Company: WELPM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000107815-25-000207
Chunk: 147

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 147
---
 Form 10-Q33Wisconsin Electric Power Company

Gross Margin GAAP and Utility Margin Non-GAAP

The following table summarizes our utility segment gross margin (GAAP) and reconciles gross margin (GAAP) to utility margin (non-GAAP). See Non-GAAP Financial Measures above for additional information regarding gross margin (GAAP) and utility margin (non-GAAP).

Three Months Ended September 30(in millions)20252024B (W)Electric revenues$1,148.5 $1,030.8 $117.7 Natural gas revenues53.4 48.5 4.9 Operating revenues1,201.9 1,079.3 122.6 Operating expensesFuel and purchased power(378.4)(336.6)(41.8)Cost of natural gas sold(22.8)(17.3)(5.5)Other operation and maintenance (1)(197.2)(184.4)(12.8)Depreciation and amortization(160.4)(145.5)(14.9)Property and revenue taxes(29.7)(17.0)(12.7)Gross margin (GAAP)413.4 378.5 34.9 Other operation and maintenance (1)197.2 184.4 12.8 Depreciation and amortization160.4 145.5 14.9 Property and revenue taxes29.7 17.0 12.7 Utility margin (non-GAAP)$800.7 $725.4 $75.3 

(1)    Operating and maintenance expenses deemed to be directly attributable to our revenue-producing activities include plant operating and maintenance expenses related to our generating units; costs associated with the We Power generating units; and transmission, distribution and customer service expenses. These expenses are included in the above table to calculate gross margin as defined under GAAP. 

Gross margin (GAAP) at the utility segment increased $34.9 million during the third quarter of 2025, compared with the same quarter in 2024, and utility margin (non-GAAP) increased $75.3 million during the third quarter of 2025, compared with the same quarter in 2024. Both measures were driven by:

•A $66.6 million increase in margins driven by the impact of our rate order approved by the PSCW, effective January 1, 2025.