[PART I. FINANCIAL INFORMATION](index=11&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=11&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Presents WEC Energy Group's unaudited condensed consolidated financial statements, reporting **$694.1 million** net income for the six months ended June 30, 2020 Condensed Consolidated Income Statement Highlights (Six Months Ended June 30) | Indicator (in millions, except EPS) | 2020 | 2019 | | :--- | :--- | :--- | | Operating Revenues | $3,657.3 | $3,967.6 | | Operating Income | $965.4 | $857.4 | | Net Income Attributed to Common Shareholders | $694.1 | $655.8 | | Diluted Earnings Per Share (EPS) | $2.19 | $2.07 | Condensed Consolidated Balance Sheet Highlights | Indicator (in millions) | June 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total Assets | $35,042.0 | $34,951.8 | | Total Liabilities | $24,549.3 | $24,697.2 | | Common Shareholders' Equity | $10,383.7 | $10,113.4 | Condensed Consolidated Cash Flow Highlights (Six Months Ended June 30) | Indicator (in millions) | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $1,379.6 | $1,291.2 | | Net Cash Used in Investing Activities | $(1,006.2) | $(1,066.4) | | Net Cash Used in Financing Activities | $(393.3) | $(280.2) | [Notes to Condensed Consolidated Financial Statements](index=21&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes support financial statements, covering acquisitions, COVID-19 impacts on credit losses and regulatory actions, debt, segment performance, and environmental matters - In July 2020, WECI signed an agreement to acquire an **85% ownership interest** in Tatanka Ridge, a **155 MW** wind generating facility in South Dakota, for approximately **$235 million**. The transaction is expected to close in **Q4 2020**[45](index=45&type=chunk) - WECI is also acquiring a **90% ownership interest** in the **300 MW** Thunderhead wind facility in Nebraska and a **90% interest** in the **250 MW** Blooming Grove wind facility in Illinois[46](index=46&type=chunk)[50](index=50&type=chunk) - Due to economic risks from the COVID-19 pandemic, the company recorded a **$3.4 million** increase to its allowance for credit losses as of June 30, 2020[69](index=69&type=chunk) - Regulators in Wisconsin, Illinois, Minnesota, and Michigan issued orders in response to COVID-19, generally requiring suspension of disconnections and late fees, and authorizing deferral of certain incremental costs and foregone revenues for future recovery[182](index=182&type=chunk)[183](index=183&type=chunk)[188](index=188&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.6325 per share**, payable on September 1, 2020[83](index=83&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=72&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial condition, strategy, and liquidity, noting **Q2 2020** earnings growth driven by Illinois and transmission affiliates, with **$13.7 billion** projected capital expenditures - The company updated its carbon reduction goals to reduce CO2 emissions from electricity generation by **70% below 2005 levels by 2030**, with a long-term goal for its electric generation fleet to be **net carbon neutral by 2050**[163](index=163&type=chunk)[225](index=225&type=chunk) - Total capital expenditures for regulated utility and non-utility energy infrastructure businesses are expected to be approximately **$13.7 billion from 2020 to 2024**[236](index=236&type=chunk) Q2 2020 vs Q2 2019 Earnings Comparison | Metric (in millions, except EPS) | Q2 2020 | Q2 2019 | Change | | :--- | :--- | :--- | :--- | | Net Income Attributed to Common Shareholders | $241.6 | $235.7 | $5.9 | | Diluted EPS | $0.76 | $0.74 | $0.02 | - In response to market instability from COVID-19, the company enhanced its liquidity by entering into a **$340 million 364-day term loan** in March 2020[85](index=85&type=chunk)[338](index=338&type=chunk)[365](index=365&type=chunk) [Results of Operations](index=77&type=section&id=RESULTS%20OF%20OPERATIONS) Net income for **Q2 2020** increased by **$5.9 million** to **$241.6 million**, driven by Illinois segment and transmission affiliates, partially offset by Wisconsin segment declines - The Illinois segment's operating income increased by **$16.9 million** in **Q2 2020**, driven by lower O&M costs and higher margins from the System Modernization Program (SMP) capital investments[243](index=243&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk) - Earnings from transmission affiliates (ATC) increased by **$16.0 million** in **Q2 2020**, primarily due to a retroactive base ROE increase ordered by FERC in May 2020[243](index=243&type=chunk)[281](index=281&type=chunk) - The Wisconsin segment's operating income decreased, primarily due to lower electric and natural gas margins from reduced sales volumes related to the COVID-19 pandemic and the impact of new rate orders[246](index=246&type=chunk) Operating Income by Segment (Three Months Ended June 30) | Segment (in millions) | 2020 | 2019 | | :--- | :--- | :--- | | Wisconsin | $277.6 | $270.2 | | Illinois | $59.5 | $42.6 | | Other states | $6.0 | $4.6 | | Non-utility energy infrastructure | $91.4 | $91.3 | | **Total Operating Income** | **$338.8** | **$314.6** | [Liquidity and Capital Resources](index=104&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains strong liquidity, with net cash