FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2012

FAIR VALUE

Fair value of assets and liabilities measured on a recurring basis, categorized by level within the fair value hierarchy

	March 31, 2012
(Millions)	Level 1		Level 2		Level 3		Total
Risk Management Assets
Utility Segments
Natural gas contracts	$	—	$	5.5	$	—	$	5.5
Financial transmission rights (FTRs)	—		—		1.0		1.0
Petroleum product contracts	0.4		—		—		0.4
Nonregulated Segments
Natural gas contracts	41.5		90.9		11.1		143.5
Electric contracts	61.3		96.8		14.1		172.2
Foreign exchange contracts	—		0.2		—		0.2
Total Risk Management Assets	$	103.2	$	193.4	$	26.2	$	322.8
Risk Management Liabilities
Utility Segments
Natural gas contracts	$	1.6	$	52.9	$	—	$	54.5
FTRs	—		—		0.1		0.1
Coal contract	—		—		13.4		13.4
Nonregulated Segments
Natural gas contracts	47.7		93.2		0.2		141.1
Electric contracts	81.2		183.4		36.0		300.6
Foreign exchange contracts	0.2		—		—		0.2
Total Risk Management Liabilities	$	130.7	$	329.5	$	49.7	$	509.9

	December 31, 2011
(Millions)	Level 1		Level 2		Level 3		Total
Risk Management Assets
Utility Segments
Natural gas contracts	$	0.1	$	9.1	$	—	$	9.2
FTRs	—		—		2.3		2.3
Petroleum product contracts	0.1		—		—		0.1
Nonregulated Segments
Natural gas contracts	50.7		104.1		8.7		163.5
Electric contracts	41.2		71.2		3.9		116.3
Foreign exchange contracts	—		0.2		—		0.2
Total Risk Management Assets	$	92.1	$	184.6	$	14.9	$	291.6
Risk Management Liabilities
Utility Segments
Natural gas contracts	$	5.5	$	39.2	$	—	$	44.7
FTRs	—		—		0.1		0.1
Coal contract	—		—		6.9		6.9
Nonregulated Segments
Natural gas contracts	55.0		105.6		0.4		161.0
Electric contracts	54.2		131.1		15.4		200.7
Foreign exchange contracts	0.2		—		—		0.2
Total Risk Management Liabilities	$	114.9	$	275.9	$	22.8	$	413.6

Schedule of transfers between the levels of the fair value hierarchy

Nonregulated Segments — Electric Contracts

	Three Months Ended March 31, 2012								Three Months Ended March 31, 2011
(Millions)	Level 1		Level 2			Level 3			Level 1		Level 2			Level 3
Transfers into Level 1 from	N/A		$	—		$	—		N/A		$	—		$	—
Transfers into Level 2 from	$	—	N/A			(0.1		)	$	—	N/A			(2.4		)
Transfers into Level 3 from	—		(5.0		)	N/A			—		(5.4		)	N/A

Nonregulated Segments — Natural Gas Contracts

	Three Months Ended March 31, 2012						Three Months Ended March 31, 2011
(Millions)	Level 1		Level 2		Level 3		Level 1		Level 2			Level 3
Transfers into Level 1 from	N/A		$	—	$	—	N/A		$	—		$	—
Transfers into Level 2 from	$	—	N/A		1.3		$	—	N/A			0.4
Transfers into Level 3 from	—		2.4		N/A		—		(0.1		)	N/A

Significant internally-developed unobservable inputs used in the valuation of derivatives categorized in Level 3

	Fair Value (Millions)
	Assets		Liabilities		Valuation Technique	Unobservable Input	Average or Range
Utility Segments
FTRs	$	1.0	$	0.1	Market-based	Forward market prices ($/megawatt-month) (1)	170.36
Coal contract	—		13.4		Market-based	Forward market prices ($/ton) (2)	14.6 –15.1
Nonregulated Segments
Natural gas contracts	11.1		0.2		Market-based	Forward market prices ($/dekatherm) (3)	(0.04) –1.54
						Probability of default	11.62% - 50.99%
Electric contracts	14.1		36.0		Market-based	Forward market prices ($/megawatt-hours) (3)	(6.05) - 9.79
						Option volatilities (4)	19.99% - 59.51%
						Monthly curve shaping (5)	(15.03)% - (11.57)%

(1)	Represents forward market prices developed using historical cleared pricing data from MISO used in the valuation of FTRs.
(2)	Represents third-party forward market pricing used in the valuation of our coal contract.
(3)	Represents unobservable basis spreads developed using historical settled prices that are applied to observable market prices at various natural gas and electric locations, as well as unobservable adjustments made to extend observable market prices beyond the quoted period through the end of the transaction term.
(4)	Represents the range of volatilities used in the valuation of options.
(5)	Represents adjustments made to forward market price curves to disaggregate average prices of multiple periods into discrete monthly prices.

Schedule of the reconciliation of changes in Level 3 fair value measurements

Three Months Ended March 31, 2012	Nonregulated Segments						Utility Segments
(Millions)	Natural Gas			Electric			FTRs			Coal Contract			Total
Balance at the beginning of the period	$	8.3		$	(11.5	)	$	2.2		$	(6.9	)	$	(7.9	)
Net realized and unrealized gains (losses) included in earnings	4.1			(7.7		)	0.5			—			(3.1		)
Net unrealized (losses) gains recorded as regulatory assets or liabilities	—			—			0.1			(5.8		)	(5.7		)
Purchases	—			1.1			—			—			1.1
Sales	—			—			(0.1		)	—			(0.1		)
Settlements	(2.6		)	1.1			(1.8		)	(0.7		)	(4.0		)
Net transfers into Level 3	2.4			(5.0		)	—			—			(2.6		)
Net transfers out of Level 3	(1.3		)	0.1			—			—			(1.2		)
Balance at the end of the period	$	10.9		$	(21.9	)	$	0.9		$	(13.4	)	$	(23.5	)
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period	$	4.1		$	(7.7	)	$	—		$	—		$	(3.6	)

Three Months Ended March 31, 2011	Nonregulated Segments						Utility Segments
(Millions)	Natural Gas			Electric			FTRs			Coal Contract			Total
Balance at the beginning of the period	$	30.2		$	(14.9	)	$	2.9		$	2.5		$	20.7
Net realized and unrealized gains (losses) included in earnings	4.0			(2.9		)	0.1			—			1.2
Net unrealized losses recorded as regulatory assets or liabilities	—			—			(1.1		)	(7.0		)	(8.1		)
Net unrealized losses included in other comprehensive loss	—			(0.7		)	—			—			(0.7		)
Purchases	—			0.3			—			—			0.3
Sales	—			—			(0.1		)	—			(0.1		)
Settlements	(15.2		)	2.5			(0.8		)	(0.4		)	(13.9		)
Net transfers into Level 3	(0.1		)	(5.4		)	—			—			(5.5		)
Net transfers out of Level 3	(0.4		)	2.4			—			—			2.0
Balance at the end of the period	$	18.5		$	(18.7	)	$	1.0		$	(4.9	)	$	(4.1	)
Net unrealized gains (losses) included in earnings related to instruments still held at the end of the period	$	4.0		$	(2.9	)	$	—		$	—		$	1.1

Schedule of carrying value and estimated fair value of financial instruments

	March 31, 2012				December 31, 2011
(Millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt	$	2,122.1	$	2,272.2	$	2,122.0	$	2,281.5
Preferred stock	51.1		50.9		51.1		51.8