Company: WELPM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000107815-25-000204
Chunk: 81

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 81
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 information regarding gross margin (GAAP) and utility margin (non-GAAP).

Three Months Ended June 30(in millions)20252024B (W)Electric revenues$925.5 $835.1 $90.4 Natural gas revenues85.3 66.9 18.4 Operating revenues1,010.8 902.0 108.8 Operating expensesFuel and purchased power(286.4)(254.3)(32.1)Cost of natural gas sold(39.9)(25.6)(14.3)Other operation and maintenance (1)(196.4)(189.1)(7.3)Depreciation and amortization(156.3)(142.0)(14.3)Property and revenue taxes(29.6)(29.3)(0.3)Gross margin (GAAP)302.2 261.7 40.5 Other operation and maintenance (1)196.4 189.1 7.3 Depreciation and amortization156.3 142.0 14.3 Property and revenue taxes29.6 29.3 0.3 Utility margin (non-GAAP)$684.5 $622.1 $62.4 

(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 $40.5 million during the second quarter of 2025, compared with the same quarter in 2024, and utility margin (non-GAAP) increased $62.4 million during the second quarter of 2025, compared with the same quarter in 2024. Both measures were driven by:

•A $58.8 million increase in margins driven by the impact of our rate order approved by the PSCW, effective January 1, 2025. See Note 24, Regulatory Environment, in our 2024 Annual Report on Form 10-K, for more information on the 2025 rate order. 

•An $8.2 million increase in margins related to higher retail sales volumes driven by the impact of colder spring weather during the second quarter of 2025, compared with