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What changed in WEC Energy Group's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of WEC Energy Group's 2024 and 2025 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 2025 report.

+627 added−781 removedSource: 10-K (2026-02-20) vs 10-K (2025-02-21)

Top changes in WEC Energy Group's 2025 10-K

627 paragraphs added · 781 removed · 507 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

115 edited+19 added−37 removed103 unchanged
Biggest changeThe 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.
Biggest changeThe 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 2026: Estimate (1) Actual 2026 2025 2024 2023 Company-owned generation: Coal 30.7 % 30.5 % 29.4 % 29.0 % Natural gas: Combined cycle 27.7 % 24.1 % 27.2 % 28.7 % Steam turbine 0.5 % 0.8 % 1.0 % 0.9 % Natural gas/oil peaking units 5.0 % 7.9 % 7.2 % 5.5 % Renewables (2) 9.1 % 8.4 % 6.5 % 5.5 % Total company-owned generation 73.0 % 71.7 % 71.3 % 69.6 % Power purchase contracts: Nuclear 19.2 % 19.8 % 20.3 % 20.1 % Renewables (3) 1.6 % 1.5 % 1.9 % 2.0 % Other — % 0.2 % — % 0.1 % Total power purchase contracts 20.8 % 21.5 % 22.2 % 22.2 % Purchased power from MISO 6.2 % 6.8 % 6.5 % 8.2 % Total purchased power 27.0 % 28.3 % 28.7 % 30.4 % 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 2025 NYMEX.
We were incorporated in the state of Wisconsin in 1981 and became a diversified holding company in 1986. We maintain our principal executive offices in Milwaukee, Wisconsin. On June 29, 2015, we acquired 100% of the outstanding common shares of Integrys and changed our name to WEC Energy Group, Inc.
WEC Energy Group, Inc. We were incorporated in the state of Wisconsin in 1981 and became a diversified holding company in 1986. We maintain our principal executive offices in Milwaukee, Wisconsin. On June 29, 2015, we acquired 100% of the outstanding common shares of Integrys and changed our name to WEC Energy Group, Inc.
Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets. 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.
Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets. 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.
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.
When taken together, the retirements and new investments in natural gas generation and renewables 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.
WECI is entitled to the tax benefits of Bishop Hill III, Upstream, Blooming Grove, Thunderhead, Samson I, Sapphire Sky, Maple Flats, and Delilah I in proportion to its ownership interest.
WECI is entitled to the tax benefits of Bishop Hill III, Upstream, Blooming Grove, Thunderhead, Samson I, Sapphire Sky, Maple Flats, Delilah I, and Hardin III in proportion to its ownership interest.
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.
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 2025, our generating plants performed as expected during the most demanding periods of the year, and all power purchase commitments under firm contract were received.
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.
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.
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.
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, 2025 and May 31, 2026. We manage our electric generation portfolios to minimize their exposure within MISO’s annual capacity auction.
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.
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, 2025, 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, 2024, 2023, and 2022, 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, 2025, 2024, and 2023, 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 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.
See Note 1(d), Operating Revenues, for additional information on the significant mechanisms our utilities had in place during 2025 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.
During 2024, we demonstrated this commitment through training and development of employees at all levels of the organization, our comprehensive merit review and succession planning processes, and a range of community partnerships. In addition, we have a number of initiatives that promote workforce contributions and participation and ensure our companies are attractive employers for persons of all backgrounds.
During 2025, we demonstrated this commitment through training and development of employees at all levels of the organization, our comprehensive merit review and succession planning processes, and a range of community partnerships. In addition, we have a number of initiatives that promote workforce contributions and participation and ensure our companies are attractive employers for persons of all backgrounds.
REGULATION We are a holding company and are subject to the requirements of the PUHCA 2005. We also have various subsidiaries that meet the definition of a holding company under the PUHCA 2005 and are also subject to its requirements.
We also have various subsidiaries that meet the definition of a holding company under the PUHCA 2005 and are also subject to its requirements.
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 Illinois 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 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.
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.
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, 2026, through May 31, 2027.
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.
In addition, as of December 31, 2025, 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.
As part of our carbon emission reduction goals, we have started implementing co-firing with natural gas at the ERGS coal-fired units. For information on our carbon emission reduction goals, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments.
As part of our carbon emission reduction goal, we have started implementing co-firing with natural gas at the ERGS coal-fired units. For information on our carbon emission reduction goal, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments.
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.
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, 2025, through May 31, 2026.
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.
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. 2025 Form 10-K 4 WEC Energy Group, Inc.
Renewable Generation Our electric utilities meet a portion of their electric generation supply with various renewable energy resources, including wind, solar, hydroelectric, and biomass. This helps our electric utilities work towards our goals of reducing carbon emissions while also maintaining compliance with renewable energy legislation.
Renewable Generation Our electric utilities meet a portion of their electric generation supply with various renewable energy resources, including wind, solar, hydroelectric, and biomass. This helps our electric utilities work towards our goal of reducing carbon emissions while also maintaining compliance with renewable energy legislation.
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%.
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, 2025, our ownership interest in ATC was approximately 60%.
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.
Table of Contents Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2025, 2024, and 2023, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.
In addition, PGL and NSG offer 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, education, non-profits, wholesale distributors, and food manufacturing. See Item 7.
In addition, PGL and NSG offer 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, non-profits, education, restaurants, and wholesale distributors. See Item 7.
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.
Name Ownership Interest Commercial Operation Bishop Hill III 90.0% August 2018 Upstream 90.0% January 2019 Coyote Ridge 82.6% December 2019 Blooming Grove 90.0% December 2020 Tatanka Ridge 85.7% 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 Hardin III 90.0% February 2025 (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.
Electric Generation and Supply Mix Our electric supply strategy is to provide our customers with energy from a diverse generation portfolio that is expected to balance a stable, reliable, and affordable supply of electricity with environmental stewardship. Through our participation in the MISO Energy Markets, we supply a significant amount of electricity to our customers from generation that we own.
Electric Generation and Supply Mix Our electric supply strategy is to provide our customers with energy from a diverse generation portfolio that balances a stable, reliable, and affordable supply of electricity with environmental stewardship. Through our participation in the MISO Energy Markets, we supply a significant amount of electricity to our customers from generation that we own.
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.
Orders from our respective state 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. 2025 Form 10-K 19 WEC Energy Group, Inc.
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, 2025, 2024, and 2023, 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, 2025, 2024, and 2023, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.
We provide wholesale electric service to various customers, including electric cooperatives, municipal joint action agencies, other investor-owned utilities, municipal utilities, and energy marketers. The majority of our sales for resale are sold into an energy market operated by MISO at market rates based on the availability of our generation and market demand.
We provide wholesale electric service to various customers, including electric cooperatives, municipal joint action agencies, other investor-owned utilities, municipal utilities, and energy marketers. The majority of our sales for resale are conducted within an energy market operated by MISO at market rates based on the availability of our generation and market demand.
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.
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. 2025 Form 10-K 22 WEC Energy Group, Inc.
We have already retired nearly 2,500 MWs of fossil-fueled generation since the beginning of 2018, which includes the retirement of OCPP Units 5 and 6 in May 2024, the 2019 retirement of the PIPP, and the 2018 retirements of the Pleasant Prairie power plant, the Pulliam power plant, and the jointly-owned Edgewater Unit 4 generating unit.
Additionally, we have retired nearly 2,500 MWs of fossil-fueled generation since the beginning of 2018, which includes the 2024 retirements of OCPP Units 5 and 6, the 2019 retirement of the PIPP, and the 2018 retirements of the Pleasant Prairie power plant, the Pulliam power plant, and the jointly-owned Edgewater Unit 4 generating unit.
Management regularly reports to the Board of Directors on human capital management topics, including corporate culture, succession planning, training and employee development, and safety and health. The Board of Directors 2024 Form 10-K 22 WEC Energy Group, Inc. Table of Contents delegates specified duties to its committees.
Management regularly reports to the Board of Directors on human capital management topics, including corporate culture, succession planning, training and employee development, and safety and health. The Board of Directors 2025 Form 10-K 21 WEC Energy Group, Inc. Table of Contents delegates specified duties to its committees.
Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Illinois Segment Contribution to Net Income Attributed to Common Shareholders for information on natural gas sales volumes by customer class.
Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Other States Segment Contribution to Net Income Attributed to Common Shareholders for information on natural gas sales volumes by customer class.
Solar and Battery Storage In December 2024, the construction of the solar portion of Paris located in Kenosha County, Wisconsin was completed, and the facility became commercially operational. Paris is owned by WE, WPS, and an unaffiliated utility, with WE and WPS collectively owning 180 MWs of solar generation.
Solar and Battery Storage In June 2025, the construction of the battery portion of Paris located in Kenosha County, Wisconsin was completed, and the facility became commercially operational. The solar portion of Paris was commercially operational in December 2024. Paris is owned by WE, WPS, and an unaffiliated entity, with WE and WPS collectively owning 180 MWs of solar generation.
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.
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). 2025 Form 10-K 20 WEC Energy Group, Inc.
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.
The table below reflects the various state commissions that regulated each of our utilities' retail rates during 2025, along with the approved ROE and capital structure for each utility during 2025.
See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments for more information on our capital plan. Also see Item 1A. Risk Factors - Risks Related to Legislation and Regulation - Our operations, capital expenditures, and financial results may be affected by the impact of greenhouse gas legislation, regulation, and emission reduction goals.
See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments for more information on our capital plan. Also see Item 1A. Risk Factors - Risks Related to Legislation and Regulation - Our operations, capital expenditures, and financial results may be affected by the impact of GHG legislation, regulation, and our emission reduction goal.
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) 2025 2024 2023 Customers – end of year Residential 387.1 383.7 379.3 Commercial and industrial 37.6 37.2 36.8 Transportation 19.4 19.4 19.5 Total customers 444.1 440.3 435.6 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.
Also, planned capital spending on our natural gas distribution facilities is concentrated in April through November. Because of these timing differences, the cash flow from customers is typically supplemented with temporary increases in short-term borrowings (from external sources) during the late summer and fall. Short-term debt is typically reduced over the January through June period.
Also, planned capital spending on our natural gas distribution facilities is concentrated in April through November. Because of these timing differences, the cash flow from customers is typically supplemented with temporary increases in short-term borrowings (from external sources) during the late summer and fall.
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
This development of our employees is an integral part of our succession planning and provides continuity for our senior leadership. 2025 Form 10-K 23 WEC Energy Group, Inc. Table of Contents
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.
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 2025 as compared to 2024. We currently forecast retail natural gas delivery volumes to decrease slightly in 2026 as compared to 2025, assuming normal weather.
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.
Customers Year Ended December 31 (in thousands) 2025 2024 2023 Customers – end of year Residential 1,404.9 1,391.7 1,381.7 Commercial and industrial 136.6 135.7 134.8 Transportation 3.5 3.5 3.5 Total customers 1,545.0 1,530.9 1,520.0 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.
These renewable energy resources also help us maintain diversity in our generation portfolio, which effectively serves as a price hedge against future fuel costs, and will help mitigate the risk of potential unknown costs associated with any future carbon restrictions for electric generators.
These renewable energy resources also help us maintain diversity in our generation portfolio, which effectively serves as a price hedge against future fuel costs, and will help mitigate the risk of potential unknown costs associated with any future carbon restrictions for electric generators. 2025 Form 10-K 7 WEC Energy Group, Inc.
