Company: WELPM
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000107815-25-000105
Chunk: 124

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 124
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 employment periods), the level of contributions made to the plans, and earnings on plan assets. Pension and OPEB costs may also be significantly affected by changes in key actuarial assumptions, including anticipated rates of return on plan assets, mortality and discount rates, and expected health care cost trends. Changes made to the plan provisions may also impact current and future pension and OPEB costs. 

Pension and OPEB plan assets are primarily made up of equity and fixed income investments. Fluctuations in actual equity and fixed income market returns, as well as changes in general interest rates, may result in increased or decreased benefit costs in future periods. Changes in benefit costs are mitigated through the requirement that we implement escrow accounting treatment for pension and OPEB costs in 2023 and 2024, as required by the December 2022 rate order issued by the PSCW. See Note 24, Regulatory Environment, for more information on our 2023 and 2024 rates.

The following table shows how a given change in certain actuarial assumptions would impact the projected benefit obligation and the reported net periodic pension cost (including amounts capitalized to our balance sheets). Each factor below reflects an evaluation of the change based on a change in that assumption only.

Actuarial Assumption(in millions, except percentages)Percentage-Point  Change in AssumptionImpact on Projected Benefit ObligationImpact on 2024Pension CostDiscount rate(0.5)$30.5 $2.1 Discount rate0.5(29.0)(1.9)Rate of return on plan assets(0.5)N/A4.7 Rate of return on plan assets0.5N/A(4.7)

2024 Form 10-K56Wisconsin Electric Power Company

The following table shows how a given change in certain actuarial assumptions would impact the accumulated OPEB obligation and the reported net periodic OPEB cost (including amounts capitalized to our balance sheets). Each factor below reflects an evaluation of the change based on a change in that assumption only.

Actuarial Assumption(in millions, except percentages)Percentage-Point  Change in AssumptionImpact on PostretirementBenefit ObligationImpact on 2024 PostretirementBenefit CostDiscount rate(0.5)$8.9 $1.4 Discount rate0.5(8.3)(1.2)Health care cost trend rate(0.5)(4.6)(1.2)