Leases (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of lease expense and supplemental cash flow information for leases

The components of lease expense and supplemental cash flow information related to our leases for the years ended December 31 are as follows:


(in millions)	2023			2022			2021
Finance lease expense
Amortization of right of use assets (1)	$	—		$	6.0		$	8.1
Interest on lease liabilities (2)	0.8			0.9			1.6
Operating lease expense (3)	4.7			6.1			3.4
Short-term lease expense (3)	1.2			0.9			0.2
Total lease expense	$	6.7		$	13.9		$	13.3

Other information

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	0.8		$	0.9		$	1.6
Operating cash flows from operating leases	6.8			5.7			5.3
Financing cash flows from finance leases	—			6.0			8.1

Non-cash activities:
Right of use assets obtained in exchange for finance lease liabilities (4)	$	32.8		$	57.6		$	73.6
Right of use assets obtained in exchange for operating lease liabilities	18.3			—			0.5

Weighted-average remaining lease term – finance leases	49.4 years			30.0 years			20.5 years
Weighted-average remaining lease term – operating leases	22.4 years			12.0 years			12.5 years

Weighted-average discount rate – finance lease (5)	5.3		%	3.9		%	2.4		%
Weighted average discount rate – operating leases (5)	5.8		%	3.4		%	3.4		%

(1) Amortization of right of use assets was included as a component of depreciation and amortization expense.

(2) Interest on lease liabilities was included as a component of interest expense.

(3) Operating and short-term lease expense were included as a component of other operation and maintenance expense.

(4) Amounts are net of any reductions to right of use assets and finance lease liabilities resulting from remeasurements.

(5) Because our leases do not provide an implicit rate of return, we used the fully collateralized incremental borrowing rates based upon information available for similarly rated companies in determining the present value of lease payments.

Schedule of finance and operating lease right of use assets and obligations

The following table summarizes our finance and operating lease right of use assets and obligations at December 31:


(in millions)	2023		2022		Balance Sheet Location
Right of use assets
Operating lease right of use assets, net	$	32.0	$	15.7	Other long-term assets

Finance lease right of use assets, net
Power purchase commitment (1)	$	—	$	71.8
Land leases – utility solar generation	132.7		102.4
Other	1.1		1.1
Total finance lease right of use assets, net (2)	$	133.8	$	175.3	Property, plant, and equipment, net

Lease obligations
Current operating lease liabilities	$	4.7	$	4.0	Other current liabilities

Long-term operating lease liabilities	$	38.8	$	25.4	Other long-term liabilities

Current finance lease liabilities
Power purchase commitment (1)	$	—	$	72.7	Current portion of long-term debt

Long-term finance lease liabilities
Land leases – utility solar generation	$	144.8	$	109.3
Other	1.1		1.2
Total long-term finance lease liabilities	$	145.9	$	110.5	Long-term debt

(1) Effective January 1, 2023, WE and WPS closed on the acquisition of Whitewater. See discussion above for more information.

(2) Amounts are net of accumulated amortization of $6.1 million and $146.3 million at December 31, 2023 and 2022, respectively.

Schedule of future minimum lease payments for operating and finance leases

Future minimum lease payments under our operating and finance leases and the present value of our net minimum lease payments as of December 31, 2023, were as follows:


(in millions)	Total Operating Leases		Land Leases - Utility Solar Generation		Other		Total Finance Leases
2024	$	6.4	$	4.7	$	0.1	$	4.8
2025	5.6		6.0		0.1		6.1
2026	5.8		6.1		0.1		6.2
2027	5.7		6.2		0.1		6.3
2028	5.5		6.4		0.1		6.5
Thereafter	71.0		465.8		2.5		468.3
Total minimum lease payments	100.0		495.2		3.0		498.2
Less: Interest	(56.5)		(350.4)		(1.9)		(352.3)
Present value of minimum lease payments	43.5		144.8		1.1		145.9
Less: Short-term lease liabilities	(4.7)		—		—		—
Long-term lease liabilities	$	38.8	$	144.8	$	1.1	$	145.9