WEC Energy(US:WEC)2023-02-02 22:52Financial 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]