RISK MANAGEMENT ACTIVITIES

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

RISK MANAGEMENT ACTIVITIES

The following tables show our assets and liabilities from risk management activities:

		September 30, 2013
(Millions)	Balance Sheet Presentation *	Assets from Risk Management Activities		Liabilities from Risk Management Activities
Utility Segments
Nonhedge derivatives
Natural gas contracts	Current	$	2.2	$	5.4
Natural gas contracts	Long-term	0.5		0.6
Financial transmission rights (FTRs)	Current	3.4		0.4
Petroleum product contracts	Current	—		0.2
Coal contracts	Current	—		2.6
Coal contracts	Long-term	1.5		0.1
Nonregulated Segments
Nonhedge derivatives
Natural gas contracts	Current	48.9		37.6
Natural gas contracts	Long-term	24.6		14.6
Electric contracts	Current	100.4		111.3
Electric contracts	Long-term	31.5		44.3
	Current	154.9		157.5
	Long-term	58.1		59.6
Total		$	213.0	$	217.1

*   We classify assets and liabilities from risk management activities as current or long-term based upon the maturities of the underlying contracts.

		December 31, 2012
(Millions)	Balance Sheet Presentation *	Assets from Risk Management Activities		Liabilities from Risk Management Activities
Utility Segments
Nonhedge derivatives
Natural gas contracts	Current	$	2.5	$	14.0
Natural gas contracts	Long-term	0.9		0.8
FTRs	Current	2.1		0.1
Petroleum product contracts	Current	0.2		—
Coal contracts	Current	0.3		4.7
Coal contracts	Long-term	2.2		4.3
Cash flow hedges
Natural gas contracts	Current	—		0.4
Nonregulated Segments
Nonhedge derivatives
Natural gas contracts	Current	51.7		48.5
Natural gas contracts	Long-term	11.5		7.6
Electric contracts	Current	88.6		114.2
Electric contracts	Long-term	30.7		45.7
	Current	145.4		181.9
	Long-term	45.3		58.4
Total		$	190.7	$	240.3

*   We classify assets and liabilities from risk management activities as current or long-term based upon the maturities of the underlying contracts.

The following tables show the potential effect on our financial position of netting arrangements for recognized derivative assets and liabilities:

	September 30, 2013
(Millions)	Gross Amount		Potential Effects of Netting, Including Cash Collateral		Net Amount
Derivative assets subject to master netting or similar arrangements
Utility segments	$	5.9	$	2.3	$	3.6
Nonregulated segments	205.4		119.2		86.2
Total	211.3		121.5		89.8
Derivative assets not subject to master netting or similar arrangements	1.7				1.7
Total risk management assets	$	213.0			$	91.5
Derivative liabilities subject to master netting or similar arrangements
Utility segments	$	6.6	$	2.7	$	3.9
Nonregulated segments	207.1		145.2		61.9
Total	213.7		147.9		65.8
Derivative liabilities not subject to master netting or similar arrangements	3.4				3.4
Total risk management liabilities	$	217.1			$	69.2

	December 31, 2012
(Millions)	Gross Amount		Potential Effects of Netting, Including Cash Collateral		Net Amount
Derivative assets subject to master netting or similar arrangements
Utility segments	$	5.7	$	3.0	$	2.7
Nonregulated segments	182.5		145.4		37.1
Total	188.2		148.4		39.8
Derivative assets not subject to master netting or similar arrangements	2.5				2.5
Total risk management assets	$	190.7			$	42.3
Derivative liabilities subject to master netting or similar arrangements
Utility segments	$	15.3	$	3.8	$	11.5
Nonregulated segments	215.4		159.8		55.6
Total	230.7		163.6		67.1
Derivative liabilities not subject to master netting or similar arrangements	9.6				9.6
Total risk management liabilities	$	240.3			$	76.7

Our master netting and similar arrangements have conditional rights of setoff that can be enforced under a variety of situations, including counterparty default or credit rating downgrade below investment grade. We have trade receivables and trade payables, subject to master netting or similar arrangements, that are not included in the above table. These amounts may offset (or conditionally offset) the net amounts presented in the above table.

Financial collateral received or provided is restricted to the extent that it is required per the terms of the related agreements. The following table shows our cash collateral positions:

(Millions)	September 30, 2013		December 31, 2012
Cash collateral provided to others:
Related to contracts under master netting or similar arrangements	$	60.0	$	39.9
Other	1.1		1.1
Cash collateral received from others related to contracts under master netting or similar arrangements *	—		0.2

*   Reflected in other current liabilities on the balance sheets.

