JOINTLY OWNED UTILITY FACILITIES

12 Months Ended

Dec. 31, 2019

Jointly Owned Utility Plant, Net Ownership Amount [Abstract]

We hold a joint ownership interest in certain electric generating facilities. We are entitled to our share of generating capability and output of each facility equal to our respective ownership interest. We also pay our ownership share of additional construction costs, fuel inventory purchases, and operating expenses, unless specific agreements have been executed to limit our maximum exposure to additional costs. We record our proportionate share of significant jointly owned electric generating facilities as property, plant, and equipment on the balance sheets.

Information related to jointly owned utility facilities at December 31, 2019 was as follows:



(in millions, except for percentages and MW)	Weston Unit 4			Columbia Energy Center Units 1 and 2 ⁽²⁾			Forward Wind Energy Center
Ownership	70.0		%	27.6		%	44.6		%
Our share of rated capacity (MW) ⁽¹⁾	386.0			313.9			8.4
In-service date	2008			1975 and 1978			2008
Property, plant, and equipment	$	663.2		$	422.3		$	118.7
Accumulated depreciation	$	(232.4	)	$	(129.5	)	$	(46.4	)
CWIP	$	5.3		$	1.8		$	0.1

⁽¹⁾

Capacity for our electric facilities is based on rated capacity, which is the net power output under average operating conditions with equipment in an average state of repair as of a given month in a given year. Values are primarily based on the net dependable expected capacity ratings for summer 2020 established by tests and may change slightly from year to year. The summer period is the most relevant for capacity planning purposes. This is a result of continually reaching demand peaks in the summer months, primarily due to air conditioning demand.


⁽²⁾	Columbia Energy Center is jointly owned by Wisconsin Power and Light, Madison Gas and Electric, and us. In October 2016, Wisconsin Power and Light received an order from the PSCW approving amendments to the Columbia Energy Center joint operating agreement between the

parties allowing Madison Gas and Electric and us to forgo certain capital expenditures at the Columbia Energy Center. As a result, Wisconsin Power and Light will incur these capital expenditures in exchange for a proportional increase in its ownership share of the Columbia Energy Center. Based upon the additional capital expenditures Wisconsin Power and Light expects to incur through June 1, 2020, our ownership interest would decrease to 27.5%.

We have partnered with an unaffiliated utility to construct two solar projects in Wisconsin. Badger Hollow I is located in Iowa County, Wisconsin, and Two Creeks is located in Manitowoc County, Wisconsin. Once constructed, we will own 100 MW of the output of each project for a total of 200 MW. The PSCW approved the acquisition of these two projects in April 2019. Construction began at Two Creeks and Badger Hollow I in August 2019 and October 2019, respectively. Commercial operation of both projects is targeted for the end of 2020. The CWIP balances for Badger Hollow I and Two Creeks as of December 31, 2019 were $32.5 million and $87.3 million, respectively.

Our proportionate share of direct expenses for the joint operation of these plants is recorded in operating expenses in the income statements. We have supplied our own financing for all jointly owned projects.