RISK MANAGEMENT ACTIVITIES

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

RISK MANAGEMENT ACTIVITIES

Risk Management Activities

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

		December 31, 2013
(Millions)	Balance Sheet Presentation	Assets from Risk Management Activities		Liabilities from Risk Management Activities
Utility Segments
Nonhedge derivatives
Natural gas contracts	Current	$	8.3	$	1.0
Natural gas contracts	Long-term	1.8		0.1
Financial transmission rights (FTRs)	Current	2.1		0.3
Petroleum product contracts	Current	0.1		—
Coal contracts	Current	—		1.9
Coal contracts	Long-term	0.2		0.8
Nonregulated Segments
Nonhedge derivatives
Natural gas contracts	Current	57.6		42.9
Natural gas contracts	Long-term	29.5		18.6
Electric contracts	Current	172.0		117.7
Electric contracts	Long-term	43.9		43.3
	Current	240.1		163.8
	Long-term	75.4		62.8
Total		$	315.5	$	226.6

		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

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

	December 31, 2013
(Millions)	Gross Amount		Potential Effects of Netting, Including Cash Collateral		Net Amount
Derivative assets subject to master netting or similar arrangements
Utility segments	$	12.3	$	2.1	$	10.2
Nonregulated segments	301.9		178.1		123.8
Total	314.2		180.2		134.0
Derivative assets not subject to master netting or similar arrangements	1.3				1.3
Total risk management assets	$	315.5			$	135.3
Derivative liabilities subject to master netting or similar arrangements
Utility segments	$	1.4	$	1.4	$	—
Nonregulated segments	222.1		178.1		44.0
Total	223.5		179.5		44.0
Derivative liabilities not subject to master netting or similar arrangements	3.1				3.1
Total risk management liabilities	$	226.6			$	47.1

	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)	December 31, 2013		December 31, 2012
Cash collateral provided to others:
Related to contracts under master netting or similar arrangements	$	37.6	$	39.9
Other	1.1		1.1
Cash collateral received from others related to contracts under master netting or similar arrangements	0.7		0.2

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)	December 31, 2013		December 31, 2012
Utility segments	$	0.6	$	14.0
Nonregulated segments	76.7		108.9

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)	December 31, 2013		December 31, 2012
Collateral that would have been required:
Utility segments	$	—	$	10.1
Nonregulated segments	197.6		173.8
Collateral already satisfied:
Nonregulated segments — Letters of credit	4.5		3.2
Collateral remaining:
Utility segments	—		10.1
Nonregulated segments	193.1		170.6

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. 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:

	December 31, 2013			December 31, 2012
(Millions, except barrels)	Purchases	Sales	Other Transactions	Purchases	Sales	Other Transactions
Natural gas (therms)	3,124.8	29.3	N/A	1,072.6	0.1	N/A
FTRs (kilowatt-hours)	N/A	N/A	3,633.1	N/A	N/A	4,057.2
Petroleum products (barrels)	102,811.0	14,000.0	N/A	62,811.0	—	N/A
Coal (tons)	4.8	—	N/A	5.1	—	N/A

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

(Millions)	Financial Statement Presentation	2013			2012			2011
Natural gas	Balance Sheet — Regulatory assets (current)	$	13.4		$	24.6		$	(11.3	)
Natural gas	Balance Sheet — Regulatory assets (long-term)	2.3			8.3			(7.6		)
Natural gas	Balance Sheet — Regulatory liabilities (current)	4.6			(7.8		)	8.4
Natural gas	Balance Sheet — Regulatory liabilities (long-term)	0.3			0.3			—
Natural gas	Income Statement — Utility cost of fuel, natural gas, and purchased power	—			0.2			—
Natural gas	Income Statement — Operating and maintenance expense	0.1			—			—
FTRs	Balance Sheet — Regulatory assets (current)	0.1			0.1			(0.4		)
FTRs	Balance Sheet — Regulatory liabilities (current)	(0.4		)	0.1			(1.3		)
Petroleum	Balance Sheet — Regulatory assets (current)	—			0.1			(0.1		)
Petroleum	Balance Sheet — Regulatory liabilities (current)	0.1			—			—
Petroleum	Income Statement — Operating and maintenance expense	0.1			—			(0.1		)
Coal	Balance Sheet — Regulatory assets (current)	(0.9		)	(2.2		)	(1.3		)
Coal	Balance Sheet — Regulatory assets (long-term)	3.5			0.1			(4.4		)
Coal	Balance Sheet — Regulatory liabilities (current)	(0.2		)	0.3			—
Coal	Balance Sheet — Regulatory liabilities (long-term)	(2.0		)	2.2			(3.7		)

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:

	December 31, 2013		December 31, 2012
(Millions)	Purchases	Sales	Purchases	Sales
Commodity
Natural gas (therms)	1,199.9	1,065.4	782.0	679.0
Electric (kilowatt-hours)	49,186.3	30,813.8	54,127.6	31,809.6
Foreign exchange (Canadian dollars)	—	—	0.4	0.4

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

(Millions)	Income Statement Presentation	2013			2012			2011
Natural gas	Nonregulated revenue	$	36.7		$	6.8		$	14.0
Natural gas	Nonregulated cost of sales	(27.6		)	—			—
Natural gas	Nonregulated revenue (reclassified from accumulated OCI) *	(0.3		)	(2.0		)	(2.3		)
Electric	Nonregulated revenue	73.6			(2.0		)	(79.0		)
Electric	Nonregulated cost of sales	10.8			—			—
Electric	Nonregulated revenue (reclassified from accumulated OCI) *	(3.4		)	(4.3		)	(1.7		)
Total		$	89.8		$	(1.5	)	$	(69.0	)

* Represents amounts reclassified from accumulated other comprehensive loss (OCI) related to cash flow hedges that were dedesignated in prior periods.

In the next 12 months, insignificant gains related to discontinued cash flow hedges of 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.

Cash Flow Hedges

Prior to July 1, 2011, Integrys Energy Services designated derivative contracts such as futures, forwards, and swaps as accounting hedges under GAAP. These contracts were used to manage commodity price risk associated with customer contracts.

The tables below show the amounts related to cash flow hedges recorded in OCI and in earnings:

	Unrealized Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion)
(Millions)	2011
Natural gas contracts	$	(2.3	)
Electric contracts	3.8
Total	$	1.5

	Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
(Millions)	Income Statement Presentation	2013			2012			2011
Settled/Realized
Natural gas contracts	Nonregulated revenue	$	—		$	—		$	(9.3	)
Electric contracts	Nonregulated revenue	—			—			4.2
Interest rate swaps *	Interest expense	(1.1		)	(1.1		)	(1.1		)
Hedge Designation Discontinued
Natural gas contracts	Nonregulated revenue	—			—			(0.3		)
Interest rate swaps	Interest expense	—			—			(0.2		)
Total		$	(1.1	)	$	(1.1	)	$	(6.7	)

* In May 2010, we entered into interest rate swaps that were designated as cash flow hedges to hedge the variability in forecasted interest payments on a debt issuance. These swaps were terminated when the related debt was issued in November 2010. Amounts remaining in accumulated OCI are being reclassified to interest expense over the life of the related debt.

	Gain (Loss) Recognized in Income on Derivative Instruments (Ineffective Portion and Amount Excluded from Effectiveness Testing)
(Millions)	Income Statement Presentation	2011
Natural gas contracts	Nonregulated revenue	$	0.3
Electric contracts	Nonregulated revenue	(0.3		)
Total		$	—