from operations increasing to **$1.38 billion** for the first six months of 2020, and projected capital expenditures of **$3.1 billion** in 2020 - Net cash from operating activities increased by **$88.4 million** in the first six months of 2020 compared to 2019, driven by lower payments for O&M expenses and fuel[326](index=326&type=chunk)[327](index=327&type=chunk) - Net cash used in investing activities decreased by **$60.2 million**, largely because the prior year period included the **$268.2 million** acquisition of the Upstream wind facility[329](index=329&type=chunk)[330](index=330&type=chunk) Projected Capital Expenditures (2020-2022) | Segment (in millions) | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | Wisconsin | $1,482.0 | $1,881.1 | $1,630.5 | | Illinois | $779.0 | $619.4 | $586.7 | | Other states | $117.4 | $111.6 | $87.4 | | Non-utility energy infrastructure | $706.5 | $440.7 | $258.0 | | Corporate and other | $24.6 | $22.7 | $2.7 | | **Total** | **$3,109.5** | **$3,075.5** | **$2,565.3** | - Significant capital projects include utility-scale solar projects (Badger Hollow I & II, Two Creeks), the Lakeshore Lateral natural gas main project, new LNG facilities, and PGL's System Modernization Program in Chicago[349](index=349&type=chunk)[352](index=352&type=chunk)[353](index=353&type=chunk)[354](index=354&type=chunk) [Factors Affecting Results, Liquidity, and Capital Resources](index=112&type=section&id=FACTORS%20AFFECTING%20RESULTS,%20LIQUIDITY,%20AND%20CAPITAL%20RESOURCES) Key factors affecting results include COVID-19 impacts on energy demand and regulatory mitigation, PGL's QIP rider recovery risk, and FERC's revised **10.02%** ROE for ATC - The COVID-19 pandemic has led to reduced energy demand, particularly from commercial and industrial customers, but regulatory mechanisms in all states of operation help mitigate the financial impact by allowing deferral of incremental costs and bad debt[363](index=363&type=chunk)[368](index=368&type=chunk)[369](index=369&type=chunk) - In May 2020, FERC issued an order increasing the base ROE for MISO transmission owners, including ATC, to **10.02%** (from a previously reduced **9.88%**), effective retroactively to September 28, 2016. This positively impacted earnings from transmission affiliates[390](index=390&type=chunk)[392](index=392&type=chunk) - PGL's QIP rider, a key cost recovery mechanism for its System Modernization Program, has pending reconciliations for **2016 through 2019**, creating regulatory recovery risk[383](index=383&type=chunk)[385](index=385&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=121&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes to market risk disclosures from the 2019 Form 10-K, except for risks associated with the COVID-19 pandemic - There have been no material changes related to market risk from the disclosures presented in the 2019 Annual Report on Form 10-K, aside from risks associated with the COVID-19 pandemic[396](index=396&type=chunk) [Controls and Procedures](index=121&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of June 30, 2020, with no material changes in internal control over financial reporting - Disclosure controls and procedures were deemed effective as of the end of the period covered by this report[397](index=397&type=chunk) - No changes in internal control over financial reporting occurred during the second quarter of 2020 that materially affected, or are reasonably likely to materially affect, internal controls[398](index=398&type=chunk) [PART II. OTHER INFORMATION](index=123&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=123&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Discusses legal proceedings, primarily PGL's Manlove Field natural gas leak remediation, which is not expected to materially impact financial statements - PGL is addressing a natural gas leak from its Manlove Gas Storage Field that occurred in **2016**. The company is working with the Illinois AG and IEPA on remediation and anticipates its Groundwater Management Zone (GMZ) application will be approved in **Q3 2020**[402](index=402&type=chunk) - Management believes that the ultimate resolution of ongoing legal proceedings, including the Manlove Field matter, will not have a material effect on the company's financial statements[401](index=401&type=chunk)[404](index=404&type=chunk) [Risk Factors](index=123&type=section&id=ITEM%201A.%20RISK%20FACTORS) Updates risk factors, emphasizing the COVID-19 pandemic's potential adverse impacts on energy demand, supply chains, and capital markets, with uncertain full extent - The COVID-19 pandemic poses a significant risk, with potential adverse impacts including reduced energy demand (especially from commercial and industrial customers), supply chain disruptions, and impaired access to capital markets[406](index=406&type=chunk)[409](index=409&type=chunk) - Adverse investment performance of pension plan assets due to market volatility could increase plan costs and funding requirements[410](index=410&type=chunk) - The full impact of the COVID-19 pandemic on the business is currently undeterminable as it depends on factors beyond the company's control, such as the duration of the outbreak and related government responses[412](index=412&type=chunk) [Exhibits](index=126&type=section&id=ITEM%206.%20EXHIBITS) Lists exhibits filed with the Form 10-Q, including material contracts, Sarbanes-Oxley certifications, and Inline XBRL data files - The exhibits filed with this report include a consulting agreement, certifications pursuant to Sarbanes-Oxley Sections 302 and 906, and Inline XBRL data files[414](index=414&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ___________________ Commission File Number 001-09057 WEC ENERGY GROUP, INC. 39-1391525 (A Wisconsin Corporation) 231 West Michigan Street P. ...

