Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 137

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 137
---
 stock options have been granted with an exercise price equal to the fair market value of WEC Energy Group common stock on the date of the grant. Options vest immediately upon retirement, death, or disability; however, they may not be exercised within six months of the grant date except in connection with certain termination of employment events following a change in control. Options expire no later than 10 years from the date of grant.

WEC Energy Group stock options are classified as equity awards. The fair value of each stock option was calculated using a binomial option-pricing model. The following table shows the estimated weighted-average fair value per stock option granted to our employees along with the weighted-average assumptions used in the valuation models:

| Stock options granted                                  |     | 2024        | 44,202 |     |     | 2023        | 30,495 |     |     | 2022        | 51,511 |     |
|:-------------------------------------------------------|:----|:------------|-------:|----:|:----|:------------|-------:|----:|:----|:------------|-------:|----:|
| Estimated weighted-average fair value per stock option |     | $           |  16.13 |     |     | $           |  19.58 |     |     | $           |  14.71 |     |
| Assumptions used to value the options:                 |     |             |        |     |     |             |        |     |     |             |        |     |
| Risk-free interest rate                                |     | 3.9% – 5.4% |        |     |     | 3.8% – 4.8% |        |     |     | 0.2% – 1.6% |        |     |
| Dividend yield                                         |     |             |    3.8 |   % |     |             |    3.2 |   % |     |             |    3.2 |   % |
| Expected volatility                                    |     |             |   22.0 |   % |     |             |   22.0 |   % |     |             |   21.0 |   % |
| Expected life (years)                                  |     |             |        | 8.4 |     |             |        | 8.3 |     |             |        | 8.7 |

The risk-free interest rate