REGULATORY ENVIRONMENT	6 Months Ended
Jun. 30, 2017
Regulated Operations [Abstract]
REGULATORY ENVIRONMENT	REGULATORY ENVIRONMENT 2018 and 2019 Rates During April 2017, we, along with WG and WPS, filed an application with the PSCW for approval of a settlement agreement we made with several of our commercial and industrial customers regarding 2018 and 2019 base rates. In this proposed settlement agreement, we agreed to keep electric and natural gas base rates frozen for our customers through 2019. In addition, we agreed to extend and expand the electric real-time pricing options for large commercial and industrial customers, and we agreed to prevent the continued growth of certain escrowed costs. Deferral of the revenue requirement impacts of any federal corporate tax reform enacted in 2017, or during the rate freeze period, was included in the agreement as well. Pursuant to the settlement agreement, we also agreed to keep our earnings sharing mechanism, which applies only to earnings above our authorized ROE, in place through 2019. In July 2017, the PSCW staff issued a commission memorandum in response to the settlement agreement, and we expect the PSCW to issue a final order on the agreement during the third quarter of 2017. If the PSCW rejects the proposed settlement agreement, we expect we will file a traditional rate proceeding. Natural Gas Storage Facilities in Michigan In January 2017, WEC Energy Group signed an agreement for the acquisition of Bluewater. Bluewater owns natural gas storage facilities in Michigan that would provide some of the current storage needs for our natural gas distribution service customers. As a result of this agreement, we, along with WG and WPS, filed a request with the PSCW in February 2017 for a declaratory ruling on various items associated with the storage facilities. In the filing, we requested that the PSCW review and confirm the reasonableness and prudency of our potential long-term storage service agreements and interstate natural gas transportation contracts related to the storage facilities. We also requested approval to amend WEC Energy Group's AIA to ensure WBS and WEC Energy Group's other subsidiaries could provide services to the storage facilities. During June 2017, the PSCW granted, subject to various conditions, these declarations and approvals, and WEC Energy Group acquired Bluewater on June 30, 2017. See Note 12, Related Parties, for more information. Formation of Upper Michigan Energy Resources Corporation In December 2016, both the MPSC and the PSCW approved the operation of UMERC, a subsidiary of WEC Energy Group, as a stand-alone utility in the Upper Peninsula of Michigan, and UMERC became operational effective January 1, 2017. This utility holds the electric and natural gas distribution assets, previously held by WPS and us, located in the Upper Peninsula of Michigan. In August 2016, WEC Energy Group entered into an agreement with the Tilden Mining Company (Tilden), under which Tilden will purchase electric power from UMERC for its iron ore mine for 20 years. The agreement also calls for UMERC to construct and operate approximately 180 MWs of natural gas-fired generation located in the Upper Peninsula of Michigan. Subject to regulatory approval of both the agreement with Tilden and the construction of the proposed generation, the new units are expected to begin commercial operation in 2019 and should allow for the retirement of PIPP no later than 2020. Tilden will remain our customer until this new generation begins commercial operation. We expect the MPSC to issue final orders on the Tilden agreement and the proposed generation during the fourth quarter of 2017.

REGULATORY ENVIRONMENT

2018 and 2019 Rates

During April 2017, we, along with WG and WPS, filed an application with the PSCW for approval of a settlement agreement we made with several of our commercial and industrial customers regarding 2018 and 2019 base rates. In this proposed settlement agreement, we agreed to keep electric and natural gas base rates frozen for our customers through 2019. In addition, we agreed to extend and expand the electric real-time pricing options for large commercial and industrial customers, and we agreed to prevent the continued growth of certain escrowed costs. Deferral of the revenue requirement impacts of any federal corporate tax reform enacted in 2017, or during the rate freeze period, was included in the agreement as well. Pursuant to the settlement agreement, we also agreed to keep our earnings sharing mechanism, which applies only to earnings above our authorized ROE, in place through 2019.

In July 2017, the PSCW staff issued a commission memorandum in response to the settlement agreement, and we expect the PSCW to issue a final order on the agreement during the third quarter of 2017. If the PSCW rejects the proposed settlement agreement, we expect we will file a traditional rate proceeding.

Natural Gas Storage Facilities in Michigan

In January 2017, WEC Energy Group signed an agreement for the acquisition of Bluewater. Bluewater owns natural gas storage facilities in Michigan that would provide some of the current storage needs for our natural gas distribution service customers. As a result of this agreement, we, along with WG and WPS, filed a request with the PSCW in February 2017 for a declaratory ruling on various items associated with the storage facilities. In the filing, we requested that the PSCW review and confirm the reasonableness and prudency of our potential long-term storage service agreements and interstate natural gas transportation contracts related to the storage facilities. We also requested approval to amend WEC Energy Group's AIA to ensure WBS and WEC Energy Group's other subsidiaries could provide services to the storage facilities. During June 2017, the PSCW granted, subject to various conditions, these declarations and approvals, and WEC Energy Group acquired Bluewater on June 30, 2017. See Note 12, Related Parties, for more information.

Formation of Upper Michigan Energy Resources Corporation

In December 2016, both the MPSC and the PSCW approved the operation of UMERC, a subsidiary of WEC Energy Group, as a stand-alone utility in the Upper Peninsula of Michigan, and UMERC became operational effective January 1, 2017. This utility holds the electric and natural gas distribution assets, previously held by WPS and us, located in the Upper Peninsula of Michigan.

In August 2016, WEC Energy Group entered into an agreement with the Tilden Mining Company (Tilden), under which Tilden will purchase electric power from UMERC for its iron ore mine for 20 years. The agreement also calls for UMERC to construct and operate approximately 180 MWs of natural gas-fired generation located in the Upper Peninsula of Michigan. Subject to regulatory approval of both the agreement with Tilden and the construction of the proposed generation, the new units are expected to begin commercial operation in 2019 and should allow for the retirement of PIPP no later than 2020. Tilden will remain our customer until this new generation begins commercial operation. We expect the MPSC to issue final orders on the Tilden agreement and the proposed generation during the fourth quarter of 2017.