WEC Energy(WEC)2024-10-31 22:20Financial Data and Key Metrics Changes - The company reported third quarter 2024 adjusted earnings of $0.82 per share, excluding a $0.06 per share charge related to disallowed capital expenditures in Illinois, which is a decrease of $0.18 per share quarter-over-quarter [7][23] - The adjusted earnings guidance for 2024 remains reaffirmed at a range of $4.80 to $4.90 per share, assuming normal weather conditions for the remainder of the year [8][30] Business Line Data and Key Metrics Changes - Adjusted earnings from utility operations decreased by $0.18 compared to 2023, primarily due to Illinois rate design changes, higher operating and maintenance costs, and increased depreciation and interest expenses [25] - Earnings from the Energy Infrastructure segment improved to $0.06 in Q3 2024 compared to Q3 2023, driven by production tax credits and increased production from renewable generation facilities [29] Market Data and Key Metrics Changes - Retail electric deliveries in Wisconsin, excluding the iron ore mine, increased by 0.4% quarter-over-quarter, with slight increases in residential and small commercial and industrial segments compared to Q3 last year [27] - The unemployment rate in Wisconsin stands at 2.9%, below the national average, indicating a strong local economy [9] Company Strategy and Development Direction - The company plans to invest $28 billion over the next five years, marking the largest capital plan in its history, with an 18% increase from the previous plan [12] - The new capital plan supports an additional 1,800 megawatts of demand, with an average asset-based growth rate projected at 8.8% per year [13] - Investments will focus on renewable energy and natural gas generation, with plans to invest $9.1 billion in solar, wind, and battery storage, significantly increasing carbon-free generation capacity [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the 2024 adjusted earnings guidance, citing favorable weather conditions and tailwinds in Q4 [31][32] - The company is actively engaged in regulatory processes in Wisconsin, Michigan, and Illinois, with expectations for decisions that could positively impact future earnings [21][22] Other Important Information - The company plans to acquire a 90% interest in Hardin Solar III Energy Park in Ohio, expecting to invest approximately $410 million for 250 megawatts of renewable energy [19][20] - The company anticipates that 60% of its cash needs over the next five years will be funded through cash from operations, with additional funding from debt and common equity [34][35] Q&A Session Summary Question: Update on Point Beach PPA and alternatives - Management is in constructive discussions with NextEra regarding the Point Beach PPA, making good progress [42] Question: CapEx reduction in the infrastructure segment - The reduction is due to a focus on economic development in Wisconsin and a shift in capital allocation [44] Question: Wisconsin rate case and settlement - The company is far along in the Wisconsin rate case, with a decision expected soon, and is comfortable with the commission's process [50][51] Question: ATC ROE and guidance - The company is maintaining its guidance despite the upcoming recognition of a higher ROE due to timing of expenses [53] Question: Load growth and CapEx implications - The company expects a significant increase in load growth, with a forecast of 1,800 megawatts of incremental load [66] Question: Rate increase outlook - Rate increases are expected to align with inflation, driven by economic development rather than solely on retail customers [91]