Dispositions

Dispositions at Electric Utility Segment

Pending Sale of UPPCO

In January 2014, we reached a definitive agreement to sell all of the stock of UPPCO to Balfour Beatty Infrastructure Partners LP (BBIP) for approximately $298.8 million. This price is subject to adjustments for various items, including working capital, pension contributions, and the reimbursement of any capital expenditures made by UPPCO in 2014 prior to the sale. BBIP approached us in early 2013 about purchasing UPPCO, and we came to an agreement in January 2014 that was approved by our Board of Directors. The transaction is subject to state and federal regulatory approvals and is expected to close later in 2014. Following the sale, IBS will provide certain administrative and operational services to UPPCO during a transition period of 18 to 30 months.

The pending sale of UPPCO does not meet the requirements under the accounting guidance to qualify as discontinued operations as WPS will have significant continuing cash flows related to certain power purchase transactions that will continue with UPPCO after the sale.

The following table shows the carrying values of the major classes of assets and liabilities related to UPPCO classified as held for sale on the balance sheets:



(Millions)	March 31, 2014		December 31, 2013
Current assets	$	27.2	$	26.5
Property, plant, and equipment, net of accumulated depreciation of $90.2 and $88.9, respectively	193.2		193.8
Other long-term assets	65.6		51.6
Total assets	$	286.0	$	271.9

Current liabilities	$	12.0	$	16.7
Long-term liabilities	24.7		32.4
Total liabilities	$	36.7	$	49.1

In addition to the amounts above, intercompany payables of $2.0 million and $1.6 million at March 31, 2014, and December 31, 2013, respectively, will be included in the sale. These balances were eliminated during consolidation and relate to certain power purchase transactions that will continue with WPS after the sale, as discussed above.

Discontinued Operations at Holding Company and Other Segment

During the three months ended March 31, 2013, we recorded $6.0 million of after-tax gains in discontinued operations at the holding company and other segment. In 2013, we remeasured uncertain tax positions included in our liability for unrecognized tax benefits after effectively settling a certain state income tax examination. We reduced the provision for income taxes related to this remeasurement.

Discontinued Operations at IES Segment

Potential Sale of Combined Locks Energy Center

IES is currently pursuing the sale of the Combined Locks Energy Center (Combined Locks), a natural gas-fired co-generation facility located in Wisconsin, as part of its long-term energy asset strategy.

Combined Locks had $0.7 million of assets that were classified as held for sale on the balance sheets at March 31, 2014, and December 31, 2013, which included inventories and property, plant, and equipment. During each of the three months ended March 31, 2014, and 2013, IES recorded after-tax losses of $0.1 million in discontinued operations related to Combined Locks.

Sale of WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC

In March 2013, WPS Empire State, Inc., a subsidiary of IES, sold all of the membership interests of WPS Beaver Falls Generation, LLC (Beaver Falls) and WPS Syracuse Generation, LLC (Syracuse), both of which owned natural gas-fired generation plants located in the state of New York. During the three months ended March 31, 2013, IES recorded after-tax earnings of $0.2 million in discontinued operations related to Beaver Falls and Syracuse.