Company: WELPM
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000107815-25-000105
Chunk: 102

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 102
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45.3 million increase in depreciation and amortization, driven by assets being placed into service as we continue to execute on our capital plan.

•A $33.3 million increase in other operation and maintenance expense related to the We Power leases, as discussed in the notes under the other operation and maintenance table above.

•A $27.4 million increase in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above.

•A $23.4 million increase in other operating and maintenance related to our power plants, driven by increases to certain plant-related regulatory assets in 2022 as a result of the December 2022 Wisconsin rate order as well as operating costs associated with Whitewater, which we purchased in January 2023. These increases were partially offset by lower severance expense during 2023. 

•A $5.6 million increase in expense related to the earnings sharing mechanism we have in place, as discussed in the notes under the other operation and maintenance table above.

These increases in other operating expenses were partially offset by:

•A $21.6 million increase in pre-tax gains on the sale of land, primarily at the site of our former Pleasant Prairie power plant in 2023.

•A $19.8 million decrease in expense primarily related to lower commitments made in 2023 to fund our charitable foundation.

•A $10.3 million decrease in property and revenue taxes during 2023, compared with 2022.

•A $5.5 million decrease in expense related to environmental remediation and related studies during 2023, compared with 2022.

•A $4.0 million decrease in expenses associated with the settlement of legal claims during 2023, compared with 2022.

•A $3.9 million decrease in benefit costs, driven by lower stock-based compensation, partially offset by an increase in deferred compensation costs during 2023, compared with 2022.

•A $3.7 million decrease in electric and natural gas distribution expenses, driven by lower costs to maintain the distribution system during 2023, compared with 2022. 

Other Income, Net

Other income, net increased $19.4 million during 2023, compared with 2022, driven by higher AFUDC-Equity due to continued capital investment. 

Interest Expense

Interest expense increased $8.1 million during 2023, compared with 2022, driven by the impact of higher long-term debt balances related