C - Segment
Reporting
Wisconsin Energy,
a holding company with subsidiaries in utility and non-utility businesses,
has two reportable operating segments. Operating segments are defined
as components of an enterprise about which separate financial information
is available that is evaluated regularly in deciding how to allocate
resources or in assessing performance. Wisconsin Energy previously had
organized its electric, gas and steam utility operating segments based
upon how its principal subsidiary, Wisconsin Electric, organized its
segments. During 1999, Wisconsin Energy changed its reportable operating
segments due to an increase in non-utility energy assets and revenues.
Wisconsin Energy's reportable operating segments now include a utility
and a non-utility energy segment.
The reportable utility
energy segment includes Wisconsin Energy's two utility subsidiaries,
Wisconsin Electric and Edison Sault Electric Company. This segment derives
its revenues from electric, gas and steam operations. Electric operations
engage in the generation, transmission, distribution and sale of electric
energy in southeastern (including metropolitan Milwaukee), east central
and northern Wisconsin and in the Upper Peninsula of Michigan. Gas operations
engage in the purchase, distribution and sale of natural gas to retail
customers and the transportation of customer-owned gas in four service
areas in southeastern, east central, western and northern Wisconsin.
Steam operations engage in the production, distribution and sale of
steam to space heating and processing customers in the Milwaukee, Wisconsin
area.
The reportable non-utility
energy segment derives its revenues from activities including independent
power production and energy marketing, services and trading.
The following table
summarizes the reportable operating segments of Wisconsin Energy for
the years ended December 31.
(a) The accounting
policies of the operating segments are the same as those described in
the summary of significant accounting policies (see Note A).
(b)
Other includes non-utility real estate investment and development and
non-utility investments in recycling technology.
(c) Intersegment
revenues are not material.
(d) Interest income
and interest expense are not included in segment pretax operating income.
A reconciliation
of the totals reported for the operating segments to the applicable
line items in the financial statements is as follows:
(a) Other includes
non-utility real estate investment and development and non-utility investments
in recycling technology.
(b) Primarily venture
capital and other property and investments.
