Company: WELPM
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000107815-25-000184
Chunk: 65

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 expenses are included in the above table to calculate gross margin as defined under GAAP. 

Gross margin (GAAP) at the utility segment increased $79.9 million during the first quarter of 2025, compared with the same quarter in 2024, and utility margin (non-GAAP) increased $92.9 million during the first quarter of 2025, compared with the same quarter in 2024. Both measures were driven by:

•A $65.6 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. 

•A $28.3 million increase in margins related to higher retail sales volumes driven by the impact of colder winter weather during the first quarter of 2025, compared with the same quarter in 2024. As measured by heating degree days, the first quarter of 2025 was 21.5% colder than the same quarter in 2024. 

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:

•An $11.3 million increase in depreciation and amortization expense; and

•A $5.1 million increase in transmission expense. 

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

Other operating expenses at the utility segment increased $21.9 million during the first quarter of 2025, compared with the same quarter in 2024. The significant factors impacting the increase in other operating expenses were:

•An $11.3 million increase in depreciation and amortization expense, driven by assets being placed into service as we continue to execute on our capital plan.

03/31/2025 Form 10-Q31Wisconsin Electric Power Company

•A $5.1 million increase in transmission expense as approved by the PSCW in our rate order, effective January 1, 2025. See the notes under the other operation and maintenance table above for more information. 

•A $4.2 million increase in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above.

•A $3.0 million increase in benefit costs