Wisconsin Electric Power Co 10-Q for FY2025 Q2

Wisconsin Electric Power Co (WELPP)

10-Q 2025-08-01 For: 2025-06-30

Added on April 11, 2026

About this 10-Q

Wisconsin Electric Power Co filed this 10-Q on August 1, 2025, covering the quarter ended June 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended June 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.01B; up 12.1% from $902M a year earlier

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Affiliates
ATC						American Transmission Company LLC
We Power						W.E. Power, LLC
WEC Energy Group						WEC Energy Group, Inc.
WEPCo Environmental Trust						WEPCo Environmental Trust Finance I, LLC
WPS						Wisconsin Public Service Corporation

Federal and State Regulatory Agencies
CBP						United States Customs and Border Protection Agency
DOC						United States Department of Commerce
EPA						United States Environmental Protection Agency

PSCW						Public Service Commission of Wisconsin
SEC						United States Securities and Exchange Commission
USITC						United States International Trade Commission
WDNR						Wisconsin Department of Natural Resources

Accounting Terms
AFUDC						Allowance for Funds Used During Construction
ASU						Accounting Standards Update
FASB						Financial Accounting Standards Board
GAAP						United States Generally Accepted Accounting Principles
OPEB						Other Postretirement Employee Benefits
VIE						Variable Interest Entity

Environmental Terms
BATW						Bottom Ash Transport Water
BTA						Best Technology Available
CASAC						Clean Air Scientific Advisory Committee
CCR						Coal Combustion Residuals
CO2						Carbon Dioxide
CRL						Combustine Residual Leachate
CWA						Clean Water Act
ELG						Steam Electric Effluent Limitation Guidelines
FGD						Flue Gas Desulfurization
GHG						Greenhouse Gas
GHG Power Plant Rule						2024 Greenhouse Gas Power Plant Rule
MATS						Mercury and Air Toxics Standards
NAAQS						National Ambient Air Quality Standards
NOx						Nitrogen Oxide
PM						Particulate Matter
WPDES						Wisconsin Pollutant Discharge Elimination System

Measurements
Bcf						Billion Cubic Feet
Dth						Dekatherm
lb/MMBtu						Pound Per Million British Thermal Unit
MW						Megawatt
MWh						Megawatt-hours
µg/m3						Micrograms Per Cubic Meter

Other Terms and Abbreviations
AD						Antidumping
AI						Artificial Intelligence


AMI						Advanced Metering Infrastructure
Badger Hollow Wind						Badger Hollow Wind Energy Generation Facility

Chicago, IL-IN-WI						Chicago, Illinois, Indiana, and Wisconsin
CODM						Chief Operating Decision Maker
CVD						Countervailing Duty
D.C. Circuit Court of Appeals						United States Court of Appeals for the District of Columbia Circuit
Darien						Darien Solar Park
DRER						Dedicated Renewable Energy Resource
ERGS						Elm Road Generating Station
ETB						Environmental Trust Bond
EV						Electric Vehicle
Exchange Act						Securities Exchange Act of 1934, as amended
FTR						Financial Transmission Right
Good Oak						Good Oak Solar Generation Facility
Gristmill						Gristmill Solar Generation Facility
High Noon						High Noon Solar Energy Center
IRA						Inflation Reduction Act
ITC						Investment Tax Credit

LDC						Local Natural Gas Distribution Company
LNG						Liquefied Natural Gas
MISO						Midcontinent Independent System Operator, Inc.

