Company: WELPM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000107815-25-000204
Chunk: 53

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 amortization(11.2)(3.0)%(9.2)(3.3)%Tax repairs(8.4)(2.3)%1.8 0.7 %AFUDC-Equity(7.9)(2.1)%(5.1)(1.8)%Domestic production activities deferral3.3 0.9 %2.8 1.0 %Other, net1.5 0.4 %2.3 0.8 %Total income tax expense$56.3 15.2 %$59.4 21.3 %The effective tax rates for the three and six months ended June 30, 2025, differ from the United States statutory federal income tax rate of 21%, primarily due to PTCs, the impact of the protected deferred tax benefits associated with the Tax Legislation, as discussed in more detail below, and the flow through of tax repairs in connection with our rate order approved by the PSCW, effective January 1, 2025. These items were partially offset by state income taxes.The effective tax rates for the three and six months ended June 30, 2024, do not materially differ from the United States statutory federal income tax rate of 21%. This is primarily due to the impact of the protected deferred tax benefits associated with the Tax Legislation, as discussed in more detail below, and PTCs, offset by state income taxes.The Tax Legislation required us to remeasure the deferred income taxes at our utility segment, and we began to amortize the resulting excess protected deferred income taxes beginning in 2018 in accordance with normalization requirements (see federal excess deferred tax amortization lines above). 

06/30/2025 Form 10-Q14Wisconsin Electric Power Company

The IRA contains a tax credit transferability provision that allows us to sell PTCs produced after December 31, 2022, to third parties. Under this transferability provision, WEC Energy Group entered into agreements in October 2024 and April 2025 to sell the majority of the PTCs we generate in 2025 and 2026, respectively, to third parties. In May 2025, WEC Energy Group entered into an agreement to sell the majority of our remaining unsold PTCs we generated in 2024 to a third party. We elect to account for tax credits transferred under the scope of Accounting Standards Codification 740. We include