Company: WELPM
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000107815-25-000184
Chunk: 93

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 93
---
Fossil fuel60.3 60.0 Natural gas in storage11.7 42.7 Total$305.0 $354.8 Substantially all materials and supplies, fossil fuel, and natural gas in storage inventories are recorded using the weighted-average cost method of accounting.

03/31/2025 Form 10-Q12Wisconsin Electric Power Company

NOTE 9—INCOME TAXES

The provision for income taxes differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to income before income taxes as a result of the following:Three Months Ended March 31, 2025Three Months Ended March 31, 2024(in millions)AmountEffective Tax RateAmountEffective Tax RateStatutory federal income tax$48.6 21.0 %$35.7 21.0 %State income taxes net of federal tax benefit14.1 6.1 %10.0 5.9 %PTCs, net(13.0)(5.6)%(5.1)(3.0)%Federal excess deferred tax amortization(7.0)(3.0)%(5.7)(3.4)%Tax repairs(5.2)(2.2)%1.1 0.7 %AFUDC-Equity(5.0)(2.2)%(3.2)(1.9)%Domestic production activities deferral2.0 0.8 %1.7 1.0 %Other, net0.8 0.3 %1.3 0.7 %Total income tax expense$35.3 15.2 %$35.8 21.0 %The effective tax rate for the three months ended March 31, 2025, differs from the United States statutory federal income tax rate of 21%, primarily due to PTCs, the impact of the protected deferred tax benefits associated with the Tax Legislation, as discussed in more detail below, and the flow through of tax repairs in connection with our rate order approved by the PSCW, effective January 1, 2025. These items were partially offset by state income taxes.The effective tax rate for the three months ended March 31, 2024, does not materially differ from the United States statutory federal income tax rate of 21%. This is primarily due to the impact of the protected deferred tax benefits associated with