Exhibit 99.1 From: Brendan Conway (media) 414-221-4444 brendan.conway@wecenergygroup.com Beth Straka (investment community) 414-221-4639 beth.straka@wecenergygroup.com May 1, 2024 WEC Energy Group reports first-quarter results MILWAUKEE – WEC Energy Group (NYSE: WEC) today reported net income of $622.3 million, or $1.97 per share, for the first quarter of 2024 – up from $507.5 million, or $1.61 per share, in last year's first quarter. Consolidated revenues totaled $2.7 billion, down $207.9 million from the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 ...

WEC Energy Group, Inc. 2023 Year End Earnings Released February 1, 2024 TABLE OF CONTENTS | --- | --- | |-------|-------| | | Pages | | Press Release | 1-4 | | Income Statements | 5 | | Balance Sheets | 6 | | Statements of Cash Flows | 7 | | Summary of Regulated Operation and Maintenance - Fourth Quarter | 8 | | Summary of Regulated Operation and Maintenance - Full Year | 9 | | Weather and Volumes - Fourth Quarter | 10 | | Weather and Volumes - Full Year | 11 | | Retail Electric Sales Information | 12 | | R ...

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, 2023 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 ...

Financial Data and Key Metrics Changes - The company reported third quarter 2023 earnings of $1 per share, an increase of $0.04 per share compared to the third quarter of 2022 [7][28] - The earnings guidance for the year is reaffirmed at a range of $4.58 to $4.62 per share, with expectations to complete the year in the upper half of this range [8][33] - Earnings from utility operations increased by $0.18 compared to the third quarter of 2022, driven by rate base growth and improved timing of fuel expenses [29] Business Line Data and Key Metrics Changes - Retail electric deliveries in Wisconsin, excluding the iron ore mine, decreased by 0.8% quarter-over-quarter, primarily due to lower sales volumes to large commercial and industrial customers [30] - Earnings from the Energy Infrastructure segment decreased by $0.01 compared to the third quarter of 2022, mainly due to lower wind production [32] Market Data and Key Metrics Changes - The unemployment rate in Wisconsin stands at 3.1%, which is below the national average, indicating a positive economic environment [15] - Significant investments are being made in the Milwaukee region, particularly in the I-94 corridor, with companies like Microsoft and Haribo expanding their operations [10][16] Company Strategy and Development Direction - The company plans to invest $23.4 billion in its ESG progress plan for 2024-2028, marking a $3.3 billion increase from the previous five-year plan [9] - The new five-year plan anticipates an average asset base growth of 8.1% per year and a compound annual earnings per share growth rate of 6.5% to 7% [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its growth strategy, emphasizing the importance of investments in renewable energy and infrastructure to meet future demand [14][19] - The company aims to reduce CO2 emissions from its power generation fleet by 80% by the end of 2030, with a potential complete exit from coal by 2032 [14][88] Other Important Information - The company continues to target a dividend payout ratio of 65% to 70% of earnings, with expectations for dividend growth to align with earnings growth [26] - The financing plan for the next five years includes 65% of cash needs funded by cash from operations, 28% from debt, and 7% from equity issuance [34] Q&A Session Summary Question: How should the market view the balance sheet capacity and equity guidance? - Management indicated that about $400 million of the equity raise is a one-time catch-up to support strong credit metrics, with incremental capital likely requiring about 50% equity [41][42] Question: What is the profile of the $3.3 billion CapEx increase? - The increase will be more dominated by transmission investments in the early years, with generation and LNG facilities contributing more in later years [43][44] Question: What is the status of the Illinois rate case? - A final decision is expected by the end of November, with a proposed order recommending a 9.83% return on equity [22][57] Question: How does the company view the impact of the coal exit on customer bills? - Management believes there will be minimal impact on customer bills, as the transition from coal to natural gas will not significantly change the output from the plant [85][86] Question: What is the expected FFO to debt ratio with the new investment program? - The company targets an FFO to debt ratio of 15% to 16%, which is expected to be achieved with the additional equity and investment [83][84]

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, 2023 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. ...

[CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION](index=10&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20INFORMATION) This section outlines forward-looking statements, identifying them by specific terms and listing risks that could cause actual results to differ materially - Forward-looking statements cover expectations on earnings, capital projects, sales growth, rate actions, environmental regulations, and financial resources[21](index=21&type=chunk) - Key risks include catastrophic weather, economic conditions, regulatory decisions, environmental laws, supply chain disruptions, inflation, and interest rate changes[22](index=22&type=chunk) [PART I. FINANCIAL INFORMATION](index=15&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents WEC Energy Group's unaudited condensed consolidated financial statements for Q1 2023, with detailed notes on accounts and transactions [ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)](index=15&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section provides unaudited condensed consolidated financial statements, including income statements, comprehensive income, balance sheets, cash flows, and equity, for Q1 2023 [Condensed Consolidated Income Statements](index=15&type=section&id=Condensed%20Consolidated%20Income%20Statements) Net income attributed to common shareholders decreased to **$507.5 million** in Q1 2023 from **$565.9 million** in Q1 2022, primarily due to higher operating and interest expenses Condensed Consolidated Income Statements (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :--------------------------------- | :-------------------- | :-------------------- | :------------ | | Operating revenues | $2,888.1 | $2,908.1 | $(20.0) | | Total operating expenses | $2,218.8 | $2,176.7 | $42.1 | | Operating income | $669.3 | $731.4 | $(62.1) | | Interest expense | $172.2 | $117.6 | $54.6 | | Net income attributed to common shareholders | $507.5 | $565.9 | $(58.4) | | Diluted EPS | $1.61 | $1.79 | $(0.18) | [Condensed Consolidated Statements of Comprehensive Income](index=16&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income attributed to common shareholders decreased to **$507.4 million** in Q1 2023 from **$565.9 million** in Q1 2022, mirroring the net income trend Condensed Consolidated Statements of Comprehensive Income (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :--------------------------------------- | :-------------------- | :-------------------- | :------------ | | Net income | $507.6 | $568.0 | $(60.4) | | Comprehensive income attributed to common shareholders | $507.4 | $565.9 | $(58.5) | [Condensed Consolidated Balance Sheets](index=17&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$42,795.9 million** at March 31, 2023, from **$41,872.1 million** at December 31, 2022, driven by property, plant, and equipment and regulatory assets Condensed Consolidated Balance Sheets (in millions) | Metric | March 31, 2023 (in millions) | December 31, 2022 (in millions) | Change (QoQ) | | :--------------------------------------- | :----------------------------- | :----------------------------- | :------------ | | Total assets | $42,795.9 | $41,872.1 | $923.8 | | Property, plant, and equipment, net | $30,379.4 | $29,113.8 | $1,265.6 | | Regulatory assets | $3,313.1 | $3,264.6 | $48.5 | | Total liabilities | $30,808.2 | $30,255.5 | $552.7 | | Long-term debt | $15,827.3 | $14,766.2 | $1,061.1 | | Common shareholders' equity | $11,636.6 | $11,376.9 | $259.7 | [Condensed Consolidated Statements of Cash Flows](index=19&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to **$796.1 million** in Q1 2023, while net cash used in investing activities increased substantially due to acquisitions and capital expenditures Condensed Consolidated Statements