Company: WELPM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000107815-25-000207
Chunk: 16

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 16
---
 with our December 2024 PSCW rate order, in 2025, we began amortizing our pension and OPEB costs that were previously deferred under escrow accounting. During the nine months ended September 30, 2025, we amortized $15.7 million of the previously deferred non-service costs as we are now collecting these costs in rates. This decrease in other income, net was partially offset by an $18.7 million positive impact from higher AFUDC-Equity due to continued capital investment.

Interest Expense

Interest expense at the utility segment increased $2.8 million during the nine months ended September 30, 2025, compared with the same period in 2024, driven by the impact of our long-term debt issuances in May and September 2024. This increase was partially offset by higher AFUDC-Debt due to continued capital investment and lower interest expense on finance lease liabilities, primarily related to the We Power leases, as finance lease liabilities decrease each year as payments are made. Lower average short-term debt balances and lower average short-term debt interest rates, also partially offset the increase in interest expense.

Income Tax Expense

Income tax expense at the utility segment decreased $14.7 million during the nine months ended September 30, 2025, compared with the same period in 2024. This decrease was driven by:

•A $16.8 million increase in PTCs; 

•A $16.4 million increase in the benefit from the flow through of tax repairs in connection with our rate order approved by the PSCW, effective January 1, 2025; 

•A $5.7 million increase in the income tax benefits associated with AFUDC-Equity, driven by continued capital investment; and

•A $1.6 million increase in the deferred tax benefits associated with the Tax Legislation. See Note 12, Income Taxes, for more information.

Partially offsetting these decreases in income tax expense was higher pre-tax income.

09/30/2025 Form 10-Q40Wisconsin Electric Power Company

LIQUIDITY AND CAPITAL RESOURCES

Overview

We expect to maintain adequate liquidity to meet our cash requirements for the operation of our business and implementation of our corporate strategy through the internal generation of cash from operations and access to the capital markets.

Cash Flows

The following table summarizes our cash flows during the nine months ended September 30:

(in millions)20252024Change in 2025