The PSCW, ICC, and MPUC also regulate security issuances at utilities in their respective jurisdictions. In addition, the FERC regulates security issuances for UMERC.
Table of Contents facilities. The PSCW, ICC, and MPUC also regulate security issuances at utilities in their respective jurisdictions. In addition, the FERC regulates security issuances for UMERC.
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.
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.
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.
Customers Year Ended December 31 (in thousands) 2025 2024 2023 Customers – end of year Residential 937.9 929.0 922.9 Commercial and industrial 70.9 71.0 71.3 Transportation 55.2 59.9 62.0 Total customers 1,064.0 1,059.9 1,056.2 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.
Our Illinois utilities' forecasted design peak-day throughput is 25.3 million therms for the 2024 through 2025 heating season. Our Illinois utilities' peak daily send-out during 2024 was 19.6 million therms on January 14, 2024. Peak or near-peak demand generally occurs only a few times each year.
Our Illinois utilities' forecasted design peak-day throughput is 25.1 million therms for the 2025 through 2026 heating season. Our Illinois utilities' peak daily send-out during 2025 was 19.4 million therms on January 21, 2025. Peak or near-peak demand generally occurs only a few times each year.
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.
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.
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.
Bishop Hill III, Coyote Ridge, Blooming Grove, Tatanka Ridge, Jayhawk, Thunderhead, Samson I, Sapphire Sky, Maple Flats, Delilah I, and Hardin III 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.
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.
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.
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.
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.
For more information about our business operations, see Note 22, Segment Information, and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations. For information about our business strategy, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments. WEC Energy Group, Inc.
For more information about our business operations, including financial and geographic information, see Note 22, Segment Information, and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations. For information about our business strategy, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments.
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.
Our average fuel and purchased power costs per MWh by fuel type, including delivery costs, were as follows for the years ended December 31: 2025 2024 2023 Coal $ 27.54 $ 25.38 $ 25.80 Natural gas combined cycle 26.49 20.52 30.41 Natural gas/oil peaking units 56.82 42.41 56.41 Biomass 79.32 81.33 87.73 Purchased power 63.06 57.39 53.90 WE and WPS purchase coal under long-term contracts, which helps with price stability.
The electricity produced and revenues generated by solar generating facilities is also variable and depends heavily on seasonality and weather conditions. Spring and summer are usually the peak solar production seasons due to increased direct sunlight and longer days.
Historically, wind production has been greater in the first and fourth quarters. The electricity produced and revenues generated by the solar generating facilities is also variable and depends heavily on seasonality and weather conditions. Spring and summer are usually the peak solar production seasons due to increased direct sunlight and longer days.
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.
The following table compares our utility operating revenues by regulatory jurisdiction for each of the three years ended December 31: 2025 2024 2023 (in millions) Amount Percent Amount Percent Amount Percent Electric Wisconsin $ 4,992.8 90.0 % $ 4,496.0 91.3 % $ 4,548.8 90.8 % Michigan 171.8 3.1 % 141.1 2.9 % 141.4 2.8 % FERC – Wholesale 382.8 6.9 % 284.5 5.8 % 320.6 6.4 % Total electric 5,547.4 100.0 % 4,921.6 100.0 % 5,010.8 100.0 % Natural Gas Wisconsin 1,743.8 44.0 % 1,405.4 40.6 % 1,610.5 43.6 % Illinois 1,683.6 42.5 % 1,602.4 46.3 % 1,557.8 42.2 % Minnesota 327.9 8.3 % 290.5 8.4 % 348.4 9.4 % Michigan 203.9 5.2 % 162.8 4.7 % 175.3 4.8 % Total natural gas 3,959.2 100.0 % 3,461.1 100.0 % 3,692.0 100.0 % Total utility operating revenues $ 9,506.6 $ 8,382.7 $ 8,702.8 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 2025 Form 10-K 18 WEC Energy Group, Inc.
Electric Sales Forecast Our service territory experienced relatively flat weather-normalized retail electric sales in 2024, compared with 2023. We currently forecast retail electric sales volumes, excluding the Tilden mine located in the Upper Peninsula of Michigan, to increase 0.7% for 2025, assuming normal weather.
Electric Sales Forecast Our service territory experienced higher weather-normalized retail electric sales in 2025, compared with 2024. We currently forecast retail electric sales volumes, excluding the Tilden mine located in the Upper Peninsula of Michigan, to increase 1.6% for 2026, compared with 2025, assuming normal weather.
For more information on our natural gas utility supply and transportation contracts, see Note 24, Commitments and Contingencies. 2024 Form 10-K 12 WEC Energy Group, Inc. Table of Contents Pipeline Capacity and Storage We have long-term firm capacity contracts with interstate pipelines that access supply from a variety of natural gas producing areas.
For more information on our natural gas utility supply and transportation contracts, see Note 24, Commitments and Contingencies. Pipeline Capacity and Storage We have long-term firm capacity contracts with interstate pipelines that access supply from a variety of natural gas producing areas.
Our Wisconsin segment natural gas utilities' forecasted design peak-day throughput is 37.0 million therms for the 2024 through 2025 heating season. Our Wisconsin segment natural gas utilities' peak daily send-out during 2024 was 25.3 million therms on January 16, 2024. Peak or near-peak demand generally occurs only a few times each year.
Our Wisconsin segment natural gas utilities' forecasted design peak-day throughput is 39.9 million therms for the 2025 through 2026 heating season. Our Wisconsin segment natural gas utilities' peak daily send-out during 2025 was 24.2 million therms on January 20, 2025. Peak or near-peak demand generally occurs only a few times each year.
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.
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.
These assets are directed primarily to serving rate-regulated retail customers and are included in our regulatory rate base. We also use a portion of these company-owned storage and pipeline assets as a natural gas hub, which consists of providing transportation and storage services in interstate commerce to our wholesale customers.
We also use a portion of these company-owned storage and pipeline assets as a natural gas hub, which consists of providing transportation and storage services in interstate commerce to our wholesale customers.
The installed capacity reserve margins for the planning year June 1, 2024 through May 31, 2025 are as follows: 17.7% summer (June – August); 25.2% fall (September – November); 49.4% winter (December – February); and 40.8% spring (March – May).
The installed capacity reserve margins for the planning year June 1, 2025 through May 31, 2026 are as follows: 15.7% summer (June – August); 25.3% fall (September – November); 38.6% winter (December – February); and 38.8% spring (March – May).
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 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.
Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – American Transmission Company Allowed Return on Equity Complaints for more information. D.
Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – American Transmission Company Allowed Return on Equity Complaints for more information. 2025 Form 10-K 15 WEC Energy Group, Inc. Table of Contents D.
The unit trains transport the coal for electric generating facilities from mines in Wyoming and Pennsylvania. Additional small volume agreements may also be used to supplement the normal coal supply for our facilities. For additional information concerning risks related to coal supply chain disruptions, see the risk factor below. • Item 1A.
Additional small volume agreements may also be used to supplement the normal coal supply for our facilities. For additional information concerning risks related to coal supply chain disruptions, see the risk factor below. • Item 1A.
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.
Table of Contents Hedging Natural Gas Supply Prices As part of their hedging programs, our Illinois 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. Their hedging programs are reviewed by the ICC as part of the annual purchased gas adjustment reconciliation.
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.
In 2025, retail revenues accounted for 92.3% of total electric operating revenues, wholesale revenues accounted for 1.9% of total electric operating revenues, and resale revenues accounted for 4.8% of total electric operating revenues. See Item 7.
Table of Contents agreements, intended to support our plants' variable usage. WE and WPS also have PSCW approval for a hedging program to mitigate against volatility related to natural gas price risk. This program allows them to hedge, over a 60-month period, up to 75% of their estimated natural gas use for electric generation.
WE and WPS also have PSCW approval for a hedging program to mitigate against volatility related to natural gas price risk. This program allows them to hedge, over a 60-month period, up to 75% of their estimated natural gas use for electric generation. The results of this hedging program are reflected in the average costs of natural gas.
The retirements are intended to address compliance with the EPA Clean Air rules as well as contribute to meeting our goals to reduce CO 2 emissions from our electric generation.
These retirements are intended to address compliance with EPA regulations established under the CAA, as well as contribute to meeting our goal to reduce CO 2 emissions from our electric generation.
For 2025, 100% of our total projected coal requirements of 4.3 million tons are contracted under fixed-price contracts. See Note 24, Commitments and Contingencies, for more information on amounts of coal purchases and coal deliveries under contract. The annual tonnage amounts contracted for the next three years are as follows.
See Note 24, Commitments and Contingencies, for more information on amounts of coal purchases and coal deliveries under contract. The annual tonnage amounts contracted for the next three years are as follows.
We continue to earn distribution revenues from these transportation customers for their use of our distribution systems to transport natural gas to their facilities.
Our natural gas utilities offer transportation services for customers that elect to purchase natural gas directly from a third-party supplier. We continue to earn distribution revenues from these transportation customers for their use of our distribution systems to transport natural gas to their facilities.
We purchase natural gas for our plants on the spot market from natural gas marketers, utilities, and producers, and we arrange for transportation of the natural gas to our plants. We have firm and interruptible transportation, as well as balancing and storage 2024 Form 10-K 9 WEC Energy Group, Inc.
We purchase natural gas for our plants on the spot market from natural gas marketers, utilities, and producers, and we arrange for transportation of the natural gas to our plants. We have firm and interruptible transportation, as well as balancing and storage agreements, intended to support our plants' variable usage.
WECI recognizes PTCs as power is generated over a period of 10 years following commercial operation. Under the IRA transferability option, WEC Energy Group sold substantially all of its 2023 generated PTCs, including those generated by WECI, to a third party.
WECI recognizes PTCs as power is generated over a period of 10 years following commercial operation. Under the IRA transferability option, WEC Energy Group has sold substantially all of WECI's 2023 and 2024 generated PTCs to third parties. In addition, WEC Energy Group has either sold or entered into agreements to sell substantially all PTCs generated by WECI in 2025.
Seasonality The electricity produced and revenues generated by our wind generating facilities depend heavily on wind conditions, which are variable. Operating results for wind generating facilities vary significantly from period to period depending on the wind conditions during the periods in question. Historically, wind production has been greater in the first and fourth quarters.
See Note 2, Acquisitions, for more information on the more recent renewable generating facility acquisitions. Seasonality The electricity produced and revenues generated by the wind generating facilities depend heavily on wind conditions, which are variable. Operating results for wind generating facilities vary significantly from period to period depending on the wind conditions during the periods in question.
On February 20, 2025, the ICC issued an order setting expectations for PGL's prospective operations under its SMP. The ICC directed us to focus on replacing all cast and ductile iron pipe that has a diameter under 36 inches by January 1, 2035.
They hedge between 25% and 50% of planned natural gas purchases, with a target of 37.5%. Natural Gas Pipe Retirement Program In February 2025, the ICC issued an order setting expectations for PGL's prospective operations. The ICC directed us to focus on retiring all cast and ductile iron pipe that has a diameter under 36 inches by January 1, 2035.
In addition to amounts collected from customers through approved base rates, our utilities have certain recovery mechanisms in place that allow them to recover or refund prudently incurred costs that differ from those approved in base rates. Embedded within our electric utilities' rates is an amount to recover fuel and purchased power costs.
