PROPERTY, PLANT, AND EQUIPMENT

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

Property, plant, and equipment consisted of the following utility, nonutility, and nonregulated assets at December 31:



(Millions)	2013		2012
Electric utility	$	3,558.9	$	3,095.8
Natural gas utility	5,428.5		5,050.8
Total utility plant	8,987.4		8,146.6
Less: Accumulated depreciation	3,160.9		3,006.1
Net	5,826.5		5,140.5
Construction work in progress	353.3		203.1
Plant to be retired, net *	14.4		—
Net utility plant	6,194.2		5,343.6

Nonutility plant	142.3		120.2
Less: Accumulated depreciation	81.6		72.3
Net	60.7		47.9
Construction work in progress	38.0		19.6
Net nonutility plant	98.7		67.5

Integrys Energy Services energy assets	109.8		92.0
Integrys Energy Services other	19.7		17.9
Other nonregulated	26.2		14.0
Total nonregulated property, plant, and equipment	155.7		123.9
Less: Accumulated depreciation	46.4		36.3
Net	109.3		87.6
Construction work in progress	8.3		3.2
Net nonregulated property, plant, and equipment	117.6		90.8

Total property, plant, and equipment	$	6,410.5	$	5,501.9

In connection with the WPS Consent Decree with the EPA, early retirement of the Weston 1, Pulliam 5, and Pulliam 6 generating units was probable at December 31, 2013. These units are currently included in rate base, and WPS continues to depreciate them on a straight-line basis using the composite depreciation rates approved by the PSCW. The amount presented above is net of accumulated depreciation. See Note 15, Commitments and Contingencies, for more information regarding the Consent Decree.

We evaluate property, plant, and equipment for impairment whenever indicators of impairment exist. During 2011, Integrys Energy Services recorded a pre-tax noncash impairment loss of $4.6 million related to its Winnebago Energy Center, a landfill-gas-to-electric facility. The impairment charge resulted from lower estimated future cash flows and was primarily driven by forward energy and capacity prices. The impairment charge was reported as part of operating and maintenance expense in the income statement. The fair value of the facility was determined primarily using the income approach, which was based on discounted cash flows that were derived from internal forecasts. These forecasts considered externally supplied forward energy and capacity pricing curves as well as renewable energy credits. Other assumptions included forecasted operating expenses, forecasted capital additions, anticipated working capital requirements, and the discount rate. The 7.5% discount rate used represented the estimated cost of capital for the facility and was also based upon the cash flow period used for the fair value assessment.

See Note 4, Discontinued Operations for additional impairment losses recorded in discontinued operations at Integrys Energy Services during 2012. The impairments were recorded on property and equipment either sold during 2012 or presented on the balance sheet as assets held for sale.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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