WEC Energy(WEC)2025-02-21 16:23Revenue and Customer Growth - In 2024, retail revenues accounted for 93.4% of total electric operating revenues, while wholesale revenues accounted for 2.1% and resale revenues accounted for 3.6%[42] - The total number of electric customers at the end of 2024 was 1,682.7 thousand, an increase from 1,669.3 thousand in 2023, representing a growth of 0.8%[48] - The total number of customers increased to 1,530.9 thousand in 2024, up from 1,520.0 thousand in 2023[77] - The Illinois segment serves 1,059.9 thousand customers at the end of 2024, with residential customers increasing to 929.0 thousand from 922.9 thousand in 2023[90] - The other states segment serves 440.3 thousand customers at the end of 2024, with residential customers increasing to 383.7 thousand from 379.3 thousand in 2023[104] Environmental Initiatives and Carbon Emissions - The company has achieved a 56% reduction in carbon emissions from its electric generation fleet from a 2005 baseline as of the end of 2024, aiming for a 60% reduction by the end of 2025[53] - The company aims to achieve a 60% reduction in carbon emissions from its electric generation fleet by the end of 2025 and an 80% reduction by the end of 2030, both from a 2005 baseline[197] - The company plans to eliminate coal as an energy source by the end of 2032, transitioning to natural gas as a backup fuel[55] - The company has implemented co-firing with natural gas at its coal-fired units as part of its carbon emission reduction goals[123] - The company aims to achieve net-zero methane emissions across its natural gas distribution operations by the end of 2030, supported by contracts for 2.1 Bcf of renewable natural gas (RNG)[117] Renewable Energy Projects - The company plans to retire approximately 1,200 MWs of additional coal-fired generation by the end of 2031, including the planned retirements of OCPP Units 7 and 8[56] - The construction of the solar portion of the Paris project, with a capacity of 180 MWs, was completed in December 2024, and battery storage of 99 MWs is expected to be completed in 2025[60] - The company filed a request to acquire and construct two wind-powered electric generating facilities, Badger Hollow Wind and Whitetail, which will collectively add 160 MWs of wind generation upon completion[59] - The company has filed requests to acquire and construct 868 MWs of additional renewable generation and 244 MWs of battery storage in Wisconsin[61] - If approved, the construction of the Good Oak and Gristmill solar facilities will collectively add 148 MWs of solar generation, expected to be completed in 2028[61] Financial Performance and Revenue - Total utility operating revenues for 2024 amounted to 8,702.8 million in 2023 and 4,496.0 million, representing 91.3% of total electric revenues[140] - Natural gas operating revenues in Wisconsin for 2024 were $1,405.4 million, accounting for 40.6% of total natural gas revenues[140] - The company has power purchase commitments of 1,133 MWs per year for 2025 through 2029 to meet anticipated electric energy supply needs[72] Regulatory and Compliance Issues - The company is subject to various state regulatory commissions, which oversee retail utility rates and standards of service[141] - The Illinois Commerce Commission (ICC) disallowed certain previously incurred capital costs, resulting in impairment losses for the company in Q4 2023[182] - The expiration of the QIP rider has subjected the recovery of necessary infrastructure improvement costs to regulatory lag, impacting financial results[183] - Future recovery of regulatory assets is uncertain and subject to review and approval by regulators, which could adversely impact cash flows[181] Operational Challenges and Risks - The company’s operations are subject to risks from the reliability of its electric generation and distribution facilities, which could lead to substantial financial losses due to equipment failures or severe weather events[211] - Fluctuations in energy sales are influenced by customer growth, economic conditions, and weather, which could adversely affect the company’s results of operations and cash flows[215] - Supply chain disruptions and inflation could adversely affect the availability of critical materials and resources necessary for the company’s operations and corporate strategy[222] - Public health crises could adversely impact the company’s business functions, financial condition, and access to capital markets, potentially leading to decreased revenues and increased bad debt expenses[208] Employee and Safety Initiatives - As of December 31, 2024, the total number of employees across the company is 7,017, with 4,128 represented under union agreements[172] - The company has a commitment to zero incidents under its "Target Zero" safety program, focusing on employee safety and health[175] - The company emphasizes competitive wages and benefits to attract and retain talent, including a 401(k) savings plan and healthcare benefits[173] Future Investments and Capital Expenditures - Significant capital expenditures are required for investments in electric generating facilities, distribution infrastructure, and renewable energy projects, with a goal of being net carbon neutral by 2050[225] - Anticipated capital expenditures for environmental compliance over the next three years are included in the financial estimates[167] - The company has significantly reduced its consolidated federal and state income tax liabilities through tax credits, net operating losses, and charitable contribution deductions, which could be adversely affected by any reduction or disallowance of these tax benefits[201] Market and Economic Factors - New tariffs and changes in U.S. trade policy could exacerbate global supply chain disruptions and inflation, adversely affecting business operations and financial condition[224] - The company’s corporate strategy may be influenced by changing expectations from customers and regulators regarding sustainability and energy needs, which could impact its reputation and financial outcomes[220] - Equipment, materials, and resource prices have increased due to supply chain disruptions and inflation, potentially impacting financial condition and operations[223]