NOPP						Notice of Planned Participation
OBBBA						One Big Beautiful Bill Act
OCPP						Oak Creek Power Plant
Paris						Paris Solar-Battery Park
PIPP						Presque Isle Power Plant
PPA						Power Purchase Agreement
PTC						Production Tax Credit
RICE						Reciprocating Internal Combustion Engine
RNG						Renewable Natural Gas
ROE						Return on Equity
S&P						Standard & Poor's
Saratoga						Saratoga Solar Electric Generation and BESS Facility
SIP						State Implementation Plan
Supreme Court						United States Supreme Court
Tax Legislation						Tax Cuts and Jobs Act of 2017
UFLPA						Uyghur Forced Labor Prevention Act
Ursa						Ursa Solar Electric Generation Facility
VLC						Very Large Customer
West Riverside						West Riverside Energy Center
Whitetail						Whitetail Wind Energy Generation Facility


CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)	Three Months Ended				Six Months Ended
	June 30				June 30
(in millions)	2025		2024		2025		2024
Operating revenues	$	1,010.8	$	902.0	$	2,189.9	$	1,940.8

Operating expenses
Cost of sales	326.3		279.9		725.9		632.1
Other operation and maintenance	249.8		237.4		501.9		479.0
Depreciation and amortization	156.3		142.0		307.2		281.6
Property and revenue taxes	29.6		29.3		60.5		60.1
Total operating expenses	762.0		688.6		1,595.5		1,452.8

Operating income	248.8		213.4		594.4		488.0

Other income, net	12.3		16.2		23.1		32.5
Interest expense	121.3		120.4		246.0		241.2
Other expense	(109.0)		(104.2)		(222.9)		(208.7)

Income before income taxes	139.8		109.2		371.5		279.3
Income tax expense	21.0		23.6		56.3		59.4
Net income	118.8		85.6		315.2		219.9

Preferred stock dividend requirements	0.3		0.3		0.6		0.6
Net income attributed to common shareholder	$	118.5	$	85.3	$	314.6	$	219.3


CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except share and per share amounts)	June 30, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	2.1	$	0.4
Accounts receivable and unbilled revenues, net of reserves of $32.9 and $46.9, respectively	621.4		601.2
Accounts receivable from related parties	97.9		128.6
Materials, supplies, and inventories	319.1		354.8
Prepaid taxes	109.7		139.8
Other prepayments	14.7		24.9

Other	24.6		23.2
Current assets	1,189.5		1,272.9

Long-term assets
Property, plant, and equipment, net of accumulated depreciation and amortization of $6,151.3 and $5,952.3, respectively	13,446.1		12,810.7
Regulatory assets (June 30, 2025 and December 31, 2024 include $72.2 and $76.5, respectively, related to WEPCo Environmental Trust)	2,940.5		2,946.3
Pension and OPEB assets	81.7		79.2
Other	89.9		90.5
Long-term assets	16,558.2		15,926.7
Total assets	$	17,747.7	$	17,199.6

Liabilities and Equity
Current liabilities
Short-term debt	$	174.5	$	179.9
Current portion of long-term debt (June 30, 2025 and December 31, 2024 includes $9.2 related to WEPCo Environmental Trust)	9.2		259.2
Current portion of finance lease obligations	106.0		99.3
Accounts payable	346.8		529.3
Accounts payable to related parties	181.1		206.1



Other	182.6		184.6
Current liabilities	1,000.2		1,458.4

Long-term liabilities
Long-term debt (June 30, 2025 and December 31, 2024 include $71.9 and $76.4, respectively, related to WEPCo Environmental Trust)	3,725.2		3,728.0
Finance lease obligations	2,751.6		2,742.9
Deferred income taxes	1,661.6		1,655.7
Regulatory liabilities	1,785.5		1,758.8

Other	411.2		348.6
Long-term liabilities	10,335.1		10,234.0

Commitments and contingencies (Note 19)

Common shareholder's equity
Common stock – $10 par value; 65,000,000 shares authorized; 33,289,327 shares outstanding	332.9		332.9
Additional paid in capital	3,413.5		2,703.0
Retained earnings	2,635.6		2,440.9
Common shareholder's equity	6,382.0		5,476.8

Preferred stock	30.4		30.4
Total liabilities and equity	$	17,747.7	$	17,199.6


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)	Six Months Ended
	June 30
(in millions)	2025		2024
Operating activities
Net income	$	315.2	$	219.9
Reconciliation to cash provided by operating activities
Depreciation and amortization	307.2		281.6
Deferred income taxes and ITCs, net	13.0		31.9