Financial Data and Key Metrics Changes - The company reported first quarter 2020 earnings of $1.43 per share, an increase of $0.10 per share compared to the first quarter of 2019, driven by cost control and a modest rate increase [8][33] - Consolidated operating income for Q1 2020 was $627 million, up from $543 million in Q1 2019, reflecting an increase of $84 million [35] - The company reaffirmed its earnings guidance for 2020 at $3.71 to $3.75 per share [31][46] Business Line Data and Key Metrics Changes - In the Wisconsin segment, adjusted operating income increased by $25 million, attributed to a decrease in operating and maintenance expenses [36] - Operating income in Illinois increased by $23.7 million, primarily due to a decrease in operating and maintenance expenses [38] - The energy infrastructure segment saw a slight decline in operating income by $1.2 million, with production tax credits contributing approximately $0.03 per share in Q1 2020 [39] Market Data and Key Metrics Changes - The company expects a 4% increase in residential sales volumes in Q2, with a projected decrease of approximately 5% in total retail electric volumes for the remaining nine months of the year [43][44] - Large commercial and industrial customers are expected to see an 18% reduction in sales volumes in Q2, trending to a 7% reduction by Q4 [43] Company Strategy and Development Direction - The company is focused on maintaining its $15 billion capital investment plan, which remains on track despite the pandemic [15][16] - The infrastructure segment is expected to remain unaffected, with potential new high-quality projects emerging due to economic dislocation [60][89] - The company aims to achieve a long-term earnings growth rate of 5% to 7% per year [15][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to absorb margin compression through cost-saving initiatives and efficiency measures [45] - The company is monitoring local economic trends and customer demand for energy, with a focus on maintaining essential services during the pandemic [9][12] - Management remains cautiously optimistic about the recovery timeline, suggesting that consumer confidence will be crucial for a return to normal buying patterns [53][54] Other Important Information - The company announced a quarterly cash dividend of $63.25 per share, a 7.2% increase over the previous rate [32] - The leadership team is undergoing changes, with Scott Lauber becoming COO and Xia Liu joining as CFO [17][18] Q&A Session Summary Question: Duration of the downturn and recovery expectations - Management believes they have been conservative in their recovery expectations, anticipating a gradual restart of the economy by June [52][54] Question: Opportunities in the infrastructure segment - Early indications suggest there may be additional high-quality projects available due to economic contraction, but the company will be selective [60] Question: Sales data for April - Sales volumes in the MISO footprint were down just over 8%, with residential usage seeing an uptick of 5% or more [94][96] Question: Cost savings sustainability - Management is confident that many of the cost reductions implemented during the pandemic will be sustainable moving forward [81][82] Question: Liquidity and capital raises - The company reported $2.6 billion in liquidity, bolstered by positive cash flow and a small debt issuance [134][135]

Part I [Business](index=13&type=section&id=ITEM%201.%20BUSINESS) WEC Energy Group is a diversified holding company with regulated utility operations, a 60% interest in ATC, and non-utility energy infrastructure - WEC Energy Group operates as a diversified holding company with its primary business in regulated natural gas and electricity services, alongside a significant **60% equity interest** in American Transmission Company (ATC)[31](index=31&type=chunk) - The company is organized into **six reportable segments**: Wisconsin, Illinois, Other states, Electric transmission, Non-utility energy infrastructure, and Corporate and other[31](index=31&type=chunk)[500](index=500&type=chunk) [Introduction](index=13&type=section&id=A.%20INTRODUCTION) WEC Energy Group is a diversified holding company operating through subsidiaries in regulated and nonregulated energy sectors - WEC Energy Group, Inc. became a diversified holding company in 1986 and acquired **100% of Integrys's common shares** on June 29, 2015[31](index=31&type=chunk) [Utility Energy Operations](index=13&type=section&id=B.