Credit Losses (Tables)

12 Months Ended

Dec. 31, 2023

Credit Loss [Abstract]

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 December 31, 2023 and 2022, by reportable segment.

(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
December 31, 2023
Accounts receivable and unbilled revenues	$	1,078.0		$	481.5		$	94.9		$	1,654.4		$	33.9		$	8.4		$	1,696.7
Allowance for credit losses	77.4			109.7			6.4			193.5			—			—			193.5
Accounts receivable and unbilled revenues, net (1)	$	1,000.6		$	371.8		$	88.5		$	1,460.9		$	33.9		$	8.4		$	1,503.2
Total accounts receivable, net – past due greater than 90 days (1)	$	51.7		$	45.0		$	2.1		$	98.8		$	—		$	—		$	98.8
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	93.6		%	100.0		%	—		%	94.5		%	—		%	—		%	94.5		%

(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
December 31, 2022
Accounts receivable and unbilled revenues	$	1,199.4		$	624.2		$	164.4		$	1,988.0		$	25.4		$	4.3		$	2,017.7
Allowance for credit losses	82.0			111.0			6.3			199.3			—			—			199.3
Accounts receivable and unbilled revenues, net (1)	$	1,117.4		$	513.2		$	158.1		$	1,788.7		$	25.4		$	4.3		$	1,818.4
Total accounts receivable, net – past due greater than 90 days (1)	$	51.9		$	52.9		$	1.9		$	106.7		$	—		$	—		$	106.7
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	97.0		%	100.0		%	—		%	96.8		%	—		%	—		%	96.8		%

(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 December 31, 2023, $914.6 million, or 60.8%, of our net accounts receivable and unbilled revenues balance had regulatory protections in place to mitigate the exposure to credit losses.

Rollforward of the allowances for credit losses by reportable segment

A rollforward of the allowance for credit losses by reportable segment for the years ended December 31, 2023, 2022, and 2021, is included below:

(in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2023	$	82.0	$	111.0	$	6.3	$	199.3
Provision for credit losses	40.9		26.3		4.8		72.0
Provision for credit losses deferred for future recovery or refund	52.5		35.8		—		88.3
Write-offs charged against the allowance	(131.6)		(85.4)		(6.6)		(223.6)
Recoveries of amounts previously written off	33.6		22.0		1.9		57.5
Balance at December 31, 2023	$	77.4	$	109.7	$	6.4	$	193.5

On a consolidated basis, there was a $5.8 million decrease in the allowance for credit losses during the year ended December 31, 2023, primarily related to lower customer energy costs (driven by the warmer weather during the fourth quarter of 2023 when compared to the same quarter in 2022 and lower natural gas prices), which contributed to a reduction in past due accounts receivable balances and a related decrease in the allowance for credit losses. Customer write-offs also contributed to the decrease in

the allowance for credit losses. After a customer is disconnected for a period of time without payment on their account, we will write off that customer balance.

(in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2022	$	84.0	$	105.5	$	8.8	$	198.3
Provision for credit losses	50.5		33.0		2.6		86.1
Provision for credit losses deferred for future recovery or refund	29.7		33.2		—		62.9
Write-offs charged against the allowance	(117.0)		(82.6)		(6.4)		(206.0)
Recoveries of amounts previously written off	34.8		21.9		1.3		58.0
Balance at December 31, 2022	$	82.0	$	111.0	$	6.3	$	199.3

On a consolidated basis, there was a $1.0 million increase in the allowance for credit losses during the year ended December 31, 2022. We believe that the high energy costs that customers were seeing, which were driven by high natural gas prices, contributed to higher past due accounts receivable balances and a related increase in the allowance for credit losses. The increase was substantially offset by customer write-offs related to collection practices returning to pre-pandemic levels, including the restoration of our ability to disconnect customers.

(in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2021	$	102.1	$	111.6	$	6.4	$	220.1
Provision for credit losses	46.4		25.6		3.7		75.7
Provision for credit losses deferred for future recovery or refund	(16.6)		3.5		—		(13.1)
Write-offs charged against the allowance	(74.8)		(52.5)		(2.5)		(129.8)
Recoveries of amounts previously written off	26.9		17.3		1.2		45.4
Balance at December 31, 2021	$	84.0	$	105.5	$	8.8	$	198.3

The allowance for credit losses decreased during the year ended December 31, 2021, primarily related to normal collection practices resuming in April 2021 for our Wisconsin utilities and in June 2021 for our Illinois utilities. Across all of our reportable segments, higher year-over-year natural gas prices drove an increase in gross accounts receivable balances, partially offsetting the decrease in the allowance for credit losses attributed to collection efforts.