10q10k10q10k.net

What changed in WEC Energy Group's 10-K — 2023 vs 2024

vs

Paragraph-level year-over-year comparison of WEC Energy Group's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+777 added−652 removedSource: 10-K (2025-02-21) vs 10-K (2024-02-22)

Top changes in WEC Energy Group's 2024 10-K

777 paragraphs added · 652 removed · 541 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

138 edited+27 added−21 removed90 unchanged
Biggest changeWest Riverside is a commercially operational dual fueled combined cycle generation facility in Beloit, Wisconsin, and is operated by an unaffiliated utility. In addition, WPS filed a request with the PSCW in September 2023 to exercise a second option to acquire an additional 100 MWs of West Riverside's nameplate capacity.
Biggest changeNatural Gas-Fired Generation In May 2024, WE completed the acquisition of an add itional 100 MWs o f West Riverside's nameplate capacity, in the second of two option exercises. West Riverside is a commercially operational dual fueled combined cycle generation facility in Beloit, Wisconsin and is operated by an unaffiliated utility. 2024 Form 10-K 8 WEC Energy Group, Inc.
WECI completed the acquisition of an additional 10% of Samson I in January 2024, bringing its ownership interest in Samson I to 90.0%. See Note 2, Acquisitions, for more information.
WECI completed the acquisition of an additional 10.0% of Samson I in January 2024, bringing its ownership interest in Samson I to 90.0%. See Note 2, Acquisitions, for more information.
We set a target across our natural gas distribution operations to achieve net-zero methane emissions by the end of 2030. We plan to achieve our net-zero goal through an effort that includes both continuous operational improvements and equipment upgrades, as well as the use of RNG throughout our natural gas utility systems.
We set a target across our natural gas distribution operations to achieve net-zero methane emissions by the end of 2030. We plan to achieve our net-zero goal through an effort that includes continuous operational improvements and equipment upgrades, as well as the use of RNG throughout our natural gas utility systems.
Table of Contents Electric Commercial and Industrial Retail Customers We provide electric utility service to a diversified base of customers in industries such as metals and other manufacturing, paper, governmental, food products, and health services.
Table of Contents Electric Commercial and Industrial Retail Customers We provide electric utility service to a diversified base of customers in industries such as metals and other manufacturing, paper, governmental, food manufacturing, and health services.
Their hedging programs are reviewed by the ICC as part of the annual purchased gas adjustment reconciliation. They hedge between 25% and 50% of natural gas purchases, with a target of 37.5%.
Their hedging programs are reviewed by the ICC as part of the annual purchased gas adjustment reconciliation. They hedge between 25% and 50% of planned natural gas purchases, with a target of 37.5%.
WE, WPS, and WG have entered into long-term service agreements for approximately one-third of their combined natural gas storage needs with a wholly owned subsidiary of Bluewater. WEC Infrastructure LLC At December 31, 2023, our non-utility energy infrastructure segment included WECI's ownership interests in the renewable generating facilities reflected in the table below.
WE, WPS, and WG have entered into long-term service agreements for approximately one-third of their combined natural gas storage needs with a wholly owned subsidiary of Bluewater. WEC Infrastructure LLC At December 31, 2024, our non-utility energy infrastructure segment included WECI's ownership interests in the renewable generating facilities reflected in the table below.
We expect to achieve these goals by continuing to make operating 2023 Form 10-K 6 WEC Energy Group, Inc. Table of Contents refinements, retiring less efficient generating units, and executing our capital plan. Over the longer term, the target for our generation fleet is to be net carbon neutral by 2050.
We expect to achieve these goals by continuing to make operating 2024 Form 10-K 6 WEC Energy Group, Inc. Table of Contents refinements, retiring less efficient generating units, and executing our capital plan. Over the longer term, the target for our generation fleet is to be net carbon neutral by 2050.
Our wholly owned subsidiaries provide or invest in regulated natural gas and electricity, and renewable energy, as well as nonregulated renewable energy. We have an approximately 60% equity interest in ATC (an electric transmission company operating in Illinois, Michigan, Minnesota, and Wisconsin). At December 31, 2023, we had six reportable segments, which are discussed below.
Our wholly owned subsidiaries provide or invest in regulated natural gas and electricity, and renewable energy, as well as nonregulated renewable energy. We have an approximately 60% equity interest in ATC (an electric transmission company operating in Illinois, Michigan, Minnesota, and Wisconsin). At December 31, 2024, we had six reportable segments, which are discussed below.
Table of Contents • UMERC generates and distributes electric energy to customers, including one iron ore mine owned by Tilden, located in the Upper Peninsula of Michigan. Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2023, 2022, and 2021, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.
Table of Contents • UMERC generates and distributes electric energy to customers, including one iron ore mine owned by Tilden, located in the Upper Peninsula of Michigan. Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2024, 2023, and 2022, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.
See Note 1(d), Operating Revenues, for additional information on the significant mechanisms our utilities had in place during 2023 that allowed them to recover or refund changes in prudently incurred costs from rate case-approved amounts. Our utilities file periodic requests with their respective state commission for changes in retail rates.
See Note 1(d), Operating Revenues, for additional information on the significant mechanisms our utilities had in place during 2024 that allowed them to recover or refund changes in prudently incurred costs from rate case-approved amounts. Our utilities file periodic requests with their respective state commission for changes in retail rates.
(2) Includes hydroelectric, biomass, solar, and wind generation. Electric Generation Facilities Our generation portfolio is a mix of energy resources having different operating characteristics and fuel sources designed to balance providing energy that is stable, reliable, and affordable with environmental stewardship. We own 8,337 MWs of generation capacity, including wholly owned and jointly owned facilities.
(2) Includes hydroelectric, biomass, solar, and wind generation. Electric Generation Facilities Our generation portfolio is a mix of energy resources having different operating characteristics and fuel sources designed to balance providing energy that is stable, reliable, and affordable with environmental stewardship. We own 8,158 MWs of generation capacity, including wholly owned and jointly owned facilities.
Beginning December 1, 2023, recovery of SMP costs are included in PGL's base rates. As part of the ICC's November 16, 2023 rate order issued in PGL's rate case, the ICC ordered PGL to pause spending on its SMP until the ICC has a proceeding to determine the optimal method of pipeline replacement and a prudent investment level.
Beginning December 1, 2023, recovery of SMP costs are included in PGL's base rates. As part of the ICC's November 16, 2023 rate order issued in PGL's rate case, the ICC ordered PGL to pause spending on its SMP until the ICC had a proceeding to determine the optimal method of pipeline replacement and a prudent investment level.
Our Wisconsin segment natural gas utilities provide service to residential and commercial and industrial customers. In addition, our Wisconsin segment offers natural gas transportation services to our customers that elect to purchase natural gas directly from a third-party supplier. Major industries served include real estate, food products, governmental, restaurants, and paper. See Item 7.
Our Wisconsin segment natural gas utilities provide service to residential and commercial and industrial customers. In addition, our Wisconsin segment offers natural gas transportation services to our customers that elect to purchase natural gas directly from a third-party supplier. Major industries served include real estate, food manufacturing, governmental, restaurants, and paper. See Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Wisconsin Segment Contribution to Net Income Attributed to Common Shareholders for information on natural gas sales volumes by customer class in Wisconsin and the Upper Peninsula of Michigan. 2023 Form 10-K 10 WEC Energy Group, Inc.
Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Wisconsin Segment Contribution to Net Income Attributed to Common Shareholders for information on natural gas sales volumes by customer class in Wisconsin and the Upper Peninsula of Michigan. 2024 Form 10-K 10 WEC Energy Group, Inc.
Michigan legislation requires all electric providers to annually demonstrate to the MPSC that they have adequate resources to serve the anticipated needs of their customers for a minimum of four consecutive planning years beginning in the upcoming planning year June 1, 2024, through May 31, 2025.
Michigan legislation requires all electric providers to annually demonstrate to the MPSC that they have adequate resources to serve the anticipated needs of their customers for a minimum of four consecutive planning years beginning in the upcoming planning year June 1, 2025, through May 31, 2026.
In addition, as of December 31, 2023, we owned approximately 75% of ATC Holdco, a separate entity formed in December 2016 to invest in transmission-related projects outside of ATC's traditional footprint. See Note 21, Investment in Transmission Affiliates, for more information. The FERC and D.C.
In addition, as of December 31, 2024, we owned approximately 75% of ATC Holdco, a separate entity formed in December 2016 to invest in transmission-related projects outside of ATC's traditional footprint. See Note 21, Investment in Transmission Affiliates, for more information. The FERC and D.C.
Natural Gas Utility Operations – Wisconsin, Illinois, and Other States Segments Our natural gas utilities also face varying degrees of competition from other entities and other forms of energy available to consumers. Many large commercial and industrial customers have the ability to switch between natural gas and alternative fuels.
Table of Contents Natural Gas Utility Operations – Wisconsin, Illinois, and Other States Segments Our natural gas utilities also face varying degrees of competition from other entities and other forms of energy available to consumers. Many large commercial and industrial customers have the ability to switch between natural gas and alternative fuels.
See Note 7, Property, Plant, and Equipment, for more information on the wind storms that damaged equipment at Samson I in 2023. Corporate and Other Segment The corporate and other segment includes the operations of the WEC Energy Group holding company, the Integrys holding company, and the PELLC holding company, as well as the operations of Wispark and WBS.
See Note 7, Property, Plant, and Equipment, for more information on the wind storms that damaged equipment at Samson I. Corporate and Other Segment The corporate and other segment includes the operations of the WEC Energy Group holding company, the Integrys holding company, and the PELLC holding company, as well as the operations of Wispark and WBS.
The LMP system includes the ability to hedge transmission congestion costs through ARRs and FTRs. ARRs are allocated to market participants by MISO, and FTRs are purchased through auctions. A new allocation and auction was completed for the period of June 1, 2023, through May 31, 2024.
The LMP system includes the ability to hedge transmission congestion costs through ARRs and FTRs. ARRs are allocated to market participants by MISO, and FTRs are purchased through auctions. A new allocation and auction was completed for the period of June 1, 2024, through May 31, 2025.
Electric Utility Operations Our electric utility operations include the operations of WE, WPS, and UMERC. • WE generates and distributes electric energy to customers located in southeastern Wisconsin (including the metropolitan Milwaukee area), east central Wisconsin, and northern Wisconsin. • WPS generates and distributes electric energy to customers located in northeastern and central Wisconsin. 2023 Form 10-K 4 WEC Energy Group, Inc.
Electric Utility Operations Our electric utility operations include the operations of WE, WPS, and UMERC. • WE generates and distributes electric energy to customers located in southeastern Wisconsin (including the metropolitan Milwaukee area), east central Wisconsin, and northern Wisconsin. • WPS generates and distributes electric energy to customers located in northeastern and central Wisconsin. 2024 Form 10-K 4 WEC Energy Group, Inc.
Wholesale Rates The FERC regulates our wholesale sales of electric energy, capacity, and ancillary services. Our electric utilities have received market-based rate authority from the FERC. Market-based rate authority allows wholesale electric sales to be made in the MISO market and directly to third parties based on the negotiated market value of the transaction.
Table of Contents Wholesale Rates The FERC regulates our wholesale sales of electric energy, capacity, and ancillary services. Our electric utilities have received market-based rate authority from the FERC. Market-based rate authority allows wholesale electric sales to be made in the MISO market and directly to third parties based on the negotiated market value of the transaction.
Development and Training Employee training and development of both technical and leadership skills are integral aspects of our human capital strategy. We provide employees with a wide range of development opportunities, including online training, simulations, live classes, and mentoring to assist with their career advancement.
Table of Contents Development and Training Employee training and development of both technical and leadership skills are integral aspects of our human capital strategy. We provide employees with a wide range of development opportunities, including online training, simulations, live classes, and mentoring to assist with their career advancement.
ATC is also a transmission-owning member of MISO. MISO maintains operational control of ATC's transmission system, and WE, WPS, and UMERC are non-transmission owning members and customers of MISO. As of December 31, 2023, our ownership interest in ATC was approximately 60%.
ATC is also a transmission-owning member of MISO. MISO maintains operational control of ATC's transmission system, and WE, WPS, and UMERC are non-transmission owning members and customers of MISO. As of December 31, 2024, our ownership interest in ATC was approximately 60%.
Table of Contents Because of the significant investment necessary to construct these generating units, we constructed the plants under Wisconsin's Leased Generation Law, which allows a non-utility affiliate to construct an electric generating facility and lease it to the public utility.
Because of the significant investment necessary to construct these generating units, we constructed the plants under Wisconsin's Leased Generation Law, which allows a non-utility affiliate to construct an electric generating facility and lease it to the public utility.
Table of Contents Rates Our utilities' rates are subject to the regulations and oversight of various state regulatory commissions and the FERC, as applicable. Decisions by these regulators can significantly impact our liquidity, financial condition, and results of operations.
Rates Our utilities' rates are subject to the regulations and oversight of various state regulatory commissions and the FERC, as applicable. Decisions by these regulators can significantly impact our liquidity, financial condition, and results of operations.
Table of Contents Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2023, 2022, and 2021, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.
Table of Contents Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2024, 2023, and 2022, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.
Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2023, 2022, and 2021, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.
Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2024, 2023, and 2022, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.
Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2023, 2022, and 2021, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.
Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2024, 2023, and 2022, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.
The zone in which our electric utilities’ load resides, along with the MISO North region as a whole, had sufficient generation capacity resources to meet their respective planning reserve margins for the period between June 1, 2023 and May 31, 2024. We manage our electric generation portfolios to minimize their exposure within MISO’s annual capacity auction.
The zone in which our electric utilities’ load resides, along with the MISO North region as a whole, has sufficient generation capacity resources to meet their respective planning reserve margins for the period between June 1, 2024 and May 31, 2025. We manage our electric generation portfolios to minimize their exposure within MISO’s annual capacity auction.
Name Ownership Interest Commercial Operation Bishop Hill III 90.0% August 2018 Upstream 90.0% January 2019 Coyote Ridge 80.0% December 2019 Blooming Grove 90.0% December 2020 Tatanka Ridge 85.0% January 2021 Jayhawk 90.0% December 2021 Thunderhead 90.0% November 2022 Samson I (1) 80.0% May 2022 Sapphire Sky 90.0% February 2023 (1) Although Samson I was commercially operational in May 2022, WECI didn't complete the purchase of its initial 80% ownership interest in this solar facility until February 2023.
Name Ownership Interest Commercial Operation Bishop Hill III 90.0% August 2018 Upstream 90.0% January 2019 Coyote Ridge 81.6% December 2019 Blooming Grove 90.0% December 2020 Tatanka Ridge 85.6% January 2021 Jayhawk 90.0% December 2021 Thunderhead 90.0% November 2022 Samson I (1) 90.0% May 2022 Sapphire Sky 90.0% February 2023 Maple Flats 90.0% November 2024 Delilah I 90.0% December 2024 (1) Although Samson I was commercially operational in May 2022, WECI didn't complete the purchase of its initial 80.0% ownership interest in this solar facility until February 2023.
Orders from our respective regulators can be viewed at the following websites: Regulatory Commission Website PSCW https://psc.wi.gov/ ICC https://www.icc.illinois.gov/ MPSC http://www.michigan.gov/mpsc/ MPUC http://mn.gov/puc/ The material and information contained on these websites are not intended to be a part of, nor are they incorporated by reference into, this Annual Report on Form 10-K.
Orders from our respective regulators can be viewed at the following websites: Regulatory Commission Website PSCW https://psc.wi.gov/ ICC https://www.icc.illinois.gov/ MPSC http://www.michigan.gov/mpsc/ MPUC http://mn.gov/puc/ The material and information contained on these websites are not intended to be a part of, nor are they incorporated by reference into, this Annual Report on Form 10-K. 2024 Form 10-K 20 WEC Energy Group, Inc.
Excluding planning capacity purchases, our power purchase commitments with unaffiliated parties consist of 1,133 MWs per year for 2024 through 2028. This amount includes 1,033 MWs per year related to a long-term PPA for electricity generated by Point Beach.
Excluding planning capacity purchases, our power purchase commitments with unaffiliated parties consist of 1,133 MWs per year for 2025 through 2029. This amount includes 1,033 MWs per year related to a long-term PPA for electricity generated by Point Beach.
The table below reflects the various state commissions that regulated each of our utilities' retail rates during 2023, along with the approved ROE and capital structure for each utility during 2023.
Table of Contents The table below reflects the various state commissions that regulated each of our utilities' retail rates during 2024, along with the approved ROE and capital structure for each utility during 2024.
Environmental Goals We have announced goals to achieve reductions in carbon emissions from our electric generation fleet by 60% by the end of 2025 and by 80% by the end of 2030, both from a 2005 baseline. As of the end of 2023, our electric generation fleet has achieved a 54% reduction in carbon emissions from the 2005 baseline.
Environmental Goals We have announced goals to achieve reductions in carbon emissions from our electric generation fleet by 60% by the end of 2025 and by 80% by the end of 2030, both from a 2005 baseline. As of the end of 2024, our electric generation fleet has achieved a 56% reduction in carbon emissions from the 2005 baseline.
The table below indicates our sources of electric energy supply as a percentage of sales for the three years ended December 31, as well as estimates for 2024: Estimate (1) Actual 2024 2023 2022 2021 Company-owned generation: Coal 27.7 % 29.0 % 29.4 % 35.5 % Natural gas: Combined cycle 30.8 % 28.7 % 27.2 % 24.6 % Steam turbine 0.7 % 0.9 % 1.0 % 0.8 % Natural gas/oil peaking units 6.8 % 5.5 % 3.7 % 3.1 % Renewables (2) 7.0 % 5.5 % 5.8 % 4.8 % Total company-owned generation 73.0 % 69.6 % 67.1 % 68.8 % Power purchase contracts: Nuclear 19.7 % 20.1 % 19.8 % 19.0 % Natural gas — % — % 2.2 % 1.9 % Renewables (2) 1.8 % 2.0 % 1.9 % 1.9 % Other — % 0.1 % 0.2 % 0.1 % Total power purchase contracts 21.5 % 22.2 % 24.1 % 22.9 % Purchased power from MISO 5.5 % 8.2 % 8.8 % 8.3 % Total purchased power 27.0 % 30.4 % 32.9 % 31.2 % Total electric utility supply 100.0 % 100.0 % 100.0 % 100.0 % (1) The values included in the estimate assume a natural gas price based on the December 2023 NYMEX.
The table below indicates our sources of electric energy supply as a percentage of sales for the three years ended December 31, as well as estimates for 2025: Estimate (1) Actual 2025 2024 2023 2022 Company-owned generation: Coal 25.7 % 29.4 % 29.0 % 29.4 % Natural gas: Combined cycle 25.4 % 27.2 % 28.7 % 27.2 % Steam turbine 0.5 % 1.0 % 0.9 % 1.0 % Natural gas/oil peaking units 6.3 % 7.2 % 5.5 % 3.7 % Renewables (2) 8.5 % 6.5 % 5.5 % 5.8 % Total company-owned generation 66.4 % 71.3 % 69.6 % 67.1 % Power purchase contracts: Nuclear 20.4 % 20.3 % 20.1 % 19.8 % Natural gas — % — % — % 2.2 % Renewables (2) 1.7 % 1.9 % 2.0 % 1.9 % Other 0.1 % — % 0.1 % 0.2 % Total power purchase contracts 22.2 % 22.2 % 22.2 % 24.1 % Purchased power from MISO 11.4 % 6.5 % 8.2 % 8.8 % Total purchased power 33.6 % 28.7 % 30.4 % 32.9 % Total electric utility supply 100.0 % 100.0 % 100.0 % 100.0 % (1) The values included in the estimate assume a natural gas price based on the December 2024 NYMEX.
As such, the loss of revenue associated with the cost of natural gas that our transportation customers purchase from third-party suppliers has little impact on our net income, as it is offset by an equal reduction to natural gas costs. For more information on competition in each of our service territories, see Item 7.
As such, the loss of revenue associated with the cost of natural gas that our transportation customers purchase from third-party suppliers has little impact on our net income, as it is offset by an equal reduction to natural gas costs. For more information on electrification initiatives in certain of our Illinois service territories, see Item 7.
These planning reserve requirements are consistent with the MISO calculated planning reserve margin. In 2008, the PSCW established a 14.5% reserve margin requirement for long-term planning (planning years two through ten). For short-term planning (planning year one), the PSCW requires Wisconsin utilities to follow the planning reserve margin established by MISO. MISO implemented seasonal requirements effective June 1, 2023.
In 2008, the PSCW established a 14.5% reserve margin requirement for long-term planning (planning years two through ten). For short-term planning (planning year one), the PSCW requires Wisconsin utilities to follow the planning reserve margin established by MISO. MISO implemented seasonal requirements effective June 1, 2023.
This development of our employees is an integral part of our succession planning and provides continuity for our senior leadership. 2023 Form 10-K 23 WEC Energy Group, Inc. Table of Contents
This development of our employees is an integral part of our succession planning and provides continuity for our senior leadership. 2024 Form 10-K 24 WEC Energy Group, Inc. Table of Contents
(in thousands) Annual Tonnage 2024 9,275 (1) 2025 3,750 2026 1,400 (1) Coal contracts exceed the total projected requirement due to prior year delivery constraints and forecasted lower operating hours. Coal Deliveries All of our coal requirements are expected to be shipped by unit trains that we own or lease under existing transportation agreements.
(in thousands) Annual Tonnage 2025 4,446 (1) 2026 1,400 2027 — (1) Coal contracts exceed the total projected requirement due to prior year delivery constraints and forecasted lower operating hours. Coal Deliveries All of our coal requirements are expected to be shipped by unit trains that we own or lease under existing transportation agreements.
Customers Year Ended December 31 (in thousands) 2023 2022 2021 Customers – end of year Residential 922.9 910.9 904.5 Commercial and industrial 71.3 71.1 71.5 Transportation 62.0 66.4 68.3 Total customers 1,056.2 1,048.4 1,044.3 Natural Gas Supply, Pipeline Capacity, and Storage We manage portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns.
Customers Year Ended December 31 (in thousands) 2024 2023 2022 Customers – end of year Residential 929.0 922.9 910.9 Commercial and industrial 71.0 71.3 71.1 Transportation 59.9 62.0 66.4 Total customers 1,059.9 1,056.2 1,048.4 Natural Gas Supply, Pipeline Capacity, and Storage We manage portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns.
This includes managing the retirement of existing generation resources and the addition of new generation resources to maintain a diversified portfolio to ensure we do not have a significant short position. Other Electric Regulations Our electric utilities are subject to the Federal Power Act and the corresponding regulations developed by certain federal agencies.
This includes managing the retirement of existing generation resources and the addition of new generation resources to maintain a diversified portfolio to help avoid a significant short position. Other Electric Regulations Our electric utilities are subject to the Federal Power Act and the corresponding regulations developed by certain federal agencies.
