Company: WELPM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000107815-25-000204
Chunk: 84

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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 for evaluating utility operations since the majority of prudently incurred fuel and purchased power costs, as well as prudently incurred natural gas costs, are passed through to customers in current rates. As a result, management uses utility margin internally when assessing the operating performance of our utility segment as this measure excludes the majority of revenue fluctuations caused by changes in these expenses. Similarly, the presentation of utility margin herein is intended to provide supplemental information for investors regarding our operating performance. 

Our utility margin may not be comparable to similar measures presented by other companies. Furthermore, this measure is not intended to replace gross margin as determined in accordance with GAAP as an indicator of operating performance. Our utility segment discussion below includes a table that provides the calculation of both gross margin as determined in accordance with GAAP and utility margin, as well as a reconciliation between the two measures.

Utility Segment Contribution to Net Income Attributed to Common Shareholder

Six Months Ended June 30(in millions)20252024B (W)Operating revenues$2,189.9 $1,940.8 $249.1 Operating expensesCost of sales (1)725.9 632.1 (93.8)Other operation and maintenance501.9 479.0 (22.9)Depreciation and amortization307.2 281.6 (25.6)Property and revenue taxes60.5 60.1 (0.4)Operating income594.4 488.0 106.4 Other income, net23.1 32.5 (9.4)Interest expense246.0 241.2 (4.8)Income before income taxes371.5 279.3 92.2 Income tax expense56.3 59.4 3.1 Preferred stock dividend requirements0.6 0.6 — Net income attributed to common shareholder$314.6 $219.3 $95.3 

(1)    Cost of sales includes fuel and purchased power and cost of natural gas sold.

The following table shows a breakdown of other operation and maintenance:

Six Months Ended June 30(in millions)20252024B (W)Operation and maintenance not included in line items below$186.2 $181.9 $(4.3)Transmission (1)188.9 178.9 (10.0)We Power (2)65.1 66.7