Change in –
Accounts receivable and unbilled revenues, net	(18.0)		42.0
Materials, supplies, and inventories	35.7		5.2
Prepaid taxes	30.1		(15.6)
Other prepayments	10.2		12.8

Collateral on deposit	(0.9)		12.8
Other current assets	1.9		—
Accounts payable	(122.0)		12.3
Accrued taxes	12.7		(9.8)



Other current liabilities	(19.1)		(8.4)
Other, net	1.7		32.1
Net cash provided by operating activities	567.7		616.8

Investing activities
Capital expenditures	(869.1)		(548.3)
Acquisition of West Riverside	—		(98.2)


Reimbursement for ATC's transmission infrastructure upgrades	33.1		6.2




Other, net	(11.0)		(1.6)
Net cash used in investing activities	(847.0)		(641.9)

Financing activities
Change in short-term debt	(5.4)		(160.3)
Issuance of long-term debt	—		349.2
Retirement of long-term debt	(254.6)		(4.5)
Payments for finance lease obligations	(48.4)		(42.4)
Equity contribution from parent	710.0		—
Payment of dividends to parent	(120.0)		(120.0)
Other, net	(0.7)		(3.8)
Net cash provided by financing activities	280.9		18.2

Net change in cash, cash equivalents, and restricted cash	1.6		(6.9)
Cash, cash equivalents, and restricted cash at beginning of period	2.5		7.5
Cash, cash equivalents, and restricted cash at end of period	$	4.1	$	0.6


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

	Wisconsin Electric Power Company Common Shareholder's Equity
(in millions)	Common Stock		Additional Paid In Capital		Retained Earnings		Total Common Shareholder's Equity		Preferred Stock		Total Equity
Balance at December 31, 2024	$	332.9	$	2,703.0	$	2,440.9	$	5,476.8	$	30.4	$	5,507.2
Net income attributed to common shareholder	—		—		196.1		196.1		—		196.1
Payment of dividends to parent	—		—		(60.0)		(60.0)		—		(60.0)
Equity contribution from parent	—		300.0		—		300.0		—		300.0
Stock-based compensation and other	—		0.5		—		0.5		—		0.5
Balance at March 31, 2025	$	332.9	$	3,003.5	$	2,577.0	$	5,913.4	$	30.4	$	5,943.8
Net income attributed to common shareholder	—		—		118.5		118.5		—		118.5
Payment of dividends to parent	—		—		(60.0)		(60.0)		—		(60.0)
Equity contribution from parent	—		410.0		—		410.0		—		410.0
Stock-based compensation and other	—		—		0.1		0.1		—		0.1
Balance at June 30, 2025	$	332.9	$	3,413.5	$	2,635.6	$	6,382.0	$	30.4	$	6,412.4


	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2025		2024		2025		2024
Wisconsin Electric Power Company
Electric utility	$	921.3	$	831.4	$	1,856.6	$	1,677.6
Natural gas utility	84.8		66.5		325.6		254.4
Total revenues from contracts with customers	1,006.1		897.9		2,182.2		1,932.0
Other operating revenues	4.7		4.1		7.7		8.8
Total operating revenues	$	1,010.8	$	902.0	$	2,189.9	$	1,940.8


(in millions, except percentages)	June 30, 2025			December 31, 2024
Commercial paper
Amount outstanding	$	174.5		$	179.9
Weighted-average interest rate on amounts outstanding	4.54		%	4.63		%


(in millions)	Maturity	June 30, 2025
Revolving credit facility	September 2026	$	500.0

Less:
Letters of credit issued inside credit facility		1.0
Commercial paper outstanding		174.5
Available capacity under existing credit facility		$	324.5