We strive to foster a diverse workforce and inclusive workplace; attract, retain and develop talented personnel; and keep our employees safe and healthy. Our Board of Directors retains collective responsibility for comprehensive risk oversight, including critical areas that could impact our sustainability, such as human capital.
We strive to attract, retain, and develop talented personnel and keep our employees safe, healthy, and engaged. Our Board of Directors retains collective responsibility for comprehensive risk oversight, including critical areas that could impact our sustainability, such as human capital.
Natural Gas Supply Our natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, storage, peak-shaving facilities, and natural gas supply call options. We contract for fixed-term firm natural gas supply each year to meet the demand of firm system sales customers.
Table of Contents Natural Gas Supply Our natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, contracted and owned storage, and natural gas supply call options. We contract for fixed-term firm natural gas supply each year to meet the demand of firm system sales customers.
Customers Year Ended December 31 (in thousands) 2023 2022 2021 Customers – end of year Residential 379.3 375.4 370.1 Commercial and industrial 36.8 36.4 35.5 Transportation 19.5 19.7 23.6 Total customers 435.6 431.5 429.2 Natural Gas Supply, Pipeline Capacity and Storage We manage portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns.
Customers Year Ended December 31 (in thousands) 2024 2023 2022 Customers – end of year Residential 383.7 379.3 375.4 Commercial and industrial 37.2 36.8 36.4 Transportation 19.4 19.5 19.7 Total customers 440.3 435.6 431.5 Natural Gas Supply, Pipeline Capacity and Storage We manage portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns.
Customers Year Ended December 31 (in thousands) 2023 2022 2021 Electric customers – end of year Residential 1,487.9 1,471.4 1,460.4 Small commercial and industrial 179.0 176.9 175.8 Large commercial and industrial 0.8 0.9 0.8 Wholesale and other 1.6 1.6 1.6 Total electric customers – end of year 1,669.3 1,650.8 1,638.6 Steam customers – end of year 0.4 0.4 0.4 2023 Form 10-K 5 WEC Energy Group, Inc.
Customers Year Ended December 31 (in thousands) 2024 2023 2022 Electric customers – end of year Residential 1,499.4 1,487.9 1,471.4 Small commercial and industrial 180.8 179.0 176.9 Large commercial and industrial 0.8 0.8 0.9 Wholesale and other 1.7 1.6 1.6 Total electric customers – end of year 1,682.7 1,669.3 1,650.8 Steam customers – end of year 0.4 0.4 0.4 2024 Form 10-K 5 WEC Energy Group, Inc.
Customers Year Ended December 31 (in thousands) 2023 2022 2021 Customers – end of year Residential 1,381.7 1,365.5 1,353.2 Commercial and industrial 134.8 132.8 131.8 Transportation 3.5 3.5 3.5 Total customers 1,520.0 1,501.8 1,488.5 Natural Gas Supply, Pipeline Capacity and Storage We manage portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns.
Customers Year Ended December 31 (in thousands) 2024 2023 2022 Customers – end of year Residential 1,391.7 1,381.7 1,365.5 Commercial and industrial 135.7 134.8 132.8 Transportation 3.5 3.5 3.5 Total customers 1,530.9 1,520.0 1,501.8 Natural Gas Supply, Pipeline Capacity and Storage We manage portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns.
Natural Gas Sales Forecast Our combined Wisconsin service territories experienced lower weather-normalized retail natural gas deliveries (excluding natural gas deliveries for electric generation) in 2023 as compared to 2022. We currently forecast retail natural gas delivery volumes to grow 0.8% in 2024, assuming normal weather.
Natural Gas Sales Forecast Our combined Wisconsin service territories experienced slightly lower weather-normalized retail natural gas deliveries (excluding natural gas deliveries for electric generation) in 2024 as compared to 2023. We currently forecast retail natural gas delivery volumes to grow 1.9% in 2025, assuming normal weather.
WE, WPS, and WG are each subject to an earnings sharing mechanism in which a portion of the utility's earnings are required to be refunded to customers if the utility earns above its authorized ROE. See Note 26, Regulatory Environment, for more information on these earnings sharing mechanisms.
WE, WPS, and WG are each subject to an earnings sharing mechanism in which a portion of the utility's earnings are required to be refunded to customers if the utility earns above its authorized ROE. See Note 26, Regulatory Environment, for more information on these earnings sharing mechanisms. 2024 Form 10-K 19 WEC Energy Group, Inc.
The project will be located in Columbia County, Wisconsin and once fully constructed, WE and WPS will collectively own 270 MWs of solar generation of this project.
The project will be located in Dane County, Wisconsin and once fully constructed, WE and WPS will collectively own 270 MWs of solar generation and 149 MWs of battery storage of this project.
The secondary markets facilitate utilization of capacity and supply during times when the contracted capacity and supply are in excess of utility demand. The proceeds from these transactions are passed through to customers, subject to our approved GCRMs. For information on the GCRMs, see Note 1(d), Operating Revenues.
The secondary markets facilitate utilization of capacity and supply during times when the contracted capacity and supply are in excess of utility demand. The proceeds from these transactions are passed through to customers, subject to our approved GCRMs. For information on the GCRMs, see Note 1(d), Operating Revenues. 2024 Form 10-K 14 WEC Energy Group, Inc.
WECI is entitled to 99% of the tax benefits of Coyote Ridge and Tatanka Ridge for the first 11 years following commercial operation, and is entitled to 99% of the tax benefits of Jayhawk for the first 10 years following commercial operation, after which WECI will be entitled to any tax benefits equal to its ownership interests.
WECI is entitled to 99% of the tax benefits of Coyote Ridge and Tatanka Ridge for the first 11 years following commercial operation, and is entitled to 99% of the tax benefits of Jayhawk for the first 10 years following commercial operation, after which WECI will be entitled to any tax benefits from these three facilities in proportion to its ownership interests.
NON-UTILITY OPERATIONS Non-Utility Energy Infrastructure Segment The non-utility energy infrastructure segment includes We Power, which owns and leases generating facilities to WE; Bluewater, which owns underground natural gas storage facilities in Michigan; and WECI, which holds ownership interests in several renewable generating facilities. See Item 2. Properties, for more information on our non-utility energy infrastructure facilities. W.E.
NON-UTILITY OPERATIONS Non-Utility Energy Infrastructure Segment The non-utility energy infrastructure segment includes We Power, which owns and leases generating facilities to WE; Bluewater, which owns underground natural gas storage facilities in Michigan; and WECI, which holds ownership interests in several renewable generating facilities. See Item 2.
The following table compares our utility operating revenues by regulatory jurisdiction for each of the three years ended December 31: 2023 2022 2021 (in millions) Amount Percent Amount Percent Amount Percent Electric Wisconsin $ 4,548.8 90.8 % $ 4,360.9 87.7 % $ 4,035.1 88.9 % Michigan 141.4 2.8 % 185.9 3.7 % 166.7 3.7 % FERC – Wholesale 320.6 6.4 % 425.0 8.6 % 336.8 7.4 % Total electric 5,010.8 100.0 % 4,971.8 100.0 % 4,538.6 100.0 % Natural Gas Wisconsin 1,610.5 43.6 % 1,983.0 44.1 % 1,493.8 40.5 % Illinois 1,557.8 42.2 % 1,890.9 42.0 % 1,672.8 45.3 % Minnesota 348.4 9.4 % 400.7 8.9 % 367.1 10.0 % Michigan 175.3 4.8 % 223.5 5.0 % 156.5 4.2 % Total natural gas 3,692.0 100.0 % 4,498.1 100.0 % 3,690.2 100.0 % Total utility operating revenues $ 8,702.8 $ 9,469.9 $ 8,228.8 Retail Rates The state regulatory commissions have general supervisory and regulatory powers over public utilities in their respective jurisdictions including, but not limited to, approval of retail utility rates and standards of service, mergers, affiliate transactions, location and construction of electric generating units and natural gas facilities, and certain other additions and extensions to utility facilities.
The following table compares our utility operating revenues by regulatory jurisdiction for each of the three years ended December 31: 2024 2023 2022 (in millions) Amount Percent Amount Percent Amount Percent Electric Wisconsin $ 4,496.0 91.3 % $ 4,548.8 90.8 % $ 4,360.9 87.7 % Michigan 141.1 2.9 % 141.4 2.8 % 185.9 3.7 % FERC – Wholesale 284.5 5.8 % 320.6 6.4 % 425.0 8.6 % Total electric 4,921.6 100.0 % 5,010.8 100.0 % 4,971.8 100.0 % Natural Gas Wisconsin 1,405.4 40.6 % 1,610.5 43.6 % 1,983.0 44.1 % Illinois 1,602.4 46.3 % 1,557.8 42.2 % 1,890.9 42.0 % Minnesota 290.5 8.4 % 348.4 9.4 % 400.7 8.9 % Michigan 162.8 4.7 % 175.3 4.8 % 223.5 5.0 % Total natural gas 3,461.1 100.0 % 3,692.0 100.0 % 4,498.1 100.0 % Total utility operating revenues $ 8,382.7 $ 8,702.8 $ 9,469.9 Retail Rates The state regulatory commissions have general supervisory and regulatory powers over public utilities in their respective jurisdictions including, but not limited to, approval of retail utility rates and standards of service, mergers, affiliate transactions, location and construction of electric generating units and natural gas facilities, and certain other additions and extensions to utility facilities.
Natural Gas Supply Our natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, storage, peak-shaving facilities, and natural gas supply call options. We contract for fixed-term firm natural gas supply each year to meet the demand of firm system sales customers.
For information on the GCRMs, see Note 1(d), Operating Revenues. Natural Gas Supply Our natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, storage, peak-shaving facilities, and natural gas supply call options. We contract for fixed-term firm natural gas supply each year to meet the demand of firm system sales customers.
This program allows them to hedge, over a 60-month period, up to 75% of their potential risks related to rail transportation fuel surcharge exposure. The results of this hedging program, when used, are reflected in the average costs of fuel and purchased power. 2023 Form 10-K 9 WEC Energy Group, Inc.
This program allows them to hedge, over a 60-month period, up to 75% of their potential risks related to rail transportation fuel surcharge exposure. The results of this hedging program, when used, are reflected in the average costs of fuel and purchased power.
We have contracted for long-term firm capacity from a number of these sources. This strategy reflects management's belief that overall supply security is enhanced by geographic diversification of the supply portfolio. We own a 38.8 Bcf storage field (Manlove Field in central Illinois) and contract with various other underground storage service providers for additional storage services.
This strategy reflects management's belief that overall supply security is enhanced by geographic diversification of the supply portfolio. We own a 38.8 Bcf storage field (Manlove Field in central Illinois) and contract with various other underground storage service providers for additional storage services.
Our compensation package also includes a 401(k) savings plan with an employer match, an annual incentive plan based on meeting company goals, healthcare and insurance benefits, vacation and paid time off days, as well as other benefits. Diversity, Equity, and Inclusion We are committed to fostering a diverse workforce and inclusive workplace.
Our compensation package also includes a 401(k) savings plan with an employer match, an annual incentive plan based on meeting company goals, healthcare and insurance benefits, vacation and paid time off days, as well as other benefits. Engagement We are committed to ensuring a fair workplace and an engaged workforce.
Environmental permits necessary for operating the facilities are the responsibility of the operating entity, WE. We Power received determinations from the FERC that upon the transfer of the facilities by lease to WE, We Power's subsidiaries would not be deemed public utilities under the Federal Power Act and thus would not be subject to the FERC's jurisdiction.
We Power received determinations from the FERC that upon the transfer of the facilities by lease to WE, We Power's subsidiaries would not be deemed public utilities under the Federal Power Act and thus would not be subject to the FERC's jurisdiction.
Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Competitive Markets. Environmental Goals Natural Gas Utility Operations – Wisconsin, Illinois, and Other States Segments We continue to reduce methane emissions by improving our natural gas distribution system.
Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Competitive Markets. Environmental Goals Natural Gas Utility Operations – Wisconsin, Illinois, and Other States Segments We also continue to focus on methane emission reductions by improving our natural gas distribution systems.
To supplement natural gas supply and manage risk, we purchase additional natural gas supply on the monthly and daily spot markets. Hedging Natural Gas Supply Prices As part of their hedging programs, our Wisconsin utilities further reduce their supply cost volatility through the use of a mix of financial instruments, such as NYMEX-based natural gas options and futures contracts.
To supplement natural gas supply and manage risk, we purchase additional natural gas supply on the monthly and daily spot markets. Hedging Natural Gas Supply Prices Our other states utilities further reduce their supply cost volatility through the use of financial instruments, such as commodity futures, swaps, and options as part of their hedging programs.
When taken together, the retirements and new investments in renewables and clean generation discussed in more detail below, should better balance our supply with our demand, while maintaining reliable, affordable energy for our customers.
When taken together, the retirements and new investments in renewables and reliable, efficient natural gas generation discussed in more detail below should better balance our supply with our demand, while helping to address compliance and maintaining reliable, affordable energy for our customers.
We also provide employees various benefits and resources designed to promote healthy living, both at work and at home. We encourage employees to receive preventive examinations and to proactively care for their health through free health screenings, wellness challenges, and other resources.
We also provide employees various benefits and resources designed to promote healthy living, both at work and at home. We encourage employees to receive preventive examinations and to proactively care for their health through free health screenings, wellness challenges, and other resources. 2024 Form 10-K 23 WEC Energy Group, Inc.
Combined with our storage capability, management believes that the volume of gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand. Forecasted design peak-day throughput for our other states utilities is 9.7 million therms for the 2023 through 2024 heating season.
We believe that having diverse capacity and storage benefits our customers. Combined with our storage capability, management believes that the volume of gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand. Forecasted design peak-day throughput for our other states utilities is 9.6 million therms for the 2024 through 2025 heating season.
Regulated Utility Operations In addition to the specific regulations noted above and below, our utilities are subject to various other regulations, which primarily consist of regulations, where applicable, of the EPA; the WDNR; the Illinois Department of Natural Resources; the Illinois Environmental Protection Agency; the Michigan Department of Environment, Great Lakes, and Energy; the Michigan Department of Natural Resources; the Army Corps; the Minnesota Department of Natural Resources; and the Minnesota Pollution Control Agency. 2023 Form 10-K 18 WEC Energy Group, Inc.
Table of Contents Regulated Utility Operations In addition to the specific regulations noted above and below, our utilities are subject to various other regulations, which primarily consist of regulations, where applicable, of the EPA; the WDNR; the Illinois Department of Natural Resources; the Illinois Environmental Protection Agency; the Michigan Department of Environment, Great Lakes, and Energy; the Michigan Department of Natural Resources; the United States Army Corps of Engineers; the Minnesota Department of Natural Resources; and the Minnesota Pollution Control Agency.
Our average fuel and purchased power costs per MWh by fuel type, including delivery costs, were as follows for the years ended December 31: 2023 2022 2021 Coal $ 25.80 $ 25.37 $ 21.06 Natural gas combined cycle 30.41 42.11 24.55 Natural gas/oil peaking units 56.41 90.22 76.96 Biomass 87.73 78.42 86.24 Purchased power 53.90 58.78 50.88 WE and WPS purchase coal under long-term contracts, which helps with price stability.
Our average fuel and purchased power costs per MWh by fuel type, including delivery costs, were as follows for the years ended December 31: 2024 2023 2022 Coal $ 25.38 $ 25.80 $ 25.37 Natural gas combined cycle 20.52 30.41 42.11 Natural gas/oil peaking units 42.41 56.41 90.22 Biomass 81.33 87.73 78.42 Purchased power 57.39 53.90 58.78 WE and WPS purchase coal under long-term contracts, which helps with price stability.
Bishop Hill III, Coyote Ridge, Blooming Grove, Tatanka Ridge, Jayhawk, Thunderhead, Samson I, and Sapphire Sky have offtake agreements with creditworthy counterparties for the sale of all of the energy they produce over periods ranging from 10 to 22 years following commercial operation.
Bishop Hill III, Coyote Ridge, Blooming Grove, Tatanka Ridge, Jayhawk, Thunderhead, Samson I, Sapphire Sky, Maple Flats, and Delilah I have offtake agreements with creditworthy counterparties for the sale of all of the energy they produce over periods 2024 Form 10-K 17 WEC Energy Group, Inc. Table of Contents ranging from 10 to 22 years following commercial operation.
The construction is expected to be completed in 2024. • In January 2022, WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire and construct Paris, a utility-scale solar-powered electric generating facility with a battery energy storage system.
The construction of the solar portion and battery storage is expected to be completed in 2026 and 2027, respectively. • In December 2022, WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire and construct Darien, a utility-scale solar-powered electric generating facility with a battery energy storage system.
We Power's share of the ERGS units and both PWGS units are being leased to WE under long-term leases (the ERGS units have 30-year leases that began on the in-service dates of the generating units and the PWGS units have 25-year leases that began on the in-service dates of the generating units). 2023 Form 10-K 16 WEC Energy Group, Inc.
We Power's share of the ERGS units and both PWGS units are being leased to WE under long-term leases (the ERGS units have 30-year leases that began on the in-service dates of the generating units and the PWGS units have 25-year leases that began on the in-service dates of the generating units).
These regulations include 49 CFR Part 191 (Transportation of Natural and Other Gas by Pipeline; Annual Reports, Incident Reports, and Safety-Related Condition Reports), 49 CFR Part 192 (Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards), and 49 CFR Part 195 (Transportation of Hazardous Liquids by Pipeline).
These regulations include 49 CFR Part 191 (Transportation of Natural and Other Gas by Pipeline; Annual Reports, Incident Reports, and Safety-Related Condition Reports), 49 CFR Part 192 (Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards), and 49 CFR Part 195 (Transportation of Hazardous Liquids by Pipeline). 2024 Form 10-K 21 WEC Energy Group, Inc.
Costs for new regional transmission projects are allocated to load-serving entities throughout the MISO footprint, while the costs for new generation interconnections are allocated to the interconnection customer. 2023 Form 10-K 20 WEC Energy Group, Inc. Table of Contents Within MISO, transmission congestion is monetized and included within an LMP that is established through the energy market.
Costs for new regional transmission projects are allocated to load-serving entities throughout the MISO footprint, while the costs for new generation interconnections are allocated to the interconnection customer. Within MISO, transmission congestion is monetized and included within an LMP that is established through the energy market.
We target storage inventory levels at approximately 40% of forecasted demand for November through March. Diversity of natural gas supply enables us to manage significant changes in demand and to optimize our overall natural gas supply and capacity costs. We generally inject natural gas into storage during the spring and summer months and withdraw it in the winter months.
Diversity of natural gas supply enables us to manage significant changes in demand and to optimize our overall natural gas supply and capacity costs. We generally inject natural gas into storage during the spring and summer months and withdraw it in the winter months.
The project will be located in Kenosha County, Wisconsin and once fully constructed, WE and WPS will collectively own 180 MWs of solar generation and 99 MWs of battery storage of this project.
If approved, the project will be located in Rock County, Wisconsin and once fully constructed, WE and WPS will collectively own 135 MWs of solar generation and WE will own 50 MWs of battery storage of this project.
In 2022, we received approval from the PSCW for our RNG pilots. We have since signed contracts for RNG for our natural gas distribution business in Wisconsin, which will be transporting the output of local dairy farms onto our gas distribution systems. The RNG supplied will directly replace higher-emission methane from natural gas that would have entered our pipes.
In 2022, we received approval from the PSCW for our RNG pilots and in 2023, we began transporting the output of local dairy farms onto our natural gas distribution systems in Wisconsin. The RNG supplied will directly replace higher-emission methane from natural gas that would have entered our pipes. We currently have contracts in place for 2.1 Bcf of RNG.
We report to the PSCW annually on our compliance with this law and provide supporting documentation to show that our non-utility assets are below the non-utility asset cap.
We report to the PSCW annually on our compliance with this law and provide supporting documentation to show that our non-utility assets are below the non-utility asset cap. 2024 Form 10-K 18 WEC Energy Group, Inc.
We contract for fixed-term firm natural gas supply each year to meet the 2023 Form 10-K 14 WEC Energy Group, Inc. Table of Contents demand of firm system sales customers. To supplement natural gas supply and manage risk, we purchase additional natural gas supply on the monthly and daily spot markets.
We contract for fixed-term firm natural gas supply each year to meet the demand of firm system sales customers. To supplement natural gas supply and manage risk, we purchase additional natural gas supply on the monthly and daily spot markets.
In addition to its responsibilities relative to executive compensation, the Compensation Committee has oversight responsibility for reviewing organizational matters that could significantly impact us, including succession planning. The Compensation Committee reviews recruiting and development programs and priorities, receives updates on key talent, and assesses workforce diversity across the organization. 2023 Form 10-K 22 WEC Energy Group, Inc.
In addition to its responsibilities relative to executive compensation, the Compensation Committee has oversight responsibility for reviewing organizational matters that could significantly impact us. The Compensation Committee reviews recruiting and development programs and priorities, receives updates on key talent, and assesses workforce composition across the organization.
In 2023, retail revenues accounted for 92.9% of total electric operating revenues, wholesale revenues accounted for 2.4% of total electric operating revenues, and resale revenues accounted for 3.9% of total electric operating revenues. See Item 7.
In 2024, retail revenues accounted for 93.4% of total electric operating revenues, wholesale revenues accounted for 2.1% of total electric operating revenues, and resale revenues accounted for 3.6% of total electric operating revenues. See Item 7.
We continue to upgrade our electric distribution system, including substations, transformers, and lines, to meet the demand of our customers. In 2023, our generating plants performed as expected during the warmest periods of the summer, and all power purchase commitments under firm contract were received.
We sell more electricity during the summer months because of the residential cooling load. We continue to upgrade our electric distribution system, including substations, transformers, and lines, to meet the demand of our customers. In 2024, our generating plants performed as expected during the most demanding periods of the year, and all power purchase commitments under firm contract were received.
Bluewater is regulated by the FERC under the Natural Gas Act and the Natural Gas Policy Act of 1978. In addition, the Pipeline and Hazardous Materials Safety Administration is responsible for monitoring and enforcing requirements governing Bluewater's safety compliance programs for its pipelines under the United States Department of Transportation regulations.
Bluewater is regulated by the FERC under the Natural Gas Act and the Natural Gas Policy Act of 1978. In addition, the PHMSA is responsible for monitoring and enforcing requirements governing Bluewater's safety compliance programs for its pipelines under the United States Department of Transportation regulations. These regulations include 49 CFR Parts 191, 192, and 195.
Table of Contents As part of our commitment to invest in additional zero-carbon generation within our Wisconsin segment, we have filed requests to acquire and construct 370 MWs of additional projects, including the following: • In February 2024, WE and WPS, along with an unaffiliated utility, filed a request with the PSCW to acquire and construct High Noon, a utility-scale solar-powered electric generating facility.
Table of Contents As part of our commitment to invest in additional zero-carbon generation within our Wisconsin segment, we have filed requests to acquire and construct 868 MWs of additional renewable generation and 244 MWs of battery storage, including the following: • In October 2024, WE and WPS, along with an unaffiliated utility, filed a request with the PSCW to acquire and construct Good Oak and Gristmill, two utility-scale solar-powered electric generating facilities.

