GUARANTEES (Tables)

9 Months Ended

Sep. 30, 2014

The following table shows our outstanding guarantees:



	Total Amounts Committed		Expiration
(Millions)	at September 30, 2014		Less Than 1 Year		1 to 3 Years		Over 3 Years
Guarantees supporting commodity transactions of subsidiaries ⁽¹⁾	$	718.3	$	478.3	$	4.6	$	235.4
Standby letters of credit⁽²⁾	34.6		33.8		0.7		0.1
Surety bonds⁽³⁾	34.5		34.5		—		—
Other guarantees⁽⁴⁾	55.2		1.5		—		53.7
Total guarantees ⁽⁵⁾	$	842.6	$	548.1	$	5.3	$	289.2


⁽¹⁾	Consists of (a) $548.9 million, and $5.0 million to support the business operations of IES, and IBS, respectively, and (b) $119.0 million, $45.0 million, and $0.4 million related to natural gas supply at MERC, MGU, and ITF, respectively. These guarantees are not reflected on our balance sheets.

⁽²⁾

At our request or the request of our subsidiaries, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. This amount consists of $33.0 million issued to support IES’s operations, $1.6 million issued to support ITF, MERC, MGU, NSG, PGL, and WPS, along with $0.5 million issued to support UPPCO operations. These amounts are not reflected on our balance sheets. The $0.5 million of UPPCO letters of credit were canceled in October 2014. See Note 4, Dispositions, for more information on the sale of UPPCO.


⁽³⁾	Primarily for the construction and operation of compressed natural gas fueling stations, workers compensation self-insurance programs, and obtaining various licenses, permits, and rights-of-way. These guarantees are not reflected on our balance sheets.

⁽⁴⁾

Consists of (a) $35.0 million to support IES's future payment obligations related to its distributed solar generation projects. This guarantee is not reflected on our balance sheets; (b) $10.0 million related to the sale agreement for IES's Texas retail marketing business, which included a number of customary representations, warranties, and indemnification provisions. An insignificant liability was recorded related to the possible imposition of additional miscellaneous gross receipts tax in the event of a change in law or interpretation of the law; (c) $1.8 million related to the sale of WPS Beaver Falls Generation, LLC and WPS Syracuse Generation, LLC. IES guaranteed the buyer's performance under certain derivative contracts that the buyer assumed from WPS Empire State, Inc. in conjunction with the sale; (d) $2.4 million related to the performance of an operating and maintenance agreement by ITF; and (e) $6.0 million related to other indemnifications primarily for workers compensation coverage. The amounts discussed in items (c) through (e) above are not reflected on our balance sheets.


⁽⁵⁾	Consists of $586.0 million of guarantees that will be eliminated within six months after the sale of IES's retail energy business. See Note 4, Dispositions, for more information on the sale of IES's retail energy business. As of November 1, 2014, we assumed $41.6 million of guarantees from IES related to distributed solar generation projects.