Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 101

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 101
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. The significant factors impacting the increase in other operating expenses were:

• An $81.5 million increase in transmission expense as approved in the PSCW's 2023 rate order, effective January 1, 2023. See the notes under the other operation and maintenance table above for more information. This amount is net of a deferral of $5.3 million approved by the PSCW in June 2023, retroactive to December 1, 2022, in response to a FERC order eliminating reactive power compensation, as discussed above.

• A $45.3 million increase in depreciation and amortization, driven by assets being placed into service as we continue to execute on our capital plan.

• A $33.3 million increase in other operation and maintenance expense related to the We Power leases, as discussed in the notes under the other operation and maintenance table above.

• A $27.4 million increase in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above.

• A $23.4 million increase in other operating and maintenance related to our power plants, driven by increases to certain plant-related regulatory assets in 2022 as a result of the December 2022 Wisconsin rate order as well as operating costs associated with Whitewater, which we purchased in January 2023. These increases were partially offset by lower severance expense during 2023.

• A $5.6 million increase in expense related to the earnings sharing mechanism we have in place, as discussed in the notes under the other operation and maintenance table above.

These increases in other operating expenses were partially offset by:

• A $21.6 million increase in pre-tax gains on the sale of land, primarily at the site of our former Pleasant Prairie power plant in 2023.

• A $19.8 million decrease in expense primarily related to lower commitments made in 2023 to fund our charitable foundation.

• A $10.3 million decrease in property and revenue taxes during 2023, compared with 2022.

• A $5.5 million decrease in expense related to environmental remediation and related studies during 2023, compared with 2022.

• A $4.0 million decrease in expenses associated with the settlement of legal claims during 2023, compared with 2022.

• A $3.9 million decrease in benefit costs, driven by lower stock-based compensation, partially offset by an increase in deferred compensation costs during 2023, compared