Financial Performance - In Q1 2025, net income attributed to common shareholders increased by 101.9millionto724.2 million compared to Q1 2024, with diluted EPS rising to 2.27from1.97[232] - The Wisconsin segment's net income attributed to common shareholders was 359.9millioninQ12025,a35.1266.4 million in Q1 2024, driven by higher margins from rate orders and retail sales volumes[239] - Operating revenues for Q1 2025 increased to 788.3million,up122.3 million or 18.4% from 666.0millioninQ12024[254]−Netincomeattributedtocommonshareholdersdecreasedto178.1 million, down 9.4millionor5.0187.5 million in Q1 2024[254] - The Illinois segment's net income attributed to common shareholders was 178.1millioninQ12025,a5.0187.5 million in Q1 2024, attributed to higher operating expenses[252] - The other states segment's net income attributed to common shareholders was 43.1million,representinganincreaseof4.5 million or 11.7% over Q1 2024[260] Revenue and Sales Volumes - Operating revenues for the Wisconsin segment increased by 281.1million,reaching2,059.9 million in Q1 2025 compared to 1,778.8millioninQ12024[240]−Electricsalesvolumesincreasedby180.7MWh(inthousands),totaling8,868.5MWhinQ12025,comparedto8,687.8MWhinQ12024[241]−Naturalgassalesvolumesroseby175.2therms(inmillions),reaching1,309.0thermsinQ12025,comparedto1,133.8thermsinQ12024[241]−Naturalgassalesvolumesincreasedto889.8milliontherms,up108.0millionthermsor13.89.1 billion in regulated renewable energy from 2025 to 2029, including 2,900 MWs of utility-scale solar, 900 MWs of wind, and 565 MWs of battery storage[212] - Capital expenditures totaled 701.1millioninQ12025,anincreaseof256.6 million compared to Q1 2024, primarily due to renewable energy projects[290] - Estimated capital expenditures for 2025 are projected at 5,138.1million,withatotalof5,402.5 million expected for 2027[298] - The company plans to invest approximately 542millionintheParissolarproject,whichincludes180MWsofsolargenerationand99MWsofbatterystorage,withcompletionexpectedin2025[300]−TheestimatedcostfortheDariensolarprojectisapproximately567 million, with 225 MWs of solar generation and 68 MWs of battery storage, expected to be completed in 2026[300] - A total of 940millionisproposedforadditionalLNGfacilitiesinWisconsintoenhancenaturalgassupplyduringpeakwinterdemand[301]−Thecompanyplanstobuildnaturalgas−firedcombustionturbinescapableofproducingapproximately675MWsatanestimatedcostof960 million[302] Environmental and Regulatory Initiatives - The company aims to reduce carbon emissions from its electric generation fleet by 60% by the end of 2025 and by 80% by the end of 2030, using 2005 as a baseline[209] - The company has retired nearly 2,500 MWs of fossil-fueled generation since 2018 and plans to retire an additional 1,200 MWs of coal-fired generation by the end of 2031[211] - The company is targeting net-zero methane emissions from its natural gas distribution operations by the end of 2030, with contracts in place for 2.1 Bcf of renewable natural gas[216] - The company has initiated a pilot program to test long-duration energy storage technology, expected to continue through 2025[217] Tax and Financial Management - The company expects its 2025 annual effective tax rate to be between 6.5% and 7.5%[235] - Interest expense in the Wisconsin segment increased by 4.0millioninQ12025,drivenbylong−termdebtissuancein2024[249]−IncometaxexpenseintheWisconsinsegmentroseby7.1 million in Q1 2025, reflecting higher pre-tax income[250] - Interest expense for the Illinois segment decreased by 1.8millionduetoloweraverageshort−termdebtbalances[258]−IncometaxexpensefortheIllinoissegmentdecreasedby2.9 million, driven by a decrease in pre-tax income[259] Market and Economic Conditions - The company is monitoring inflation and supply chain disruptions to minimize their impact on costs, including medical plans, fuel, and construction costs[361] - Changes in U.S. trade policy, including tariffs, could increase material costs and disrupt supply chains, adversely affecting infrastructure projects and capital plans[360] - The company believes the IRA will help reduce costs associated with investing in projects that support emission reductions and provide affordable, reliable, and clean energy[349] - The pause in fund disbursement under the Infrastructure Investment and Jobs Act and IRA could disrupt ongoing infrastructure projects and lead to potential project delays and cancellations[350] - The company is exposed to market risks due to ongoing regional conflicts, which may impact the global economy, supply chains, and fuel prices[359] Regulatory Developments - The Illinois Commerce Commission (ICC) ordered PGL to replace all cast and ductile iron pipes under 36 inches in diameter by January 1, 2035, with potential civil penalties for non-compliance[334] - The ICC approved PGL's use of the Qualifying Infrastructure Plant (QIP) rider for cost recovery, with pending reconciliations from 2017 through 2023 totaling approximately 2.8billion[333]−InMarch2025,Moody′schangedtheratingoutlookforPGLtostablefromnegative,affirmingitsAa3seniorsecuredratingandP−1shorttermratingforcommercialpaper[325]−TheDepartmentofCommerce(DOC)announcedfinalaffirmativedeterminationsinitsAD/CVDinvestigations,increasingpreliminarytariffratesonsolarpanelsfromSoutheastAsiancountries,impactingcostsandavailability[345]−ThecompanyexpectstocontinueevaluatingtheimpactoftheincreasedtariffratesonitssolarprojectsfollowingtheDOC′sfinaldeterminations[345]ShareholderandEquityInformation−Thecurrentquarterlydividendrateis0.8925 per share, equating to an annual dividend of 3.57pershare[309]−AsofMarch31,2025,commonshareholders′equitywas12,975.8 million, with a total capitalization of $33,225.0 million, resulting in a debt to total capitalization ratio of 60.9%[320] - The company maintained compliance with all financial covenants related to outstanding short-term and long-term debt as of March 31, 2025[322]
WEC Energy(WEC)2025-05-06 21:37