Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 100

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 100
---
3, compared with 2022. Both measures were driven by:

• A $294.0 million increase in margins related to the impact of our rate order approved by the PSCW, effective January 1, 2023.

• A $15.7 million increase in margins during 2023, related to the expiration of a capacity purchase contract in connection with the acquisition of the Whitewater facility, effective January 1, 2023.

These increases in margins were partially offset by:

• A $69.0 million decrease in margins related to lower retail sales volumes, driven by the impact of unfavorable weather during 2023, compared with 2022. As measured by cooling degree days, 2023 was 7.2% cooler than 2022. As measured by heating degree days, 2023 was 15.1% warmer than 2022.

• A $13.2 million decrease in other revenues, primarily related to third-party use of our assets and a FERC order in January 2023 that eliminated reactive power compensation MISO was required to pay to generators, including us. The decrease in reactive power revenues is substantially offset by a decrease in transmission expense related to a deferral of these revenues as a component of our transmission escrow, as approved by the PSCW in June 2023 and discussed below.

• Lower margins of $8.0 million driven by the expiration of a wholesale contract in May 2022.

| Wisconsin Electric Power Company |     | B-14 |     | 2024 Annual Financial Statements |

Additionally, the smaller increase in gross margin (GAAP) as compared to the increase in utility margin (non-GAAP), was driven by the following items that are further described in Other Operating Expenses below:

• An $81.5 million increase in transmission expense;

• A $45.3 million increase in depreciation and amortization;

• A $33.3 million increase in other operation and maintenance expense related to the We Power leases; and

• A $23.4 million increase in other operation and maintenance related to our power plants.

These increases were partially offset by:

• A $10.3 million decrease in property and revenue taxes; and

• A $3.7 million decrease in electric and natural gas distribution expenses.

Other Operating Expenses (includes other operation and maintenance, depreciation and amortization, and property and revenue taxes)

Other operating expenses at the utility segment increased $134.4 million during 2023, compared with 2022