… 106 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

105 edited+29 added−15 removed155 unchanged
Biggest changeAdvances in technology, and legislation or regulations supporting such technology, could make our electric generating facilities less competitive and may impact the demand for natural gas. Advances in new technologies that produce or store power or reduce power consumption are ongoing and include renewable energy technologies, customer-oriented generation, energy storage devices, and energy efficiency technologies.
Biggest changeAI is a relatively new and rapidly evolving technology, and we are unable to predict all of the risks that may result from our and our vendors' adoption of AI initiatives. Advances in technology, and legislation or regulations supporting such technology, could make our electric generating facilities less competitive and may impact the demand for natural gas.
Many aspects of our operations are regulated and impacted by government regulation, including, but not limited to: the rates we charge our retail electric, natural gas, and steam customers; the authorized rates of return of our utilities; construction and operation of electric generating facilities and electric and natural gas distribution systems, including the ability to recover such costs; decommissioning generating facilities, the ability to recover the related costs, and continuing to recover the return on the net book value of these facilities; wholesale power service practices; electric reliability requirements and accounting; participation in the interstate natural gas pipeline capacity market; standards of service; issuance of securities; short-term debt obligations; transactions with affiliates; and billing practices.
Many aspects of our operations are regulated and impacted by government regulation, including, but not limited to: the rates we charge our retail electric, natural gas, and steam customers; the authorized rates of return of our utilities; construction and operation of electric generating facilities and electric and natural gas distribution systems, including the ability to recover such costs; decommissioning generating facilities, the ability to recover the related costs, and continuing to recover the return on the net book value of these facilities; wholesale power service practices; electric reliability requirements; participation in the interstate natural gas pipeline capacity market; standards of service; issuance of securities; short-term debt obligations; transactions with affiliates; and billing practices.
General Risks We have recorded goodwill and other long-lived assets, including intangible assets, that could become impaired. We assess goodwill for impairment on an annual basis or whenever events or circumstances occur that would more than likely indicate that the carrying amount of our reporting unit's net assets exceeds the reporting unit's fair value.
General Risks We have recorded goodwill and other long-lived assets, including intangible assets, which could become impaired. We assess goodwill for impairment on an annual basis or whenever events or circumstances occur that would more than likely indicate that the carrying amount of our reporting unit's net assets exceeds the reporting unit's fair value.
The imposition of additional taxes, tariffs, or other assessments related to renewable energy projects or the equipment necessary to generate or deliver it, as well as any reductions or eliminations of tax credits or other governmental incentives that promote renewable energy generating facilities, may limit our ability to make further investments in renewable energy generating facilities or reduce the returns on our existing investments.
The imposition of additional taxes, tariffs, or other assessments related to renewable energy projects or the equipment necessary to generate or deliver it, as well as any reductions or eliminations of tax credits or other governmental incentives that promote renewable energy generating facilities, may also limit our ability to make further investments in renewable energy generating facilities or reduce the returns on our existing investments.
These facilities generate PTCs or ITCs that we can use to reduce our federal tax obligations. Under the IRA, a transferability option also allows us to sell these tax credits to third parties. This is a new market that may require additional regulations and guidance from taxing authorities.
These facilities generate PTCs or ITCs that we can use to reduce our federal tax obligations. Under the IRA, a transferability option also allows us to sell these tax credits to third parties. This is a relatively new market that may require additional regulations and guidance from taxing authorities.
Our financial performance depends on the successful operation of our electric generation, natural gas and electric distribution facilities, natural gas storage fields, and renewable energy facilities. The operation of these facilities involves many risks, including operator error and the breakdown or failure of equipment or processes.
Our financial performance depends on the successful operation of our electric generation and transmission, natural gas and electric distribution facilities, natural gas storage fields, and renewable energy facilities. The operation of these facilities involves many risks, including operator error and the breakdown or failure of equipment or processes.
Moreover, prices of equipment, materials, and other resources have increased as a result of these supply chain disruptions and may continue to increase in the future, as a result of inflation.
Moreover, prices of equipment, materials, and other resources have increased as a result of supply chain disruptions and may continue to increase in the future, as a result of inflation.
Potential breakdown or failure may occur due to severe weather (i.e., storms, tornadoes, floods, droughts, etc.); catastrophic events (i.e., fires, earthquakes, and explosions); public health crises, including epidemics and pandemics; significant changes in water levels in waterways; fuel supply or transportation disruptions; accidents; employee labor disputes; construction delays or cost overruns; delays in the replacement of aging infrastructure; shortages of or delays in obtaining equipment, material, and/or labor; performance below expected levels; operating limitations that may be imposed by environmental or other regulatory requirements; terrorist or other physical attacks; or cybersecurity intrusions.
Potential breakdown or failure may occur due to severe weather (i.e., storms, tornadoes, floods, droughts, etc.); catastrophic events (i.e., fires, earthquakes, and explosions); public health crises; significant changes in water levels in waterways; fuel supply or transportation disruptions; accidents; employee labor disputes; construction delays or cost overruns; delays in the replacement of aging infrastructure; shortages of or delays in obtaining equipment, material, and/or labor; performance below expected levels; operating limitations that may be imposed by environmental or other regulatory requirements; terrorist or other physical attacks; or cybersecurity intrusions.
Table of Contents If any of these risks or uncertainties limit our access to the credit and capital markets or significantly increase our cost of capital, it could limit our ability to implement, or increase the costs of implementing, our business plan, which, in turn, could materially and adversely affect our results of operations, cash flows, and financial condition, and could limit our ability to sustain our current common stock dividend level.
If any of these risks or uncertainties limit our access to the credit and capital markets or significantly increase our cost of capital, it could limit our ability to implement, or increase the costs of implementing, our business plan, which, in turn, could materially and adversely affect our results of operations, cash flows, and financial condition, and could limit our ability to sustain our current common stock dividend level.
An increase in frequency and severity of weather conditions could cause disruptions to our sites to become more frequent and severe. Wind and solar equipment can be damaged by natural events such as lightning strikes that damage blades or in-ground electrical systems used to collect electricity from turbines or panels.
In addition, an increase in frequency and severity of weather conditions could cause disruptions to our sites to become more frequent and severe. Wind and solar equipment can be damaged by natural events such as lightning strikes that damage blades or in-ground systems used to collect electricity from turbines or panels.
The failure of any of these or other similarly important technologies, or our inability to support, update, expand, and/or integrate these technologies across our subsidiaries could materially and adversely impact our operations, diminish customer confidence and our reputation, materially increase the costs we incur to protect against these risks, and subject us to possible financial liability or increased regulation or litigation.
The failure of any of these important technologies, or our inability to support, update, expand, and/or integrate these technologies across our subsidiaries, could materially and adversely impact our operations, diminish customer confidence and our reputation, materially increase the costs we incur to protect against these risks, and subject us to possible financial liability or increased regulation or litigation.
Although initial agreements are often ten years or more, in the future we may not be able to replace expiring PPAs related to our non-utility renewable energy facilities with contracts on acceptable terms, including at prices that support operation of the facility on a profitable basis.
Although initial agreements are often ten years or more, in the future we may not be able to replace expiring PPAs related to our non-utility renewable energy facilities with contracts on acceptable terms, including at prices that support profitable operation of the facility.
Risks Related to Economic and Market Volatility Our business is dependent on our ability to successfully access capital markets on competitive terms and rates.
Risks Related to Economic and Market Volatility Our business is dependent on our ability to successfully access credit and capital markets on competitive terms and rates.
At December 31, 2023, our goodwill was $3,052.8 million. Other long-lived assets, including intangible assets, are evaluated for impairment on an annual basis or whenever events or circumstances occur that indicate that an asset's carrying value may not be recoverable.
At December 31, 2024, our goodwill was $3,052.8 million. Other long-lived assets, including intangible assets, are evaluated for impairment on an annual basis or whenever events or circumstances occur that indicate that an asset's carrying value may not be recoverable.
These regulations, as well as changes in the fuel markets and advances in technology, could make additional electric generating units uneconomic to maintain or operate, may impact how we operate our existing fossil-fueled power plants and biomass facility, and could cause us to retire and replace units earlier than planned under the ESG Progress Plan, which could lead to a possible loss on abandonment and reduced revenues.
These regulations, as well as changes in the fuel markets and advances in technology, could make additional electric generating units uneconomic to maintain or operate, may impact how we operate our existing fossil-fueled power plants and biomass facility, and could cause us to retire and replace units earlier than planned under our capital plan, which could lead to a possible loss on abandonment and reduced revenues.
Table of Contents Provisions of the Wisconsin Utility Holding Company Act limit our ability to invest in non-utility businesses and could deter takeover attempts by a potential purchaser of our common stock that would be willing to pay a premium for our common stock.
Provisions of the Wisconsin Utility Holding Company Act limit our ability to invest in non-utility businesses and could deter takeover attempts by a potential purchaser of our common stock that would be willing to pay a premium for our common stock.
Table of Contents We believe we have obtained the necessary permits, approvals, authorizations, certificates, and licenses for our existing operations, have complied in all material respects with all of their associated terms, and that our businesses are conducted in accordance with applicable laws.
We believe we have obtained the necessary permits, approvals, authorizations, certificates, and licenses for our existing operations, have complied in all material respects with all of their associated terms, and that our businesses are conducted in accordance with applicable laws.
In addition, we maintain rabbi trusts to fund our deferred compensation plans and other investments funds, which from time to time, hold equity and debt investments that are subject to market fluctuations. Decreases in investment performance of these assets could materially adversely affect our results of operations, cash flows, and financial condition.
In addition, we maintain rabbi trusts to fund our deferred compensation plans and other investments funds, including our clean energy funds, which from time to time, hold equity and debt investments that are subject to market fluctuations. Decreases in investment performance of these assets could materially adversely affect our results of operations, cash flows, and financial condition.
Table of Contents Litigation over environmental issues and claims of various types, including property damage, personal injury, common law nuisance, and citizen enforcement of environmental laws and regulations, occurs frequently throughout the United States.
Litigation over environmental issues and claims of various types, including property damage, personal injury, common law nuisance, and citizen enforcement of environmental laws and regulations, occurs frequently throughout the United States.
Public health crises, including epidemics and pandemics, and any related government responses could also impair our ability to develop, construct, and operate facilities. Risks include extended disruptions to supply chains and inflation, resulting in increased costs for labor, materials, and services, which could adversely impact our ability to implement our corporate strategy.
Public health crises and any related government responses could also impair our ability to develop, construct, and operate facilities. Risks include extended disruptions to supply chains and inflation, resulting in increased costs for labor, materials, and services, which could adversely impact our ability to implement our corporate strategy.
We are actively involved with multiple significant capital projects, which are subject to a number of risks and uncertainties that could adversely affect project costs and completion of construction projects.
Table of Contents We are actively involved with multiple significant capital projects, which are subject to a number of risks and uncertainties that could adversely affect project costs and completion of construction projects.
This risk of curtailment of our non-utility renewable energy facilities may result in a reduced return on our investments, and we may not be compensated for lost energy and ancillary services.
Curtailment of our non-utility renewable energy facilities may result in a reduced return on our investments, and we may not be compensated for lost energy and ancillary services.
Additional risks include, but are not limited to, the ability to adhere to established budgets and time frames; the availability of labor or materials at estimated costs; the ability of contractors to perform under their contracts; strikes; adverse weather conditions; potential legal challenges; changes in applicable laws or regulations; rising interest rates; the impact of public health crises, including epidemics and pandemics; other governmental actions; continued public and policymaker support for such projects; and events in the global economy.
Additional risks include, but are not limited to, the ability to adhere to established budgets and time frames; the availability of labor or materials at estimated costs; the ability of contractors to perform under their contracts; strikes; adverse weather conditions; potential legal challenges; changes in applicable laws or regulations; rising interest rates; inflation; tariffs; the impact of public health crises; other governmental actions; continued public and policymaker support for such projects; and events in the global economy.
These threats could result in a full or partial disruption of our ability to generate, transmit, purchase, or distribute electricity or natural gas or cause environmental repercussions.
Cybersecurity threats could result in a full or partial disruption of our ability to generate, transmit, purchase, or distribute electricity or natural gas or cause environmental repercussions.
As a result, we are unable to determine the potential impact any such public health crises, including epidemics and pandemics, may have on our business plans and operations, liquidity, financial condition, and results of operations.
As a result, we are unable to determine the potential impact any such public health crises may have on our business plans and operations, liquidity, financial condition, and results of operations.
Insurance, warranties, performance guarantees, or recovery through the regulatory process may not cover any or all of these lost revenues or increased expenses, which could adversely affect our results of operations and cash flows. 2023 Form 10-K 28 WEC Energy Group, Inc.
Insurance, warranties, performance guarantees, or recovery through the regulatory process may not cover any or all of these lost revenues or increased expenses, which could adversely affect our results of operations and cash flows. 2024 Form 10-K 29 WEC Energy Group, Inc.
Our access to the credit and capital markets could be limited, or our cost of capital significantly increased, due to any of the following risks and uncertainties: • A rating downgrade; • Failure to comply with debt covenants; • An economic downturn or uncertainty; • Prevailing market conditions and rules; • Political tensions, including civil unrest and election volatility; • Concerns over foreign economic conditions; • Changes in tax policy; • Changes in investment criteria of institutional investors or banks, including any policies that would limit or restrict funding for companies with fossil fuel-related investments; • War or the threat of war; and • The overall health and view of the utility and financial institution industries. 2023 Form 10-K 35 WEC Energy Group, Inc.
Our access to the credit and capital markets could be limited, or our cost of capital significantly increased, due to any of the following risks and uncertainties: • A rating downgrade; • Failure to comply with debt covenants; • An economic downturn or uncertainty; • Prevailing market conditions and rules; • Political tensions, including civil unrest and election volatility; • Concerns over foreign economic conditions; • Changes in tax policy; • Changes in investment criteria of institutional investors or banks, including any policies that would limit or restrict funding for companies with fossil fuel-related investments; • War or the threat of war; and • The overall health and view of the utility and financial institution industries.
Table of Contents In addition, we cannot predict the effect that development of alternative energy sources or new technology may have on our natural gas operations, including whether subsidies of alternative energy sources by local, state, and federal governments might be expanded, or what impact this might have on the supply of or the demand for natural gas.
We also cannot predict the effect that development of alternative energy sources or new technology may have on our natural gas operations, including whether subsidies of alternative energy sources by local, state, and federal governments might be expanded, or what impact this might have on the supply of or the demand for natural gas.
Despite the implementation of security measures, all assets and systems are potentially vulnerable to disability, failures, or unauthorized access due to physical or cybersecurity intrusions caused by human error, vendor bugs, terrorist or other physical attacks (including potential attacks on our substations and other electric distribution equipment), acts of war, or other malicious acts.
All of our assets and systems are potentially vulnerable to disability, failures, or unauthorized access due to physical or cybersecurity intrusions caused by human error, vendor bugs, terrorist or other physical attacks (including potential attacks on our substations and other electric distribution equipment), acts of war, or other malicious acts.
Fluctuating commodity prices could negatively impact our operations. Our operating and liquidity requirements are impacted by changes in the forward and current market prices of natural gas, coal, electricity, renewable energy credits, and ancillary services. Our electric utilities burn natural gas in several of their electric generation plants and as a supplemental fuel at several coal-fired plants.
Our operating and liquidity requirements are impacted by changes in the forward and current market prices of natural gas, coal, electricity, renewable energy credits, and ancillary services. Our electric utilities burn natural gas in several of their electric generation plants and as a supplemental fuel at several coal-fired plants.
Successful cybersecurity intrusions, including those targeting the electronic control systems used at our generating facilities and electric and natural gas transmission, distribution, and storage systems, could disrupt our operations and result in loss of service to customers. Attacks may come through ransomware, software updates or patches, or firmware that hackers can manipulate.
Table of Contents targeting the electronic control systems used at our generating facilities and electric and natural gas transmission, distribution, and storage systems, could disrupt our operations and result in loss of service to customers. Attacks may come through ransomware, software updates or patches, or firmware that hackers can manipulate.
Due to the potential for the imposition of stricter standards and greater regulation in the future, the possibility that other potentially responsible parties may not be willing or financially able to contribute to cleanup costs, a change in conditions or the discovery of additional contamination, our remediation costs could increase, and the timing of our capital and/or operating expenditures in the future may accelerate or could vary from the amounts currently accrued. 2023 Form 10-K 25 WEC Energy Group, Inc.
Due to the potential for the imposition of stricter standards and greater regulation in the future, the possibility that other potentially responsible parties may not be willing or financially able to contribute to cleanup costs, a change in conditions or the discovery of additional contamination, our remediation costs could increase, and the timing of our capital and/or operating expenditures in the future may accelerate or could vary from the amounts currently accrued.
Despite our efforts to manage the impacts of public health crises, including epidemics and pandemics, that may occur in the future, the extent to which they may affect us depends on factors beyond our knowledge or control.
Despite our efforts to manage the impacts of public health crises which may occur in the future, the extent to which they may affect us depends on factors beyond our knowledge or control.
MISO also implemented an ancillary services market for operating reserves that schedules energy and ancillary services at the same time as part of the energy market, allowing for more efficient use of generation assets in the MISO Energy Markets.
Table of Contents market for operating reserves that schedules energy and ancillary services at the same time as part of the energy market, allowing for more efficient use of generation assets in the MISO Energy Markets.
Further, increased costs recovered through rates could contribute to reduced demand for electricity and natural gas, which could adversely affect our results of operations, cash flows, and financial condition. Our operations, capital expenditures, and financial results may be affected by the impact of greenhouse gas legislation, regulation, and emission reduction goals. There is significant attention to issues concerning climate change.
Further, increased costs recovered through rates could contribute to reduced demand for electricity and natural gas, which could adversely affect our results of operations, cash flows, and financial condition. Our operations, capital expenditures, and financial results may be affected by the impact of greenhouse gas legislation, regulation, and emission reduction goals.
Any of these matters, as well as any regulatory delay in adjusting rates as a result of reduced sales from effective conservation measures or the adoption of new technologies, could adversely impact our results of operations and financial condition. Our operations are subject to the effects of global climate change.
Any of these matters, as well as any regulatory delay in adjusting rates as a result of reduced sales from effective conservation measures or the adoption of new technologies, could adversely impact our results of operations and financial condition.
Table of Contents In addition, our operations could be adversely affected and our facilities placed at greater risk of damage should changes in global climate produce, among other possible conditions, unusual variations in temperature and weather patterns, which could result in more intense, frequent and extreme weather events, such as wind storms including derecho events, floods, tornadoes, snow and ice storms, or abnormal levels of precipitation.
In addition, our operations could be adversely affected and our facilities placed at greater risk of damage should changes in global climate produce, among other possible conditions, unusual variations in temperature and weather patterns, which could result in more intense, frequent and extreme weather events, such as storms, including derecho events, with high winds, lightning, and hail, floods, drought, wild fires, tornadoes, snow and ice storms, or abnormal levels of precipitation.