%20UTILITY%20ENERGY%20OPERATIONS) The company's utility operations are segmented geographically, with seasonal demand patterns for electricity and natural gas - The Wisconsin segment includes electric and natural gas operations of WE, WPS, WG, and UMERC[35](index=35&type=chunk) - The Illinois segment comprises the natural gas utility operations of PGL and NSG, serving Chicago and its northern suburbs[90](index=90&type=chunk) - The Other States segment includes the natural gas utility operations of MERC in Minnesota and MGU in Michigan[104](index=104&type=chunk) - Electric sales are highest in summer due to cooling demand, while natural gas sales peak in winter for heating; decoupling mechanisms in Illinois and Minnesota help mitigate earnings volatility[115](index=115&type=chunk)[117](index=117&type=chunk) [Electric Transmission Segment](index=24&type=section&id=C.%20ELECTRIC%20TRANSMISSION%20SEGMENT) This segment consists of an approximately 60% ownership interest in ATC, a regional transmission company regulated by FERC - The company holds an approximately **60% ownership interest** in ATC and a **75% interest** in ATC Holdco as of December 31, 2019[123](index=123&type=chunk) - ATC is a regional transmission company operating in Wisconsin, Michigan, Illinois, and Minnesota, regulated by the FERC and a member of MISO[123](index=123&type=chunk) - In November 2019, FERC issued an order related to the methodology for calculating the base **Return on Equity (ROE)** for all MISO transmission owners, including ATC[124](index=124&type=chunk) [Non-Utility Operations](index=25&type=section&id=D.%20NON-UTILITY%20OPERATIONS) Non-utility operations include energy infrastructure assets like generation and storage, as well as corporate support services - The Non-Utility Energy Infrastructure segment includes We Power (generation facilities), Bluewater (natural gas storage), and WECI (wind generation facilities)[126](index=126&type=chunk) - We Power designed and built approximately **2,500 MW of generation**, which is leased to WE under long-term agreements, with costs recovered through WE's rates[127](index=127&type=chunk)[129](index=129&type=chunk) - WECI holds ownership interests in the Upstream (80%), Bishop Hill III (90%), and Coyote Ridge (80%) wind facilities, with plans to acquire interests in Thunderhead and Blooming Grove wind projects[132](index=132&type=chunk)[134](index=134&type=chunk) - The Corporate and Other segment includes holding company operations and WBS, a centralized service company providing administrative support to regulated and nonregulated entities[137](index=137&type=chunk)[138](index=138&type=chunk) [Regulation](index=26&type=section&id=E.%20REGULATION) The company and its utility subsidiaries are subject to federal and state regulations governing rates and cost recovery mechanisms - The company is subject to the Public Utility Holding Company Act of 2005 (PUHCA 2005) and Wisconsin's public utility holding company law, which limits non-utility affiliate assets to **25% of public utility affiliate assets**[141](index=141&type=chunk)[142](index=142&type=chunk) - Utility rates are regulated by state commissions including the PSCW, ICC, MPSC, and MPUC, while wholesale power and transmission are regulated by the FERC[145](index=145&type=chunk)[146](index=146&type=chunk) - Electric utilities in Wisconsin can defer fuel and purchased power costs that deviate by more than **2%** from amounts in rates, while natural gas utilities generally have dollar-for-dollar recovery[147](index=147&type=chunk)[148](index=148&type=chunk) Utility Operating Revenues by Regulatory Jurisdiction (2019) | (in millions) | Amount | Percent | | :--- | :--- | :--- | | **Electric** | | | | Wisconsin | $3,807.4 | 88.2% | | Michigan | $142.6 | 3.3% | | FERC – Wholesale | $367.6 | 8.5% | | **Total Electric** | **$4,317.6** | **100.0%** | | **Natural Gas** | | | | Wisconsin | $1,325.3 | 42.6% | | Illinois | $1,357.1 | 43.6% | | Minnesota | $281.5 | 9.0% | | Michigan | $148.7 | 4.8% | | **Total Natural Gas** | **$3,112.6** | **100.0%** | [Environmental Compliance](index=29&type=section&id=F.%20ENVIRONMENTAL%20COMPLIANCE) The company's operations are subject to extensive environmental regulations that result in significant and potentially increasing compliance costs - Operations are subject to extensive environmental regulations from state and federal agencies, leading to **significant compliance costs**[167](index=167&type=chunk) - Anticipated expenditures for environmental compliance and remediation are included in the company's estimated capital expenditures for the next three years[168](index=168&type=chunk) [Employees](index=30&type=section&id=G.%20EMPLOYEES) As of year-end 2019, the company employed over 7,500 people, with a significant portion represented by labor unions - As of December 31, 2019, the company had **7,509 total employees**[171](index=171&type=chunk) - A total of **4,380 employees** are represented under various labor agreements, with expiration dates ranging from 2020 to 2024[171](index=171&type=chunk) [Risk Factors](index=32&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces legislative, regulatory, operational, economic, and market risks that could impact its financial performance - **Legislative and Regulatory Risks:** The business is heavily impacted by governmental regulation, which affects rates, cost recovery, and compliance costs, with environmental laws posing significant financial risks[174](index=174&type=chunk)[178](index=178&type=chunk)[186](index=186&type=chunk)[191](index=191&type=chunk) - **Operational Risks:** Financial performance depends on the successful operation of facilities, which are subject to risks like equipment failure, severe weather, and cyber attacks, while also being influenced by energy demand[200](index=200&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk)[208](index=208&type=chunk) - **Economic and Market Risks:** The company relies on access to capital markets, and a credit rating downgrade could increase borrowing costs, while fluctuating commodity prices and competition also pose risks[222](index=222&type=chunk)[226](index=226&type=chunk)[228](index=228&type=chunk)[235](index=235&type=chunk) [Unresolved Staff Comments](index=42&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved staff comments from the SEC - None[243](index=243&type=chunk) [Properties](index=43&type=section&id=ITEM%202.