CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of gross receivables and related allowances for credit losses

We have included tables below that show our gross third-party receivable balances and the related allowance for credit losses at March 31, 2021 and December 31, 2020, by reportable segment.


(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
March 31, 2021
Accounts receivable and unbilled revenues	$	1,056.9		$	465.8		$	77.5		$	1,600.2		$	24.9		$	3.9		$	1,629.0
Allowance for credit losses	129.5			122.0			7.6			259.1			—			—			259.1
Accounts receivable and unbilled revenues, net (1)	$	927.4		$	343.8		$	69.9		$	1,341.1		$	24.9		$	3.9		$	1,369.9

Total accounts receivable, net – past due greater than 90 days (1)	$	68.8		$	38.4		$	3.8		$	111.0		$	—		$	—		$	111.0
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	97.5		%	100.0		%	—		%	95.0		%	—		%	—		%	95.0		%


(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
December 31, 2020
Accounts receivable and unbilled revenues	$	899.8		$	393.9		$	79.8		$	1,373.5		$	45.0		$	4.4		$	1,422.9
Allowance for credit losses	102.1			111.6			6.4			220.1			—			—			220.1
Accounts receivable and unbilled revenues, net (1)	$	797.7		$	282.3		$	73.4		$	1,153.4		$	45.0		$	4.4		$	1,202.8

Total accounts receivable, net – past due greater than 90 days (1)	$	84.8		$	34.5		$	3.5		$	122.8		$	—		$	—		$	122.8
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	97.6		%	100.0		%	—		%	95.5		%	—		%	—		%	95.5		%

(1)Our exposure to credit losses for certain regulated utility customers is mitigated by regulatory mechanisms we have in place. Specifically, rates related to all of the customers in our Illinois segment, as well as the residential rates of WE, WPS, and WG in our Wisconsin segment, include riders or other mechanisms for cost recovery or refund of uncollectible expense based on the difference between the actual provision for credit losses and the amounts recovered in rates. As a result, at March 31, 2021, $742.0 million, or 54.2%, of our net accounts receivable and unbilled revenues balance had regulatory protections in place to mitigate the exposure to credit losses. In addition, we have received specific orders related to the deferral of certain costs (including credit losses) incurred as a result of the COVID-19 pandemic. The additional protections related to our accounts receivable and unbilled revenue balances provided by these orders are subject to prudency reviews and are still being assessed. They are not reflected in the percentages in the above table or this note. See Note 22, Regulatory Environment, for more information on these orders.

Rollforward of the allowances for credit losses by reportable segment

A rollforward of the allowance for credit losses by reportable segment for the three months ended March 31, 2021 and 2020 is included below:


(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Corporate and Other		WEC Energy Group Consolidated
Balance at December 31, 2020	$	102.1	$	111.6	$	6.4	$	220.1	$	—	$	220.1
Provision for credit losses	13.7		7.1		1.3		22.1		—		22.1
Provision for credit losses deferred for future recovery or refund	22.3		3.1		—		25.4		—		25.4
Write-offs charged against the allowance	(18.5)		(2.8)		(0.5)		(21.8)		—		(21.8)
Recoveries of amounts previously written off	9.9		3.0		0.4		13.3		—		13.3
Balance at March 31, 2021	$	129.5	$	122.0	$	7.6	$	259.1	$	—	$	259.1

The increase in the allowance for credit losses at March 31, 2021, compared to December 31, 2020, was driven by higher past due accounts receivable balances at our utility segments, primarily related to residential customers. This increase in accounts receivable balances in arrears was driven by the continued economic disruptions caused by the COVID-19 pandemic, including continued high unemployment rates. Also, as a result of the winter moratorium rules, which are discussed in more detail below, and the COVID-19 pandemic and related regulatory orders we have received, we have been unable to disconnect any of our Wisconsin and Illinois residential customers since the fourth quarter of 2019. See Note 22, Regulatory Environment, for more information.


(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Corporate and Other		WEC Energy Group Consolidated
Balance at December 31, 2019	$	59.9	$	75.9	$	4.1	$	139.9	$	0.1	$	140.0
Provision for credit losses	13.7		14.4		0.7		28.8		—		28.8
Provision for credit losses deferred for future recovery or refund	3.3		29.5		—		32.8		—		32.8
Write-offs charged against the allowance	(19.7)		(31.6)		(1.3)		(52.6)		—		(52.6)
Recoveries of amounts previously written off	10.5		4.9		0.4		15.8		—		15.8
Balance at March 31, 2020	$	67.7	$	93.1	$	3.9	$	164.7	$	0.1	$	164.8

The increase in the allowance for credit losses at our Wisconsin and Illinois reportable segments was driven by an increase in past due accounts receivable balances from December 31, 2019 to March 31, 2020. This is a trend we generally see over the winter moratorium months, when we are not allowed to disconnect customer service as a result of non-payment. In Wisconsin, the winter moratorium begins on November 1 and ends on April 15, and in Illinois the winter moratorium begins on December 1 and ends on March 31.