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REGULATORY ENVIRONMENT (Tables)
 9 Months Ended
Sep. 30, 2019
March 2019 Rate Application  
Public Utilities, General Disclosures [Line Items]  
Schedule of proposals in regulatory proceedings
In March 2019, we filed an application with the PSCW to increase our retail electric, natural gas, and steam rates, effective January 1, 2020. Our application reflected the following proposals:
2020 Effective rate increase
 
 
 
 
Electric *
 
$
83
 million
/
2.9%
Gas
 
$
15
 million
/
3.9%
Steam
 
$
1
 million
/
4.5%
 
 
 
 
 
2021 Effective rate increase
 
 
 
 
Electric *
 
$
83
 million
/
2.9%
 
 
 
 
 
ROE
 
10.35%
 
 
 
 
 
Common equity component average on a financial basis
 
52.0%

*
Amounts are net of approximately $94 million and $17 million of previously deferred unprotected tax benefits from the Tax Legislation in 2020 and 2021, respectively.
August 2019 Settlement Agreement  
Public Utilities, General Disclosures [Line Items]  
Schedule of proposals in regulatory proceedings The settlement agreement reflects the following:
2020 Effective rate increase
 
 
 
 
Electric (1)
 
$
37
 million
/
1.3%
Gas (2)
 
$
10
 million
/
2.8%
Steam
 
$
2
 million
/
10.0%
 
 
 
 
 
ROE
 
10.0%
 
 
 
 
 
Common equity component average on a financial basis
 
52.5%

(1) 
Amount is net of previously deferred unprotected tax benefits from the Tax Legislation. The settlement agreement reflects the majority of the unprotected deferred tax benefits from the Tax Legislation being amortized over 2 years. Approximately $65 million of tax benefits would be amortized in each of 2020 and 2021. The unprotected deferred tax benefits related to the unrecovered balances of our recently retired plants and the SSR regulatory asset would be used to reduce the related regulatory asset. The initial application filed in March 2019 proposed that these tax benefits be refunded to customers over a period of 40 years with a significant portion being refunded in the first 2 years.

(2) 
Amount includes previously deferred unprotected tax expense from the Tax Legislation. The settlement agreement reflects all of the unprotected deferred tax expense from the Tax Legislation being amortized evenly over 4 years, which would result in approximately $5 million of previously deferred tax expense being amortized each year. The initial application filed in March 2019 proposed that this tax expense would be collected from customers over a period of 40 years.