Company: WELPM
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000107815-25-000105
Chunk: 23

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1
Chunk 23
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202420232022(in millions)AmountPercentAmountPercentAmountPercentElectricWisconsin$3,345.0 94.6 %$3,338.6 94.0 %$3,172.8 91.7 %FERC – Wholesale191.2 5.4 %214.9 6.0 %289.0 8.3 %Total3,536.2 100.0 %3,553.5 100.0 %3,461.8 100.0 %Natural Gas – Wisconsin443.7 100.0 %491.5 100.0 %608.5 100.0 %Total utility operating revenues$3,979.9 $4,045.0 $4,070.3 

Retail Rates

The PSCW has general supervisory and regulatory powers over public utilities in its jurisdiction including, but not limited to, approval of retail utility rates and standards of service, security issuances, mergers, affiliate transactions, location and construction of electric generating units and natural gas facilities, and certain other additions and extensions to utility facilities. 

Historically, retail rates approved by the PSCW have been designed to provide utilities the opportunity to generate revenues to recover all prudently-incurred costs, along with a return on investment sufficient to pay interest on debt and provide a reasonable ROE. Rates charged to customers vary according to customer class and rate jurisdiction. We are subject to an earnings sharing mechanism in which a portion of our earnings are required to be refunded to customers if we earn above our authorized ROE. See Note 24, Regulatory Environment, for more information on our earnings sharing mechanism. The table below reflects our approved ROE and capital structure during 2024.

Regulated Retail RatesRegulatory CommissionAuthorized ROEAverage Common Equity ComponentElectric, natural gas, and steamPSCW9.80%53.0%

In addition to amounts collected from customers through approved base rates, we have certain recovery mechanisms in place that allow us to recover or refund prudently incurred costs that differ from those approved in base rates.

Embedded within our electric rates is an amount to recover fuel and purchased power costs. The Wisconsin retail fuel rules require us to defer, for subsequent rate recovery or refund, any under-collection or over-collection of fuel and purchased power costs that are outside of our symmetrical fuel cost tolerance, which the PSCW typically sets at plus