WEC Energy(US:WEC)2026-02-20 15:58Revenue and Customer Growth - In 2025, retail revenues accounted for 92.3% of total electric operating revenues, while wholesale revenues accounted for 1.9% and resale revenues for 4.8%[39]. - The total electric customers at the end of 2025 reached 1,696.6 thousand, an increase from 1,682.7 thousand in 2024 and 1,669.3 thousand in 2023[46]. - Total electric operating revenues for 2025 reached $5,547.4 million, a 12.7% increase from $4,921.6 million in 2024[138]. - Wisconsin accounted for 90.0% of total electric revenues in 2025, with $4,992.8 million reported[138]. - Natural gas revenues for 2025 totaled $3,959.2 million, up from $3,461.1 million in 2024, marking an increase of 14.4%[138]. - The total number of customers at the end of 2025 was 1,545.0 thousand, an increase from 1,530.9 thousand in 2024[78]. - As of December 31, 2025, the total number of customers reached 444.1 thousand, an increase of 3.5% from 2024[102]. Electric Generation and Supply - The electric generation supply mix for 2025 included 30.5% from coal, 24.1% from combined cycle natural gas, and 8.4% from renewables[49]. - The company owns 8,375 MWs of generation capacity, including natural gas-fired plants, coal-fired plants, renewable generation, and battery energy storage systems[50]. - The company plans to retire approximately 900 MWs of additional coal-fired generation by the end of 2031, contributing to its goal of achieving net carbon neutrality by 2050[54]. - The company has received approval to acquire and construct 955 MWs of additional solar-powered generation and 411 MWs of battery storage[60]. - The company anticipates electric demand growth from large-scale data centers and plans significant infrastructure investments in new natural gas-fired plants, wind, solar, and battery projects[51]. - The electric utility sales are impacted by seasonal factors, with higher sales during summer months due to increased cooling demand[109]. - Seasonal variations affect electricity production, with higher output typically seen in the first and fourth quarters for wind facilities[130]. Capacity and Planning - The PSCW requires a planning reserve margin of 14.5% for long-term planning, with MISO's short-term reserve margins for 2025-2026 set at 15.7% for summer and 25.3% for fall[63][64]. - The company anticipates having adequate capacity to meet MISO's planning reserve margin requirements for both Wisconsin and Michigan jurisdictions in the upcoming planning year[65]. - MISO's annual capacity auction ensures sufficient generation capacity, with the company managing its electric generation portfolio to minimize exposure[151]. Natural Gas Operations - The forecasted design peak-day throughput for Wisconsin natural gas utilities is 39.9 million therms for the 2025-2026 heating season, with a peak daily send-out of 24.2 million therms recorded on January 20, 2025[83]. - The Illinois utilities' forecasted design peak-day throughput is 25.1 million therms for the 2025-2026 heating season, with a peak daily send-out of 19.4 million therms on January 21, 2025[94]. - The forecasted design peak-day throughput for the other states utilities is 9.5 million therms for the 2025-2026 heating season[105]. - The company has PSCW approval to hedge up to 60% of planned winter natural gas demand and up to 15% of planned summer demand[86]. - The Illinois utilities hedge between 25% and 50% of planned natural gas purchases, targeting 37.5%[96]. - MGU has MPSC approval to hedge up to 20% of its planned annual purchases using NYMEX financial instruments[107]. - The company has contracts in place for 2.1 Bcf of renewable natural gas (RNG) to reduce methane emissions[116]. - The construction of additional LNG facilities is proposed as part of the 2026-2030 capital plan, which would provide approximately four Bcf of natural gas supply[84]. Environmental and Regulatory Compliance - As of the end of 2025, the electric generation fleet has achieved a 53% reduction in carbon emissions from the 2005 baseline[53]. - Significant costs are associated with environmental compliance, particularly related to coal-fired generating facilities, which may increase due to future regulations[163]. - The company operates under various regulatory frameworks, including the PUHCA 2005, impacting its financial operations[135]. - Compliance with natural gas regulations is overseen by the FERC and PHMSA, impacting operational costs and service delivery[159]. - The company is monitoring proposed rulemaking by PHMSA that could significantly affect its natural gas utilities[156]. Financial and Operational Strategy - The company has power purchase commitments of 1,133 MWs per year from 2026 to 2029, including a long-term PPA for electricity generated by Point Beach[73]. - Average fuel and purchased power costs per MWh for coal increased from $25.80 in 2023 to $27.54 in 2025, while natural gas combined cycle costs decreased from $30.41 in 2023 to $26.49 in 2025[67]. - For 2026, 51% of the total projected coal requirements of 8.9 million tons are contracted under fixed-price contracts[69]. - The anticipated capital expenditures for compliance with government regulations over the next three years are included in the financial condition analysis[161]. Human Capital Management - The company has a total of 7,151 employees, with 4,190 represented under union agreements as of December 31, 2025[169]. - The Board of Directors oversees human capital management, including corporate culture and succession planning[167]. - Employee training and development programs are a priority, focusing on both technical and leadership skills to support career advancement[174]. - The company provides competitive wages and benefits, including a 401(k) savings plan with employer match and healthcare benefits[170]. - The company is committed to a "Target Zero" safety strategy, aiming for zero incidents, accidents, and injuries[172]. - The company has a comprehensive engagement strategy, including training programs and community partnerships to support workforce contributions[171]. Return on Equity and Financial Metrics - The return on equity for the ERGS units is calculated using a 12.7% ROE, with an equity ratio of 55%[124]. - The average authorized Return on Equity (ROE) for electric utilities in 2025 is set at 9.80%[143].