Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 97

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 97
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              | -32.9 |     |              |  133.3 |
| Depreciation and amortization      |     |                        |    573.7 |     |      |    525.0 |     |      |    479.7 |     |              |  48.7 |     |              |   45.3 |
| Property and revenue taxes         |     |                        |    106.8 |     |      |    115.3 |     |      |    125.6 |     |              |  -8.5 |     |              |  -10.3 |
| Utility margin (non-GAAP)          |     |                      $ |  2,679.6 |     |    $ |  2,593.6 |     |    $ |  2,377.0 |     | $            |  86.0 |     | $            |  216.6 |

(1) Operating and maintenance expenses deemed to be directly attributable to our revenue-producing activities include plant operating and maintenance expenses related to our generating units; costs associated with the We Power generating units; and transmission, distribution and customer service expenses. These expenses are included in the above table to calculate gross margin as defined under GAAP.

#### 2024 Compared with 2023
Gross margin (GAAP) at the utility segment increased $78.7 million during 2024, compared with 2023, and utility margin (non-GAAP) increased $86.0 million during 2024, compared with 2023. Both measures were driven by:

• A $39.3 million year-over-year positive impact from collections of fuel and purchased power costs. Under the Wisconsin fuel rules, our margins are impacted by under- or over-collections of certain fuel and purchased power costs that are within a 2% price variance from the costs included in rates, and the remaining variance above or below the 2% is generally deferred for either future recovery from or refund to customers.

• A $14.9 million increase in margins driven by the impact of our limited rate case re-opener approved by the PSCW, effective January 1, 2024. This amount includes a negative impact from amortization of unprotected excess deferred tax benefits related to 2023, which was approved in a previous rate order from the PSCW and is offset in income taxes.

• A $12.7 million increase in margins