Company: WELPM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000107815-25-000207
Chunk: 149

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 149
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 to our power plants, partially driven by renewable generation facilities placed in service during 2025 and the fourth quarter of 2024.

Other Income, Net

Other income, net at the utility segment decreased $4.0 million during the third quarter of 2025, compared with the same quarter in 2024, driven by a $10.9 million negative impact from the non-service components of our net periodic pension and OPEB costs. In accordance with our December 2024 PSCW rate order, in 2025, we began amortizing our pension and OPEB costs that were previously deferred under escrow accounting. During the third quarter of 2025, we amortized $5.2 million of the previously deferred non-service costs as we are now collecting these costs in rates. See Note 16, Employee Benefits, for more information on our benefit costs. This decrease in other income, net was partially offset by a $7.1 million positive impact from higher AFUDC-Equity due to continued capital investment.

Interest Expense

Interest expense at the utility segment decreased $2.0 million during the third quarter of 2025, compared with the same quarter in 2024, driven by higher AFUDC-Debt due to continued capital investment and 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. These decreases were partially offset by the impact of our long-term debt issuance in September 2024. 

Income Tax Expense

Income tax expense at the utility segment decreased $11.6 million during the third quarter of 2025, compared with the same quarter in 2024. This decrease was driven by:

•A $6.2 million increase in the benefit from the flow through of tax repairs in connection with our rate order approved by the PSCW, effective January 1, 2025;

•A $4.7 million increase in PTCs; and

•A $2.9 million increase in income tax benefits associated with AFUDC-Equity, driven by continued capital investment. 

Partially offsetting these decreases in income tax expense was higher pre-tax income.

09/30/2025 Form 10-Q35Wisconsin Electric Power Company

NINE MONTHS ENDED SEPTEMBER 30, 2025

Earnings

Our earnings for the nine months ended September 30, 2025 were $511.7 million, compared to $