%20PROPERTIES) The company owns a diverse portfolio of regulated and non-utility generation, distribution, and storage assets Regulated Electric Generation Capacity (as of Dec 31, 2019) | Fuel Type | Rated Capacity (MW) | | :--- | :--- | | Coal-fired | 3,158 | | Natural gas-fired | 3,753 | | Renewables | 207 | | **Total System** | **7,118** | - Natural gas facilities include approximately **49,500 miles of distribution mains**, 1,200 miles of transmission mains, and **68.2 billion cubic feet** of working gas capacity in underground storage fields[254](index=254&type=chunk) WECI Wind Generating Facilities (as of Dec 31, 2019) | Name | Location | Nameplate Capacity (MW) | | :--- | :--- | :--- | | Upstream | Nebraska | 202.5 | | Bishop Hill III | Illinois | 132.1 | | Coyote Ridge | South Dakota | 96.7 | | **Total** | | **431.3** | [Legal Proceedings](index=45&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course legal matters and a notable environmental issue at a gas storage field - In September 2017, the IDNR issued a Violation Notice to PGL regarding a natural gas leak from a well at the Manlove Gas Storage Field, which resulted in gas migration into the Mahomet Aquifer[262](index=262&type=chunk)[263](index=263&type=chunk) - PGL is working with Illinois state agencies to investigate and remediate the impacts and believes any civil penalties will not have a material impact on its financial statements[263](index=263&type=chunk)[265](index=265&type=chunk) [Mine Safety Disclosures](index=46&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section is not applicable to the company - Not applicable[266](index=266&type=chunk) [Information About Our Executive Officers](index=47&type=section&id=INFORMATION%20ABOUT%20OUR%20EXECUTIVE%20OFFICERS) This section provides professional background information for the company's executive officers as of year-end 2019 - The report lists the names, ages, positions, and recent business experience for all executive officers as of year-end 2019[268](index=268&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=49&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's common stock is listed on the NYSE, with approximately 45,000 registered shareholders as of January 2020 - As of January 31, 2020, the company had approximately **45,000 registered shareholders**[274](index=274&type=chunk) - Common stock is traded on the NYSE under the symbol **"WEC"**[275](index=275&type=chunk) [Selected Financial Data](index=49&type=section&id=ITEM%206.%20SELECTED%20FINANCIAL%20DATA) This section presents a five-year summary of key financial data, highlighting results for the 2019 fiscal year Comparative Financial Data (2018-2019) | (in millions, except per share) | 2019 | 2018 | | :--- | :--- | :--- | | Operating revenues | $7,523.1 | $7,679.5 | | Net income attributed to common shareholders | $1,134.0 | $1,059.3 | | Total assets | $34,951.8 | $33,475.8 | | Long-term debt (excluding current portion) | $11,211.0 | $9,994.0 | | Diluted earnings per share | $3.58 | $3.34 | | Dividends per share of common stock | $2.36 | $2.21 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=50&type=section&id=ITEM%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) The MD&A details corporate strategy, financial results, liquidity, capital resources, and critical accounting policies [Corporate Developments](index=50&type=section&id=CORPORATE%20DEVELOPMENTS) The company's strategy focuses on reliability and financial discipline while transitioning its generation fleet to cleaner energy sources - The company's strategy focuses on reliability, operating efficiency, financial discipline, customer care, and safety[283](index=283&type=chunk) - A major strategic goal is reshaping the generation fleet, which includes retiring over **1,800 MW of coal-fired generation** since early 2018 and exceeding its 2030 CO2 reduction goal in 2019[284](index=284&type=chunk) - Projected capital expenditures for regulated utility and non-utility energy infrastructure are approximately **$13.7 billion** from 2020 to 2024[294](index=294&type=chunk) [Results of Operations](index=52&type=section&id=RESULTS%20OF%20OPERATIONS) Consolidated net income increased by $74.7 million in 2019, driven by improved operating income in the Wisconsin and Illinois segments Consolidated Earnings Summary (2019 vs. 2018) | (in millions) | 2019 | 2018 | Change B(W) | | :--- | :--- | :--- | :--- | | Total operating income | $1,531.4 | $1,468.4 | $63.0 | | Income before income taxes | $1,259.7 | $1,230.3 | $29.4 | | Net income attributed to common shareholders | $1,134.0 | $1,059.3 | $74.7 | | Diluted earnings per share | $3.58 | $3.34 | $0.24 | - The **$74.7 million increase in earnings** was primarily driven by a **$41.6 million** increase in operating income at the Wisconsin segment and a **$36.1 million** increase at the Illinois segment[303](index=303&type=chunk) - Earnings from the electric transmission segment (ATC investment) **decreased by $9.1 million**, driven by a FERC order addressing ATC's allowed ROE[310](index=310&type=chunk)[341](index=341&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Operating cash flow decreased in 2019, while investing activities increased due to acquisitions and capital expenditures Summary of Cash Flows (2019 vs. 2018) | (in millions) | 2019 | 2018 | | :--- | :--- | :--- | | Cash provided by operating activities | $2,345.5 | $2,445.5 | | Cash used in investing activities | $(2,494.9) | $(2,384.4) | | Cash provided by financing activities | $85.6 | $26.4 | - Total capital expenditures increased by $145.1 million to **$2.26 billion** in 2019, with notable increases in the Illinois and non-utility energy infrastructure segments[354](index=354&type=chunk) Estimated Capital Expenditures (2020-2022) | (in millions) | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | Wisconsin | $1,482.0 | $1,881.1 | $1,630.5 | | Illinois | $779.0 | $619.4 | $586.7 | | Other states | $117.4 | $111.6 | $87.4 | | Non-utility energy infrastructure | $852.5 | $159.7 | $393.0 | | Corporate and other | $24.6 | $22.7 | $2.7 | | **Total** | **$3,255.5** | **$2,794.5** | **$2,700.3** | [Factors Affecting Results, Liquidity, and Capital Resources](index=70&type=section&id=FACTORS%20AFFECTING%20RESULTS%2C%20LIQUIDITY%2C%20AND%20CAPITAL%20RESOURCES) Financial performance is influenced by regulatory cost recovery, commodity price fluctuations, weather, and economic conditions - The company's rates and cost recovery are determined by various regulatory commissions; as of December 31, 2019, the company had **$3.5 billion in regulatory assets** and **$4.1 billion in regulatory liabilities**[390](index=390&type=chunk)[391](index=391&type=chunk) - The business is exposed to market fluctuations in the costs of coal, natural gas, and purchased power, which are managed through contracts and hedging programs[395](index=395&type=chunk) - In November 2019, FERC issued an order that reduced the base ROE for MISO transmission owners, including ATC, to **9.88%** effective September 28, 2016[425](index=425&type=chunk)[426](index=426&type=chunk) [Critical Accounting Policies and Estimates](index=75&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) Management identifies regulatory accounting, goodwill, asset impairment, and pension benefits as areas requiring significant judgment - **Regulatory Accounting:** Financial statements reflect rate-making principles, allowing deferral of costs as regulatory assets (**$3.5 billion** at year-end 2019) if future recovery is probable[432](index=432&type=chunk)[434](index=434&type=chunk) - **Goodwill:** The company performs annual goodwill impairment tests; as of July 1, 2019, **no impairments were recorded** for the $3.1 billion goodwill balance[435](index=435&type=chunk)[439](index=439&type=chunk) - **Long-Lived Assets:** The company assesses asset recoverability when impairment indicators are present and has received regulatory approval to recover the net book value of retired power plants[440](index=440&type=chunk)[443](index=443&type=chunk) - **Pension and OPEB:** Costs are dependent on actuarial assumptions; a **0.5% decrease in the discount rate** would increase the projected pension benefit obligation by **$206.6 million**[444](index=444&type=chunk)[447](index=447&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section refers to other parts of the report for information regarding the company's exposure to market risks - Information concerning potential market risks is provided in Item 7 (MD&A) and Notes 1(p), 1(q), and 18 to the financial statements[458](index=458&type=chunk) [Financial Statements and Supplementary Data](index=80&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section contains the company's audited consolidated financial statements and the independent auditor's report for fiscal year 2019 [Reports of Independent Registered Public Accounting Firm](index=80&type=section&id=A.%20Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The independent auditor issued unqualified opinions on the financial statements and the effectiveness of internal controls - The independent auditor, Deloitte & Touche LLP, issued an **unqualified opinion** on the consolidated financial statements for the year ended December 31, 2019[461](index=461&type=chunk) - The auditor also issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of December 31, 2019[462](index=462&type=chunk)[474](index=474&type=chunk) - The audit identified the impact of rate regulation and the accounting for regulatory assets and liabilities as a **critical audit matter** due to the significant management judgments required[466](index=466&type=chunk)[469](index=469&type=chunk) [Consolidated Financial Statements](index=83&type=section&id=B.