Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 92

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 92
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 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
|                                             |     | Year Ended December 31 |         |     |      |         |     |      |         |     |              |       |     |              |       |
|:--------------------------------------------|:----|-----------------------:|--------:|:----|-----:|--------:|:----|-----:|--------:|:----|:-------------|------:|:----|:-------------|------:|
|                                             |     |                        |         |     |      |         |     |      |         |     | B (W)        |       |     | B (W)        |       |
| (in millions)                               |     |                   2024 |         |     | 2023 |         |     | 2022 |         |     | 2024 vs 2023 |       |     | 2023 vs 2022 |       |
| Operating revenues                          |     |                      $ | 3,979.9 |     |    $ | 4,045.0 |     |    $ | 4,070.3 |     | $            | -65.1 |     | $            | -25.3 |
| Operating expenses                          |     |                        |         |     |      |         |     |      |         |     |              |       |     |              |       |
| Cost of sales(1)                            |     |                        | 1,300.3 |     |      | 1,451.4 |     |      | 1,693.3 |     |              | 151.1 |     |