Company: WELPM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000107815-25-000204
Chunk: 113

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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 0.9 %1.1 1.0 %Other, net0.7 0.5 %1.0 0.8 %Total income tax expense$21.0 15.0 %$23.6 21.6 %Six Months Ended June 30, 2025Six Months Ended June 30, 2024(in millions)AmountEffective Tax RateAmountEffective Tax RateStatutory federal income tax$77.9 21.0 %$58.5 21.0 %State income taxes net of federal tax benefit21.4 5.8 %16.5 5.9 %PTCs, net(20.3)(5.5)%(8.2)(3.0)%Federal excess deferred tax amortization(11.2)(3.0)%(9.2)(3.3)%Tax repairs(8.4)(2.3)%1.8 0.7 %AFUDC-Equity(7.9)(2.1)%(5.1)(1.8)%Domestic production activities deferral3.3 0.9 %2.8 1.0 %Other, net1.5 0.4 %2.3 0.8 %Total income tax expense$56.3 15.2 %$59.4 21.3 %The effective tax rates for the three and six months ended June 30, 2025, differ from the United States statutory federal income tax rate of 21%, primarily due to PTCs, the impact of the protected deferred tax benefits associated with the Tax Legislation, as discussed in more detail below, and the flow through of tax repairs in connection with our rate order approved by the PSCW, effective January 1, 2025. These items were partially offset by state income taxes.The effective tax rates for the three and six months ended June 30, 2024, do not materially differ from the United States statutory federal income tax rate of 21%. This is primarily due to the impact of the protected deferred tax benefits associated with the Tax Legislation, as discussed in more detail below, and PTCs, offset by state income taxes.The Tax Legislation required us to remeasure the deferred income taxes at our utility segment, and we began to amortize the resulting excess protected deferred income taxes beginning in 2018 in accordance with normalization