See Note 26, Regulatory Environment, for more information. In addition to amounts collected from customers through approved base rates, our utilities have certain recovery mechanisms in place that allow them to recover or refund prudently incurred costs that differ from those approved in base rates.
We expect to retire approximately 1,200 MWs of additional coal-fired generation by the end of 2031, which includes the planned retirements of OCPP Units 7 and 8, the jointly-owned Columbia Units 1 and 2 while investigating conversion of at least one unit to natural gas, and Weston Unit 3. See Note 7, Property, Plant, and Equipment, for more information.
See Note 6, Regulatory Assets and Liabilities, for more information related to certain of these power plant retirements. We expect to retire approximately 900 MWs of additional coal-fired generation by the end of 2031, which includes the planned retirements of OCPP Units 7 and 8 and Weston Unit 3. See Note 7, Property, Plant, and Equipment, for more information.
Electrification initiatives or mandates are being considered or proposed by local and state governments. In addition, the majority of our natural gas customers have the opportunity to choose a natural gas supplier other than us. Our natural gas utilities offer transportation services for customers that elect to purchase natural gas directly from a third-party supplier.
Many large commercial and industrial customers have the ability to switch between natural gas and alternative fuels. Electrification initiatives or mandates are being considered or proposed by local and state governments. In addition, the majority of our natural gas customers have the opportunity to choose a natural gas supplier other than us.
Due to variations in natural gas usage in Wisconsin, our Wisconsin natural gas utilities have also contracted for substantial underground storage capacity, primarily in Michigan. WE, WPS, and WG have entered into long-term service agreements for approximately 99% of a wholly owned subsidiary of Bluewater's natural gas storage.
WE, WPS, and WG have entered into long-term service agreements for approximately 99% of a wholly owned subsidiary of Bluewater's natural gas storage. Bluewater owns natural gas storage facilities in Michigan and provides approximately one-third of the current storage needs for our Wisconsin natural gas utilities.
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.
We believe that having diverse capacity and storage benefits our customers. 2025 Form 10-K 13 WEC Energy Group, Inc. Table of Contents 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.
Storage allows us to manage significant changes in daily natural gas demand and to purchase steady levels of natural gas on a year-round basis, which provides a hedge against supply cost volatility. We also own a natural gas pipeline system that connects Manlove Field to Chicago and nine major interstate pipelines.
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. Storage allows us to manage significant changes in daily natural gas demand and to purchase steady levels of natural gas on a year-round basis, which provides a hedge against supply cost volatility.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAny of these events could lead to substantial financial losses, including increased maintenance costs, unanticipated capital expenditures, and a reduction of revenues related to our non-utility renewable energy facilities. Because our electric generation and renewable energy facilities are interconnected with third-party transmission facilities, the operation of our facilities could also be adversely affected by events impacting their systems.
Biggest changeBecause our electric generation and renewable energy facilities are interconnected with third-party transmission facilities, the operation of our facilities could also be adversely affected by events impacting their systems. These hazards and operational risks could result in serious injury to employees and non-employees, loss of human life, significant damage to property, environmental pollution, and impairment of operations.
You should carefully consider the following risk factors, as well as the other information included in this report and other documents filed by us with the SEC from time to time, when making an investment decision. Risks Related to Legislation and Regulation Our business is significantly impacted by governmental regulation and oversight.
You should carefully consider the following risk factors, as well as the other information included in this report and other documents filed by us with the SEC from time to time, when making an investment decision. Risks Related to Legislation and Regulation Our business is significantly impacted by governmental legislation, regulation, and oversight.
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 and/or increase our current common stock dividend level.
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.
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.
The ICC directed us to focus on replacing all cast and ductile iron pipe that has a diameter under 36 inches by January 1, 2035. The ICC also indicated that failure to comply with this directive could subject us to civil penalties under Illinois statute.
The ICC directed us to focus on replacing all cast and ductile iron pipe that has a diameter under 36 inches by January 1, 2035. The ICC indicated that failure to comply with this directive could subject us to civil penalties under Illinois statute.
We also expect to continue constructing and investing in renewable energy and natural gas generating facilities as part of our capital plan and our goal to be net carbon neutral by 2050. In addition, we continue to invest in technology and the development of software applications to support our businesses.
We also expect to continue constructing and investing in renewable energy and natural gas generating facilities as part of our capital plan and our goal to be net carbon neutral by the end of 2050. In addition, we continue to invest in technology and the development of software applications to support our businesses.
Extreme weather may result in unexpected increases in customer load, requiring us to procure additional power at wholesale prices for our retail operations, unpredictable curtailment of customer load by MISO to maintain grid reliability, or other grid reliability issues.
Extreme weather may also result in unexpected increases in customer load, requiring us to procure additional power at wholesale prices for our retail operations, unpredictable curtailment of customer load by MISO to maintain grid reliability, or other grid reliability issues.
We incur significant capital and operating resources to comply with environmental laws, regulations, and requirements, including costs associated with the installation of pollution control equipment; operating restrictions on our facilities; and environmental monitoring, emissions fees, and permits at our facilities.
We incur significant capital costs and expend operating resources to comply with environmental laws, regulations, and requirements, including costs associated with the installation of pollution control equipment; operating restrictions on our facilities; and environmental monitoring, emissions fees, and permits at our facilities.
Our operations are subject to risks arising from the reliability of our electric generation, transmission, and distribution facilities, natural gas infrastructure facilities, natural gas storage fields, renewable energy facilities, and other facilities, as well as the reliability of third-party transmission providers.
Our operations are subject to risks arising from the reliability and safety of our electric generation, transmission, and distribution facilities, natural gas infrastructure facilities, natural gas storage fields, renewable energy facilities, and other facilities, as well as the reliability of third-party transmission providers.
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.
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.
Future changes to corporate tax rates or policies, including under Treasury Regulations and guidance issued in connection with the IRA, could require us to take material charges against earnings.
Future changes to corporate tax rates or policies, including under Treasury Regulations and guidance issued in connection with the IRA and OBBBA, could require us to take material charges against earnings.
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.
Supply chain disruptions, including solar panel shortages and delays, increasing material costs, government regulations and tariffs, and other factors, could impact the timing of completion of our renewable projects.
To the extent that delays occur, costs become unrecoverable, tax credits are lost or lose value, or we or third parties with whom we invest and/or partner otherwise become unable to effectively manage and complete capital projects, our results of operations, cash flows, and financial condition may be adversely affected.
Table of Contents To the extent that delays occur, costs become unrecoverable, tax credits are lost or lose value, or we or third parties with whom we invest and/or partner otherwise become unable to effectively manage and complete capital projects, our results of operations, cash flows, and financial condition may be adversely affected.
We face risks related to our non-utility renewable energy facilities that could impact our return on investment or have a negative impact on our financial condition or results of operations. The production of energy from wind and solar sites depends heavily on suitable weather conditions, which are variable.
Table of Contents We face risks related to our non-utility renewable energy facilities that could impact our return on investment or have a negative impact on our financial condition or results of operations. The production of energy from wind and solar sites depends heavily on suitable weather conditions, which are variable.
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.
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 our emission reduction goal.
If recovery of regulatory assets is not approved or is no longer deemed probable, these costs would be recognized in current period expense and could have a material adverse impact on our results of operations, cash flows, and financial condition.
If recovery is not approved or is no longer deemed probable, these costs would be recognized in current period expense and could have a material adverse impact on our results of operations, cash flows, and financial condition.
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.
Many aspects of our operations are impacted by government legislation and regulations, 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.
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.
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.
In addition, economic growth in these areas may be constrained by the inability to obtain the required permits, limiting investment and expansion over the coming years, including our ability to execute on our capital plan.
In addition, economic growth in these areas may be constrained by the inability to obtain the required permits, limiting investment and expansion over the coming years, impacting our ability to execute on our capital plan.
We may not be allowed to recover these penalties and other costs incurred in customer rates, which could have a material adverse effect on our results of operations. In addition, if any construction work or investments have already been recorded as an asset, an impairment may need to be recorded.
In addition, if any construction work or investments have already been recorded as an asset, an impairment loss may need to be recorded. We may not be allowed to recover these penalties, other costs incurred, or impairment losses in customer rates, which could have a material adverse effect on our results of operations.
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.
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.
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.
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.
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.
These 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.
Risks Related to the Operation of Our Business Public health crises, including epidemics and pandemics, could adversely affect our business functions, financial condition, liquidity, and results of operations.
Table of Contents Risks Related to the Operation of Our Business Public health crises, including epidemics and pandemics, could adversely affect our business functions, financial condition, liquidity, and results of operations.
Our operations are subject to extensive and evolving federal, state, and local environmental laws, regulations, and permit requirements related to, among other things, air emissions (including, but not limited to: CO 2 , methane, mercury, SO 2 , and NOx), protection of natural resources, water quality, wastewater discharges, and management of hazardous and toxic substances and solid wastes and soils.
Our operations are subject to extensive and evolving federal, state, and local environmental laws, regulations, and permit requirements related to, among other things, air emissions (including, but not limited to CO 2 , methane, mercury, SO 2 , NOx, ozone and other pollutants), protection of natural resources, water quality, wastewater discharges, management of hazardous and toxic substances and solid wastes and soils, and climate change.
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.
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. 2025 Form 10-K 38 WEC Energy Group, Inc. Table of Contents ITEM 1B. UNRESOLVED STAFF COMMENTS None.
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.
Reductions or eliminations of tax credits or other governmental incentives that promote renewable energy generating facilities, or the imposition of additional taxes, tariffs, or other assessments related to renewable energy projects or the equipment necessary to generate or deliver it, may limit our ability to make further investments in renewable energy generating facilities or reduce the returns on our existing investments.
In addition, a variety of operating and economic factors, including transmission constraints, adverse weather conditions, and breakdown or failure of equipment, could significantly reduce the PTCs generated by the renewable projects we have invested in, resulting in a material adverse impact on our financial condition and results of operations.
In addition, a variety of operating and economic factors, including transmission constraints, adverse weather conditions, and breakdown or failure of equipment, could significantly reduce the PTCs generated by the renewable projects we have invested in, any of which could result in a material adverse impact on our financial condition and results of operations.
Failure to comply with these laws, regulations, and requirements, even if caused by factors beyond our control, may result in the assessment of civil or criminal penalties and fines. We continue to assess the potential cost of complying, and to explore different alternatives in order to comply, with these and other environmental regulations.
Failure to comply with these laws, regulations, and requirements, even if caused by factors beyond our control, may result in the assessment of civil or criminal penalties and fines. We continue to assess the cost of compliance and to explore different compliance alternatives with these and other environmental regulations.
Our operations are subject to various conditions that can result in fluctuations in energy sales to customers, including customer growth and general economic conditions in our service areas, varying weather conditions, and energy conservation efforts.
Table of Contents Our operations are subject to various conditions that can result in fluctuations in energy sales to customers, including fluctuations in customer growth and general economic conditions in our service areas, varying weather conditions, and energy conservation efforts.
If we are unable to recover costs of complying with regulations or other associated costs in customer rates in a timely manner, or if we are unable to obtain, renew, or comply with these governmental permits, approvals, authorizations, certificates, or licenses, our results of operations and financial condition could be materially and adversely affected.
