Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 30

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 30
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 measuring WEC Energy Group's cash flow performance. WEC Energy Group invests the cash received from asset sales into the business, incurring operation and maintenance (“O&M”) costs. Because the O&M costs are recorded in “net cash provided by operating activities” on the cash flow statement, for purposes of measuring cash flow performance, the Compensation Committee determined that the cash received to fund those costs should also be treated as cash from operations. Pursuant to GAAP, proceeds from asset sales are recorded as part of net cash used in/provided by investing activities. The Compensation Committee believes that basing the cash flow performance goals on Adjusted Cash From Operations provides a more accurate measurement of the cash generated by WEC Energy Group’s operations that is available for capital investment, which is WEC Energy Group’s and the Company’s primary driver for earnings growth, and to fund O&M. Adjusted Cash From Operations is not a measure of financial performance under GAAP, and our calculation may differ from similarly titled measures used by other companies or securities rating agencies.

In January 2024, the Compensation Committee approved the performance goals under the STPP for the Wisconsin utilities' net income as set forth in the chart below ($ in millions).

| Net Income |     | Payout Level |
| $885.8     |     | 25%          |
| $888.3     |     | 50%          |
| $890.8     |     | 100%         |
| $893.9     |     | 135%         |
| $897.9     |     | 200%         |

2024 Financial Performance under the STPP. In January 2025, the Compensation Committee reviewed actual performance for 2024 against the financial, operational and social performance goals established under the STPP, subject to final audit.

WEC Energy Group’s 2024 financial performance satisfied the maximum payout level established for earnings per share and cash flow. WEC Energy Group’s earnings per share on a GAAP basis were $4.83 for 2024, which includes a $0.06 per share charge to earnings related to certain capital expenditures under The Peoples Gas Light and Coke Company's ("PGL") Qualifying Infrastructure Plant ("QIP") rider that were disallowed by the Illinois Commerce Commission (the “ICC”) as part of the 2016 QIP reconciliation. Excluding this charge, WEC Energy Group’s adjusted earnings per share were $4.88. PGL, an Illinois utility subsidiary of WEC