Company: WELPM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000107815-25-000204
Chunk: 55

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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TRs, are categorized in Level 3 due to the significance of unobservable or internally-developed inputs. Our FTRs are valued using MISO auction prices. The following tables summarize our financial assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy:June 30, 2025(in millions)Level 1Level 2Level 3TotalDerivative assets    Natural gas contracts$4.1 $1.7 $— $5.8 FTRs— — 9.9 9.9 Total derivative assets$4.1 $1.7 $9.9 $15.7 Derivative liabilitiesNatural gas contracts$2.5 $1.5 $— $4.0 

06/30/2025 Form 10-Q15Wisconsin Electric Power Company

December 31, 2024(in millions)Level 1Level 2Level 3TotalDerivative assets    Natural gas contracts$7.0 $3.5 $— $10.5 FTRs— — 2.9 2.9 Total derivative assets$7.0 $3.5 $2.9 $13.4 Derivative liabilitiesNatural gas contracts$0.6 $0.5 $— $1.1 The derivative assets and liabilities listed in the tables above include options, futures, physical commodity contracts, and other instruments used to manage market risks related to changes in commodity prices. They also include FTRs, which are used to manage electric transmission congestion costs in the MISO Energy and Operating Reserves Markets.The following table summarizes the changes to derivatives classified as Level 3 in the fair value hierarchy:Three Months Ended June 30Six Months Ended June 30(in millions)2025202420252024Balance at the beginning of the period$1.1 $1.0 $2.9 $2.5 Purchases12.1 12.1 12.1 12.1 Settlements(3.3)(3.4)(5.1)(4.9)Balance at the end of the period$9.9 $9.7 $9.9 $9.7 Fair Value of Financial InstrumentsThe following table shows the financial instruments included on our balance sheets that were not recorded at