Item 2. PROPERTIES

We own our principal properties outright. However, the major portion of our electric utility distribution lines, steam utility distribution mains, and natural gas utility distribution mains and services are located on or under streets and highways, on land owned by others, and are generally subject to granted easements, consents, or permits.

A. REGULATED

Electric Facilities

The following table summarizes information on our electric generation facilities, including owned and jointly owned facilities, as of December 31, 2020:

(1) Capacity for our electric generation facilities, other than wind and solar generating facilities, is based on rated capacity, which is the net power output under average operating conditions with equipment in an average state of repair as of a given month in a given year. Values are primarily based on the net dependable expected capacity ratings for summer 2021 established by tests and may change slightly from year to year. The summer period is the most relevant for capacity planning purposes. This is a result of continually reaching demand peaks in the summer months, primarily due to air conditioning demand. Capacity for wind generating facilities is based on nameplate capacity, which is the amount of energy a turbine should produce at optimal wind speeds. Capacity for solar generating facilities is based on nameplate capacity, which is the maximum output that a generator should produce at continuous full power.

(2) These facilities are jointly owned by WPS and various other utilities. The capacity indicated for each of these units is equal to WPS's portion of total plant capacity based on its percent of ownership.

• Wisconsin Power and Light Company, an unaffiliated utility, operates the Columbia units. WPS holds a 27.5% ownership interest in Columbia.

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• WPS operates the Weston 4 facility and holds a 70.0% ownership interest in this facility. Dairyland Power Cooperative, an unaffiliated energy cooperative, holds the remaining 30.0% interest.

• Two Creeks is jointly owned by WPS and an unaffiliated utility. WPS holds a 66.7% ownership interest in this facility.

• WPS, along with two other unaffiliated utilities, owns Forward Wind Energy Center. WPS holds a 44.6% ownership interest in this facility and the unaffiliated utilities own the remaining 55.4%. See Note 2, Acquisitions, for more information on the Forward Wind Energy Center acquisition.

(3) This facility is jointly owned by We Power and two other unaffiliated entities. Our share of capacity is equal to We Power's ownership interest of 83.34%.

(4) These facilities are part of the Company's non-utility energy infrastructure segment. See B. Non-Utility Energy Infrastructure Segment below.

(5) All of our hydroelectric facilities follow FERC guidelines and/or regulations.

(6) WRPC owns and operates the Castle Rock and Petenwell units. WPS holds a 50.0% ownership interest in WRPC and is entitled to 50.0% of the total capacity at Castle Rock and Petenwell. WPS's share of capacity for Castle Rock and Petenwell is 7.0 MW and 10.3 MW, respectively.

(7) WE has a biomass power plant that uses wood waste and wood shavings to produce electric power as well as steam to support the paper mill's operations. Fuel for the power plant is supplied by both the paper mill and through contracts with biomass suppliers. The plant also has the ability to burn natural gas if wood waste and wood shavings are not available.

As of December 31, 2020, we operated approximately 36,100 miles of overhead distribution lines and approximately 34,900 miles of underground distribution cable, as well as approximately 450 electric distribution substations and approximately 507,900 line transformers.

Natural Gas Facilities

At December 31, 2020, our natural gas properties were located in Illinois, Wisconsin, Minnesota, and Michigan, and consisted of the following:

• Approximately 50,300 miles of natural gas distribution mains,

• Approximately 1,100 miles of natural gas transmission mains,

• Approximately 2.3 million natural gas lateral services,

• Approximately 500 natural gas distribution and transmission gate stations,

• Approximately 68.2 Bcf of working gas capacities in underground natural gas storage fields:

◦Bluewater, 26.5 Bcf of fields located in southeastern Michigan,

◦Manlove, a 38.8 Bcf field located in central Illinois,

◦Partello, a 2.9 Bcf field located in southern Michigan,

• A 2.0 Bcf LNG plant located in central Illinois,

• A peak-shaving facility that can store the equivalent of approximately 80 MDth in liquefied petroleum gas located in Illinois,

• Peak propane air systems providing approximately 2,960 Dth per day, and

• LNG storage plants with a total send-out capability of 73,600 Dth per day.

Our natural gas distribution and gas storage systems included distribution mains and transmission mains connected to the pipeline transmission systems of Alliance Pipeline, ANR Pipeline Company, Centra Pipelines, Consumers Energy, Enbridge Gas, Great Lakes Transmission Company, Guardian Pipeline L.L.C., Kinder Morgan Illinois Pipeline, Michigan Consolidated Gas Company, Midwestern Gas Pipeline Company, Natural Gas Pipeline Company of America, Nicor Gas, Northern Border Pipeline Company, Northern Natural Gas Company, Panhandle Gas Transmission, Trunkline Gas Pipeline, Vector Pipeline Company, and Viking Gas Transmission. Our LNG storage plants convert and store, in liquefied form, natural gas received during periods of low consumption.

We also own office buildings, natural gas regulating and metering stations, and major service centers, including garage and warehouse facilities, in certain communities we serve. Where distribution lines and services and natural gas distribution mains and services occupy private property, we have in some, but not all instances, obtained consents, permits, or easements for these installations from the apparent owners or those in possession of those properties, generally without an examination of ownership records or title.

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Steam Facilities

As of December 31, 2020, the steam system supplied by the VAPP consisted of approximately 40 miles of both high pressure and low pressure steam piping, approximately four miles of walkable tunnels, and other pressure regulating equipment.

General

Substantially all of PGL's and NSG's properties are subject to the lien of the respective company's mortgage indenture for the benefit of bondholders.

B. NON-UTILITY ENERGY INFRASTRUCTURE SEGMENT

The non-utility energy infrastructure segment includes We Power, Bluewater, and WECI. We Power and Bluewater are considered non-utility energy infrastructure operations, however, their facilities are shown in the regulated section. We Power owns and leases generating facilities to WE. We Power's share of the ERGS units and both PWGS units are being leased to WE under long-term leases. Bluewater provides natural gas storage and hub services primarily to WE, WPS, and WG, and also provides these same services to several unaffiliated companies. WECI has ownership interests in five wind generating facilities.

The following table summarizes information on WECI's wind generating facilities as of December 31, 2020:

(1) Nameplate capacity is the amount of energy a turbine should produce at optimal wind speeds.

(2) In January 2019, WECI completed the acquisition of an 80% ownership interest in Upstream. In February 2020, WECI agreed to acquire an additional 10% ownership interest in this wind park. See Note 2, Acquisitions, for more information.

(3) In August 2018, WECI completed the acquisition of an 80% ownership interest in Bishop Hill III. In December 2018, WECI acquired an additional 10% ownership interest in this wind park. See Note 2, Acquisitions, for more information.

(4) In December 2018, WECI completed the acquisition of an 80% ownership interest in Coyote Ridge. See Note 2, Acquisitions, for more information.

(5) In December 2020, WECI completed the acquisition of a 90% ownership interest in Blooming Grove. See Note 2, Acquisitions, for more information.

(6) In December 2020, WECI completed the acquisition of an 85% ownership interest in Tatanka Ridge, which achieved commercial operation on January 5, 2021. See Note 2, Acquisitions, for more information.

In August 2019, WECI signed an agreement to acquire an 80% ownership interest in Thunderhead, a 300 MW wind generating facility under construction in Antelope and Wheeler counties in Nebraska. In February 2020, WECI agreed to acquire an additional 10% ownership interest in this wind park. See Note 2, Acquisitions, for more information.