REGULATORY ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2013

Regulatory Assets and Liabilities Disclosure [Abstract]

The following regulatory assets were reflected on our balance sheets as of December 31:



(Millions)	2013		2012		See Note
Regulatory assets ⁽¹⁾
Unrecognized pension and other postretirement benefit costs ⁽³⁾	$	130.6	$	346.7	15
Environmental remediation costs (net of insurance recoveries) ^{(2) (4)}	80.1		83.0		13
Termination of a tolling agreement with Fox Energy Company LLC	50.0		—		3
Crane Creek production tax credits ⁽⁵⁾	33.6		34.9
Income tax related items	26.9		19.7		12
De Pere Energy Center ⁽⁶⁾	23.8		26.2
Pension and other postretirement costs receivable through rate adjustments ^{(2) (7)}	9.4		—		22
Decoupling	7.9		7.9		22
Asset retirement obligations ⁽²⁾	6.0		6.5		11
Weston 3 lightning strike ^{(2) (8)}	3.6		7.3
Derivatives ⁽²⁾	3.3		10.5		1(h)
Other	13.5		19.6
Total regulatory assets	$	388.7	$	562.3

Balance Sheet Presentation
Current assets	$	46.2	$	26.1
Long-term assets	342.5		536.2
Total regulatory assets	$	388.7	$	562.3


⁽¹⁾	Based on prior and current rate treatment, we believe it is probable that we will continue to recover from customers the regulatory assets described above.


⁽²⁾	Regulatory assets not earning a return.


⁽³⁾	Represents the unrecognized future pension and other postretirement costs resulting from actuarial gains and losses on defined benefit and other postretirement plans. We are authorized recovery of this regulatory asset over the average future remaining service life of each plan.


⁽⁴⁾	As of December 31, 2013, we had not yet made cash expenditures for $64.4 million of these environmental remediation costs. The recovery of these costs depends on the timing of the actual expenditures.

⁽⁵⁾

In 2012, we elected to claim and subsequently received a Section 1603 Grant for our Crane Creek wind project in lieu of the production tax credit. As a result, we reversed previously recorded production tax credits. We also reduced the depreciable basis of the qualifying facility by the amount of the grant proceeds, which will result in a reduction of depreciation and amortization expense over a 12-year period. We recorded a regulatory asset for the deferral of previously recorded production tax credits and are authorized recovery of this net regulatory asset through 2039.

⁽⁶⁾

Prior to purchasing the De Pere Energy Center in 2002, we had a long-term power purchase contract with the De Pere Energy Center that was accounted for as a capital lease. As a result of the purchase, the capital lease obligation was reversed and the difference between the capital lease asset and the purchase price was recorded as a regulatory asset. We are authorized recovery of this regulatory asset through 2023.


⁽⁷⁾	Represents the under-collection of pension and other postretirement costs that will be recovered from customers in the future.


⁽⁸⁾	In 2007, a lightning strike caused significant damage to the Weston 3 generating facility. The PSCW approved the deferral of the incremental fuel and purchased power expenses, as well as the nonfuel operating and maintenance expenditures incurred as a result of the outage that were not covered by insurance. We are authorized recovery of this regulatory asset through 2014.

Schedule of Regulatory Liabilities

The following regulatory liabilities were reflected on our balance sheets as of December 31:



(Millions)	2013		2012		See Note
Regulatory liabilities
Removal costs ⁽¹⁾	$	238.0	$	233.3
Decoupling	24.3		15.7		22
Energy costs refundable through rate adjustments ⁽²⁾	21.9		22.7
Unrecognized pension and other postretirement benefit costs	18.5		17.7		15
Crane Creek depreciation deferral ⁽³⁾	9.0		9.4
Fox Energy Center ⁽⁴⁾	5.6		—		3
Other	7.0		9.8
Total regulatory liabilities	$	324.3	$	308.6

Balance Sheet Presentation
Current liabilities	$	38.0	$	27.6
Long-term liabilities	286.3		281.0
Total regulatory liabilities	$	324.3	$	308.6


⁽¹⁾	Represents amounts collected from customers to cover the cost of future removal of property, plant, and equipment.


⁽²⁾	Represents the over-collection of energy costs that will be refunded to customers in the future.


⁽³⁾	Represents the book depreciation taken on the Crane Creek wind project prior to our election to claim a Section 1603 Grant for the project in lieu of the production tax credit. See more information in the regulatory assets section.


⁽⁴⁾	Represents the deferral of incremental costs associated with owning and operating the Fox Energy Center, which was purchased in March 2013. The deferral does not include an allowance for earnings on shareholders' investment of $26.7 million, in accordance with GAAP requirements, which has created the net regulatory liability.

- Definition

Tabular disclosure of assets that are created when regulatory agencies permit public utilities to defer certain costs included in rate-setting to the balance sheet.

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