%20Consolidated%20Income%20Statements) The financial statements show increased operating and net income in 2019 despite a slight decrease in operating revenues Key Financial Metrics (2019 vs. 2018) | (in millions) | 2019 | 2018 | | :--- | :--- | :--- | | **Income Statement** | | | | Operating Revenues | $7,523.1 | $7,679.5 | | Operating Income | $1,531.4 | $1,468.4 | | Net Income Attributed to Common Shareholders | $1,134.0 | $1,059.3 | | **Balance Sheet** | | | | Total Assets | $34,951.8 | $33,475.8 | | Total Long-Term Debt | $11,211.0 | $9,994.0 | | Total Common Shareholders' Equity | $10,113.4 | $9,788.9 | [Notes to Consolidated Financial Statements](index=90&type=section&id=G.%20Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed supplemental information on accounting policies, acquisitions, debt, and commitments - **Note 2 (Acquisitions):** Details recent acquisitions, including an **80% interest** in the Upstream wind facility for **$268.2 million** in January 2019[584](index=584&type=chunk)[587](index=587&type=chunk) - **Note 5 (Regulatory Assets and Liabilities):** As of Dec 31, 2019, the company had **$3.53 billion in regulatory assets** and **$4.08 billion in regulatory liabilities**[611](index=611&type=chunk)[615](index=615&type=chunk) - **Note 13 (Long-Term Debt):** Total long-term debt outstanding was **$11.9 billion** as of Dec 31, 2019, an increase from $10.4 billion in 2018[664](index=664&type=chunk) - **Note 23 (Commitments and Contingencies):** The company has significant unconditional purchase obligations totaling **$11.6 billion** and reserves of **$589.2 million** for manufactured gas plant remediation[770](index=770&type=chunk)[790](index=790&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=157&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports no changes in or disagreements with its accountants - None[843](index=843&type=chunk) [Controls and Procedures](index=157&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and internal control over financial reporting were effective - Management concluded that disclosure controls and procedures were **effective** as of the end of the period covered by the report[844](index=844&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2019[845](index=845&type=chunk) [Other Information](index=157&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) The company reports no other information for this item - None[849](index=849&type=chunk) Part III [Directors, Executive Officers, and Corporate Governance](index=158&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%2C%20AND%20CORPORATE%20GOVERNANCE%20OF%20THE%20REGISTRANT) Information regarding governance is incorporated by reference from the 2020 Proxy Statement and a Code of Conduct is available online - Required information is incorporated by reference from the company's Definitive Proxy Statement for its 2020 Annual Meeting of Shareholders[852](index=852&type=chunk) - The company has adopted a Code of Business Conduct, which is posted on its website[853](index=853&type=chunk) [Executive Compensation](index=158&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Information regarding executive compensation is incorporated by reference from the company's 2020 Proxy Statement - Required information is incorporated by reference from the 2020 Annual Meeting Proxy Statement[856](index=856&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=158&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Security ownership information is incorporated by reference, with details provided on equity compensation plans - Security ownership information is incorporated by reference from the 2020 Annual Meeting Proxy Statement[857](index=857&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2019) | Plan Type | Securities to be Issued Upon Exercise | Securities Remaining for Future Issuance | | :--- | :--- | :--- | | Approved by Security Holders | 3,249,918 | 26,456,888 | [Certain Relationships and Related Transactions, and Director Independence](index=159&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information on related transactions and director independence is incorporated by reference from the 2020 Proxy Statement - Required information is incorporated by reference from the 2020 Annual Meeting Proxy Statement[859](index=859&type=chunk) [Principal Accounting Fees and Services](index=159&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) Information regarding auditor fees and services is incorporated by reference from the company's 2020 Proxy Statement - Required information is incorporated by reference from the 2020 Annual Meeting Proxy Statement[860](index=860&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=160&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists the financial statements, schedules, and exhibits filed with the Form 10-K - This item lists all financial statements, schedules, and exhibits included in the filing[863](index=863&type=chunk) - Financial statement schedules included are Schedule I (Condensed Parent Company Financial Statements) and Schedule II (Valuation and Qualifying Accounts)[863](index=863&type=chunk) [Form 10-K Summary](index=170&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) The company reports no information for this item - None[875](index=875&type=chunk) [Schedule I — Condensed Parent Company Financial Statements](index=171&type=section&id=SCHEDULE%20I%20%E2%80%94%20CONDENSED%20PARENT%20COMPANY%20FINANCIAL%20STATEMENTS) This schedule presents the condensed financial