If we are unable to recover regulatory compliance costs or other associated costs in customer rates in a timely manner, or if we are unable to obtain, renew, or comply with governmental permits, approvals, authorizations, certificates, or licenses, our results of operations and financial condition could be materially and adversely affected.
A significant disruption to interstate pipelines capacity or reduction in natural gas supply due to events including, but not limited to, operational failures or disruptions, hurricanes, tornadoes, floods, freeze-off of natural gas wells, terrorist or physical attacks, cyberattacks, other acts of war, or legislative or regulatory actions or requirements, including remediation related to integrity inspections or regulations and laws enacted to address climate change or other environmental matters, could reduce the normal interstate supply of natural gas and thereby significantly disrupt our operations and/or reduce earnings.
A significant disruption to interstate pipelines capacity or reduction in natural gas supply due to events including, but not limited to, operational failures or disruptions, hurricanes, tornadoes, floods, freeze-off of natural gas wells, terrorist or physical attacks, cyberattacks, other acts of war, or legislative or regulatory actions or requirements, including remediation related to integrity inspections or regulations and laws enacted to address climate change or other environmental matters, could reduce the normal interstate supply of natural gas and thereby significantly disrupt our operations and/or reduce earnings. 2025 Form 10-K 28 WEC Energy Group, Inc.
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.
Table of Contents 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.
Such changes include, among other things, increasing the federal corporate income tax rate, disallowing or limiting the use of certain tax benefits and carryforwards, limiting interest deductions, and altering the expensing of capital expenditures.
Such changes include, among other things, increasing the federal corporate income tax rate, disallowing or limiting the use of solar and wind tax incentives and other tax benefits and carryforwards, limiting interest deductions, and altering the expensing of capital expenditures.
If any of these projects are canceled for any reason, including failure to receive necessary regulatory approvals and/or siting or environmental permits, significant cancellation penalties under the equipment purchase orders and construction contracts could occur.
If any of these projects are canceled for any reason, including due to lower than forecasted demand or for failure to receive necessary regulatory approvals and/or siting or environmental permits, significant cancellation penalties under the equipment purchase orders and construction contracts could occur.
These activities may subject us to litigation and/or administrative proceedings from time to time, which could result in substantial monetary judgments, fines, or penalties against us, or be resolved on unfavorable terms.
They may also subject us to litigation and/or administrative proceedings from time to time, which could result in substantial monetary judgments, fines, or penalties against us, or be resolved on unfavorable terms.
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.
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.
Changes in the local and national political, regulatory, and economic environment have had, and may in the future have, an adverse effect on regulatory decisions, which could impair the ability of our utility subsidiaries to recover costs historically collected from customers.
Changes in the local and national political, regulatory, and economic environment, including significant attention on energy affordability concerns, have had, and may in the future have, an adverse effect on regulatory decisions, which could impair the ability of our utility subsidiaries to recover costs historically collected from customers.
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.
GHG legislation, regulation, or the emission reduction goal, as well as changes in the fuel markets and advances in technology could make electric generating units uneconomic to maintain, 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.
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.
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. 2025 Form 10-K 25 WEC Energy Group, Inc.
Any of these events could lead to substantial financial losses including increased maintenance costs, unanticipated capital expenditures, or a reduction of revenues related to our non-utility renewable energy facilities. The cost of storm restoration efforts may also not be fully recoverable through the regulatory process.
Any of these events could lead to substantial financial losses including increased maintenance costs, unanticipated capital expenditures, or a reduction of revenues related to our non-utility renewable energy facilities. The cost of storm restoration efforts may also not be fully recoverable through the regulatory process. 2025 Form 10-K 29 WEC Energy Group, Inc.
An extreme weather event could result in downed wires and poles, as well as damage to wind and solar generation facilities, or other operating equipment. This could result in us incurring significant restoration costs at our utilities and/or at WECI, and foregoing sales of energy and lost revenues.
An extreme weather event could result in damage to distribution and transmission infrastructure, wind and solar generation facilities, or other operating equipment. This could result in us incurring significant restoration costs at our utilities and/or at WECI, and foregoing sales of energy and lost revenues.
To the extent these costs are not allowed to be reallocated by our regulators or there is any regulatory delay in adjusting rates, a counterparty default under these agreements could have a negative impact on our results of operations and cash flows.
To the extent these costs are not allowed to be reallocated by our regulators or there is any regulatory delay in adjusting rates, a counterparty default under these agreements could have a negative impact on our results of operations and cash flows. 2025 Form 10-K 35 WEC Energy Group, Inc.
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.
The ability to achieve this goal 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 renewable thermal credits, legislative and regulatory support for renewable generation, the ability to maintain reliability with demand growth, and the ability to execute our capital plan.
In its November 2023 final rate orders for PGL and NSG, the ICC disallowed certain previously incurred capital costs, which resulted in PGL and NSG recording impairment losses in the fourth quarter of 2023, and caused PGL to pause spending on its SMP.
For example, the ICC's 2023 final rate order disallowed certain previously incurred capital costs, which resulted in PGL and NSG recording impairment losses in the fourth quarter of 2023, and caused PGL to pause spending on its PRP.
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.
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; • War or the threat of war; • Growth in AFUDC during periods of significant construction; and • The overall health and view of the utility and financial institution industries.
Any operational disruption or environmental repercussions caused by on-going or future threats to our assets and technology systems could result in a significant decrease in our revenues or significant reconstruction or remediation costs, which could materially and adversely affect our results of operations, financial condition, and cash flows.
Any operational disruption or environmental repercussions caused by on-going or future threats to our assets and technology systems could result in a significant decrease in our revenues or significant reconstruction or remediation costs, which 2025 Form 10-K 32 WEC Energy Group, Inc. Table of Contents could materially and adversely affect our results of operations, financial condition, and cash flows.
Our electric utilities also burn coal at certain of their electric generation facilities. We may be obligated to pay for coal deliveries under our contracts even if our coal-fired generating facilities do not operate enough to fully utilize the amounts of coal covered by the contracts.
Our electric utilities also burn coal at certain of their electric generation facilities. We may be obligated to pay for coal 2025 Form 10-K 36 WEC Energy Group, Inc. Table of Contents deliveries under our contracts even if our coal-fired generating facilities do not operate enough to fully utilize the amounts of coal covered by the contracts.
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.
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.
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.
Any of these matters, as well as any regulatory delay in adjusting rates as a result of fluctuations in energy demand or the adoption of new technologies, could adversely impact our results of operations and financial condition.
The new presidential administration's efforts to roll back certain climate and diversity, equity, and inclusion policies and programs may conflict with the expectations of our customers, regulators, and investors, creating additional uncertainty as we look to balance our stakeholders' competing priorities, and could lead to litigation and government investigations.
Efforts to roll back certain environmental rules and social policies and programs may conflict with the expectations of our customers, regulators, or investors, creating additional uncertainty as we look to balance our stakeholders' competing priorities, and could lead to litigation and government investigations.
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.
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. 2025 Form 10-K 33 WEC Energy Group, Inc.
Future local, statewide, or nationwide actions like these to regulate GHG emissions could increase the price of natural gas, reduce the demand for natural gas, cause us to accelerate the replacement and/or updating of our natural gas delivery systems, and adversely affect our ability to operate our natural gas facilities.
Future actions like these to regulate GHG emissions in our service territories could increase the price of natural gas resulting in reduced demand for, and revenues from, natural gas, cause us to accelerate the replacement and/or updating of our natural gas delivery systems, and adversely affect our ability to operate our natural gas facilities.
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.
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.
Distributed generation technologies that produce power, including fuel cells, microturbines, wind turbines, solar 2024 Form 10-K 33 WEC Energy Group, Inc. Table of Contents cells, and related energy storage devices, have technologically improved and have become more cost competitive than they were in the past.
Distributed generation technologies that produce power, including fuel cells, microturbines, wind turbines, solar cells, and related energy storage devices, have technologically improved and have become more cost competitive than they were in the past.
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.
Changes in the demand for commodities and their respective 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, 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.
This price disparity, known as basis risk, can be significant at times. We attempt to mitigate basis risk where possible, but hedging instruments are often not economically feasible or available in the quantities that we require. Basis risk cannot be entirely eliminated and can adversely affect our financial condition and results of operations.
This price disparity, known as basis risk, can be significant at times. We attempt to mitigate basis risk where possible, but hedging instruments are often not economically feasible or available in the quantities that we require.
There has been significant attention to issues concerning climate change as well as activism from certain stakeholders, including institutional investors and other sources of financing, to accelerate the transition to lower and limit GHG emissions. The EPA and some states have adopted and are implementing regulations to restrict emissions of GHGs.
There has been significant attention to issues concerning climate change as well as activism from certain stakeholders, including institutional investors and other sources of financing, to accelerate the transition to limit GHG emissions.
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.
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.
Increases in inflation raise our costs for labor, materials, and services, and failure to secure these resources on economically acceptable terms, as well as any regulatory delay in adjusting rates to account for increased costs, may adversely impact our financial condition and results of operations.
Increased costs for labor, materials, and services, as a result of supply chain disruptions, inflation, or tariffs, and failure to secure these resources on economically acceptable terms, as well as any regulatory delay in adjusting rates to account for increased costs, may adversely impact our business operations, financial condition, and/or capital plan.
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.
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.
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.
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.
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.
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.
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.
Increased tensions between the United States and other countries, as well as new, protracted, or escalating regional or international 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.
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.
Noncompliance with the mandatory reliability standards could result in sanctions, including substantial monetary penalties, or damage to our reputation. 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.
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.
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. This rider continues to be subject to an annual reconciliation whereby costs are reviewed for accuracy and prudency.
Those expectations are based in part on the core fundamentals of affordability and reliability but are also increasingly focused on our ability to meet rapidly changing demands for new and varied products, services, and offerings.
Our ability to execute our corporate strategy and achieve anticipated financial outcomes are influenced by the expectations of our customers, regulators, investors, and other stakeholders. Those expectations are based in part on the core fundamentals of affordability and reliability but are also increasingly focused on our ability to meet rapidly changing demands for new and varied products, services, and offerings.
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.
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.
Interstate pipeline companies transport the natural gas to our natural gas utilities’ systems under firm service agreements that are designed to meet the requirements of their core markets.
Our natural gas utilities purchase almost all of their natural gas supply from interstate sources that must be transported to the applicable service territories. Interstate pipeline companies transport the natural gas to our natural gas utilities’ systems under firm service agreements that are designed to meet the requirements of their core markets.
The law limits customer choice to 10% of our Michigan retail load. The iron ore mine located in the Upper Peninsula of Michigan is excluded from this cap. When a customer switches to an alternative electric supplier, we continue to provide distribution and customer service functions for the customer.
Under Michigan law, our retail electric customers may choose an alternative electric supplier to provide power supply service. The law limits customer choice to 10% of our Michigan retail load. The iron ore mine located in the Upper Peninsula of Michigan is excluded from this cap.
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.
Prices of equipment, materials, and other resources have increased and may continue to increase in the future, as a result of supply chain disruptions, inflation, and tariffs. Further governmental actions related to trade policy could exacerbate global supply chain disruptions and/or inflation.
These permits, approvals, authorizations, certificates, and licenses may be revoked or modified by the agencies that granted them if facts develop that differ significantly from the facts assumed when they were issued. In addition, permits and other approvals and licenses are often granted for a term that is less than the expected life of the associated facility.