of Cash Flows (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :-------------------------------- | :-------------------- | :-------------------- | :------------ | | Net cash provided by operating activities | $796.1 | $1,076.8 | $(280.7) | | Net cash used in investing activities | $(1,267.9) | $(338.2) | $(929.7) | | Net cash provided by (used in) financing activities | $417.6 | $(706.5) | $1,124.1 | | Net change in cash, cash equivalents, and restricted cash | $(54.2) | $32.1 | $(86.3) | - Significant investing activities in Q1 2023 included the acquisition of Sapphire Sky (**$442.6 million**), Samson I (**$249.4 million**), and Whitewater (**$76.0 million**), alongside increased capital expenditures[40](index=40&type=chunk) - Financing activities were boosted by **$1,100.0 million** in long-term debt issuances in Q1 2023, offsetting higher debt retirements and dividends paid[40](index=40&type=chunk) [Condensed Consolidated Statements of Equity](index=20&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity increased to **$11,987.7 million** at March 31, 2023, from **$11,616.6 million** at December 31, 2022, primarily due to net income attributed to common shareholders Condensed Consolidated Statements of Equity (in millions) | Metric | March 31, 2023 (in millions) | December 31, 2022 (in millions) | Change (QoQ) | | :--------------------------------------- | :----------------------------- | :----------------------------- | :------------ | | Total Equity | $11,987.7 | $11,616.6 | $371.1 | | Net income attributed to common shareholders | $507.5 | N/A | N/A | | Common stock dividends | $(246.1) | N/A | N/A | [Notes to Condensed Consolidated Financial Statements](index=22&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures for the condensed consolidated financial statements, covering general information, acquisitions, revenues, credit losses, regulatory items, and other financial notes [Note 1 General Information](index=22&type=section&id=Note%201%20General%20Information) WEC Energy Group is a diversified holding company serving 1.7 million electric and 3.0 million natural gas customers, with significant ownership in ATC and renewable generating facilities - WEC Energy Group serves approximately **1.7 million** electric and **3.0 million** natural gas customers[44](index=44&type=chunk) - The company owns ~**60%** of ATC and majority interests in multiple renewable generating facilities[44](index=44&type=chunk) - Majority-owned subsidiaries and VIEs are consolidated, while the equity method is used for investments like ATC due to limited voting rights[46](index=46&type=chunk)[47](index=47&type=chunk) [Note 2 Acquisitions](index=22&type=section&id=Note%202%20Acquisitions) The company completed several electric generation facility acquisitions in early 2023, including Whitewater, Samson I, and Sapphire Sky, expanding its non-utility energy infrastructure segment - In January 2023, WE and WPS acquired Whitewater, a **236.5 MW** dual-fueled electric generation facility, for **$76.0 million**[53](index=53&type=chunk) - In February 2023, WECI acquired an **80%** interest in Samson I, a **250 MW** solar facility in Texas, for approximately **$249.4 million**[55](index=55&type=chunk) - In February 2023, WECI acquired a **90%** interest in Sapphire Sky, a **250 MW** wind facility in Illinois, for approximately **$442.6 million**[56](index=56&type=chunk) - WPS completed the acquisition of Red Barn (**82 MW** wind) in April 2023 for approximately **$160 million**[51](index=51&type=chunk) - WECI signed an agreement to acquire an **80%** interest in Maple Flats (**250 MW** solar) for approximately **$360 million**, expected to close in early 2024[57](index=57&type=chunk) [Note 3 Operating Revenues](index=24&type=section&id=Note%203%20Operating%20Revenues) Total operating revenues for Q1 2023 were **$2,888.1 million**, a slight decrease from Q1 2022, with natural gas utility revenues decreasing and non-utility energy infrastructure revenues increasing Operating Revenues by Source (in millions) | Revenue Source | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :-------------------------------- | :-------------------- | :-------------------- | :------------ | | Total operating revenues | $2,888.1 | $2,908.1 | $(20.0) | | Total regulated revenues | $2,811.1 | $2,852.9 | $(41.8) | | Non-utility energy infrastructure revenues | $166.2 | $159.5 | $6.7 | Electric Utility Operating Revenues by Customer Class (in millions) | Customer Class | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :------------ | | Residential | $486.5 | $463.1 | $23.4 | | Small commercial and industrial | $393.6 | $370.1 | $23.5 | | Large commercial and industrial | $229.8 | $229.2 | $0.6 | | Total electric utility operating revenues | $1,203.8 | $1,187.5 | $16.3 | Natural Gas Utility Operating Revenues by Customer Class (in millions) | Customer Class | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :------------ | | Residential | $1,088.2 | $1,129.3 | $(41.1) | | Commercial and industrial | $504.6 | $517.6 | $(13.0) | | Total natural gas utility operating revenues | $1,607.1 | $1,664.9 | $(57.8) | [Note 4 Credit Losses](index=30&type=section&id=Note%204%20Credit%20Losses) The allowance for credit losses increased to **$213.8 million** at March 31, 2023, driven by higher past due accounts receivable in Wisconsin and Illinois during winter moratoriums Allowance for Credit Losses (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | | :------------------------------------------------- | :-------------------- | :-------------------- | | Balance at January 1 | $199.3 | $198.3 | | Provision for credit losses | $21.0 | $23.3 | | Write-offs charged against the allowance | $(53.5) | $(57.5) | | Recoveries of amounts previously written off | $11.4 | $15.6 | | Balance at March 31 | $213.8 | $200.6 | - The increase in allowance for credit losses was driven by higher past due accounts receivable in Wisconsin and Illinois, a common trend during winter moratoriums[77](index=77&type=chunk)[78](index=78&type=chunk) - **$1,119.8 million** (**62.9%**) of net accounts receivable and unbilled revenues had regulatory protections in place to mitigate credit loss exposure as of March 31, 2023[77](index=77&type=chunk) [Note 5 Regulatory Assets and Liabilities](index=33&type=section&id=Note%205%20Regulatory%20Assets%20and%20Liabilities) Total regulatory assets increased to **$3,325.3 million** and total regulatory liabilities increased to **$3,834.8 million** at March 31, 2023, primarily due to derivatives and energy costs Regulatory Assets (in millions) | Category | March 31, 2023 (in millions) | December 31, 2022 (in millions) | Change (QoQ) | | :-------------------------- | :----------------------------- | :----------------------------- | :------------ | | Total regulatory assets | $3,325.3 | $3,306.9 | $18.4 | | Derivatives | $196.5 | $133.8 | $62.7 | | Uncollectible expense | $95.9 | $69.3 | $26.6 | Regulatory Liabilities (in millions) | Category | March 31, 2023 (in millions) | December 31, 2022 (in millions) | Change (QoQ) | | :-------------------------- | :----------------------------- | :----------------------------- | :------------ | | Total regulatory liabilities | $3,834.8 | $3,791.9 | $42.9 | | Energy costs refundable through rate adjustments | $138.5 | $53.4 | $85.1 | | Derivatives | $21.6 | $76.7 | $(55.1) | - The increase in regulatory liabilities for energy costs was primarily due to lower natural gas costs in Q1 2023 compared to anticipated rates[80](index=80&type=chunk) [Note 6 Property, Plant, and Equipment](index=34&type=section&id=Note%206%20Property,%20Plant,%20and%20Equipment) The company plans to retire several generating units by 2026, with their net book values classified as plant to be retired, and the Samson I solar facility incurred **$21.4 million** in storm damage - Oak Creek Power Plant Units 5-8 (net book value **$812.9 million**) are expected to be retired by May 2024 (units 5-6) and late 2025 (units 7-8)[81](index=81&type=chunk) - Columbia Units 1 and 2 (net book value **$268.7 million**) are expected to be retired by June 2026[82](index=82&type=chunk) - Samson I solar facility sustained **$21.4 million** in storm damage in March 2023, substantially offset by a **$20.7 million** insurance receivable[83](index=83&type=chunk) [Note 7 Common Equity](index=34&type=section&id=Note%207%20Common%20Equity) The Board of Directors awarded stock options, restricted shares, and performance units, and a quarterly cash dividend of **$0.78 per share** was declared in