Company: WELPM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000107815-25-000207
Chunk: 94

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 94
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 1, 2025; 

•A $5.7 million increase in the income tax benefits associated with AFUDC-Equity, driven by continued capital investment; and

•A $1.6 million increase in the deferred tax benefits associated with the Tax Legislation. See Note 12, Income Taxes, for more information.

Partially offsetting these decreases in income tax expense was higher pre-tax income.

09/30/2025 Form 10-Q40Wisconsin Electric Power Company

LIQUIDITY AND CAPITAL RESOURCES

Overview

We expect to maintain adequate liquidity to meet our cash requirements for the operation of our business and implementation of our corporate strategy through the internal generation of cash from operations and access to the capital markets.

Cash Flows

The following table summarizes our cash flows during the nine months ended September 30:

(in millions)20252024Change in 2025 Over 2024Cash provided by (used in):Operating activities$994.6 $1,004.1 $(9.5)Investing activities(1,856.2)(1,081.8)(774.4)Financing activities867.2 327.2 540.0 

Operating Activities

Net cash provided by operating activities decreased $9.5 million during the nine months ended September 30, 2025, compared with the same period in 2024, driven by a $127.0 million decrease in cash related to higher payments for other operation and maintenance expenses. During the nine months ended September 30, 2025, our payments were higher due to increased transmission costs, electric and natural gas distribution costs, benefit expenses, as well as the timing of payments for accounts payable.

This decrease in net cash provided by operating activities was partially offset by:

•An $87.4 million increase in cash from higher overall collections from customers during the nine months ended September 30, 2025, compared with the same period in 2024. This increase was driven by the impact of our rate order approved by the PSCW, effective January 1, 2025, a higher per-unit cost of natural gas, and higher sales volumes from the impact of colder weather during the nine months ended September 30, 2025, compared with the same period in 2024.

•A $22.3 million increase in cash from lower cash paid for income taxes driven by lower taxable income and the timing of proceeds received from the sale of PTC's to third parties