Company: WELPM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000107815-25-000204
Chunk: 48

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 of the allowance for credit losses is included below:Three Months Ended June 30(in millions)20252024Balance at April 1$37.9 $48.9 Provision for credit losses17.0 7.1 Provision for credit losses deferred for future recovery or refund(2.0)6.5 Write-offs charged against the allowance(28.8)(26.5)Recoveries of amounts previously written off8.8 6.0 Balance at June 30$32.9 $42.0 Six Months Ended June 30(in millions)20252024Balance at January 1$46.9 $44.5 Provision for credit losses29.7 15.2 Provision for credit losses deferred for future recovery or refund(8.0)20.7 Write-offs charged against the allowance(52.0)(51.5)Recoveries of amounts previously written off16.3 13.1 Balance at June 30$32.9 $42.0 There was a $14.0 million decrease in the allowance for credit losses at June 30, 2025, compared to January 1, 2025. The decrease was largely driven by customer write-offs, in addition to a decrease in past due account balances that we believe was related to a continued focus on collection efforts and the lower energy bills typically seen in the spring and summer months, enabling customers to pay down their arrears.There was a $2.5 million decrease in the allowance for credit losses at June 30, 2024, compared to January 1, 2024, largely driven by customer write-offs related to the winter moratorium months ending. After a customer is disconnected for a period of time without payment on their account, we will write off that customer balance. The winter moratorium begins on November 1 and ends on April 15. Also contributing to the decrease in the allowance for credit losses, we saw lower required reserve percentages as a result of an improvement in loss rates. We also believe that the lower energy costs that customers were seeing, which were driven by warmer than normal weather conditions and low average natural gas prices, contributed to a reduction in past due accounts receivable balances and a related decrease in the allowance for credit losses.

NOTE 5—REGULATORY ASSETS AND LIABILITIES

The following regulatory assets and liabilities were reflected on our balance sheets at June 30,