Recently enacted legislation, including the IRA and the Infrastructure Investment and Jobs Act, promotes the construction and cost-effectiveness of renewable energy generation, including distributed generation technologies for self-supply of electricity by our customers and third parties.
Recent legislation, including the IRA and the Infrastructure Investment and Jobs Act, has promoted the construction and cost-effectiveness of renewable energy generation, including distributed generation technologies for self-supply of electricity by our customers and third parties.
Failure to meet these increasing expectations or to adequately address the risks and external pressures from regulators, customers, investors, and other stakeholders may impact our reputation and affect our ability to achieve favorable outcomes in future rate cases or our results of operations.
Failure to meet these expectations or to adequately address the risks and external pressures may impact our reputation and affect our ability to achieve favorable outcomes in future rate cases or our results of operations.
Protracted, expanding or escalating regional conflicts, including the conflicts in Ukraine, Israel, and parts of the Middle East, as well as strained relationships between the United States and other countries related to such conflicts, could further contribute to current domestic and global supply chain disruptions that are delaying the delivery, and in some cases resulting in shortages of, materials, equipment, and other resources that are critical to our business operations.
Protracted, expanding or escalating regional or international conflicts, including the conflicts involving Ukraine, Israel, and parts of the Middle East, as well as strained relationships between the United States and other countries related to such conflicts, could result in domestic and global supply chain disruptions that delay the delivery, or result in shortages of, materials, equipment, and other resources that are critical to our business operations.
Further, delays in the replacement of aging infrastructure as a result of the ICC's orders in the PGL and NSG rate cases may lead to increased costs and disruptions in operations that could also negatively impact our financial results.
Further, delays in the replacement of aging infrastructure as a result of the ICC's orders in the 2023 PGL and NSG rate cases, as well as the ICC's decision in PGL's 2016 QIP rider reconciliation proceeding, may lead to increased costs and disruptions in operations that could also negatively impact our financial results.
Our operations and future results may be impacted by changing expectations and demands of our customers, regulators, investors, and other stakeholders, including heightened emphasis on environmental, social, and governance concerns. Our ability to execute our strategy and achieve anticipated financial outcomes are influenced by the expectations of our customers, regulators, investors, and other stakeholders.
Our operations and future results may be impacted by changing expectations and demands of our customers, regulators, investors, and other stakeholders. Our ability to execute our strategy and achieve anticipated financial outcomes are influenced by the expectations of our customers, regulators, investors, and other stakeholders.
These efforts could impact how we operate our electric generating units and natural gas facilities and lead to increased competition and regulation, all of which could have a material adverse effect on our operations and financial condition.
These efforts could impact how we operate our electric generating units and natural gas facilities and lead to increased competition and regulation, all of which could have a material adverse effect on our operations and financial condition. There can be no guarantee that we will achieve our targets.
There is also a risk that advances in technology will continue to reduce the costs of these alternative methods of producing power to a level that is competitive with that of central station and utility-scale renewable power production. 2023 Form 10-K 32 WEC Energy Group, Inc.
There is also a risk that advances in technology will continue to reduce the costs of these alternative methods of producing power to a level that is competitive with that of central station and utility-scale renewable power production.
Regulatory lag, as well as the risk of costs being deemed unrecoverable during the review of the outstanding reconciliations, could have a material adverse impact on PGL’s, and correspondingly our, results of operations, financial position, and liquidity. 2023 Form 10-K 24 WEC Energy Group, Inc.
The risk of costs being deemed 2024 Form 10-K 25 WEC Energy Group, Inc. Table of Contents unrecoverable during the review of the outstanding reconciliations, could have a material adverse impact on PGL’s, and correspondingly our, results of operations, financial position, and liquidity.
Although our utilities have regulatory mechanisms in place for recovering all prudently incurred natural gas costs, our regulators could disallow recovery or order the refund of any costs determined to be imprudent. 2023 Form 10-K 29 WEC Energy Group, Inc.
Although our utilities have regulatory mechanisms in place for recovering all prudently incurred natural gas costs, our regulators could disallow recovery or order the refund of any costs determined to be imprudent.
Continued elevation of, or further increases in, interest rates may adversely affect our results of operations and the ability of our regulated subsidiaries to earn their approved rates of return. High interest rates may also impair our ability to cost-effectively finance capital expenditures and to refinance maturing debt.
Continued elevation of, or further increases in, interest rates may adversely affect our results of operations and the ability of our regulated subsidiaries to 2024 Form 10-K 36 WEC Energy Group, Inc. Table of Contents earn their approved rates of return. High interest rates may also impair our ability to cost-effectively finance capital expenditures and to refinance maturing debt.
The ability to achieve these reductions in CO 2 and methane emissions depends on many external factors, including the ability to make operating refinements, the retirement of less efficient generating units, the development of relevant energy technologies, the use of RNG throughout our natural gas utility systems, and the ability to execute our capital plan.
The ability to achieve these reductions in CO 2 and methane emissions depends on many external factors, including the ability to make operating refinements, the retirement of less efficient generating units, the development of relevant energy technologies, the use of RNG throughout our natural gas utility systems, the ability to procure RTCs, legislative and regulatory support for renewable generation, the ability to maintain reliability with demand growth, and the ability to execute our capital plan.
We continue to evaluate the conversion of certain coal units to natural gas. Our electric and natural gas utilities are also subject to significant liabilities related to the investigation and remediation of environmental impacts at certain of our current and former facilities and at third-party owned sites.
We have also started implementing co-firing with natural gas at certain of our coal-fired units and are evaluating the conversion to natural gas. Our electric and natural gas utilities are also subject to significant liabilities related to the investigation and remediation of environmental impacts at certain of our current and former facilities and at third-party owned sites.
Additionally, an extreme weather event could also cause the cost of natural gas purchased for our natural gas utility customers and for the use of fuel at our generation facilities to be temporarily driven significantly higher than our normal winter weather expectations.
Additionally, an extreme weather event could also cause the cost of natural gas purchased for our natural gas utility customers and for the use of fuel at our generation facilities to be temporarily driven significantly higher than our normal 2024 Form 10-K 30 WEC Energy Group, Inc. Table of Contents winter weather expectations.
Existing, new, or changed rules of these RTOs could result in significant additional fees and increased costs for participation, including the cost of transmission facilities built by others due to changes in transmission rate design. In addition, these RTOs may assess costs resulting from improved transmission reliability, reduced transmission congestion, and firm transmission rights.
Existing, new, or changed rules of these RTOs could result in significant additional fees and increased costs for participation, including the cost of transmission facilities built by others due to changes in transmission rate design.
Several of these rules were challenged or reviewed by agencies under the Biden Administration's Executive Order 13990, which creates additional uncertainty. As a result of these challenges and reviews, existing environmental laws and regulations may be revised or new laws or regulations may be adopted at the federal, state, or local level.
Some of these rules could be challenged or reviewed by agencies under the new presidential administration, which creates additional uncertainty. As a result of these potential challenges and reviews, existing environmental laws and regulations may be revised or new laws or regulations may be adopted at the federal, state, or local level.
Our operations and corporate strategy may be adversely affected by supply chain disruptions and inflation. Our business is dependent on the global supply chain to ensure that equipment, materials, and other resources are available to both expand and maintain services in a safe and reliable manner.
Our business is dependent on the global supply chain to ensure that equipment, materials, and other resources are available to both expand and maintain services in a safe and reliable manner.
Sites also may experience production shutdowns or delayed restoration of production during extreme weather conditions resulting in, among other things, damage to solar panels, icing on wind turbine blades, or restricted access to sites.
Sites also may experience production shutdowns or delayed restoration of production during 2024 Form 10-K 34 WEC Energy Group, Inc. Table of Contents extreme weather conditions resulting in, among other things, damage to solar panels, icing on wind turbine blades, or restricted access to sites.
Reduced government incentives for wind and solar energy, increases in operating and maintenance costs, new regulations, or incentives that favor other forms of energy could reduce the demand for renewable energy and may adversely affect our results of operations.
Reduced government incentives for wind and solar energy, increases in operating and maintenance costs, new regulations, or incentives that favor other forms of energy could reduce the demand for renewable energy and may adversely affect our results of operations. We do not own all the property and other sites on which our projects are located.
Changes in commodity prices could result in: • Higher working capital requirements, particularly related to natural gas inventory, accounts receivable, and cash collateral postings; • Reduced profitability to the extent that lower revenues, increased bad debt, and higher interest expense are not recovered through rates; • Higher rates charged to our customers, which could impact our competitive position; • Reduced demand for energy, which could impact revenues and operating expenses; • Reduced growth prospects from renewable energy projects related to lower cost alternative energy sources and a limited number of purchasers of electricity; and • Shutting down of generation facilities if the cost of generation exceeds the market price for electricity.
Table of Contents • Reduced profitability to the extent that lower revenues, higher fuel costs, increased bad debt, and higher interest expense are not recovered through rates; • Higher rates charged to our customers, which could impact our competitive position; • Reduced demand for energy, which could impact revenues and operating expenses; • Reduced growth prospects from renewable energy projects related to lower cost alternative energy sources and a limited number of purchasers of electricity; and • Shutting down of generation facilities if the cost of generation exceeds the market price for electricity.
Inherent in natural gas distribution and storage activities are a variety of hazards and operational risks, such as leaks, accidental explosions, and mechanical problems, which could materially and adversely affect our results of operations, financial condition, and cash flows.
Inherent in electric generation and distribution and natural gas transportation, distribution, and storage activities are a variety of hazards and operational risks, such as leaks, accidental explosions, mechanical problems, fires, discharges or releases of toxic or hazardous substances or gases, and other environmental risks, which could materially and adversely affect our results of operations, financial condition, and cash flows.
A successful physical or cybersecurity intrusion may occur despite our security measures or those we require of our vendors, including compliance with reliability and critical infrastructure protection standards.
A successful physical or cybersecurity intrusion may occur despite our security measures or those we require of our vendors, including compliance with reliability and critical infrastructure protection standards. Successful cybersecurity intrusions, including those 2024 Form 10-K 32 WEC Energy Group, Inc.
Our electric utilities are subject to mandatory reliability and critical infrastructure protection standards established by the North American Electric Reliability Corporation and enforced by the FERC. The critical infrastructure protection standards focus on controlling access to critical physical and cybersecurity assets. Compliance with the mandatory reliability standards could subject our electric utilities to higher operating costs.
Our electric utilities are subject to mandatory reliability and critical infrastructure protection standards established by the North American Electric Reliability Corporation and enforced by the FERC. The critical infrastructure protection standards focus on controlling access to critical physical and cybersecurity assets. Compliance with the mandatory reliability standards could subject our 2024 Form 10-K 28 WEC Energy Group, Inc.
For example, the city of Chicago is considering an ordinance that would ban the use of natural gas in most new buildings, and the ICC is exploring the role of natural gas in the future and issues related to decarbonization of the natural gas distribution system in Illinois. There have also been efforts to restrict residential natural gas-fired appliances.
For example, the ICC is exploring the role of natural gas in the future and issues related to decarbonization of the natural gas distribution system in Illinois. There have also been efforts to restrict residential natural gas-fired appliances.
Events such as an aging workforce without appropriate replacements, the mismatch of skill sets to future needs, or the unavailability of contract resources may lead to operating challenges or increased costs. These operating challenges include lack of resources, loss of knowledge, and a 2023 Form 10-K 34 WEC Energy Group, Inc.
Events such as an aging workforce without appropriate replacements, the mismatch of skill sets to future needs, or the unavailability of contract resources may lead to operating challenges or increased costs. These operating challenges include lack of resources, loss of knowledge, and a lengthy time period associated with skill development.
Damage to renewable facilities could also reduce operating capacity and cause the declaration of force majeure events. Customers may raise objections to force majeure declarations for these or similar operating issues.
Damage to renewable facilities could also reduce operating capacity and cause the declaration of force majeure events. Customers may raise objections to force majeure declarations for these or similar operating issues. The failure to satisfy minimum operational or availability requirements under the PPAs could result in payment of damages or termination of the PPAs.
We also believe we will be in a position to eliminate coal as an energy source by the end of 2032. We continue to monitor the financial and operational feasibility of taking more aggressive action to further reduce GHG emissions in order to limit future global temperature increases.
We have a goal to eliminate coal as an energy source by the end of 2032. 2024 Form 10-K 27 WEC Energy Group, Inc. Table of Contents We continue to monitor the financial and operational feasibility of taking more aggressive action to further reduce GHG emissions in order to limit future global temperature increases.
We are exposed to the risk that counterparties to various arrangements who owe us money, electricity, natural gas, or other commodities or services will not be able to perform their obligations.
Our counterparties may fail to meet their obligations, including obligations under power purchase, natural gas supply, natural gas pipeline capacity, and transportation agreements. We are exposed to the risk that counterparties to various arrangements who owe us money, electricity, natural gas, or other commodities or services will not be able to perform their obligations.
Advances in technology, or changes in legislation or regulations, could also change the channels through which our customers purchase or use power and natural gas, which could reduce our sales and revenues or increase our expenses. We transport, distribute, and store natural gas, which involves numerous risks that may result in accidents and other operating risks and costs.
Advances in technology, or changes in legislation or regulations, could also change the channels through which our customers purchase or use power and natural gas, which could reduce our sales and revenues or increase our expenses.
In addition, regulators, in a future rate proceeding, may alter the timing or amount of certain costs for which recovery is allowed, such as the case in the ICC's November 2023 rate orders for PGL and NSG.
In addition, regulators, in a future rate proceeding, may alter the timing or amount of certain costs for which recovery is allowed, such as was the case in the ICC's November 2023 rate orders for PGL and NSG. Our subsidiaries sometimes incur significant engineering, design, and equipment costs in advance of receiving necessary regulatory approvals and/or siting or environmental permits.
Existing and future projects may be located on property on other sites occupied under long-term easements, leases, and rights of way. The ownership interests on these properties may be subject to mortgages securing loans or other liens and other easements, lease rights and rights 2023 Form 10-K 33 WEC Energy Group, Inc.
Projects may be located on property or other sites occupied under long-term easements, leases, and rights of way. The ownership interests on these properties may be subject to mortgages securing loans or other liens and other easements, lease rights, and rights of way of third parties that were created previously.
Our business requires substantial capital expenditures for investments in, among other things, capital improvements to our electric generating facilities, electric and natural gas distribution infrastructure, natural gas and LNG storage, and other projects, including projects for environmental compliance. We also expect to continue constructing and investing in renewable energy generating 2023 Form 10-K 30 WEC Energy Group, Inc.
Our business requires substantial capital expenditures for investments in, among other things, capital improvements to our electric generating facilities, electric and natural gas distribution infrastructure, natural gas and LNG storage, and other projects, including projects for environmental compliance.
There can be no assurance that all costs incurred under the QIP rider during the open reconciliation years, which include 2016 through 2023, will be deemed recoverable by the ICC.
This rider continues to be subject to an annual reconciliation whereby costs are reviewed for accuracy and prudency. There can be no assurance that all costs incurred under the QIP rider during the open reconciliation years, which include 2017 through 2023, will be deemed recoverable by the ICC.
If our electric utilities are found to be in noncompliance with the mandatory reliability standards, they could be subject to sanctions, including substantial monetary penalties, or damage to our reputation. 2023 Form 10-K 27 WEC Energy Group, Inc.
Table of Contents electric utilities to higher operating costs. If our electric utilities are found to be in noncompliance with the mandatory reliability standards, they could be subject to sanctions, including substantial monetary penalties, or damage to our reputation.
In addition, these risks could result in serious injury to employees and non-employees, loss of human life, significant damage to property, environmental pollution, impairment of operations, and substantial losses to us.
In addition, these risks could result in serious injury to employees and non-employees, loss of human life, significant damage to property, environmental pollution, impairment of operations, and substantial losses to us. The location of natural gas pipelines and storage facilities near populated areas could increase the level of damages resulting from these risks.
Prior to its expiration, the QIP rider provided PGL with recovery of, and a return on, qualifying natural gas infrastructure investments that are placed in service between regulatory rate reviews. This rider continues to be subject to an annual reconciliation whereby costs are reviewed for accuracy and prudency.
Prior to its expiration in December 2023, the QIP rider provided PGL with recovery of, and a return on, qualifying natural gas infrastructure investments that were placed in service between regulatory rate reviews.
Any losses for which we are not fully insured or that are not covered by insurance at all could materially adversely affect our results of operations, cash flows, and financial position.
Any losses for which we are not fully insured or that are not covered by insurance at all could materially adversely affect our results of operations, cash flows, and financial position. 2024 Form 10-K 39 WEC Energy Group, Inc. Table of Contents ITEM 1B. UNRESOLVED STAFF COMMENTS None.
We accrue liabilities and defer costs (recorded as regulatory assets) incurred in connection with our former manufactured gas plant sites.
We accrue liabilities and defer 2024 Form 10-K 26 WEC Energy Group, Inc. Table of Contents costs (recorded as regulatory assets) incurred in connection with our former manufactured gas plant sites.
If goodwill or other long-lived assets are deemed to be impaired, we may be required to incur a non-cash charge to earnings that could materially adversely affect our results of operations.
If goodwill or other long-lived assets are deemed to be impaired, we may be required to incur a non-cash charge to earnings that could materially adversely affect our results of operations. We may be unable to obtain insurance on acceptable terms or at all, and the insurance coverage we do obtain may not provide protection against all significant losses.
We continue to reduce methane emissions by improving our natural gas 2023 Form 10-K 26 WEC Energy Group, Inc. Table of Contents distribution systems. We set a target across our natural gas distribution operations to achieve net-zero methane emissions by the end of 2030.
We continue to focus on methane emission reductions by improving our natural gas distribution systems. We set a target across our natural gas distribution operations to achieve net-zero methane emissions by the end of 2030.
Any downgrade by the rating agencies could: • Increase borrowing costs under certain existing credit facilities; • Require the payment of higher interest rates in future financings and possibly reduce the pool of creditors; • Decrease funding sources by limiting our access to the commercial paper market; • Limit the availability of adequate credit support for our operations; and • Trigger collateral requirements in various contracts.
Any downgrade by the rating agencies could increase borrowing costs under certain existing credit facilities or future financings, decrease funding sources, limit the availability of adequate credit support for our operations, and trigger collateral requirements in various contracts. The fluctuation in demand for certain commodities and their respective prices could negatively impact our operations.
Supply chain disruptions, including solar panel shortages and delays, increasing material costs, government tariffs, and other factors, could impact the timing of completion of our renewable projects. For example, the UFLPA's prohibition on imports of solar panels manufactured with certain silica-based products originating in Xinjiang, China, has delayed the release of solar panels to us for our renewables projects.
For example, the UFLPA's prohibition on imports of solar panels manufactured with certain silica-based products originating in Xinjiang, China, has and could delay the release of solar panels to us for our renewables projects.
As part of our planning process, we estimate the impacts of changes in customer growth and general economic conditions, weather, and customer energy conservation efforts, but risks still remain.
As part of our planning process, we estimate the impacts of changes in customer growth and general economic conditions, weather, and customer energy conservation efforts, but risks still remain. The growth of data centers and development of associated technology may make it more difficult to accurately forecast customer demand or to recover additional costs.
Wind conditions or solar irradiance that is unfavorable or below our estimates can cause electricity production, and therefore revenues and PTCs earned from non-utility renewable energy facilities, to be substantially below our expectations.
Wind conditions or solar irradiance that is unfavorable or below our estimates can cause electricity production, and therefore revenues and PTCs earned from non-utility renewable energy facilities, to be substantially below our expectations. We based our decisions about which sites to acquire and operate in part on the findings of studies of long-term meteorological data in the proposed area.

