WEC Energy(WEC)2024-02-01 23:54Financial Data and Key Metrics Changes - The company reported full year 2023 adjusted earnings of $4.63 per share, excluding a one-time noncash charge of $0.41 per share [8][31] - The adjusted earnings per share improved by $0.18 compared to the previous year [37] - The projected earnings for 2024 are expected to be in the range of $4.80 to $4.90 per share, reflecting a growth of approximately 5.4% year-over-year [15][41] Business Line Data and Key Metrics Changes - Utility operations experienced a negative impact of $0.24 per share due to weather conditions, with January, February, and December 2023 being the warmest on record [32] - Rate base growth contributed positively by $0.75 per share year-over-year, driven by base rate increases in Wisconsin and Minnesota utilities [33] - Earnings from energy infrastructure segments improved by $0.04 compared to 2022, mainly due to an increase in production tax credits [37] Market Data and Key Metrics Changes - Retail electric deliveries in Wisconsin, excluding the iron ore mine, were down 1% in 2023, primarily due to a 3.3% decrease in large commercial and industrial sales [35] - The unemployment rate in Wisconsin stands at 3.3%, which is below the national average, indicating a strong regional economy [17] Company Strategy and Development Direction - The company is increasing its five-year capital investment plan by $300 million, bringing the total to $23.7 billion, focusing on electric distribution and infrastructure projects [12][14] - The company plans to continue investments in renewable energy, with a significant solar project in the pipeline [14][25] - The regulated electric business is expected to grow larger as a percentage of the total enterprise over the next five years, driven by economic development and decarbonization efforts [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities despite the regulatory challenges in Illinois, emphasizing the importance of safety modernization programs [49][63] - The company anticipates that the regulatory environment in Illinois will evolve positively, with ongoing discussions expected to yield reasonable outcomes [63] - Management highlighted the robust economic developments in Wisconsin, which support the need for increased infrastructure investments [18][60] Other Important Information - The quarterly dividend was raised to $0.835 per share, marking the 21st consecutive year of dividend increases [29] - The company achieved a 54% reduction in carbon emissions from electric generation compared to 2005, progressing towards an 80% reduction target by 2030 [26] Q&A Session Summary Question: Guidance for 2024 and EPS growth - Management indicated that the 2024 guidance of $4.80 to $4.90 per share reflects a tight EPS growth range, primarily due to capital expenditure timing [47][49] Question: Impact of the $800 million reduction in Illinois - The reduction is largely due to the cessation of work related to the safety modernization program, with a focus on reallocating capital to infrastructure projects [50][51] Question: Future of the S&P program and capital allocation - Management noted that if the S&P program were to resume, some capital currently on pause could be reallocated, but it would take time to ramp up operations [56][58] Question: Changes in Wisconsin commission and impact on rate cases - Management expressed confidence that the turnover in the commission would not impact the timing of upcoming rate cases [88] Question: Renewable energy commitment and political changes - Management reassured that political changes would not affect the company's commitment to renewable energy investments [90]