Jointly Owned Utility Facilities

12 Months Ended

Dec. 31, 2021

Jointly Owned Utility Plant, Net Ownership Amount [Abstract]

We Power and WPS hold joint ownership interests in certain electric generating facilities. They are entitled to their share of generating capability and output of each facility equal to their respective ownership interest. They pay their ownership share of additional construction costs and have supplied their own financing for all jointly owned projects. We record We Power's and WPS's proportionate share of significant jointly owned electric generating facilities as property, plant, and equipment on the balance sheets.

We Power leases its ownership interest in ER 1 and ER 2 to WE, and WE operates these units. WE and WPS record their respective share of fuel inventory purchases and operating expenses, unless specific agreements have been executed to limit their maximum exposure to additional costs. WE's and WPS's proportionate share of direct expenses for the joint operation of these plants is recorded within operating expenses in the income statements.

Information related to jointly owned utility facilities at December 31, 2021 was as follows:


	We Power			WPS
(in millions, except for percentages and MW)	Elm Road Generating Station Units 1 and 2			Weston Unit 4			Columbia Energy Center Units 1 and 2			Forward Wind			Two Creeks (2)			Badger Hollow I (3)
Ownership	83.34		%	70.0		%	27.5		%	44.6		%	66.7		%	66.7		%
Share of capacity (MW) (1)	1,060.8			387.3			311.1			61.5			100.0			100.0
In-service date	2010 and 2011			2008			1975 and 1978			2008			2020			2021
Property, plant, and equipment	$	2,433.8		$	598.4		$	425.4		$	122.5		$	136.7		$	134.5
Accumulated depreciation	$	(487.7)		$	(224.3)		$	(161.9)		$	(53.3)		$	(5.3)		$	(0.4)
CWIP	$	11.1		$	3.8		$	3.9		$	—		$	—		$	0.1

(1) Capacity for our jointly-owned electric generation facilities, other than Forward Wind, Two Creeks, and Badger Hollow I 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 2022 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. Capacity for Forward Wind is based on nameplate capacity, which is the amount of energy a turbine should produce at optimal wind speeds. Capacity for Two Creeks and Badger Hollow I is based on nameplate capacity, which is the maximum output that a generator should produce at continuous full power.

(2) Commercial operation was achieved in November 2020 for Two Creeks.

(3) Commercial operation was achieved in November 2021 for Badger Hollow I.

WE, along with an unaffiliated utility, received PSCW approval to construct Badger Hollow II, a solar project that will be located in Iowa County, Wisconsin. Once constructed, WE will own 66.7%, or 100 MW, of Badger Hollow II. Commercial operation is targeted for the first quarter of 2023. The CWIP balance for Badger Hollow II was $39.8 million as of December 31, 2021.

WPS, along with an unaffiliated utility, received PSCW approval to acquire the Red Barn Wind Park, a utility-scale wind-powered electric generating facility. The project will be located in Grant County, Wisconsin and once constructed, WPS will own 90.0%, or 82 MW of this project. Construction is expected to be completed by the end of 2022.