… 69 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

6 edited+1 added−1 removed17 unchanged
Biggest changeCybersecurity Risk Management Program Our cybersecurity-related risks are managed through monitoring, defense and response tools, audits and assessments of the program’s effectiveness, industry collaboration, and employee training and awareness.
Biggest changeCybersecurity Risk Management Program Our cybersecurity-related risks are managed through monitoring, defense and response tools, audits and assessments of the program’s effectiveness, industry collaboration, and employee training and awareness. Our cybersecurity risk management program utilizes the cybersecurity framework and maturity models from the National Institute of Standards and Technology and the DOE to continually assess its maturity.
Table of Contents In response to an identified cybersecurity incident, or as it deems appropriate, the CSIRT Steering Committee will assemble and oversee a CSIRT, comprised of appropriate personnel and subject matter experts depending on the scope and severity of the incident, relevant or impacted business units and entities, and type of information or systems potentially compromised by the cybersecurity incident.
In response to an identified cybersecurity incident, or as it deems appropriate, the CSIRT Steering Committee will assemble and oversee a CSIRT, comprised of appropriate personnel and subject matter experts depending on the scope and severity of the incident, relevant or impacted business units and entities, and type of information or systems potentially compromised by the cybersecurity incident.
Our CAO has 24 years of experience at the company, during which time she has held a number of management and leadership positions, including Chief Information Officer, through which she has developed expertise in our IT/OT cybersecurity, data security, and physical security environment and risk profile.
Our CAO has 25 years of experience at the company, during which time she has held a number of management and leadership positions, including Chief Information Officer, through which she has developed expertise in our IT/OT cybersecurity, data security, and physical security environment and risk profile.
Our Enterprise Security Director has over 26 years of experience in IT/OT cybersecurity, data security and physical security, and is a certified information system security professional. She is also a member of numerous state and national cybersecurity organizations.
Our Enterprise Security Director has over 27 years of experience in IT/OT cybersecurity, data security and physical security, and is a certified information system security professional. She is also a member of numerous state and national cybersecurity organizations.
Risk Factors and the risk factor titled "Our operations are subject to risks beyond our control, including but not limited to, cybersecurity intrusions, terrorist or other physical attacks, acts of war, or unauthorized access to personally identifiable information." 2023 Form 10-K 40 WEC Energy Group, Inc. Table of Contents
Risk Factors and the risk factor titled "Our operations are subject to risks beyond our control, including but not limited to, cybersecurity intrusions, terrorist or other physical attacks, acts of war, or unauthorized access to personally identifiable information."
The CSIRT Steering Committee is responsible for overseeing and implementing the Plan in the event of a cybersecurity threat or incident and provides updates regarding the status of the response to senior management, including the CEO, who provide updates and reports regarding cybersecurity incidents to the AOC and/or the Board of Directors at regularly scheduled meetings or more frequently, as needed. 2023 Form 10-K 39 WEC Energy Group, Inc.
Table of Contents threat or incident and provides updates regarding the status of the response to senior management, including the CEO, who provide updates and reports regarding cybersecurity incidents to the AOC and/or the Board of Directors at regularly scheduled meetings or more frequently, as needed.
Removed
Our cybersecurity risk management program utilizes the cybersecurity framework and maturity models from the National Institute of Standards and Technology and the United States Department of Energy to continually assess its maturity.
Added
The CSIRT Steering Committee is responsible for overseeing and implementing the Plan in the event of a cybersecurity 2024 Form 10-K 40 WEC Energy Group, Inc.

Item 2. Properties

Properties — owned and leased real estate

19 edited+3 added−2 removed3 unchanged
Biggest changeMihm Baraga, MI Natural Gas 3 55 Total natural gas-fired plants 45 4,109 Coal-fired plants OCPP Oak Creek, WI Coal 4 1,103 (7) ERGS Oak Creek, WI Coal 2 1,082 (2) (3) Weston Rothschild, WI Coal 2 713 (2) (7) Columbia Portage, WI Coal 2 312 (2) (7) Total coal-fired plants 10 3,210 Wind facilities Glacier Hills Wind Park Cambria, WI Wind 90 162 Blue Sky Green Field Wind Park Fond du Lac, WI Wind 88 145 Crane Creek Wind Farm Howard County, IA Wind 66 99 Red Barn Grant County, WI Wind 28 82 (2) Forward Wind Fond du Lac County, WI Wind 86 62 (2) Montfort Wind Energy Center Montfort, WI Wind 20 30 Total wind facilities 378 580 Solar facilities Two Creeks Manitowoc County, WI Solar 48 100 (2) Badger Hollow I Iowa County, WI Solar 41 100 (2) Badger Hollow II Iowa County, WI Solar 40 100 (2) Total solar facilities 129 300 Other renewable facilities Hydro plants (30 in number) WI and MI Hydro 80 92 (4) (5) Rothschild Biomass Plant Rothschild, WI Biomass 1 46 (6) Total other renewable facilities 81 138 Total electric generation facilities 643 8,337 2023 Form 10-K 41 WEC Energy Group, Inc.
Biggest changeMihm Generating Station Baraga, MI Natural Gas 3 55 Total natural gas-fired plants 44 4,192 Coal-fired plants ERGS Oak Creek, WI Coal 2 1,083 (2) (3) Weston Rothschild, WI Coal 2 708 (2) (7) OCPP Oak Creek, WI Coal 2 599 (7) Columbia Portage, WI Coal 2 308 (2) (7) Total coal-fired plants 8 2,698 Wind facilities Glacier Hills Wind Park Cambria, WI Wind 90 162 Blue Sky Green Field Wind Park Fond du Lac, WI Wind 88 145 Crane Creek Wind Park Howard County, IA Wind 66 99 Red Barn Grant County, WI Wind 28 82 (2) Forward Wind Fond du Lac County, WI Wind 86 62 (2) Montfort Wind Energy Center Montfort, WI Wind 20 30 Total wind facilities 378 580 Solar facilities Paris Kenosha County, WI Solar 53 180 (2) Two Creeks Manitowoc County, WI Solar 48 100 (2) Badger Hollow I Iowa County, WI Solar 41 100 (2) Badger Hollow II Iowa County, WI Solar 40 100 (2) DER Facilities (5 in number) Wisconsin Solar 15 38 (8) Solar Now Wisconsin Solar 29 30 (9) Total solar facilities 226 548 Other renewable facilities Hydro plants (30 in number) WI and MI Hydro 80 96 (4) (5) Rothschild Rothschild, WI Biomass 1 44 (6) Total other renewable facilities 81 140 Total electric generation facilities 737 8,158 (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.
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, DTE Gas Company, Enbridge Gas Inc., Great Lakes Transmission Company, Guardian Pipeline L.L.C., Interstate Power and Light Company, Kinder Morgan Illinois Pipeline, Midwestern Gas Pipeline Company, Natural Gas Pipeline Company of America, Nicor Gas, Northern Border Pipeline Company, Northern Natural Gas Company, Northwest Gas of Cottonwood County, LLC, Northwestern Energy, Panhandle Gas Transmission, SEMCO, Trunkline Gas Pipeline, Vector Pipeline Company, and Viking Gas Transmission.
Our natural gas distribution and gas storage systems included distribution and transmission mains connected to the pipeline transmission systems of Alliance Pipeline, ANR Pipeline Company, Centra Pipelines, Consumers Energy, DTE Gas Company, Enbridge Gas Inc., Great Lakes Transmission Company, Guardian Pipeline L.L.C., Interstate Power and Light Company, Kinder Morgan Illinois Pipeline, Midwestern Gas Pipeline Company, Natural Gas Pipeline Company of America, Nicor Gas, Northern Border Pipeline Company, Northern Natural Gas Company, Northwest Gas of Cottonwood County, LLC, Northwestern Energy, Panhandle Gas Transmission, SEMCO, Trunkline Gas Pipeline, Vector Pipeline Company, and Viking Gas Transmission.
Steam Facilities As of December 31, 2023, 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.
Steam Facilities As of December 31, 2024, 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.
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. WECI has ownership interests in eight wind generating facilities and one solar generating facility.
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. WECI has ownership interests in eight wind and four solar generating facilities.
For more information on recent and pending renewable facility acquisitions, see Note 2, Acquisitions.
For more information on recent renewable facility acquisitions, see Note 2, Acquisitions.
The following table summarizes information on WECI's renewable generating facilities as of December 31, 2023: Name Location Ownership Percentage (%) (1) Number of Generating Units Nameplate Capacity In MW (2) Renewable generating facilities Thunderhead Antelope and Wheeler Counties, Nebraska 90 % 108 299.3 Blooming Grove McLean County, Illinois 90 % 94 260.9 Sapphire Sky McLean County, Illinois 90 % 64 251.0 Samson I Lamar, Franklin, Hopkins and Red River Counties, Texas 80 % (3) 340 250.0 Upstream Antelope County, Nebraska 90 % 81 202.5 Jayhawk Bourbon and Crawford Counties, Kansas 90 % 70 197.4 Tatanka Ridge Deuel County, South Dakota 85 % 56 154.8 Bishop Hill III Henry County, Illinois 90 % 53 132.1 Coyote Ridge Brookings County, South Dakota 80 % 39 97.4 Total renewable generating facilities 905 1,845.4 (1) Invenergy Wind LLC operates these renewable facilities.
The following table summarizes information on WECI's renewable generating facilities as of December 31, 2024: Name Location Ownership Percentage (%) (1) Number of Generating Units Nameplate Capacity In MW (2) Renewable generating facilities Delilah I Lamar, Franklin, Hopkins and Red River Counties, Texas 90.0 % 410 300.0 Thunderhead Antelope and Wheeler Counties, Nebraska 90.0 % 108 299.3 Blooming Grove McLean County, Illinois 90.0 % 94 260.9 Sapphire Sky McLean County, Illinois 90.0 % 64 259.8 Maple Flats Clay County, Illinois 90.0 % 343 250.0 Samson I Lamar, Franklin, Hopkins and Red River Counties, Texas 90.0 % 340 250.0 Upstream Antelope County, Nebraska 90.0 % 81 202.5 Jayhawk Bourbon and Crawford Counties, Kansas 90.0 % 70 197.4 Tatanka Ridge Deuel County, South Dakota 85.6 % 56 154.8 Bishop Hill III Henry County, Illinois 90.0 % 53 132.1 Coyote Ridge Brookings County, South Dakota 81.6 % 39 97.4 Total renewable generating facilities 1,658 2,404.2 (1) Invenergy Services LLC operates these renewable facilities.
Natural Gas Facilities At December 31, 2023, our natural gas properties were located in Illinois, Wisconsin, Minnesota, and Michigan, and consisted of the following: • Approximately 46,400 miles of natural gas distribution mains, • Approximately 1,700 miles of natural gas transmission mains, • Approximately 2.4 million natural gas lateral services, • Approximately 490 natural gas distribution and transmission gate stations, • Approximately 69.3 Bcf of working gas capacities in underground natural gas storage fields: ◦ Bluewater, 27.6 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 1.0 Bcf LNG plant located in southern Wisconsin, • A peak-shaving facility that can store the equivalent of approximately 80 MDth in liquefied petroleum gas located in Illinois, and • LNG storage plants, located in Wisconsin, with a total send-out capability of 173,600 Dth per day.
Natural Gas Facilities At December 31, 2024, our natural gas properties were located in Illinois, Wisconsin, Minnesota, and Michigan, and consisted of the following: • Approximately 47,000 miles of natural gas distribution mains, • Approximately 1,300 miles of natural gas transmission mains, • Approximately 2.4 million natural gas lateral services, • Approximately 510 natural gas distribution and transmission gate stations, • Approximately 67.0 Bcf of working gas capacities in underground natural gas storage fields: ◦ Bluewater, 27.6 Bcf of fields located in southeastern Michigan, ◦ Manlove, a 36.5 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, • Two 1.0 Bcf LNG plants located in southern Wisconsin, • A peak-shaving facility that can store the equivalent of approximately 80 MDth in liquefied petroleum gas located in Illinois, and • LNG storage plants, located in Wisconsin, with a total send-out capability of 273,600 Dth per day.
Values are primarily based on the net dependable expected capacity ratings for summer 2024 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.
Values are primarily based on the net dependable expected capacity ratings for summer 2025 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 2024 Form 10-K 42 WEC Energy Group, Inc.
REGULATED Electric Facilities The following table summarizes information on our electric generation facilities, including owned and jointly owned facilities, as of December 31, 2023: Name Location Fuel Number of Generating Units Capacity In MW (1) Natural gas-fired plants PWGS Port Washington, WI Natural Gas 2 1,217 (3) Fox Energy Center Wrightstown, WI Natural Gas 3 581 Concord Watertown, WI Natural Gas/Oil 4 365 Paris Union Grove, WI Natural Gas/Oil 4 361 VAPP Milwaukee, WI Natural Gas 2 275 Germantown Germantown, WI Natural Gas/Oil 5 263 Whitewater Whitewater, WI Natural Gas/Oil 1 243 De Pere Energy Center De Pere, WI Natural Gas/Oil 1 166 West Marinette Marinette, WI Natural Gas 3 158 Weston Rothschild, WI Natural Gas 7 130 F.
REGULATED Electric Facilities The following table summarizes information on our electric generation facilities, including owned and jointly owned facilities, as of December 31, 2024: Name Location Fuel Number of Generating Units Capacity In MW (1) Natural gas-fired plants PWGS Port Washington, WI Natural Gas 2 1,220 (3) Fox Energy Center Wrightstown, WI Natural Gas 3 581 Paris Union Grove, WI Natural Gas/Oil 4 360 Concord Generating Station Watertown, WI Natural Gas/Oil 4 357 VAPP Milwaukee, WI Natural Gas 2 268 Germantown Power Plant Germantown, WI Natural Gas/Oil 5 255 Whitewater Whitewater, WI Natural Gas/Oil 1 235 West Riverside Beloit, WI Natural Gas 1 191 (2) De Pere Energy Center De Pere, WI Natural Gas/Oil 1 168 West Marinette Power Plant Marinette, WI Natural Gas 3 159 Weston Rothschild, WI Natural Gas 7 130 F.D.
(4) All of our hydroelectric facilities follow FERC guidelines and/or regulations. (5) 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 MWs and 10.3 MWs, respectively.
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 MWs and 10.3 MWs, respectively.
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.
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. 2024 Form 10-K 41 WEC Energy Group, Inc. Table of Contents A.
D. Kuester Negaunee, MI Natural Gas 7 128 West Riverside Beloit, WI Natural Gas 2 85 (2) Pulliam Green Bay, WI Natural Gas 1 82 A. J.
Kuester Generating Station Negaunee, MI Natural Gas 7 128 Pulliam Green Bay, WI Natural Gas 1 85 A.J.
The capacity indicated for each of these units is equal to our subsidiaries' portion of total plant capacity based on its percent of ownership. See Note 8, Jointly Owned Utility Facilities, for more information on our ownership interests. (3) These facilities are part of the Company's non-utility energy infrastructure segment. See B. Non-Utility Energy Infrastructure Segment below.
(2) Our subsidiaries jointly own these facilities with various other unaffiliated entities. The capacity indicated for each of these units is equal to our subsidiaries' portion of total plant capacity based on its percent of ownership. See Note 8, Jointly Owned Utility Facilities, for more information on our ownership interests.
As of December 31, 2023, we operated approximately 35,500 miles of overhead distribution lines and approximately 36,500 miles of underground distribution cable, as well as approximately 430 electric distribution substations and approximately 523,700 line transformers.
As of December 31, 2024, we operated approximately 35,300 miles of overhead distribution lines and approximately 37,100 miles of underground distribution cable, as well as approximately 420 electric distribution substations and approximately 640,100 line transformers.
(2) Nameplate capacity is the amount of energy a source should produce under optimal conditions, such as optimal wind speeds or solar irradiance. (3) In January 2024, WECI acquired an additional 10% ownership interest in Samson I. 2023 Form 10-K 43 WEC Energy Group, Inc. Table of Contents
(2) Nameplate capacity is the amount of energy a source should produce under optimal conditions, such as optimal wind speeds or solar irradiance. In February 2025, WECI completed the acquisition of a 90% ownership interest in Hardin III, a 250 MW wind generating facility in Hardin County, Ohio. 2024 Form 10-K 44 WEC Energy Group, Inc. Table of Contents
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) Our subsidiaries jointly own these facilities with various other unaffiliated entities.
Table of Contents 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.
Table of Contents 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.
Table of Contents installations from the apparent owners or those in possession of those properties, generally without an examination of ownership records or title.
(7) We expect to retire approximately 1,800 MWs of additional fossil-fueled generation by the end of 2031, which includes the planned retirement in 2024-2025 of OCPP Units 5-8, the planned retirement by June 2026 of jointly-owned Columbia Units 1-2, and the planned retirement in 2031 of Weston Unit 3.
The plant also has the ability to burn natural gas if wood waste and wood shavings are not available. (7) We expect to retire approximately 1,200 MWs of additional coal-fired generation, which includes the planned retirements of OCPP Units 7-8, the jointly-owned Columbia Units 1-2 while investigating conversion of at least one unit to natural gas, and Weston Unit 3.
Where distribution lines and services and natural gas distribution mains and 2023 Form 10-K 42 WEC Energy Group, Inc.
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 2024 Form 10-K 43 WEC Energy Group, Inc.
Removed
Table of Contents (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.
Added
ITEM 2. PROPERTIES We own our principal properties outright.
Removed
The plant also has the ability to burn natural gas if wood waste and wood shavings are not available.
Added
(3) These facilities are part of the Company's non-utility energy infrastructure segment. See B. Non-Utility Energy Infrastructure Segment below. (4) All of our hydroelectric facilities follow FERC guidelines and/or regulations. (5) WRPC owns and operates the Castle Rock and Petenwell units.
Added
(8) DER facilities are distribution system interconnected solar projects that are typically 5-10 MWs each. (9) See the Corporate Developments section for more information on the Solar Now program.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

