Company: WELPM
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000107815-25-000184
Chunk: 10

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 10
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 liabilities decrease each year as payments are made, also partially offset the increase in interest expense.

Income Tax Expense

Income tax expense at the utility segment decreased $0.5 million during the first quarter of 2025, compared with the same quarter in 2024, driven by a $7.9 million increase in PTCs and a $6.3 million positive impact related to the flow through of tax repairs in connection with our rate order approved by the PSCW, effective January 1, 2025. These positive income tax impacts were partially offset by higher pre-tax income.

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 three months ended March 31:

(in millions)20252024Change in 2025 Over 2024Cash provided by (used in):Operating activities$391.7 $369.4 $22.3 Investing activities(390.6)(197.3)(193.3)Financing activities64.0 (164.9)228.9 

03/31/2025 Form 10-Q32Wisconsin Electric Power Company

Operating Activities

Net cash provided by operating activities increased $22.3 million during the first quarter of 2025, compared with the same quarter in 2024, driven by:

•A $33.3 million increase in cash driven by collateral received from counterparties during the first quarter of 2025, compared with collateral paid to counterparties during the same quarter in 2024, as well as realized gains on derivative instruments recognized during the first quarter of 2025, compared with realized losses recognized during the same quarter in 2024.

•A $33.0 million increase in cash from higher overall collections from customers during the first quarter of 2025, compared with the same quarter in 2024. This increase was driven by the impact of our rate order approved by the PSCW, effective January 1, 2025, a higher per-unit cost of natural gas, and higher sales volumes from colder winter weather during the first quarter of 2025, compared with the same quarter in 2024.

These increases in net cash provided by operating activities were partially offset by:

•A $36.6 million decrease in cash related