(in millions)
Six Months Ended December 31, 2025	$	2.2
2026	1.2
2027	1.5
2028	3.0
2029	3.1
2030	3.2
Thereafter	242.3
Total minimum lease payments	256.5
Less: Interest	(201.0)
Present value of minimum lease payments	55.5
Less: Short-term lease liabilities	—
Long-term lease liabilities	$	55.5


	Three Months Ended June 30, 2025				Three Months Ended June 30, 2024
(in millions)	Amount		Effective Tax Rate		Amount		Effective Tax Rate
Statutory federal income tax	$	29.3	21.0	%	$	22.8	21.0	%
State income taxes net of federal tax benefit	7.3		5.2	%	6.5		6.0	%
PTCs, net	(7.3)		(5.2)	%	(3.1)		(2.9)	%
Federal excess deferred tax amortization	(4.2)		(3.0)	%	(3.5)		(3.2)	%
Tax repairs	(3.2)		(2.3)	%	0.7		0.6	%
AFUDC-Equity	(2.9)		(2.1)	%	(1.9)		(1.7)	%
Domestic production activities deferral	1.3		0.9	%	1.1		1.0	%

Other, net	0.7		0.5	%	1.0		0.8	%
Total income tax expense	$	21.0	15.0	%	$	23.6	21.6	%

	Six Months Ended June 30, 2025				Six Months Ended June 30, 2024
(in millions)	Amount		Effective Tax Rate		Amount		Effective Tax Rate
Statutory federal income tax	$	77.9	21.0	%	$	58.5	21.0	%
State income taxes net of federal tax benefit	21.4		5.8	%	16.5		5.9	%

PTCs, net	(20.3)		(5.5)	%	(8.2)		(3.0)	%
Federal excess deferred tax amortization	(11.2)		(3.0)	%	(9.2)		(3.3)	%
Tax repairs	(8.4)		(2.3)	%	1.8		0.7	%
AFUDC-Equity	(7.9)		(2.1)	%	(5.1)		(1.8)	%

Domestic production activities deferral	3.3		0.9	%	2.8		1.0	%
Other, net	1.5		0.4	%	2.3		0.8	%
Total income tax expense	$	56.3	15.2	%	$	59.4	21.3	%


	June 30, 2025
(in millions)	Level 1		Level 2		Level 3		Total
Derivative assets
Natural gas contracts	$	4.1	$	1.7	$	—	$	5.8
FTRs	—		—		9.9		9.9
Total derivative assets	$	4.1	$	1.7	$	9.9	$	15.7

Derivative liabilities
Natural gas contracts	$	2.5	$	1.5	$	—	$	4.0


	Pension Benefits
	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2025		2024		2025		2024
Service cost	$	2.4	$	2.4	$	5.0	$	5.2
Interest cost	11.1		11.0		22.8		22.3
Expected return on plan assets	(14.8)		(15.2)		(29.6)		(30.8)


Amortization of net actuarial loss	3.7		4.7		8.0		9.0
Net periodic benefit cost	$	2.4	$	2.9	$	6.2	$	5.7


	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2025		2024		2025		2024
Residential	$	382.4	$	347.9	$	784.3	$	707.9
Small commercial and industrial	306.3		282.2		613.2		569.7
Large commercial and industrial	159.7		144.9		304.7		279.4
Other	4.9		4.9		10.6		10.5
Total retail revenues	853.3		779.9		1,712.8		1,567.5
Wholesale	10.9		13.7		25.0		24.7
Resale	49.9		32.3		98.5		68.8
Steam	5.2		4.7		17.7		14.8
Other utility revenues	2.0		0.8		2.6		1.8
Total electric utility operating revenues	$	921.3	$	831.4	$	1,856.6	$	1,677.6


(in millions)	June 30, 2025			December 31, 2024
Accounts receivable and unbilled revenues	$	654.3		$	648.1
Allowance for credit losses	32.9			46.9
Accounts receivable and unbilled revenues, net (1)	$	621.4		$	601.2