These permits, approvals, authorizations, certificates, and licenses may be revoked or modified by the agencies that granted them if facts develop that differ significantly from the facts assumed when they were issued.
Certain of our service territories in Wisconsin are located in areas determined to be in "serious" nonattainment status under the EPA's ozone standard. This nonattainment status could affect future permitting activities for our facilities, including additional costs associated with more strenuous emission control requirements or the need to purchase emission reduction credits.
A nonattainment status of "serious" could affect future permitting activities for our facilities, including additional costs associated with more strenuous emission control requirements or the need to purchase emission reduction credits.
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.
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.
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.
An increase 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.
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.
Our business, results of operations, and financial condition could be materially adversely affected as a result of any or all of these factors. 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.
Our non-utility renewable energy facilities are exposed to risks through participation in various regional power markets. Our ability to acquire new non-utility renewable energy facilities or generate revenue from existing facilities depends on having interconnection arrangements with transmission providers and power markets along with a reliable grid.
Our ability to acquire new non-utility renewable energy facilities or generate revenue from existing facilities depends on having interconnection arrangements with transmission providers and power markets along with a reliable grid. We cannot predict whether transmission facilities will be expanded in specific markets to accommodate or increase competitive access to those markets.
Demand for electricity is greater in the summer and winter months when cooling and heating is necessary. In addition, demand for natural gas peaks in the winter heating season. As a result, our overall results may fluctuate substantially on a seasonal basis.
Demand for electricity is greater in the summer and winter months when cooling and heating is necessary. Demand for natural gas peaks in the winter heating season.
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.
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.
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.
Inherent in electric generation and distribution and natural gas transportation, distribution, and storage activities are a variety of hazards and operational risks, including accidents, operator error, and the breakdown or failure of equipment or processes including leaks, accidental explosions, mechanical problems, fires, discharges or releases of toxic or hazardous substances or gases, and other environmental risks.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe AOC meets regularly throughout the year and receives and reviews various risk management reports about IT/OT cybersecurity, data security, and physical security risk management reports, and discusses these matters with appropriate management and other personnel.
Biggest changeThe AOC meets regularly throughout the year and receives and reviews various risk management reports about IT/OT cybersecurity, data security, and physical security risks, and discusses these matters with appropriate management and other personnel.
When assembled, the CSIRT is responsible for developing and implementing an overall response strategy to contain, control, and remediate the cybersecurity incident, including securing our affected systems and/or information, mitigating harmful effects of the incident, preventing further compromises, and communicating information to affected parties, regulatory agencies and law enforcement, as necessary.
When assembled, the CSIRT is responsible for developing and implementing an overall response strategy to contain, control, and remediate the cybersecurity incident, including securing affected systems and/or information, mitigating harmful effects of the incident, preventing further compromises, and communicating information to affected parties, regulatory agencies and law enforcement, as necessary.
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.
Table of Contents threat or incident and provides updates regarding the status of the response to senior management, including the CEO, who provides updates and reports regarding cybersecurity incidents to the AOC and/or the Board of Directors at regularly scheduled meetings or more frequently, as needed.
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 CAO has 26 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 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.
Our Enterprise Security Director has over 28 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.
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.
The CSIRT Steering Committee is responsible for overseeing and implementing the Plan in the event of a cybersecurity 2025 Form 10-K 39 WEC Energy Group, Inc.

Item 2. Properties

Properties — owned and leased real estate

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Biggest change(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.
Biggest changeCapacity 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. The capacity indicated for each of these units is equal to our subsidiaries' portion of total plant capacity based on its percent of ownership.
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.
Natural Gas Facilities At December 31, 2025, our natural gas properties were located in Illinois, Wisconsin, Minnesota, and Michigan, and consisted of the following: • Approximately 47,200 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.
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.
Steam Facilities As of December 31, 2025, 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.
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.
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. 2025 Form 10-K 40 WEC Energy Group, Inc. Table of Contents A.
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.
The following table summarizes information on WECI's renewable generating facilities as of December 31, 2025: 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 Hardin III Hardin County, Ohio 90.0 % 350 250.0 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 85.7 % 56 154.8 Bishop Hill III Henry County, Illinois 90.0 % 53 132.1 Coyote Ridge Brookings County, South Dakota 82.6 % 39 97.4 Total renewable generating facilities 2,008 2,654.2 (1) Invenergy Services LLC operates these renewable facilities.
Kuester Generating Station Negaunee, MI Natural Gas 7 128 Pulliam Green Bay, WI Natural Gas 1 85 A.J.
Kuester Generating Station Negaunee, MI Natural Gas 7 128 Pulliam Green Bay, WI Natural Gas 1 82 A.J.
Mihm 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.
Mihm Generating Station Baraga, MI Natural Gas 3 55 Total natural gas-fired plants 44 4,193 Coal-fired plants ERGS Oak Creek, WI Coal 2 1,083 (2) (3) Weston Rothschild, WI Coal 2 699 (2) (7) OCPP Oak Creek, WI Coal 2 607 (7) Columbia Portage, WI Coal 2 306 (2) Total coal-fired plants 8 2,695 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 Darien Rock and Walworth counties, WI Solar 65 225 (2) 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 28 30 Total solar facilities 290 773 Other renewable facilities Hydro plants (26 in number) WI and MI Hydro 80 88 (4) (5) Rothschild Rothschild, WI Biomass 1 46 (6) Total other renewable facilities 81 134 Total electric generation facilities 801 8,375 (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 LNG storage plants convert and store, in liquefied form, natural gas received during periods of low consumption. We also own office buildings, natural gas regulating and metering stations, and major service centers, including garage and warehouse facilities, in certain communities we serve.
Our LNG storage plants convert and store, in liquefied form, natural gas received during periods of low consumption. 2025 Form 10-K 42 WEC Energy Group, Inc. Table of Contents We also own office buildings, natural gas regulating and metering stations, and major service centers, including garage and warehouse facilities, in certain communities we serve.
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.
REGULATED Electric Facilities The following table summarizes information on our electric generation facilities, including owned and jointly owned facilities, as of December 31, 2025: Name Location Fuel Number of Generating Units Capacity In MW (1) Natural gas-fired plants PWGS Port Washington, WI Natural Gas 2 1,210 (3) Fox Energy Center Wrightstown, WI Natural Gas 3 579 Concord Generating Station Watertown, WI Natural Gas/Oil 4 367 Paris Union Grove, WI Natural Gas/Oil 4 360 VAPP Milwaukee, WI Natural Gas 2 278 Germantown Power Plant Germantown, WI Natural Gas/Oil 5 261 Whitewater Whitewater, WI Natural Gas/Oil 1 234 West Riverside Beloit, WI Natural Gas 1 190 (2) De Pere Energy Center De Pere, WI Natural Gas/Oil 1 170 West Marinette Power Plant Marinette, WI Natural Gas 3 149 Weston Rothschild, WI Natural Gas 7 130 F.D.
(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.
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. (4) All of our hydroelectric facilities follow FERC guidelines and/or regulations. (5) WRPC owns and operates the Castle Rock and Petenwell units.
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.
Values are 2025 Form 10-K 41 WEC Energy Group, Inc. Table of Contents primarily based on the net dependable expected capacity ratings for summer 2026 established by tests and may change slightly from year to year. The summer period is the most relevant for capacity planning purposes.
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.
We Power owns and leases its share of the ERGS units and both PWGS units 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 renewable facility acquisitions, see Note 2, Acquisitions.
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.
This is a result of continually reaching demand peaks in the summer months, primarily due to air conditioning demand. Capacity for wind generating facilities is based on nameplate capacity, which is the amount of energy a turbine should produce at optimal wind speeds.
(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
(2) Nameplate capacity is the amount of energy a source should produce under optimal conditions, such as optimal wind speeds or solar irradiance. 2025 Form 10-K 43 WEC Energy Group, Inc. Table of Contents
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.
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 900 MWs of additional coal-fired generation, which includes the planned retirements of OCPP Units 7-8 and Weston Unit 3. (8) DER facilities are distribution system interconnected solar projects that are typically 5-10 MWs each.
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.
Where distribution lines and services and natural gas distribution mains and services occupy private property, we have in some, but not all instances, obtained consents, permits, or easements for these installations from the apparent owners or those in possession of those properties, generally without an examination of ownership records or title.
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.
As of December 31, 2025, we operated approximately 35,200 miles of overhead distribution lines and approximately 37,600 miles of underground distribution cable, as well as approximately 420 electric distribution substations and approximately 649,500 line transformers. Battery Energy Storage Systems We also own 99 MWs of BESS at Paris located in Kenosha County, WI which was completed in June 2025.
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(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.
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Table of Contents installations from the apparent owners or those in possession of those properties, generally without an examination of ownership records or title.
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For more information on recent renewable facility acquisitions, see Note 2, Acquisitions.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeExecutive 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.
Biggest changeAge 56. • WEC Energy Group — Executive Vice President and Chief Financial Officer since June 2020. • WE — Executive Vice President and Chief Financial Officer since June 2020. Director since June 2020. Molly A. Mulroy. Age 50. • WBS (a centralized service company of WEC Energy Group) – Executive Vice President and Chief Administrative Officer since August 2021.
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.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 2025 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.
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.
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 53. • WBS (a centralized service company of WEC Energy Group) – Assistant Corporate Secretary since January 2025.
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.
Kelsey. Age 61. • 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.
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 60. • WBS (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 60. • WEC Energy Group — President and Chief Executive Officer since February 2022.
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 59. • WEC Energy Group — Executive Vice President - External Affairs since June 2015. • WBS (a centralized service company of WEC Energy Group) — Executive Vice President - External Affairs since January 2019. William J. Guc. Age 56. • WEC Energy Group — Controller since October 2015.
Senior 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.
Senior Executive Vice President and Chief Operating Officer from June 2020 to January 2022. Director since February 2022. • WE — Chairman of the Board and Chief Executive Officer since February 2022. President from January 2022 to April 2024. Executive Vice President from June 2020 to December 2021. Director since April 2016. Xia Liu.
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.
Director since April 2024. • NiSource, Inc. — Senior Vice President and President, NIPSCO from May 2020 to March 2024. 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.
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 .
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 . Age 52. • WEC Energy Group — Executive Vice President and Chief Operating Officer since May 2025. • WE — President since April 2024.
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
Age 61. • WEC Energy Group — Senior Vice President - Corporate Communications and Investor Relations since June 2015. Certain executive officers also hold officer and/or director positions at WEC Energy Group's other significant subsidiaries. 2025 Form 10-K 45 WEC Energy Group, Inc. Table of Contents PART II
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.
Vice President and Chief Information Officer from January 2019 through July 2021. Director since November 2021. Anthony L. Reese. Age 44. • WEC Energy Group — Vice President and Treasurer since October 2019. • WE — Vice President and Treasurer since October 2019. Mary Beth Straka.
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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.
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Director since June 2020. • CenterPoint Energy, Inc. — Senior Advisor from April 2020 to May 2020. Executive Vice President and Chief Financial Officer from April 2019 to April 2020.
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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.
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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.
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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.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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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.
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, 2026, based upon the number of WEC Energy Group shareholder accounts (including accounts in our stock purchase and dividend reinvestment plan), we had approximately 32,000 registered shareholders.

