RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

Related Party Transactions

We and our subsidiary, WPS Leasing, routinely enter into transactions with related parties, including Integrys Energy Group, its subsidiaries, and other entities in which we have material interests.

We provide and receive services, property, and other items of value to and from our parent, Integrys Energy Group, and other subsidiaries of Integrys Energy Group. Effective January 1, 2014, after approval by the PSCW and other state commissions, a new affiliated interest agreement (Non-IBS AIA) went into effect and replaced certain prior agreements. It governs the provision and receipt of services by Integrys Energy Group subsidiaries, except that IBS will continue to provide services only under the existing IBS affiliated interest agreement (IBS AIA). Services under the Non-IBS AIA are subject to various pricing methodologies. All services provided by any regulated subsidiary to another regulated subsidiary are priced at cost. All services provided by any regulated subsidiary to any nonregulated subsidiary are priced at the greater of cost or fair market value. All services provided by any nonregulated subsidiary to any regulated subsidiary are priced at the lesser of cost or fair market value. All services provided by any regulated or nonregulated subsidiary to IBS are priced at cost.

IBS provides 15 categories of services (including financial, human resource, and administrative services) to us pursuant to the IBS AIA, which has been approved, or from which we have been granted appropriate waivers, by the appropriate regulators, including the PSCW. As required by FERC regulations for centralized service companies, IBS renders services at cost. The PSCW must be notified prior to making changes to the services offered under and the allocation methods specified in the IBS AIA. Other modifications or amendments to the IBS AIA would require PSCW approval. Recovery of allocated costs is addressed in our rate cases.

We provide services to ATC for its transmission facilities under several agreements approved by the PSCW. Services are billed to ATC under this agreement at our fully allocated cost.

We provide services to WRPC under an operating agreement approved by the PSCW. We are also under a service agreement with WRPC under which either party may be a service provider. Services are billed to WRPC under these agreements at our fully allocated cost.

The table below includes information summarizing transactions entered into with related parties as of:

(Millions)	December 31, 2014		December 31, 2013
Notes payable *
Integrys Energy Group	$	5.4	$	6.3
Accounts Payable
ATC	8.2		10.4
Liability related to income tax allocation
Integrys Energy Group	6.1		6.7

* WPS Leasing, our consolidated subsidiary, has a note payable to our parent company, Integrys Energy Group. At December 31, 2014, the current portion of the note payable was $2.5 million.

The following table shows activity associated with related party transactions:

(Millions)	2014		2013		2012
Electric transactions
Sales to UPPCO (1)	$	15.3	$	22.8	$	22.2
Sales to Integrys Transportation Fuels, LLC	0.1		—		—
Natural gas transactions (2)
Sales to IES	0.6		0.5		0.6
Purchases from IES	2.5		0.9		0.7
Interest expense (3)
Integrys Energy Group	0.5		0.5		0.5
Transactions with equity-method investees
Charges from ATC for network transmission services	99.0		98.4		94.2
Charges to ATC for services and construction	8.6		9.5		10.4
Net proceeds from WRPC sales of energy to MISO	—		—		2.9
Purchases of energy from WRPC	3.7		3.7		5.0
Charges to WRPC for operations	1.4		0.9		0.8
Equity earnings from WPS Investments, LLC (4)	9.5		10.2		10.2

⁽¹⁾  Includes sales through the date of the sale of UPPCO in August 2014, by Integrys Energy Group.

⁽²⁾  Includes sales and purchases through the date of the sale of IES in November 2014, by Integrys Energy Group.

⁽³⁾  WPS Leasing, our consolidated subsidiary, has a note payable to our parent company, Integrys Energy Group.

⁽⁴⁾  WPS Investments, LLC is a consolidated subsidiary of Integrys Energy Group that is jointly owned by Integrys Energy Group and us. At December 31, 2014, we had an 10.98% interest in WPS Investments accounted for under the equity method. Our ownership percentage has continued to decrease as additional equity contributions are made by Integrys Energy Group to WPS Investments.