Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 149

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 149
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 Company |     | B-41 |     | 2024 Annual Financial Statements |

A rollforward of the allowance for credit losses is included below:

|                                                                    | (in millions) | Year Ended December 31 |   2024 |     |   |  2023 |     |   |  2022 |
|:-------------------------------------------------------------------|:--------------|:-----------------------|-------:|:----|:--|------:|:----|:--|------:|
| Balance at January 1                                               |               | $                      |   44.5 |     | $ |  49.7 |     | $ |  51.4 |
| Provision for credit losses                                        |               |                        |   32.8 |     |   |  23.8 |     |   |  27.3 |
| Provision for credit losses deferred for future recovery or refund |               |                        |   46.3 |     |   |  45.7 |     |   |  34.0 |
| Write-offs charged against the allowance                           |               |                        | -102.5 |     |   | -94.1 |     |   | -83.4 |
| Recoveries of amounts previously written off                       |               |                        |   25.8 |     |   |  19.4 |     |   |  20.4 |
| Balance at December 31                                             |               | $                      |   46.9 |     | $ |  44.5 |     | $ |  49.7 |

The allowance for credit losses increased during the year ended December 31, 2024, primarily related to an increase in reserve percentages associated with the higher write-offs we saw during the year.

The allowance for credit losses decreased during the year ended December 31, 2023, primarily related to lower customer energy costs (driven by the warmer weather during the fourth quarter of 2023 when compared to the same quarter in 2022 and lower natural gas prices), which contributed to a reduction in past due accounts receivable balances and a related decrease in the allowance for credit losses. Customer write-offs also contributed to the decrease in the allowance for credit losses. After a customer is disconnected for a period of time without payment on their account, we will write off that customer balance.

The allowance for credit losses decreased during the year ended December 31, 2022, driven by customer write-offs