April 2023 - Stock-based compensation awarded in Q1 2023 included **257,780** stock options and **75,453** restricted shares[84](index=84&type=chunk) - Quarterly cash dividend of **$0.78 per share** declared on April 20, 2023, payable June 1, 2023[87](index=87&type=chunk) - Restrictions on fund transfers from utility subsidiaries are not expected to materially affect dividend payments[85](index=85&type=chunk)[86](index=86&type=chunk) [Note 8 Short-Term Debt and Lines of Credit](index=36&type=section&id=Note%208%20Short-Term%20Debt%20and%20Lines%20of%20Credit) Commercial paper outstanding decreased to **$1,258.1 million** at March 31, 2023, with a weighted-average interest rate of **5.16%**, and the company maintains **$3,100.0 million** in revolving credit facilities Commercial Paper Outstanding (in millions) | Metric | March 31, 2023 (in millions) | December 31, 2022 (in millions) | Change (QoQ) | | :--------------------------------------- | :----------------------------- | :----------------------------- | :------------ | | Commercial paper outstanding | $1,258.1 | $1,643.5 | $(385.4) | | Weighted-average interest rate on commercial paper | 5.16% | 4.64% | 0.52% | Short-Term Credit Capacity (in millions) | Metric | March 31, 2023 (in millions) | | :--------------------------------------- | :----------------------------- | | Total short-term credit capacity | $3,100.0 | | Commercial paper outstanding | $1,258.1 | | Available capacity under existing agreements | $1,839.6 | [Note 9 Long-Term Debt](index=36&type=section&id=Note%209%20Long-Term%20Debt) WEC Energy Group issued **$1,100.0 million** in Senior Notes in January 2023 and an additional **$350.0 million** in April 2023 to repay short-term debt and for corporate purposes - WEC Energy Group issued **$650.0 million** of **4.75%** Senior Notes due 2026 and **$450.0 million** of **4.75%** Senior Notes due 2028 in January 2023[90](index=90&type=chunk) - An additional **$350.0 million** of **4.75%** Senior Notes due 2026 were issued in April 2023[90](index=90&type=chunk) - Integrys repurchased **$18.9 million** of its **6.00%** 2013 Junior Notes, prior to maturity, for **$18.6 million**, resulting in an insignificant gain[91](index=91&type=chunk) [Note 10 Materials, Supplies, and Inventories](index=37&type=section&id=Note%2010%20Materials,%20Supplies,%20and%20Inventories) Total inventory decreased to **$523.5 million** at March 31, 2023, primarily due to a significant reduction in natural gas in storage, resulting in a temporary LIFO liquidation credit of **$43.8 million** Inventory (in millions) | Category | March 31, 2023 (in millions) | December 31, 2022 (in millions) | Change (QoQ) | | :-------------------------- | :----------------------------- | :----------------------------- | :------------ | | Total inventory | $523.5 | $807.1 | $(283.6) | | Natural gas in storage | $137.0 | $446.3 | $(309.3) | | Materials and supplies | $276.6 | $257.0 | $19.6 | - A temporary LIFO liquidation credit of **$43.8 million** was recorded due to natural gas withdrawals from storage, expected to be replenished by year-end[92](index=92&type=chunk) [Note 11 Income Taxes](index=37&type=section&id=Note%2011%20Income%20Taxes) Total income tax expense decreased to **$74.1 million** in Q1 2023, with an effective tax rate of **12.7%**, primarily due to Production Tax Credits (PTCs) and federal excess deferred tax amortization Income Tax Expense and Effective Tax Rate (in millions) | Category | Q1 2023 (in millions) | Effective Tax Rate | Q1 2022 (in millions) | Effective Tax Rate | | :--------------------------------------- | :-------------------- | :----------------- | :-------------------- | :----------------- | | Statutory federal income tax | $122.1 | 21.0% | $145.5 | 21.0% | | PTCs | $(66.2) | (11.4)% | $(44.8) | (6.5)% | | Federal excess deferred tax amortization | $(13.1) | (2.3)% | $(15.8) | (2.3)% | | Total income tax expense | $74.1 | 12.7% | $127.1 | 18.3% | - PTCs from renewable generation facilities significantly reduced the effective tax rate[94](index=94&type=chunk) [Note 12 Fair Value Measurements](index=38&type=section&id=Note%2012%20Fair%20Value%20Measurements) Derivative assets decreased to **$7.7 million** and derivative liabilities increased to **$169.8 million** at March 31, 2023, primarily driven by natural gas contracts, while rabbi trust investments generated net unrealized gains Derivative Assets and Liabilities (in millions) | Category | March 31, 2023 (in millions) | December 31, 2022 (in millions) | Change (QoQ) | | :-------------------------- | :----------------------------- | :----------------------------- | :------------ | | Total derivative assets | $7.7 | $74.8 | $(67.1) | | Total derivative liabilities | $169.8 | $96.6 | $73.2 | - Investments held in rabbi trust recorded **$2.8 million** of net unrealized gains in Q1 2023, compared to **$3.3 million** net unrealized losses in Q1 2022[104](index=104&type=chunk) - Fair value of long-term debt (including current portion) was **$15,349.3 million** at March 31, 2023, compared to a carrying amount of **$16,524.7 million**[106](index=106&type=chunk) [Note 13 Derivative Instruments](index=40&type=section&id=Note%2013%20Derivative%20Instruments) The company uses derivatives to manage price volatility risks, with derivative assets decreasing and liabilities increasing at March 31, 2023, primarily due to natural gas contracts, which incurred **$75.3 million** in realized losses in Q1 2023 - Derivatives are used for risk management, not speculation, and regulated hedging programs are approved by state regulators[107](index=107&type=chunk) Derivative Assets and Liabilities (in millions) | Category | March 31, 2023 (in millions) | December 31, 2022 (in millions) | Change (QoQ) | | :-------------------------- | :----------------------------- | :----------------------------- | :------------ | | Total derivative assets | $7.7 | $74.8 | $(67.1) | | Total derivative liabilities | $169.8 | $96.6 | $73.2 | Realized Gains (Losses) on Derivative Instruments (in millions) | Contract Type | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :------------ | | Natural gas contracts | $(75.3) | $31.6 | $(106.9) | | FTRs and TCRs | $0.4 | $1.0 | $(0.6) | | Total | $(74.9) | $32.6 | $(107.5) | [Note 14 Guarantees](index=41&type=section&id=Note%2014%20Guarantees) The company has total outstanding guarantees of **$159.8 million** at March 31, 2023, primarily consisting of standby letters of credit and surety bonds for operational and environmental obligations Guarantees (in millions) | Type of Guarantee | Total Committed (in millions) | Less Than 1 Year (in millions) | 1 to 3 Years (in millions) | Over 3 Years (in millions) | | :------------------------ | :---------------------------- | :----------------------------- | :------------------------- | :------------------------- | | Standby letters of credit | $116.3 | $9.5 | $0.2 | $106.6 | | Surety bonds | $33.8 | $33.7 | $0.1 | $0.0 | | Other guarantees | $9.7 | $0.0 | $0.0 | $9.7 | | Total guarantees | $159.8 | $43.2 | $0.3 | $116.3 | [Note 15 Employee Benefits](index=41&type=section&id=Note%2015%20Employee%20Benefits) Net periodic pension benefit cost shifted to a credit of **$(2.5) million** in Q1 2023, while OPEB benefits remained a credit, and escrow accounting for these costs was approved effective January 1, 2023 Net Periodic Pension Benefit Cost (Credit) (in millions) | Component | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :------------ | | Service cost | $6.6 | $12.4 | $(5.8) | | Expected return on plan assets | $(47.4) | $(52.7) | $5.3 | | Net periodic benefit cost (credit) | $(2.5) | $2.0 | $(4.5) | Net Periodic OPEB Benefit Credit (in millions) | Component | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :------------ | | Service cost | $2.5 | $3.8 | $(1.3) | | Expected return on plan assets | $(13.3) | $(17.2) | $3.9 | | Net periodic benefit credit | $(12.3) | $(19.5) | $7.2 | - Escrow accounting for pension and OPEB costs was approved by the PSCW, effective January 1, 2023, leading to regulatory assets for these costs[118](index=118&type=chunk) [Note 16 Goodwill and Intangibles](index=43&type=section&id=Note%2016%20Goodwill%20and%20Intangibles) Goodwill remained unchanged at **$3,052.8 million** at March 31, 2023, while intangible liabilities, mainly related to Power Purchase Agreements (PPAs) from WECI acquisitions, significantly increased to **$635.0 million** Goodwill by Segment (in millions) | Segment | Goodwill (in millions) | | :-------------------------- | :--------------------- | | Wisconsin | $2,104.3 | | Illinois | $758.7 | | Other States | $183.2 | | Non-Utility Energy Infrastructure | $6.6 | | Total | $3,052.8 | Intangible Liabilities (in millions) | Category | March 31, 2023 (Net Carrying Amount, in millions) | December 31, 2022 (Net Carrying Amount, in millions) | Change (QoQ) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :------------ | | PPAs | $626.8 | $327.0 | $299.8 | | Total intangible liabilities | $635.0 | $335.4 | $299.6 | - Amortization related to intangible liabilities for Q1 2023 was **$10.4 million**, significantly higher than **$2.2 million** in Q1 2022[125](index=125&type=chunk) [Note 17 Investment in Transmission Affiliates](index=45&type=section&id=Note%2017%20Investment%20in%20Transmission%20Affiliates) The company's equity investment in ATC and ATC Holdco increased to **$1,921.7 million** at March 31, 2023, driven by equity earnings and capital contributions, with ATC's net income for Q1 2023 at **$68.8 million** Investment in Transmission Affiliates (in millions) | Metric | March 31, 2023 (in millions) | December 31, 2022 (in millions) | Change (QoQ) | | :--------------------------------------- | :----------------------------- | :----------------------------- | :------------ | | Balance at beginning of period | $1,909.2 | $1,789.4 (Dec 31, 2021) | N/A | | Equity in earnings of transmission affiliates | $43.8 | $41.7 | $2.1 | | Capital contributions | $6.1 | $21.1 | $(15.0) | | Distributions | $37.4 | $34.0 | $3.4 | | Balance at end of period | $1,921.7 | $1,818.2 (March 31, 2022) | N/A | ATC Financial Performance (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :------------ | | Operating revenues | $200.4 | $191.0 | $9.4 | | Net income | $68.8 | $67.5 | $1.3 | [Note 18 Segment Information](index=46&type=section&id=Note%2018%20Segment%20Information) WEC Energy Group operates six segments, with total net income attributed to common shareholders for Q1 2023 at **$507.5 million**, primarily contributed by Wisconsin and Non-Utility Energy Infrastructure - The company's six segments are Wisconsin, Illinois, Other States, Electric Transmission, Non-Utility Energy Infrastructure, and Corporate and Other[130](index=130&type=chunk)[131](index=131&type=chunk) Net Income Attributed to Common Shareholders by Segment (in millions) | Segment | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :--------------------------------------- | :-------------------- | :-------------------- | :------------ | | Wisconsin | $257.2 | $288.1 | $(30.9) | | Illinois | $113.1 | $113.4 | $(0.3) | | Other States | $33.2 | $31.5 | $1.7 | | Electric Transmission | $29.3 | $27.8 | $1.5 | | Non-Utility Energy Infrastructure | $88.5 | $91.5 | $(3.0) | | Corporate and Other | $(13.8) | $13.6 | $(27.4) | | Total | $507.5 | $565.9 | $(58.4) | [Note 19 Variable Interest Entities](index=50&type=section&id=Note%2019%20Variable%20Interest%20Entities) WEPCo Environmental Trust is a consolidated VIE, while ATC and ATC Holdco are equity method investments due to limited voting rights, despite being VIEs - WEPCo Environmental Trust is a consolidated VIE, with **$90.9 million** in regulatory assets and **$94.1 million** in long-term debt at March 31, 2023[140](index=140&type=chunk) - ATC and ATC Holdco are VIEs but are accounted for as equity method investments due to limited voting rights, with equity investments of **$1,896.2 million** and **$25.5 million**, respectively, at March 31, 2023[141](index=141&type=chunk)[143](index=143&type=chunk) [Note 20 Commitments and Contingencies](index=52&type=section&id=Note%2020%20Commitments%20and%20Contingencies) The company has significant unconditional purchase obligations totaling approximately **$10.4 billion** and faces ongoing environmental compliance and remediation obligations, with legal proceedings not expected to materially impact financial condition - Minimum future commitments for purchase obligations totaled approximately **$10.4 billion** as of March 31, 2023[151](index=151&type=chunk) - The company's ESG Progress Plan aims for **60%** reduction in carbon emissions by 2025 and **80%** by 2030 (from 2005 baseline), with a net-zero CO2 emissions target by 2050 for its generation fleet[166](index=166&type=chunk) - Net-zero methane emissions target by end of 2030 for natural gas distribution operations[166](index=166&type=chunk) - The EPA's proposed "supplemental ELG rule" could establish stricter limitations, including a Zero Liquid Discharge (ZLD) requirement for FGD wastewater by December 31, 2029[175](index=175&type=chunk) - Regulatory assets for manufactured gas plant sites were **$590.6 million** and reserves for future environmental remediation were **$491.7 million** at March 31, 2023[185](index=185&type=chunk) [Note 21 Supplemental Cash Flow Information](index=62&type=section&id=Note%2021%20Supplemental%20Cash%20Flow%20Information) Cash paid for interest (net of capitalized amount) was **$107.5 million** in Q1 2023, up from **$68.3 million** in Q1 2022. Restricted cash, including funds in rabbi trusts and for debt agreements, totaled **$128.0 million** at March 31, 2023 Cash Paid for Interest and Income Taxes (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :--------------------------------------- | :-------------------- | :-------------------- | :------------ | | Cash paid for interest, net of capitalized amount | $107.5 | $68.3 | $39.2 | | Cash paid for income taxes, net | $1.0 | $0.7 | $0.3 | Cash, Cash Equivalents, and Restricted Cash (in millions) | Metric | March 31, 2023 (in millions) | December 31, 2022 (in millions) | Change (QoQ) | | :--------------------------------------- | :----------------------------- | :----------------------------- | :------------ | | Cash, cash equivalents, and restricted cash | $128.0 | $182.2 | $(54.2) | - Restricted cash includes funds in the Integrys rabbi trust, cash for debt agreements, and cash from renewable generation project acquisitions for construction costs[195](index=195&type=chunk) [Note 22 Regulatory Environment](index=63&type=section&id=Note%2022%20Regulatory%20Environment) PGL and NSG filed for natural gas rate increases in Illinois, MERC initiated a rate proceeding in Minnesota, and MGU filed for a rate increase in Michigan, with decisions anticipated in Q4 2023 - PGL and NSG requested natural gas rate increases of **$194.7 million** and **$18.7 million**, respectively, in Illinois, with an ICC decision expected in Q4 2023[196](index=196&type=chunk) - MERC's rate proceeding in Minnesota resulted in a **$37.0 million** interim rate increase effective January 1, 2023, and a pending settlement for a **$28.8 million** increase[200](index=200&type=chunk)[201](index=201&type=chunk) - MGU filed for a **$19.1 million** natural gas rate increase in Michigan, with a MPSC decision anticipated in Q4 2023[202](index=202&type=chunk) - PGL's QIP rider, which recovers infrastructure upgrade costs, is in effect through 2023, with reconciliations from 2016-2022 still pending ICC approval[198](index=198&type=chunk)[199](index=199&type=chunk) [Note 23 New Accounting Pronouncements](index=65&type=section&id=Note%2023%20New%20Accounting%20Pronouncements) The FASB issued ASU No. 2022-06, extending the relief for applying GAAP to contracts affected by reference rate reform (LIBOR replacement) to December 31, 2024 - FASB extended relief for reference rate reform (LIBOR replacement) accounting to December 31, 2024[206](index=206&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=66&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial condition, operations, and corporate developments, including strategic goals, sustainability, and liquidity [Corporate Developments](index=66&type=section&id=Corporate%20Developments) WEC Energy Group focuses on long-term value through environmental stewardship, reliability, operating efficiency, financial discipline, customer care, and safety, guided by its ESG Progress Plan [Introduction](index=66&type=section&id=Introduction) WEC Energy Group is a diversified holding company with natural gas and electric utility operations across four states, a **60%** equity interest in ATC, and non-utility energy infrastructure operations - WEC Energy Group is a diversified holding company with utility operations in four states, a **60%** equity interest in ATC, and non-utility energy infrastructure[209](index=209&type=chunk) [Corporate Strategy](index=66&type=section&id=Corporate%20Strategy) The company's corporate strategy aims to build long-term value for shareholders and customers by focusing on environmental