Company: WELPM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000107815-25-000204
Chunk: 88

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 88
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A $12.4 million increase in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above.

•A $10.0 million increase in transmission expense as approved by the PSCW in our Wisconsin rate order, effective January 1, 2025. See the notes under the other operation and maintenance table above for more information. 

Other Income, Net

Other income, net at the utility segment decreased $9.4 million during the six months ended June 30, 2025, compared with the same period in 2024, driven by a $22.7 million negative impact from the non-service components of our net periodic pension and OPEB costs. This decrease was partially offset by an $11.6 million positive impact from higher AFUDC-Equity due to continued capital investment.

Interest Expense

Interest expense at the utility segment increased $4.8 million during the six months ended June 30, 2025, compared with the same period in 2024, driven by the impact of our long-term debt issuances in May and September 2024. These increases were partially offset by lower average short-term debt balances, lower short-term debt interest rates, and higher AFUDC-Debt due to continued capital investment. Lower interest expense on finance lease liabilities, primarily related to the We Power leases, as finance lease liabilities decrease each year as payments are made, also partially offset the increase in interest expense.

Income Tax Expense

Income tax expense at the utility segment decreased $3.1 million during the six months ended June 30, 2025, compared with the same period in 2024, driven by an increase in PTCs and the increased benefit from the flow through of tax repairs in connection with our rate order approved by the PSCW, effective January 1, 2025. Also reducing income tax expense were increases in income tax benefits associated with AFUDC-Equity, driven by continued capital investment and increases in the protected deferred tax benefits associated with the Tax Legislation. These positive income tax impacts were partially offset by higher pre-tax income. 

LIQUIDITY AND CAPITAL RESOURCES

Overview

We expect to maintain adequate liquidity to meet our cash requirements for the operation of our business and implementation of our corporate strategy through the internal generation of cash from operations and access to the capital markets.

Cash Flows

The following table summarizes our cash flows during the six months ended June 30:

(in millions)202