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RISK MANAGEMENT ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2013
Risk management activities  
Assets and liabilities from 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
Potential effect of netting arrangements on financial position for recognized derivative assets and liabilities
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
Cash collateral positions
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
Derivatives with credit risk-related contingent features that were in a liability position
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
Collateral requirements related to credit-risk related contingent features in commodity instruments
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
Non-hedge derivatives | Utility segments
  
Risk management activities  
Notional volumes of outstanding derivative contracts
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
Unrealized gains (losses) related to derivatives
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
)
Non-hedge derivatives | Nonregulated segments
  
Risk management activities  
Notional volumes of outstanding derivative 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 derivatives
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.
Cash flow hedges | Nonregulated segments
  
Risk management activities  
Unrealized gain (loss) recorded in Other Comprehensive Income (Loss)
 
 
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 Other Comprehensive Loss into Income
 
 
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) recorded in Income (ineffective portion and amount excluded from effectiveness testing)
 
 
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
 
 
 
$
—