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Schedule I - Condensed Parent Company Financial Statements
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
SCHEDULE I - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS
SCHEDULE I – CONDENSED
PARENT COMPANY FINANCIAL STATEMENTS
WEC ENERGY GROUP, INC. (PARENT COMPANY ONLY)
A. INCOME STATEMENTS
Year Ended December 31
(in millions)202120202019
Operating expenses $12.0 $5.3 $4.7 
Equity earnings of subsidiaries1,367.0 1,283.8 1,210.5 
Other income, net1.7 1.3 6.3 
Interest expense70.2 96.9 122.3 
Loss on debt extinguishment23.1 38.4 — 
Income before income taxes1,263.4 1,144.5 1,089.8 
Income tax benefit36.9 55.4 44.2 
Net income attributed to common shareholders$1,300.3 $1,199.9 $1,134.0 

The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.
B. STATEMENTS OF COMPREHENSIVE INCOME
Year Ended December 31
(in millions)202120202019
Net income attributed to common shareholders$1,300.3 $1,199.9 $1,134.0 
Other comprehensive income (loss), net of tax
Derivatives accounted for as cash flow hedges
Net derivative gain (loss), net of tax expense (benefit) of $0.2, $(1.6), and $(1.3), respectively
0.6 (4.3)(3.5)
Reclassification of realized net derivative (gain) loss to net income, net of tax0.9 1.5 (0.8)
Cash flow hedges, net1.5 (2.8)(4.3)
Defined benefit plans
Pension and OPEB adjustments arising during the period, net of tax0.4 (0.4)0.4 
Amortization of pension and OPEB costs included in net periodic benefit cost, net of tax0.3 0.3 0.2 
Defined benefit plans, net0.7 (0.1)0.6 
Other comprehensive income from subsidiaries, net of tax1.4 0.2 2.2 
Other comprehensive income (loss), net of tax3.6 (2.7)(1.5)
Comprehensive income attributed to common shareholders$1,303.9 $1,197.2 $1,132.5 

The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.
C. BALANCE SHEETS
At December 31
(in millions)20212020
Assets
Current assets
Cash and cash equivalents$0.5 $4.0 
Accounts receivable from related parties0.6 0.7 
Notes receivable from related parties29.0 110.8 
Prepaid taxes56.5 54.4 
Other0.1 0.1 
Current assets86.7 170.0 
Long-term assets
Investments in subsidiaries15,365.4 14,248.3 
Other21.8 15.7 
Long-term assets15,387.2 14,264.0 
Total assets$15,473.9 $14,434.0 
Liabilities and Equity
Current liabilities
Short-term debt$736.1 $820.4 
Accounts payable to related parties5.5 31.7 
Notes payable to related parties220.4 303.0 
Other21.5 19.6 
Current liabilities983.5 1,174.7 
Long-term liabilities
Long-term debt3,549.8 2,754.8 
Other27.4 34.8 
Long-term liabilities3,577.2 2,789.6 
Common shareholders' equity10,913.2 10,469.7 
Total liabilities and equity$15,473.9 $14,434.0 

The accompanying notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.
D. STATEMENTS OF CASH FLOWS
Year Ended December 31
(in millions)202120202019
Operating activities
Net income attributed to common shareholders$1,300.3 $1,199.9 $1,134.0 
Reconciliation to cash provided by operating activities
Equity income in subsidiaries, net of distributions(571.3)(385.7)(475.2)
Deferred income taxes, net(1.9)12.7 9.1 
Loss on debt extinguishment23.1 38.4 — 
Change in –
Accounts receivable from related parties0.1 — 3.3 
Prepaid taxes(2.1)(7.9)(46.5)
Accounts payable to related parties(26.2)29.2 (5.2)
Other current liabilities8.6 (2.4)1.5 
Other, net(2.5)9.6 7.0 
Net cash provided by operating activities728.1 893.8 628.0 
Investing activities
Capital contributions to subsidiaries(734.0)(1,026.1)(602.3)
Return of capital from subsidiaries196.1 602.8 337.3 
Short-term notes receivable from related parties, net81.8 (88.3)48.5 
Redemption of long-term notes receivable from UMERC— — 150.0 
Other, net(1.1)3.7 (0.6)
Net cash used in investing activities(457.2)(507.9)(67.1)
Financing activities
Exercise of stock options15.7 43.8 67.0 
Purchase of common stock(33.1)(99.2)(140.1)
Dividends paid on common stock(854.8)(798.0)(744.5)
Issuance of long-term debt1,100.0 1,650.0 350.0 
Retirement of long-term debt(300.0)(1,430.0)— 
Issuance of short-term loan— 340.0 — 
Repayment of short-term loan(340.0)— — 
Change in other short-term debt255.7 145.7 (213.7)
Short-term notes payable to related parties, net(82.6)(186.3)90.4 
Payments for debt extinguishment and issuance costs(33.9)(47.3)(0.8)
Other, net(1.4)(1.1)(1.5)
Net cash used in financing activities(274.4)(382.4)(593.2)
Net change in cash and cash equivalents(3.5)3.5 (32.3)
Cash and cash equivalents at beginning of year4.0 0.5 32.8 
Cash and cash equivalents at end of year$0.5 $4.0 $0.5 

