Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 99

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 99
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 restoration.

These increases in other operating expenses were partially offset by:

• A $26.8 million decrease in other operating and maintenance related to our power plants, driven by the resolution of certain items as a result of our December 2024 Wisconsin rate order approved by the PSCW, as well as lower severance expense during 2024.

• A $10.0 million decrease in other operation and maintenance expense related to the We Power leases, as discussed in the notes under the other operation and maintenance table above.

• An $8.5 million decrease in property and revenue taxes driven by a favorable adjustment related to a sales tax audit.

• A $7.4 million decrease in expense related to the earnings sharing mechanism in place, as discussed in the notes under the other operation and maintenance table above. See Note 24, Regulatory Environment, for more information.

#### Other Income, Net
Other income, net increased $10.2 million during 2024, compared with 2023, driven by higher interest income earned on amounts due from ATC for the construction of transmission infrastructure upgrades needed for new generation projects. We are required to initially fund these expenditures, and ATC reimburses us when the new generation is placed in service. Higher AFUDC-Equity due to continued capital investment also contributed to the increase in other income. See Note 25, Other Income, Net, for more information.

#### Interest Expense
Interest expense increased $22.9 million during 2024, compared with 2023, driven by the impact of our long-term debt issuances in 2024. See Note 14, Long-Term Debt, for more information.

#### Income

#### Tax Expense
Income tax expense decreased $6.3 million during 2024, compared with 2023, driven by a $7.4 million increase in PTCs and a $5.3 million positive impact related to the amortization of the unprotected excess deferred tax benefits from the Tax Legislation. This amortization was completed in 2023. The amortization of the unprotected excess deferred tax benefits did not impact earnings as there was an offsetting impact in operating income. Partially offsetting these positive income tax impacts was an increase in pre-tax income.

#### 2023 Compared with 2022
Gross margin (GAAP) at the utility segment increased $48.3 million during 2023, compared with 2022, and utility margin (non-GAAP) increased $216.6 million during 202