Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 194

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 194
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 requested increases in natural gas rates were driven by our ongoing capital investments in reliability and safety projects, including LNG storage facilities, as well as the impacts from higher inflation and increased interest rates.

On December 19, 2024, the PSCW issued a final written order approving electric, natural gas, and steam base rate increases, effective January 1, 2025 and 2026, as applicable. The final written order reflected the following:

| 2025 rate increase                                   |     |       |       |         |   |     |      |
|:-----------------------------------------------------|:----|:------|------:|:--------|:--|:----|:-----|
| Electric(1)                                          |     | $     | 144.0 | million | / |     | 4.2% |
| Gas                                                  |     | $     |  41.3 | million | / |     | 7.1% |
| Steam                                                |     | $     |   1.5 | million | / |     | 5.0% |
| 2026 rate increase(2)                                |     |       |       |         |   |     |      |
| Electric(1)                                          |     | $     | 169.5 | million | / |     | 4.5% |
| Gas                                                  |     | $     |  29.8 | million | / |     | 4.5% |
| ROE                                                  |     | 9.8%  |       |         |   |     |      |
| Common equity component average on a financial basis |     | 53.0% |       |         |   |     |      |

(1) Amounts reflect the impact to our Wisconsin retail electric operations and include the incremental decrease resulting from updated fuel costs.

(2) The 2026 rate increases are incremental to the previously authorized revenue plus the approved rate increases for 2025.

Effective January 1, 2025, we were required to implement a new earnings sharing mechanism, under which, if we earn above our authorized ROE: (i) we retain 100.0% of earnings for the first 15 basis points above the authorized ROE; (ii) 50.0% of the next 25 basis points is required to be refunded to ratepayers; and (iii) 100.0% of any remaining excess earnings is required to be refunded to ratepayers.