statements for the parent company, WEC Energy Group, Inc Parent Company Income Statement (2019) | (in millions) | 2019 | | :--- | :--- | | Equity in earnings of subsidiaries | $1,210.5 | | Interest expense | $122.3 | | Income before income taxes | $1,089.8 | | Net income attributed to common shareholders | $1,134.0 | Parent Company Balance Sheet (Dec 31, 2019) | (in millions) | 2019 | | :--- | :--- | | **Assets** | | | Investments in subsidiaries | $13,433.1 | | Total assets | $13,526.3 | | **Liabilities and Equity** | | | Long-term debt | $2,141.6 | | Common shareholders' equity | $10,113.4 | | Total liabilities and equity | $13,526.3 | [Schedule II — Valuation and Qualifying Accounts](index=177&type=section&id=SCHEDULE%20II%20%E2%80%94%20VALUATION%20AND%20QUALIFYING%20ACCOUNTS) This schedule details the activity in the allowance for doubtful accounts, which decreased during 2019 Allowance for Doubtful Accounts Activity (2019) | (in millions) | Amount | | :--- | :--- | | Balance at Beginning of Period | $149.2 | | Expense | $85.8 | | Deferral | $11.4 | | Net Write-offs | $(106.4) | | **Balance at End of Period** | **$140.0** |

Financial Data and Key Metrics Changes - The company reported full year 2019 earnings of $3.58 per share, a 7.2% increase from $3.34 per share in 2018 [6][27] - Consolidated operating income for 2019 was $1.530 billion, up from $1.470 billion in 2018, reflecting a $63 million increase [28] - The ratio of holding company debt to total debt stands at 28%, below the target of 30% [7][89] Business Line Data and Key Metrics Changes - Operating income in the Wisconsin segment increased by $42 million, driven by lower operation and maintenance expenses [30] - Operating income in Illinois increased by $36 million due to investments in the Peoples Gas System [31] - The Energy Infrastructure segment saw an increase in operating income of $800,000, primarily from investments in renewable energy projects [32] Market Data and Key Metrics Changes - Retail electric deliveries decreased by 2.8% compared to 2018, while natural gas deliveries in Wisconsin increased by 2.6% [39][40] - The company expects a slight decrease of 0.5% in weather-normalized retail electric deliveries for 2020, while projecting a 0.7% increase in retail gas deliveries [41] Company Strategy and Development Direction - The company is focusing on renewable energy investments, with plans to acquire interests in multiple wind farms [9][10] - A goal to reduce methane emissions from the natural gas distribution system by 30% per mile by 2030 has been set [8] - The company aims to maintain a balance between high-quality projects and tax benefits in its capital spending strategy [95] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining cost reductions, projecting a further 2% to 3% reduction in operation and maintenance costs for 2020 [22][68] - The company anticipates continued economic development in Wisconsin, supporting long-term growth [12][13] - The 2020 earnings guidance is set between $3.71 and $3.75 per share, indicating a growth of 6% to 7.1% from 2019 [24] Other Important Information - The quarterly cash dividend was raised to 63.25 cents per share, marking a 7.2% increase and the 17th consecutive year of dividend growth [25] - The company is targeting a payout ratio of 65% to 70% of earnings, currently positioned in the middle of that range [25][102] Q&A Session Summary Question: Infrastructure capital budget and spending shape - Management views the recent acquisition as an acceleration of a five-year plan, with 38% of projected spending already committed [48][49] Question: Impact of renewable energy on West Riverside option - Management is still analyzing the decision regarding the West Riverside option and its implications [52] Question: Policy implications from recent Commission changes - Management believes any changes will be business as usual, but anticipates policy recommendations related to decarbonization from the Governor's climate task force [54] Question: O&M performance and structural savings - Management confirmed that the O&M savings are sustainable, driven by the closure of coal-fired plants and technology investments [59][68] Question: Future growth in electric and gas demand - Management projects a modest decline in electric demand for 2020, but expects an uptick in the following years driven by economic development projects [80][81]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ___________________ Commission File Number Registrant; State of Incorporation; Address; and Telephone Number IRS Employer Identification N ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ___________________ Commission File Number Registrant; State of Incorporation; Address; and Telephone Number IRS Employer Identification No. 00 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ___________________ | Commission | Registrant; State of Incorporation; | IRS Employer | | --- | --- | --- | | File Number | Address; and Telephone Number | Identification No. | | 001-09057 | WEC ENERGY GROUP, INC. | 39-1391525 | | | (A Wisconsin Corporation) | | | | 231 West Michigan Street | | | | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ___________________ Commission File Number Registrant; State of Incorporation; Address; and Telephone Number IRS Employer Identification N ...