The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.
SCHEDULE I – CONDENSED
PARENT COMPANY FINANCIAL STATEMENTS
WEC ENERGY GROUP, INC. (PARENT COMPANY ONLY)

E. NOTES TO PARENT COMPANY FINANCIAL STATEMENTS

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

For Parent Company only presentation, investments in subsidiaries are accounted for using the equity method. We use the cumulative earnings approach for classifying distributions received in the statements of cash flows.

The condensed Parent Company financial statements and notes should be read in conjunction with the consolidated financial statements and notes of WEC Energy Group, Inc. appearing in this Annual Report on Form 10-K.

NOTE 2—CASH DIVIDENDS RECEIVED FROM SUBSIDIARIES

Dividends received from our subsidiaries during the years ended December 31 were as follows:
(in millions)202120202019
WE$360.0 $395.0 $360.0 
We Power217.9 240.9 192.5 
ATC Holding (1)
106.4 112.6 87.4 
WECI (2)
46.4 33.6 25.4 
Bluewater35.0 — — 
WG30.0 70.0 60.0 
UMERC— 46.0 10.0 
Total$795.7 $898.1 $735.3 

(1)    We also received amounts classified as return of capital of $32.0 million, $19.6 million, and $220.6 million from ATC Holding during the years ended December 31, 2021, 2020, and 2019, respectively.

(2)    We also received amounts classified as return of capital of $164.1 million, $583.2 million, and $116.7 million from WECI during the years ended December 31, 2021, 2020, and 2019, respectively.

NOTE 3—LONG-TERM DEBT

The following table shows the future maturities of our long-term debt outstanding as of December 31, 2021:
(in millions)
2022$— 
2023700.0 
2024600.0 
2025120.0 
2026— 
Thereafter2,150.0 
Total$3,570.0 

WECC is our subsidiary and has $50.0 million of long-term notes outstanding. In a Support Agreement between WECC and us, we agreed to make sufficient liquid asset contributions to WECC to permit WECC to service its debt obligations as they become due.
NOTE 4—FAIR VALUE MEASUREMENTS

The following table shows the financial instruments included on our balance sheets that are not recorded at fair value as of December 31:
20212020
(in millions)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt, including current portion$3,549.8 $3,546.9 $2,754.8 $2,836.9 

The fair value of our long-term debt is categorized within Level 2 of the fair value hierarchy.

NOTE 5—GUARANTEES

The following table shows our outstanding guarantees on behalf of our subsidiaries:
Total Amounts Committed at December 31, 2021Expiration
(in millions)
Less Than 1 Year1 to 3 YearsOver 3 Years
Guarantees supporting business operations (1)
$888.4 $813.7 $1.2 $73.5 
Standby letters of credit (2)
27.8 2.5 — 25.3 
Surety bonds (3)
12.8 12.8 — — 
Other guarantees (4)
9.4 — — 9.4 
Total guarantees$938.4 $829.0 $1.2 $108.2 

(1)    Consists of $6.2 million, $9.7 million, and $872.5 million of guarantees to support the business operations of UMERC, Bluewater, and WECI, respectively.

(2)    At our request, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. These amounts are not reflected on our balance sheets.

(3)    Primarily for workers compensation self-insurance programs and obtaining various licenses, permits, and rights-of-way. These amounts are not reflected on our balance sheets.

(4)    Consists of $9.4 million related to workers compensation coverage for which a liability was recorded on our balance sheets.

NOTE 6—SUPPLEMENTAL CASH FLOW INFORMATION
(in millions)202120202019
Cash paid for interest$70.2 $98.5 $117.7 
Cash received for income taxes, net(27.9)(61.5)(4.9)

NOTE 7—SHORT-TERM NOTES RECEIVABLE FROM RELATED PARTIES

The following table shows our outstanding short-term notes receivable from related parties as of December 31:
(in millions)20212020
UMERC$22.0 $30.7 
Bluewater7.0 — 
Integrys— 68.1 
Wispark— 12.0 
Total$29.0 $110.8 
NOTE 8—SHORT-TERM NOTES PAYABLE TO RELATED PARTIES

The following table shows our outstanding short-term notes payable to related parties as of December 31:
(in millions)20212020
WBS$107.7 $149.0 
WECC107.4 110.0 
Integrys5.3 — 
Bluewater— 44.0 
Total$220.4 $303.0