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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2014
Accounting Policies [Abstract]  
Schedule of annual utility composite depreciation rates
Annual utility composite depreciation rates are shown below:
Annual Utility Composite Depreciation Rates
 
2014
 
2013
 
2012
MERC (1)
 
2.49
%
 
1.88
%
 
3.07
%
MGU (2)
 
2.65
%
 
1.93
%
 
2.71
%
NSG
 
2.44
%
 
2.44
%
 
2.43
%
PGL
 
3.20
%
 
3.19
%
 
3.16
%
WPS – Electric
 
2.73
%
 
2.79
%
 
2.87
%
WPS – Natural gas
 
2.17
%
 
2.19
%
 
2.21
%

(1)
The 2013 depreciation rate reflects the impact of a new depreciation study approved by the MPUC in July 2013. The rates were effective retroactive to January 2012. An approximate $2 million reduction in depreciation expense was recorded in 2013 related to the 2012 impact.

(2)  
The 2013 depreciation rate includes the impact of a $2.5 million reduction in depreciation expense that was recorded in the first quarter of 2013 as a result of the Michigan Court of Appeals order reversing the MPSC's previously ordered disallowance associated with the early retirement of certain MGU assets in 2010.
Schedule of total AFUDC
Total AFUDC was as follows for the years ended December 31:
 
 
2014
 
2013
 
2012
Allowance for equity funds used during construction
 
$
12.5

 
$
10.8

 
$
2.9

Allowance for borrowed funds used during construction
 
5.2

 
4.1

 
1.0