Dispositions

Discontinued Operations

See Note 5, Cash and Cash Equivalents, for cash flow information related to discontinued operations.

Holding Company and Other Segment – Potential Sale of Combined Locks Energy Center (Combined Locks)

We are currently pursuing the sale of Combined Locks, a natural gas-fired co-generation facility located in Wisconsin. Combined Locks had $0.7 million of assets that were classified as held for sale on the balance sheets at March 31, 2015, and December 31, 2014, which included inventories and property, plant, and equipment. During each of the three months ended March 31, 2015, and 2014, we recorded after-tax losses of $0.1 million in discontinued operations related to Combined Locks.

IES Segment – Sale of IES Retail Energy Business

In November 2014, we sold IES's retail energy business to Exelon Generation Company, LLC (Exelon) for $331.8 million, which has been updated for a working capital adjustment made in the first quarter of 2015 and reflected in the tables below. As part of the stock purchase agreement, we provided guarantees expiring during the second quarter of 2015, which supported the IES retail energy business. See Note 12, Guarantees, for more information. We are providing certain administrative and operational services to Exelon during a transition period of up to 15 months after the sale date.

The sale of the retail energy business was the result of a previously announced shift in our strategy to focus on our regulated businesses. Therefore, its results of operations were classified as discontinued operations beginning in the fourth quarter of 2014.

The following table shows the carrying values of the major classes of assets and liabilities included in the sale:



	As of the Closing Date in
(Millions)	November 2014
Cash and cash equivalents	$	7.6
Accounts receivable and accrued unbilled revenues, net of reserves of $1.8	293.4
Inventories	52.2
Current assets from risk management activities	234.8
Other current assets	75.1
Property, plant, and equipment, net of accumulated depreciation of $16.6	4.5
Long-term assets from risk management activities	106.9
Other long-term assets	25.5
Total assets	$	800.0

Accounts payable	$	186.9
Current liabilities from risk management activities	169.7
Accrued taxes	0.8
Other current liabilities	6.7
Long-term liabilities from risk management activities	79.5
Other long-term liabilities	0.3
Total liabilities	$	443.9

Included in the sale were commodity contracts that did not meet the GAAP definition of derivative instruments and, therefore, were not reflected on the balance sheets. In accordance with GAAP, expected gains or losses related to nonderivative commodity contracts are not recognized until the contracts are settled.

The following table shows the components of discontinued operations related to the sale of the IES retail energy business recorded on the income statements for the three months ended March 31:



(Millions)	2015			2014
Revenues	$	—		$	1,289.6
Cost of sales	—			(1,234.8		)
Operating and maintenance expense	(1.2		)	(32.0		)
Depreciation and amortization expense	—			(0.7		)
Taxes other than income taxes	(0.2		)	(1.2		)
Miscellaneous income	0.1			0.2
Interest expense	—			(0.2		)
(Loss) income before taxes	(1.3		)	20.9
Benefit (provision) for income taxes	0.5			(7.9		)
Discontinued operations, net of tax	$	(0.8	)	$	13.0

Dispositions

Holding Company and Other Segment – Potential Sale of Certain PDI Solar Assets

In the first quarter of 2015, management began implementing a plan to sell certain solar assets owned by PDI. The potential sale of these assets meets the criteria in the accounting guidance to qualify as held for sale but does not meet the requirements to qualify as discontinued operations. The potential sale of these assets does not represent a shift in our corporate strategy and will not have a major effect on our operations and financial results. Therefore, the results of operations of the PDI solar assets will remain in continuing operations.

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



(Millions)	March 31, 2015		December 31, 2014
Property, plant, and equipment, net of accumulated depreciation of $22.1 and $21.1, respectively	$	31.1	$	32.1
Equity method investments	18.5		18.2
Other long-term assets	1.2		1.2
Total assets	$	50.8	$	51.5

Current liabilities	$	0.3	$	0.3
Deferred investment tax credits	4.7		5.0
Asset retirement obligations	1.1		1.1
Other long-term liabilities	7.5		7.4
Total liabilities	$	13.6	$	13.8

Electric Utility Segment – Sale of UPPCO

In August 2014, we sold all of the stock of UPPCO to Balfour Beatty Infrastructure Partners LP for $336.7 million. Following the sale, we are providing certain administrative and operational services to UPPCO during a transition period of 18 to 30 months. The sale of UPPCO was evaluated for accounting purposes prior to our early adoption of ASU 2014-08. UPPCO met the criteria in the accounting guidance to qualify as held for sale but did not meet the requirements to qualify as discontinued operations as WPS has significant continuing cash flows related to certain power purchase transactions with UPPCO that continued after the sale. Therefore, UPPCO's results of operations through the sale date remain in continuing operations.