Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 98

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 98
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 related to higher retail sales volumes, driven by our electric residential and commercial and industrial customers during 2024, compared with 2023.

• A $6.9 million increase in revenues primarily related to third-party use of our assets.

• Higher margins of $5.0 million related to wholesale sales volumes.

• A $2.9 million increase in securitization revenues during 2024, compared with 2023, related to an environmental control charge collected from our retail electric distribution customers on behalf of WEPCo Environmental Trust. These revenues are offset in depreciation and amortization expenses as well as interest expense.

Additionally, the smaller increase in gross margin (GAAP) as compared with the increase in utility margin (non-GAAP), was driven by the following items that are further described in Other Operating Expenses below:

• A $48.7 million increase in depreciation and amortization expense; and

• A $3.6 million increase in electric and natural gas distribution expenses.

These increases were partially offset by:

• A $26.8 million decrease in other operating and maintenance related to our power plants;

• A $10.0 million decrease in other operation and maintenance expense related to the We Power leases; and

• An $8.5 million decrease in property and revenue taxes.

| Wisconsin Electric Power Company |     | B-13 |     | 2024 Annual Financial Statements |

Other Operating Expenses (includes other operation and maintenance, depreciation and amortization, and property and revenue taxes)

Other operating expenses at the utility segment increased $47.0 million during 2024, compared with 2023. The significant factors impacting the increase in other operating expenses were:

• A $48.7 million increase in depreciation and amortization expense, driven by assets being placed into service as we continue to execute on our capital plan.

• A $21.9 million decrease in pre-tax gains on the sales of land, primarily related to the land sale at the site of our former Pleasant Prairie power plant in 2023. See Note 3, Dispositions, for more information.

• A $16.0 million increase in benefit costs, primarily driven by higher stock-based compensation expense.

• A $4.0 million increase in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above.

• A $3.9 million increase in expenses associated with legal matters.

• A $3.6 million increase in electric and natural gas distribution expenses, primarily driven by storm