Item 7. Management's Discussion & Analysis

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

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Biggest changeTable of Contents The 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 the line items below $ 318.5 $ 303.4 $ 319.4 $ (15.1) $ 16.0 Riders (1) 139.7 94.3 127.2 (45.4) 32.9 Regulatory amortizations (1) 2.3 0.2 (2.4) (2.1) (2.6) Other 1.0 — 15.0 (1.0) 15.0 Total other operation and maintenance $ 461.5 $ 397.9 $ 459.2 $ (63.6) $ 61.3 (1) These riders and regulatory amortizations are substantially offset in margins and therefore do not have a significant impact on net income.
Biggest changeYear Ended December 31 (in millions) 2025 2024 B (W) Operating revenues $ 1,683.6 $ 1,602.4 $ 81.2 Operating expenses Cost of natural gas sold 508.0 376.7 (131.3) Other operation and maintenance 482.2 461.5 (20.7) Impairments 130.0 12.1 (117.9) Depreciation and amortization 259.7 255.4 (4.3) Property and revenue taxes 55.5 59.9 4.4 Operating income 248.2 436.8 (188.6) Other income, net 8.6 7.6 1.0 Interest expense 88.9 94.7 5.8 Income before income taxes 167.9 349.7 (181.8) Income tax expense 45.8 97.6 51.8 Net income attributed to common shareholders $ 122.1 $ 252.1 $ (130.0) The following table shows a breakdown of other operation and maintenance: Year Ended December 31 (in millions) 2025 2024 B (W) Operation and maintenance not included in the line items below $ 323.2 $ 318.5 $ (4.7) Riders (1) 154.2 139.7 (14.5) Regulatory amortizations (1) 2.8 2.3 (0.5) Other 2.0 1.0 (1.0) Total other operation and maintenance $ 482.2 $ 461.5 $ (20.7) (1) These riders and regulatory amortizations are substantially offset in margins and therefore do not have a significant impact on net income.
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.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS CORPORATE DEVELOPMENTS Introduction We are a diversified holding company with natural gas and electric utility operations (serving customers in Wisconsin, Illinois, Michigan, and Minnesota), an approximately 60% equity ownership interest in ATC (a for-profit electric transmission company regulated by FERC and certain state regulatory commissions), and non-utility energy infrastructure operations through We Power (which owns generation assets in Wisconsin that it leases to WE), Bluewater (which owns underground natural gas storage facilities in Michigan), and WECI, which holds ownership interests in several renewable generating facilities.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS CORPORATE DEVELOPMENTS Introduction We are a diversified holding company with natural gas and electric utility operations (serving customers in Wisconsin, Illinois, Michigan, and Minnesota), an approximately 60% equity ownership interest in ATC (a for-profit electric transmission company regulated by the FERC and certain state regulatory commissions), and non-utility energy infrastructure operations through We Power (which owns generation assets in Wisconsin that it leases to WE), Bluewater (which owns underground natural gas storage facilities in Michigan), and WECI (which holds ownership interests in several renewable generating facilities).
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.
While our suppliers have been able to provide the CBP sufficient documentation to meet the 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.
These factors include environmental requirements, regulatory restraints and requirements, changes in tax laws and regulations, acquisition and development opportunities, market volatility, economic trends, supply chain disruptions, inflation, and interest rates. Our estimated capital expenditures and acquisitions for the next three years are reflected below. These amounts include anticipated expenditures for environmental compliance and certain remediation issues.
These factors include environmental and regulatory requirements, changes in tax laws and regulations, acquisition and development opportunities, market volatility, economic trends, supply chain disruptions, inflation, and interest rates. Our estimated capital expenditures and acquisitions for the next three years are reflected below. These amounts include anticipated expenditures for environmental compliance and certain remediation issues.
Table of Contents In December 2024, pursuant to a tender offer, we repurchased $250.0 million aggregate principal amount of the $600.0 million outstanding of our 5.60% Senior Notes due September 12, 2026 and repurchased $150.0 million aggregate principal amount of the $450.0 million outstanding of our 1.80% Senior Notes due October 15, 2030, for $380.9 million, plus accrued interest, with proceeds received from issuing commercial paper.
In December 2024, pursuant to a tender offer, we repurchased $250.0 million aggregate principal amount of the $600.0 million outstanding of our 5.60% Senior Notes due September 12, 2026 and repurchased $150.0 million aggregate principal amount of the $450.0 million outstanding of our 1.80% Senior Notes due October 15, 2030, for $380.9 million, plus accrued interest, with proceeds received from issuing commercial paper.
Risk Factors – Risks Related to the Operation of Our Business – Our operations and corporate strategy may be adversely affected by supply chain disruptions and inflation. • Item 1A.
Risk Factors – Risks Related to the Operation of Our Business – Our operations and corporate strategy may be adversely affected by supply chain disruptions, inflation, and tariffs. • Item 1A.
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 amount, type, and timing of any financings in 2026, 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.
See Note 26, Regulatory Environment, for more information regarding recent and pending rate proceedings, orders, and investigations involving our utilities. Uncollectible Expense Adjustment Rider The rates of PGL and NSG include a UEA rider for cost recovery or refund of uncollectible expense based on the difference between actual uncollectible write-offs and the amounts recovered in rates.
See Note 26, Regulatory Environment, for more information regarding recent and pending rate proceedings, orders, and investigations involving our utilities. Illinois Riders Uncollectible Expense Adjustment Rider The rates of PGL and NSG include a UEA rider for cost recovery or refund of uncollectible expense based on the difference between actual uncollectible write-offs and the amounts recovered in rates.
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.
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 We consult with our investment advisors on an annual basis to help us forecast expected long-term returns on plan assets by reviewing actual historical returns and calculating expected total trust returns using the weighted-average of long-term market returns for each of the major target asset categories utilized in the funds.
We consult with our investment advisors on an annual basis to help us forecast expected long-term returns on plan assets by reviewing actual historical returns and calculating expected total trust returns using the weighted-average of long-term market returns for each of the major target asset categories utilized in the funds.
As a result, we estimate that this proposal, if adopted, would reduce our future after-tax equity earnings from ATC by approximately $7 million annually on a prospective basis. The transmission costs WE, WPS, and UMERC are required to pay ATC after the effective date would also be reduced by this proposal.
As a result, we estimate that this proposal, if adopted, would reduce our future after-tax equity earnings from ATC by approximately $9 million annually on a prospective basis. The transmission costs WE, WPS, and UMERC are required to pay ATC after the effective date would also be reduced by this proposal.
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%.
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, 2025, the fair value exceeded its carrying value by over 50%.
The LNG facilities are expected to reduce the likelihood of constraints on our natural gas distribution system during the highest demand days of winter. • Through the SMP, PGL had been working to replace old iron pipes and facilities in Chicago’s natural gas delivery system with modern polyethylene pipes to reinforce the long-term safety and reliability of the system.
The LNG facilities are expected to reduce the likelihood of constraints on our natural gas distribution system during the highest demand days of winter. • PGL had been working to replace old iron pipes and facilities in Chicago’s natural gas delivery system with modern polyethylene pipes to reinforce the long-term safety and reliability of the system.
The UEA rider is subject to an annual reconciliation whereby costs are reviewed for accuracy and prudency by the ICC. In May 2023, the ICC issued a written order on PGL's and NSG's 2018 UEA rider reconciliation. The order required a $15.4 million and $0.7 million refund to ratepayers at PGL and NSG, respectively.
The UEA rider is subject to an annual reconciliation whereby costs are reviewed for accuracy and prudency by the ICC. In May 2023, the ICC issued a written order on PGL's and NSG's 2018 UEA rider reconciliation. The order required a $15.4 million and $0.7 million refund to customers at PGL and NSG, respectively.
We have already retired nearly 2,500 MWs of fossil-fueled generation since the beginning of 2018, which includes the retirement of OCPP Units 5 and 6 in May 2024, the 2019 retirement of the PIPP, and the 2018 retirements of the Pleasant Prairie power plant, the Pulliam power plant, and the jointly-owned Edgewater Unit 4 generating unit.
Additionally, we have retired nearly 2,500 MWs of fossil-fueled generation since the beginning of 2018, which includes the retirement of OCPP Units 5 and 6 in May 2024, the 2019 retirement of the PIPP, and the 2018 retirements of the Pleasant Prairie power plant, the Pulliam power plant, and the jointly-owned Edgewater Unit 4 generating unit.
Regulatory, Legislative, and Legal Matters Regulatory Recovery Our utilities account for their regulated operations in accordance with accounting guidance under the Regulated Operations Topic of the FASB ASC. Our rates are determined by various regulatory commissions. See Item 1. Business – E. Regulation for more information on these commissions.
Table of Contents Regulatory, Legislative, and Legal Matters Regulatory Recovery Our utilities account for their regulated operations in accordance with accounting guidance under the Regulated Operations Topic of the FASB ASC. Our rates are determined by various regulatory commissions. See Item 1. Business – E. Regulation for more information on these commissions.
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.
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.
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.
At December 31, 2025, 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.
In January 2025, the Department of Homeland Security announced the addition of several more Chinese businesses to the UFLPA, including five solar supply chain providers. We are working to avoid doing business with these companies and remain in compliance with the UFLPA.
In 2025, the Department of Homeland Security announced the addition of more Chinese businesses to the UFLPA, including several solar supply chain providers. We are working to avoid doing business with these companies and remain in compliance with the UFLPA.
Since the majority of PGL and NSG customers use natural gas for heating, net income attributed to common shareholders at the Illinois segment is sensitive to weather and is generally higher during the winter months.
Table of Contents Since the majority of PGL and NSG customers use natural gas for heating, net income attributed to common shareholders at the Illinois segment is sensitive to weather and is generally higher during the winter months.
Pension and Other Postretirement Employee Benefits The costs of providing non-contributory defined pension benefits and OPEB, described in Note 20, Employee Benefits, are dependent upon numerous factors resulting from actual plan experience and assumptions of future experience.
Table of Contents Pension and Other Postretirement Employee Benefits The costs of providing non-contributory defined pension benefits and OPEB, described in Note 20, Employee Benefits, are dependent upon numerous factors resulting from actual plan experience and assumptions of future experience.
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.
In addition to the above, our balance sheet at December 31, 2025 included various other liabilities that, due to the nature of the liabilities, the amount and timing of future payments cannot be determined with certainty.
Market Risks and Other Significant Risks We are exposed to market and other significant risks as a result of the nature of our businesses and the environments in which those businesses operate. These include, but are not limited to, the risks described below.
Table of Contents Market Risks and Other Significant Risks We are exposed to market and other significant risks as a result of the nature of our businesses and the environments in which those businesses operate. These include, but are not limited to, the risks described below.
Management evaluates and manages our capitalization structure, including our total debt to total capitalization ratio, using the GAAP calculation as adjusted to reflect the treatment of the 2024 Junior Notes and 2007 Junior Notes by the majority of rating agencies.
Management evaluates and manages our capitalization structure, including our total debt to total capitalization ratio, using the GAAP calculation as adjusted to reflect the treatment of the 2025 Junior Notes and 2024 Junior Notes by the majority of rating agencies.
American Transmission Company Allowed Return on Equity Complaints The ROE allowed by the FERC helps determine how much transmission owners, such as ATC, earn on their transmission assets as well as how much consumers pay for those assets.
American Transmission Company Allowed Return on Equity Complaint The ROE allowed by the FERC helps determine how much transmission owners, such as ATC, earn on their transmission assets as well as how much consumers pay for those assets.
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.
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.