stewardship, reliability, operating efficiency, financial discipline, customer care, and safety - Corporate strategy focuses on environmental stewardship, reliability, operating efficiency, financial discipline, customer care, and safety[210](index=210&type=chunk) - The ESG Progress Plan is a roadmap for cutting emissions, maintaining reliability, delivering customer savings, and growing energy investments[210](index=210&type=chunk) [Creating a Sustainable Future](index=66&type=section&id=Creating%20a%20Sustainable%20Future) The ESG Progress Plan involves retiring older fossil-fueled generation and investing approximately **$5.4 billion** in regulated renewable energy and clean natural gas, targeting significant carbon and methane emission reductions - ESG Progress Plan includes retiring older fossil-fueled generation and replacing it with zero-carbon renewables and clean natural gas[212](index=212&type=chunk) - Goals: **60%** carbon emission reduction by end of 2025, **80%** by end of 2030 (from 2005 baseline), and net-zero CO2 emissions by 2050 for electric generation fleet[212](index=212&type=chunk) - Target for natural gas distribution operations: net-zero methane emissions by end of 2030, achieved through operational improvements, equipment upgrades, and Renewable Natural Gas (RNG) use[219](index=219&type=chunk) - Expected investment of approximately **$5.4 billion** from 2023-2027 in regulated renewable energy in Wisconsin, including **1,900 MWs** solar, **700 MWs** battery storage, and **700 MWs** wind[214](index=214&type=chunk)[216](index=216&type=chunk) - Over **1,900 MWs** of coal-fired generation retired since 2018; approximately **1,500 MWs** of additional fossil-fueled generation expected to retire by end of 2026[213](index=213&type=chunk) [Reliability](index=68&type=section&id=Reliability) The company plans to invest approximately **$3.6 billion** from 2023 to 2027 in reliability projects to strengthen its generation fleet and distribution networks, including new LNG facilities and pipeline upgrades - Approximately **$3.6 billion** expected to be spent from 2023-2027 on reliability projects[226](index=226&type=chunk) - WE and WG received approval to construct LNG facilities to meet peak demand, targeted for commercial operation by end of 2023 and 2024, respectively[223](index=223&type=chunk) - PGL continues its Safety Modernization Program to replace old iron pipes in Chicago's natural gas delivery system[234](index=234&type=chunk) [Operating Efficiency](index=70&type=section&id=Operating%20Efficiency) The company continuously optimizes operating efficiency through initiatives like the Advanced Metering Infrastructure (AMI) program, enhancing customer communication and outage management - Advanced Metering Infrastructure (AMI) program is replacing aging meter-reading equipment to enable two-way communication, reduce manual effort, and enhance outage management[227](index=227&type=chunk) [Financial Discipline](index=70&type=section&id=Financial%20Discipline) Maintaining financial discipline is crucial for meeting earnings projections, a strong balance sheet, stable cash flows, growing dividends, and quality credit ratings, with projected capital expenditures and acquisitions of **$18.1 billion** for 2023-2027 - Investment focus remains on regulated utility, non-utility energy infrastructure, and ATC[231](index=231&type=chunk) - Non-utility energy infrastructure segment has acquired or agreed to acquire majority interests in eight wind parks and two solar parks, representing over **$2.9 billion** in committed investments[231](index=231&type=chunk) - Total capital expenditures for regulated utility and non-utility energy infrastructure businesses are expected to be approximately **$18.1 billion** from 2023-2027[232](index=232&type=chunk) - Forecasted share of ATC's capital expenditures over the next five years is approximately **$2.0 billion**[232](index=232&type=chunk) [Exceptional Customer Care](index=70&type=section&id=Exceptional%20Customer%20Care) The company is committed to providing exceptional customer care by standardizing digital customer service across all companies to reduce costs, increase flexibility, and enhance consistent service delivery - A multiyear effort is standardizing digital customer service across all companies to improve efficiency and consistency[234](index=234&type=chunk) [Safety](index=71&type=section&id=Safety) Safety is a core value, with a "Target Zero" mission aiming for zero incidents, accidents, and injuries, reinforced by management and union leadership - "Target Zero" mission aims for zero incidents, accidents, and injuries, reinforced by management and union leadership[236](index=236&type=chunk) [Results of Operations](index=71&type=section&id=Results%20of%20Operations) Consolidated net income attributed to common shareholders decreased by **$58.4 million** in Q1 2023, primarily due to lower earnings in the Wisconsin and Corporate and Other segments, influenced by increased expenses and lower sales volumes [Consolidated Earnings](index=71&type=section&id=Consolidated%20Earnings) Consolidated net income attributed to common shareholders decreased by **$58.4 million** to **$507.5 million** in Q1 2023, with diluted EPS of **$1.61**, mainly due to decreases in the Wisconsin and Corporate and Other segments Net Income Attributed to Common Shareholders by Segment (in millions) | Segment | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :--------------------------------------- | :-------------------- | :-------------------- | :------------ | | Wisconsin | $257.2 | $288.1 | $(30.9) | | Illinois | $113.1 | $113.4 | $(0.3) | | Other states | $33.2 | $31.5 | $1.7 | | Electric transmission | $29.3 | $27.8 | $1.5 | | Non-utility energy infrastructure | $88.5 | $91.5 | $(3.0) | | Corporate and other | $(13.8) | $13.6 | $(27.4) | | Net income attributed to common shareholders | $507.5 | $565.9 | $(58.4) | | Diluted earnings per share | $1.61 | $1.79 | $(0.18) | - Wisconsin segment earnings decreased **$30.9 million** due to higher operating expenses (transmission, depreciation, regulatory amortizations) and lower electric/natural gas sales volumes from warmer weather, partially offset by 2023 rate orders[239](index=239&type=chunk) - Corporate and other segment shifted from **$13.6 million** net income to a **$13.8 million** net loss, driven by higher interest expense and lower earnings from equity method investments, partially offset by gains from Integrys rabbi trust investments[239](index=239&type=chunk) - Expected 2023 annual effective tax rate is between **13.0%** and **14.0%**[240](index=240&type=chunk) [Non-GAAP Financial Measures](index=73&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures, electric margins and natural gas margins, to evaluate utility operations by excluding revenue fluctuations from fuel and natural gas costs passed through to customers - Electric margins (electric revenues less fuel and purchased power costs) and natural gas margins (natural gas revenues less cost of natural gas sold) are non-GAAP measures used to evaluate utility operations[241](index=241&type=chunk)[242](index=242&type=chunk) - These non-GAAP measures exclude the majority of revenue fluctuations caused by changes in fuel and natural gas expenses, which are typically passed through to customers[242](index=242&type=chunk) [Wisconsin Segment Contribution to Net Income Attributed to Common Shareholders](index=74&type=section&id=Wisconsin%20Segment%20Contribution%20to%20Net%20Income%20Attributed%20to%20Common%20Shareholders) The Wisconsin segment's net income decreased by **$30.9 million** (10.7%) to **$257.2 million** in Q1 2023, primarily due to a **$93.3 million** increase in other operating expenses and lower sales volumes, partially offset by increased margins from 2023 rate orders Wisconsin Segment Net Income and Key Metrics (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :--------------------------------------- | :-------------------- | :-------------------- | :------------ | | Net income attributed to common shareholders | $257.2 | $288.1 | $(30.9) | | Total electric and natural gas margins | $1,076.0 | $1,038.6 | $37.4 | | Other operation and maintenance | $380.8 | $312.6 | $(68.2) | | Depreciation and amortization | $207.3 | $187.1 | $(20.2) | | Property and revenue taxes | $46.1 | $41.2 | $(4.9) | | Interest expense | $150.6 | $136.3 | $(14.3) | | Income tax expense | $65.9 | $95.4 | $29.5 | - Electric utility margins increased **$11.1 million**, driven by **$81.5 million** from 2023 rate orders, but