Certain of our derivative and nonderivative commodity instruments contain provisions that could require "adequate assurance" in the event of a material change in our creditworthiness, or the posting of additional collateral for instruments in net liability positions, if triggered by a decrease in credit ratings. The following table shows the aggregate fair value of all derivative instruments with specific credit risk-related contingent features that were in a liability position:

(Millions)	September 30, 2013		December 31, 2012
Integrys Energy Services	$	83.3	$	108.9
Utility segments	5.2		14.0

If all of the credit risk-related contingent features contained in commodity instruments (including derivatives, nonderivatives, normal purchase and normal sales contracts, and applicable payables and receivables) had been triggered, our collateral requirement would have been as follows:

(Millions)	September 30, 2013		December 31, 2012
Collateral that would have been required:
Integrys Energy Services	$	185.4	$	173.8
Utility segments	2.2		10.1
Collateral already satisfied:
Integrys Energy Services — Letters of credit	4.5		3.2
Collateral remaining:
Integrys Energy Services	180.9		170.6
Utility segments	2.2		10.1

Utility Segments

Non-Hedge Derivatives

Utility derivatives include natural gas purchase contracts, coal purchase contracts, financial derivative contracts (futures, options, and swaps), and FTRs used to manage electric transmission congestion costs. Both the electric and natural gas utility segments use futures, options, and swaps to manage the risks associated with the market price volatility of natural gas supply costs, and the costs of gasoline and diesel fuel used by utility vehicles. The electric utility segment also uses oil futures and options to manage price risk related to coal transportation.

The utilities had the following notional volumes of outstanding derivative contracts:

	September 30, 2013			December 31, 2012
	Purchases	Sales	Other Transactions	Purchases	Sales	Other Transactions
Natural gas (millions of therms)	1,104.1	1.7	N/A	1,072.6	0.1	N/A
FTRs (millions of kilowatt-hours)	N/A	N/A	5,858.1	N/A	N/A	4,057.2
Petroleum products (barrels)	76,822.0	9,000.0	N/A	62,811.0	—	N/A
Coal (millions of tons)	5.1	N/A	N/A	5.1	N/A	N/A

The table below shows the unrealized gains (losses) recorded related to derivative contracts at the utilities:

		Three Months Ended September 30						Nine Months Ended September 30
(Millions)	Financial Statement Presentation	2013			2012			2013			2012
Natural gas	Balance Sheet — Regulatory assets (current)	$	(0.5	)	$	10.2		$	6.9		$	22.9
Natural gas	Balance Sheet — Regulatory assets (long-term)	1.8			3.8			1.6			7.7
Natural gas	Balance Sheet — Regulatory liabilities (current)	(0.4		)	(3.4		)	(0.2		)	(2.9		)
Natural gas	Balance Sheet — Regulatory liabilities (long-term)	—			0.8			(0.3		)	1.3
Natural gas	Income Statement — Utility cost of fuel, natural gas, and purchased power	—			0.1			—			0.2
Natural gas	Income Statement — Operating and maintenance expense	(0.1		)	0.1			(0.2		)	0.1
FTRs	Balance Sheet — Regulatory assets (current)	0.8			—			—			(0.4		)
FTRs	Balance Sheet — Regulatory liabilities (current)	(0.2		)	(0.2		)	(0.3		)	0.5
Petroleum	Balance Sheet — Regulatory assets (current)	0.1			0.2			—			0.1
Petroleum	Balance Sheet — Regulatory liabilities (current)	—			0.1			—			0.1
Petroleum	Income Statement — Operating and maintenance expense	(0.2		)	0.1			(0.2		)	0.1
Coal	Balance Sheet — Regulatory assets (current)	(0.6		)	0.7			2.1			(2.5		)
Coal	Balance Sheet — Regulatory assets (long-term)	0.2			(0.1		)	4.2			0.1
Coal	Balance Sheet — Regulatory liabilities (current)	—			—			(0.3		)	—
Coal	Balance Sheet — Regulatory liabilities (long-term)	1.5			—			(0.7		)	—

Nonregulated Segments

Nonhedge Derivatives

Integrys Energy Services enters into derivative contracts such as futures, forwards, options, and swaps that are used to manage commodity price risk primarily associated with retail electric and natural gas customer contracts.

Integrys Energy Services had the following notional volumes of outstanding derivative contracts:

	September 30, 2013		December 31, 2012
(Millions)	Purchases	Sales	Purchases	Sales
Commodity contracts
Natural gas (therms)	1,108.5	1,011.8	782.0	679.0
Electric (kilowatt-hours)	50,956.9	32,059.6	54,127.6	31,809.6
Foreign exchange contracts (Canadian dollars)	—	—	0.4	0.4

Gains (losses) related to derivative contracts are recognized currently in earnings, as shown in the table below:

		Three Months Ended September 30						Nine Months Ended September 30
(Millions)	Income Statement Presentation	2013			2012			2013			2012
Natural gas	Nonregulated revenue	$	(21.1	)	$	(4.4	)	$	16.1		$	7.0
Natural gas	Nonregulated cost of sales	25.0			—			(9.5		)	—
Natural gas	Nonregulated revenue (reclassified from accumulated OCI) *	—			(0.1		)	(0.2		)	(1.6		)
Electric	Nonregulated revenue	36.0			49.1			22.4			(10.5		)
Electric	Nonregulated cost of sales	(6.6		)	—			2.1			—
Electric	Nonregulated revenue (reclassified from accumulated OCI) *	(0.2		)	(1.9		)	(3.2		)	(3.3		)
Total		$	33.1		$	42.7		$	27.7		$	(8.4	)

* Represents amounts reclassified from accumulated OCI related to cash flow hedges that were dedesignated in prior periods.

In the next 12 months, insignificant losses related to discontinued cash flow hedges of natural gas and electric contracts are expected to be recognized in earnings as the forecasted transactions occur. These amounts are expected to be offset by the settlement of the related nonderivative customer contracts.