Company: WELPM
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000107815-25-000184
Chunk: 34

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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%93.8 %(1)Our exposure to credit losses for certain regulated utility customers is mitigated by a regulatory mechanism we have in place. Specifically, our residential tariffs include a mechanism for cost recovery or refund of uncollectible expense based on the difference between actual uncollectible write-offs and the amounts recovered in rates. As a result, at March 31, 2025, $363.4 million, or 57.8%, of our net accounts receivable and unbilled revenues balance had regulatory protections in place to mitigate the exposure to credit losses. A rollforward of the allowance for credit losses is included below:Three Months Ended March 31(in millions)20252024Balance at January 1$46.9 $44.5 Provision for credit losses12.7 8.1 Provision for credit losses deferred for future recovery or refund(6.0)14.2 Write-offs charged against the allowance(23.2)(25.0)Recoveries of amounts previously written off7.5 7.1 Balance at March 31$37.9 $48.9 There was a $9.0 million decrease in the allowance for credit losses at March 31, 2025, compared to January 1, 2025. The decrease was largely driven by customer write-offs in addition to a decrease in past due account balances.

There was a $4.4 million increase in the allowance for credit losses at March 31, 2024, compared to January 1, 2024, largely driven by an increase in past due accounts receivable balances. An increase in past due balances is a trend we generally see over the winter moratorium months, when we are not allowed to disconnect customer service as a result of non-payment. The winter moratorium begins on November 1 and ends on April 15. 

03/31/2025 Form 10-Q10Wisconsin Electric Power Company

NOTE 4—REGULATORY ASSETS AND LIABILITIES

The following regulatory assets and liabilities were reflected on our balance sheets at March 31, 2025 and December 31, 2024. For more information on our regulatory assets and liabilities, see Note 7, Regulatory Assets and Liabilities, in our 2024 Annual Report on Form 10-K.(in millions)March 31, 2025December 31, 2024Regulatory assetsWe Power finance leases$1,144.