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.
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, 2025.
Gross Margin GAAP and Utility Margin Non-GAAP The following table summarizes our other states segment gross margin (GAAP) and reconciles gross margin (GAAP) to utility margin (non-GAAP). See "Non-GAAP Financial Measures" above for additional information regarding gross margin (GAAP) and utility margin (non-GAAP).
Table of Contents Gross Margin GAAP and Utility Margin Non-GAAP The following table summarizes our other states segment gross margin (GAAP) and reconciles gross margin (GAAP) to utility margin (non-GAAP). See Non-GAAP Financial Measures above for additional information regarding gross margin (GAAP) and utility margin (non-GAAP).
Wisconsin Our Wisconsin utilities offer both natural gas transportation service and interruptible natural gas sales to enable customers to better manage their energy costs. Customers continue to switch between firm system supply, interruptible system supply, and transportation service each year as the economics and service options change.
Table of Contents Wisconsin Our Wisconsin utilities offer both natural gas transportation service and interruptible natural gas sales to enable customers to better manage their energy costs. Customers continue to switch between firm system supply, interruptible system supply, and transportation service each year as the economics and service options change.
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.
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 2026 rate case filing and November 2023 ICC rate order. Chicago Decarbonization Efforts The CABO was introduced at a meeting of the Chicago city council held in January 2024.
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.
We expect our 2026 annual effective tax rate to be between 5.5% and 6.5%. 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.
Changes in benefit costs 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 orders issued by the PSCW. See Note 26, Regulatory Environment, for more information on 2023 and 2024 rates at our Wisconsin utilities.
Changes in benefit costs are mitigated at our Wisconsin utilities through the requirement that WE, WPS, and WG implement escrow accounting treatment for pension and OPEB costs, as required by rate orders issued by the PSCW. See Note 26, Regulatory Environment, for more information on rates at our Wisconsin utilities.
Accessing the capital markets allows us to obtain external short-term borrowings, including commercial paper and term loans, and issue intermediate or long-term debt securities, as well as other types of securities. In 2024, we started issuing common equity through a combination of our employee benefit plans and stock purchase and dividend reinvestment plan, as well as through an at-the-market program.
Accessing the capital markets allows us to obtain external short-term borrowings, including commercial paper and term loans, and issue intermediate or long-term debt securities, as well as other types of securities. We also issue common equity through a combination of our employee benefit plans and stock purchase and dividend reinvestment plan, as well as through an at-the-market program.
We also have other commodity contracts that, in the event of a credit rating downgrade, could result in a reduction of our unsecured credit granted by counterparties. In addition, access to capital markets at a reasonable cost is determined in large part by credit quality. Any credit ratings downgrade could impact our ability to access capital markets.
We also have other commodity contracts that, in the event of a credit rating downgrade, could result in a reduction of our unsecured credit granted by counterparties. In addition, access to capital markets at a reasonable cost is determined in large part by credit quality.
In addition, the construction of additional LNG facilities in Wisconsin has been proposed as part of the 2025-2029 capital plan and would provide another approximately four Bcf of natural gas supply.
In addition, the construction of additional LNG facilities in Wisconsin has been proposed as part of our capital plan and would provide another approximately four Bcf of natural gas supply.
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.
Based on the variable rate debt outstanding at December 31, 2025 and 2024, a hypothetical increase in market interest rates of one percentage point would have increased annual interest expense by $19.2 million and $11.2 million in 2025 and 2024, respectively.
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.
Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources in Part II of our 2024 Annual Report on Form 10-K, which was filed with the SEC on February 21, 2025.
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.
If WE had a sub-investment grade credit rating at December 31, 2025, it could have been required to post $106 million of additional collateral or other assurances pursuant to the terms of a PPA.
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).
Actuarial Assumption (in millions, except percentages) Percentage-Point Change in Assumption Impact on Projected Benefit Obligation Impact on 2025 Pension Cost Discount rate (0.5) $ 100.7 $ 6.6 Discount rate 0.5 (90.8) (7.5) Rate of return on plan assets (0.5) N/A 13.1 Rate of return on plan assets 0.5 N/A (13.1) 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).
The proceeding includes a broad range of stakeholders, including Illinois utilities and other interested parties. The “Future of Gas” proceeding is expected to be completed in 2026. At this time, we cannot predict the ultimate outcome of this proceeding or the resulting impact to our natural gas operations in Illinois.
The proceeding includes a broad range of stakeholders, including Illinois utilities and other interested parties. The "Future of Gas" proceeding is expected to be completed by the end of 2026. At this time, we cannot predict the ultimate outcome of this proceeding or the resulting impact to our natural gas operations in Illinois.
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 following discussion and analysis of our Liquidity and Capital Resources includes comparisons of our cash flows for the year ended December 31, 2025 with the year ended December 31, 2024. For a similar discussion that compares our cash flows for the year ended December 31, 2024 with the year ended December 31, 2023, see Item 7.
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.
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, 2025, our current liabilities exceeded our current assets by $2,308.7 million.
The performance of existing plan assets, long-term discount rates, changes in assumptions, and other factors could affect our future contributions to the plans, our financial position if our accumulated benefit obligation exceeds the fair value of the plan assets, and future results of operations related to changes in pension and OPEB expense and the assumed rate of return.
Table of Contents discount rates, changes in assumptions, and other factors could affect our future contributions to the plans, our financial position if our accumulated benefit obligation exceeds the fair value of the plan assets, and future results of operations related to changes in pension and OPEB expense and the assumed rate of return.
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.
Table of Contents 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 advanced metering infrastructure program, replacing aging meter-reading equipment on both our network and customer property.
Any forecast contains a degree of uncertainty, and changes in these cash flows could significantly increase or decrease the calculated fair value of a reporting unit. For our reporting units that are regulated, a fair recovery of and return on costs prudently incurred to serve customers is assumed.
For the income approach, we used internal forecasts to project cash flows. Any forecast contains a degree of uncertainty, and changes in these cash flows could significantly increase or decrease the calculated fair value of a reporting unit. For our reporting units that are regulated, a fair recovery of and return on costs prudently incurred to serve customers is assumed.
Table of Contents (3) Represents costs associated with the We Power generation units, including operating and maintenance costs recognized by WE.
(3) Represents costs associated with the We Power generation units, including operating and maintenance costs recognized by WE.
Changes in the market prices of these assets can affect future pension and OPEB expenses. Additionally, future contributions can also be affected by the investment returns on trust fund assets.
These trusts invest in debt and equity securities. Changes in the market prices of these assets can affect future pension and OPEB expenses. Additionally, future contributions can also be affected by the investment returns on trust fund assets.
The fair value of our trust fund assets and expected long-term returns were approximately: (in millions) As of December 31, 2024 Expected Return on Assets in 2025 Pension trust funds $ 2,624.3 6.61 % OPEB trust funds $ 850.0 6.50 % Fiduciary oversight of the pension and OPEB trust fund investments is the responsibility of an Investment Trust Policy Committee.
The fair value of our trust fund assets and expected long-term returns were approximately: (in millions) As of December 31, 2025 Expected Return on Assets in 2026 Pension trust funds $ 2,664.0 6.61 % OPEB trust funds $ 904.5 6.50 % Fiduciary oversight of the pension and OPEB trust fund investments is the responsibility of an Investment Trust Policy Committee.
The decrease in cash paid for expenditures at the Illinois segment during 2024, compared with 2023, was driven by lower payments related to PGL's natural gas distribution system, including SMP. For more information on the factors contributing to this decrease, see Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – Illinois Proceedings.
The decrease in cash paid for capital expenditures at the Illinois segment during 2025, compared with 2024, was driven by lower payments related to PGL's upgrade of its natural gas delivery system. For more information on the factors contributing to this decrease, see Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – Illinois Proceedings.
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.
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.
Our planned investment focus from 2025 to 2029 is in our regulated utilities and our investment in ATC. We expect total capital expenditures for our regulated utility businesses to be approximately $24.4 billion from 2025 to 2029. In addition, we currently forecast that our share of ATC's projected capital expenditures over the next five years will be approximately $3.2 billion.
Our planned investment focus from 2026 to 2030 is in our regulated utilities and our investment in ATC. We expect total capital expenditures for our regulated utility businesses to be approximately $33.4 billion from 2026 to 2030. In addition, we currently forecast that our share of ATC's projected capital expenditures over the next five years will be approximately $4.1 billion.
We do not expect to make any contributions to ATC Holdco during that period. WEC's portion of the investment in MISO Tranche 1 is estimated to be approximately $580 million between 2025 and 2029, a portion of which will be funded by ATC's cash from operations.
We do not expect to make any contributions to ATC Holdco during that period. WEC's portion of the investment in MISO Tranche 1 and Tranche 2.1 is estimated to be approximately $700 million and $400 million, respectively, between 2026 and 2030, a portion of which will be funded by ATC's cash from operations.
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 substantially offset by an equal reduction to natural gas costs.
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 substantially offset by an equal reduction to natural gas costs. 2025 Form 10-K 71 WEC Energy Group, Inc.
We are not required by the MPSC or state law to make this choice option available to customers, but since this option is currently provided to our Michigan customers, we would need MPSC approval to eliminate it.
We are not required by the MPUC or state law to make this choice option available to customers, but since this option is currently provided to our Minnesota commercial and industrial customers, we would need MPUC approval to eliminate it.
In December 2024, we redeemed the remaining $358.9 million outstanding principal at par, plus accrued interest, of our 2007 Junior Notes with the proceeds we received from the issuance of our 2024A Junior Notes and 2024B Junior Notes. 2024 Form 10-K 81 WEC Energy Group, Inc.
In December 2024, we redeemed the remaining $358.9 million outstanding principal at par, plus accrued interest, of our 2007 Junior Notes with the proceeds we received from the issuance of our 2024A Junior Notes and 2024B Junior Notes.
Other Operating Expenses (includes other operation and maintenance, depreciation and amortization, and property and revenue taxes) Other operating expenses at the Wisconsin segment increased $75.4 million during 2024, compared with 2023.
Other Operating Expenses (includes other operation and maintenance, depreciation and amortization, and property and revenue taxes) Other operating expenses at the Wisconsin segment increased $287.3 million during 2025, compared with 2024.
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.
Corporate Strategy We are working to build and sustain long-term value for our shareholders and customers by supporting economic growth in our region while focusing on the fundamentals of our business: reliability, operating efficiency, financial discipline, environmental stewardship, exceptional customer care, and safety. Our capital plan provides a roadmap for us to achieve this goal.
Reliability We have made significant reliability-related investments in recent years, and in accordance with our capital plan, expect to continue strengthening and modernizing our generation fleet, as well as our electric and natural gas distribution networks to further improve reliability. 2024 Form 10-K 50 WEC Energy Group, Inc.
Reliability We have made significant reliability-related investments in recent years, and in accordance with our capital plan, expect to continue strengthening and modernizing our generation fleet, as well as our electric and natural gas distribution networks to further improve reliability.
We believe that we and our customers can benefit from the IRA’s provisions that extend tax benefits for renewable technologies, increase or restore higher rates for PTCs, add an option to claim PTCs for solar projects, expand qualified ITC facilities to include standalone energy storage, and its provision to allow companies to transfer tax credits generated from renewable projects.