offset by **$31.0 million** negative impact from fuel/purchased power cost collections and **$26.6 million** from lower sales volumes due to warmer weather[254](index=254&type=chunk)[257](index=257&type=chunk) - Natural gas utility margins increased **$26.3 million**, driven by **$55.7 million** from 2023 rate orders, but offset by **$27.7 million** from lower sales volumes due to warmer weather[256](index=256&type=chunk) - Other operating expenses increased **$93.3 million**, including **$30.2 million** in transmission expense, **$20.2 million** in depreciation, **$17.3 million** in regulatory amortizations, and **$7.9 million** in We Power lease expenses[257](index=257&type=chunk)[258](index=258&type=chunk) - Q1 2023 weather was significantly warmer than Q1 2022, with heating degree days down **14.8%** in Milwaukee and **12.7%** in Green Bay[249](index=249&type=chunk) [Illinois Segment Contribution to Net Income Attributed to Common Shareholders](index=80&type=section&id=Illinois%20Segment%20Contribution%20to%20Net%20Income%20Attributed%20to%20Common%20Shareholders) The Illinois segment's net income slightly decreased by **$0.3 million** (0.3%) to **$113.1 million** in Q1 2023, as higher natural gas margins were offset by increased interest expense and operating expenses Illinois Segment Net Income and Key Metrics (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :--------------------------------------- | :-------------------- | :-------------------- | :------------ | | Net income attributed to common shareholders | $113.1 | $113.4 | $(0.3) | | Total natural gas margins | $360.5 | $351.1 | $9.4 | | Interest expense | $21.6 | $17.7 | $(3.9) | - Natural gas utility margins increased **$9.7 million**, primarily due to a **$6.2 million** increase in revenues from PGL's SMP project and increases in late payment charges and fixed customer charges[268](index=268&type=chunk) - Other operating expenses increased **$2.5 million**, driven by a **$1.7 million** increase in depreciation and amortization from SMP investment, partially offset by a **$2.7 million** decrease in natural gas distribution and maintenance costs[272](index=272&type=chunk) - Natural gas sales volumes decreased by **130.3 million therms** (**13.5%**) due to warmer winter weather (heating degree days down **15.3%**)[265](index=265&type=chunk) [Other States Segment Contribution to Net Income Attributed to Common Shareholders](index=83&type=section&id=Other%20States%20Segment%20Contribution%20to%20Net%20Income%20Attributed%20to%20Common%20Shareholders) The Other States segment's net income increased by **$1.7 million** (5.4%) to **$33.2 million** in Q1 2023, driven by a **$6.8 million** increase in natural gas margins from an interim rate increase, partially offset by lower sales volumes and higher operating expenses Other States Segment Net Income and Key Metrics (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :--------------------------------------- | :-------------------- | :-------------------- | :------------ | | Net income attributed to common shareholders | $33.2 | $31.5 | $1.7 | | Total natural gas margins | $90.8 | $84.0 | $6.8 | | Property and revenue taxes | $7.4 | $4.8 | $(2.6) | - Natural gas utility margins increased **$6.8 million**, primarily due to a **$9.0 million** interim rate increase at MERC, partially offset by a **$3.8 million** decrease from lower sales volumes due to warmer weather[276](index=276&type=chunk) - Other operating expenses increased **$3.1 million**, driven by a **$2.6 million** increase in property and revenue taxes and a **$1.1 million** increase in bad debt expense[277](index=277&type=chunk)[280](index=280&type=chunk) - Natural gas sales volumes decreased by **78.0 million therms** (**14.6%**) due to warmer winter weather (heating degree days down **10.0%** for MERC, **15.3%** for MGU)[274](index=274&type=chunk) [Electric Transmission Segment Contribution to Net Income Attributed to Common Shareholders](index=86&type=section&id=Electric%20Transmission%20Segment%20Contribution%20to%20Net%20Income%20Attributed%20to%20Common%20Shareholders) The Electric Transmission segment's net income increased by **$1.5 million** (5.4%) to **$29.3 million** in Q1 2023, primarily due to a **$2.1 million** increase in equity in earnings of transmission affiliates from continued capital investment by ATC Electric Transmission Segment Net Income and Key Metrics (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :--------------------------------------- | :-------------------- | :-------------------- | :------------ | | Net income attributed to common shareholders | $29.3 | $27.8 | $1.5 | | Equity in earnings of transmission affiliates | $43.8 | $41.7 | $2.1 | - Increase in equity in earnings of transmission affiliates was primarily due to continued capital investment by ATC[281](index=281&type=chunk) [Non-Utility Energy Infrastructure Segment Contribution to Net Income Attributed to Common Shareholders](index=87&type=section&id=Non-Utility%20Energy%20Infrastructure%20Segment%20Contribution%20to%20Net%20Income%20Attributed%20to%20Common%20Shareholders) The Non-Utility Energy Infrastructure segment's net income decreased by **$3.0 million** (3.3%) to **$88.5 million** in Q1 2023, mainly due to a **$15.2 million** decrease in operating income, partially offset by a **$12.9 million** increase in income tax benefit from PTCs Non-Utility Energy Infrastructure Segment Net Income and Key Metrics (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :--------------------------------------- | :-------------------- | :-------------------- | :------------ | | Net income attributed to common shareholders | $88.5 | $91.5 | $(3.0) | | Operating income | $90.4 | $105.6 | $(15.2) | | Interest expense | $19.9 | $17.2 | $(2.7) | | Income tax benefit | $(17.8) | $(4.9) | $12.9 | - Operating income decreased **$15.2 million** due to a one-time revenue recognition in Q1 2022 from SPP market settlements[284](index=284&type=chunk) - Income tax benefit increased **$12.9 million**, primarily due to an **$8.6 million** increase in PTCs from the acquisition of three additional renewable generation facilities[286](index=286&type=chunk) [Corporate and Other Segment Contribution to Net Income Attributed to Common Shareholders](index=88&type=section&id=Corporate%20and%20Other%20Segment%20Contribution%20to%20Net%20Income%20Attributed%20to%20Common%20Shareholders) The Corporate and Other segment shifted from a net income of **$13.6 million** in Q1 2022 to a net loss of **$13.8 million** in Q1 2023, a **$27.4 million** decrease, driven by higher interest expense and lower other income Corporate and Other Segment Net Income (Loss) and Key Metrics (in millions) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :--------------------------------------- | :-------------------- | :-------------------- | :------------ | | Net income (loss) attributed to common shareholders | $(13.8) | $13.6 | $(27.4) | | Operating loss | $(3.6) | $(0.5) | $(3.1) | | Other income, net | $8.5 | $11.9 | $(3.4) | | Interest expense | $55.6 | $22.6 | $(33.0) | | Income tax benefit | $(36.9) | $(24.8) | $12.1 | - Interest expense increased **$33.0 million** due to long-term debt issuances in September 2022 and January 2023, and higher short-term debt interest rates[291](index=291&type=chunk) - Other income, net decreased **$3.4 million**, driven by a **$3.1 million** net loss from equity method investments in Q1 2023, compared to **$11.3 million** net earnings in Q1 2022[290](index=290&type=chunk) [Liquidity and Capital Resources](index=88&type=section&id=Liquidity%20and%20Capital%20Resources) The company expects to maintain adequate liquidity through internal cash generation and capital market access, despite decreased operating cash flows and increased investing activities in Q1 2023 [Overview](index=88&type=section&id=Overview) The company plans to meet its short-term and long-term cash requirements through internally generated cash from operations and access to capital markets - Liquidity will be maintained through internal cash generation and access to capital markets (commercial paper, term loans, debt securities)[318](index=318&type=chunk) [Cash Flows](index=89&type=section&id=Cash%20Flows) Net cash provided by operating activities decreased by **$280.7 million** in Q1 2023, while net cash used in investing activities increased by **$929.7 million**, and net cash from financing activities increased by **$1,124.1 million** Cash Flow Activities (in millions) | Activity | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :------------ | | Operating activities | $796.1 | $1,076.8 | $(280.7) | | Investing activities | $(1,267.9) | $(338.2) | $(929.7) | | Financing activities | $417.6 | $(706.5) | $1,124.1 | - Operating cash flow decreased due to higher collateral paid (**$363.8 million**), higher O&M payments (**$74.2 million**), and higher interest payments (**$39.2 million**), partially offset by higher customer collections (**$203.2 million**)[295](index=295&type=chunk) - Investing cash flow increased due to acquisitions of Sapphire Sky (**$442.6 million**), Samson I (**$249.4 million**), Whitewater (**$76.0 million**), and a **$115.9 million** increase in capital expenditures[297](index=297&type=chunk) - Financing cash flow increased due to **$1,100.0 million** in long-term debt issuances, lower net repayments of commercial paper (**$62.5 million**), and lower common stock purchases (**$16.5 million**), partially offset by higher debt retirements (**$19.8 million**) and dividends paid (**$16.5 million**)[301](index=301&type=chunk) [Cash Requirements](index=90&type=section&id=Cash%20Requirements) Significant cash requirements include capital and investment expenditures, debt retirement, interest payments, common stock dividends, and ongoing operations, with projected capital expenditures and acquisitions for 2023-2025 totaling **$11.27 billion** Projected Capital Expenditures and Acquisitions (2023-2025, in millions) | Segment | 2023 (in millions) | 2024 (in millions) | 2025 (in millions) | Total (2023-2025) | | :-------------------------- | :-------------------- | :-------------------- | :-------------------- | :------------------ | | Wisconsin | $2,530.7 | $2,432.8 | $2,445.5 | $7,409.0 | | Illinois | $557.1 | $659.5 | $614.0 | $1,830.6 | | Other states | $111.8 | $115.0 | $104.7 | $331.5 | | Non-utility energy infrastructure | $747.0 | $683.8 | $217.2 | $1,648.0 | | Corporate and other | $28.1 | $17.0 | $2.7 | $47.8 | | Total | $3,974.7 | $3,908.1 | $3,384.1 | $11,266.9 | - Key capital projects include utility system upgrades (aging infrastructure, AMI), solar, wind, battery storage, clean natural gas-fired generation, and LNG facilities[307](index=307&type=chunk)[311](index=311&type=chunk)[315](index=315&type=chunk) - PGL is continuing its Safety Modernization Program with projected average annual investment of **$280-$300 million** through 2025[312](index=312&type=chunk) - Expected capital contributions to ATC are approximately **$244 million** from 2023-2025[313](index=313&type=chunk) - Current quarterly dividend rate is **$0.78 per share**, or **$3.12 annually**[315](index=315&type=chunk) [Sources of Cash](index=96&type=section&id=Sources%20of%20Cash) The company relies on internal cash generation and capital market access, maintaining **$3,100.0 million** in revolving credit facilities, and deems its liquidity adequate despite current liabilities exceeding current assets - Cash from operations and capital markets access are primary liquidity sources[318](index=318&type=chunk) - WEC Energy Group and its key utility subsidiaries maintain bank back-up credit facilities totaling **$3,100.0 million**, with **$1,839.6 million** available capacity at March 31, 2023[319](index=319&type=chunk)[89](index=89&type=chunk) - Current liabilities exceeded current assets by **$927.3 million** at March 31, 2023, but liquidity is deemed adequate[322](index=322&type=chunk) [Capitalization Structure](index=98&type=section&id=Capitalization%20Structure) The company's actual debt to total capitalization ratio was **60.5%** at March 31, 2023, with an adjusted ratio of **59.7%** reflecting rating agency treatment of certain junior notes as equity Capitalization Structure (in millions) | Metric | Actual (in millions) | Adjusted (in millions) | | :--------------------------------------- | :------------------- | :------------------- | | Common shareholders' equity | $11,636.6 | $11,886.6 | | Long-term debt (including current portion) | $16,635.5 | $16,385.5 | | Short-term debt | $1,261.2 | $1,261.2 | | Total capitalization | $29,563.7 | $29,563.7 | | Ratio of debt to total capitalization | 60.5% | 59.7% | - The adjusted capitalization reflects rating agency treatment of **$250.0 million** of 2007 Junior Notes as equity[327](index=327&type=chunk)[328](index=328&type=chunk) [Credit Rating Risk](index=98&type=section&id=Credit%20Rating%20Risk) The company is in compliance with all debt covenants, and while a credit rating downgrade could impact capital market access, S&P Global Inc. affirmed ratings in May 2023, revising its outlook to negative from stable - Company is in compliance with all debt covenants[329](index=329&type=chunk) - S&P Global Inc. affirmed WEC Energy Group's ratings on May 2, 2023, but revised its outlook to negative from stable, citing weakening financial measures[332](index=332&type=chunk) - A sub-investment grade rating for WE could require **$100 million** in additional collateral for a PPA[330](index=330&type=chunk) [Factors Affecting Results, Liquidity, and Capital Resources](index=100&type=section&id=Factors%20Affecting%20Results,%20Liquidity,%20and%20Capital%20Resources) This section discusses various regulatory, legislative, legal, environmental, and market risks that could impact the company's financial performance, liquidity, and capital resources [Regulatory, Legislative, and Legal Matters](index=100&type=section&id=Regulatory,%20Legislative,%20and%20Legal%20Matters) Regulatory approvals, legislative changes like Illinois' CEJA, federal actions on solar panels, and FERC proposals regarding ROE incentives for transmission organizations could impact the company's costs and earnings - PGL's QIP rider reconciliations for 2016-2022 are pending ICC approval, with no assurance of full cost recovery[336](index=336&type=chunk) - Illinois' CEJA, effective January 1, 2023, prohibits natural gas utilities from charging late payment fees to certain low-income residential customers[342](index=342&type=chunk) - UFLPA and DOC investigations on solar panels could cause delays and impact costs for solar projects, despite a 24-month tariff moratorium[343](index=343&type=chunk)[344](index=344&type=chunk)[345](index=345&type=chunk) - The IRA provides significant energy-related provisions, including extended tax benefits for renewables, higher PTC rates, and transferability of tax credits, which are expected to reduce investment costs[347](index=347&type=chunk) - FERC's proposed rule to limit the 50 basis point ROE incentive for transmission organization membership could reduce future after-tax equity earnings from ATC by approximately **$7 million** annually[348](index=348&type=chunk) - The D.C. Circuit Court of Appeals remanded FERC's ROE orders for MISO transmission owners, including ATC, for additional proceedings, potentially leading to further refunds[356](index=356&type=chunk) [Environmental Matters](index=106&type=section&id=Environmental%20Matters) The company faces significant environmental compliance and remediation obligations related to air, water, and land quality, requiring ongoing investments and potentially leading to stricter limitations - EPA's final Good Neighbor Plan (March 2023) requires significant NOx emission reductions, which the company believes it is well-positioned to meet[154](index=154&type=chunk) - EPA's proposed MATS revisions (April 2023) could lower PM limits, potentially impacting operations[156](index=156&type=chunk) - EPA's proposed revision to the annual PM2.5 standard (January 2023) to **9-10 µg/m3** could affect permitting for smaller ancillary equipment if lowered below **10 µg/m3**[161](index=161&type=chunk)[162](index=162&type=chunk) - The proposed "supplemental ELG rule" (March 2023) would establish stricter limitations, including a ZLD requirement for FGD wastewater by December 31, 2029[175](index=175&type=chunk) - The Supreme Court's decision on the WOTUS definition (expected Q2 2023) will provide clarity on federal jurisdiction over wetlands[179](index=179&type=chunk) - EPA is drafting regulations for CCR storage at inactive "legacy units" and considering corrective action requirements for all CCR contamination, with a proposed rule expected in summer 2023[186](index=186&type=chunk) [Market Risks and Other Significant Risks](index=106&type=section&id=Market%20Risks%20and%20Other%20Significant%20Risks) The company is exposed to market and other significant risks, including inflation and supply chain disruptions, which it manages through various strategies, while the Russia-Ukraine conflict presents ongoing global economic