Company: WELPM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000107815-25-000204
Chunk: 117

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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 underlying contracts. Derivative assets and liabilities are included in the other current and other long-term line items on our balance sheets. The following table shows our derivative assets and derivative liabilities. None of the derivatives shown below are designated as hedging instruments. June 30, 2025December 31, 2024(in millions)DerivativeAssetsDerivativeLiabilitiesDerivativeAssetsDerivativeLiabilitiesCurrentNatural gas contracts$5.6 $3.9 $10.0 $1.1 FTRs9.9 — 2.9 — Total current15.5 3.9 12.9 1.1 Long-termNatural gas contracts0.2 0.1 0.5 — Total$15.7 $4.0 $13.4 $1.1 Realized gains and losses on derivatives are primarily recorded in cost of sales upon settlement; however, they may be subsequently deferred for future rate recovery or refund as the gains and losses are included in our fuel and natural gas cost recovery mechanisms. Our estimated notional sales volumes and realized gains and losses were as follows:Three Months Ended June 30, 2025Three Months Ended June 30, 2024(in millions)VolumesGainsVolumesGains (Losses)Natural gas contracts19.1 Dth$4.6 16.3 Dth$(9.4)FTRs4.6 MWh1.3 5.1 MWh1.4 Total$5.9 $(8.0)Six Months Ended June 30, 2025Six Months Ended June 30, 2024(in millions)VolumesGainsVolumesGains (Losses)Natural gas contracts37.3 Dth$6.1 39.2 Dth$(26.4)FTRs9.3 MWh2.3 10.0 MWh3.3 Total $8.4  $(23.1)On our balance sheets, the amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral are not offset against the fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. At June 30, 2025 and December 31, 2024, we had posted cash collateral of $5.8 million and $4.9 million, respectively. These amounts were recorded on our balance sheets