Company: WELPM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000107815-25-000207
Chunk: 151

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 151
---
$3,391.8 $3,020.1 $371.7 Operating expensesCost of sales (1)1,127.1 986.0 (141.1)Other operation and maintenance773.1 720.6 (52.5)Depreciation and amortization467.6 427.1 (40.5)Property and revenue taxes90.2 77.1 (13.1)Operating income933.8 809.3 124.5 Other income, net38.6 52.0 (13.4)Interest expense367.3 364.5 (2.8)Income before income taxes605.1 496.8 108.3 Income tax expense92.5 107.2 14.7 Preferred stock dividend requirements0.9 0.9 — Net income attributed to common shareholder$511.7 $388.7 $123.0 

(1)    Cost of sales includes fuel and purchased power and cost of natural gas sold.

The following table shows a breakdown of other operation and maintenance:

Nine Months Ended September 30(in millions)20252024B (W)Operation and maintenance not included in line items below$297.2 $277.8 $(19.4)Transmission (1)283.4 268.3 (15.1)Regulatory amortizations and other pass through expenses (2)98.9 75.9 (23.0)We Power (3)97.0 99.2 2.2 Earnings sharing mechanism(3.4)(0.6)2.8 Total other operation and maintenance$773.1 $720.6 $(52.5)

(1)Represents transmission expense that we are authorized to collect in rates. The PSCW has approved escrow accounting for ATC and MISO network transmission expenses. As a result, we defer as a regulatory asset or liability, the difference between actual transmission costs and those included in rates until recovery or refund is authorized in a future rate proceeding. During the nine months ended September 30, 2025 and 2024, $303.5 million and $276.5 million, respectively, of costs were billed to us by transmission providers.

(2)Regulatory amortizations and other pass through expenses are substantially offset in margins and therefore do not have a significant