uncertainty - Inflation and supply chain disruptions are ongoing risks, managed through pricing strategies, productivity improvements, and cost reductions[356](index=356&type=chunk) - The Russia-Ukraine conflict creates uncertainty for the global economy, supply chains, and fuel prices[355](index=355&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=108&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) There have been no material changes to market risk disclosures from the 2022 Annual Report on Form 10-K, with additional information provided in Management's Discussion and Analysis and financial notes - No material changes to market risk disclosures from the 2022 Annual Report on Form 10-K[360](index=360&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=108&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes in internal control over financial reporting during Q1 2023 [Disclosure Controls and Procedures](index=108&type=section&id=Disclosure%20Controls%20and%20Procedures) Management, including principal executive and financial officers, evaluated and concluded that the company's disclosure controls and procedures were effective as of March 31, 2023 - Disclosure controls and procedures were evaluated and deemed effective as of March 31, 2023[361](index=361&type=chunk) [Changes in Internal Control Over Financial Reporting](index=108&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) There were no material changes in the company's internal control over financial reporting during the first quarter of 2023 - No material changes in internal control over financial reporting during Q1 2023[362](index=362&type=chunk) [PART II. OTHER INFORMATION](index=109&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part includes disclosures on legal proceedings, risk factors, unregistered sales of equity securities, and exhibits, providing additional context to the financial information [ITEM 1. LEGAL PROCEEDINGS](index=109&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various legal and administrative proceedings, including a class action lawsuit, but management believes their ultimate resolution will not materially impact financial condition - A putative class action lawsuit, Munt, et al. v. WEC Energy Group, Inc., et al., was filed in May 2022, alleging breaches of fiduciary duties related to the Employee Retirement Saving Plan[368](index=368&type=chunk) - Management believes the ultimate resolution of legal proceedings will not materially impact financial condition or results of operations[367](index=367&type=chunk) [ITEM 1A. RISK FACTORS](index=109&type=section&id=ITEM%201A.%20Risk%20Factors) There were no material changes to the risk factors disclosed in the 2022 Annual Report on Form 10-K - No material changes to risk factors from the 2022 Annual Report on Form 10-K[369](index=369&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=109&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q1 2023, the company purchased **17,270** shares of its equity securities at an average price of **$93.88 per share**, primarily from employees to satisfy tax withholding obligations Equity Securities Purchased (Q1 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :-------------------------- | :----------------------------- | :--------------------------- | | January 1 – January 31 | 17,270 | $93.88 | | Total (Q1 2023) | 17,270 | $93.88 | - Shares were surrendered by employees to satisfy tax withholding obligations upon vesting of restricted stock[371](index=371&type=chunk) [ITEM 6. EXHIBITS](index=110&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed or furnished with the report, including instruments defining security holders' rights, certifications, and Interactive Data Files (XBRL) - Exhibits include Securities Resolution No. 14, Rule 13a-14(a)/15d-14(a) Certifications, Section 1350 Certifications, and Interactive Data Files (XBRL)[373](index=373&type=chunk) [SIGNATURE](index=111&type=section&id=SIGNATURE) The report is signed by William J. Guc, Vice President and Controller, as the Duly Authorized Officer and Chief Accounting Officer of WEC Energy Group, Inc. - Report signed by William J. Guc, Vice President and Controller, on May 4, 2023[376](index=376&type=chunk)

WEC Energy Group, Inc. (NYSE:WEC) Q1 2023 Earnings Conference Call May 1, 2023 2:00 PM ET Company Participants Gale Klappa - Executive Chairman Scott Lauber - President and Chief Executive Officer Xia Liu - Executive Vice President and Chief Financial Officer Conference Call Participants Shar Pourreza - Guggenheim Partners Julien Dumoulin-Smith - Bank of America Jeremy Tonet - JPMorgan Chase Michael Sullivan - Wolfe Research Durgesh Chopra - Evercore ISI Andrew Weisel - Scotiabank Anthony Crowdell - Mizuho ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 | IR ...

Financial Data and Key Metrics Changes - The company reported full year 2022 earnings of $4.45 per share, an increase of $0.34 per share or 8.3% compared to 2021 [6][27] - Net cash provided by operating activities increased by $28 million, with total capital expenditures and asset acquisitions at $2.7 billion in 2022, a $324 million increase compared to 2021 [34] Business Line Data and Key Metrics Changes - Utility operations grew earnings by $0.19 compared to 2021, driven by rate base growth contributing $0.41 to earnings [28] - Earnings from the Energy Infrastructure segment improved by $0.14 in 2022, mainly due to production tax credits from stronger wind production [32] - Earnings at the Corporate and Other segment decreased by $0.06, primarily due to rabbi trust performance and lower gains from the clean energy fund [33] Market Data and Key Metrics Changes - Retail electric deliveries in Wisconsin, excluding iron ore mines, were up 0.1% on a weather-normalized basis, with small commercial and industrial sales increasing by 0.5% [30] - The unemployment rate in Wisconsin dropped to 3.2% in December 2022, well below the national average, indicating a strong regional economy [14] Company Strategy and Development Direction - The company announced a five-year investment plan totaling $20.1 billion focused on efficiency, sustainability, and growth, expecting to drive compound earnings growth of 6.5% to 7% annually from 2023 to 2027 [10] - A commitment to renewable projects is a key part of the plan, including the acquisition of an 80% ownership interest in the Samson Solar Energy Center [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on earnings guidance for 2023, projecting earnings in the range of $4.58 to $4.62 per share, representing a growth of 6.7% from the previous year [25] - The company plans to fund its capital plan without issuing equity and has raised its quarterly cash dividend by 7.2%, marking the 20th consecutive year of dividend increases [25] Other Important Information - The company is working on a pilot project for long-duration battery storage, which is expected to be one of the first of its kind on the U.S. electric grid [12] - The company is also making progress on zero carbon projects, including the Thunderhead Wind Farm in Nebraska and the acquisition of Sapphire Sky in Illinois [23] Q&A Session Summary Question: Transmission CapEx with ATC - Management discussed the cadence of current increases and potential opportunities in Tranche 2 of MISO's planning process, indicating optimism for greater investment opportunities [38][39] Question: Current 5-Year Plan and Capital Deployment - Management indicated that the remaining capital would likely be deployed in solar and wind projects, with a focus on diversification [42][43] Question: Wisconsin Rate Case and Reopener - Management clarified that the limited reopener relates to investment costs of several projects coming into service in 2023, primarily renewable projects [47][48] Question: Illinois Rate Case and QIP Rider - Management confirmed that they do not intend to extend the QIP rider and are looking forward to traditional rate-making procedures for capital investments [64][65] Question: Samson 1 Acquisition and Market Interest - Management expressed confidence in the Samson 1 investment, highlighting the lack of construction risk and the quality of the project [67] Question: Solar Build-Out and Panel Availability - Management provided updates on the availability of solar panels, indicating that a significant portion is already in the U.S. and awaiting clearance [72] Question: Hydrogen Blending Project Update - Management reported encouraging initial results from the hydrogen blending project, with a full report expected soon [87]