Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 125

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 125
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 in Assumption |     | Impact on Postretirement 
 Benefit Obligation       |      |     |     | Impact on 2024 Postretirement 
 Benefit Cost                  |      |
|:----------------------------------|:----|---------------------------------------:|:----|:-------------------------|-----:|:----|:----|:------------------------------|-----:|
| Discount rate                     |     |                                   -0.5 |     | $                        |  8.9 |     |     | $                             |  1.4 |
| Discount rate                     |     |                                    0.5 |     |                          | -8.3 |     |     |                               | -1.2 |
| Health care cost trend rate       |     |                                   -0.5 |     |                          | -4.6 |     |     |                               | -1.2 |
| Health care cost trend rate       |     |                                    0.5 |     |                          |  5.3 |     |     |                               |  1.4 |
| Rate of return on plan assets     |     |                                   -0.5 |     |                          |      | N/A |     |                               |  0.8 |
| Rate of return on plan assets     |     |                                    0.5 |     |                          |      | N/A |     |                               | -0.8 |

The discount rates are selected based on hypothetical bond portfolios consisting of noncallable, high-quality corporate bonds across the full maturity spectrum. From the hypothetical bond portfolios, a single rate is determined that equates the market value of the bonds purchased to the discounted value of the plans' expected future benefit payments.

We establish our expected return on assets based on consideration of historical and projected asset class returns, as well as the target allocations of the benefit trust portfolios. The assumed long-term rate of return on pension plan assets was 6.50% in 2024 and 2023, and 6.75% in 2022. The actual rate of return on pension plan assets, net of fees, was 5.20%, 8.09%, and (11.36)% in 2024, 2023, and 2022, respectively.

In selecting assumed health care cost trend rates, past performance and forecasts of health care costs are considered. For more information on health care cost trend rates and a table showing future payments that we expect to make for our pension and OPEB, see Note 19