2 edited+0 added−4 removed0 unchanged
Biggest changeAlthough the results of these additional legal proceedings cannot be predicted with certainty, management believes, after consultation with legal counsel, that the ultimate resolution of these proceedings will not have a material impact on our financial statements. Employee Retirement Savings Plan Matter In May 2022, a putative class action, Munt, et al. v.
Biggest changeAlthough the results of these additional legal proceedings cannot be predicted with certainty, management believes, after consultation with legal counsel, that the ultimate resolution of these proceedings will not have a material impact on our financial statements.
In addition to those legal proceedings discussed in Note 24, Commitments and Contingencies, Note 26, Regulatory Environment, and below, we are currently, and from time to time, subject to claims and suits arising in the ordinary course of business.
ITEM 3. LEGAL PROCEEDINGS In addition to those legal proceedings discussed in Note 24, Commitments and Contingencies, and Note 26, Regulatory Environment, we are currently, and from time to time, subject to claims and suits arising in the ordinary course of business.
Removed
ITEM 3. LEGAL PROCEEDINGS The following should be read in conjunction with Note 24, Commitments and Contingencies, and Note 26, Regulatory Environment, in this report for additional information on material legal proceedings and matters related to us and our subsidiaries.
Removed
WEC Energy Group, Inc., et al., was filed in the United States District Court for the Eastern District of Wisconsin - Milwaukee Division.
Removed
The plaintiffs allege that WEC Energy Group and others breached their fiduciary duties with respect to the operation and oversight of the Employee Retirement Saving Plan (the “Plan”) in violation of the Employee Retirement Income Security Act of 1974, as amended. The class is alleged to be participants in the Plan from May 10, 2016 through the date of judgment.
Removed
The complaint seeks injunctive relief, damages, interest, costs, and attorneys' fees. The Company is vigorously defending against the allegations made in this lawsuit and intends to continue to do so.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

13 edited+3 added−4 removed1 unchanged
Biggest changeDirector since February 1, 2022. • WE — Chairman of the Board and Chief Executive Officer since February 1, 2022. President since January 1, 2022. Executive Vice President from June 2020 to December 31, 2021. Executive Vice President and Chief Financial Officer from October 2019 to June 2020.
Biggest changeSenior Executive Vice President and Chief Operating Officer from June 2020 to January 2022. Senior Executive Vice President and Chief Financial Officer from October 2019 to June 2020. Director since February 2022. • WE — Chairman of the Board and Chief Executive Officer since February 2022. President from January 2022 to April 2024.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 2023 Form 10-K 44 WEC Energy Group, Inc. Table of Contents INFORMATION ABOUT OUR EXECUTIVE OFFICERS The names, ages, and positions of our executive officers are listed below along with their business experience during the past five years. All officers are appointed until their resignation, death, or removal pursuant to our Bylaws.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 2024 Form 10-K 45 WEC Energy Group, Inc. Table of Contents INFORMATION ABOUT OUR EXECUTIVE OFFICERS The names, ages, and positions of our executive officers are listed below along with their business experience during the past five years. All officers are appointed until their resignation, death, or removal pursuant to our Bylaws.
Age 48. • WEC Business Services (a centralized service company of WEC Energy Group) – Executive Vice President and Chief Administrative Officer since August 2021. Vice President and Chief Information Officer from January 2019 through July 2021. Director since November 2021. Anthony L. Reese.
Mulroy. Age 49. • WEC Business Services (a centralized service company of WEC Energy Group) – Executive Vice President and Chief Administrative Officer since August 2021. Vice President and Chief Information Officer from January 2019 through July 2021. Director since November 2021. Anthony L. Reese.
Certain executive officers also hold officer and/or director positions at WEC Energy Group's other significant subsidiaries. 2023 Form 10-K 46 WEC Energy Group, Inc. Table of Contents PART II
Certain executive officers also hold officer and/or director positions at WEC Energy Group's other significant subsidiaries. 2024 Form 10-K 47 WEC Energy Group, Inc. Table of Contents PART II
Vice President – Supply Chain and Fleet from January 2019 through November 2021. Director since November 2021. • WE – Executive Vice President – Customer Service and Operations since December 2021. Director since November 2021. Molly A. Mulroy.
Executive Vice President – Customer Service and Operations from December 2021 to June 2024. Vice President – Supply Chain and Fleet from January 2019 through November 2021. Director from November 2021 to December 2024. • WE – Executive Vice President – Customer Service and Operations from December 2021 to June 2024. Director from November 2021 to June 2024. Molly A.
Executive Vice President, Chief Financial Officer and Treasurer from October 2018 to October 2019. Director since April 2016. Xia Liu. Age 54. • WEC Energy Group — Executive Vice President and Chief Financial Officer since June 2020. • WE — Executive Vice President and Chief Financial Officer since June 2020.
Executive Vice President from June 2020 to December 2021. Executive Vice President and Chief Financial Officer from October 2019 to June 2020. Director since April 2016. Xia Liu. Age 55. • WEC Energy Group — Executive Vice President and Chief Financial Officer since June 2020. • WE — Executive Vice President and Chief Financial Officer since June 2020.
There are no family relationships among these officers, nor is there any agreement or understanding between any officer and any other person pursuant to which the officer was selected. Joshua M. Erickson . Age 51. • WEC Business Services (a centralized service company of WEC Energy Group) – Vice President and Deputy General Counsel since August 2021.
There are no family relationships among these officers, nor is there any agreement or understanding between any officer and any other person pursuant to which the officer was selected. Joshua M. Erickson . Age 52. • WEC Business Services (a centralized service company of WEC Energy Group) – Assistant Corporate Secretary since January 2025.
Age 58. • WEC Business Services (a centralized service company of WEC Energy Group) — Executive Vice President - WEC Infrastructure since January 2019. Scott J. Lauber. Age 58. • WEC Energy Group — President and Chief Executive Officer since February 1, 2022. Senior Executive Vice President and Chief Operating Officer from June 2020 to January 31, 2022.
Age 59. • WEC Business Services (a centralized service company of WEC Energy Group) — Executive Vice President - Infrastructure and Generation Planning since October 2023. Executive Vice President from January 2019 to October 2023. Scott J. Lauber. Age 59. • WEC Energy Group — President and Chief Executive Officer since February 2022.
Age 42. • WEC Energy Group — Vice President and Treasurer since October 2019. • WE — Vice President and Treasurer since October 2019. • PGL – Controller - Illinois from September 2015 to September 2019. Mary Beth Straka. Age 59. • WEC Energy Group — Senior Vice President - Corporate Communications and Investor Relations since June 2015.
Age 43. • WEC Energy Group — Vice President and Treasurer since October 2019. • WE — Vice President and Treasurer since October 2019. Mary Beth Straka. Age 60. • WEC Energy Group — Senior Vice President - Corporate Communications and Investor Relations since June 2015.
Age 59. • WEC Energy Group — Executive Vice President, Corporate Secretary and General Counsel since January 2018. • WE — Executive Vice President, Corporate Secretary and General Counsel since January 2018. Director since January 2018. Gale E. Klappa. Age 73. • WEC Energy Group — Executive Chairman since February 2019.
Age 60. • WEC Energy Group — Executive Vice President, Corporate Secretary and General Counsel since January 2018. • WE — Executive Vice President, Corporate Secretary and General Counsel since January 2018. Director since January 2018. Daniel P. Krueger.
Director-Legal Services – Corporate and Finance from June 2015 through July 2021. Robert M. Garvin. Age 57. • WEC Energy Group — Executive Vice President - External Affairs since June 2015. • WEC Business Services (a centralized service company of WEC Energy Group) – Executive Vice President - External Affairs since January 2019. William J. Guc.
Age 58. • WEC Energy Group — Executive Vice President - External Affairs since June 2015. • WEC Business Services (a centralized service company of WEC Energy Group) — Executive Vice President - External Affairs since January 2019. William J. Guc. Age 55. • WEC Energy Group — Controller since October 2015.
Age 54. • WEC Energy Group — Controller since October 2015. Vice President since June 2015. • WE — Vice President and Controller since October 2015. Assistant Corporate Secretary since January 2020. Margaret C. Kelsey.
Vice President since June 2015. • WE — Vice President and Controller since October 2015. Assistant Corporate Secretary from January 2020 to December 2024. Michael W. Hooper .
CenterPoint Energy, Inc. is a public utility holding company whose operating subsidiaries provide electric and natural gas service to customers in parts of the South and Midwest. • Georgia Power Company — Executive Vice President, Chief Financial Officer and Treasurer from October 2017 to April 2019.
CenterPoint Energy, Inc. is a public utility holding company whose operating subsidiaries provide electric and natural gas service to customers in parts of the South and Midwest. 2024 Form 10-K 46 WEC Energy Group, Inc. Table of Contents William Mastoris. Age 61. • WEC Business Services (a centralized service company of WEC Energy Group) – Vice President since June 2024.
Removed
Chairman of the Board and Chief Executive Officer from October 2017 to February 2019, and from May 2004 to May 2016. Non-Executive Chairman of the Board from May 2016 to October 2017. President from April 2003 to August 2013. Director since December 2003. • WE — Director since January 2018, and from December 2003 to May 2016.
Added
Vice President and Deputy General Counsel since August 2021. Director-Legal Services – Corporate and Finance from June 2015 through July 2021. • WE — Assistant Corporate Secretary since January 2025. Robert M. Garvin.
Removed
Chairman of the Board from January 2018 to February 2019, and from May 2004 to May 2016. Chief Executive Officer from January 2018 to February 2019, and from August 2003 to May 2016. President from April 2003 to June 2015. Daniel P. Krueger.
Added
Age 51. • WEC Business Services (a centralized service company of WEC Energy Group) — Director since April 2024. • WE — President since April 2024. • NiSource, Inc. — Senior Vice President and President, NIPSCO from May 2020 to March 2024. Senior Vice President, Regulatory, Legislative Affairs and Strategy from 2018 to 2020.
Removed
Senior Executive Vice President and Chief Financial Officer from October 2019 to June 2020. Senior Executive Vice President, Chief Financial Officer and Treasurer from February 2019 to October 2019. Executive Vice President, Chief Financial Officer and Treasurer from October 2018 to February 2019.
Added
NiSource is a public utility holding company whose operating subsidiaries provide natural gas and electric service to customers across Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and Virginia. NIPSCO is a public natural gas and electric utility company in Indiana. Margaret C. Kelsey.
Removed
Georgia Power Company is a utility subsidiary of The Southern Company that provides electric service to customers throughout Georgia. 2023 Form 10-K 45 WEC Energy Group, Inc. Table of Contents William Mastoris. Age 60. • WEC Business Services (a centralized service company of WEC Energy Group) – Executive Vice President – Customer Service and Operations since December 2021.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

1 edited+0 added−0 removed3 unchanged
Biggest changeITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Number of Common Shareholders As of January 31, 2024, based upon the number of WEC Energy Group shareholder accounts (including accounts in our stock purchase and dividend reinvestment plan), we had approximately 36,000 registered shareholders.
Biggest changeITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Number of Common Shareholders As of January 31, 2025, based upon the number of WEC Energy Group shareholder accounts (including accounts in our stock purchase and dividend reinvestment plan), we had approximately 34,000 registered shareholders.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