We and our customers have benefited from the IRA’s provisions to extend tax benefits for renewable technologies, increase or restore higher rates for PTCs, claim PTCs for solar projects, expand qualified ITC facilities to include standalone energy storage, and allow companies to transfer tax credits generated from renewable projects.
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.
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 following is a list of accounting policies and estimates that require management's most difficult, subjective, or complex judgments and may change in subsequent periods. Regulatory Accounting Our utility operations follow the guidance under the Regulated Operations Topic of the FASB ASC (Topic 980).
The following is a list of accounting policies and estimates that require management's most difficult, subjective, or complex judgments and may change in subsequent periods. Regulatory Accounting Our utility operations follow the guidance under the Regulated Operations Topic of the FASB ASC (Topic 980). Our financial statements reflect the effects of the ratemaking principles followed by the jurisdictions regulating us.
Table of Contents In addition to our energy-related purchase obligations, we have commitments for other costs incurred in the normal course of business, including costs related to information technology services, meter reading services, maintenance and other service agreements for certain generating facilities, and various engineering agreements.
In addition to our energy-related purchase obligations, we have commitments for other costs incurred in the normal course of business, including costs related to information technology services, meter reading services, maintenance and other service agreements for certain generating facilities, and various engineering agreements. Our estimated future cash requirements related to these purchase obligations, excluding energy-related obligations, are reflected below.
Illinois Proceedings In the PGL rate order issued by the ICC in November 2023, the ICC ordered PGL to pause spending on its SMP until the ICC completed a proceeding to determine the optimal method for replacing aging natural gas infrastructure and a prudent investment level. In accordance with the written order, the ICC initiated the proceeding in January 2024.
Illinois Proceedings In the PGL rate order issued by the ICC in November 2023, the ICC ordered PGL to pause spending on its projects to upgrade its natural gas delivery system until the ICC completed a proceeding to determine the optimal method for replacing aging natural gas infrastructure and a prudent investment level.
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.
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 2025 Form 10-K 79 WEC Energy Group, Inc. Table of Contents accordance with our capital plan.
These expenses are included in the above table to calculate gross margin as defined under GAAP. 2024 Compared with 2023 Gross margin (GAAP) at the Wisconsin segment increased $77.5 million during 2024, compared to 2023 and utility margin (non-GAAP) increased $97.6 million during 2024, compared to 2023.
These expenses are included in the above table to calculate gross margin as defined under GAAP. Gross margin (GAAP) at the Wisconsin segment increased $310.2 million during 2025, compared with 2024, and utility margin (non-GAAP) increased $536.2 million during 2025, compared with 2024.
Capitalization Structure The following table shows our capitalization structure as of December 31, 2024 and 2023, as well as an adjusted capitalization structure that we believe is consistent with how a majority of the rating agencies currently view our Junior Notes: 2024 2023 (in millions) Actual Adjusted (1) Actual Adjusted (2) Common shareholders' equity $ 12,395.0 $ 12,770.0 $ 11,724.2 $ 11,974.2 Preferred stock of subsidiary 30.4 30.4 30.4 30.4 Long-term debt (including current portion) 18,907.1 18,532.1 16,631.1 16,381.1 Short-term debt 1,116.6 1,116.6 2,020.9 2,020.9 Total capitalization $ 32,449.1 $ 32,449.1 $ 30,406.6 $ 30,406.6 Total debt $ 20,023.7 $ 19,648.7 $ 18,652.0 $ 18,402.0 Ratio of debt to total capitalization 61.7 % 60.6 % 61.3 % 60.5 % (1) Included in long-term debt on our Consolidated Balance Sheets as of December 31, 2024, was $750.0 million principal amount of WEC Energy Group's 2024 Junior Notes (2024A Junior Notes and 2024B Junior Notes, collectively) due 2055.
Capitalization Structure The following table shows our capitalization structure as of December 31, 2025 and 2024, as well as an adjusted capitalization structure that we believe is consistent with how a majority of the rating agencies currently view our Junior Notes: 2025 2024 (in millions) Actual Adjusted (1) Actual Adjusted (2) Common shareholders' equity $ 13,613.6 $ 14,288.6 $ 12,395.0 $ 12,770.0 Preferred stock of subsidiary 30.4 30.4 30.4 30.4 Long-term debt (including current portion) 20,017.5 19,342.5 18,907.1 18,532.1 Short-term debt 1,924.7 1,924.7 1,116.6 1,116.6 Total capitalization $ 35,586.2 $ 35,586.2 $ 32,449.1 $ 32,449.1 Total debt $ 21,942.2 $ 21,267.2 $ 20,023.7 $ 19,648.7 Ratio of debt to total capitalization 61.7 % 59.8 % 61.7 % 60.6 % (1) Included in long-term debt on our Consolidated Balance Sheets as of December 31, 2025, was $600.0 million principal amount of WEC Energy Group's 2025 Junior Notes due 2056 and $750.0 million principal amount of WEC Energy Group's 2024 Junior Notes (2024A Junior Notes and 2024B Junior Notes, collectively) due 2055.
Other States Segment Contribution to Net Income Attributed to Common Shareholders The other states segment's contribution to net income attributed to common shareholders for the year ended December 31, 2024 was $54.5 million, representing a $6.4 million, or 13.3%, increase over the prior year.
Other States Segment Contribution to Net Income Attributed to Common Shareholders The other states segment's contribution to net income attributed to common shareholders for the year ended December 31, 2025 was $60.8 million, representing a $6.3 million, or 11.6%, increase over the prior year.
If the resolution is passed, this analysis would need to be completed prior to the adoption of any decarbonization initiatives, such as the CABO. 2024 Form 10-K 86 WEC Energy Group, Inc. Table of Contents If approved by the city council, the CABO is expected to become effective one year after the approval date.
If the resolution is passed, this analysis would need to be completed prior to the adoption of any decarbonization initiatives, such as the CABO. If approved by the city council, the CABO is expected to become effective one year after the approval date.
This sensitivity analysis was performed assuming a constant level of variable rate debt during the period and an immediate increase in interest rates, with no other changes for the remainder of the period. Marketable Securities Return We use various trusts to fund our pension and OPEB obligations. These trusts invest in debt and equity securities.
This sensitivity analysis was performed assuming a constant level of variable rate debt during the period and an immediate increase in interest rates, with no other changes for the remainder of the period. 2025 Form 10-K 78 WEC Energy Group, Inc. Table of Contents Marketable Securities Return We use various trusts to fund our pension and OPEB obligations.
On February 20, 2025, the ICC issued an order setting expectations for PGL's prospective operations under its SMP. The ICC directed us to focus on replacing all cast and ductile iron pipe that has a diameter under 36 inches by January 1, 2035.
In accordance with the written order, the ICC initiated the proceeding in January 2024. In February 2025, the ICC issued an order setting expectations for PGL's prospective operations. The ICC directed us to focus on retiring all cast and ductile iron pipe that has a diameter under 36 inches by January 1, 2035.
In addition, any economic downturn or disruption of national or international markets could adversely affect the financial condition of our customers and demand for their products, which could affect their demand for our products. Inflation and Supply Chain Disruptions We continue to monitor the impact of inflation and supply chain disruptions.
In addition, any economic downturn or disruption of national or international markets could adversely affect the financial condition of our customers and demand for their products, which could affect their demand for our products.
In this order, the FERC expanded its base ROE methodology to include the capital-asset pricing model in addition to the discounted cash flow model to better reflect how investors make their investment decisions. The FERC also rejected the use of the risk premium model as part of its base ROE methodology in this order.
In this order, the FERC expanded its base ROE methodology to include the capital-asset pricing model in addition to the discounted cash flow model to better reflect how investors make their investment decisions. The FERC also rejected the use of the risk 2025 Form 10-K 76 WEC Energy Group, Inc.
We expect the majority of these future pension and OPEB payments to be paid from our outside trusts. See Sources of Cash–Investments in Outside Trusts below for more information.
See Note 20, Employee Benefits, for our expected contributions in 2026 and our expected pension and OPEB payments for the next 10 years. We expect the majority of these future pension and OPEB payments to be paid from our outside trusts. See Sources of Cash–Investments in Outside Trusts below for more information.
Table of Contents Weather Our utilities' rates are based upon estimated normal temperatures. Our electric utility margins are unfavorably sensitive to below normal temperatures during the summer cooling season and, to some extent, to above normal temperatures during the winter heating season. Our natural gas utility margins are unfavorably sensitive to above normal temperatures during the winter heating season.
Our electric utility margins are unfavorably sensitive to below normal temperatures during the summer cooling season and, to some extent, to above normal temperatures during the winter heating season. Our natural gas utility margins are unfavorably sensitive to above normal temperatures during the winter heating season.
LIQUIDITY AND CAPITAL RESOURCES Overview We expect to maintain adequate liquidity to meet our cash requirements for operation of our businesses and implementation of our corporate strategy through internal generation of cash from operations and access to the capital markets. 2024 Form 10-K 74 WEC Energy Group, Inc.
Table of Contents LIQUIDITY AND CAPITAL RESOURCES Overview We expect to maintain adequate liquidity to meet our cash requirements for operation of our businesses and implementation of our corporate strategy through internal generation of cash from operations and access to the capital markets.
Rebates and programs are available to residential and commercial customers of MERC through the CIP, which is funded by rate payers using the Conservation Cost Recovery Charge and the Conservation Cost Recovery Adjustment funds that are collected on their monthly billing statements.
Rebates and programs are available to residential and commercial customers of MERC through the CIP, which is funded by rate payers using the Conservation Cost Recovery Charge and the Conservation Cost Recovery Adjustment funds that are collected on their monthly billing statements. • A $3.3 million increase related to MGU's energy optimization program, which provides rebates, incentives, and energy efficiency education to customers.
Higher commodity costs combined with slower economic conditions also expose us to greater risks of accounts receivable write-offs as more customers are unable to pay their bills. See Note 5, Credit Losses, for more information on riders and other mechanisms that allow for cost recovery or refund of uncollectible expense. 2024 Form 10-K 90 WEC Energy Group, Inc.
Higher commodity costs combined with slower economic conditions also expose us to greater risks of accounts receivable write-offs as more customers are unable to pay their bills. See Note 5, Credit Losses, for more information on riders and other mechanisms that allow for cost recovery or refund of uncollectible expense. Weather Our utilities' rates are based upon estimated normal temperatures.
It is an aggressive plan to cut emissions, maintain superior reliability, deliver significant savings for customers, and grow our investment in the future of energy. Throughout our strategic planning process, we take into account important developments, risks and opportunities, including new technologies, customer preferences and affordability, energy resiliency efforts, and sustainability.
It is a plan premised upon maintaining superior reliability, delivering savings for customers, and growing our investment in the future of energy. Throughout our strategic planning process, we take into account important developments, risks and opportunities, including new technologies, customer preferences and affordability, energy resiliency efforts, and sustainability.
Moody's affirmed PGL's ratings including its Aa3 senior secured rating and its P-1 short term rating for commercial paper. See Note 26, Regulatory Environment, for more information on the outcome of the rate order.
Moody's affirmed PGL's ratings, including its Aa3 senior secured rating and its P-1 short term rating for commercial paper. See Note 26, Regulatory Environment, for more information on the outcome of the rate order. In November 2025, Moody's changed the rating outlook for WPS to negative and WG to positive, both from stable.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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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.
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. 2025 Form 10-K 83 WEC Energy Group, Inc.

Other WEC 10-K year-over-year comparisons