Total accounts receivable, net – past due greater than 90 days (1)	$	30.8		$	38.2
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	94.8		%	93.8		%


	Three Months Ended June 30
(in millions)	2025		2024
Balance at April 1	$	37.9	$	48.9
Provision for credit losses	17.0		7.1
Provision for credit losses deferred for future recovery or refund	(2.0)		6.5
Write-offs charged against the allowance	(28.8)		(26.5)
Recoveries of amounts previously written off	8.8		6.0
Balance at June 30	$	32.9	$	42.0


	Six Months Ended June 30
(in millions)	2025		2024
Balance at January 1	$	46.9	$	44.5
Provision for credit losses	29.7		15.2
Provision for credit losses deferred for future recovery or refund	(8.0)		20.7
Write-offs charged against the allowance	(52.0)		(51.5)
Recoveries of amounts previously written off	16.3		13.1
Balance at June 30	$	32.9	$	42.0


	OPEB Benefits
	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2025		2024		2025		2024
Service cost	$	0.9	$	0.8	$	1.8	$	1.6
Interest cost	2.3		2.0		4.7		4.1
Expected return on plan assets	(2.7)		(2.8)		(5.4)		(5.5)
Amortization of prior service credit	(0.1)		—		(0.1)		(0.1)
Amortization of net actuarial gain	(1.2)		(1.4)		(2.0)		(2.8)
Net periodic benefit credit	$	(0.8)	$	(1.4)	$	(1.0)	$	(2.7)


	Three Months Ended June 30
	MWh (in thousands)
Electric Sales Volumes	2025	2024	B (W)
Customer Class
Residential	1,832.9	1,816.8	16.1
Small commercial and industrial	2,117.4	2,106.7	10.7
Large commercial and industrial	1,611.2	1,613.1	(1.9)
Other	20.2	21.7	(1.5)
Total retail	5,581.7	5,558.3	23.4
Wholesale	153.0	130.8	22.2
Resale	1,315.6	1,194.2	121.4
Total sales in MWh	7,050.3	6,883.3	167.0


	Three Months Ended June 30
	Therms (in millions)
Natural Gas Sales Volumes	2025	2024	B (W)
Customer Class
Residential	53.2	42.9	10.3
Commercial and industrial	32.7	26.3	6.4
Total retail	85.9	69.2	16.7
Transportation	56.3	53.6	2.7
Total sales in therms	142.2	122.8	19.4


	Three Months Ended June 30
	Degree Days
Weather (1)	2025	2024	B (W)
Heating (874 Normal)	1,013	631	60.5	%
Cooling (182 Normal)	176	202	(12.9)	%


(in millions)
2025	$	3,047.3	(1)
2026	3,281.2
2027	3,501.6
Total	$	9,830.1


ITEM 6. EXHIBITS

The following exhibits are filed or furnished with or incorporated by reference in the report with respect to Wisconsin Electric Power Company (File No. 001-01245). An asterisk (*) indicates that the exhibit has previously been filed with the SEC and is incorporated herein by reference.

Number	Exhibit














31	Rule 13a-14(a) / 15d-14(a) Certifications

	31.1	Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

	31.2	Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32	Section 1350 Certifications

	32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

	32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101	Interactive Data Files

	101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

	101.SCH	Inline XBRL Taxonomy Extension Schema

	101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase

	101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase

	101.LAB	Inline XBRL Taxonomy Extension Label Linkbase

	101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


		WISCONSIN ELECTRIC POWER COMPANY
		(Registrant)

		/s/ WILLIAM J. GUC
Date:	August 1, 2025	William J. Guc
		Vice President and Controller

		(Duly Authorized Officer and Chief Accounting Officer)


Date:			August 1, 2025

			/s/ SCOTT J. LAUBER
			Scott J. Lauber
			Chairman of the Board and Chief Executive Officer
			(Principal Executive Officer)


Date:			August 1, 2025

			/s/ XIA LIU
			Xia Liu
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)