256 edited+173 added−64 removed116 unchanged
Biggest changeYear Ended December 31 (in millions) 2023 2022 B (W) Electric revenues $ 5,010.8 $ 4,971.8 $ 39.0 Fuel and purchased power 1,615.9 1,881.4 265.5 Total electric margins 3,394.9 3,090.4 304.5 Natural gas revenues 1,615.1 1,988.7 (373.6) Cost of natural gas sold 894.7 1,327.4 432.7 Total natural gas margins 720.4 661.3 59.1 Total electric and natural gas margins 4,115.3 3,751.7 363.6 Other operation and maintenance 1,531.3 1,351.3 (180.0) Depreciation and amortization 851.5 754.7 (96.8) Property and revenue taxes 179.2 182.6 3.4 Operating income 1,553.3 1,463.1 90.2 Other income, net 137.6 99.9 37.7 Interest expense 601.0 555.9 (45.1) Income before income taxes 1,089.9 1,007.1 82.8 Income tax expense 237.4 247.5 10.1 Preferred stock dividends of subsidiary 1.2 1.2 — Net income attributed to common shareholders $ 851.3 $ 758.4 $ 92.9 The following table shows a breakdown of other operation and maintenance: Year Ended December 31 (in millions) 2023 2022 B (W) Operation and maintenance not included in line items below $ 635.1 $ 655.8 $ 20.7 Transmission (1) 540.4 430.9 (109.5) Regulatory amortizations and other pass through expenses (2) 208.2 145.5 (62.7) We Power (3) 141.4 108.1 (33.3) Earnings sharing mechanisms (4) 5.6 (13.5) (19.1) Other 0.6 24.5 23.9 Total other operation and maintenance $ 1,531.3 $ 1,351.3 $ (180.0) (1) Represents transmission expense that our electric utilities are authorized to collect in rates.
Biggest changeThe following table shows a breakdown of other operation and maintenance: Year Ended December 31 B (W) B (W) (in millions) 2024 2023 2022 2024 vs 2023 2023 vs 2022 Operation and maintenance not included in line items below $ 659.6 $ 635.1 $ 655.8 $ (24.5) $ 20.7 Transmission (1) 543.3 540.4 430.9 (2.9) (109.5) Regulatory amortizations and other pass through expenses (2) 215.9 208.2 145.5 (7.7) (62.7) We Power (3) 131.4 141.4 108.1 10.0 (33.3) Earnings sharing mechanisms (4) (4.3) 5.6 (13.5) 9.9 (19.1) Other 2.0 0.6 24.5 (1.4) 23.9 Total other operation and maintenance $ 1,547.9 $ 1,531.3 $ 1,351.3 $ (16.6) $ (180.0) (1) Represents transmission expense that our electric utilities are authorized to collect in rates.
Partially offsetting these increases in operating expenses were lower natural gas distribution and maintenance costs and a decrease in expenses related to charitable contributions.
Partially offsetting these increases in operating expenses were lower natural gas distribution and maintenance costs and a decrease in expenses related to charitable contributions.
These liabilities include AROs, liabilities for the remediation of manufactured gas plant sites, and liabilities related to the accounting treatment for uncertainty in income taxes. For additional information on these liabilities, see Note 9, Asset Retirement Obligations, Note 24, Commitments and Contingencies, and Note 16, Income Taxes, respectively.
These liabilities include AROs, liabilities for the remediation of manufactured gas plant sites, and liabilities related to the accounting treatment for uncertainty in income taxes. For additional information on these liabilities, see Note 9, Asset Retirement Obligations, Note 16, Income Taxes, and Note 24, Commitments and Contingencies, respectively.
In response to this FERC decision, requests for the FERC to rehear the November 2019 Order in its entirety were filed by various parties. ◦ May 2020 Order – On May 21, 2020, the FERC issued an order that granted in part and denied in part the requests to rehear the November 2019 Order.
In response to this FERC decision, requests for the FERC to rehear the November 2019 Order in its entirety were filed by various parties. • May 2020 FERC Order – On May 21, 2020, the FERC issued an order that granted in part and denied in part the requests to rehear the November 2019 Order.
We monitor the global supply chain, and related disruptions, in order to ensure we are able to procure the necessary materials and other resources necessary to both maintain our energy services in a safe and reliable manner and to grow our infrastructure in accordance with our capital plan.
We monitor the global supply chain, and related disruptions, in order to ensure we are able to procure the materials and other resources necessary to both maintain our energy services in a safe and reliable manner and to grow our infrastructure in accordance with our capital plan.
Each factor below reflects an evaluation of the change based on a change in that assumption only.
Each factor below reflects an evaluation of the change based on a change in that assumption only.
These upgrades include addressing our aging infrastructure, system hardening, and the AMI program. AMI is an integrated system of smart meters, communication networks, and data management systems that enable two-way communication between utilities and customers. We are committed to investing in solar, wind, battery storage, and clean natural gas-fired generation.
These upgrades include addressing our aging infrastructure, system hardening, and the AMI program. AMI is an integrated system of smart meters, communication networks, and data management systems that enable two-way communication between utilities and customers. We are committed to investing in solar, wind, battery storage, and natural gas-fired generation.
This amount is net of a deferral of $11.9 million approved by the PSCW in June 2023, retroactive to December 1, 2022, in response to a FERC order eliminating reactive power compensation to our utilities, as discussed in electric margins above. • A $96.8 million increase in depreciation and amortization, driven by assets being placed into service as we continue to execute on our capital plan. • A $62.7 million increase in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above. • A $33.3 million increase in other operation and maintenance expense related to the We Power leases, as discussed in the notes under the other operation and maintenance table above. • A $29.4 million increase in other operating and maintenance related to our power plants, driven by increases to certain plant-related regulatory assets in 2022 as a result of the December 2022 Wisconsin rate orders as well as operating costs associated with Whitewater, which we purchased in January 2023.
This amount is net of a deferral of $11.9 million approved by the PSCW in June 2023, retroactive to December 1, 2022, in response to a FERC order eliminating reactive power compensation to our utilities, as discussed above. • A $96.8 million increase in depreciation and amortization, driven by assets being placed into service as we continue to execute on our capital plan. • A $62.7 million increase in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above. • A $33.3 million increase in other operation and maintenance expense related to the We Power leases, as discussed in the notes under the other operation and maintenance table above. • A $29.4 million increase in other operating and maintenance related to our power plants, driven by increases to certain plant-related regulatory assets in 2022 as a result of the December 2022 Wisconsin rate orders as well as operating costs associated with Whitewater, which we purchased in January 2023.
These decreases in operating income were partially offset by: • Recognition of $6.4 million in revenue related to our Blooming Grove wind park in 2023 for a capacity payment received from PJM Interconnection that was associated with a December 2022 cold weather event.
These decreases in operating income were partially offset by: • The recognition of $6.4 million in revenue related to our Blooming Grove wind park in 2023 for a capacity payment received from PJM Interconnection that was associated with a December 2022 cold weather event.
Table of Contents Significant Capital Projects We have several capital projects that will require significant capital expenditures over the next three years and beyond. All projected capital requirements are subject to periodic review and may vary significantly from estimates, depending on a number of factors.
Table of Contents Significant Capital Projects We have several capital projects and acquisitions that will require significant capital expenditures over the next three years and beyond. All projected capital requirements are subject to periodic review and may vary significantly from estimates, depending on a number of factors.
Table of Contents These increases in operating expenses were partially offset by: • A $43.8 million decrease in natural gas distribution and maintenance costs, primarily related to maintaining the natural gas infrastructure during 2023, compared with 2022. • A $25.0 million decrease in expenses related to contributions to charitable projects supporting our customers and the communities within our service territories during 2023, compared with 2022. • A $9.4 million decrease in expenses associated with the settlement of legal claims during 2022. • An $8.7 million decrease in property and revenue taxes, primarily driven by lower property and use taxes. • A $3.7 million decrease in customer service expense due to lower call center expense and metering costs. • A $3.0 million decrease in benefit costs, primarily due to lower stock-based compensation expense related to plan performance during 2023.
These increases in operating expenses were partially offset by: • A $43.8 million decrease in natural gas distribution and maintenance costs, primarily related to maintaining the natural gas infrastructure during 2023, compared with 2022. • A $25.0 million decrease in expenses related to contributions to charitable projects supporting our customers and the communities within our service territories during 2023, compared with 2022. • A $9.4 million decrease in expenses associated with the settlement of legal claims during 2022. • An $8.7 million decrease in property and revenue taxes, primarily driven by lower property and use taxes. • A $3.7 million decrease in customer service expense due to lower call center expense and metering costs. • A $3.0 million decrease in benefit costs, primarily due to lower stock-based compensation expense related to plan performance during 2023.
The capacity payment was subject to a FERC complaint, so we recognized this as revenue in 2023 when FERC issued an order denying that complaint. • A $4.4 million positive impact from Sapphire Sky Wind, a new wind facility acquired in February 2023.
The capacity payment was subject to a FERC complaint, so we recognized this as revenue in 2023 when FERC issued an order denying that complaint. • A $4.4 million positive impact from Sapphire Sky, a wind facility acquired in February 2023.
Circuit Court of Appeals ◦ August 2022 Decision – Since several petitions for review were filed with the D.C. Circuit Court of Appeals concerning this ROE complaint, the D.C. Circuit Court of Appeals issued an opinion on August 9, 2022, addressing these petitions. In its August 2022 Decision, the D.C.
Circuit Court of Appeals Opinion – Since several petitions for review were filed with the D.C. Circuit Court of Appeals concerning this ROE complaint, the D.C. Circuit Court of Appeals issued an opinion on August 9, 2022, addressing these petitions. In its August 2022 Opinion, the D.C.
The refunds resulting from these orders and opinion are also described below. • Orders Issued by the FERC ◦ September 2016 Order – On September 28, 2016, the FERC issued an order reducing the base ROE for MISO transmission owners to 10.32% for the period covered by the first complaint, November 12, 2013 through February 11, 2015 and September 28, 2016 going forward. ◦ November 2019 Order – On November 21, 2019, the FERC issued another order after directing MISO transmission owners and other stakeholders to provide briefs and comments on a proposed change to the methodology for calculating base ROE.
The refunds resulting from these orders and opinion are also described below. • September 2016 FERC Order – On September 28, 2016, the FERC issued an order reducing the base ROE for MISO transmission owners to 10.32% for the period covered by this complaint, November 12, 2013 through February 11, 2015 and September 28, 2016 going forward. • November 2019 FERC Order – On November 21, 2019, the FERC issued another order after directing MISO transmission owners and other stakeholders to provide briefs and comments on a proposed change to the methodology for calculating base ROE.
The amount, type, and timing of any financings in 2024, as well as in subsequent years, will be contingent on investment opportunities and our cash requirements and will depend upon prevailing market conditions, regulatory approvals for certain subsidiaries, and other factors. Our regulated utilities plan to maintain capital structures consistent with those approved by their respective regulators.
The amount, type, and timing of any financings in 2025, as well as in subsequent years, will be contingent on investment opportunities and our cash requirements and will depend upon prevailing market conditions, regulatory approvals for certain subsidiaries, and other factors. Our regulated utilities plan to maintain capital structures consistent with those approved by their respective regulators.
The significant factors impacting the increase in other operating expenses were: • A $178.9 million impairment associated with the ICC orders received in November 2023 related to PGL's and NSG's rate reviews, which included the disallowance of previously incurred capital costs at PGL and NSG, in the amount of $177.2 million and $1.7 million, respectively.
The significant factors impacting the decrease in other operating expenses were: • A $178.9 million impairment associated with the ICC orders received in November 2023 related to PGL's and NSG's rate reviews, which included the disallowance of previously incurred capital costs at PGL and NSG, in the amount of $177.2 million and $1.7 million, respectively.
See Note 17, Fair Value Measurements, for more information on our investments held in the Integrys rabbi trust. • An $86.9 million decrease in net income attributed to common shareholders at the Illinois segment, driven by higher operating expenses, primarily due to an impairment associated with the ICC's disallowance of certain incurred capital costs in its November 2023 rate orders for PGL and NSG, and the year-over-year impact of a gain recorded in 2022 on the sale of certain real estate by PGL.
See Note 17, Fair Value Measurements, for more information on our investments held in the Integrys rabbi trust. • An $86.9 million decrease in net income attributed to common shareholders at the Illinois segment, driven by higher operating expenses, primarily due to a $178.9 million pre-tax impairment associated with the ICC's disallowance of certain incurred capital costs in its November 2023 rate orders for PGL and NSG, and the year-over-year impact of a gain recorded in 2022 on the sale of certain real estate by PGL.
The FERC's modified methodology further reduced the base ROE for all MISO transmission owners, including ATC, to 9.88% for the period covered by the first complaint.
The FERC's modified methodology further reduced the base ROE for all MISO transmission owners, including ATC, to 9.88% for the period covered by the complaint.
Future recovery of regulatory assets, including the timeliness of recovery and our ability to earn a reasonable return, is not assured and is generally subject to review by regulators in rate proceedings for matters such as prudence and reasonableness. Once approved, the regulatory assets and liabilities are amortized into earnings over the rate recovery or refund period.
Table of Contents Future recovery of regulatory assets, including the timeliness of recovery and our ability to earn a reasonable return, is not assured and is generally subject to review by regulators in rate proceedings for matters such as prudence and reasonableness. Once approved, the regulatory assets and liabilities are amortized into earnings over the rate recovery or refund period.
Table of Contents Subject to other factors affecting the credit markets as a whole, we believe our current ratings should provide a significant degree of flexibility in obtaining funds on competitive terms. However, these security ratings reflect the views of the rating agency only. An explanation of the significance of these ratings may be obtained from the rating agency.
Subject to other factors affecting the credit markets as a whole, we believe our current ratings should provide a significant degree of flexibility in obtaining funds on competitive terms. However, these security ratings reflect the views of the rating agency only. An explanation of the significance of these ratings may be obtained from the rating agency.
The underlying assumptions and estimates used in the impairment tests were made as of a point in time. Subsequent changes in these assumptions and estimates could change the results of the tests. For all of our reporting units that carried a goodwill balance at July 1, 2023, the fair value exceeded its carrying value by over 50%.
The underlying assumptions and estimates used in the impairment tests were made as of a point in time. Subsequent changes in these assumptions and estimates could change the results of the tests. For all of our reporting units that carried a goodwill balance at July 1, 2024, the fair value exceeded its carrying value by over 50%.
Table of Contents Income Tax Benefit The income tax benefit at the non-utility energy infrastructure segment increased $47.5 million during 2023, compared with 2022. The increase was primarily due to a $37.5 million increase in PTCs in 2023, driven by the acquisition of additional renewable generation facilities in the second half of 2022 and in the first quarter of 2023.
Income Tax Benefit The income tax benefit at the non-utility energy infrastructure segment increased $47.5 million during 2023, compared with 2022. The increase was primarily due to a $37.5 million increase in PTCs in 2023, driven by the acquisition of additional renewable generation facilities in the second half of 2022 and in the first quarter of 2023.
Under this program, WE has energized 28 Solar Now projects and currently has another one under construction, together totaling more than 30 MWs. The second program, the DRER pilot, is designed to allow large commercial and industrial customers to access renewable resources that WE would operate.
Under this program, WE has energized 29 Solar Now projects and currently has another one under construction, together totaling more than 30 MWs. The second program, the DRER pilot, is designed to allow large commercial and industrial customers to access renewable resources that WE would operate.
At December 31, 2023, we were in compliance with all such covenants related to outstanding short-term and long-term debt. We expect to be in compliance with all such debt covenants for the foreseeable future. See Note 13, Short-Term Debt and Lines of Credit, Note 14, Long-Term Debt, and Note 11, Common Equity, for more information.
At December 31, 2024, we were in compliance with all such covenants related to outstanding short-term and long-term debt. We expect to be in compliance with all such debt covenants for the foreseeable future. See Note 11, Common Equity, Note 13, Short-Term Debt and Lines of Credit, and Note 14, Long-Term Debt, for more information.
Operating Efficiency We continually look for ways to optimize the operating efficiency of our company and will continue to do so under the ESG Progress Plan. For example, we are making progress on our AMI program, replacing aging meter-reading equipment on both our network and customer property.
Operating Efficiency We continually look for ways to optimize the operating efficiency of our company and will continue to do so under our capital plan. For example, we are making progress on our AMI program, replacing aging meter-reading equipment on both our network and customer property.
See Note 6, Regulatory Assets and Liabilities, for more information on our regulatory assets and liabilities. Goodwill We completed our annual goodwill impairment tests for all of our reporting units that carried a goodwill balance as of July 1, 2023. No impairments were recorded as a result of these tests.
See Note 6, Regulatory Assets and Liabilities, for more information on our regulatory assets and liabilities. Goodwill We completed our annual goodwill impairment tests for all of our reporting units that carried a goodwill balance as of July 1, 2024. No impairments were recorded as a result of these tests.
See Note 26, Regulatory Environment, for more information. This positive impact was partially offset by a decrease in natural gas margins due to lower sales volumes and increases in depreciation and amortization and interest expense. Non-GAAP Financial Measures The discussions below address the contribution of each of our segments to net income attributed to common shareholders.
See Note 26, Regulatory Environment, for more information. This positive impact was partially offset by a decrease in margins due to lower sales volumes and increases in depreciation and amortization and interest expense. Non-GAAP Financial Measures The discussions below address the contribution of each of our utility segments to net income attributed to common shareholders.
These decreases in earnings were partially offset by: • A $92.9 million increase in net income attributed to common shareholders at the Wisconsin segment, driven by an increase in electric and natural gas margins related to the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2023, and a positive year-over-year impact from collections of fuel and purchased power costs.
These decreases in earnings were partially offset by: • A $92.9 million increase in net income attributed to common shareholders at the Wisconsin segment, driven by an increase in margins related to the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2023, and a positive year-over-year impact from collections of fuel and purchased power costs.
In addition to the above, our balance sheet at December 31, 2023 included various other liabilities that, due to the nature of the liabilities, the amount and timing of future payments cannot be determined with certainty.
In addition to the above, our balance sheet at December 31, 2024 included various other liabilities that, due to the nature of the liabilities, the amount and timing of future payments cannot be determined with certainty.
Various parties then filed requests to rehear certain parts of the May 2020 Order with the FERC. ◦ November 2020 Order – In response to the rehearing requests filed concerning certain parts of the May 2020 Order, the FERC issued an order in November 2020 that confirmed the ROE previously authorized in its May 2020 Order. ◦ Refunds – Due to the base ROE changes resulting from these FERC orders, ATC was required to provide refunds, with interest, for the 15-month refund period from November 12, 2013 through February 11, 2015 and for the period from September 28, 2016 through November 19, 2020.
Various parties then filed requests to rehear certain parts of the May 2020 Order with the FERC. • November 2020 FERC Order – In response to the rehearing requests filed concerning certain parts of the May 2020 Order, the FERC issued an order in November 2020 that confirmed the ROE previously authorized in its May 2020 Order. • Refunds for FERC Orders Issued Prior to October 2024 – Due to the base ROE changes resulting from the FERC orders issued prior to October 2024, ATC was required to provide refunds, with interest, for the 15-month refund period from November 12, 2013 through February 11, 2015 and for the period from September 28, 2016 through November 19, 2020.
As of December 31, 2023, these trusts had investments of approximately $3.5 billion, consisting of fixed income and equity securities, that are subject to the volatility of the stock market and interest rates.
As of December 31, 2024, these trusts had investments of approximately $3.5 billion, consisting of fixed income and equity securities, that are subject to the volatility of the stock market and interest rates.
Return on Equity Incentive for Membership in a Transmission Organization The FERC currently allows transmission utilities, including ATC, to increase their ROE by 50 basis points as an incentive for membership in a transmission organization, such as MISO. This incentive was established to stimulate infrastructure development and to support the evolving electric grid.
Table of Contents Return on Equity Incentive for Membership in a Transmission Organization The FERC currently allows transmission utilities, including ATC, to increase their ROE by 50 basis points as an incentive for membership in a transmission organization, such as MISO. This incentive was established to stimulate infrastructure development and to support the evolving electric grid.
While our suppliers were able to provide the CBP sufficient documentation to meet WRO compliance requirements, and we expect the same will be true for UFLPA purposes, we cannot currently predict what, if any, long-term impact the UFLPA will have on the overall supply of solar panels into the United States and whether we will experience any further impacts to the timing and cost of solar projects included in our long-term capital plan.
While our suppliers have been able to provide the CBP sufficient documentation to meet WRO and UFLPA compliance requirements, and we expect the same will be true for subsequent projects, we cannot currently predict what, if any, long-term impact the UFLPA will have on the overall supply of solar panels into the United States and whether we will experience any further impacts to the timing and cost of solar projects included in our long-term capital plan.
Interest Expense Interest expense at the Illinois segment increased $15.1 million during 2023, compared with 2022, driven by higher long-term debt balances related to incremental borrowings in both 2023 and 2022, primarily related to additional capital investment. Also contributing to the increase was higher short-term debt interest rates.
Table of Contents Interest Expense Interest expense at the Illinois segment increased $15.1 million during 2023, compared with 2022, driven by higher long-term debt balances related to incremental borrowings in both 2023 and 2022, primarily related to additional capital investment. Also contributing to the increase was higher short-term debt interest rates.
Credit Rating Risk Cash collateral postings and prepayments made with external parties, including postings related to exchange-traded contracts, and cash collateral posted by external parties were immaterial as of December 31, 2023.
Credit Rating Risk Cash collateral postings and prepayments made with external parties, including postings related to exchange-traded contracts, and cash collateral posted by external parties were immaterial as of December 31, 2024.
Infrastructure Investment and Jobs Act In November 2021, President Biden signed into law the Infrastructure Investment and Jobs Act, which provides for approximately $1.2 trillion of federal spending over a five year period, including approximately $85 billion for investments in power, utilities, and renewables infrastructure across the United States.
Infrastructure Investment and Jobs Act and Inflation Reduction Act In November 2021, former President Biden signed into law the Infrastructure Investment and Jobs Act, which provides for approximately $1.2 trillion of federal spending over a five year period, including approximately $85 billion for investments in power, utilities, and renewables infrastructure across the United States.
The financial risks associated with investment returns are mitigated at our Wisconsin utilities through the requirement that WE, WPS, and WG implement escrow accounting treatment for pension and OPEB costs in 2023 and 2024, as required by the December 2022 rate order issued by the PSCW.
The financial risks associated with investment returns are mitigated at our Wisconsin utilities through the requirement that WE, WPS, and WG implement escrow accounting treatment for pension and OPEB costs in 2023 through 2026, as required by the December 2022 and December 2024 rate orders issued by the PSCW.
By the end of 2030, we expect to use coal as a backup fuel only, and we believe we will be in a position to eliminate coal as an energy source by the end of 2032.
By the end of 2030, we expect to use coal as a backup fuel only and to be in a position to eliminate coal as an energy source by the end of 2032.
