 31, 2013
Sales
Coal contract
T
|
Mar. 31, 2013
Other transactions
FTRs
kWh
|
Dec. 31, 2012
Other transactions
FTRs
kWh
|
|
Risk management activities | |||||||||||||||||||||||||||||||||
Notional volume of outstanding non-hedge derivative contracts | 595,400,000 | 1,072,600,000 | 100,000 | ||||||||||||||||||||||||||||||
Notional volume of outstanding non-hedge derivative contracts | 1,579,000,000 | 4,057,200,000 | |||||||||||||||||||||||||||||||
Notional volume of outstanding non-hedge derivative contracts | 50,855.0 | 62,811.0 | |||||||||||||||||||||||||||||||
Notional volume of outstanding non-hedge derivative contracts | 4,700,000 | 5,100,000 | 200,000 | ||||||||||||||||||||||||||||||
Unrealized gains (losses) recorded related to non-hedge derivatives | $ 13.0 | $ (6.4) | $ 0.8 | $ (0.8) | $ 5.9 | $ (3.7) | $ 0.8 | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.2 | $ 0.4 | $ (0.4) | $ (0.3) | $ 0.1 | $ 0.1 | $ 0.1 | $ 1.9 | $ (3.1) | $ 2.3 | $ (3.5) | $ (0.2) | $ (2.2) |
GUARANTEES (Details) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2013
|
---|---|
Guarantees | |
Total guarantees | $ 668.0 |
Expiration Less Than 1 Year | 417.3 |
Expiration from 1 to 3 Years | 31.4 |
Expiration Over 3 Years | 219.3 |
Integrys Energy Services | Parental guarantees
|
|
Guarantees | |
Total guarantees | 487.0 |
Guarantee exposure related to open transactions | 229.7 |
Guarantees supporting commodity transactions
|
|
Guarantees | |
Total guarantees | 597.1 |
Expiration Less Than 1 Year | 368.8 |
Expiration from 1 to 3 Years | 31.3 |
Expiration Over 3 Years | 197.0 |
Guarantees supporting commodity transactions | Integrys Energy Services | Parental guarantees
|
|
Guarantees | |
Total guarantees | 436.3 |
Guarantees supporting commodity transactions | MERC
|
|
Guarantees | |
Total guarantees | 108.5 |
Guarantees supporting commodity transactions | MGU
|
|
Guarantees | |
Total guarantees | 45.3 |
Guarantees supporting commodity transactions | IBS
|
|
Guarantees | |
Total guarantees | 5.0 |
Guarantees supporting commodity transactions | UPPCO
|
|
Guarantees | |
Total guarantees | 2.0 |
Standby letters of credit
|
|
Guarantees | |
Total guarantees | 34.2 |
Expiration Less Than 1 Year | 34.1 |
Expiration from 1 to 3 Years | 0.1 |
Standby letters of credit | Integrys Energy Services | Parental guarantees
|
|
Guarantees | |
Total guarantees | 32.5 |
Standby letters of credit | UPPCO, WPS, MGU, NSG, MERC, PGL, and Pinnacle CNG Systems
|
|
Guarantees | |
Total guarantees | 1.7 |
Surety bonds
|
|
Guarantees | |
Total guarantees | 14.4 |
Expiration Less Than 1 Year | 14.4 |
Other guarantees
|
|
Guarantees | |
Total guarantees | 22.3 |
Expiration Over 3 Years | 22.3 |
Other guarantees | Integrys Energy Services | Texas Retail Marketing Business
|
|
Guarantees | |
Total guarantees | 10.0 |
Environmental indemnification | Integrys Energy Services | Sale of Stoneman generation facility
|
|
Guarantees | |
Total guarantees | 5.0 |
Indemnification and workers' compensation coverage
|
|
Guarantees | |
Total guarantees | $ 7.3 |
SHORT-TERM DEBT AND LINES OF CREDIT (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
Short-term borrowings | ||
Short-term borrowings | $ 756.4 | $ 482.4 |
Commercial paper
|
||
Short-term borrowings | ||
Short-term borrowings | 556.4 | 482.4 |
Average discount rate (as a percent) | 0.33% | 0.40% |
Average amount of short-term borrowings | 400.7 | 357.5 |
Loan under term credit facility
|
||
Short-term borrowings | ||
Short-term borrowings | 200.0 | |
Average interest rate (as a percent) | 0.80% | |
Average amount of short-term borrowings | $ 8.9 |
SEGMENT OF BUSINESS (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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SEGMENT OF BUSINESS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment revenues and net income (loss) attributed to common shareholders |
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CASH AND CASH EQUIVALENTS
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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CASH AND CASH EQUIVALENTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | NOTE 2 — CASH AND CASH EQUIVALENTS
Short-term investments with an original maturity of three months or less are reported as cash equivalents.
The following is a supplemental disclosure to our statements of cash flows:
Cash received for income taxes decreased $32.2 million primarily due to refunds received in 2012 related to prior year amended tax returns.
Significant noncash transactions were:
* See Note 5, "Discontinued Operations," for more information.
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SHORT-TERM DEBT AND LINES OF CREDIT (Details 2) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2013
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Dec. 31, 2012
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Short-term borrowings | ||
Total short-term credit capacity | $ 1,810.0 | $ 1,610.0 |
Letters of credit issued inside credit facilities | 29.1 | 25.5 |
Short-term borrowings | 756.4 | 482.4 |
Available capacity under existing agreements | 1,024.4 | 1,102.1 |
Revolving credit facility maturing on May 17, 2014 | INTEGRYS ENERGY GROUP, INC.
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Short-term borrowings | ||
Total short-term credit capacity | 275.0 | 275.0 |
Revolving credit facility maturing on May 17, 2014 | WPS
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Short-term borrowings | ||
Total short-term credit capacity | 135.0 | 135.0 |
Revolving credit facility maturing on May 17, 2016 | INTEGRYS ENERGY GROUP, INC.
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Short-term borrowings | ||
Total short-term credit capacity | 200.0 | 200.0 |
Revolving credit facility maturing on June 13, 2017 | INTEGRYS ENERGY GROUP, INC.
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Short-term borrowings | ||
Total short-term credit capacity | 635.0 | 635.0 |
Revolving credit facility maturing on June 13, 2017 | WPS
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Short-term borrowings | ||
Total short-term credit capacity | 115.0 | 115.0 |
Revolving credit facility maturing on June 13, 2017 | PGL
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Short-term borrowings | ||
Total short-term credit capacity | 250.0 | 250.0 |
Term credit facility maturing on December 31, 2013
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Short-term borrowings | ||
Short-term borrowings | 200.0 | |
Term credit facility maturing on December 31, 2013 | WPS
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Short-term borrowings | ||
Total short-term credit capacity | 200.0 | |
Short-term borrowings | 200.0 | |
Commercial paper
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Short-term borrowings | ||
Short-term borrowings | 556.4 | 482.4 |
Accrued interest or original discount on outstanding debt | $ 0.1 |