The higher earnings were driven by an increase in electric and natural gas margins related to the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2023, and a positive year-over-year impact from collections of fuel and purchased power costs.
The higher earnings were driven by an increase in margins related to the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2023, and a positive year-over-year impact from collections of fuel and purchased power costs.
In 2022, WPS was unable to defer a portion of its under-collected fuel and purchased power costs due to earning an ROE in excess of the PSCW authorized amount. • A $15.7 million increase in margins during 2023, related to the expiration of a capacity purchase contract driven by the acquisition of the Whitewater facility, effective January 1, 2023.
In 2022, WPS was unable to defer a portion of its under-collected fuel and purchased power costs due to earning an ROE in excess of the PSCW authorized amount. • A $15.7 million increase in margins during 2023, related to the expiration of a capacity purchase contract in connection with the acquisition of the Whitewater facility, effective January 1, 2023.
Inflation Reduction Act In August 2022, President Biden signed into law the IRA, which provides for $258 billion in energy-related provisions over a 10-year period. The provisions of the IRA are intended to, among other things, lower gasoline and electricity prices, incentivize domestic clean energy investment, manufacturing, and production, and promote reductions in carbon emissions.
In August 2022, former President Biden signed into law the IRA, which provides for $258 billion in energy-related provisions over a 10-year period. The provisions of the IRA are intended to, among other things, lower gasoline and electricity prices, incentivize domestic clean energy investment, manufacturing, and production, and promote reductions in carbon emissions.
Future natural gas investment opportunities in Illinois could be negatively impacted depending upon the outcomes. See Note 26, Regulatory Environment, for more information regarding the November 2023 ICC rate order. Chicago Decarbonization Efforts The CABO was introduced at a meeting of the Chicago city council held on January 24, 2024.
Future natural gas investment opportunities in Illinois could be negatively impacted depending upon the outcome. See Note 26, Regulatory Environment, for more information regarding the November 2023 ICC rate order. Chicago Decarbonization Efforts The CABO was introduced at a meeting of the Chicago city council held in January 2024.
Our significant cash requirements primarily consist of capital and investment expenditures, payments to retire and pay interest on long-term debt, the payment of common stock dividends to our shareholders, and the funding of our ongoing operations. Our significant cash requirements are discussed in further detail below. 2023 Form 10-K 66 WEC Energy Group, Inc.
Our significant cash requirements primarily consist of capital and investment expenditures, payments to retire and pay interest on long-term debt, the payment of common stock dividends to our shareholders, and the funding of our ongoing operations. Our significant cash requirements are discussed in further detail below. 2024 Form 10-K 77 WEC Energy Group, Inc.
Significant Financing Activities For more information on our financing activities, see Note 13, Short-Term Debt and Lines of Credit, and Note 14, Long-Term Debt. Cash Requirements We require funds to support and grow our businesses.
See Note 11, Common Equity, for more information. Significant Financing Activities For more information on our financing activities, see Note 13, Short-Term Debt and Lines of Credit, and Note 14, Long-Term Debt. Cash Requirements We require funds to support and grow our businesses.
Table of Contents Economic Conditions We have electric and natural gas utility operations that serve customers in Wisconsin, Illinois, Minnesota, and Michigan. As such, we are exposed to market risks in the regional Midwest economy.
Economic Conditions We have electric and natural gas utility operations that serve customers in Wisconsin, Illinois, Minnesota, and Michigan. As such, we are exposed to market risks in the regional Midwest economy.
The amounts of securities authorized by the appropriate regulatory authorities, as well as the securities registered under the 1933 Act, are closely monitored and appropriate filings are made to ensure flexibility in the capital markets. At December 31, 2023, our current liabilities exceeded our current assets by $2,319.1 million.
The amounts of securities authorized by the appropriate regulatory authorities, as well as the securities registered under the 1933 Act, are closely monitored and appropriate filings are made to ensure flexibility in the capital markets. At December 31, 2024, our current liabilities exceeded our current assets by $1,930.2 million.
These positive impacts were partially offset by a decrease in electric and natural gas margins due to lower sales volumes, and higher operating expenses, including increases in expenses related to transmission, depreciation and amortization, and regulatory amortizations.
These positive impacts were partially offset by a decrease in margins due to lower sales volumes, and higher operating expenses, including increases in expenses related to transmission, depreciation and amortization, and regulatory amortizations.
Table of Contents Other Operating Expenses (includes other operation and maintenance, depreciation and amortization, and property and revenue taxes) Other operating expenses at the Wisconsin segment increased $273.4 million during 2023, compared with 2022.
Other Operating Expenses (includes other operation and maintenance, depreciation and amortization, and property and revenue taxes) Other operating expenses at the Wisconsin segment increased $273.4 million during 2023, compared with 2022.
The goal of this proceeding will be to explore the issues involved with decarbonization of the gas distribution system in Illinois and recommend any future ICC action or legislative changes needed. It will include the formal exploration and consideration of the role of natural gas in the future, including in the context of the state’s environmental and energy policy goals.
The goal of this proceeding is to explore the issues involved with decarbonization of the gas distribution system in Illinois and recommend any future ICC action or legislative changes needed. It includes the formal exploration and consideration of the role of natural gas in the future, including in the context of the state’s environmental and energy policy goals.
Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources in Part II of our 2022 Annual Report on Form 10-K, which was filed with the SEC on February 23, 2023.
Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources in Part II of our 2023 Annual Report on Form 10-K, which was filed with the SEC on February 22, 2024.
If WE had a sub-investment grade credit rating at December 31, 2023, it could have been required to post $100 million of additional collateral or other assurances pursuant to the terms of a PPA.
If WE had a sub-investment grade credit rating at December 31, 2024, it could have been required to post $103 million of additional collateral or other assurances pursuant to the terms of a PPA.
Table of Contents Petitions Before PSCW Regarding Third-Party Financed Distributed Energy Resources In May 2022, two petitions were filed with the PSCW requesting a declaratory ruling that the owner of a third-party financed DER is not a "public utility" as defined under Wisconsin law and, therefore, is not subject to the PSCW’s jurisdiction under any statute or rule regulating public utilities.
Petitions Before PSCW Regarding Third-Party Financed Distributed Energy Resources In May 2022, a petition was filed with the PSCW requesting a declaratory ruling that the owner of a third-party financed DER is not a "public utility" as defined under Wisconsin law and, therefore, is not subject to the PSCW’s jurisdiction under any statute or rule regulating public utilities.
The following discussion and analysis of our Liquidity and Capital Resources includes comparisons of our cash flows for the year ended December 31, 2023 with the year ended December 31, 2022. For a similar discussion that compares our cash flows for the year ended December 31, 2022 with the year ended December 31, 2021, see Item 7.
Table of Contents The following discussion and analysis of our Liquidity and Capital Resources includes comparisons of our cash flows for the year ended December 31, 2024 with the year ended December 31, 2023. For a similar discussion that compares our cash flows for the year ended December 31, 2023 with the year ended December 31, 2022, see Item 7.
The increase in margins was primarily driven by: • A $29.5 million increase in margins related to the impact of the PGL rate order issued by the ICC, effective December 1, 2023. • A $23.9 million increase in revenues at PGL due to continued capital investment in the SMP project under the QIP rider.
Both measures were driven by: • A $29.5 million increase in margins related to the impact of the PGL rate order issued by the ICC, effective December 1, 2023. • A $23.9 million increase in revenues at PGL due to continued capital investment in the SMP project under the QIP rider.
Below are examples of projects that are proposed or currently underway. • WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire and construct Paris, a utility-scale solar-powered electric generating facility with a battery energy storage system.
Below are examples of projects that are proposed or currently underway. • WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire and construct Paris, a utility-scale solar-powered electric generating facility with a battery energy storage system located in Kenosha County, Wisconsin.
The decrease was driven by higher operating expenses, primarily due to an impairment associated with the ICC's disallowance of certain incurred capital costs in its November 2023 rate orders for PGL and NSG, and the year-over-year impact of a gain recorded in 2022 on the sale of certain real estate by PGL.
The decrease was driven by higher operating expenses, primarily due to a $178.9 million pre-tax impairment associated with the ICC's disallowance of certain incurred capital costs in its November 2023 rate orders for PGL and NSG, and the year-over-year impact of a gain recorded in 2022 on the sale of certain real estate by PGL.
We believe that electric and natural gas margins provide a useful basis for evaluating utility operations since the majority of prudently incurred fuel and purchased power costs, as well as prudently incurred natural gas costs, are passed through to customers in current rates.
We believe that utility margin provides a useful basis for evaluating utility operations since the majority of prudently incurred fuel and purchased power costs, as well as prudently incurred natural gas costs, are passed through to customers in current rates.
Based on the variable rate debt outstanding at December 31, 2023 and 2022, a hypothetical increase in market interest rates of one percentage point would have increased annual interest expense by $25.2 million and $21.4 million in 2023 and 2022, respectively.
Based on the variable rate debt outstanding at December 31, 2024 and 2023, a hypothetical increase in market interest rates of one percentage point would have increased annual interest expense by $11.2 million and $25.2 million in 2024 and 2023, respectively.
Over the longer term, the target for our generation fleet is to be net carbon neutral by 2050. As part of our path toward these goals, we have started implementing co-firing with natural gas at the ERGS coal-fired units.
Over the longer term, the target for our generation fleet is to be net carbon neutral by 2050. As part of our path toward these goals, we have started implementing co-firing with natural gas at the ERGS coal-fired units and plan to co-fire with natural gas at Weston Unit 4.
The following tables provide information on delivered sales volumes by customer class and weather statistics: Year Ended December 31 Electric Sales Volumes (MWh - in thousands) 2023 2022 B (W) Customer class Residential 10,966.8 11,372.6 (405.8) Small commercial and industrial (1) 12,729.9 12,867.1 (137.2) Large commercial and industrial (1) 11,992.8 12,181.6 (188.8) Other 128.6 139.0 (10.4) Total retail (1) 35,818.1 36,560.3 (742.2) Wholesale 1,821.8 2,444.7 (622.9) Resale 6,015.5 3,962.8 2,052.7 Total sales in MWh (1) 43,655.4 42,967.8 687.6 (1) Includes distribution sales for customers who have purchased power from an alternative electric supplier in Michigan.
The following tables provide information on delivered sales volumes by customer class and weather statistics: Year Ended December 31 B (W) B (W) Electric Sales Volumes (MWh - in thousands) 2024 2023 2022 2024 vs 2023 2023 vs 2022 Customer class Residential 11,025.3 10,966.8 11,372.6 58.5 (405.8) Small commercial and industrial (1) 12,815.8 12,729.9 12,867.1 85.9 (137.2) Large commercial and industrial (1) 11,966.7 11,992.8 12,181.6 (26.1) (188.8) Other 125.1 128.6 139.0 (3.5) (10.4) Total retail (1) 35,932.9 35,818.1 36,560.3 114.8 (742.2) Wholesale 1,648.2 1,821.8 2,444.7 (173.6) (622.9) Resale 5,863.1 6,015.5 3,962.8 (152.4) 2,052.7 Total sales in MWh (1) 43,444.2 43,655.4 42,967.8 (211.2) 687.6 (1) Includes distribution sales for customers who have purchased power from an alternative electric supplier in Michigan.
These increases in margins were partially offset by: • A $67.9 million decrease in margins related to lower retail electric sales volumes, including steam operations, driven by the impact of unfavorable weather during 2023, compared with 2022. As measured by cooling degree days, 2023 was 7.2% and 17.0% cooler than 2022 in the Milwaukee area and Green Bay area, respectively.
These increases in margins were partially offset by: • A $125.3 million decrease in margins related to lower retail sales volumes, driven by the impact of unfavorable weather during 2023, compared with 2022. As measured by cooling degree days, 2023 was 7.2% and 17.0% cooler than 2022 in the Milwaukee area and Green Bay area, respectively.
(2) Normal degree days are based on a 20-year moving average of monthly temperatures from the Green Bay, Wisconsin weather station. (3) Normal degree days are based on a 20-year moving average of monthly temperatures from the Iron Mountain, Michigan weather station. 2023 Form 10-K 54 WEC Energy Group, Inc.
(2) Normal degree days are based on a 20-year moving average of monthly temperatures from the Green Bay, Wisconsin weather station. 2024 Form 10-K 56 WEC Energy Group, Inc. Table of Contents (3) Normal degree days are based on a 20-year moving average of monthly temperatures from the Iron Mountain, Michigan weather station.
We follow an asset management strategy that focuses on investing in and acquiring assets consistent with our strategic plans, as well as disposing of assets, including property, plants, equipment, and entire business units, that are no longer strategic to operations, are not performing as intended, or have an unacceptable risk profile. See Note 3, Dispositions, for information on recent transactions.
We follow an asset management strategy that focuses on investing in and acquiring assets consistent with our strategic plans, as well as disposing of assets, including property, plants, equipment, and entire business units, that are no longer strategic to operations, are not performing as intended, or have an unacceptable risk profile.
As a result, management uses electric and natural gas margins internally when assessing the operating performance of our segments as these measures exclude the majority of revenue fluctuations caused by changes in these expenses. Similarly, the presentation of electric and natural gas margins herein is intended to provide supplemental information for investors regarding our operating performance.
As a result, management uses utility margin internally when assessing the operating performance of our utility segments as these measures exclude the majority of revenue fluctuations caused by changes in these expenses. Similarly, the presentation of utility margin herein is intended to provide supplemental information for investors regarding our operating performance.
See Note 13, Short-Term Debt and Lines of Credit, and Note 14, Long-Term Debt, for more information about our credit facilities and debt securities. Investments in Outside Trusts We maintain investments in outside trusts to fund the obligation to provide pension and certain OPEB benefits to current and future retirees.
See Note 11, Common Equity, Note 13, Short-Term Debt and Lines of Credit, and Note 14, Long-Term Debt, for more information about our common stock activity, commercial paper, credit facilities, and debt securities. Investments in Outside Trusts We maintain investments in outside trusts to fund the obligation to provide pension and certain OPEB benefits to current and future retirees.
We expect our 2024 annual effective tax rate to be between 11.5% and 12.5%. Our effective tax rate calculations are revised every quarter based on the best available year-end tax assumptions, adjusted in the following year after returns are filed.
We expect our 2025 annual effective tax rate to be between 6.5% and 7.5%. Our effective tax rate calculations are revised every quarter based on the best available year-end tax assumptions, adjusted in the following year after returns are filed.
First Return on Equity Complaint In November 2013, a group of MISO industrial customers filed a complaint with the FERC asking that the FERC order a reduction to the base ROE used by MISO transmission owners, including ATC, from 12.2% to 9.15%. Due to this complaint, the FERC and the D.C.
Return on Equity Complaint In November 2013, a group of MISO industrial customers filed a complaint with the FERC asking that the FERC order a reduction to the base ROE used by MISO transmission owners, including ATC, from 12.2% to 9.15%. Due to this complaint, the FERC and the D.C. Circuit Court of Appeals issued the following orders and opinion.
Our plan is to replace a portion of the retired capacity by building and owning zero-carbon-emitting renewable generation facilities that are anticipated to include the following new investments: • 2,700 MWs of utility-scale solar; • 880 MWs of wind; and • 250 MWs of battery storage. 2023 Form 10-K 48 WEC Energy Group, Inc.
Our plan is to replace a portion of the retired capacity by building and owning zero-carbon-emitting renewable generation facilities that are anticipated to include the following new investments: • 2,900 MWs of utility-scale solar; • 900 MWs of wind; and • 565 MWs of battery storage. 2024 Form 10-K 49 WEC Energy Group, Inc.
WE's and WPS's combined share of the cost of this project is estimated to be approximately $542 million, with construction of the solar portion and battery storage expected to be completed in 2024 and 2025, respectively. • WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire and construct Darien, a utility-scale solar-powered electric generating facility.
WE's and WPS's combined share of the cost of this project is estimated to be approximately $567 million, with construction of the solar portion and battery storage expected to be completed in 2025 and 2026, respectively. • WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire Koshkonong, a utility-scale solar-powered electric generating facility with a battery energy storage system.
In 2022, this amount was reduced by the $21.6 million amortization of certain regulatory liability balances associated with WPS's 2020 earnings sharing mechanism to offset certain 2022 revenue deficiencies, as approved by the PSCW in order to forego filing for 2022 base rate increases. See Note 26, Regulatory Environment, for more information.
Additionally, in 2022, earnings sharing was reduced by amortization related to certain regulatory liability balances associated with WPS's 2020 earnings sharing mechanism to offset certain 2022 revenue deficiencies, as approved by the PSCW in order to forego filing for 2022 base rate increases. See Note 26, Regulatory Environment, for more information.
These increases were partially offset by lower severance during 2023. • A $19.1 million increase in expense related to the earnings sharing mechanisms in place at our Wisconsin utilities, as discussed in the notes under the other operation and maintenance table above. See Note 26, Regulatory Environment, for more information.
These increases were partially offset by lower severance expense during 2023. • A $19.1 million increase in expense related to the earnings sharing mechanisms in place at our Wisconsin utilities, as discussed in the notes under the other operation and maintenance table above.
See Note 7, Property, Plant, and Equipment, for more information related to planned power plant retirements. In addition to retiring these older, fossil-fueled plants, we expect to invest approximately $7.0 billion from 2024-2028 in regulated renewable energy in Wisconsin.
See Note 7, Property, Plant, and Equipment, for more information related to planned power plant retirements. In addition to retiring these older, fossil-fueled plants, we expect to invest approximately $9.1 billion from 2025-2029 in regulated renewable energy in Wisconsin.
The targeted asset allocations are intended to reduce risk, provide long-term financial stability for the plans, and maintain funded levels which meet long-term plan obligations while preserving sufficient liquidity for near-term benefit payments. Investment strategies utilize a wide diversification of asset types and qualified external investment managers.
The targeted asset allocations are intended to reduce risk, provide long-term financial stability for the plans, and maintain funded levels which meet long-term plan obligations while preserving sufficient liquidity for near-term benefit payments. Investment strategies utilize a wide diversification of asset types and qualified external investment managers. 2024 Form 10-K 91 WEC Energy Group, Inc.
Actuarial Assumption (in millions, except percentages) Percentage-Point Change in Assumption Impact on Projected Benefit Obligation Impact on 2023 Pension Cost Discount rate (0.5) $ 114.7 $ 5.3 Discount rate 0.5 (106.9) (10.2) Rate of return on plan assets (0.5) N/A 14.1 Rate of return on plan assets 0.5 N/A (14.1) The following table shows how a given change in certain actuarial assumptions would impact the accumulated OPEB obligation and the reported net periodic OPEB cost (including amounts capitalized to our balance sheets).
Actuarial Assumption (in millions, except percentages) Percentage-Point Change in Assumption Impact on Projected Benefit Obligation Impact on 2024 Pension Cost Discount rate (0.5) $ 100.7 $ 5.1 Discount rate 0.5 (93.5) (5.2) Rate of return on plan assets (0.5) N/A 13.7 Rate of return on plan assets 0.5 N/A (13.7) The following table shows how a given change in certain actuarial assumptions would impact the accumulated OPEB obligation and the reported net periodic OPEB cost (including amounts capitalized to our balance sheets).
Other Income, Net Other income, net at the Illinois segment decreased $7.4 million during 2023, compared with 2022, driven by lower net credits from the non-service components of our net periodic pension and OPEB costs. See Note 20, Employee Benefits, for more information on our benefit costs.
Other Income, Net Other income, net at the Illinois segment decreased $7.4 million during 2023, compared with 2022, driven by lower net credits from the non-service components of our net periodic pension and OPEB costs. See Note 20, Employee Benefits, for more information on our benefit costs. 2024 Form 10-K 65 WEC Energy Group, Inc.
Our financial statements reflect the effects of the ratemaking principles followed by the various jurisdictions regulating us. Certain items that would otherwise be immediately recognized as revenues and expenses are deferred as regulatory assets and regulatory liabilities for future recovery or refund to customers, as authorized by our regulators.
Our financial statements reflect the effects of the ratemaking principles followed by the various jurisdictions regulating us. Certain items that would otherwise be immediately recognized as revenues and expenses are deferred as regulatory assets and regulatory liabilities for future recovery or refund to customers, as authorized by our regulators. 2024 Form 10-K 92 WEC Energy Group, Inc.
In addition, the Board of Directors affirmed our dividend policy that continues to target a dividend payout ratio of 65-70% of earnings. We have been paying consecutive quarterly dividends dating back to 1942 and expect to continue paying quarterly cash dividends in the future.
This equates to an annual dividend of $3.57 per share. In addition, the Board of Directors affirmed our dividend policy that continues to target a dividend payout ratio of 65-70% of earnings. We have been paying consecutive quarterly dividends dating back to 1942 and expect to continue paying quarterly cash dividends in the future.
Consolidated Earnings The following table compares our consolidated results for the year ended December 31, 2023 with the year ended December 31, 2022, including favorable or better, "B," and unfavorable or worse, "W," variances: Year Ended December 31 (in millions, except per share data) 2023 2022 B (W) Wisconsin $ 851.3 $ 758.4 $ 92.9 Illinois 140.0 226.9 (86.9) Other states 48.1 39.7 8.4 Electric transmission 119.1 129.5 (10.4) Non-utility energy infrastructure 336.0 324.4 11.6 Corporate and other (162.8) (70.8) (92.0) Net income attributed to common shareholders $ 1,331.7 $ 1,408.1 $ (76.4) Diluted earnings per share $ 4.22 $ 4.45 $ (0.23) Earnings decreased $76.4 million during 2023, compared with 2022.
Consolidated Earnings The following table compares our consolidated results, including favorable or better, "B," and unfavorable or worse, "W," variances: Year Ended December 31 B (W) B (W) (in millions, except per share data) 2024 2023 2022 2024 vs 2023 2023 vs 2022 Wisconsin $ 863.1 $ 851.3 $ 758.4 $ 11.8 $ 92.9 Illinois 252.1 140.0 226.9 112.1 (86.9) Other states 54.5 48.1 39.7 6.4 8.4 Electric transmission 141.0 119.1 129.5 21.9 (10.4) Non-utility energy infrastructure 380.8 336.0 324.4 44.8 11.6 Corporate and other (164.3) (162.8) (70.8) (1.5) (92.0) Net income attributed to common shareholders $ 1,527.2 $ 1,331.7 $ 1,408.1 $ 195.5 $ (76.4) Diluted earnings per share $ 4.83 $ 4.22 $ 4.45 $ 0.61 $ (0.23) 2024 Compared with 2023 Earnings increased $195.5 million during 2024, compared with 2023.
On January 3, 2024, the ICC granted PGL a limited-scope rehearing, which is limited to the authorized spending for the completion of SMP projects that started in 2023 and the authorized spending for emergency repairs needed to ensure the safety and reliability of PGL's delivery system.
The ICC granted PGL a limited-scope rehearing related to authorized spending for the completion of SMP projects that started in 2023 and the authorized spending for emergency repairs needed to ensure the safety and reliability of PGL's delivery system.
Corporate Strategy Our goal is to continue to build and sustain long-term value for our shareholders and customers by focusing on the fundamentals of our business: environmental stewardship; reliability; operating efficiency; financial discipline; exceptional customer care; and safety.
Corporate Strategy Our goal is to continue to build and sustain long-term value for our shareholders and customers by focusing on the fundamentals of our business: environmental stewardship; reliability; operating efficiency; financial discipline; exceptional customer care; and safety. Our capital plan provides a roadmap for us to achieve this goal.

… 413 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

1 edited+0 added−0 removed1 unchanged
Biggest changeManagement's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Market Risks and Other Significant Risks, as well as Note 1(r), Fair Value Measurements, Note 1(s), Derivative Instruments, and Note 19, Guarantees, for information concerning potential market risks to which we are exposed. 2023 Form 10-K 83 WEC Energy Group, Inc.
Biggest changeManagement's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Market Risks and Other Significant Risks, as well as Note 1(r), Fair Value Measurements, Note 1(s), Derivative Instruments, and Note 19, Guarantees, for information concerning potential market risks to which we are exposed. 2024 Form 10-K 96 WEC Energy Group, Inc.

Other WEC 10-K year-over-year comparisons